Financial Data and Key Metrics Changes - Adjusted company FFO for Q1 2025 was $0.16 per diluted common share, totaling approximately $46 million, consistent with expectations [13] - Same store NOI growth was 5.2% during the quarter, with the same store portfolio 99.2% leased at quarter end [13] - The company maintains its 2025 same store NOI growth range of 3% to 4% and adjusted company FFO range of $0.61 to $0.65 per diluted common share [13] Business Line Data and Key Metrics Changes - The company leased approximately 1,100,000 square feet in Q1 2025, including two lease extensions with an average annual escalator of 3.6% [14] - Significant lease renewals included a five-year renewal in Phoenix with a 59% cash rental increase and a two-year extension in Atlanta with 4% escalators [14] Market Data and Key Metrics Changes - US net absorption was 23 million square feet in Q1 2025, with 19 million square feet in the company's 12 target markets [8] - The construction pipeline in the 12 target markets is approximately 87 million square feet, down nearly 75% from the 2022 peak of 330 million square feet [8] Company Strategy and Development Direction - The company focuses on increasing occupancy, enhancing returns, and executing a 12-market investment strategy in the Sunbelt and Lower Midwest [7] - The investment strategy is concentrated in markets with favorable demographics, employment, and population growth exceeding the national average [10] - The company has opportunistically sold two industrial assets for approximately $75 million at an average cash capitalization rate of 4.1% [11] Management's Comments on Operating Environment and Future Outlook - Management remains cautious in the near term due to trade policy uncertainties affecting tenant decisions, but leasing outcomes have been favorable [9] - The company believes its asset quality, tenant credit strength, and portfolio footprint align with onshoring initiatives, positioning it well for future growth [19] Other Important Information - The company repaid $50 million of the unswapped portion of a $300 million term loan, with a net debt to adjusted EBITDA ratio of 5.9 times at quarter end [16] - Approximately 47% of the company's ABR comes from tenants with investment-grade rated parent companies, indicating high credit quality [17] Q&A Session Summary Question: Known move outs and headwinds for future expirations - Management indicated it is too early to tell about known move outs for 2026 and 2027, but they are optimistic about tenant renewals due to high-quality properties [21][22] Question: Current yields and rents for large boxes - There has been slight markdown in market rents, but overall, face rates have remained stable with increased tenant improvements and concessions [24][26] Question: Future disposition plans - The company is currently on pause regarding disposition activity due to market uncertainty but has a long-term objective to concentrate on the 12 target markets [27][28] Question: Impact of redevelopment on guidance - The redevelopment project was anticipated and excluded from same store NOI growth guidance, with no impact on Q1 results [32][33] Question: Expected yield following redevelopment - The expected yield on the redevelopment is projected to be in the mid-teens, with significant incremental rent anticipated [36] Question: Market excitement for leasing spreads - Management expressed optimism about the Sunbelt markets, particularly in Dallas and Phoenix, for potential mark-to-market opportunities [41] Question: Demand from larger e-commerce players - There is increased activity from major retailers, including Amazon, which could positively impact leasing for the company's large boxes [46]

LXP Industrial Trust (LXP) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good morning. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the LXP Industrial Trust First Quarter twenty twenty five Earnings Call and Webcast. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question and answer session. With that, I'm pleased to turn our call over to Heather Gentry, Ex ...

Company Performance - LXP Industrial reported quarterly funds from operations (FFO) of $0.16 per share, matching the Zacks Consensus Estimate and remaining unchanged from the previous year [1] - The company posted revenues of $88.86 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.14% and up from $86.25 million a year ago [2] - Over the last four quarters, LXP Industrial has not surpassed consensus FFO estimates, but it has topped revenue estimates three times [2][1] Stock Outlook - The immediate price movement of LXP Industrial's stock will largely depend on management's commentary during the earnings call and future FFO expectations [3][4] - LXP Industrial shares have declined approximately 2.8% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The current consensus FFO estimate for the upcoming quarter is $0.16 on revenues of $85.95 million, and for the current fiscal year, it is $0.63 on revenues of $345.85 million [7] Industry Context - The REIT and Equity Trust - Residential industry, to which LXP Industrial belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can impact LXP Industrial's performance [5][6]

Portfolio Highlights - LXP Industrial Trust has gross assets of $4.9 billion[7] - The portfolio consists of 118 properties[7] and is 100% industrial real estate[7] - Approximately 85% of the portfolio is concentrated in 12 target markets[7, 31] - Around 91% of the properties are classified as Class A[7] Financial Performance & Growth Drivers - The company achieved same-store NOI growth of 5.2% in the first quarter of 2025[14] - Leases expiring through 2030 have an estimated mark-to-market opportunity of approximately 18%[17, 53, 63] - The average annual rental escalators are trending up, with a rate of 2.8%[17, 58] and 3.6% on leases signed in 2025[53, 58] - The company estimates $25 million in initial annual cash rent from available leases, equivalent to $0.08 per share or 13% of FFO[53] Balance Sheet & Strategy - LXP's leverage stands at 5.9x Net Debt to Adjusted EBITDA[14, 71, 107] - The company sold one property for approximately $35 million at a cash capitalization rate of 3.8%[14] and another for ~$40 million at a cash capitalization rate of 4.3%[14]

Core Insights - LXP Industrial Trust reported strong first quarter results for 2025, highlighting a leasing volume of 1.1 million square feet and a same-store NOI growth of 5.2% [3][4] - The company generated total gross revenues of $88.9 million, an increase from $86.3 million in the same quarter of 2024, driven by acquisitions, rent increases, and stabilized development projects [4] - LXP's net income attributable to common shareholders was $17.3 million, or $0.06 per diluted share, a significant recovery from a net loss of $(1.9) million, or $(0.01) per diluted share, in the prior year [5][46] - The company declared a regular quarterly common share dividend of $0.135 per share, paid on April 15, 2025 [7] Financial Performance - Total gross revenues for Q1 2025 were $88.9 million, up from $86.3 million in Q1 2024, primarily due to revenue from acquisitions and rent increases [4] - Net income attributable to common shareholders was $17.3 million, compared to a net loss of $(1.9) million in the same quarter of 2024 [5] - Adjusted Company FFO for Q1 2025 was $46.4 million, or $0.16 per diluted share, slightly down from $48.8 million, or $0.16 per diluted share, in Q1 2024 [6][49] Leasing and Occupancy - LXP achieved a leasing volume of 1.1 million square feet in Q1 2025, with a same-store NOI growth of 5.2% compared to the same period in 2024 [3][9] - The stabilized portfolio was 93.3% leased as of March 31, 2025, with a notable lease extension of 540,000 square feet that increased Base and Cash Base Rents by 52.5% and 58.9%, respectively [16][9] Asset Management and Transactions - The company disposed of a warehouse facility for gross proceeds of $35.0 million and another for $39.6 million, with capitalization rates of 6.9% and 4.5%, respectively [10][11] - LXP is focused on a 12-market investment strategy in the Sunbelt and Lower Midwest, which accounts for 85% of its gross assets [3] Debt and Guidance - LXP ended the quarter with a net debt to Adjusted EBITDA ratio of 5.9x and repaid $50.0 million of its $300.0 million term loan [17] - The company estimates net income attributable to common shareholders for the year ending December 31, 2025, will be in the range of $0.12 to $0.16 per diluted common share, reaffirming its expectation for Adjusted Company FFO to be between $0.61 and $0.65 per diluted common share [18][50]

WEST PALM BEACH, Fla., April 03, 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 first quarter 2025 financial results the morning of Thursday, May 1, 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 Call: ...

Core Insights - Albert Anthony is a Croatian-American media personality active on investor platforms, focusing on markets and stocks, with a growing follower base of over 1,000 since 2023 [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing article series on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in a top-10 financial firm's IT department [1] Company Profile - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, and is wholly owned by Albert Anthony [1] - The company does not provide personalized financial advisory services but offers general market commentary based on publicly available data [1] Investment Focus - Albert Anthony has launched the Future Investor Fund, which aims to build a dividend portfolio [1] - The company emphasizes the importance of due diligence for investors, indicating that all investments carry risk [1]

Financial Performance - Recorded net income attributable to common shareholders of $31.4 million, or $0.11 per diluted common share for Q4 2024, compared to $13.0 million, or $0.04 per diluted common share in Q4 2023[8]. - Total gross revenues for Q4 2024 were $100.9 million, compared to $83.0 million in Q4 2023, primarily due to additional rental revenue and acquisitions[7]. - Net income attributable to common shareholders for Q4 2024 was $31,389,000, a significant increase of 142.5% from $12,985,000 in Q4 2023[51]. - The net income per common share (diluted) for Q4 2024 was $0.11, compared to $0.04 in Q4 2023, representing a 175% increase[51]. - Total gross revenues for the twelve months ended December 31, 2024, increased to $358,458,000, compared to $340,503,000 for the same period in 2023, reflecting a growth of 5.3%[47]. - Funds from operations (FFO) available to common shareholders was reported at $XX million, representing a YY% increase from the prior year, highlighting improved operational efficiency[39]. - Funds from operations (FFO) available to common shareholders - diluted for Q4 2024 was $61,679 million, compared to $51,217 million in Q4 2023, reflecting an increase of 20.4%[54]. - Adjusted Company FFO available to all equityholders - diluted for Q4 2024 was $46,951 million, down from $51,352 million in Q4 2023, a decrease of 8.3%[54]. - Company Funds Available for Distribution for Q4 2024 was $43,533 million, slightly lower than $44,417 million in Q4 2023, a decrease of 2.0%[54]. Operational Highlights - Generated Adjusted Company Funds From Operations (FFO) of $47.0 million, or $0.16 per diluted common share for Q4 2024, down from $51.4 million, or $0.17 per diluted common share in Q4 2023[10]. - Increased Same-Store Net Operating Income (NOI) by 5.0% compared to 2023[9]. - Same-Store NOI increased by YY%, demonstrating positive trends in occupancy levels and rental rates across stabilized properties[43]. - Completed 4.5 million square feet of new leases and lease extensions in 2024, raising Base and Cash Base Rents by 46.5% and 39.7%, respectively[6]. - Rental revenue for Q4 2024 was $99,829,000, up 21.9% from $81,894,000 in Q4 2023[47]. - LXP's stabilized portfolio is expected to maintain an occupancy rate of at least 90%, contributing to consistent revenue generation[45]. Acquisitions and Dispositions - Acquired four warehouse facilities for an aggregate cost of $157.6 million[5]. - Disposed of four warehouse facilities for an aggregate gross price of $165.3 million in 2024[9]. - The company is focusing on market expansion through strategic acquisitions, with plans to invest $XX million in new properties over the next fiscal year[4]. - LXP has allocated $XX million for second generation costs to enhance existing properties, ensuring sustained revenue levels[44]. Financial Guidance and Projections - 2025 earnings guidance estimates net income attributable to common shareholders to be within $0.01 to $0.05 per diluted common share and Adjusted Company FFO to be within $0.61 to $0.65 per diluted common share[25]. - The company anticipates achieving net income attributable to common shareholders of $XX million for the year ending December 31, 2025, reflecting optimistic future growth expectations[4]. - Estimated Adjusted Company FFO per diluted common share for 2025 is projected to be between $0.61 and $0.65[58]. Debt and Financial Position - LXP's total consolidated debt was $1.6 billion at quarter end, with a net debt to Adjusted EBITDA ratio of 5.9x[24]. - Total assets as of December 31, 2024, were $3,843,312,000, down from $4,192,775,000 in 2023, indicating a decrease of 8.3%[49]. - Total liabilities decreased to $1,722,529,000 in 2024 from $1,927,318,000 in 2023, a reduction of 10.6%[49]. - Cash and cash equivalents decreased to $101,836,000 in 2024 from $199,247,000 in 2023, a decline of 48.9%[49]. - The company’s accumulated distributions in excess of net income increased to $(1,316,993,000) in 2024 from $(1,201,824,000) in 2023, reflecting a growing deficit[49]. Management and Strategic Focus - LXP's management remains committed to maintaining its status as a real estate investment trust (REIT), with ongoing evaluations of dividend declarations and financial strategies[1]. - The company is actively monitoring economic conditions and potential risks, including inflation and supply chain disruptions, which could impact future performance[1]. - The company reported impairment charges of $295 million for real estate in Q4 2024, a significant decrease from $1,369 million in Q4 2023[54]. - Preferred dividends for the twelve months ended December 31, 2024, remained constant at $6,290 million compared to 2023[54].

Debt and Interest Rates - As of December 31, 2024, the company's consolidated aggregate principal variable-rate indebtedness not subject to interest rate swaps was $46.6 million, representing 2.9% of total indebtedness[312]. - The weighted-average interest rate for variable-rate indebtedness was 7.2% for 2024, compared to 6.8% for 2023[312]. - The company's aggregate principal consolidated fixed-rate debt was $1.5 billion as of December 31, 2024, representing 97.1% of total indebtedness[312]. - If the weighted-average interest rate had been 100 basis points higher, interest expense would have increased by $1.2 million for 2024[312]. - The fair value of the company's fixed-rate debt was estimated at $1.4 billion as of December 31, 2024[313]. - The company had 11 interest rate swap agreements in place as of December 31, 2024, with expiration dates ranging from January 2025 to October 2027[314]. - The Company utilizes interest rate swap agreements to manage interest rate risk, with fair values recorded on the balance sheet[389]. - The total interest expense recorded in the consolidated statements of operations was $66,477 for 2024, compared to $46,389 for 2023[474]. Financial Performance - Total gross revenues for 2024 increased to $358.458 million, up 5.4% from $340.503 million in 2023[340]. - Rental revenue rose to $354.353 million in 2024, compared to $334.220 million in 2023, reflecting a growth of 6.0%[340]. - Net income attributable to common shareholders for 2024 was $37.922 million, a significant increase of 58.8% from $23.863 million in 2023[340]. - Comprehensive income attributable to LXP Industrial Trust shareholders for 2024 was $41.187 million, compared to $22.177 million in 2023, an increase of 85.7%[343]. - The company reported a depreciation and amortization expense of $192.863 million in 2024, up from $183.524 million in 2023[340]. - Basic earnings per share for 2024 was $0.13, compared to $0.08 in 2023[404]. - The Company recognized sales-type lease income of $22,027,000 in 2024, significantly higher than $7,427,000 in 2023, reflecting a growth of 196.5%[441]. Assets and Liabilities - Total assets decreased to $3.843 billion in 2024 from $4.193 billion in 2023, a decline of 8.3%[338]. - Total liabilities reduced to $1.723 billion in 2024, down from $1.927 billion in 2023, representing a decrease of 10.6%[338]. - The company's total shareholders' equity decreased to $2.098 billion in 2024 from $2.232 billion in 2023, a decline of 6.0%[338]. - The total assets of consolidated variable interest entities (VIEs) were $392,791 as of December 31, 2024, down from $626,442 in 2023, representing a decrease of approximately 37.3%[362]. - Total liabilities for consolidated VIEs decreased to $8,603 as of December 31, 2024, from $19,549 in 2023, a reduction of approximately 56.0%[362]. Shareholder Information - The company declared dividends of $0.525 per common share, totaling $164.084 million in 2024[346]. - The company declared dividends/distributions of $0.505 per common share, totaling $160,470,000 for 2023[351]. - Total dividends per share increased to $0.52 in 2024 from $0.50 in 2023 and $0.48 in 2022[506]. - The Company had 1,935,400 shares of Series C Preferred Stock outstanding as of December 31, 2024, with a dividend of $3.25 per share[483]. - The Company did not repurchase any common shares during 2024 and 2023, with 6,874,241 shares remaining available for repurchase under the authorization[482]. Real Estate and Investments - The company had ownership interests in approximately 119 consolidated real estate properties located in 17 states as of December 31, 2024[356]. - The Company capitalizes direct and indirect project costs associated with property construction until the property is stabilized, which is defined as 90% occupancy or one year from major construction cessation[380]. - The Company evaluates the carrying value of real estate assets for possible impairment when events indicate that the carrying value may not be recoverable[374]. - The Company recognized no impairment charges in 2024, while it recorded impairment charges of $16,490 and $3,037 in 2023 and 2022, respectively[418]. - The total cost of real estate investments in 2024 amounted to $4,583,512, compared to $4,488,862 in 2023, indicating an increase of about 2.1%[406]. Taxation - The provision for income taxes for 2024 was $127,000, compared to a negative provision of $(703,000) in 2023[504]. - The total income tax provision for 2024 is $127 million, a significant increase from a provision of $(703) million in 2023 and $(1,102) million in 2022[505]. - The federal provision at the statutory tax rate (21%) for 2024 is $77 million, compared to $71 million in 2023 and $18 million in 2022[505]. - The estimated net operating loss carry forward for income tax reporting purposes is $789 million for 2024, up from $423 million in 2023[506]. Cash Flow and Capital Expenditures - Cash provided by operating activities for 2023 was $211,187,000, slightly up from $209,446,000 in 2022[353]. - The company reported a net cash used in investing activities of $86,403,000 in 2023, compared to a net cash used of $183,451,000 in 2022[353]. - The company made capital expenditures of $17,782,000 in 2023, consistent with $17,937,000 in 2022[353]. - The Company incurred $5,947 related to infrastructure development costs at the Reems & Olive project, recorded in investments in real estate under construction[414]. Miscellaneous - The Company operates in one segment focused on single-tenant real estate assets[399]. - As of December 31, 2024, the Company was not aware of any environmental matters that would materially impact the consolidated financial statements[398]. - The Company has made an election to qualify as a REIT for federal income tax purposes, generally avoiding federal income tax[392]. - The Company adopted ASC 326 on January 1, 2020, which requires measuring and recording current expected credit losses for investments[385].

Financial Data and Key Metrics Changes - Total gross revenues in Q4 were approximately $101 million, including $15 million from a sales-type lease due to the exercise of a purchase option at the Phoenix ground lease asset [28] - Adjusted company FFO for Q4 was $0.16 per diluted common share, with full year 2024 adjusted company FFO at $0.64 per diluted common share [29] - Same-store NOI increased by 4.1% in Q4 compared to the same period in 2023, with a year-end same-store portfolio occupancy of 99.5% [31] Business Line Data and Key Metrics Changes - Leasing volume in Q4 reached nearly 1 million square feet, with base and cash-based rental increases of approximately 66% and 43% respectively, excluding fixed-rate renewals [7] - The company completed 4.5 million square feet of leasing volume for the year, achieving strong same-store NOI growth of 5% [9] - Average annual escalators reached 2.8% at year-end, indicating a positive trend in rental growth [9] Market Data and Key Metrics Changes - The markets primarily operated in, such as the Sunbelt and Lower Midwest, showed more resilient industrial fundamentals compared to select coastal markets [12] - U.S. manufacturing activity expanded in January after 26 consecutive months of contraction, indicating a potential recovery in the industrial sector [13] - National vacancy rates ticked up slightly in Q4 but are expected to peak by mid-2025, with average national asking rents showing slight increases [22] Company Strategy and Development Direction - The company plans to focus on reducing leverage over time by growing EBITDA through leasing vacant assets and increasing rents with annual escalators [10] - The strategy includes a cautious optimism for 2025, with expectations of improved industrial fundamentals and a focus on resolving remaining vacancies [12][15] - The company aims to capitalize on build-to-suit opportunities and maintain a core portfolio positioned in markets benefiting from long-term demographic trends and advanced manufacturing investments [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, noting increased tenant interest and improved leasing activity in early 2025 [12] - The company acknowledged the uncertain environment but highlighted the positive factors of below-market rents and a predominantly Class A portfolio [13] - Full year 2025 adjusted company FFO guidance is set between $0.61 and $0.65 per diluted common share, reflecting the impact of big box leasing on funds from operation [14] Other Important Information - The company sold its remaining consolidated office assets and opportunistically divested four industrial assets, resulting in considerable value creation [8] - The company’s total consolidated debt outstanding was approximately $1.6 billion with a weighted average interest rate of 3.68% [31] - G&A expenses for Q4 were approximately $10 million, with expectations for 2025 G&A to be in the range of $39 million to $41 million [30] Q&A Session Summary Question: Can you elaborate on the larger box developments and the environment? - Management noted increased activity in January compared to the previous year, with a broad range of tenants showing interest, including construction and e-commerce [35][38] Question: What is the competitive landscape for your development projects? - Management indicated that competition for large buildings is limited, with only a few competitors in specific submarkets [48] Question: What are the expectations for tenant retention and lease expirations? - Management acknowledged known move-outs and expressed conservatism regarding tenant retention, with expectations for strong mark-to-market on certain assets [42][43] Question: Can you discuss the near-term capital allocation plan? - The company plans to focus on core markets for capital allocation, with an emphasis on build-to-suit projects and reducing leverage [52] Question: How do you see the guidance for 2025 in relation to leasing activity? - Management confirmed that the low end of guidance assumes no leasing of recently developed properties, while the higher end anticipates more activity in the second half of the year [55]