Core Insights - LXP Industrial Trust reported solid financial performance for Q2 2025, with significant growth in funds from operations (FFO) and same-store net operating income (NOI) [3][4][6] - The company achieved a milestone by leasing a 1.1 million square foot facility, expected to contribute approximately $3.7 million to FFO in 2025 [3] - LXP sold an industrial asset at a 4.3% cash capitalization rate and used part of the proceeds to repurchase $28 million of floating-rate Trust Preferred Securities at a 5% discount to par value, enhancing its financial position [3][4] Financial Results - Total gross revenues for Q2 2025 were $87.7 million, up from $85.8 million in Q2 2024, driven by acquisitions, rent increases, and stabilized development projects [4] - Net income attributable to common shareholders was $27.5 million, or $0.09 per diluted share, compared to $3.8 million, or $0.01 per diluted share in the same quarter last year [5] - Adjusted Company FFO for Q2 2025 was $47.3 million, or $0.16 per diluted share, slightly up from $46.9 million, or $0.16 per diluted share in Q2 2024 [6] Dividends - LXP declared a regular quarterly common share dividend of $0.135 per share for Q2 2025, paid on July 15, 2025 [7] - A cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock was also declared, expected to be paid on August 15, 2025 [8] Leasing Activity - The company executed new leases totaling 1.1 million square feet and extended leases for 1.3 million square feet, with significant increases in Base and Cash Base Rents of 41.5% and 46.2%, respectively [15][16] - As of June 30, 2025, LXP's stabilized portfolio was 94.1% leased, and 98.4% leased excluding first-generation space available for lease [16] Balance Sheet and Debt Management - LXP ended the quarter with a net debt to Adjusted EBITDA ratio of 5.8x and total consolidated debt of $1.5 billion, with a weighted-average interest rate of 3.9% [17][18] - The company repurchased $28.1 million of Trust Preferred Securities at a 5% discount to par value, further reducing leverage [17] 2025 Earnings Guidance - LXP estimates net income attributable to common shareholders for the year ending December 31, 2025, to be in the range of $0.13 to $0.15 per diluted common share [19] - The company tightened its estimated Adjusted Company FFO for the year to a range of $0.62 to $0.64 per diluted common share [19]

Company Overview - LXP Industrial Trust is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and Midwest [5] - The company aims to expand its portfolio through acquisitions, development projects, and build-to-suit and sale/leaseback transactions [5] Upcoming Financial Results - LXP will release its second quarter 2025 financial results on the morning of Wednesday, July 30, 2025 [1] - A conference call and webcast will be held on the same day at 8:30 a.m. Eastern Time to discuss these results [1] Access Information - Participants can access the conference call by dialing (888) 660-6082 or (929) 201-6604 for international calls, using Conference ID: 1576583 [1] - The webcast can be accessed at https://events.q4inc.com/attendee/363726824 [1] Replay Information - A telephone replay of the call will be available through August 6, 2025, and via webcast for one year [2] - The replay can be accessed by calling (800) 770-2030 or (609) 800-9909 for international calls, using Access Code: 1576583 [2]

Group 1 - The article discusses the reconsideration of preferred stocks, particularly REIT preferreds, due to improved spreads, with a focus on those yielding over 6.5% [1] - LXP Industrial Trust is specifically mentioned as a potential investment opportunity within the REIT preferreds category [1]

Summary of LXP Industrial Trust Conference Call Company Overview - **Company**: LXP Industrial Trust (LXP) - **Focus**: Warehouse and distribution facilities in 12 markets, primarily in the Lower Midwest and Sunbelt regions, characterized by strong logistics infrastructure and favorable demographics [3][4] Core Business Strategy - **Portfolio Characteristics**: - Less than 10 years old, modern facilities - Approximately 50% of tenants are investment grade [4] - **Market Positioning**: - Aligns with reshoring initiatives in the U.S. due to favorable market attributes [3] - **Recent Developments**: - Successful exit from the office business, leading to improved operational metrics [5] Financial Performance - **Leasing Metrics**: - Annual rental escalations at 2.8% through February 2030 - Current rents are approximately 18% below market, providing opportunities for revenue growth [6] - **Recent Lease Success**: - A significant lease in Greenville, South Carolina, achieved an 8% development yield, indicating strong market performance [8][11] Market Dynamics - **Tenant Behavior**: - Three categories observed: 1. Pull forward to mitigate tariff risks 2. Pausing decisions due to uncertainty 3. Continuing operations despite macroeconomic concerns [17] - **E-commerce and Onshoring Trends**: - Anticipated demand growth from major investments like Taiwan Semiconductor and Hyundai, indicating future leasing opportunities [20][21] Development and Future Projects - **Current Projects**: - Large projects in Indianapolis and Central Florida, with recent activity picking up in Indianapolis [24][25] - **Future Development Strategy**: - Preference for build-to-suit projects to minimize leasing risk, with plans to utilize a land bank of over 500 acres for future developments [28] Supply and Demand Trends - **Supply Growth**: - Current supply is constrained, with a significant reduction in new developments expected to tighten market conditions [30] - **Market Outlook**: - Anticipated tightening of supply-demand dynamics over the next 12-24 months [31] Financial Health and Strategy - **Leverage and Payout Ratio**: - Current leverage at 5.9 times, with a goal to reduce it to around 5 times [47] - Conservative payout ratio, with potential for dividend growth as AFFO increases [48] Investment Focus - **Target Markets**: - 75% of the portfolio in Sunbelt markets, with a strong focus on Phoenix, Houston, and Dallas due to favorable logistics and population growth [50][54] - **Tenant Credit Quality**: - High percentage of investment-grade tenants as a byproduct of the focus on newly constructed properties [55] Conclusion - LXP Industrial Trust is well-positioned for future growth with a strong portfolio, favorable market dynamics, and a strategic focus on high-quality tenants and development opportunities. The company anticipates continued operational outperformance and is optimistic about its growth trajectory in the coming years [8][56]

Group 1 - The article discusses the volatility in the market, highlighting that even traditionally 'safe stocks' like Apple (AAPL) have shown instability due to current tariff environments [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offered by iREIT+HOYA Capital is aimed at investors looking for income-focused portfolios [1] Group 2 - The article emphasizes the importance of defensive stocks for medium- to long-term investment horizons [2] - It mentions that past performance is not indicative of future results, suggesting a cautious approach to investment decisions [5] - The article does not provide specific investment advice, encouraging readers to conduct their own due diligence [4]

WEST PALM BEACH, Fla., May 21, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE: LXP), a real estate investment trust (REIT) focused on Class A warehouse and distribution investments, today announced that it executed a lease for its approximately 1.1 million square foot industrial facility in the Greenville/Spartanburg, South Carolina market. The lease to a U.S. subsidiary of a global logistics company commences on June 1, 2025, for a two-year term, with two five-year renewal options, and an init ...

Core Viewpoint - LXP Industrial Trust held its first quarter 2025 earnings call, discussing financial results and future expectations [3]. Group 1: Earnings Call Overview - The earnings release was distributed on the morning of the call, with both the release and quarterly supplemental available on the company's website [3]. - The call included a question and answer session following the speaker's remarks, indicating engagement with investors [1]. Group 2: Forward-Looking Statements - The company noted that certain statements made during the call may constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995 [3]. - LXP believes these forward-looking statements are based on reasonable assumptions, but acknowledges that various factors and risks could cause actual results to differ materially from those expressed [4].

Financial Performance - Total gross revenues for Q1 2025 were $88.9 million, up from $86.3 million in Q1 2024, representing a growth of 3.0%[5] - Net income attributable to common shareholders was $17.3 million, or $0.06 per diluted share, compared to a net loss of $(1.9) million, or $(0.01) per diluted share in Q1 2024[7] - Adjusted Company Funds From Operations (FFO) for Q1 2025 were $46.4 million, or $0.16 per diluted share, compared to $48.8 million, or $0.16 per diluted share in Q1 2024[8] - LXP's 2025 earnings guidance estimates net income attributable to common shareholders to be in the range of $0.12 to $0.16 per diluted share[18] - Net income attributable to common shareholders for Q1 2025 was $17,279,000, compared to a loss of $1,931,000 in Q1 2024, resulting in a basic and diluted earnings per share of $0.06[45] - Funds from operations (FFO) available to common shareholders for Q1 2025 was $44,363,000, down from $47,141,000 in Q1 2024, with diluted FFO per share at $0.16, unchanged from the previous year[47] Operational Metrics - Same-store Net Operating Income (NOI) increased by 5.2% compared to the same period in 2024[6] - The stabilized portfolio was 93.3% leased as of March 31, 2025, with 99.5% leased excluding first-generation space[16] - Same-Store NOI is used to highlight operating trends such as occupancy levels and rental rates, excluding changes from acquired or disposed properties[37] Real Estate Transactions - A 540,000 square foot lease extension was completed, increasing Base and Cash Base Rents by 52.5% and 58.9%, respectively[6] - LXP disposed of one warehouse facility for gross proceeds of $35.0 million and another for $39.6 million[6][12] - LXP reported a gain on the sale of real estate amounting to $24.635 million in Q1 2025[41] - The company reported a gain on the sale of real estate of $(24,635,000) in Q1 2025, with no such gain reported in Q1 2024[47] Financial Position - Cash and cash equivalents decreased to $70.935 million as of March 31, 2025, down from $101.836 million at the end of 2024[43] - Real estate, net value as of March 31, 2025, was $3.479 billion, a decrease from $3.536 billion at the end of 2024[43] - Total liabilities decreased to $1.663 billion as of March 31, 2025, from $1.723 billion at the end of 2024[43] - The company repaid $50.0 million of its $300.0 million term loan, with total consolidated debt at $1.5 billion[17] Shareholder Information - The weighted-average common shares outstanding increased to 291.706 million in Q1 2025 from 291.288 million in Q1 2024[41] - The weighted-average number of common shares outstanding for basic FFO was 291,706,064 in Q1 2025, compared to 291,288,383 in Q1 2024[47] - The company allocated $1,572,000 for preferred dividends in both Q1 2025 and Q1 2024[47] Future Projections - The estimated adjusted company FFO per diluted common share for the twelve months ending December 31, 2025, is projected to be between $0.61 and $0.65[49] - The company expects the impact of capital transactions to be $(0.19) per diluted common share for the year ending December 31, 2025[49] Depreciation and Amortization - Depreciation and amortization for real estate increased to $48,822,000 in Q1 2025 from $46,208,000 in Q1 2024[47] - The allowance for credit loss was reported as $0 in Q1 2025, compared to a loss of $(5,000) in Q1 2024[47]

Real Estate Portfolio - As of March 31, 2025, the company had equity ownership interests in approximately 118 consolidated real estate properties, totaling approximately 57.3 million square feet of rentable space, with a lease rate of approximately 93.3%[106]. - The company entered into lease extensions encompassing 1.1 million square feet, with an average fixed rent increase from $6.37 to $7.85 per square foot[109]. - Same-store square footage leased was 99.2% as of March 31, 2025, compared to 98.9% in 2024[137]. Financial Performance - Cash flows from operations for the three months ended March 31, 2025, were $39.0 million, a slight increase from $38.9 million in the same period in 2024, primarily due to increased rental revenue[116]. - Dividends paid to common and preferred shareholders were $41.0 million for the three months ended March 31, 2025, compared to $39.5 million in the same period in 2024[122]. - Net income attributable to common shareholders for the three months ended March 31, 2025, was $17.279 million, compared to a net loss of $1.931 million in 2024[146]. Revenue and Expenses - The increase in rental revenue of $2.7 million was primarily due to properties placed in service and acquisitions, offset by a decrease of $5.7 million due to property sales and vacancies[131]. - Same-store net operating income (NOI) increased by 5.2% for the three months ended March 31, 2025, compared to the same period in 2024, reaching $63.586 million, driven by an increase in cash base rents[137]. - Total cash base rent for the three months ended March 31, 2025, was $64.080 million, up from $60.992 million in 2024[137]. Debt Management - The company repaid $50.0 million of its $300.0 million term loan, resulting in a loss on debt satisfaction of $0.4 million[112][124]. - The company had secured debt of $53.6 million as of March 31, 2025, down from $54.9 million at the end of 2024[115]. - The company's aggregate principal variable-rate indebtedness not subject to interest rate swaps was $46.6 million as of March 31, 2025, representing 3.0% of total indebtedness[150]. - The weighted-average interest rate on variable-rate indebtedness was 6.3% for the three months ended March 31, 2025[150]. - The fair value of the company's fixed-rate indebtedness was estimated at $1.4 billion as of March 31, 2025[151]. Other Financial Activities - The company disposed of one facility for a gross sale price of $35.0 million in a non-target market[111]. - The company did not sell any shares under its At-The-Market offering program during the three months ended March 31, 2025[119]. - Interest and amortization expense decreased by $0.7 million, primarily due to a $2.2 million decrease in interest expense related to the 2024 Senior Notes that were repaid in full[134]. - The company expects to incur approximately $41.0 million in additional costs for its consolidated development project commitments[129]. - The company guaranteed obligations for certain non-consolidated entities with respect to $432.3 million of non-recourse debt[147].

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]