LXP(US:LXP)2023-08-02 16:40Real Estate Portfolio - As of June 30, 2023, the company had equity ownership interests in approximately 116 consolidated real estate properties, totaling approximately 54.2 million square feet, with a lease rate of approximately 99.5%[129]. - The company entered into new and extended leases encompassing 2.0 million square feet, with an average fixed rent of $7.27 per square foot for new leases[132]. - The company completed a warehouse/distribution asset in Phoenix, Arizona, with an initial capitalized cost of $37.1 million and a lease term of 10 years, achieving 100% occupancy[133]. - As of June 30, 2023, the company had six consolidated development projects in process with an estimated total cost of $425.0 million, with remaining funding obligations of approximately $77.0 million[134]. - The company expects to grow its warehouse/distribution portfolio by executing on its development pipeline and opportunistically acquiring facilities in target markets[130]. Financial Performance - Cash flows from operations for the six months ended June 30, 2023, were $92.6 million, a decrease from $95.2 million for the same period in 2022, primarily due to property sales[148]. - Total gross revenues increased by $12.1 million for the six months ended June 30, 2023, driven by a $6.8 million rise in base rental revenue and a $5.2 million increase in tenant reimbursement income[171]. - Same-store net operating income (NOI) increased by 5.6% and 5.1% for the three and six months ended June 30, 2023, respectively, with same-store properties 99.8% leased[178]. - Net income for Q2 2023 was $(7,780) thousand, a decrease from $41,538 thousand in Q2 2022, while net income for the first half of 2023 was $3,535 thousand compared to $52,446 thousand in the same period of 2022[179]. - Same-store NOI for Q2 2023 was $61,585 thousand, representing a 5.0% increase from $58,337 thousand in Q2 2022; for the first half of 2023, same-store NOI was $119,954 thousand, up 5.1% from $114,125 thousand in the first half of 2022[179]. - Funds from Operations (FFO) available to common shareholders for Q2 2023 was $51,125 thousand, a decrease from $54,338 thousand in Q2 2022; for the first half of 2023, FFO was $99,660 thousand, slightly up from $99,555 thousand in the same period of 2022[183]. Cash Flow and Investments - Net cash used in investing activities totaled $38.9 million in the six months ended June 30, 2023, a decrease from $217.1 million in the same period of 2022[149]. - Net cash used in financing activities increased to $85.0 million in the six months ended June 30, 2023, compared to $19.2 million in 2022, primarily due to dividend and debt service payments[150]. - Dividends paid to common and preferred shareholders were $76.1 million in the six months ended June 30, 2023, up from $72.7 million in 2022, with a quarterly dividend increase to $0.125 per common share[156]. - The company invested an aggregate of $27.1 million in development activities during the reporting period, including $23.4 million in six ongoing development projects[135]. Debt and Financing - The company has no mortgage maturities with balloon payments due until 2031, indicating a stable financial position[147]. - As of June 30, 2023, the company had $600.0 million available under its revolving credit facility, with no borrowings outstanding[159]. - The company reported a weighted-average interest rate of 6.7% on variable-rate indebtedness for Q2 2023, significantly higher than 2.3% in Q2 2022; this resulted in an increase in interest expense by $0.5 million if rates had risen by 100 basis points[188]. - As of June 30, 2023, the company had $1.4 billion in fixed-rate debt, representing 91.4% of total consolidated indebtedness, compared to 84.7% in the previous year[188]. - The company had four interest rate swap agreements in place as of June 30, 2023, to mitigate interest rate risk[190]. Impairment and Market Risks - Impairment charges increased by $14.7 million in the six months ended June 30, 2023, primarily related to office assets due to potential sales[174]. - The decrease in gains on sales of properties was $20.2 million for the six months ended June 30, 2023, attributed to the timing of property dispositions[175]. - Impairment charges for real estate in Q2 2023 were $12,967 thousand, compared to $1,829 thousand in Q2 2022; for the first half of 2023, impairment charges totaled $16,490 thousand versus $1,829 thousand in the same period of 2022[183]. - The company's exposure to market risk is primarily related to its variable-rate indebtedness and fixed-rate debt[188].