Financial Performance - Recorded net income attributable to common shareholders of $27.1 million, or $0.46 per diluted share for Q4 2025, compared to $31.4 million, or $0.54 per diluted share in Q4 2024[8] - Generated Adjusted Company FFO of $47.0 million, or $0.79 per diluted share for Q4 2025, consistent with Q4 2024[9] - Total gross revenues for Q4 2025 were $86.7 million, down from $100.9 million in Q4 2024, primarily due to a one-time rental revenue in the prior year[7] - Net income attributable to common shareholders for the twelve months ended December 31, 2025, was $106.469 million, representing a 40.0% increase from $37.922 million in 2024[50] - The company reported a net income per common share (diluted) of $0.46 for the three months ended December 31, 2025, down from $0.54 in the same period of 2024[50] - Total gross revenues for the three months ended December 31, 2025, were $86.744 million, a decrease of 14.0% compared to $100.851 million for the same period in 2024[46] - Funds from operations (FFO) available to common shareholders - basic for Q4 2025 was $32,568,000, down 45.9% from $60,037,000 in Q4 2024[52] - Adjusted Company FFO available to all equityholders - diluted for Q4 2025 was $46,957,000, slightly up from $46,951,000 in Q4 2024[52] - Company Funds Available for Distribution for Q4 2025 was $44,903,000, an increase of 3.2% compared to $43,533,000 in Q4 2024[52] - Estimated Adjusted Company FFO per diluted common share for 2026 is projected to be between $3.22 and $3.37[55] - Basic FFO per common share for Q4 2025 was $0.56, down from $1.03 in Q4 2024[52] - Diluted FFO per common share for Q4 2025 was $0.57, compared to $1.04 in Q4 2024[52] Portfolio and Leasing Activity - Same-Store NOI increased by 2.9% for the full year 2025, in line with Q4 2025 compared to the same periods in 2024[5] - Completed 2.1 million square feet of new leases and lease extensions in Q4 2025, increasing Base and Cash Base Rents by 27.4% and 22.6%, respectively[5] - Increased the Stabilized Portfolio leased percentage to 97.1% by the end of 2025[5] Debt and Assets - Total consolidated debt was $1.4 billion with a weighted-average interest rate of 3.6% as of December 31, 2025[20] - Total assets decreased to $3.537 billion as of December 31, 2025, from $3.843 billion in 2024, reflecting a decline of 7.9%[48] - Total liabilities decreased to $1.489 billion as of December 31, 2025, compared to $1.723 billion in 2024, a reduction of 13.5%[48] - Cash and cash equivalents increased to $170.394 million as of December 31, 2025, up from $101.836 million in 2024, a growth of 67.3%[48] Dispositions and Acquisitions - Completed property dispositions totaling $389.1 million in 2025, including $116.2 million in Q4 2025[5] - LXP Industrial Trust focuses on Class A warehouse and distribution investments across 12 target markets in the Sunbelt and lower Midwest[25] - The company aims to expand its portfolio through acquisitions, build-to-suit transactions, and development projects[25] Operational Insights - LXP's financial performance is evaluated using non-GAAP measures such as Funds from Operations (FFO) and Adjusted Company FFO, which exclude depreciation and amortization[36] - The company defines Net Operating Income (NOI) as operating revenues less property operating expenses, providing insight into the performance of its investments[40] - Same-Store NOI is used to highlight operating trends, excluding changes from acquired or disposed properties, and reflects occupancy levels and rental rates[41] - LXP's Cash Base Rent is adjusted to provide a meaningful indication of the ability to fund cash needs, excluding non-cash income and tenant reimbursements[33] - The company emphasizes the importance of First-Generation Costs for recently acquired properties to maintain revenue levels[35] - LXP's strategy includes managing risks related to economic conditions, competition, and supply chain disruptions that could impact performance[27] Dividend and Shareholder Returns - The company declared dividends payable of $44.715 million as of December 31, 2025, compared to $41.164 million in 2024, an increase of 8.5%[48] - LXP repurchased approximately 277,000 common shares at an average price of $49.47 per share in December 2025 and January 2026[5] - The company is committed to maintaining its status as a real estate investment trust (REIT) and managing its dividend declarations effectively[27] Depreciation and Amortization - Depreciation and amortization expenses for the twelve months ended December 31, 2025, were $196.615 million, slightly higher than $192.863 million in 2024[46] - Total depreciation and amortization for 2025 was $189,822,000, slightly up from $187,109,000 in 2024[52]

Real Estate Portfolio - As of December 31, 2025, the company had equity ownership interests in approximately 108 consolidated real estate properties, totaling approximately 52.7 million square feet of space, with a leasing rate of approximately 97.1%[21] - The average age of the company's warehouse/distribution facilities was approximately 9.9 years as of December 31, 2025[32] - The company owns interests in approximately 514 acres of developable land in target markets, aiming for higher returns through its development strategy[24] - The company focuses on 12 growing markets within the Sunbelt and lower Midwest, evaluating properties based on criteria such as population growth and employment growth[26][27] - As of December 31, 2025, the total consolidated land projects amount to $82.971 million, with 445 acres held for development[185] - The total area of the warehouse/distribution properties in the consolidated portfolio was 52,676,980 square feet, with an occupancy rate of 97.1%[178] - The total area of special purpose industrial properties in the non-consolidated portfolio is 6,538,975 square feet, with an occupancy rate of 93.6%[181] - The total area of office properties in the non-consolidated portfolio is 701,641 square feet, with an occupancy rate of 83.5%[181] Tenant and Lease Information - The largest tenant represented 6.5% of the company's annual base rent (ABR), while 47.4% of the ABR came from tenants with investment-grade credit ratings[33] - The tenant mix is diversified, with Consumer Products at 23.2%, Transportation/Logistics at 22.6%, and E-Commerce at 14.1% of the annual base rental revenue (ABR)[186] - The 15 largest tenants represent 40.6% of the total leased square footage, with Amazon contributing $18.085 million, or 6.5% of the total ABR[187] - In 2025, lease expirations are projected to impact 9.684 million square feet, accounting for 16.4% of the total ABR[189] - As of December 31, 2025, 99.3% of the company's leases had scheduled rent increases, with an average escalation rate of 2.8%[219] - A majority of the company's leases require tenants to pay operating expenses, reducing exposure to cost increases[217] Financial Performance and Strategy - The company expects to grow in its target markets by executing on its development pipeline and opportunistically acquiring facilities[31] - The company’s growth strategy may be adversely affected by trends in the real estate and financing businesses, impacting financial condition and results of operations[79] - The company has additional equity commitments of $250 million in its joint venture, with a proportionate share of $50 million for acquiring special purpose industrial properties[36] - The total consolidated indebtedness of the company was approximately $1.4 billion as of December 31, 2025, with about $600 million available for borrowing under the principal credit agreement[108] - The company has $351 million of variable rate debt, with $332.5 million subject to interest rate swap agreements through January 2027 and October 2027[112] - The company’s growth strategy is dependent on speculative development of properties, which do not produce current income for debt service obligations[110] - The company plans to prioritize development activities over acquisitions due to the higher yield potential from build-to-suit projects[211] - In 2025, the company completed 4.9 million square feet of new and extended leases, increasing base and cash base rents by 29.7% and 27.7%, respectively[218] Risk Factors - The company is subject to risks related to defaults under leases, which could significantly reduce operating cash flow and property value if a major tenant defaults[65] - A significant portion of the company's leases are long-term and do not have fair market rental rate adjustments, potentially negatively impacting income and shareholder distributions[76] - The company faces risks associated with returning properties to lenders, which could lead to significant losses if properties are foreclosed[121] - The company may face challenges in retaining tenants upon lease expiration, which could adversely affect earnings and debt service obligations[67] - Development activities are subject to risks including supply-chain disruptions and inflation, which could increase costs and delay project completion[72] - The company may face increased costs and operational disruptions due to public health emergencies and economic conditions[100] - The company is exposed to cybersecurity risks from third-party vendors, which could adversely affect operations[90] - The company’s ability to find suitable investment opportunities may be hindered, potentially slowing growth and adversely affecting financial results[84] Cybersecurity and Risk Management - The company has established an enterprise risk management framework to assess key risks, including cybersecurity[149] - The Audit and Risk Committee oversees the company's information technology and cybersecurity strategy, ensuring compliance and risk management[150] - The company employs a Director of Information Technology focused on cybersecurity matters, reporting to the Chief Operating Officer[152] - The cybersecurity program focuses on preventing, detecting, and responding to cybersecurity incidents, with a third-party provider engaged for 24/7 monitoring and periodic assessments[157][158] - The incident response plan includes designated personnel responsible for assessing, containing, and remediating cybersecurity threats, with regular reporting to senior management[156] - The company engages a third party to perform internal and external penetration tests at least annually and requires multi-factor authentication for enhanced security measures[162] - Cybersecurity insurance is maintained to cover certain costs related to cybersecurity failures and incidents, subject to specified limits and exclusions[161] Regulatory and Tax Considerations - The company is required to distribute at least 90% of its taxable income to maintain its REIT status, with potential penalties for not meeting this requirement[141] - The company faces a 100% tax on net income from prohibited transactions, which could significantly impact its financial position[140] - The company is subject to various environmental liabilities that could exceed the value of its properties and adversely affect its financial condition[133] - Changes in laws and regulations may require significant expenditures, adversely affecting the company's results of operations[137] Employee Satisfaction - The company achieved a 95% overall satisfaction rate in its employee satisfaction survey conducted in 2025, with a participation rate of 98%[51] Development Projects - The ongoing redevelopment projects include a total of 603,341 square feet, with estimated project costs of $29.65 million[184] - The redevelopment project in Orlando (100% ownership) has an estimated project cost of $9.4 million and is expected to be completed by Q3 2026[184] - The Richmond redevelopment project (100% ownership) has an estimated project cost of $3.9 million and is expected to be completed by Q2 2026[184] - The company has a total of 2 redevelopment projects with a balance of $29.286 million as of December 31, 2025[184]

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Financial Data and Key Metrics Changes - Adjusted company FFO for Q4 was $0.79 per diluted common share, totaling approximately $47 million, while for the full year, it was $3.15 per diluted common share, or $187 million [14] - The company provided 2026 adjusted company FFO guidance of $3.22-$3.37 per common share, indicating a 4.6% growth at the midpoint [15] - Net debt to adjusted EBITDA improved from 5.9 times to 4.9 times [5][21] Business Line Data and Key Metrics Changes - The company leased nearly 5 million sq ft in 2025, achieving attractive mark-to-market outcomes of approximately 28% on a cash basis, excluding fixed-rate renewals [5] - Portfolio occupancy increased to 97.1% at year-end 2025, up from 93.6% at year-end 2024 [16] - Same-store NOI growth for the full year was 2.9%, with a flat performance in Q4 compared to the same period in 2024 [16] Market Data and Key Metrics Changes - The target markets contributed over 66% of the overall U.S. net absorption of about 54 million sq ft [6] - Larger users favored facilities exceeding 500,000 sq ft built within the last 5 years, with significant demand in markets like Phoenix, Indianapolis, Fort Worth, and Houston [7] Company Strategy and Development Direction - The company plans to focus on disciplined investment and external growth opportunities, particularly in its land bank, while executing opportunistic share repurchases [10] - The development program has yielded a 7.1% weighted average stabilized yield on first-generation leases, with 15 facilities developed since 2019 [10] - A new 1 million sq ft spec project is set to break ground in Phoenix, with completion anticipated in the first half of 2027 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market fundamentals and the potential for significant value creation in the land bank [9][12] - The company is focused on leasing remaining vacancies and generating robust mark-to-market outcomes in 2026 [12] - Management noted that concessions are expected to recede as the market becomes more landlord favorable [37] Other Important Information - The company exited five non-target markets in 2025, prioritizing investments in 12 target markets that account for 87% of gross book value [8] - Total disposition volume for the year was $389 million, with an average cash capitalization rate of 5.7% on stabilized assets sold [8] - The company repaid approximately $220 million of debt in 2025, including $140 million of senior notes due 2028 [21] Q&A Session Summary Question: Inquiry about planned development in Phoenix - Management indicated that the supply-demand equation is favorable, and there is interest in the facility even before completion [27] Question: Clarification on same-store NOI growth - Management explained that the variance from guidance was primarily due to higher property expense leakage across several properties [32] Question: Discussion on concessions and market environment - Management noted that concessions are expected to decrease as the market improves, leading to a more favorable environment for landlords [37] Question: Future transaction activity and capital allocation - Management mentioned ongoing negotiations for $200 million of assets in non-target markets, which could provide capital for redeployment [39]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q4 was $0.79 per diluted common share, totaling approximately $47 million, while the full year adjusted company FFO was $3.15 per diluted common share, or $187 million [14][15] - The company reduced leverage from 5.9 times to 4.9 times net debt to adjusted EBITDA and increased occupancy by 350 basis points to 97.1% [5][16] - Same-store NOI growth for the full year was 2.9%, with flat growth in Q4 compared to the same period in 2024 [16] Business Line Data and Key Metrics Changes - Nearly 5 million sq ft was leased in 2025, with attractive mark-to-market outcomes of approximately 28% on a cash basis, excluding fixed-rate renewals [5][7] - In Q4, over 2 million sq ft was leased with base and cash rental increases of approximately 27% and 23%, respectively, excluding fixed-rate renewals [7] - The company addressed roughly 3 million sq ft, or 41% of its total 2026 rollover, achieving an average cash rental increase of approximately 28% [7] Market Data and Key Metrics Changes - The company's target markets drove over 66% of the overall U.S. net absorption of about 54 million sq ft [6] - Larger users favored facilities exceeding 500,000 sq ft built within the last 5 years, with markets like Phoenix, Indianapolis, Fort Worth, and Houston leading demand [6][7] Company Strategy and Development Direction - The company plans to focus on disciplined investment and external growth opportunities, mainly in its land bank, while executing opportunistic share repurchases [10][12] - The development program has produced 15 facilities since 2019 with a 7.1% weighted average stabilized yield on first-generation leases [10] - A new 1 million sq ft spec project is set to break ground in Phoenix, with completion anticipated in the first half of 2027 and an estimated budget of $120 million [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market fundamentals and the positive momentum associated with advanced manufacturing investments [12] - The company is focused on leasing remaining vacancies and generating robust mark-to-market outcomes in 2026 [12][24] - Management noted that while cash balances are currently weighing on earnings, liquidity is valuable for future opportunities [9] Other Important Information - The company exited five non-target markets in 2025, prioritizing investments in 12 target markets that account for 87% of gross book value [8] - Total disposition volume for the year was $389 million, including $116 million from non-target market sales in Q4 [8] - The company repaid approximately $220 million of debt in 2025, including $140 million of senior notes due 2028 [21][22] Q&A Session Summary Question: Inquiry about development plans in Phoenix - Management indicated that the supply-demand equation is favorable, and there is interest in the facility even before completion [26][27] Question: Clarification on same-store NOI growth - Management explained that the variance in same-store NOI growth was primarily driven by higher property expense leakage across several properties [32][34] Question: Discussion on transaction activity and capital allocation - Management noted that there are $200 million of assets in negotiations that could lead to good outcomes, which are not included in guidance [39][40] Question: Inquiry about cash same-store NOI guidance - Management clarified that the 3.25% contribution from contractual bumps and spreads is expected, with fixed-rate renewals potentially dragging down figures [44][46] Question: Comments on build-to-suit opportunities - Management expressed interest in the build-to-suit space, noting that the supply dynamics are encouraging, particularly in their land bank [56][57]

LXP Industrial Trust (NYSE:LXP) Q4 2025 Earnings call February 12, 2026 08:30 AM ET Speaker6Thank you for standing by. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the LXP Industrial Trust Fourth Quarter 2025 Earnings Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply pr ...

INVESTOR PRESENTATION FOURTH QUARTER 2025 LXPINDUSTRIAL TRUST Forward-Looking Statements and Other Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations, are generally identifiable by use of the words "believes," "expects," "i ...

LXP Industrial (LXP) came out with quarterly funds from operations (FFO) of $0.79 per share, missing the Zacks Consensus Estimate of $0.85 per share. This compares to FFO of $0.8 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -7.06%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.8 per share when it actually produced FFO of $0.8, delivering no surprise.Over the last four quarters, the co ...

WEST PALM BEACH, Fla., Feb. 12, 2026 (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 results for the quarter ended December 31, 2025. Fourth Quarter 2025 Highlights Recorded Net Income attributable to common shareholders of $27.1 million, or $0.46 per diluted common share.Generated Adjusted Company Funds From Operations available to all equityholders - diluted (“Adjusted Compan ...

WEST PALM BEACH, Fla., Jan. 26, 2026 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE: LXP), a real estate investment trust (REIT) focused on Class A warehouse and distribution real estate investments, today announced its final 2025 dividend income allocations for both its common and preferred shares as they will be reported on Form 1099-DIV. The Common Share amounts below are not adjusted to reflect the 1-for-5 reverse stock split completed on November 10, 2025. Additionally, the return of capital on ...