LXP(US:LXP)2024-11-06 20:15Financial Performance - LXP reported net income attributable to common shareholders of $4.7 million, or $0.02 per diluted share, down from $11.0 million, or $0.04 per diluted share in Q3 2023[6]. - Adjusted Company FFO for Q3 2024 was $46.7 million, or $0.16 per diluted share, compared to $51.9 million, or $0.18 per diluted share in Q3 2023[7]. - The company reported a net income of $5.613 million for Q3 2024, significantly lower than $12.901 million in Q3 2023, reflecting a decrease in overall profitability[43]. - The company’s net income attributable to common shareholders for the nine months ended September 30, 2024, was $6.533 million, compared to $10.878 million for the same period in 2023, reflecting ongoing operational challenges[45]. - Net income attributable to common shareholders for the three months ended September 30, 2024, was $4.689 million, a decrease from $11.039 million in the same period of 2023[46]. - Funds from operations (FFO) available to common shareholders and unitholders - basic was $43.472 million for the three months ended September 30, 2024, compared to $50.299 million in the prior year, reflecting a decline of approximately 13.5%[46]. - Adjusted Company FFO available to all equityholders and unitholders - diluted was $46.707 million for the three months ended September 30, 2024, down from $51.926 million in the same period of 2023[46]. - Company Funds Available for Distribution for the three months ended September 30, 2024, was $44.138 million, compared to $47.078 million in the prior year, indicating a decrease of about 4%[46]. - Estimated Adjusted Company FFO per diluted common share for the twelve months ending December 31, 2024, is projected to be between $0.63 and $0.64[47]. - FFO diluted per share for the three months ended September 30, 2024, was $0.15, down from $0.17 in the same period of 2023[46]. Revenue and Leasing Activity - Total gross revenues for Q3 2024 were $85.6 million, a slight increase from $85.4 million in Q3 2023, primarily due to market rent increases[5]. - Rental revenue for Q3 2024 was $84.549 million, a slight increase from $83.844 million in Q3 2023, while total gross revenues reached $85.570 million compared to $85.422 million in the same period last year[43]. - Same-store NOI increased by 5.4% in Q3 2024 compared to the same period in 2023, driven by 39.1% cash rental increases on second generation leases[4]. - LXP completed new leases and lease extensions totaling 0.7 million square feet, raising Base and Cash Base Rents by 38.3% and 22.5%, respectively[2]. Asset Management and Portfolio - The company disposed of three facilities for approximately $136.7 million and acquired one facility for about $34.1 million during the quarter[3]. - LXP's stabilized portfolio was 93.2% leased as of September 30, 2024, with a total of 3.6 million square feet of new and extended leases executed[17]. - Total assets decreased to $3.854 billion as of September 30, 2024, from $4.193 billion at the end of 2023, primarily due to a reduction in cash and cash equivalents[44]. - Total liabilities decreased to $1.728 billion as of September 30, 2024, from $1.927 billion at the end of 2023, indicating improved financial leverage[44]. - The company recorded gains on sales of properties amounting to $11.050 million in Q3 2024, compared to $7.154 million in Q3 2023, showcasing effective asset management strategies[43]. Debt and Financial Strategy - LXP's total consolidated debt was $1.6 billion with a weighted-average interest rate of 3.804% as of September 30, 2024[20]. - LXP entered into forward interest rate swap agreements for $250.0 million of term loans at an average interest rate of 4.31% and $82.5 million of Trust Preferred Securities at 5.20%[18][19]. - The company emphasizes the importance of Cash Base Rent as an indicator of its ability to fund cash needs[31]. Risks and Uncertainties - Future performance may be impacted by various risks including economic conditions, competition, and supply chain disruptions[24]. - LXP's ability to achieve estimates of net income and Adjusted Company FFO for the year ending December 31, 2024, is uncertain[24]. Operational Costs - Depreciation and amortization expenses increased to $48.387 million in Q3 2024 from $45.570 million in Q3 2023, indicating rising costs associated with asset management[43]. - Non-recurring costs for the three months ended September 30, 2024, amounted to $1.538 million[46]. - The company reported no impairment charges for real estate during the three months ended September 30, 2024, compared to $16.490 million in the same period of 2023[46]. - Cash and cash equivalents dropped to $54.971 million as of September 30, 2024, down from $199.247 million at the end of 2023, highlighting liquidity challenges[44]. Investor Relations - The company has a dedicated Investor Relations team for inquiries and further information[24].