LXP(LXP) - 2025 Q4 - Annual Results

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]