LXP Industrial Trust (LXP) Q4 2024 earnings summary

Executive summary

• Fourth quarter results featured strong leasing outcomes, nearly 1 million sq ft leased, and significant rental increases, with portfolio repositioned toward high-quality, Class A industrial assets in resilient Sunbelt and Midwest markets, now totaling 119 properties and 57.8M SF, 93.6% leased.

• Completed $158M in acquisitions and $223M in dispositions, including the sale of remaining office assets and several industrial properties, with proceeds redeployed into Build-to-Suit and Class A Sunbelt assets.

• Investment grade tenancy is ~47%, with top tenants including Amazon, Nissan, and Walmart; 75% of the portfolio is in Sunbelt markets.

• Development program completed 9.1M SF since 2019, with 3.4M SF of first-generation space available for lease.

• Balance sheet strengthened, ending 2024 with net debt to Adjusted EBITDA at 5.9x.

Financial highlights

• Fourth quarter gross revenues were $100.9 million, including $15 million from a sales-type lease related to the Phoenix ground lease sale.

• Adjusted Company FFO for Q4 was $0.16 per diluted share ($47 million); full year 2024 adjusted company FFO was $0.64 per diluted share ($189.4 million).

• Same-store NOI increased 4.1% in Q4 year-over-year; full year same-store NOI growth was 5%.

• Base and cash base rents increased up to 66% and 43% on new leases, with 4.5 million sq ft leased/extensions in 2024.

• Net debt to adjusted EBITDA reduced to 5.9x at year-end.

Outlook and guidance

• 2025 adjusted company FFO guidance is $0.61–$0.65 per diluted share, reflecting the impact of big box leasing outcomes and excluding certain items.

• Guidance incorporates higher interest expense, lower interest income, and less capitalized interest due to project completions.

• Same-store NOI growth for 2025 is estimated at 3%–4%.

• Mark-to-market opportunity on leases expiring through 2030 estimated at ~20%, potentially increasing annual cash rent by $35M (18% of FFO).

• The low end of guidance assumes no big box leases; the high end assumes all three are leased in H2 2025.