RevealFrozen verdict kept intactHistorical teaching case
Halfmoon UPS audit: the financing after the frozen verdictThe original analysis, frozen at , beside two ILPT documents published later
Verdict dated . Not revised.
The baseline was built only from M1, published 2021-11-12, and M2, published 2021-11-05. The later documents are R1, published 2022-07-14, and R2, published 2023-02-14. Neither later document was available on the decision date; they are read here only to see what happened next. Historical teaching case. Not investment or legal advice. No buy or sell view.
Frozen verdict, dated
Known schedule, not cash. For the eleven months the filing fixes, scheduled billable base rent totals $272,333.33: $85,000 across the seven exact-filed months (five free months at $0, then April and May at $42,500 each) plus $187,333.33 for July to October at the approximately $562,000 post-expansion annual rate. No invoice or receipt is in the packet.
June is unresolved. The parking step took effect on June 4, 2021, inside the month, and the filing does not say how June was invoiced. Conditional range $42,500 to $46,833.33, kept outside the subtotal.
Summary, not instrument. Every Halfmoon term here is Monmouth's description in its Form 10-K. The signed lease, the parking amendment, the rent roll and bank records are absent.
Parking step. Approximately $52,000 of added annual rent on approximately $835,000 of capital cost: 6.23% gross rent to cost, not an NOI yield.
Financing is capacity, not a draw. ILPT's $4.0B bridge commitment is a ceiling. The funded balance at the presentation date is not disclosed and the final rate is not disclosed. Hypothetically, each +100 bp move changes annual interest by $10,000 per $1M of assumed drawn floating-rate principal.
Limits. The packet cannot prove Halfmoon NOI or an acquisition value. The excerpts are evidence, not a broker price.
Verbatim from the conclusion of audit.html, which this page does not change. reveal.json records fingerprints of audit.json and audit.html so check.py can confirm both are untouched. Inputs: M1, published 2021-11-12 and M2, published 2021-11-05.
Original analysis versus later observation
Left: what the frozen packet supported. Right: what the later documents report, each dated by its own publication. The right column never feeds back into the left.
Original analysis,
Later observation
Bridge financing size
Original,
ILPT had secured commitments for a $4.0B bridge loan facility. That is capacity, a ceiling, not a draw. Amount drawn: not disclosed.
At the Merger closing ILPT entered into an interest only Bridge Loan of $1,385,158,000, secured by 109 properties. That is the later disclosed original principal. R2 does not tie it to the $4.0B commitment, so no gap between the two figures is computed. Drawn-balance history: not in this packet.
Scheduled to mature in . Repaid in full on with cash on hand and proceeds from the ILPT Floating Rate Loan, at least 132 days before , the first day of the stated maturity month.
A $22,231,000 loss on early extinguishment of debt, recorded in the year ended , wrote off unamortized costs related to the Bridge Loan and a related interest rate cap. It is a write-off, not interest paid. Actual interest total: not in this packet.
Joint venture equity of approximately $430M to $1.3B, new mortgage debt, about $409M of assumed MNR mortgage debt and property sales of up to $1.6B. Overlapping and contingent, never netted.
ILPT said completing that plan, through more joint venture equity sales, property sales and other refinancing, was taking longer than originally expected.
Regular quarterly distribution for the second quarter reduced to $0.01 per share. Rate before the reduction: not in this packet, so the size of the cut is not computed.
Neither later excerpt mentions Halfmoon or UPS. R1 gives financing and market reasons and does not establish that the Halfmoon tenant missed rent. Halfmoon rent collected after the verdict: not in this packet.
R1, published 2022-07-14; R2, published 2023-02-14
Hypothetical rate shock on the later principal
The November rule: a hypothetical +100 bp move changes annual interest by $10,000 for each $1M of assumed drawn, floating principal held for a full year. Applying the same arithmetic to the later disclosed Bridge Loan principal of $1,385,158,000 gives +$13,851,580 per full year for +100 bp.
This is a hypothetical rate shock, not the interest paid. It assumes the principal stayed constant for a full year, fully floating and unhedged. Merger closing date: not in this packet. R2 mentions a related interest rate cap, and the loan was repaid early. SOFR path: not in this packet. Actual interest total: not in this packet.
Change in annual interest under hypothetical moves
Move
Per $1M, November rule
On $1,385,158,000
-100 bp
-$10,000
-$13,851,580
-50 bp
-$5,000
-$6,925,790
-25 bp
-$2,500
-$3,462,895
+25 bp
+$2,500
+$3,462,895
+50 bp
+$5,000
+$6,925,790
+100 bp
+$10,000
+$13,851,580
+150 bp
+$15,000
+$20,777,370
+200 bp
+$20,000
+$27,703,160
Rule: M2, published 2021-11-05 via audit.json. Principal: R2, published 2023-02-14.
Dated financing events
ILPT presentation: committed bridge loan facility, a capacity ceiling, plus a long term plan of joint venture equity, mortgage debt and property sales. Commitment: $4.0B, capacity only. M2, published 2021-11-05
Monmouth Form 10-K filed. The frozen packet closes and the verdict is dated this month. M1, published 2021-11-12
Verdict frozen in . Everything below was published later.
Date not in this packet
Merger closes and ILPT enters into the Bridge Loan. The closing date is not in this packet. Bridge Loan principal: $1,385,158,000. R2, published 2023-02-14
ILPT reduces the second quarter distribution and cites interest rates, market conditions and a slower long term financing plan. New rate: $0.01 per share. R1, published 2022-07-14
Bridge Loan repaid in full with cash on hand and Floating Rate Loan proceeds. R2, published 2023-02-14
Fiscal year ends. The loss on early extinguishment was recorded during this year. Loss: $22,231,000. R2, published 2023-02-14
Stated maturity month of the Bridge Loan, already repaid. Day not stated. Weighted average premium over SOFR while outstanding: 2.92%. R2, published 2023-02-14
ILPT annual report filed with the Bridge Loan facts. R2, published 2023-02-14
Comparison graphic: capacity then, principal later
Both bars share one dollar axis. The dashed outline is the bridge commitment ILPT reported on 2021-11-05: a ceiling, not an amount drawn. The solid bar is the Bridge Loan original principal reported in R2, published 2023-02-14. The documents do not link the two, so the space between them is not unused borrowing and is not computed. Select a bar to open its dated quote.
What ILPT reported versus what the documents do not prove
Causes reported by ILPT
Unanticipated increases in interest rates. R1, published 2022-07-14
Deterioration in real estate market conditions. R1, published 2022-07-14
The long term financing plan for the Monmouth acquisition, including more joint venture equity sales, property sales and refinancing, taking longer than originally expected. R1, published 2022-07-14
The loss on early extinguishment wrote off unamortized costs related to the Bridge Loan and a related interest rate cap. R2, published 2023-02-14
Since then, there have been unanticipated increases in interest rates and deterioration in real estate market conditions. As a result, it is taking longer than originally expected to complete ILPT's long term financing plan for the Monmouth acquisition, which includes the sale of additional equity interests in its consolidated joint venture, property sales and other refinancing activities.
Not shown: a tenant default or missed rent at Halfmoon or at any other warehouse. The distribution notice gives financing and market reasons and names no tenant.
Not shown: how much of the November bridge commitment was drawn. The commitment was capacity. R2 does not say the later Bridge Loan principal was a draw against it, so the gap between the two is not computed.
Not shown: the SOFR path, the all-in rate, accrual dates, cap settlements or the interest actually paid on the Bridge Loan. R2 gives the spread and the benchmark name only.
Not shown: the Merger closing date, so the time the Bridge Loan was outstanding is not known. R2 ties the loan to the closing without dating it in this excerpt.
Not shown: the distribution rate before the reduction, so the size of the cut is not known. R1 gives only the new rate.
Not shown: Halfmoon NOI, value or rent collected after the verdict. Neither later excerpt mentions Halfmoon or UPS.
Not shown: that the November verdict misread its own evidence. The later facts answer questions the packet left open. They were not available on the decision date.
Inspect a dated quote
The inspector changes only the panel below. The frozen verdict above is static text and no control on this page edits it.
Bridge Loan principal and collateral, R2, published
In connection with the closing of the Merger, we entered into a [$1,385,158,000] interest only bridge loan facility secured by 109 of our properties
Bridge commitment, capacity, M2, published 2021-11-05, , available on the decision date
To ensure ILPT can finance the closing of the transaction, ILPT has secured commitments from lenders for a $4.0B bridge loan facility.
Long term financing plan, M2, published 2021-11-05, , available on the decision date
ILPT plans to finance the transaction by entering into a joint venture with one or more institutional investors for equity investments of between approximately $430M and $1.3B.
Distribution reduced, R1, published 2022-07-14, , published after the verdict
ILPT's Board of Trustees has reduced ILPT's regular quarterly cash distribution on its common shares for the second quarter to $0.01 per share.
Causes ILPT reported, R1, published 2022-07-14, , published after the verdict
Since then, there have been unanticipated increases in interest rates and deterioration in real estate market conditions. As a result, it is taking longer than originally expected to complete ILPT's long term financing plan for the Monmouth acquisition, which includes the sale of additional equity interests in its consolidated joint venture, property sales and other refinancing activities.
Bridge Loan principal and collateral, R2, published 2023-02-14, , published after the verdict
In connection with the closing of the Merger, we entered into a [$1,385,158,000] interest only bridge loan facility secured by 109 of our properties
Stated maturity, R2, published 2023-02-14, , published after the verdict
The Bridge Loan was scheduled to mature in February 2023
Rate terms, R2, published 2023-02-14, , published after the verdict
required that interest be paid at an annual rate of secured overnight financing rate, or SOFR, plus a weighted average premium of 2.92%.
Repayment, R2, published 2023-02-14, , published after the verdict
We repaid the Bridge Loan in full on September 22, 2022 with cash on hand and proceeds from the ILPT Floating Rate Loan.
Early extinguishment loss, R2, published 2023-02-14, , published after the verdict
During the year ended December 31, 2022, we recorded a [$22,231,000] loss on early extinguishment of debt to write off unamortized costs related to the Bridge Loan and related interest rate cap.
Bracketed dollar figures in R2 quotes are full-dollar restatements printed in the packet from the filing's rounded amounts.
Both source ledgers
SOURCES.csv, the frozen packet, and REVEAL_SOURCES.csv, the later documents
ID
Document
Published
As of
Section
Original
On the decision date
M1
Monmouth FY2021 Form 10-K
2021-11-12
2021-09-30
Item 2 pp.21-24 property schedules footnote 9 and Completed Expansions