Debt and Interest Rates - As of December 31, 2024, the company's consolidated aggregate principal variable-rate indebtedness not subject to interest rate swaps was $46.6 million, representing 2.9% of total indebtedness[312]. - The weighted-average interest rate for variable-rate indebtedness was 7.2% for 2024, compared to 6.8% for 2023[312]. - The company's aggregate principal consolidated fixed-rate debt was $1.5 billion as of December 31, 2024, representing 97.1% of total indebtedness[312]. - If the weighted-average interest rate had been 100 basis points higher, interest expense would have increased by $1.2 million for 2024[312]. - The fair value of the company's fixed-rate debt was estimated at $1.4 billion as of December 31, 2024[313]. - The company had 11 interest rate swap agreements in place as of December 31, 2024, with expiration dates ranging from January 2025 to October 2027[314]. - The Company utilizes interest rate swap agreements to manage interest rate risk, with fair values recorded on the balance sheet[389]. - The total interest expense recorded in the consolidated statements of operations was $66,477 for 2024, compared to $46,389 for 2023[474]. Financial Performance - Total gross revenues for 2024 increased to $358.458 million, up 5.4% from $340.503 million in 2023[340]. - Rental revenue rose to $354.353 million in 2024, compared to $334.220 million in 2023, reflecting a growth of 6.0%[340]. - Net income attributable to common shareholders for 2024 was $37.922 million, a significant increase of 58.8% from $23.863 million in 2023[340]. - Comprehensive income attributable to LXP Industrial Trust shareholders for 2024 was $41.187 million, compared to $22.177 million in 2023, an increase of 85.7%[343]. - The company reported a depreciation and amortization expense of $192.863 million in 2024, up from $183.524 million in 2023[340]. - Basic earnings per share for 2024 was $0.13, compared to $0.08 in 2023[404]. - The Company recognized sales-type lease income of $22,027,000 in 2024, significantly higher than $7,427,000 in 2023, reflecting a growth of 196.5%[441]. Assets and Liabilities - Total assets decreased to $3.843 billion in 2024 from $4.193 billion in 2023, a decline of 8.3%[338]. - Total liabilities reduced to $1.723 billion in 2024, down from $1.927 billion in 2023, representing a decrease of 10.6%[338]. - The company's total shareholders' equity decreased to $2.098 billion in 2024 from $2.232 billion in 2023, a decline of 6.0%[338]. - The total assets of consolidated variable interest entities (VIEs) were $392,791 as of December 31, 2024, down from $626,442 in 2023, representing a decrease of approximately 37.3%[362]. - Total liabilities for consolidated VIEs decreased to $8,603 as of December 31, 2024, from $19,549 in 2023, a reduction of approximately 56.0%[362]. Shareholder Information - The company declared dividends of $0.525 per common share, totaling $164.084 million in 2024[346]. - The company declared dividends/distributions of $0.505 per common share, totaling $160,470,000 for 2023[351]. - Total dividends per share increased to $0.52 in 2024 from $0.50 in 2023 and $0.48 in 2022[506]. - The Company had 1,935,400 shares of Series C Preferred Stock outstanding as of December 31, 2024, with a dividend of $3.25 per share[483]. - The Company did not repurchase any common shares during 2024 and 2023, with 6,874,241 shares remaining available for repurchase under the authorization[482]. Real Estate and Investments - The company had ownership interests in approximately 119 consolidated real estate properties located in 17 states as of December 31, 2024[356]. - The Company capitalizes direct and indirect project costs associated with property construction until the property is stabilized, which is defined as 90% occupancy or one year from major construction cessation[380]. - The Company evaluates the carrying value of real estate assets for possible impairment when events indicate that the carrying value may not be recoverable[374]. - The Company recognized no impairment charges in 2024, while it recorded impairment charges of $16,490 and $3,037 in 2023 and 2022, respectively[418]. - The total cost of real estate investments in 2024 amounted to $4,583,512, compared to $4,488,862 in 2023, indicating an increase of about 2.1%[406]. Taxation - The provision for income taxes for 2024 was $127,000, compared to a negative provision of $(703,000) in 2023[504]. - The total income tax provision for 2024 is $127 million, a significant increase from a provision of $(703) million in 2023 and $(1,102) million in 2022[505]. - The federal provision at the statutory tax rate (21%) for 2024 is $77 million, compared to $71 million in 2023 and $18 million in 2022[505]. - The estimated net operating loss carry forward for income tax reporting purposes is $789 million for 2024, up from $423 million in 2023[506]. Cash Flow and Capital Expenditures - Cash provided by operating activities for 2023 was $211,187,000, slightly up from $209,446,000 in 2022[353]. - The company reported a net cash used in investing activities of $86,403,000 in 2023, compared to a net cash used of $183,451,000 in 2022[353]. - The company made capital expenditures of $17,782,000 in 2023, consistent with $17,937,000 in 2022[353]. - The Company incurred $5,947 related to infrastructure development costs at the Reems & Olive project, recorded in investments in real estate under construction[414]. Miscellaneous - The Company operates in one segment focused on single-tenant real estate assets[399]. - As of December 31, 2024, the Company was not aware of any environmental matters that would materially impact the consolidated financial statements[398]. - The Company has made an election to qualify as a REIT for federal income tax purposes, generally avoiding federal income tax[392]. - The Company adopted ASC 326 on January 1, 2020, which requires measuring and recording current expected credit losses for investments[385].

Financial Data and Key Metrics Changes - Total gross revenues in Q4 were approximately $101 million, including $15 million from a sales-type lease due to the exercise of a purchase option at the Phoenix ground lease asset [28] - Adjusted company FFO for Q4 was $0.16 per diluted common share, with full year 2024 adjusted company FFO at $0.64 per diluted common share [29] - Same-store NOI increased by 4.1% in Q4 compared to the same period in 2023, with a year-end same-store portfolio occupancy of 99.5% [31] Business Line Data and Key Metrics Changes - Leasing volume in Q4 reached nearly 1 million square feet, with base and cash-based rental increases of approximately 66% and 43% respectively, excluding fixed-rate renewals [7] - The company completed 4.5 million square feet of leasing volume for the year, achieving strong same-store NOI growth of 5% [9] - Average annual escalators reached 2.8% at year-end, indicating a positive trend in rental growth [9] Market Data and Key Metrics Changes - The markets primarily operated in, such as the Sunbelt and Lower Midwest, showed more resilient industrial fundamentals compared to select coastal markets [12] - U.S. manufacturing activity expanded in January after 26 consecutive months of contraction, indicating a potential recovery in the industrial sector [13] - National vacancy rates ticked up slightly in Q4 but are expected to peak by mid-2025, with average national asking rents showing slight increases [22] Company Strategy and Development Direction - The company plans to focus on reducing leverage over time by growing EBITDA through leasing vacant assets and increasing rents with annual escalators [10] - The strategy includes a cautious optimism for 2025, with expectations of improved industrial fundamentals and a focus on resolving remaining vacancies [12][15] - The company aims to capitalize on build-to-suit opportunities and maintain a core portfolio positioned in markets benefiting from long-term demographic trends and advanced manufacturing investments [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, noting increased tenant interest and improved leasing activity in early 2025 [12] - The company acknowledged the uncertain environment but highlighted the positive factors of below-market rents and a predominantly Class A portfolio [13] - Full year 2025 adjusted company FFO guidance is set between $0.61 and $0.65 per diluted common share, reflecting the impact of big box leasing on funds from operation [14] Other Important Information - The company sold its remaining consolidated office assets and opportunistically divested four industrial assets, resulting in considerable value creation [8] - The company’s total consolidated debt outstanding was approximately $1.6 billion with a weighted average interest rate of 3.68% [31] - G&A expenses for Q4 were approximately $10 million, with expectations for 2025 G&A to be in the range of $39 million to $41 million [30] Q&A Session Summary Question: Can you elaborate on the larger box developments and the environment? - Management noted increased activity in January compared to the previous year, with a broad range of tenants showing interest, including construction and e-commerce [35][38] Question: What is the competitive landscape for your development projects? - Management indicated that competition for large buildings is limited, with only a few competitors in specific submarkets [48] Question: What are the expectations for tenant retention and lease expirations? - Management acknowledged known move-outs and expressed conservatism regarding tenant retention, with expectations for strong mark-to-market on certain assets [42][43] Question: Can you discuss the near-term capital allocation plan? - The company plans to focus on core markets for capital allocation, with an emphasis on build-to-suit projects and reducing leverage [52] Question: How do you see the guidance for 2025 in relation to leasing activity? - Management confirmed that the low end of guidance assumes no leasing of recently developed properties, while the higher end anticipates more activity in the second half of the year [55]

Group 1: Financial Performance - LXP Industrial reported quarterly funds from operations (FFO) of $0.16 per share, matching the Zacks Consensus Estimate, but down from $0.17 per share a year ago [1] - The company posted revenues of $100.85 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 19.25%, compared to $82.96 million in the same quarter last year [2] - The current consensus FFO estimate for the upcoming quarter is $0.16 on revenues of $85.94 million, and for the current fiscal year, it is $0.63 on revenues of $348.97 million [7] Group 2: Market Performance and Outlook - LXP Industrial shares have increased by approximately 0.6% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] - The outlook for the REIT and Equity Trust - Residential industry is currently in the bottom 22% of over 250 Zacks industries, which may impact LXP Industrial's stock performance [8] Group 3: Estimate Revisions and Trends - The estimate revisions trend for LXP Industrial is mixed, and changes in these estimates could affect stock performance following the earnings report [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which investors can track [5]

Core Insights - LXP Industrial Trust reported strong financial performance for the fourth quarter and full year of 2024, driven by significant leasing activity and same-store growth [4][6][22]. Financial Performance - For Q4 2024, total gross revenues reached $100.9 million, up from $83.0 million in Q4 2023, primarily due to increased rental revenue and acquisitions [6]. - Net income attributable to common shareholders for Q4 2024 was $31.4 million, or $0.11 per diluted share, compared to $13.0 million, or $0.04 per diluted share in Q4 2023 [7]. - Adjusted Company Funds From Operations (FFO) for Q4 2024 was $47.0 million, or $0.16 per diluted share, down from $51.4 million, or $0.17 per diluted share in Q4 2023 [8]. Leasing Activity - LXP completed 4.5 million square feet of leasing throughout 2024, with Base and Cash Base rents increasing by approximately 46% and 40%, respectively [4][21]. - The stabilized portfolio was 93.6% leased as of December 31, 2024, reflecting strong demand in the market [21]. Acquisitions and Developments - The company acquired four Class A properties for a total cost of $157.6 million and completed a 625,238 square foot build-to-suit facility in South Carolina [4][11][12]. - Total acquisition and build-to-suit activity for 2024 amounted to approximately $232.0 million [13]. Balance Sheet and Debt Management - LXP ended 2024 with a net debt to Adjusted EBITDA ratio of 5.9x, with total consolidated debt of $1.6 billion [22]. - The weighted-average interest rate on total consolidated debt was 3.68% as of December 31, 2024 [22]. Future Guidance - For the year ending December 31, 2025, LXP estimates net income attributable to common shareholders will range from $0.01 to $0.05 per diluted share, and Adjusted Company FFO is expected to be between $0.61 and $0.65 per diluted share [23].

Core Viewpoint - LXP Industrial Trust has announced its final 2024 dividend income allocations for both common and preferred shares, detailing the distributions and tax reporting requirements [1]. Common Shares - The total dividend per share for common shares is $0.130000, with specific allocations for ordinary dividends ($0.072340), qualified dividends ($0.000000), capital gain distributions ($0.054050), unrecaptured Section 1250 gain ($0.021230), and nondividend distributions ($0.003610) [2]. - The record and payable dates for the common shares are as follows: - December 29, 2023, payable on January 16, 2024 - March 28, 2024, payable on April 15, 2024 - June 28, 2024, payable on July 15, 2024 - September 30, 2024, payable on October 15, 2024 [2]. Preferred Shares - The total dividend per share for Series C Cumulative Convertible Preferred Stock is $0.812500, with allocations for ordinary dividends ($0.465030), capital gain distributions ($0.347470), and unrecaptured Section 1250 gain ($0.136500) [3]. - The record and payable dates for the preferred shares are as follows: - January 31, 2024, payable on February 15, 2024 - April 30, 2024, payable on May 15, 2024 - July 31, 2024, payable on August 15, 2024 - October 31, 2024, payable on November 15, 2024 [3]. Tax Reporting - 9.41% of the amounts for preferred shares are reported as Section 897 ordinary dividends attributable to dispositions of U.S. Real Property Interests [3]. - Qualified dividends and Section 199A dividends are included in the total ordinary dividends reported [4]. - Total capital gain distributions are from sales of assets that generated Section 1231 gains, with unrecaptured Section 1250 gain being a subset of the total capital gain distribution [5]. Company Overview - LXP Industrial Trust is a publicly traded REIT focused on Class A warehouse and distribution investments in target markets across the Sunbelt and Midwest, aiming to expand its portfolio through acquisitions and development projects [8].

Group 1 - LXP Industrial Trust will release its fourth quarter 2024 financial results on February 13, 2025 [1] - A conference call and webcast will be held on the same day at 8:30 a.m. Eastern Time to discuss the results [1] - Participants can access the conference call via specific phone numbers and a conference ID [1] Group 2 - LXP Industrial Trust is a publicly traded REIT focused on Class A warehouse and distribution investments in the Sunbelt and Midwest regions [3] - The company aims to expand its portfolio through acquisitions, development projects, and various transaction types [3] - Additional information can be found on LXP's official website [3]

Financial Performance - LXP reported net income attributable to common shareholders of $4.7 million, or $0.02 per diluted share, down from $11.0 million, or $0.04 per diluted share in Q3 2023[6]. - Adjusted Company FFO for Q3 2024 was $46.7 million, or $0.16 per diluted share, compared to $51.9 million, or $0.18 per diluted share in Q3 2023[7]. - The company reported a net income of $5.613 million for Q3 2024, significantly lower than $12.901 million in Q3 2023, reflecting a decrease in overall profitability[43]. - The company’s net income attributable to common shareholders for the nine months ended September 30, 2024, was $6.533 million, compared to $10.878 million for the same period in 2023, reflecting ongoing operational challenges[45]. - Net income attributable to common shareholders for the three months ended September 30, 2024, was $4.689 million, a decrease from $11.039 million in the same period of 2023[46]. - Funds from operations (FFO) available to common shareholders and unitholders - basic was $43.472 million for the three months ended September 30, 2024, compared to $50.299 million in the prior year, reflecting a decline of approximately 13.5%[46]. - Adjusted Company FFO available to all equityholders and unitholders - diluted was $46.707 million for the three months ended September 30, 2024, down from $51.926 million in the same period of 2023[46]. - Company Funds Available for Distribution for the three months ended September 30, 2024, was $44.138 million, compared to $47.078 million in the prior year, indicating a decrease of about 4%[46]. - Estimated Adjusted Company FFO per diluted common share for the twelve months ending December 31, 2024, is projected to be between $0.63 and $0.64[47]. - FFO diluted per share for the three months ended September 30, 2024, was $0.15, down from $0.17 in the same period of 2023[46]. Revenue and Leasing Activity - Total gross revenues for Q3 2024 were $85.6 million, a slight increase from $85.4 million in Q3 2023, primarily due to market rent increases[5]. - Rental revenue for Q3 2024 was $84.549 million, a slight increase from $83.844 million in Q3 2023, while total gross revenues reached $85.570 million compared to $85.422 million in the same period last year[43]. - Same-store NOI increased by 5.4% in Q3 2024 compared to the same period in 2023, driven by 39.1% cash rental increases on second generation leases[4]. - LXP completed new leases and lease extensions totaling 0.7 million square feet, raising Base and Cash Base Rents by 38.3% and 22.5%, respectively[2]. Asset Management and Portfolio - The company disposed of three facilities for approximately $136.7 million and acquired one facility for about $34.1 million during the quarter[3]. - LXP's stabilized portfolio was 93.2% leased as of September 30, 2024, with a total of 3.6 million square feet of new and extended leases executed[17]. - Total assets decreased to $3.854 billion as of September 30, 2024, from $4.193 billion at the end of 2023, primarily due to a reduction in cash and cash equivalents[44]. - Total liabilities decreased to $1.728 billion as of September 30, 2024, from $1.927 billion at the end of 2023, indicating improved financial leverage[44]. - The company recorded gains on sales of properties amounting to $11.050 million in Q3 2024, compared to $7.154 million in Q3 2023, showcasing effective asset management strategies[43]. Debt and Financial Strategy - LXP's total consolidated debt was $1.6 billion with a weighted-average interest rate of 3.804% as of September 30, 2024[20]. - LXP entered into forward interest rate swap agreements for $250.0 million of term loans at an average interest rate of 4.31% and $82.5 million of Trust Preferred Securities at 5.20%[18][19]. - The company emphasizes the importance of Cash Base Rent as an indicator of its ability to fund cash needs[31]. Risks and Uncertainties - Future performance may be impacted by various risks including economic conditions, competition, and supply chain disruptions[24]. - LXP's ability to achieve estimates of net income and Adjusted Company FFO for the year ending December 31, 2024, is uncertain[24]. Operational Costs - Depreciation and amortization expenses increased to $48.387 million in Q3 2024 from $45.570 million in Q3 2023, indicating rising costs associated with asset management[43]. - Non-recurring costs for the three months ended September 30, 2024, amounted to $1.538 million[46]. - The company reported no impairment charges for real estate during the three months ended September 30, 2024, compared to $16.490 million in the same period of 2023[46]. - Cash and cash equivalents dropped to $54.971 million as of September 30, 2024, down from $199.247 million at the end of 2023, highlighting liquidity challenges[44]. Investor Relations - The company has a dedicated Investor Relations team for inquiries and further information[24].

Financial Data and Key Metrics Changes - The company reported total gross revenues of approximately $86 million for Q3 2024, with property operating expenses of about $15 million, resulting in adjusted company FFO of $0.16 per diluted common share or approximately $47 million [28][29] - Same-store NOI increased by 5.4% compared to the same period in 2023, with the same-store portfolio being 99.2% leased at quarter end [30] - The company tightened its 2024 adjusted company FFO guidance to a new range of $0.63 to $0.64 per diluted common share [29] Business Line Data and Key Metrics Changes - The company achieved second-generation leasing volume of approximately 490,000 square feet, with Base and Cash Base rental increases of approximately 38% and 22%, respectively [7] - The lease-up of a 250,000 square foot facility in Columbus, Ohio, was completed, with a stabilized cash yield estimated at 8.5% [15][19] - The company sold a 458,000 square foot industrial facility in Cleveland for approximately $29 million and a 2.2 million square foot portfolio in Chicago for $137 million [9][18] Market Data and Key Metrics Changes - The national industrial market saw a vacancy rate increase to 6.4% in Q3 2024, up from 6.1% in Q2 2024 [22] - U.S. net absorption for Q3 was 29.4 million square feet, down from over 46.3 million square feet in Q2, with significant negative absorption in California and the Northeastern U.S. [22][23] - The company's top 10 markets reported over 25 million square feet of positive absorption, demonstrating relative strength compared to the broader market [23] Company Strategy and Development Direction - The company continues to focus on enhancing its internal growth profile through the lease-up of 4 million square feet available for lease and capturing mark-to-market opportunities [13] - The company is redeploying capital from asset sales into the Sun Belt markets, where it has scale and market expertise, with over 70% of its portfolio now located in these regions [9][46] - The company is also interested in build-to-suit opportunities and acquisitions that align with its target markets [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding leasing activity, noting an increase in tenant activity and RFP traffic [24][49] - The company anticipates cash flow increases of approximately 40% on remaining 2024 lease expirations, with a tenant retention rate of approximately 94% [25][30] - Management commented on the potential impact of government spending programs on manufacturing support, indicating a consistent focus across political parties [41] Other Important Information - The company announced an annualized dividend increase of $0.02 per common share, representing a 3.8% increase over the prior dividend [12] - The company executed interest rate swaps to increase the percentage of fixed or swapped debt to approximately 94% for 2025 and 2026, reducing future projected interest expenses [11][32] Q&A Session Summary Question: Details on Ocala full building user and Greenville/Spartanburg properties - Management is still working with a tenant in Ocala and is optimistic about progress, while Greenville is seeing increased interest [36][37] Question: Update on Phoenix land purchase option and remaining acreage - The cash cap rate on the ground lease is about 6%, with ongoing build-to-suit inquiries on the remaining site [38] Question: Leasing spread expectations for 2025 and 2026 - Known move-outs include a 124,000 square foot lease and a 1 million square foot lease in Richmond, with remaining expirations projected to be 34% below market for 2025 [40] Question: Non-core asset sales and remaining assets - The company has a few assets in non-core markets that may be monetized over time, including properties in Kansas City and Philadelphia [42] Question: Thoughts on retiring trust preferred securities - Management indicated that the trust preferred securities are covenant-light and have value, but discussions for potential retirement at a discount are ongoing [43] Question: Clarification on Sun Belt exposure and market scale - The company is redeploying capital into the Sun Belt but still values lower Midwest markets, with over 70% of rents now from the Sun Belt [46] Question: Activity in larger leases - There has been an increase in activity for larger leases, with expectations for several deals to be signed soon [48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________________ to ________________ Commission File Number 1-12386 LXP INDUSTRIAL TRUST (Exact name of registrant as specified in its charter) Maryland ...

LXP Industrial (LXP) came out with quarterly funds from operations (FFO) of $0.16 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.18 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $0.16 per share when it actually produced FFO of $0.16, delivering no surprise.Over the last four quarters, the company has not been able to surpass consensus FFO estimates.LXP Industri ...