LXP Industrial Trust (LXP) Q3 2024 earnings summary

Executive summary

• Portfolio is 100% industrial with 118 properties totaling 58.2M SF, 93.2% leased, and focused on Sunbelt and Midwest markets with strong population and job growth.

• Achieved strong third quarter results: 5.4% same-store NOI growth, $0.16 Adjusted Company FFO per share, and robust leasing activity totaling up to 0.7 million sq ft with significant rent increases.

• Completed key asset sales in non-core markets and reinvested proceeds into target markets, expanding Sunbelt exposure.

• Board authorized a 3.8% increase in the annualized common share dividend, effective Q1 2025.

• Published 2023 corporate responsibility report, highlighting sustainability initiatives and portfolio resiliency.

Financial highlights

• Third quarter gross revenues were approximately $86 million; property operating expenses were $15 million, with 91% reimbursed by tenants.

• Adjusted Company FFO was $0.16 per diluted share ($47 million); 2024 guidance tightened to $0.63–$0.64 per share.

• Same-store NOI increased 5.4% year-over-year; same-store portfolio 99.2% leased at quarter end.

• Net debt to Adjusted EBITDA was 6.1x at quarter end; total consolidated debt was $1.6 billion.

• Quarterly dividend increased to $0.135 per share in 2024 from $0.125 in 2023.

Outlook and guidance

• 2024 Adjusted Company FFO guidance narrowed to $0.63–$0.64 per share; net income guidance $0.14–$0.15 per diluted share.

• 2024 same-store NOI growth expected in the range of 4.75% to 5.25%.

• 56% of portfolio leases expire through 2029, with rents 23% below market, offering significant mark-to-market upside.

• 4.0M SF available for lease, with stabilization expected to add $21M in annual cash rent (~11% of FFO).

• Focus remains on leasing vacant development properties and capturing mark-to-market rent opportunities.