LXP Industrial Trust Reports Second Quarter 2024 Results

Core Insights - LXP Industrial Trust reported strong second quarter results with nearly three million square feet of leasing volume, achieving same-store NOI growth of 5% and completing its portfolio transformation by selling its final two consolidated office assets [1][26]. Financial Performance - For the quarter ended June 30, 2024, total gross revenues were $85.8 million, a decrease from $87.1 million in the same quarter of 2023, primarily due to property sales and a decrease in other revenue, partially offset by revenue from market rent increases [1]. - Net income attributable to common shareholders was $3.8 million, or $0.01 per diluted share, compared to a net loss of $(9.7) million, or $(0.03) per diluted share, for the same period in 2023 [2][26]. - Adjusted Company Funds From Operations (FFO) for the quarter was $46.9 million, or $0.16 per diluted share, down from $52.7 million, or $0.18 per diluted share, in the prior year [28]. Leasing Activity - LXP's stabilized portfolio was 93.6% leased as of June 30, 2024, with 2.8 million square feet of new second generation and extended leases executed during the first half of 2024, resulting in Base and Cash Base Rents increasing by approximately 12.8% and 13.9%, respectively [16][26]. - The company completed new leases and lease extensions totaling 2.7 million square feet, raising Base and Cash Base Rents by 44.5% and 44.0%, respectively, excluding tenant improvement reimbursements [26]. Development and Dispositions - LXP invested $34.7 million in development activities during the quarter and sold its remaining two consolidated office assets, resulting in a 100% industrial asset portfolio [26][36]. - The company has ongoing development projects, including a build-to-suit project in Greenville/Spartanburg, SC, and additional projects in Central Florida and Columbus, OH [31]. Debt and Guidance - As of June 30, 2024, LXP's total consolidated debt was $1.6 billion, with 91.9% at fixed rates and a weighted-average interest rate of 3.810% [45]. - The company tightened its estimated net income guidance for the year ending December 31, 2024, to a range of $0.10 to $0.13 per diluted common share, and Adjusted Company FFO to a range of $0.62 to $0.65 per diluted common share [17].