During the quarter ended March 31, 2019, ILPT entered renewal leases and completed rent resets for approximately 754,000 square feet, which resulted in weighted average (by square feet) rental rates that were approximately 22.9% higher than prior rental rates for the same space, with a weighted average (by square feet) lease term of 9.4 years for renewal leases. Commitments for leasing capital and concessions for renewal leases entered during the quarter ended March 31, 2019 totaled approximately $88,000, or approximately $0.03 per square foot per lease year.

As of March 31, 2019, 99.4% of ILPT's total rentable square feet was leased, compared to 99.3% as of December 31, 2018 and 99.9% as of March 31, 2018. Occupancy for properties owned continuously since January 1, 2018, or on a same property basis, decreased to 99.2% at March 31, 2019 from 99.9% at March 31, 2018. Same property cash basis net operating income, or Cash Basis NOI, increased 4.6% for the quarter ended March 31, 2019 compared to the quarter ended March 31, 2018, primarily as a result of contractual rent increases and leasing activity at certain properties since January 1, 2018.

As previously disclosed, in February 2019, ILPT entered an agreement to acquire a portfolio of eight industrial properties located in the Indianapolis and Cincinnati market areas with an aggregate of approximately 4.2 million rentable square feet for a purchase price of $280.0 million, excluding acquisition related costs. At the time ILPT entered this agreement, ILPT completed the acquisition of seven of the eight properties with an aggregate of approximately 3.7 million rentable square feet for a purchase price of $249.5 million, excluding acquisition related costs. These properties were 100% leased to eight tenants and had a remaining weighted average (by rental revenues) lease term of 3.8 years as of the date of acquisition. In April 2019, ILPT completed the acquisition of the remaining property with approximately 494,000 rentable square feet for a purchase price of $30.5 million, excluding acquisition related costs. This property was 100% leased to two tenants and had a remaining weighted average (by rental revenues) lease term of 9.2 years as of the date of acquisition.

Also as previously disclosed, in February 2019, ILPT entered an agreement to acquire a portfolio of 18 industrial properties located in 12 states with an aggregate of approximately 8.7 million rentable square feet. ILPT completed the acquisition of these properties in April 2019 for a purchase price of $624.7 million, including the assumption of $57.0 million of mortgage debt and excluding acquisition related costs. These properties were 100% leased to 13 tenants and had a remaining weighted average (by rental revenues) lease term of 9.2 years as of the date of acquisition.

As previously disclosed, on January 29, 2019, ILPT obtained a $650.0 million mortgage loan secured by 186 of its properties that were appraised at a value exceeding $1.4 billion. These properties contain approximately 9.6 million rentable square feet and are located on the island of Oahu, Hawaii. The non-amortizing loan matures on February 7, 2029 and requires monthly interest payments at a fixed rate of 4.31% per annum. ILPT used the proceeds from this loan to reduce outstanding borrowings under its $750.0 million unsecured revolving credit facility and to fund acquisitions.

The conference call telephone number is (877) 270-2148. Participants calling from outside the United States and Canada should dial (412) 902-6510. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. on Monday, May 6, 2019. To access the replay, dial (412) 317-0088. The replay pass code is 10129988.

A live audio webcast of the conference call will also be available in a listen-only mode on ILPT's website, at www.ilptreit.com. Participants wanting to access the webcast should visit ILPT's website about five minutes before the call. The archived webcast will be available for replay on ILPT's website following the call for about one week. The transcription, recording and retransmission in any way of ILPT's first quarter conference call are strictly prohibited without the prior written consent of ILPT.

A copy of ILPT's First Quarter 2019 Supplemental Operating and Financial Data is available for download at ILPT's website, which is located at www.ilptreit.com. ILPT's website is not incorporated as part of this press release.

ILPT presents certain "non-GAAP financial measures" within the meaning of applicable rules of the Securities and Exchange Commission, or SEC, including FFO, Normalized FFO, NOI and Cash Basis NOI. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income as indicators of ILPT's operating performance or as measures of ILPT's liquidity. These measures should be considered in conjunction with net income as presented in ILPT's condensed consolidated statements of income. ILPT considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income. ILPT believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of ILPT's operating performance between periods and with other REITs and, in the case of NOI and Cash Basis NOI, reflecting only those income and expense items that are generated and incurred at the property level may help both investors and management to understand the operations at ILPT's properties.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever ILPT uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, ILPT is making forward-looking statements. These forward-looking statements are based upon ILPT's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ILPT's forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ILPT's control. For example:

• Mr. Murray's statement in this press release that ILPT entered lease renewals and completed rent resets that resulted in higher average rental rates may imply that ILPT's leasing activity will achieve similar or better results in the future. However, ILPT's ability to lease its properties depends in large part on market conditions in areas where ILPT's properties are located when such properties become available for lease or when leases are negotiated or rents are reset. Leasing market conditions often change and are generally beyond ILPT's control. In the future, ILPT may experience increasing vacancies or lower rents at its properties and its operating results may decline,
• Mr. Murray's statement regarding ILPT's Hawaii properties having underappreciated value may imply that those properties and other properties of ILPT will maintain and increase in value and that the remaining unmortgaged value of ILPT's properties may be a future financing source for ILPT. However, ILPT's properties could decline in value if ILPT does not successfully operate them, if ILPT incurs liabilities with respect to the properties, if regulatory requirements that may apply to the properties restrict their value or due to market conditions or other reasons. In addition, ILPT may not be able to utilize the unmortgaged value of ILPT's properties for future financings, particularly since certain of ILPT's Hawaii properties are already encumbered with a mortgage loan, and
• Mr. Murray's statement in this press release that ILPT's leasing activity and its recent acquisitions of well-located, high-quality properties leased to high credit quality tenants may increase its future cash flows and enhance ILPT's ability to increase its distributions to shareholders in the near term. This statement may imply that ILPT will increase its distributions to shareholders in the near term. However, any distributions ILPT may make are subject to being declared by ILPT's Board of Trustees in its sole discretion. ILPT's Board of Trustees considers many factors when determining whether to declare distributions, including ILPT's historical and projected income, Normalized FFO, the then current and expected needs of availability of cash to pay ILPT's obligations and fund ILPT's investments, distributions which may be required to be paid by ILPT to qualify for taxation as a REIT and other factors deemed relevant by ILPT's Board of Trustees in its discretion. Further, ILPT may not realize the increase in future cash flows from its leasing activity and recent acquisitions that it currently expects. Accordingly, for these and other reasons, ILPT may not increase its distributions in the near term or at all and its distributions to shareholders may be decreased. There can be no assurance as to the rate at which ILPT will pay future distributions to its shareholders.

The information contained in ILPT's filings with the SEC, including under "Risk Factors" in ILPT's periodic reports, or incorporated therein, identifies other important factors that could cause ILPT's actual results to differ materially from those stated in or implied by ILPT's forward-looking statements. ILPT's filings with the SEC are available on the SEC's website at www.sec.gov.