Industrial Logistics Properties Trust (Industrial Logistics Properties Trust) ROC % : 2.60% (As of Mar. 2024)

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What is Industrial Logistics Properties Trust ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Industrial Logistics Properties Trust's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 2.60%.

As of today (2024-05-15), Industrial Logistics Properties Trust's WACC % is 7.43%. Industrial Logistics Properties Trust's ROC % is 2.45% (calculated using TTM income statement data). Industrial Logistics Properties Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Industrial Logistics Properties Trust ROC % Historical Data

The historical data trend for Industrial Logistics Properties Trust's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Industrial Logistics Properties Trust ROC % Chart

Industrial Logistics Properties Trust Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.46

4.58

5.12

3.00

2.37

Industrial Logistics Properties Trust Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															2.25	2.28	2.46	2.44	2.60

Industrial Logistics Properties Trust ROC % Calculation

Industrial Logistics Properties Trust's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	129.201 * ( 1 - -0.07% )	/	( (5549.534	+	5373.913)	/ 2 )
=	129.2914407	/	5461.7235
=	2.37 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5676.166	-	78.371	-	( 48.261	-	max(0, 78.371	-	247.791	+	48.261	))
=	5549.534

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5563.675	-	77.421	-	( 112.341	-	max(0, 77.421	-	364.893	+	112.341	))
=	5373.913

Industrial Logistics Properties Trust's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	139.144 * ( 1 - -0.09% )	/	( (5373.913	+	5319.713)	/ 2 )
=	139.2692296	/	5346.813
=	2.60 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5563.675	-	77.421	-	( 112.341	-	max(0, 77.421	-	364.893	+	112.341	))
=	5373.913

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5527.569	-	79.462	-	( 128.394	-	max(0, 79.462	-	352.647	+	128.394	))
=	5319.713

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Industrial Logistics Properties Trust (NAS:ILPT) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Industrial Logistics Properties Trust's WACC % is 7.43%. Industrial Logistics Properties Trust's ROC % is 2.45% (calculated using TTM income statement data). Industrial Logistics Properties Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Industrial Logistics Properties Trust ROC % Related Terms

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Industrial Logistics Properties Trust (Industrial Logistics Properties Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Industrial Logistics Properties Trust (NAS:ILPT) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Two Newton Place, 255 Washington Street, Suite 300, Newton, MA, USA, 02458-1634

Website

https://www.ilptreit.com

Industrial Logistics Properties Trust is a real estate investment trust. It owns and leases industrial and logistics properties throughout the United States. The company's investment portfolio includes industrial lands in Hawaii and industrial and logistics properties in other states. Rental revenue is earned from Hawaii Properties and Mainland Properties.

Executives

Tiffany R Sy	officer: CFO and Treasurer	TWO NEWTON PLACE, 225 WASHINGTON STREET SUITE 300, NEWTON MA 02458
Kevin C Phelan	director	93 LOWELL ROAD, WELLESLEY MA 02481
Joseph Morea	director	C/O REIT MANAGEMENT & RESEARCH LLC, TWO NEWTON PLACE, 255 WASHINGTON STREET, NEWTON MA 02458
Lisa Harris Jones	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Brian E. Donley	officer: CFO and Treasurer	C/O THE RMR GROUP LLC,, TWO NEWTON PL., 255 WASHINGTON ST., NEWTON MA 02458
Matthew P. Jordan	director	C/O THE RMR GROUP INC., TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
June S. Youngs	director	C/O THE RMR GROUP LLC, TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Yael Duffy	officer: Vice President	C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Laura A. Wilkin	director	CO INDUSTRIAL LOGISTICS PROPERTIES TRUST, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
John G. Murray	director, officer: President and CEO	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Barry M. Portnoy	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Adam D. Portnoy	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
John C. Popeo	officer: President and COO	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Bruce M. Gans	director	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Select Income Reit	10 percent owner	C/O THE RMR GROUP, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458