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Industrial Logistics tops industrial REIT financial performance rankings for Q2

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Industrial Logistics tops industrial REIT financial performance rankings for Q2

Editor's note: This article is part of a three-part series ranking the financial performance of apartment, industrial and office real estate investment trusts during the second quarter. Click here to access S&P Global Market Intelligence's ranking of U.S. apartment REITs and here to open the U.S. office REIT rankings. To view these charts and calculations in Excel format, click here.

Industrial Logistics Properties Trust had the strongest financial performance among industrial REITs in the second quarter, according to an S&P Global Market Intelligence analysis.

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The company produced strong year-over-year FFO-per-share growth of 17.9% and had the highest occupancy rate of the industrial REIT peer group, at 99.3%. The REIT's annualized NOI for the second quarter came to 9.7% of its average gross property value, the highest of the group.

Industry heavyweight Prologis Inc., whose market cap exceeds that of the next-largest REIT, Duke Realty Corp., by a factor of four, saw FFO grow 8.5% in the second quarter and same-store NOI growth of 4.6%.

Terreno Realty Corp. took the second spot, followed by Rexford Industrial Realty Inc. The REITs grew same-store NOI by 12.7% and 11.1%, respectively, much higher than the industrial REIT average of 3.3%.

On the other hand, Monmouth Real Estate Investment Corp. finished at the bottom of the rankings, reporting an 8.7% decline year over year in FFO per share and a 0.2% drop in same-store NOI for the quarter. In its recent earnings release, Monmouth President and CEO Michael Landy attributed the decline to a 70-basis-point reduction in the REIT's overall occupancy rate, as well as a timing impact stemming from its equity issuance throughout the past year.

S&P Global Market Intelligence also calculated Monmouth's leverage ratios higher than the industrial REIT average for the quarter, with net debt to second-quarter EBITDA at 9.4x. S&P Global Market Intelligence's EBITDA calculation, however, does not adjust for unrealized losses from held securities. Excluding these losses, Monmouth's net debt to EBITDA was 6.2x.

Cannabis-oriented Innovative Industrial Properties Inc. and temperature-controlled warehouse landlord Americold Realty Trust were both excluded from the analysis, as their niche business models are not directly comparable to the rest of the peer group.

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