LXP(US:LXP)2022-05-06 03:11Portfolio Transformation and Strategy - LXP Industrial Trust has successfully transformed its portfolio to focus on warehouse/distribution assets, representing 98% of the portfolio in Q1 2022, compared to 48% in 2015[14] - The company's strategy focuses on single-tenant, well-located, Class A warehouse/distribution assets in the Sunbelt and lower Midwest regions[18] - LXP aims to grow cash flow through investment activity, contractual annual rental escalations, and market rent growth, targeting an attractive dividend yield relative to fixed-income alternatives[18] Investment and Disposition Activities - LXP acquired approximately $72 million of warehouse/distribution assets with a weighted-average GAAP capitalization rate of 4.9% and a cash capitalization rate of 4.5%[5] - The company invested around $69 million in five ongoing development projects during the quarter[5] - Subsequent to the quarter's end, LXP disposed of approximately $55 million in non-core assets, with the majority of remaining office assets being marketed for sale[6] Portfolio Performance and Balance Sheet - The stabilized portfolio was 99.4% leased[7] - LXP achieved a 27.7% increase in industrial Base rents and an 18.1% increase in Cash Base rents on new/extended leases during the quarter, with an average annual rental escalator of 3.3%[7] - The company's leverage stood at 6.3x net debt to Adjusted EBITDA, with a target range of 6-7x as the development portfolio stabilizes[8] - LXP's debt has a weighted-average interest rate of 2.85% and a weighted-average term of 7.3 years[8] ESG and Corporate Responsibility - LXP's ESG+R program is aligned with established frameworks like INREV, GRESB, GRI, and UNPRI[4, 96, 105] - The company achieved the first-place ranking for industrial listed companies in the U S in the first GRESB Assessment[96] - LXP has set environmental targets, including a 25% reduction in GHG emissions and energy consumption over 10 years, and a 15% reduction in water consumption over 10 years[101]