Industrial Logistics Properties Trust Fair Value Disclosure
| Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||||
| Active Markets for | Observable | Unobservable | ||||||||||||||||||||||||
| Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||
| Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
As of December 31, 2025 | ||||||||||||||||||||||||||
Recurring: | ||||||||||||||||||||||||||
| Investment in unconsolidated joint venture | $ | 132,753 | $ | — | $ | — | $ | 132,753 | ||||||||||||||||||
| Interest rate cap | $ | 1,629 | $ | — | $ | 1,629 | $ | — | ||||||||||||||||||
As of December 31, 2024 | ||||||||||||||||||||||||||
Recurring: | ||||||||||||||||||||||||||
| Investment in unconsolidated joint venture | $ | 116,732 | $ | — | $ | — | $ | 116,732 | ||||||||||||||||||
| Interest rate caps | $ | 16,916 | $ | — | $ | 16,916 | $ | — | ||||||||||||||||||
| Exit | ||||||||||||||||||||||||||
| Valuation | Discount | Capitalization | Holding | |||||||||||||||||||||||
| Technique | Rates | Rates | Periods | |||||||||||||||||||||||
As of December 31, 2025 | ||||||||||||||||||||||||||
| Investment in unconsolidated joint venture | Discounted cash flow | 6.50% - 8.00% | 5.75% - 6.25% | 10 - 11 years | ||||||||||||||||||||||
As of December 31, 2024 | ||||||||||||||||||||||||||
| Investment in unconsolidated joint venture | Discounted cash flow | 6.25% - 8.25% | 5.25% - 6.50% | 10 - 12 years | ||||||||||||||||||||||
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Beginning balance | $ | 116,732 | $ | 115,360 | |||||||
| Equity in earnings of unconsolidated joint venture | 19,981 | 5,332 | |||||||||
| Distributions from unconsolidated joint venture | (3,960) | (3,960) | |||||||||
| Ending balance | $ | 132,753 | $ | 116,732 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 18, 2021 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.