Industrial Logistics Properties Trust (ILPT) Moves 16.4% Higher: Will This Strength Last?

Industrial Logistics Properties Trust (ILPT) shares ended the last trading session 16.4% higher at $7.33. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.3% gain over the past four weeks.

The increased investor optimism in the stock can be attributed to the company’s recent announcement of securing $1.62 billion in five-year, interest-only mortgage financing at a 5.71% fixed rate. This financing is for its joint venture, Mountain Industrial REIT.

This company is expected to post quarterly funds from operations (FFO) of $0.31 per share in its upcoming report, which represents a year-over-year change of +55%. Revenues are expected to be $114.25 million, up 2.1% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

For Industrial Logistics Properties Trust, the consensus estimate for FFO per share for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on ILPT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Industrial Logistics Properties Trust is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, DiamondRock Hospitality DRH, finished the last trading session 2.1% lower at $10.09. DRH has returned 9.2% over the past month.

For DiamondRock Hospitality, the consensus estimate for FFO per share for the upcoming report has changed +4.3% over the past month to $0.18. This represents a change of -5.3% from what the company reported a year ago. DiamondRock Hospitality currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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