PART I Business Overview LXP Industrial Trust is a Maryland REIT focused on single-tenant warehouse/distribution properties, primarily net-leased, with a portfolio of approximately 115 consolidated properties totaling 54.6 million square feet and 99.8% occupancy as of December 31, 2023 - The company focuses on investing in single-tenant warehouse/distribution properties, primarily utilizing a net-lease model where tenants bear most operating costs21 - The company's strategy emphasizes acquiring and developing warehouse/distribution properties in target markets like the Sunbelt and Midwest to balance income and capital appreciation, while mitigating development risks and costs through developer partnerships262729 - The company invests through institutional joint ventures, such as NNN Office JV L.P. and NNN MFG Cold JV L.P., to diversify risk and generate related fees333435 - The company is committed to ESG+R (Environmental, Social, Governance, and Resilience) initiatives, enhancing company and shareholder value by tracking utility data, implementing green building certifications, providing employee training, and supporting community activities5660636973 Consolidated Real Estate Portfolio Metrics (As of December 31, 2023) | Metric | Data | | :--- | :--- | | Number of Consolidated Properties | Approximately 115 | | Number of States | 18 | | Total Area | Approximately 54.6 million square feet | | Occupancy Rate | Approximately 99.8% | | Portfolio Composition (2015 vs 2023) | 2015: Approximately 16% warehouse/distribution assets; 2023: Approximately 99.7% warehouse/distribution assets | | Average Age of Warehouse/Distribution Properties | Approximately 9.5 years | | Largest Tenant as % of ABR | 6.9% | | Investment-Grade Credit Rated Tenants as % of ABR | 49.9% | | Full-Time Employees | 64 people | | Female Employees | 57.8% | | Non-White Employees | 46.9% | | Female Executives | 25.0% | | Non-White Executives | 12.5% | Risk Factors The company faces significant risks related to leases, real estate development, macroeconomic conditions, debt, equity investments, and maintaining REIT qualification - The company's focus on single-tenant net-leased properties exposes it to significant risks of tenant default, lease termination, or inability to renew on favorable terms, especially when properties become vacant, incurring all operating costs808283 - Real estate development activities involve additional risks, including government approvals, construction cost overruns, delays in completion or leasing, supply chain disruptions, and inflation8788 - The company faces industry and economic risks, including public health emergencies, financial market instability, high interest rates, bank failures, geopolitical issues, labor shortages, inflation, and physical and transitional risks from natural disasters and climate change113115118119120 - Equity investment risks include potential changes in dividend policy, dilution from future stock issuances, and restrictions in company bylaws on third-party acquisitions or changes in control, such as executive severance, the board's power to issue additional shares, Maryland acquisition statutes, and ownership limitations141142143144145146 - Maintaining REIT qualification involves complex tax regulations, with no guarantee of future compliance, and the company also faces legal and general risks such as environmental liabilities, changes in government regulations, and credit rating downgrades149154156157158160162 Debt Risk Overview (As of December 31, 2023) | Metric | Data | | :--- | :--- | | Total Consolidated Debt | Approximately $1.8 billion | | Variable-Rate Debt | $129.1 million (7.2% of total debt) | | Fixed-Rate Debt | $1.7 billion (92.8% of total debt) | | Variable-Rate Debt Weighted Average Interest Rate (2023) | 6.8% | | Variable-Rate Debt Weighted Average Interest Rate (2022) | 3.5% | | Impact of 100 Basis Points Interest Rate Increase on 2023 Interest Expense | Increase of $1.7 million | | Impact of 100 Basis Points Interest Rate Increase on 2022 Interest Expense | Increase of $2.3 million | | Fair Value of Fixed-Rate Debt (December 31, 2023) | $1.5 billion | Unresolved Staff Comments As of the end of the reporting period, the company has not received any unresolved written comments from the SEC staff regarding its periodic or current reports - As of December 31, 2023, the company had no unresolved written comments from SEC staff regarding its periodic or current reports166 Cybersecurity The company maintains an appropriate cybersecurity program overseen by management and the board, with comprehensive processes and insurance, and no significant incidents in the past three years - The company has an appropriate cybersecurity program overseen by management and the board, specifically the Audit and Cyber Risk Committee, which includes a recognized cybersecurity expert167168169174 - The company has an internal Director of Information Technology and Director of ESG & Corporate Operations for IT matters, and outsources CTO/CISO services (provided by BDO USA, LLC) and IT management services to enhance cybersecurity capabilities170171172 - The cybersecurity program covers prevention, preparation, detection, analysis, containment, eradication, recovery, and reporting, including annual penetration testing, multi-factor authentication, geo-blocking, employee training, business continuity/disaster recovery plans, and vendor due diligence175176177178181182183184185 - The company maintains cybersecurity insurance to cover costs related to network failures and specific cybersecurity incidents, and as of December 31, 2023, has not experienced any material cybersecurity incidents in the past three years180186 Property Information As of December 31, 2023, the company's portfolio comprised approximately 115 consolidated properties, primarily stable warehouse/distribution assets, with diversified tenants and a weighted average lease term of 6.0 years Consolidated Real Estate Portfolio Overview (As of December 31, 2023) | Metric | Data | | :--- | :--- | | Number of Properties | Approximately 115 | | Total Area | Approximately 54.6 million square feet | | Occupancy Rate | Approximately 99.8% | | Warehouse/Distribution Portfolio Annualized Cash Basic Rent (ABR) | $4.66/square foot (excluding ground leases) | | Warehouse/Distribution Portfolio Weighted Average Remaining Lease Term | 6.0 years | | Other Portfolio Annualized Cash Basic Rent (ABR) | $12.50/square foot (excluding Baltimore property) | | Other Portfolio Weighted Average Remaining Lease Term | 2.1 years | | Consolidated Portfolio Annualized Cash Basic Rent (ABR) | $4.71/square foot (excluding ground leases) | | Consolidated Portfolio Weighted Average Remaining Lease Term | 6.0 years | | Property-Level Mortgages and Notes Payable | Approximately $60.9 million | | Weighted Average Interest Rate | Approximately 4.0% | | Weighted Average Maturity | 6.4 years | Unconsolidated Portfolio Overview (As of December 31, 2023) | Metric | Data | | :--- | :--- | | Office/Other Properties Total Area | 951,995 square feet | | Office/Other Properties Occupancy Rate | 77.5% | | Special-Purpose Industrial Properties Total Area | 6,719,210 square feet | | Special-Purpose Industrial Properties Occupancy Rate | 100% | | Unconsolidated Portfolio Annualized Cash Basic Rent (ABR) | $7.58/square foot | | Unconsolidated Portfolio Weighted Average Remaining Lease Term | 6.8 years | Development Projects Under Construction (As of December 31, 2023) | Project Type | Number of Buildings | Market | Estimated Area (Square Feet) | Estimated Project Cost ($000) | GAAP Investment Balance ($000) | LXP Funds Invested ($000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Leased Development Projects | 1 | Phoenix, AZ | 488,400 | $55,300 | $50,716 | $44,523 | | Speculative Development Projects | 6 | Multiple | 3,693,743 | $291,800 | $268,639 | $244,284 | | Total | 7 | | 4,182,143 | $347,100 | $319,355 | $288,807 | Industrial Development Land (As of December 31, 2023) | Project Type | Market | Approximate Acres | GAAP Investment Balance ($000) | LXP Funds Invested ($000) | | :--- | :--- | :--- | :--- | :--- | | Consolidated | Phoenix, AZ | 320 | $73,683 | $74,308 | | Consolidated | Indianapolis, IN | 116 | $5,328 | $4,283 | | Consolidated | Atlanta, GA | 14 | $1,732 | $1,751 | | Consolidated Total | | 450 | $80,743 | $80,342 | | Unconsolidated | Columbus, OH | 52 | $10,320 | $13,778 | | Unconsolidated | Columbus, OH | 21 | $2,245 | $2,674 | | Unconsolidated Total | | 73 | $12,565 | $16,452 | Tenant Credit Rating Distribution (As of December 31, 2023) | Credit Rating | ABR ($000) | Percentage of ABR | | :--- | :--- | :--- | | Investment Grade | $135,165 | 49.9% | | Non-Investment Grade | $48,086 | 17.8% | | Unrated | $87,429 | 32.3% | | Total | $270,680 | 100.0% | Lease Expirations Over Next Ten Years (As of December 31, 2023) | Year | Number of Leases Expiring | Area (Square Feet) | ABR ($000) | Percentage of ABR | | :--- | :--- | :--- | :--- | :--- | | 2024 | 13 | 3,224,253 | $16,030 | 5.9% | | 2025 | 13 | 3,137,998 | $18,313 | 6.8% | | 2026 | 25 | 7,052,764 | $32,861 | 12.1% | | 2027 | 16 | 8,765,734 | $37,114 | 13.7% | | 2028 | 8 | 3,074,237 | $18,139 | 6.7% | | 2029 | 18 | 8,864,350 | $35,840 | 13.2% | | 2030 | 10 | 6,950,840 | $30,147 | 11.1% | | 2031 | 12 | 5,060,431 | $22,237 | 8.2% | | 2032 | 3 | 687,984 | $5,348 | 2.0% | | 2033 | 3 | 1,668,902 | $12,335 | 4.6% | Legal Proceedings The company is involved in ordinary course legal proceedings, which management does not expect to have a material adverse effect on its business, financial condition, or operating results - The company is involved in legal proceedings in the ordinary course of business, but these are not expected to have a material adverse effect on its business, financial condition, or results of operations224 Mine Safety Disclosures This item is not applicable PART II Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The company's common stock is listed on the NYSE, with 2,229 stockholders as of February 13, 2024, and it maintains a consistent dividend policy and an ATM program, with no common stock repurchases in 2023 - The company's common stock is listed on the New York Stock Exchange under the ticker symbol "LXP"228 Equity Securities Information | Metric | Data | | :--- | :--- | | Number of Common Stockholders as of February 13, 2024 | 2,229 | | Dividend Policy | Quarterly dividends consistently paid since 1993, with plans to continue | | Number of Securities Available for Future Issuance Under 2022 Equity Incentive Plan (As of December 31, 2023) | 2,994,544 shares | | Unregistered Sales of Equity Securities in 2023 | None | | Common Stock Repurchases in 2023 | None | | Shares Remaining for Repurchase Under Authorization as of December 31, 2023 | 6,874,241 shares | | Insider Trading in 2023 | No executive officers or directors adopted or terminated 10b5-1 trading arrangements | Reserved This item is reserved Management's Discussion and Analysis of Financial Condition and Results of Operations In 2023, the company focused on industrial real estate, with strong leasing and rent growth, optimizing its balance sheet through capital recycling and new debt issuance, while net income and FFO decreased, but Adjusted Company FFO increased Summary of Key 2023 Transactions | Category | Details | | :--- | :--- | | Leasing Activity | | | New and Renewal Leases Area | 6.8 million square feet | | Second-Generation New and Renewal Leases Average Fixed Rent | $5.40/square foot (from original average $3.85/square foot) | | New Generation Leases Weighted Average Tenant Improvements and Leasing Commissions Cost | $12.31/square foot | | Second-Generation New and Renewal Leases Weighted Average Tenant Improvements and Leasing Commissions Cost | $1.82/square foot | | Industrial Basic Rent and Cash Basic Rent Growth (2023) | 40.1% and 27.0% respectively (52.3% and 37.3% excluding fixed-rate renewals) | | Investments | | | Warehouse/Distribution Facility Acquisition | 1 property, cost $15 million | | Land and Partially Completed Facility Acquisition | 13.8 acres of land and 250,000 square feet facility, cost $15.9 million | | Completed Core and Shell Warehouse/Distribution Facilities | 7 properties, total area 4.2 million square feet | | Placed-in-Service Warehouse/Distribution Facilities | Total area 1.8 million square feet | | Total Investment in Development Activities | $122.1 million (of which $85.8 million for consolidated development projects) | | Capital Recycling | | | Total Property and Land Dispositions | $100.2 million | | Proceeds from Unconsolidated Joint Venture Property Dispositions | $8.1 million (after repaying $48.9 million non-recourse debt) | | Debt | | | Senior Notes Issued | $300 million, 6.75% interest rate, due 2028 | | $300 Million Term Loan Amendment | Maturity extended from January 31, 2025, to January 31, 2027 | - Total investment activity in 2023 was $146.4 million, a $48.8 million decrease from $195.2 million in 2022, primarily due to the completion of portfolio transformation, increased cost of capital, and buyer-seller divergence in the real estate market246 - The company continues to prioritize development projects, especially build-to-suit, over acquiring existing leased properties for potentially higher yields, and expects to limit speculative development in 2024, focusing on markets with sufficient demand249252253 - The company's liquidity primarily stems from operating cash flow, asset sales, and public/private equity and debt markets; operating cash flow increased to $209.4 million in 2023, with reduced cash outflow from investing activities and a positive shift in financing cash flow, mainly due to new debt issuance275278279280 - The company expects to repay the 4.40% Senior Notes due 2024 from cash and short-term investments, and plans to retain cash through a conservative dividend policy for property maintenance, expansion, debt reduction, and new property acquisitions302304 Overview of Operating Results (2023 vs 2022) | Metric | 2023 ($000) | 2022 ($000) | Change ($000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Stockholders | $23,863 | $107,307 | $(83,444) | -77.8% | | Total Revenue | $340,503 | $321,245 | $19,258 | 6.0% | | Basic Rental Revenue | - | - | Increase $12,800 | - | | Tenant Reimbursement Revenue | - | - | Increase $7,400 | - | | Depreciation and Amortization Expense | $(183,524) | $(180,567) | $(2,957) | 1.6% | | Property Operating Expenses | $(58,394) | $(54,870) | $(3,524) | 6.4% | | General and Administrative Expenses | $(36,334) | $(38,714) | $2,380 | -6.1% | | Transaction Costs | $(4) | $(4,177) | $4,173 | -99.9% | | Non-Operating Income | $2,982 | $935 | $2,047 | 218.9% | | Interest and Amortization Expense | $(46,389) | $(45,417) | $(972) | 2.1% | | Impairment Charges | $(16,490) | $(3,037) | $(13,453) | 443.0% | | Gain on Sale of Properties | $33,010 | $59,094 | $(26,084) | -44.1% | | Sales-Type Lease Profit | $0 | $47,059 | $(47,059) | -100.0% | | Equity in Earnings (Loss) of Unconsolidated Entities | $1,366 | $16,006 | $(14,640) | -91.5% | | Net Income Attributable to Noncontrolling Interests | $(5,540) | $(2,460) | $(3,080) | 125.2% | Non-GAAP Financial Metrics (2023 vs 2022) | Metric | 2023 ($000) | 2022 ($000) | Change ($000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Same-Store Net Operating Income (NOI) | $225,287 | $216,563 | $8,724 | 4.0% | | Same-Store Occupancy Rate (2023 vs 2022) | 100% vs 99.8% | - | - | - | | Basic FFO Attributable to Common Stockholders and Unit Holders | $199,560 | $223,717 | $(24,157) | -10.8% | | Diluted FFO Attributable to All Equity Holders and Unit Holders | $206,080 | $230,193 | $(24,113) | -10.5% | | Diluted Adjusted Company FFO Attributable to All Equity Holders and Unit Holders | $206,191 | $193,061 | $13,130 | 6.8% | | Basic FFO Per Common Share and Unit | $0.69 | $0.80 | $(0.11) | -13.8% | | Diluted FFO Per Common Share and Unit | $0.70 | $0.80 | $(0.10) | -12.5% | | Diluted Adjusted Company FFO Per Common Share and Unit | $0.70 | $0.67 | $0.03 | 4.5% | Summary of 2023 Transactions - In 2023, the company executed new and renewal leases totaling 6.8 million square feet, with second-generation leases seeing average fixed rent increase from $3.85 per square foot to $5.40 per square foot242 - The company acquired one warehouse/distribution facility for $15 million and one land parcel with a partially completed facility for $15.9 million, and completed core and shell construction on seven development projects totaling 4.2 million square feet243 - The company disposed of properties and land totaling $100.2 million and received $8.1 million from unconsolidated joint venture dispositions, used for debt repayment and investment244 - The company issued $300 million of 6.75% Senior Notes due 2028 and extended the maturity of its $300 million Term Loan to January 2027244 Investment Trends - The company's investment activities primarily focus on income-producing single-tenant warehouse and distribution assets and speculative development projects245 - In 2023, investments in acquired or completed and placed-in-service warehouse and distribution assets totaled $146.4 million, a $48.8 million decrease from 2022, primarily due to the completion of portfolio transformation and increased cost of capital246 - The company expects to continue selling non-core industrial assets and industrial assets in non-target markets, using proceeds to reduce debt and invest in target markets, despite potential short-term earnings dilution247 - The industrial real estate market remains resilient due to e-commerce and reshoring, with the company prioritizing development projects (especially build-to-suit) for potentially higher yields than acquiring existing properties248249252 Leasing - The company's asset management focuses on re-leasing vacant or expiring properties, with target market rents expected to grow due to strong demand and low vacancy rates254256 - As of December 31, 2023, 98.1% of the company's industrial leases had scheduled rent increases, with an average increase of 2.6%258 - The company continuously monitors tenant creditworthiness by subscribing to rating agency information, reviewing financial statements, monitoring news reports, and rent collections259 Impairment charges - Impairment charges in 2023 and 2022 primarily occurred on non-core assets due to anticipated shorter holding periods261 Impairment Charges (2023 vs 2022) | Year | Impairment Charges ($000) | | :--- | :--- | | 2023 | $16,500 | | 2022 | $3,000 | Critical Accounting Estimates - Critical accounting estimates include real estate acquisitions and development (fair value allocation, cash flow projections, discount and capitalization rates), revenue recognition (lease classification, implicit interest rates, unguaranteed residual values, straight-line rent recognition), real estate impairment (triggering events, undiscounted future cash flows, fair value), and allowance for credit losses (ASC 326, discounted cash flow models, probability of default)263266268270 Liquidity and Capital Resources - The company's primary liquidity sources include undistributed cash flow from operations, proceeds from asset sales, public and private equity and debt markets, corporate-level borrowings, property-specific debt, and commitments from co-investment partners275 - The company expects operating cash flow to be sufficient to cover operating and administrative expenses, scheduled debt payments, and all dividend payments, and will continue to use debt and equity markets for growth funding, though capital market volatility may impact financing ability277283 - In 2023, the company disposed of $100.2 million in properties, primarily using capital recycling proceeds to fund development projects and real estate investments, optimizing the balance sheet and supporting investment activities298 - The company expects to incur approximately $53.2 million in consolidated development project commitments, and paid approximately $151.9 million in cash dividends to common and preferred stockholders in 2023304306 Cash Flow Overview ($000) | Cash Flow Category | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $209,446 | $194,269 | Increase $15,177 | | Net Cash Used in Investing Activities | $(183,451) | $(236,919) | Decrease $53,468 | | Net Cash Provided by (Used in) Financing Activities | $118,962 | $(93,871) | Increase $212,833 | Debt Structure (As of December 31, 2023) | Debt Type | Amount ($000) | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | | 2028 Senior Notes | $300,000 | 6.750% | November 2028 | | 2031 Senior Notes | $400,000 | 2.375% | October 2031 | | 2030 Senior Notes | $400,000 | 2.70% | September 2030 | | 2024 Senior Notes | $198,932 | 4.40% | June 2024 | | Trust Preferred Securities | $129,120 | SOFR + 170bps (7.352% as of Dec 31, 2023) | 2037 | | Revolving Credit Facility | $600,000 (available capacity) | SOFR + 0.85% | July 2026 | | Term Loan | $300,000 | Term SOFR + 1.00% (swapped to 2.722% fixed until Jan 2025) | January 2027 | | Property-Specific Mortgages and Notes Payable | $60,888 | Approximately 4.0% (weighted average) | 2028-2031 | | Total Debt | Approximately $1,800,000 | Approximately 3.9% (weighted average) | | Non-Development Capital Expenditures - Due to the net-lease structure of most investments, the company's property-owning subsidiaries typically do not incur significant routine maintenance expenses, but costs for renewals, re-leasing, or conversion to multi-tenant use are anticipated upon lease expiration307 - Vacant properties incur all operating expenses and significant capital expenditures and re-leasing costs; the company believes focusing on industrial assets will yield significant savings due to lower operating and re-leasing costs compared to office assets310 - In certain leases, tenants have the right to expand facilities, and the company's property-owning subsidiaries may fund these expansions through additional secured borrowings or capital contributions311 Results of Operations - Net income attributable to common stockholders in 2023 decreased by $83.4 million compared to 2022, primarily due to lower gains on property sales and reduced sales-type lease profit314320321 - Total revenue increased by $19.3 million in 2023, mainly driven by a $12.8 million increase in basic rental revenue and a $7.4 million increase in tenant reimbursement revenue, partially offset by property sales315 - Interest and amortization expense increased by $1.0 million in 2023, primarily due to a $4.4 million increase in variable interest expense on trust preferred securities and a $2.7 million increase from the 2028 Senior Notes issuance, partially offset by a $3.8 million increase in capitalized interest and a $2.1 million decrease in credit facility borrowing interest expense319 - Impairment charges increased by $13.5 million in 2023, primarily related to impairments recognized on office assets due to potential sales320 Same-Store Results - Same-store NOI increased by 4.0% in 2023 compared to 2022, primarily due to increased occupancy and cash basic rent; historical same-store occupancy was 100% as of December 31, 2023, compared to 99.8% in 2022327 Same-Store Net Operating Income (NOI) ($000) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Cash Basic Rent | $227,323 | $218,772 | | Tenant Reimbursements | $43,928 | $37,148 | | Property Operating Expenses | $(45,964) | $(39,357) | | Same-Store NOI | $225,287 | $216,563 | | Same-Store NOI Growth Rate | 4.0% | - | Funds From Operations (FFO) - FFO is a non-GAAP metric for equity REIT performance, reflecting operating trends by excluding items like real estate depreciation, gains/losses on asset sales, and impairments330 FFO and Adjusted Company FFO Overview ($000, except per share amounts) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Basic FFO Attributable to Common Stockholders and Unit Holders | $199,560 | $223,717 | | Diluted FFO Attributable to All Equity Holders and Unit Holders | $206,080 | $230,193 | | Diluted Adjusted Company FFO Attributable to All Equity Holders and Unit Holders | $206,191 | $193,061 | | Basic FFO Per Common Share and Unit | $0.69 | $0.80 | | Diluted FFO Per Common Share and Unit | $0.70 | $0.80 | | Diluted Adjusted Company FFO Per Common Share and Unit | $0.70 | $0.67 | Quantitative and Qualitative Disclosures about Market Risk The company manages market risks associated with its variable and fixed-rate debt through fixed-rate instruments and interest rate swaps to stabilize interest expense and reduce borrowing costs - The company manages interest rate risk through fixed-rate debt instruments and derivative financial instruments like interest rate swaps to limit the impact of rate fluctuations on earnings and cash flows, and to reduce overall borrowing costs; as of December 31, 2023, the company had four interest rate swap agreements, all maturing in January 2025341 Market Risk Exposure (As of December 31, 2023) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Variable-Rate Debt | $129.1 million | $129.1 million | | Percentage of Total Consolidated Debt | 7.2% | 8.6% | | Variable-Rate Debt Weighted Average Interest Rate | 6.8% | 3.5% | | Total Fixed-Rate Debt | $1.7 billion | $1.4 billion | | Percentage of Total Consolidated Debt | 92.8% | 91.4% | | Fair Value of Fixed-Rate Debt | $1.5 billion | - | | Impact of 100 Basis Points Interest Rate Increase on Interest Expense (2023) | Increase $1.7 million | | | Impact of 100 Basis Points Interest Rate Increase on Interest Expense (2022) | | Increase $2.3 million | Financial Statements and Supplementary Data This section presents the company's consolidated financial statements for 2023, 2022, and 2021, along with related notes and schedules, all receiving unqualified opinions from the independent registered public accounting firm - The independent registered public accounting firm issued unqualified opinions on the company's consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2023346347359360 - Key audit matters include real estate, net – indicators of impairment and determination of impairment, which involves highly subjective assessments of assumptions such as estimated holding periods, rental rates, capitalization rates, and discount rates351352354 Consolidated Balance Sheet Key Data ($000) | Metric | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Real Estate, Net | $3,584,153 | $3,665,539 | | Assets Held for Sale | $9,168 | $66,434 | | Cash and Cash Equivalents | $199,247 | $54,390 | | Short-Term Investments | $130,140 | $0 | | Investments in Unconsolidated Entities | $48,495 | $58,206 | | Total Assets | $4,192,775 | $4,053,847 | | Mortgages and Notes Payable, Net | $60,124 | $72,103 | | Term Loan, Net | $296,764 | $298,959 | | Senior Notes, Net | $1,286,145 | $989,295 | | Trust Preferred Securities, Net | $127,794 | $127,694 | | Total Liabilities | $1,927,318 | $1,662,844 | | Total Stockholders' Equity | $2,232,087 | $2,352,734 | Consolidated Statements of Operations Key Data ($000, except per share data) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total Revenue | $340,503 | $321,245 | $343,997 | | Depreciation and Amortization | $(183,524) | $(180,567) | $(176,714) | | Property Operating | $(58,394) | $(54,870) | $(47,314) | | General and Administrative | $(36,334) | $(38,714) | $(35,458) | | Interest and Amortization Expense | $(46,389) | $(45,417) | $(46,708) | | Impairment Charges | $(16,490) | $(3,037) | $(5,541) | | Gain on Sale of Properties | $33,010 | $59,094 | $367,274 | | Sales-Type Lease Profit | $0 | $47,059 | $0 | | Net Income Attributable to Common Stockholders | $23,863 | $107,307 | $375,848 | | Basic Net Income Per Share | $0.08 | $0.38 | $1.35 | | Diluted Net Income Per Share | $0.08 | $0.38 | $1.34 | Consolidated Statements of Cash Flows Key Data ($000) | Cash Flow Category | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $209,446 | $194,269 | $220,346 | | Net Cash Used in Investing Activities | $(183,451) | $(236,919) | $(337,762) | | Net Cash Provided by (Used in) Financing Activities | $118,962 | $(93,871) | $129,102 | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $199,463 | $54,506 | $191,027 | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure This item is not applicable Controls and Procedures Management assessed and determined the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with an unqualified opinion from the independent registered public accounting firm and no material changes during the quarter - As of December 31, 2023, the company's management determined its disclosure controls and procedures were effective564 - Management assessed and determined that the company's internal control over financial reporting was effective as of December 31, 2023567 - Deloitte & Touche LLP, the independent registered public accounting firm, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting568 - No material changes occurred in the company's internal control over financial reporting during the quarter ended December 31, 2023569 Other Information During the three months ended December 31, 2023, no directors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - During the three months ended December 31, 2023, no directors or executive officers adopted or terminated any "Rule 10b5-1 trading arrangements" or "non-Rule 10b5-1 trading arrangements"570 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections This item is not applicable PART III Directors, Executive Officers and Corporate Governance Information for this item is incorporated by reference into the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Information regarding the company's directors, executive officers, and corporate governance is incorporated by reference into the definitive proxy statement for the 2024 Annual Meeting of Stockholders574 Executive Compensation Information for this item is incorporated by reference into the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Information regarding executive compensation is incorporated by reference into the definitive proxy statement for the 2024 Annual Meeting of Stockholders575 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information for this item is incorporated by reference into the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Information regarding security ownership of certain beneficial owners and management and related stockholder matters is incorporated by reference into the definitive proxy statement for the 2024 Annual Meeting of Stockholders576 Certain Relationships and Related Transactions, and Director Independence Information for this item is incorporated by reference into the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders, supplemented by related party transaction disclosures in Note 16 to the financial statements - Information regarding certain relationships and related transactions and director independence is incorporated by reference into the definitive proxy statement for the 2024 Annual Meeting of Stockholders, with additional reference to related party transaction disclosures in Note 16 to the financial statements577 Principal Accounting Fees and Services Information for this item is incorporated by reference into the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Information regarding principal accounting fees and services is incorporated by reference into the definitive proxy statement for the 2024 Annual Meeting of Stockholders578 PART IV Exhibits, Financial Statement Schedules This section lists all exhibits and financial statement schedules included in the company's annual report, encompassing financial statements, independent registered public accounting firm reports, and various corporate and legal documents - This section provides a detailed list of financial statements, financial statement schedules, and various exhibits included in the company's annual report, such as articles of incorporation, credit agreements, equity sales agreements, and certification documents581
LXP(LXP) - 2023 Q4 - Annual Report