WEST PALM BEACH, Fla., Oct. 06, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust (NYSE: LXP) (“LXP”), a real estate investment trust (REIT) focused on Class A warehouse and distribution real estate investments, today announced it will release its third quarter 2025 financial results the morning of Thursday, October 30, 2025. LXP will host its conference call and webcast that same day at 8:30 a.m., Eastern Time to discuss these results. Participants may access the call and webcast by the following: Conference C ...

WEST PALM BEACH, Fla., Oct. 01, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust (NYSE: LXP) (the “Company”), a real estate investment trust (REIT) focused on Class A warehouse and distribution real estate investments, announced today that it has commenced a tender offer (the “Offer”) to purchase for cash an amount of its 6.750% Notes due 2028 (the “Notes”) with an aggregate purchase price up to $150,000,000 (excluding accrued and unpaid interest, which also will be paid to, but excluding, the applicable settl ...

WEST PALM BEACH, Fla., Oct. 01, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE:LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced the sale of two vacant development projects, totaling 2,138,640 square feet, located in Ocala, Florida and Indianapolis, Indiana for an aggregate gross price of $175 million. The closing of the sale occurred on September 30, 2025. The gross sale price represents a 20% premium, or $29 million, to ...

LXP Industrial Trust (NYSE:LXP) is one of the 13 Best Warehouse and Self-Storage Stocks to Buy Right Now. LXP Industrial Trust (LXP) Declares a Quarterly Dividend of $0.135 per Common Share LXP Industrial Trust (NYSE:LXP) declared a quarterly dividend of $0.135 per common share, maintaining its stable payout while expanding its portfolio. In Q2 2025, LXP Industrial Trust (NYSE:LXP) started off with the redevelopment of a 350,000-square-foot warehouse facility. Furthermore, the company sold another wareh ...

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[Company Overview](index=1&type=section&id=Company%20Overview) LXP Industrial Trust is a REIT specializing in Class A warehouse and distribution properties in Sunbelt and lower Midwest markets, pursuing growth through various transactions [About LXP Industrial Trust](index=5&type=section&id=About%20LXP%20Industrial%20Trust) LXP Industrial Trust is a publicly traded REIT focused on acquiring, developing, and managing Class A warehouse and distribution properties in strategic U.S. regions - LXP Industrial Trust is a REIT focused on Class A warehouse and distribution investments in the Sunbelt and lower Midwest[20](index=20&type=chunk) - LXP's growth strategy includes acquisitions, build-to-suit transactions, sale-leaseback transactions, and development projects[20](index=20&type=chunk) [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) LXP achieved solid FFO, strong same-store NOI growth, a major development lease, and reduced leverage through strategic asset and debt transactions [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO T. Wilson Eglin reported solid FFO, strong same-store NOI growth, a significant development lease, and successful leverage reduction efforts - LXP delivered **solid funds from operations (FFO)** and **strong same-store NOI growth** in Q2 2025[4](index=4&type=chunk) - A significant milestone was reached with the lease of a **1.1 million square foot development facility** in Greenville/Spartanburg, projected to add approximately **$3.7 million to FFO in 2025**[4](index=4&type=chunk) - LXP sold an industrial asset at a **4.3% cash capitalization rate** and repurchased **$28 million of floating-rate Trust Preferred Securities** at a **5% discount**, reducing leverage and increasing hedged/fixed-rate debt to **99% for 2025 and 2026**[4](index=4&type=chunk) [Key Operational and Financial Achievements](index=1&type=section&id=Key%20Operational%20and%20Financial%20Achievements) LXP reported increased net income, stable Adjusted Company FFO, robust same-store NOI growth, and strategic capital management in Q2 2025 Q2 2025 Key Financial Performance | Metric | Value | | :------------------------------------------------ | :------------------- | | Net Income attributable to common shareholders | $27.5 million | | Net Income per diluted common share | $0.09 | | Adjusted Company FFO available to all equityholders | $47.3 million | | Adjusted Company FFO per diluted common share | $0.16 | | Same-Store NOI growth (YoY) | 4.7% | | Trust Preferred Securities repurchased | $28.1 million | | Warehouse facility disposed | $39.6 million | - LXP leased a **1.1 million square foot development project** with an initial Cash Base Rent of **$5.50 per square foot**[5](index=5&type=chunk) - Year-to-date, LXP extended **1.3 million square feet of leases**, increasing Base and Cash Base Rents by **41.5% and 46.2% respectively** In Q2 alone, **120,000 square feet of leases** were extended, with Base and Cash Base Rents increasing by **18.2% and 18.1%**[5](index=5&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) LXP reported increased total gross revenues and a significant rise in net income for Q2 2025, with stable Adjusted Company FFO and consistent dividend declarations [Revenues](index=2&type=section&id=Revenues) Total gross revenues for Q2 2025 increased to $87.7 million, driven by acquisitions, rent increases, and stabilized development projects Total Gross Revenues (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------- | :----------------- | :----------------- | :----- | | Total Gross Revenues | $87.7 | $85.8 | +$1.9 | - The increase in revenues is mainly due to acquisitions, rent increases, and stabilized development projects, partially offset by property sales[6](index=6&type=chunk) [Net Income Attributable to Common Shareholders](index=2&type=section&id=Net%20Income%20Attributable%20to%20Common%20Shareholders) Net income attributable to common shareholders significantly increased to $27.5 million, or $0.09 per diluted share, in Q2 2025 Net Income Attributable to Common Shareholders (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :------------------------------------------ | :----------------- | :----------------- | :----- | | Net Income attributable to common shareholders | $27.5 | $3.8 | +$23.7 | | Net Income per diluted share | $0.09 | $0.01 | +$0.08 | [Adjusted Company FFO](index=2&type=section&id=Adjusted%20Company%20FFO) Adjusted Company FFO for Q2 2025 was $47.3 million, or $0.16 per diluted share, a slight increase from the prior year Adjusted Company FFO (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :------------------------------------------ | :----------------- | :----------------- | :----- | | Adjusted Company FFO | $47.3 | $46.9 | +$0.4 | | Adjusted Company FFO per diluted share | $0.16 | $0.16 | $0.00 | [Dividends](index=2&type=section&id=Dividends) LXP declared a regular quarterly common share dividend of $0.135 and a Series C Preferred Stock cash dividend of $0.8125 for Q2 2025 Q2 2025 Dividends Declared | Dividend Type | Amount per Share | Payment Date | Record Date | | :------------------------------------ | :--------------- | :----------- | :---------- | | Common Share Dividend | $0.135 | July 15, 2025 | June 30, 2025 | | Series C Preferred Stock Cash Dividend | $0.8125 | August 15, 2025 | July 31, 2025 | [Transaction Activity](index=2&type=section&id=Transaction%20Activity) LXP strategically disposed of a warehouse facility, initiated new redevelopment projects, and holds significant land for future industrial development [Property Disposition](index=2&type=section&id=Property%20Disposition) LXP disposed of one warehouse facility for $39.6 million in Q2 2025, contributing to $74.6 million in year-to-date dispositions Q2 2025 Property Disposition | Location | Price ($000) | Month of Disposition | % Leased | GAAP Cap Rate | Cash Cap Rate | | :--------------- | :------------- | :------------------- | :------- | :------------ | :------------ | | Chillicothe, OH | $39,621 | April | 100% | 4.5% | 4.3% | - Total consolidated year-to-date 2025 property disposition volume was **$74.6 million**, with aggregate weighted-average GAAP and Cash capitalization rates of **5.6% and 4.1%, respectively**[11](index=11&type=chunk) [Ongoing Development and Redevelopment Projects](index=3&type=section&id=Ongoing%20Development%20and%20Redevelopment%20Projects) LXP initiated two redevelopment projects in Orlando and Richmond totaling over 600,000 square feet, with estimated completion in 1Q 2026 Ongoing Redevelopment Projects (as of June 30, 2025) | Project | Market | Sq. Ft. | Estimated Project Cost ($000) | GAAP Investment Balance ($000) | Estimated Completion Date | % Leased | | :---------------- | :----------- | :-------- | :---------------------------- | :----------------------------- | :------------------------ | :------- | | Orlando (100%) | Central, FL | 350,990 | $9,400 | $14,303 | 1Q 2026 | —% | | Richmond (100%) | Richmond, VA | 252,351 | $3,700 | $11,244 | 1Q 2026 | —% | | **Total** | | **603,341** | **$13,100** | **$25,547** | | | - The Orlando redevelopment project began in Q2 2025 after the tenant vacated the building[13](index=13&type=chunk) - The Richmond redevelopment project, converting a vacated building into a standalone warehouse, commenced in Q1 2025[13](index=13&type=chunk) [Land Held for Industrial Development](index=3&type=section&id=Land%20Held%20for%20Industrial%20Development) LXP holds 445 acres of consolidated land and 69 acres of non-consolidated land for industrial development, with a combined GAAP investment balance of $95.2 million Land Held for Industrial Development (as of June 30, 2025) | Project Type | Market | Approximate Acres | GAAP Investment Balance ($000) | LXP Amount Funded ($000) | | :-------------------------- | :----------- | :---------------- | :----------------------------- | :------------------------- | | **Consolidated Projects** | | **445** | **$82,945** | **$80,745** | | Reems & Olive (95.5%) | Phoenix, AZ | 315 | $75,352 | $74,239 | | Mt. Comfort Phase II (80%) | Indianapolis, IN | 116 | $5,861 | $4,738 | | ATL Fairburn (100%) | Atlanta, GA | 14 | $1,732 | $1,768 | | **Non-Consolidated Projects** | | **69** | **$12,252** | **$14,757** | | Etna Park 70 (90%) | Columbus, OH | 48 | $9,871 | $11,695 | | Etna Park 70 East (90%) | Columbus, OH | 21 | $2,381 | $3,062 | [Leasing Activity](index=4&type=section&id=Leasing%20Activity) LXP executed a major new first-generation lease and extended existing second-generation leases with significant rent increases, maintaining strong portfolio occupancy [New Leases](index=4&type=section&id=New%20Leases) LXP executed one significant new first-generation lease for 1.1 million square feet in Greer, SC, during Q2 2025 Q2 2025 New Leases - First Generation | Location | Lease Expiration Date | Sq. Ft. | | :--------- | :-------------------- | :-------- | | Greer, SC | 05/27 | 1,091,888 | [Lease Extensions](index=4&type=section&id=Lease%20Extensions) LXP extended 119,580 square feet of second-generation leases in Q2 2025, with year-to-date rent increases of over 40% Q2 2025 Lease Extensions - Second Generation | Location | Prior Term | New Lease Expiration Date | Sq. Ft. | | :--------------- | :--------- | :------------------------ | :-------- | | Adairsville, GA | 09/25 | 11/30 | 100,960 | | Minneapolis, MN | 12/25 | 12/35 | 18,620 | | **Total** | | | **119,580** | - During the six months ended June 30, 2025, LXP entered into **2.4 million square feet of first-generation and extended second-generation leases**[16](index=16&type=chunk) - Base and Cash Base Rents on second-generation leases increased by **41.5% and 46.2%, respectively**, year-to-date[16](index=16&type=chunk) [Portfolio Occupancy](index=4&type=section&id=Portfolio%20Occupancy) LXP's stabilized portfolio was 94.1% leased as of June 30, 2025, rising to 98.4% when excluding first-generation space Portfolio Occupancy (as of June 30, 2025) | Metric | Occupancy Rate | | :------------------------------------------------ | :------------- | | Stabilized portfolio leased | 94.1% | | Stabilized portfolio leased (excluding first-generation space) | 98.4% | [Balance Sheet & Capital Structure](index=4&type=section&id=Balance%20Sheet%20%26%20Capital%20Structure) LXP maintained a net debt to Adjusted EBITDA ratio of 5.8x, strategically repurchased Trust Preferred Securities, and managed a consolidated debt of $1.5 billion Key Balance Sheet & Capital Metrics (as of June 30, 2025) | Metric | Value | | :------------------------------------ | :---------------- | | Net debt to Adjusted EBITDA | 5.8x | | Trust Preferred Securities repurchased | $28.1 million | | Discount on repurchase | 5% | | Total consolidated debt | $1.5 billion | | Weighted-average term to maturity | 5.0 years | | Weighted-average interest rate | 3.9% | [2025 Earnings Guidance](index=4&type=section&id=2025%20Earnings%20Guidance) LXP updated its 2025 earnings guidance, narrowing the estimated ranges for net income and Adjusted Company FFO per diluted common share 2025 Earnings Guidance (per diluted common share) | Metric | Estimated Range | | :------------------------------------------ | :-------------- | | Net income attributable to common shareholders | $0.13 to $0.15 | | Adjusted Company FFO | $0.62 to $0.64 | - The guidance is forward-looking, excludes the impact of certain items, and is based on current expectations[18](index=18&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) LXP hosted a conference call on July 30, 2025, to discuss Q2 2025 results, with a replay available for a limited period - LXP held a conference call on **July 30, 2025, at 8:30 a.m. ET** to discuss Q2 2025 results[19](index=19&type=chunk) - Conference call replay was available until **August 6, 2025**, via dial-in numbers and a webcast link on www.lxp.com[19](index=19&type=chunk) [Non-GAAP Financial Measures Definitions](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines key non-GAAP financial measures used by LXP, including Adjusted EBITDA, FFO, NOI, and various rent and cost metrics [Adjusted EBITDA](index=6&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP measure derived from EBITDA, adjusted for specific non-cash and non-recurring items to reflect operational performance - Adjusted EBITDA is defined as EBITDA (earnings before interest expense, taxes, depreciation, and amortization) modified by various adjustments including gains/losses on real estate sales, impairment charges, and non-cash items[25](index=25&type=chunk) - LXP considers net income as the most directly comparable GAAP measure to Adjusted EBITDA[25](index=25&type=chunk) [Base Rent](index=6&type=section&id=Base%20Rent) Base Rent is a non-GAAP measure adjusting GAAP rental revenue by excluding tenant reimbursements and lease termination income, and including ancillary income - Base Rent adjusts GAAP rental revenue by excluding billed tenant reimbursements and lease termination income, and including ancillary income[26](index=26&type=chunk) - Base Rent excludes reserves/write-offs of deferred rent receivable[26](index=26&type=chunk) [Cash Base Rent](index=6&type=section&id=Cash%20Base%20Rent) Cash Base Rent is a non-GAAP measure that removes GAAP rental income adjustments, providing an indication of an investment's ability to fund cash needs - Cash Base Rent removes the impact of GAAP required adjustments to rental income (e.g., straight-line rents) from GAAP rental revenue[27](index=27&type=chunk) - It excludes billed tenant reimbursements, non-cash sales-type lease income, and lease termination income, but includes ancillary income[27](index=27&type=chunk) [Company Funds Available for Distribution (FAD)](index=6&type=section&id=Company%20Funds%20Available%20for%20Distribution%20(FAD)) FAD is a non-GAAP measure adjusting Adjusted Company FFO for non-cash items and cash expenditures related to tenant improvements and lease costs - FAD is calculated by adjusting Adjusted Company FFO for items like straight-line adjustments, lease incentive amortization, non-cash interest, and cash paid for second-generation tenant improvements and lease costs[28](index=28&type=chunk) - FAD is a non-GAAP measure and should not be viewed as an alternative to net income or net cash flows from operating activities, or as a measure of liquidity[28](index=28&type=chunk) [First-Generation Costs](index=6&type=section&id=First-Generation%20Costs) First-Generation Costs are cash expenditures for tenant improvements, leasing costs, and acquisition-contemplated expenses for newly acquired vacant properties - First-Generation Costs are cash expenditures for tenant improvements, leasing costs, and acquisition-related expenses for newly acquired vacant properties[29](index=29&type=chunk) [Funds from Operations (FFO) and Adjusted Company FFO](index=6&type=section&id=Funds%20from%20Operations%20(FFO)%20and%20Adjusted%20Company%20FFO) FFO, a Nareit-defined non-GAAP measure, and Adjusted Company FFO provide insights into REIT performance by excluding certain real estate-related items - FFO, as defined by Nareit, is net income excluding real estate depreciation/amortization, gains/losses from certain real estate asset sales, and impairment write-downs[31](index=31&type=chunk) - FFO provides a performance measure reflecting trends in occupancy, rental rates, operating costs, and development activities without including depreciation and amortization[30](index=30&type=chunk) - Adjusted Company FFO further adjusts FFO for items not indicative of LXP's real estate portfolio's operating results and not comparable from period to period[32](index=32&type=chunk) [GAAP and Cash Yield or Capitalization Rate](index=7&type=section&id=GAAP%20and%20Cash%20Yield%20or%20Capitalization%20Rate) GAAP and Cash Yields or Capitalization Rates are estimated operating performance measures for investments, calculated by dividing annualized NOI by cost or sale price - GAAP and cash yields/capitalization rates are measures of operating performance for individual investments, calculated by dividing annualized NOI by the acquisition/completion cost or sale price[34](index=34&type=chunk) - Stabilized yields assume **100% occupancy** and the payment of estimated costs to achieve **100% occupancy**, excluding developer incentive fees[34](index=34&type=chunk) [Net Operating Income (NOI)](index=7&type=section&id=Net%20Operating%20Income%20(NOI)) NOI is a non-GAAP measure of operating performance for individual investments, representing operating revenues less property operating expenses - NOI is defined as operating revenues (rental income adjusted for GAAP rent adjustments, non-cash income, and lease termination income, plus other property income) less property operating expenses[35](index=35&type=chunk) - NOI excludes general and administrative expenses, interest expense, depreciation and amortization, and gains/losses from property dispositions[35](index=35&type=chunk) - LXP believes net income is the most directly comparable GAAP measure to NOI[35](index=35&type=chunk) [Same-Store NOI](index=7&type=section&id=Same-Store%20NOI) Same-Store NOI measures operating performance for a consistent set of consolidated properties, excluding changes from acquisitions, expansions, or dispositions - Same-Store NOI includes NOI for consolidated properties owned, stabilized, and in the portfolio from **January 1, 2024**, through the current reporting period[36](index=36&type=chunk) - It excludes changes in NOI from acquired, expanded, disposed of properties, and properties with significant casualty loss, to highlight operating trends[36](index=36&type=chunk) - LXP believes net income is the most directly comparable GAAP measure to Same-Store NOI[36](index=36&type=chunk) [Second-Generation Costs](index=7&type=section&id=Second-Generation%20Costs) Second-Generation Costs refer to cash expenditures for tenant improvements and leasing costs incurred to maintain revenues at existing stabilized properties - Second-Generation Costs are cash expenditures for tenant improvements and leasing costs aimed at maintaining revenues at existing properties[37](index=37&type=chunk) - These costs are a component of the FAD calculation and are viewed as an investment in existing stabilized properties[37](index=37&type=chunk) [Stabilized Portfolio](index=7&type=section&id=Stabilized%20Portfolio) The Stabilized Portfolio includes all real estate properties except non-stabilized ones, with stabilization occurring at 90% occupancy or one year post-construction - The Stabilized Portfolio includes all real estate properties except non-stabilized ones[38](index=38&type=chunk) - Stabilization occurs at the earlier of **90% occupancy** or **one year** from the cessation of major construction activities[38](index=38&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents LXP's condensed consolidated financial statements, including statements of operations, balance sheets, earnings per share, and FFO/FAD reconciliations [Statements of Operations](index=8&type=section&id=Statements%20of%20Operations) The condensed consolidated statements of operations detail LXP's financial performance for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data) | Metric | Three months ended June 30, 2025 (Thousands) | Three months ended June 30, 2024 (Thousands) | Six months ended June 30, 2025 (Thousands) | Six months ended June 30, 2024 (Thousands) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rental revenue | $86,744 | $84,768 | $174,637 | $169,975 | | Total gross revenues | $87,719 | $85,786 | $176,582 | $172,037 | | Depreciation and amortization | $(49,362) | $(48,347) | $(99,874) | $(95,856) | | Property operating | $(15,875) | $(15,482) | $(33,004) | $(30,670) | | General and administrative | $(9,630) | $(9,248) | $(20,020) | $(18,741) | | Interest and amortization expense | $(16,467) | $(17,603) | $(32,747) | $(34,587) | | Gain on sale or disposal of real estate, net | $31,320 | $8,352 | $55,955 | $8,352 | | Net income | $28,397 | $4,801 | $46,559 | $4,246 | | Net income attributable to common shareholders | $27,450 | $3,775 | $44,729 | $1,844 | | Net income per common share diluted | $0.09 | $0.01 | $0.15 | $0.01 | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets present LXP's financial position as of June 30, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited, in thousands) | Asset/Liability/Equity | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :------------------------------------ | :-------------- | :---------------- | | Real estate, net | $3,444,731 | $3,536,346 | | Cash and cash equivalents | $70,976 | $101,836 | | Total assets | $3,717,130 | $3,843,312 | | Mortgages and notes payable, net | $52,260 | $54,930 | | Term loan payable, net | $248,615 | $297,814 | | Senior notes payable, net | $1,090,411 | $1,089,373 | | Trust preferred securities, net | $100,074 | $127,893 | | Total liabilities | $1,630,956 | $1,722,529 | | Total shareholders' equity | $2,064,355 | $2,098,292 | | Total equity | $2,086,174 | $2,120,783 | | Total liabilities and equity | $3,717,130 | $3,843,312 | [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) This section provides a detailed breakdown of basic and diluted earnings per common share for the three and six months ended June 30, 2025, and 2024, along with weighted-average common shares outstanding Earnings Per Share (Unaudited, in thousands, except share and per share data) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to common shareholders | $27,450 | $3,775 | $44,729 | $1,844 | | Weighted-average common shares outstanding - basic | 291,872,243 | 291,403,985 | 291,789,613 | 291,346,184 | | Net income per common share basic | $0.09 | $0.01 | $0.15 | $0.01 | | Weighted-average common shares outstanding - diluted | 292,208,168 | 291,615,350 | 292,253,680 | 291,451,866 | | Net income per common share diluted | $0.09 | $0.01 | $0.15 | $0.01 | [Adjusted Company FFO & Company Funds Available for Distribution](index=11&type=section&id=Adjusted%20Company%20FFO%20%26%20Company%20Funds%20Available%20for%20Distribution) This section provides the reconciliation and calculation of Funds from Operations (FFO) and Adjusted Company FFO, as well as Company Funds Available for Distribution (FAD), for the three and six months ended June 30, 2025, and 2024 FFO, Adjusted Company FFO & FAD (Unaudited, in thousands, except share and per share data) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to common shareholders | $27,450 | $3,775 | $44,729 | $1,844 | | FFO available to common shareholders - basic | $46,698 | $44,818 | $91,060 | $91,959 | | FFO available to all equityholders - diluted | $48,380 | $46,469 | $94,441 | $95,272 | | Adjusted Company FFO available to all equityholders - diluted | $47,275 | $46,904 | $93,686 | $95,702 | | Company Funds Available for Distribution | $42,309 | $38,718 | $90,433 | $83,956 | | FFO per common share diluted | $0.16 | $0.16 | $0.32 | $0.32 | | Adjusted Company FFO per common share diluted | $0.16 | $0.16 | $0.32 | $0.32 | [2025 Earnings Guidance Reconciliation](index=12&type=section&id=2025%20Earnings%20Guidance%20Reconciliation) This table provides a reconciliation of LXP's estimated net income attributable to common shareholders per diluted common share to its estimated Adjusted Company FFO per diluted common share for the year ending December 31, 2025 2025 Earnings Guidance Reconciliation (Twelve Months Ended December 31, 2025) | Metric | Range (per diluted common share) | | :------------------------------------------ | :----------------------------- | | Estimated Net income attributable to common shareholders | $0.13 to $0.15 | | Depreciation and amortization | $0.68 | | Impact of capital transactions | $(0.19) | | Estimated Adjusted Company FFO | $0.62 to $0.64 |

[PART I. — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20%E2%80%94%20FINANCIAL%20INFORMATION) [ITEM 1. Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section contains LXP Industrial Trust's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income (loss), changes in equity, and cash flows, along with related notes, for the quarters and six-month periods ended June 30, 2025, and June 30, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets decreased to **$3,717,130 thousand** from **$3,843,312 thousand** on December 31, 2024, with corresponding reductions in total liabilities and equity Condensed Consolidated Balance Sheets Key Data (Thousand USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets:** | | | | Real estate, net | 3,444,731 | 3,536,346 | | Cash and cash equivalents | 70,976 | 101,836 | | Investments in real estate under development | 33,735 | 5,947 | | Total assets | 3,717,130 | 3,843,312 | | **Liabilities:** | | | | Mortgage notes and notes payable, net | 52,260 | 54,930 | | Term loans, net | 248,615 | 297,814 | | Senior notes, net | 1,090,411 | 1,089,373 | | Trust preferred securities, net | 100,074 | 127,893 | | Total liabilities | 1,630,956 | 1,722,529 | | **Equity:** | | | | Total shareholders' equity | 2,064,355 | 2,098,292 | | Non-controlling interests | 21,819 | 22,491 | | Total equity | 2,086,174 | 2,120,783 | | Total liabilities and equity | 3,717,130 | 3,843,312 | - As of June 30, 2025, the company's total assets were **$3,717,130 thousand**, a 3.3% decrease from December 31, 2024[10](index=10&type=chunk) - As of June 30, 2025, the company's total liabilities were **$1,630,956 thousand**, a 5.3% decrease from December 31, 2024[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income attributable to common shareholders significantly increased for both the three and six-month periods ended June 30, 2025, with basic and diluted EPS rising from **$0.01** to **$0.09** and **$0.15**, respectively Condensed Consolidated Statements of Operations Key Data (Thousand USD, except per share data) | Indicator | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Rental income | 86,744 | 84,768 | 174,637 | 169,975 | | Total revenues | 87,719 | 85,786 | 176,582 | 172,037 | | Depreciation and amortization | (49,362) | (48,347) | (99,874) | (95,856) | | Interest and amortization expense | (16,467) | (17,603) | (32,747) | (34,587) | | Gain on sale or disposal of real estate, net | 31,320 | 8,352 | 55,955 | 8,352 | | Net income | 28,397 | 4,801 | 46,559 | 4,246 | | Net income attributable to LXP Industrial Trust shareholders | 29,132 | 5,426 | 48,110 | 5,157 | | Net income attributable to common shareholders | 27,450 | 3,775 | 44,729 | 1,844 | | Basic earnings per share | 0.09 | 0.01 | 0.15 | 0.01 | | Diluted earnings per share | 0.09 | 0.01 | 0.15 | 0.01 | - For the three months ended June 30, 2025, net income attributable to common shareholders increased by **627.2%** to **$27,450 thousand** year-over-year[12](index=12&type=chunk) - For the six months ended June 30, 2025, net income attributable to common shareholders increased by **2325.6%** to **$44,729 thousand** year-over-year[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income significantly increased for both the three and six-month periods ended June 30, 2025, reaching **$27,072 thousand** and **$42,024 thousand**, respectively Condensed Consolidated Statements of Comprehensive Income (Loss) Key Data (Thousand USD) | Indicator | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Net income | 28,397 | 4,801 | 46,559 | 4,246 | | Other comprehensive income (loss) | (1,325) | (2,226) | (4,535) | (3,286) | | Comprehensive income | 27,072 | 2,575 | 42,024 | 960 | | Comprehensive income attributable to LXP Industrial Trust shareholders | 27,807 | 3,200 | 43,575 | 1,871 | - For the three months ended June 30, 2025, comprehensive income attributable to LXP Industrial Trust shareholders increased by **769.0%** to **$27,807 thousand** year-over-year[15](index=15&type=chunk) - For the six months ended June 30, 2025, comprehensive income attributable to LXP Industrial Trust shareholders increased by **2226.8%** to **$43,575 thousand** year-over-year[15](index=15&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased to **$2,086,174 thousand** as of June 30, 2025, primarily due to dividends/distributions and comprehensive loss, partially offset by net income and equity-based compensation Condensed Consolidated Statements of Changes in Equity Key Data (Thousand USD, except share count) | Indicator | June 30, 2025 (Period End) | December 31, 2024 (Period Start) | | :--- | :--- | :--- | | Total equity | 2,086,174 | 2,120,783 | | Preferred stock | 94,016 | 94,016 | | Common stock | 30 | 29 | | Additional paid-in capital | 3,320,069 | 3,315,104 | | Accumulated distributions in excess of net income | (1,351,361) | (1,316,993) | | Accumulated other comprehensive income | 1,601 | 6,136 | | Non-controlling interests | 21,819 | 22,491 | | Common shares issued (6 months 2025) | 1,256,593 | - | | Dividends/distributions (6 months 2025) | (82,588) | - | | Net income (6 months 2025) | 46,559 | - | | Other comprehensive loss (6 months 2025) | (4,518) | - | - As of June 30, 2025, the company's total equity was **$2,086,174 thousand**, a 1.6% decrease from December 31, 2024[21](index=21&type=chunk) - For the six months ended June 30, 2025, the company paid **$82,588 thousand** in dividends/distributions[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased, while net cash used in investing and financing activities decreased for the six months ended June 30, 2025, resulting in a lower ending cash balance Condensed Consolidated Statements of Cash Flows Key Data (Thousand USD) | Indicator | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | | Net cash provided by operating activities | 83,278 | 77,369 | | Net cash provided by investing activities | 47,615 | 82,060 | | Net cash used in financing activities | (161,743) | (309,990) | | Change in cash, cash equivalents, and restricted cash | (30,850) | (150,561) | | Cash, cash equivalents, and restricted cash at period end | 71,223 | 48,902 | | Interest paid | 30,921 | 35,561 | | Income taxes paid | 652 | 588 | - For the six months ended June 30, 2025, net cash provided by operating activities increased by **7.6%** to **$83,278 thousand** year-over-year[25](index=25&type=chunk) - For the six months ended June 30, 2025, net cash provided by investing activities decreased by **41.9%** to **$47,615 thousand**, primarily due to reduced net proceeds from real estate sales and lower investments in real estate under development[25](index=25&type=chunk) - For the six months ended June 30, 2025, net cash used in financing activities decreased by **47.9%** to **$161,743 thousand**, mainly due to partial repayment of term loans and repurchase of trust preferred securities[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company overview, accounting policies, EPS calculation, real estate investments, dispositions, fair value, debt, and other key financial disclosures [Note 1: The Company and Financial Statement Presentation](index=10&type=section&id=Note%201%3A%20The%20Company%20and%20Financial%20Statement%20Presentation) LXP Industrial Trust, a Maryland REIT focused on Class A warehouse and distribution facilities, owned approximately **116** consolidated real estate interests as of June 30, 2025, with financial statements prepared under GAAP and consolidating certain VIEs - LXP Industrial Trust is a Maryland real estate investment trust (REIT) focused on equity investments in Class A warehouse and distribution facilities[29](index=29&type=chunk) - As of June 30, 2025, the company owned approximately **116** consolidated real estate interests across 16 states[30](index=30&type=chunk) - The company has identified its joint ventures as variable interest entities (VIEs) and consolidates their operations into its condensed consolidated financial statements as the primary beneficiary[35](index=35&type=chunk) Selected Financial Data for Consolidated VIEs (Thousand USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Real estate, net | 377,378 | 380,563 | | Total assets | 390,500 | 392,791 | | Total liabilities | 9,507 | 8,603 | [Note 2: Earnings Per Share](index=12&type=section&id=Note%202%3A%20Earnings%20Per%20Share) The company calculates basic and diluted earnings per share using the two-class method, with both metrics showing significant growth for the three and six-month periods ended June 30, 2025 Earnings Per Share Calculation (USD, except share count) | Indicator | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to common shareholders | 27,450 | 3,775 | 44,729 | 1,844 | | Weighted-average common shares (basic) | 291,872,243 | 291,403,985 | 291,789,613 | 291,346,184 | | Basic earnings per share | 0.09 | 0.01 | 0.15 | 0.01 | | Weighted-average common shares (diluted) | 292,208,168 | 291,615,350 | 292,253,680 | 291,451,866 | | Diluted earnings per share | 0.09 | 0.01 | 0.15 | 0.01 | - For the three months ended June 30, 2025, basic and diluted EPS both increased from **$0.01** in 2024 to **$0.09**[42](index=42&type=chunk) - For the six months ended June 30, 2025, basic and diluted EPS both increased from **$0.01** in 2024 to **$0.15**[42](index=42&type=chunk) [Note 3: Investments in Real Estate](index=13&type=section&id=Note%203%3A%20Investments%20in%20Real%20Estate) As of June 30, 2025, the company's total investment in real estate under development was **$33,735 thousand**, including redevelopment projects and land infrastructure improvements, alongside **$82,945 thousand** in land held for industrial development Real Estate Under Development Investment Details (Thousand USD, except square feet) | Project | Number of Buildings | Market | Estimated Square Feet | Estimated Project Cost | GAAP Balance (June 30, 2025) | LXP Amount Invested (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Orlando Redevelopment (100.0%) | 1 | Central Florida | 350,990 | 9,400 | 14,303 | 254 | | Richmond Redevelopment (100.0%) | 1 | Richmond, VA | 252,351 | 3,700 | 11,244 | 201 | | Reems & Olive Land Infrastructure Improvements (95.5%) | N/A | Phoenix, AZ | N/A | 15,381 | 8,188 | 8,446 | | **Total** | **2** | | **603,341** | **28,481** | **33,735** | **8,901** | Land Held for Development Details (Thousand USD, except acres) | Project | Market | Approximately Developable Acres | GAAP Investment Balance (June 30, 2025) | LXP Amount Invested (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | | Reems & Olive (95.5%) | Phoenix, AZ | 315 | 75,352 | 74,239 | | Mt. Comfort Phase II (80.0%) | Indianapolis, IN | 116 | 5,861 | 4,738 | | ATL Fairburn (100.0%) | Atlanta, GA | 14 | 1,732 | 1,768 | | **Total** | | **445** | **82,945** | **80,745** | - As of June 30, 2025, the company's total investment in real estate under development was **$33,735 thousand**[46](index=46&type=chunk) [Note 4: Dispositions and Impairment](index=14&type=section&id=Note%204%3A%20Dispositions%20and%20Impairment) For the six months ended June 30, 2025, the company disposed of two properties, generating **$73,502 thousand** in net proceeds and **$56,035 thousand** in gains, with no impairment charges and a **$80 thousand** net loss from a fire Real Estate Dispositions Summary (Thousand USD, except square feet) | Indicator | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | | Number of buildings | 2 | 2 | | Building area (square feet) | 731,127 | 338,301 | | Net proceeds from real estate sales | 73,502 | 15,493 | | Net book value | 17,467 | 9,018 | | Gain on real estate sales | 56,035 | 8,352 | - For the six months ended June 30, 2025, the company disposed of two real estate properties, generating **$73,502 thousand** in net proceeds and realizing **$56,035 thousand** in gains on sales[49](index=49&type=chunk) - For the six months ended June 30, 2025, no real estate impairment charges were incurred by the company[52](index=52&type=chunk) - A fire at a Georgia warehouse facility on May 10, 2025, resulted in a **$80 thousand** net loss, recorded in the statements of operations[53](index=53&type=chunk) [Note 5: Fair Value Measurements](index=15&type=section&id=Note%205%3A%20Fair%20Value%20Measurements) As of June 30, 2025, the fair value of the company's interest rate swap assets was **$1,616 thousand**, primarily classified as Level 2, while the fair value of debt was estimated at **$1,401,620 thousand** Fair Value Measurements (Thousand USD) | Description | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interest rate swap assets | 1,616 | 6,134 | | Debt (carrying value) | 1,491,360 | 1,570,010 | | Debt (fair value) | 1,401,620 | 1,459,062 | - As of June 30, 2025, the fair value of interest rate swap assets was **$1,616 thousand**, a decrease from **$6,134 thousand** on December 31, 2024[54](index=54&type=chunk) - As of June 30, 2025, the fair value of the company's debt was estimated at **$1,401,620 thousand**[55](index=55&type=chunk) [Note 6: Investments in Non-Consolidated Entities](index=16&type=section&id=Note%206%3A%20Investments%20in%20Non-Consolidated%20Entities) As of June 30, 2025, the company's total investment in non-consolidated entities was **$38,416 thousand**, from which it earned **$1,945 thousand** in advisory fees for the six-month period Non-Consolidated Entities Investment Summary (Thousand USD) | Investment Project | Ownership Percentage (June 30, 2025) | Investment Balance (June 30, 2025) | Investment Balance (December 31, 2024) | Equity Income (Loss) (6 months June 30, 2025) | Equity Income (Loss) (6 months June 30, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | NNN MFG Cold JV L.P. | 20% | 8,873 | 10,428 | (1,538) | (1,986) | | NNN Office JV L.P. | 20% | 14,980 | 15,189 | (210) | (74) | | Etna Park 70, LLC | 90% | 9,871 | 9,732 | (107) | (134) | | Etna Park East LLC | 90% | 2,381 | 2,360 | (85) | (92) | | Lombard Street Lots, LLC | 44.1% | 2,311 | 2,309 | 2 | — | | **Total** | | **38,416** | **40,018** | **(1,938)** | **(2,286)** | - For the six months ended June 30, 2025, the company earned **$1,945 thousand** in advisory fees from non-consolidated entities, a decrease from **$2,062 thousand** in the prior year period[60](index=60&type=chunk) [Note 7: Debt](index=17&type=section&id=Note%207%3A%20Debt) As of June 30, 2025, total debt decreased to **$1,491,360 thousand** due to term loan repayments and trust preferred securities repurchases, with **$600,000 thousand** available on an unsecured revolving credit facility Outstanding Debt Obligations (Thousand USD) | Debt Type | June 30, 2025 | December 31, 2024 | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | Mortgage notes, net | 52,260 | 54,930 | 4.1% (weighted average) | 2028-2031 | | Term loans, net | 248,615 | 297,814 | SOFR + 1.10% | January 2027 | | 2023 Senior Notes | 300,000 | 300,000 | 6.750% | November 2028 | | 2020 Senior Notes | 400,000 | 400,000 | 2.700% | September 2030 | | 2021 Senior Notes | 400,000 | 400,000 | 2.375% | October 2031 | | Trust preferred securities, net | 100,074 | 127,893 | Three-month SOFR + 1.96% | April 2037 | | **Total Debt** | **1,491,360** | **1,570,010** | | | - As of June 30, 2025, the company's total debt was **$1,491,360 thousand**, a 5.0% decrease from December 31, 2024[62](index=62&type=chunk) - As of June 30, 2025, the company repaid **$50,000 thousand** of its term loan and repurchased **$28,125 thousand** of trust preferred securities, leading to a net reduction in debt[63](index=63&type=chunk)[65](index=65&type=chunk) - The company has a **$600,000 thousand** unsecured revolving credit facility with no outstanding borrowings as of June 30, 2025[67](index=67&type=chunk) [Note 8: Derivatives and Hedging Activities](index=18&type=section&id=Note%208%3A%20Derivatives%20and%20Hedging%20Activities) The company uses interest rate swaps to manage interest rate risk, holding **$632,500 thousand** in notional value of swaps with a fair value of **$1,616 thousand** as of June 30, 2025 Outstanding Derivative Financial Instruments Summary (Thousand USD) | Derivative Type | Number | Effective Date | Maturity Date | Notional Value | Fair Value (June 30, 2025) | Fair Value (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Term Loan Interest Rate Swaps | 4 | July 1, 2022 | January 31, 2025 | 300,000 | — | 678 | | Term Loan Interest Rate Swaps | 5 | January 31, 2025 | January 31, 2027 | 250,000 | 1,326 | 3,762 | | Trust Preferred Securities Interest Rate Swaps | 2 | October 30, 2024 | October 30, 2027 | 82,500 | 290 | 1,694 | | **Total** | | | | **632,500** | **1,616** | **6,134** | - As of June 30, 2025, the company held interest rate swap agreements with a total notional value of **$632,500 thousand** and a fair value of **$1,616 thousand**[71](index=71&type=chunk) - For the six months ended June 30, 2025, the company estimates **$1,953 thousand** will be reclassified from accumulated other comprehensive income to a reduction in interest expense[71](index=71&type=chunk) [Note 9: Lease Accounting](index=19&type=section&id=Note%209%3A%20Lease%20Accounting) As a lessor, the company's rental income increased for both periods ended June 30, 2025, from its net-lease real estate assets; as a lessee, it holds operating leases with a **9.0-year** weighted-average remaining term and a **4.2%** discount rate Rental Income Classification (Thousand USD) | Classification | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Fixed rent | 72,285 | 69,748 | 145,175 | 139,760 | | Sales-type lease income | — | 1,917 | — | 3,816 | | Variable rent | 14,459 | 13,103 | 29,462 | 26,399 | | **Total** | **86,744** | **84,768** | **174,637** | **169,975** | Future Fixed Rental Income (Lessor, Thousand USD) | Year | Amount | | :--- | :--- | | 2025 (remaining) | 141,742 | | 2026 | 278,808 | | 2027 | 242,688 | | 2028 | 207,663 | | 2029 | 181,346 | | 2030 | 138,990 | | Thereafter | 395,809 | | **Total** | **1,587,046** | Operating Lease Supplemental Information (Lessee) | Indicator | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | | Weighted-average remaining lease term (years) | 9.0 | 8.6 | | Weighted-average discount rate | 4.2% | 4.1% | | Total lease cost (6 months 2025) | 2,856 | 2,683 | | Present value of operating lease liabilities | 14,730 | - | [Note 10: Concentration of Risk](index=22&type=section&id=Note%2010%3A%20Concentration%20of%20Risk) The company mitigates operational and leasing risks through geographic and tenant industry diversification, avoiding single-asset dependency, and maintaining tenant credit ratings, with no single tenant accounting for over **10%** of rental income for the six months ended June 30, 2025 - The company mitigates operational and leasing risks through geographic diversification, tenant industry diversification, and tenant credit ratings[92](index=92&type=chunk) - For the six months ended June 30, 2025, no single tenant accounted for more than **10%** of rental income[92](index=92&type=chunk) [Note 11: Equity](index=22&type=section&id=Note%2011%3A%20Equity) The company maintains an ATM program for up to **$350,000 thousand** in common stock, has **6,874,241** shares available for repurchase, and has **1,935,400** shares of Series C Cumulative Convertible Preferred Stock outstanding as of June 30, 2025 - The company maintains an At-The-Market (ATM) program to issue up to **$350,000 thousand** of common stock, but no shares were sold during the first six months of 2025 or 2024[94](index=94&type=chunk) - The Board of Trustees authorized the repurchase of an additional **10,000,000** shares of common stock, with **6,874,241** shares remaining available for repurchase as of June 30, 2025[96](index=96&type=chunk) - As of June 30, 2025, the company had **1,935,400** shares of Series C Cumulative Convertible Preferred Stock outstanding, with a **$3.25** per share dividend and a **$96,770 thousand** liquidation preference[97](index=97&type=chunk) Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Thousand USD) | Indicator | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | | Beginning balance | 6,136 | 9,483 | | Other comprehensive income before reclassifications | (2,257) | 2,499 | | Reclassification from accumulated other comprehensive income to interest expense | (2,278) | (5,785) | | Ending balance | 1,601 | 6,197 | [Note 12: Segment Reporting](index=23&type=section&id=Note%2012%3A%20Segment%20Reporting) The company operates as a single operating segment, focusing on Class A warehouse and distribution facilities, as its Chief Operating Decision Maker (CODM) reviews the business on a consolidated basis for performance evaluation and operational decisions - The company has a single operating segment, as its organizational and management structure and the information used by the CODM for decision-making are based on a consolidated basis[101](index=101&type=chunk) - The CODM uses consolidated net income (loss) to measure performance and assess the company's ability to pay dividends[102](index=102&type=chunk) [Note 13: Related Party Transactions](index=24&type=section&id=Note%2013%3A%20Related%20Party%20Transactions) No additional related party transactions occurred during the reporting period beyond those already disclosed in other sections of the financial statements - No additional related party transactions beyond those already disclosed[103](index=103&type=chunk) [Note 14: Commitments and Contingencies](index=24&type=section&id=Note%2014%3A%20Commitments%20and%20Contingencies) As of June 30, 2025, the company anticipates approximately **$44,000 thousand** in additional costs for consolidated development project commitments and is involved in legal proceedings not expected to materially impact its financial condition - As of June 30, 2025, the company expects to incur approximately **$44,000 thousand** in additional costs to fund its consolidated development project commitments[106](index=106&type=chunk) - The company is involved in legal proceedings arising in the ordinary course of business, which management believes will not have a material adverse effect on its business, financial condition, and results of operations[107](index=107&type=chunk) [Note 15: Subsequent Events](index=24&type=section&id=Note%2015%3A%20Subsequent%20Events) The company has evaluated all subsequent events through June 30, 2025, and found no material events requiring adjustment, recognition, or disclosure - The company has evaluated all subsequent events through June 30, 2025, and found no material events requiring adjustment, recognition, or disclosure[108](index=108&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses LXP Industrial Trust's financial condition and operating results for the three and six-month periods ended June 30, 2025, covering company overview, liquidity, capital resources, development costs, operating performance, same-store results, and non-GAAP financial measures [Introduction](index=25&type=section&id=Introduction) This introduction defines LXP Industrial Trust and its consolidated subsidiaries, specifies the reporting period, explains key terms like REIT and GAAP, and mentions new tax legislation and forward-looking statements - This report covers the financial condition and results of operations for LXP Industrial Trust and its consolidated subsidiaries for the three and six-month periods ended June 30, 2025[110](index=110&type=chunk)[111](index=111&type=chunk) - New tax legislation effective July 4, 2025, permanently extended the **20%** deduction for 'qualified REIT dividends' and increased the asset test percentage limitation for taxable REIT subsidiaries (TRSs) from **20%** to **25%**[116](index=116&type=chunk) [Overview](index=26&type=section&id=Overview) As of June 30, 2025, the company owned approximately **116** consolidated real estate interests totaling **56.4 million square feet** with **94.1%** occupancy, focusing on Class A warehouse and distribution facilities, and undertook redevelopment, repurchases, and dispositions in Q2 2025 - As of June 30, 2025, the company owned approximately **116** consolidated real estate interests, totaling approximately **56.4 million square feet**, with an occupancy rate of **94.1%**[119](index=119&type=chunk) - The company focuses on investing in Class A warehouse and distribution facilities across 12 target markets in the Sunbelt and Midwest regions[120](index=120&type=chunk) - In Q2 2025, the company commenced redevelopment of a **350 thousand square foot** warehouse facility, repurchased **$28.1 million** of trust preferred securities, and disposed of one facility for **$39.6 million**[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - The company executed lease extensions for **0.1 million square feet** at an average fixed rent of **$11.36 per square foot**, up from **$9.63** prior to extension[126](index=126&type=chunk) [Critical Accounting Estimates](index=26&type=section&id=Critical%20Accounting%20Estimates) No significant changes occurred in the company's critical accounting estimates during the six-month period ended June 30, 2025, as detailed in the annual report - No significant changes occurred in the company's critical accounting estimates during the six months ended June 30, 2025[125](index=125&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$71.0 million** in cash and a **$600.0 million** unsecured revolving credit facility, with operating cash flow increasing to **$83.3 million** for the first half of 2025, supporting operations, debt, and dividends - The company believes cash flow from operations will continue to provide sufficient capital to meet operating and administrative expenses, scheduled debt service obligations, and all dividend payments[127](index=127&type=chunk) - As of June 30, 2025, the company had **$71.0 million** in cash and cash equivalents and a **$600.0 million** unsecured revolving credit facility (subject to covenant compliance)[128](index=128&type=chunk) Cash Flow Activities Summary (Million USD) | Activity Type | June 30, 2025 (6 months) | June 30, 2024 (6 months) | Change | | :--- | :--- | :--- | :--- | | Operating cash flow | 83.3 | 77.4 | Increase 5.9 | | Investing cash flow | 47.6 | 82.1 | Decrease 34.5 | | Financing cash flow | (161.7) | (310.0) | Decrease 148.3 | | Cash and restricted cash at period end | 71.2 | 48.9 | Increase 22.3 | - In the first half of 2025, the company repurchased **$28.1 million** of trust preferred securities and increased its quarterly common stock dividend from **$0.13** to **$0.135**[135](index=135&type=chunk)[136](index=136&type=chunk) [Development Costs](index=28&type=section&id=Development%20Costs) As of June 30, 2025, the company's total investment in real estate under development for consolidated projects was **$33.7 million**, with an estimated **$44.0 million** in additional costs anticipated for remaining commitments - As of June 30, 2025, the company's total investment in real estate under development for consolidated development and redevelopment projects was **$33.7 million**[144](index=144&type=chunk) - The company expects to incur approximately **$44.0 million** in additional costs (excluding non-controlling interest share and potential developer incentive fees or partner acquisitions) to fund all remaining consolidated development project commitments[144](index=144&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net income attributable to common shareholders significantly increased for both the three and six-month periods ended June 30, 2025, driven by higher gains on real estate sales, increased rental income, and reduced interest and amortization expenses - For the three months ended June 30, 2025, net income attributable to common shareholders increased by **$23.7 million**, primarily due to a **$23.0 million** increase in gains on real estate sales and a **$2.0 million** increase in rental income[145](index=145&type=chunk)[146](index=146&type=chunk)[149](index=149&type=chunk) - For the six months ended June 30, 2025, net income attributable to common shareholders increased by **$43.0 million**, primarily due to a **$47.6 million** increase in gains on real estate sales and a **$4.7 million** increase in rental income[150](index=150&type=chunk)[156](index=156&type=chunk) - Interest and amortization expense decreased by **$1.1 million** and **$1.8 million** for the three and six-month periods, respectively, mainly due to the repayment of 2024 Senior Notes and interest rate swaps and partial repurchases of trust preferred securities[148](index=148&type=chunk)[154](index=154&type=chunk) [Same-Store Results](index=30&type=section&id=Same-Store%20Results) Same-store Net Operating Income (NOI) grew by **4.7%** and **5.0%** for the three and six-month periods ended June 30, 2025, respectively, driven by increased cash base rent, with same-store leased square footage at **98.0%** Same-Store Net Operating Income (NOI) Summary (Thousand USD) | Indicator | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Total cash base rent | 63,413 | 61,235 | 126,856 | 121,605 | | Tenant reimbursements | 14,277 | 13,315 | 29,093 | 26,845 | | Property operating expenses | (14,211) | (13,945) | (29,313) | (27,863) | | **Same-Store NOI** | **63,479** | **60,605** | **126,636** | **120,587** | - For the three months ended June 30, 2025, same-store NOI increased by **4.7%** to **$63,479 thousand** year-over-year[158](index=158&type=chunk) - For the six months ended June 30, 2025, same-store NOI increased by **5.0%** to **$126,636 thousand** year-over-year[158](index=158&type=chunk) - As of June 30, 2025, same-store leased square footage was **98.0%**[158](index=158&type=chunk) [Funds From Operations (FFO)](index=32&type=section&id=Funds%20From%20Operations) Basic FFO attributable to common shareholders was **$46,698 thousand** and **$91,060 thousand**, and Adjusted Company FFO (diluted) was **$47,275 thousand** and **$93,686 thousand** for the three and six-month periods ended June 30, 2025, respectively FFO and Adjusted Company FFO Summary (Thousand USD, except per share data) | Indicator | June 30, 2025 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to common shareholders | 27,450 | 3,775 | 44,729 | 1,844 | | Real estate depreciation and amortization | 47,725 | 46,937 | 96,547 | 93,145 | | Gain (loss) on sale of real estate, net | (31,320) | (8,635) | (55,955) | (8,635) | | **Basic FFO attributable to common shareholders** | **46,698** | **44,818** | **91,060** | **91,959** | | **Diluted FFO attributable to all equity holders** | **48,380** | **46,469** | **94,441** | **95,272** | | **Adjusted Company FFO (diluted) attributable to all equity holders** | **47,275** | **46,904** | **93,686** | **95,702** | | Basic FFO per share | 0.16 | 0.15 | 0.31 | 0.32 | | Diluted FFO per share | 0.16 | 0.16 | 0.32 | 0.32 | | Adjusted Company FFO per share | 0.16 | 0.16 | 0.32 | 0.32 | - For the three months ended June 30, 2025, basic FFO attributable to common shareholders increased by **4.2%** to **$46,698 thousand** year-over-year[167](index=167&type=chunk) - For the six months ended June 30, 2025, basic FFO attributable to common shareholders decreased by **1.0%** to **$91,060 thousand** year-over-year[167](index=167&type=chunk) [Off-Balance Sheet Arrangements](index=34&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has guaranteed **$432.3 million** in non-recourse debt for certain non-consolidated entities, but management believes the likelihood of any payments under these guarantees is remote - The company has guaranteed **$432.3 million** of non-recourse debt for certain non-consolidated entities[168](index=168&type=chunk) - The company believes the likelihood of any payments under such guarantees is remote and typically has agreements with each partner requiring proportional reimbursement for any liabilities related to a guarantee trigger[168](index=168&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company primarily faces market risk from unhedged floating-rate debt and fixed-rate debt, with **$18.5 million** (1.2% of total debt) unhedged floating-rate debt and **$1.5 billion** (98.8% of total debt) fixed-rate debt as of June 30, 2025, managed through fixed-rate instruments and interest rate swaps Market Risk Disclosure Summary (Million USD, except percentages) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Unhedged floating-rate debt | 18.5 | 129.1 | | Percentage of total debt | 1.2% | 8.1% | | Fixed-rate debt | 1,500.0 | 1,500.0 | | Percentage of total debt | 98.8% | 91.9% | | Weighted-average interest rate on floating-rate debt (3 months) | 6.2% | 7.3% | | Weighted-average interest rate on floating-rate debt (6 months) | 6.3% | 7.3% | | Fair value of fixed-rate debt | 1,400.0 | - | - As of June 30, 2025, the company's unhedged floating-rate debt was **$18.5 million**, representing **1.2%** of total debt[171](index=171&type=chunk) - As of June 30, 2025, the company's fixed-rate debt was **$1.5 billion**, representing **98.8%** of total debt[171](index=171&type=chunk) - The company manages interest rate risk through the use of fixed-rate debt instruments and derivative financial instruments, such as interest rate swaps or caps[173](index=173&type=chunk) [ITEM 4. Controls and Procedures](index=35&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management assessed the effectiveness of disclosure controls and procedures as of June 30, 2025, concluding they are effective, with no material changes to internal controls during the quarter, acknowledging inherent limitations - Management assessed the effectiveness of disclosure controls and procedures as of June 30, 2025, concluding they are effective[175](index=175&type=chunk) - No material changes occurred in internal control over financial reporting during the quarter, but internal controls have inherent limitations and cannot provide absolute assurance of achieving financial reporting objectives[176](index=176&type=chunk)[177](index=177&type=chunk) [PART II — OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=36&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, including creditor claims under non-recourse guarantees, which management believes will not materially adversely affect its business, financial condition, or operating results - The company is involved in legal proceedings arising in the ordinary course of business, including creditor claims under non-recourse guarantees[178](index=178&type=chunk) - Management believes the aggregate outcome of these proceedings will not have a material adverse effect on the company's business, financial condition, and results of operations[178](index=178&type=chunk) [ITEM 1A. Risk Factors](index=36&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes occurred in the company's risk factors during the reporting period compared to those disclosed in the annual report - No material changes occurred in the company's risk factors during the reporting period compared to those disclosed in the annual report[180](index=180&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company did not repurchase any common stock during the six months ended June 30, 2025, and no Rule 10b5-1 trading arrangements were adopted or terminated by trustees or officers during the quarter - The company did not repurchase any common stock during the six months ended June 30, 2025[181](index=181&type=chunk) - No Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements were adopted or terminated by any trustee or officer of the company during the quarter[182](index=182&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=36&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable - This section is not applicable[183](index=183&type=chunk) [ITEM 4. Mine Safety Disclosures](index=36&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section is not applicable - This section is not applicable[183](index=183&type=chunk) [ITEM 5. Other Information](index=36&type=section&id=ITEM%205.%20Other%20Information) This section provides no specific information [ITEM 6. Exhibits](index=37&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with this quarterly report, including the company's articles of incorporation, trust agreement, senior note indentures, equity incentive plans, certification documents, and XBRL data files - Exhibits include the company's articles of incorporation, trust agreement, senior note indentures, equity incentive plans, certification documents, and XBRL data files[184](index=184&type=chunk)[185](index=185&type=chunk) [SIGNATURES](index=39&type=section&id=SIGNATURES) This quarterly report was formally signed by LXP Industrial Trust's CEO and President T. Wilson Eglin and CFO, Executive Vice President, and Treasurer Nathan Brunner on July 30, 2025 - This report was signed by LXP Industrial Trust's CEO and President T. Wilson Eglin and CFO, Executive Vice President, and Treasurer Nathan Brunner on July 30, 2025[187](index=187&type=chunk)

Financial Data and Key Metrics Changes - Adjusted company FFO for Q2 2025 was $0.16 per diluted common share, totaling approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.62 to $0.64 [14][20] - Same store NOI growth for Q2 was 4.7%, with the same store portfolio 98% leased at quarter end [14][15] - Net debt to adjusted EBITDA was 5.8 times at quarter end, down 0.4 turns over the last twelve months [20] Business Line Data and Key Metrics Changes - The company leased approximately 2.4 million square feet year to date, with second generation base and cash based rent spreads of approximately 41% and 46% respectively [9] - The company reached a significant milestone by leasing a 1,100,000 square foot facility in Greenville Spartanburg, contributing $3.7 million of base rent in 2025 [14][10] - Portfolio occupancy increased to 94.1% in Q2, up from 93.3% in Q1 [16] Market Data and Key Metrics Changes - Net absorption in the U.S. was approximately 30 million square feet in Q2, with 20 million square feet occurring in the company's 12 target markets [8] - The construction pipeline in the target markets is approximately 90 million square feet, down nearly 75% from the 2022 peak [9] Company Strategy and Development Direction - The company continues to focus on its investment strategy in 12 target markets, which account for approximately 85% of gross assets, emphasizing positive demographic trends and advanced manufacturing investments [12] - The company is evaluating modest capital recycling opportunities outside of target markets for reinvestment, aiming to be largely earnings neutral [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business amid a soft industrial real estate environment and uncertain macroeconomic conditions [7] - The company anticipates lower tenant retention for 2025, with year-end same store occupancy expected to be approximately 97% to 99% [10][15] Other Important Information - The company sold a property in Chillicothe, Ohio for approximately $40 million at a cash capitalization rate of 4.3%, bolstering its cash position [11] - The company has approximately $71 million in cash on the balance sheet at quarter end [20] Q&A Session Summary Question: What drove the low cap rate on the sale? - The sale execution was better than if sold into the investor marketplace, as a user wanted to own the property [23] Question: Can you provide a sense of the magnitude of dispositions in the near term? - The company would test the market with about $100 million of dispositions going forward, optimistic about creating liquidity from assets outside of target markets [25] Question: What has traffic been like for leasing up larger empty boxes? - Activity in Indianapolis has picked up significantly, while Central Florida has seen slower activity but renewed interest recently [26][29] Question: Can you provide an update on lease expirations? - The company expects to backfill the 380,000 square foot facility in Indianapolis quickly, with positive activity noted [34][35] Question: What is the outlook for tenant retention in 2026? - Strong retention is expected, with a few tenants potentially moving out, but overall positive outlook for renewals [38] Question: Are there opportunities within the land bank? - There is potential interest in build-to-suit projects, particularly in Columbus, where the market has tightened significantly [40] Question: Will the cold storage or office JV properties be considered for sale? - Those portfolios are considered static, with one potential opportunity in the office JV [46] Question: How does the company view share repurchase versus acquisitions? - The priority is to generate more EBITDA and reduce net debt to EBITDA, with share repurchase being a potential part of the strategy [50]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q2 2025 was $0.16 per diluted common share, totaling approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.62 to $0.64 [14][20] - Same store NOI growth for Q2 was 4.7%, with the same store portfolio 98% leased at quarter end [14][15] - Net debt to adjusted EBITDA was 5.8 times at quarter end, down 0.4 turns over the last twelve months [20] Business Line Data and Key Metrics Changes - The company leased approximately 2.4 million square feet year to date, with second generation base and cash based rent spreads of approximately 41% and 46% respectively [8][14] - The company achieved a significant milestone by leasing a 1,100,000 square foot development facility in Greenville Spartanburg, contributing approximately $6 million in annual cash base rent [9][14] Market Data and Key Metrics Changes - Net absorption in the U.S. was approximately 30 million square feet in Q2, with 20 million square feet occurring in the company's 12 target markets [7] - The construction pipeline in the target markets is approximately 90 million square feet, down nearly 75% from the 2022 peak [8] Company Strategy and Development Direction - The company continues to focus on its investment strategy in 12 target markets in the Sunbelt and select Lower Midwest states, which account for approximately 85% of gross assets [12] - The company is evaluating modest capital recycling opportunities outside of target markets for reinvestment, expecting to be largely earnings neutral [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business amid a soft industrial real estate environment and uncertain macroeconomic backdrop [6] - The company anticipates lower tenant retention for 2025, with year-end same store occupancy expected to be approximately 97% to 99% [10][15] Other Important Information - The company sold a property in Chillicothe, Ohio for approximately $40 million at a cash capitalization rate of 4.3%, bolstering its cash position [11] - The company has approximately $71 million of cash on the balance sheet at quarter end [20] Q&A Session Summary Question: What drove the low cap rate on the sale? - The sale execution was better than if sold into the investor marketplace, as it involved finding a user that wanted to own [23] Question: Can you provide a sense of the magnitude of dispositions in the near term? - The company would test the market with about $100 million of dispositions going forward, optimistic about creating liquidity from assets outside of target markets [24] Question: What traffic has been like for leasing up some of the larger empty boxes? - Activity in Indianapolis has picked up significantly, with several good deals signed, while Central Florida has seen renewed interest but remains slower [26][28] Question: Can you provide an update on lease expirations? - The company expects to backfill the 380,000 square foot facility in Indianapolis quickly, with good activity noted [33] Question: Any update on the land bank and build-to-suit opportunities? - There is continued interest in build-to-suit projects, particularly in Columbus, where the market has tightened significantly [39] Question: Are there any known move outs worth discussing? - The move outs were primarily due to competitive buildings offering better terms, such as tax abatements [60] Question: Is there a point where the company would consider buying back shares? - The priority is to generate more EBITDA and reduce net debt to EBITDA, with share repurchase being part of the mix if feasible [50]

Portfolio Overview - LXP Industrial Trust has gross assets of $4.8 billion and owns 116 properties, with 100% focused on industrial real estate[7] - The portfolio consists of 56.4 million square feet of space, with 48% of tenancy from investment-grade companies[8] - 92% of the portfolio is classified as Class A properties[7] - The portfolio is 94.1% leased with an average rent of $5.14 per square foot[17] Financial Performance and Growth Drivers - The company produced same-store NOI growth of 4.7%[11] - LXP extended 1.3 million square feet of leases year-to-date, increasing Base and Cash Base Rents by 41% and 46%, respectively[11] - Leases expiring through 2030 are estimated to have a ~17% current mark-to-market, potentially increasing initial annual cash rent by $32 million[15, 53] - The company repurchased $28 million of floating rate Trust Preferred Securities at a 5% discount to par[11] Strategic Focus and Market Positioning - LXP is focused on 12 target markets in the Sunbelt and lower Midwest, where population and job growth are 2.3x and 1.7x the national average, respectively[12] - There is $150 billion of advanced manufacturing investment announced in LXP's target markets[12] - The company sold one property for $40 million at a cash capitalization rate of 4.3%[11] - The company has 514 acres of development land available, including 315 acres in Phoenix[68]