LXP Industrial Trust Reports Third Quarter 2025 Results

Core Insights - LXP Industrial Trust reported strong third-quarter results, highlighted by the sale of two vacant development projects for $175 million, which is a 20% premium over the gross book value of the properties [4][13]. - The company achieved a net income attributable to common shareholders of $34.6 million, or $0.12 per diluted share, significantly up from $4.7 million, or $0.02 per diluted share, in the same quarter last year [6][54]. - Adjusted Company Funds From Operations (FFO) remained stable at $46.7 million, or $0.16 per diluted share, consistent with the previous year [7][54]. Financial Performance - Total gross revenues for the quarter ended September 30, 2025, were $86.9 million, up from $85.6 million in the same quarter of 2024, driven by stabilized development projects and rent increases [5][50]. - The company reported a Same-Store Net Operating Income (NOI) increase of 4.0% year-to-date and 2.0% for the quarter compared to the same periods in 2024 [8]. - The net debt to Adjusted EBITDA ratio improved to 5.2x, reflecting reduced leverage following the property sales [4][22]. Transaction Activity - LXP sold two vacant development projects totaling 2.1 million square feet for $175 million, resulting in net proceeds of approximately $151 million after transaction costs [13][22]. - The company acquired a warehouse facility for $30 million, maintaining a 100% lease rate at acquisition [12][22]. - Year-to-date property dispositions totaled $272.9 million at weighted-average capitalization rates of 6.3% and 5.1% [15]. Leasing Activity - The stabilized portfolio leased percentage increased to 96.8% by the end of the quarter [8][21]. - LXP executed 1.1 million square feet of new and extended leases, raising Cash Base Rents by 27.7% [21]. - The company extended 1.8 million square feet of leases year-to-date, increasing Base and Cash Base Rents by 30.8% and 30.1%, respectively [8][21]. Dividends - LXP declared a regular quarterly common share dividend of $0.14 per share for the quarter ending December 31, 2025, representing a 3.7% increase from the previous quarter [9][11]. - The company also declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock for the same quarter [10][11]. Future Guidance - LXP estimates net income attributable to common shareholders for the year ending December 31, 2025, will be in the range of $0.25 to $0.26 per diluted common share [27]. - The company tightened its estimated Adjusted Company FFO guidance for the year to a range of $0.63 to $0.64 per diluted common share [27]. Stock Split Announcement - A reverse stock split of LXP's common shares at a ratio of 1-for-5 is expected to take place on November 10, 2025, reducing the number of outstanding shares from approximately 295.8 million to about 59.2 million [23][24].