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LXP(LXP) - 2024 Q3 - Quarterly Results
LXPLXP(LXP)2024-11-06 20:15

Financial Performance - LXP reported net income attributable to common shareholders of 4.7million,or4.7 million, or 0.02 per diluted share, down from 11.0million,or11.0 million, or 0.04 per diluted share in Q3 2023[6]. - Adjusted Company FFO for Q3 2024 was 46.7million,or46.7 million, or 0.16 per diluted share, compared to 51.9million,or51.9 million, or 0.18 per diluted share in Q3 2023[7]. - The company reported a net income of 5.613millionforQ32024,significantlylowerthan5.613 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 6.533million,comparedto6.533 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 4.689million,adecreasefrom4.689 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 43.472millionforthethreemonthsendedSeptember30,2024,comparedto43.472 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 46.707millionforthethreemonthsendedSeptember30,2024,downfrom46.707 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 44.138million,comparedto44.138 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 0.63and0.63 and 0.64[47]. - FFO diluted per share for the three months ended September 30, 2024, was 0.15,downfrom0.15, down from 0.17 in the same period of 2023[46]. Revenue and Leasing Activity - Total gross revenues for Q3 2024 were 85.6million,aslightincreasefrom85.6 million, a slight increase from 85.4 million in Q3 2023, primarily due to market rent increases[5]. - Rental revenue for Q3 2024 was 84.549million,aslightincreasefrom84.549 million, a slight increase from 83.844 million in Q3 2023, while total gross revenues reached 85.570millioncomparedto85.570 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 136.7millionandacquiredonefacilityforabout136.7 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 3.854billionasofSeptember30,2024,from3.854 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 1.728billionasofSeptember30,2024,from1.728 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 11.050millioninQ32024,comparedto11.050 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 1.6billionwithaweighted−averageinterestrateof3.8041.6 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 82.5millionofTrustPreferredSecuritiesat5.2082.5 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 45.570millioninQ32023,indicatingrisingcostsassociatedwithassetmanagement[43].−Non−recurringcostsforthethreemonthsendedSeptember30,2024,amountedto45.570 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 16.490millioninthesameperiodof2023[46].−Cashandcashequivalentsdroppedto16.490 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].