First Quarter 2026 Highlights
- Recorded Net Loss attributable to common shareholders of
$(1.9) million, or$(0.03) per diluted common share. - Generated Adjusted Company Funds From Operations available to all equityholders - diluted (“Adjusted Company FFO”) of
$47.3 million, or$0.80 per diluted common share, compared to$0.78 per diluted common share in the same period in 2025, an increase of 2.6%. - Increased Same-Store NOI 2.0% compared to the same period in 2025.
- Extended lease at 1.1 million square foot
Greenville /Spartanburg facility for additional four years through 2031, following the initial two-year lease signed inMay 2025 . - Completed an additional 0.7 million square feet of new leases and lease extensions, increasing Base and Cash Base Rents by 34.1% and 24.3%, respectively.
- Commenced a 1.2 million square foot speculative development project in
Phoenix, Arizona . - Extended the maturities and reduced pricing on
$600 million unsecured revolving credit facility and$250 million term loan. - Repurchased and retired approximately 325,000 common shares at an average price of
$48.70 per common share.
Subsequent Highlights
- Completed 1.4 million square feet of new leases and lease extensions, increasing Cash Base Rents by 23.4%, bringing year-to-date spreads on Cash Base Rents to 16.3%.
T Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, “Our first quarter results reflect LXP’s continued leasing momentum, with 3.2 million square feet leased year-to-date, underscoring the strength of both our target markets and demand for large-format logistics facilities. This activity included the successful outcome at our 1.1 million square foot facility in
FINANCIAL RESULTS
Revenues
For the quarter ended
Net Income Attributable to Common Shareholders
For the quarter ended
Adjusted Company FFO
For the quarter ended
Dividends
LXP previously announced that it declared a regular quarterly common share dividend for the quarter ending
LXP also previously announced that it declared a cash dividend of
TRANSACTION ACTIVITY
| ONGOING DEVELOPMENT AND REDEVELOPMENT PROJECTS | ||||||||||||
| Project (% owned) | # of Buildings | Market | Estimated Sq. Ft. | Estimated Project Cost ( | GAAP Investment Balance as of ( | LXP Amount Funded as of ( | Estimated Base | % Leased as of | ||||
| Reems & Olive - Building D (95.5%) | 1 | 1,185,000 | $ | 121,900 | $ | 23,953 | $ | 20,230 | 1Q 2027 | — | % | |
| Redevelopment Projects | ||||||||||||
| 1 | Central FL | 350,990 | $ | 9,400 | $ | 17,350 | $ | 3,242 | 4Q 2026 | — | % | |
| 1 | 252,351 | 3,900 | 14,594 | 3,071 | 2Q 2026 | — | % | |||||
| Total Redevelopment Projects | 2 | 603,341 | $ | 13,300 | $ | 31,944 | $ | 6,313 | ||||
| Land Infrastructure Improvements | ||||||||||||
| Reems & Olive (95.5%)(4) | N/A | N/A | 16,200 | 12,952 | 15,547 | N/A | N/A | |||||
| Total | 3 | 1,788,341 | $ | 151,400 | $ | 68,849 | $ | 42,090 | ||||
- Excludes leasing costs, incomplete costs and developer incentive fees or partner promotes, if any.
- Excludes noncontrolling interests' share.
- Estimated project costs exclude estimated tenant improvements and leasing costs.
- Represents infrastructure development costs to prepare the land for vertical development.
LAND HELD FOR INDUSTRIAL DEVELOPMENT
| Project (% owned) | Market | Approximate Acres | GAAP Investment Balance as of ( | LXP Amount Funded as of ( | ||||||
| Consolidated | ||||||||||
| Reems & Olive (95.5%) | 240 | $ | 57,454 | $ | 57,306 | |||||
| Mt. Comfort Phase II (80%) | 116 | 5,879 | 4,761 | |||||||
| ATL Fairburn (100%) | 14 | 1,732 | 1,779 | |||||||
| Total Consolidated Land | 370 | $ | 65,065 | $ | 63,846 | |||||
| Project (% owned) | Market | Approximate Acres | GAAP Investment Balance as of ( | LXP Amount Funded as of ( | ||||||
| Non-Consolidated | ||||||||||
| 48 | $ | 9,085 | $ | 10,746 | ||||||
| 21 | 2,485 | 3,302 | ||||||||
| Total Non-Consolidated Land | 69 | $ | 11,570 | $ | 14,048 | |||||
- Excludes noncontrolling interests’ share.
LEASING
| During the first quarter of 2026, LXP executed new and extended leases: | |||||
| NEW LEASES - | |||||
| Location | Lease Expiration Date | Sq. Ft. | |||
| 03/28 | 85,232 | ||||
| TOTAL NEW LEASES - | 85,232 | ||||
| LEASE EXTENSIONS - | |||||
| Location | Prior Term | New Lease Expiration Date | Sq. Ft. | ||
| 05/27 | 05/31 | 1,091,888 | |||
| 03/26 | 07/31 | 310,000 | |||
| 10/26 | 10/29 | 351,800 | |||
| TOTAL LEASE EXTENSIONS - | 1,753,688 | ||||
- Property consists of 639,800 square feet. During the quarter, the lease for 351,800 square feet was extended to
October 31, 2029 . The lease for the remaining 288,000 square feet has a lease expiration date ofOctober 31, 2026 .
As of
Additionally, LXP executed 1.4 million square feet of new and extended second-generation leases at Cash Base rent spreads of 23.4%, which resulted in a year-to-date increase in Cash Base Rents of 16.3%.
BALANCE SHEET
LXP ended the quarter with net debt to Annualized Adjusted EBITDA of 5.1x. LXP's total consolidated debt was
During the first quarter of 2026, LXP repurchased and retired approximately 325,000 common shares at an average price of
2026 EARNINGS GUIDANCE
LXP estimates net income attributable to common shareholders for the year ended
FIRST QUARTER 2026 CONFERENCE CALL
LXP will host a conference call today,
ABOUT
Contact:
Investor or Media Inquiries for
Phone: (212) 692-7200 E-mail: hgentry@lxp.com
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under LXP's control which may cause actual results, performance or achievements of LXP to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in LXP's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (2) the outbreak of highly infectious or contagious diseases and natural disasters, (3) authorization by LXP's
References to LXP refer to
Non-GAAP Financial Measures - Definitions
LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures.
LXP believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles (“GAAP”), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating LXP's financial performance or cash flow from operating, investing or financing activities or liquidity.
Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest expense, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of real estate or changes in control, impairment charges, gain (loss) on debt satisfaction, net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash purchase option impact of sales-type leases and adjustments for pro rata share of non-wholly owned entities. LXP's calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. LXP believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA. Annualized Adjusted EBITDA is Adjusted EBITDA for the quarter multiplied by four.
Annualized Adjusted EBITDA: Adjusted EBITDA for the quarter multiplied by four.
Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio.
Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements, non-cash sales-type lease income and lease termination income, and includes ancillary income. LXP believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.
Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash income related to sales-type leases, (6) non-cash interest, (7) non-cash charges, net, (8) capitalized interest and internal costs, (9) cash paid for second-generation tenant improvements, and (10) cash paid for second-generation lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), LXP believes it provides a meaningful indication of its ability to fund its cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.
First-Generation Costs: Represents cash spend for tenant improvements, leasing costs and expenditures contemplated at acquisition for recently acquired properties with vacancy. Because all companies do not calculate First Generation Costs the same way, LXP's presentation may not be comparable to similarly titled measures of other companies.
Funds from Operations (“FFO”) and Adjusted Company FFO: LXP believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. LXP believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.
LXP presents FFO available to common shareholders - basic and also presents FFO available to all equityholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into LXP’s common shares, are converted at the beginning of the period. LXP also presents Adjusted Company FFO available to all equityholders - diluted which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio and not comparable from period to period. LXP believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of LXP’s operating performance or as an alternative to cash flow as a measure of liquidity.
GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of LXP's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate, (or has generated) divided by the acquisition/completion cost, (or sale price). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy excluding developer incentive fees or partner promotes, if any.
Net Operating Income (“NOI”): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of LXP's historical or future financial performance, financial position or cash flows. LXP defines NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash and purchase option income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, LXP's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. LXP believes that net income is the most directly comparable GAAP measure to NOI.
Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for the period commencing
Second-Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation. LXP believes that second-generation building improvements represent an investment in existing stabilized properties.
Stabilized Portfolio: All real estate properties other than non-stabilized properties. LXP considers stabilization to occur upon the earlier of 90% occupancy of the property or one year from the cessation of major construction activities. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction. If some portions of a development project are substantially complete and ready for use and other portions have not yet reached that stage, LXP ceases capitalizing costs on the completed portion of the project but continues to capitalize costs for the incomplete portion. When a portion of the development project is substantially complete and ready for its intended use, the project is placed in service and depreciation commences.
| LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) | |||||||
| Three months ended | |||||||
| 2026 | 2025 | ||||||
| Gross revenues: | |||||||
| Rental revenue | $ | 84,976 | $ | 87,893 | |||
| Other revenue | 972 | 970 | |||||
| Total gross revenues | 85,948 | 88,863 | |||||
| Expense applicable to revenues: | |||||||
| Depreciation and amortization | (46,985 | ) | (50,512 | ) | |||
| Property operating | (16,735 | ) | (17,129 | ) | |||
| General and administrative | (10,254 | ) | (10,390 | ) | |||
| Non-operating income | 1,535 | 520 | |||||
| Interest and amortization expense | (13,217 | ) | (16,280 | ) | |||
| Loss on debt satisfaction, net | (299 | ) | (350 | ) | |||
| Transaction costs | (15 | ) | — | ||||
| Gain on sale or disposal of, and recovery on, real estate, net | 2,304 | 24,635 | |||||
| Income before provision for income taxes and equity in losses of non-consolidated entities | 2,282 | 19,357 | |||||
| Provision for income taxes | (136 | ) | (215 | ) | |||
| Equity in losses of non-consolidated entities | (2,437 | ) | (980 | ) | |||
| Net income (loss) | (291 | ) | 18,162 | ||||
| Net loss attributable to noncontrolling interests | 52 | 816 | |||||
| Net income (loss) attributable to | (239 | ) | 18,978 | ||||
| Dividends attributable to preferred shares - Series C | (1,572 | ) | (1,572 | ) | |||
| Allocation to participating securities | (131 | ) | (127 | ) | |||
| Net income (loss) attributable to common shareholders | $ | (1,942 | ) | $ | 17,279 | ||
| Net income (loss) attributable to common shareholders - per common share basic | $ | (0.03 | ) | $ | 0.30 | ||
| Weighted-average common shares outstanding - basic | 58,163,030 | 58,341,212 | |||||
| Net income (loss) attributable to common shareholders - per common share diluted | $ | (0.03 | ) | $ | 0.30 | ||
| Weighted-average common shares outstanding - diluted | 58,163,030 | 58,459,654 | |||||
| LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) | |||||||
| Assets: | |||||||
| Real estate, at cost | $ | 3,909,897 | $ | 3,908,485 | |||
| Real estate - intangible assets | 305,841 | 305,841 | |||||
| Land held for development | 65,065 | 82,971 | |||||
| Investments in real estate under construction | 68,849 | 41,769 | |||||
| Real estate, gross | 4,349,652 | 4,339,066 | |||||
| Less: accumulated depreciation and amortization | (1,196,713 | ) | (1,151,513 | ) | |||
| Real estate, net | 3,152,939 | 3,187,553 | |||||
| Right-of-use assets, net | 7,583 | 8,721 | |||||
| Cash and cash equivalents | 130,112 | 170,394 | |||||
| Restricted cash | 168 | 257 | |||||
| Investments in non-consolidated entities | 29,301 | 31,430 | |||||
| Deferred expenses, net | 40,704 | 35,068 | |||||
| Rent receivable - current | 3,963 | 3,454 | |||||
| Rent receivable - deferred | 85,279 | 84,631 | |||||
| Other assets | 16,652 | 15,514 | |||||
| Total assets | $ | 3,466,701 | $ | 3,537,022 | |||
| Liabilities and Equity: | |||||||
| Liabilities: | |||||||
| Mortgages and notes payable, net | $ | 48,162 | $ | 49,541 | |||
| Term loan payable, net | 247,532 | 249,053 | |||||
| Senior notes payable, net | 953,104 | 952,693 | |||||
| Trust preferred securities, net | 100,133 | 100,113 | |||||
| Dividends payable | 43,536 | 44,715 | |||||
| Operating lease liabilities | 7,914 | 9,134 | |||||
| Accounts payable and other liabilities | 38,542 | 54,553 | |||||
| Accrued interest payable | 11,425 | 9,218 | |||||
| Deferred revenue - including below-market leases, net | 2,724 | 3,030 | |||||
| Prepaid rent | 14,459 | 16,594 | |||||
| Total liabilities | 1,467,531 | 1,488,644 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Preferred shares, par value | |||||||
| Series C Cumulative Convertible Preferred, liquidation preference | 94,016 | 94,016 | |||||
| Common shares, par value | 6 | 6 | |||||
| Additional paid-in-capital | 3,305,816 | 3,313,884 | |||||
| Accumulated distributions in excess of net income | (1,413,734 | ) | (1,371,654 | ) | |||
| Accumulated other comprehensive income | 1,403 | 427 | |||||
| Total shareholders’ equity | 1,987,507 | 2,036,679 | |||||
| Noncontrolling interests | 11,663 | 11,699 | |||||
| Total equity | 1,999,170 | 2,048,378 | |||||
| Total liabilities and equity | $ | 3,466,701 | $ | 3,537,022 | |||
| LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES EARNINGS PER SHARE (Unaudited and in thousands, except share and per share data) | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| EARNINGS PER SHARE: | ||||||
| Basic: | ||||||
| Net income (loss) attributable to common shareholders | $ | (1,942 | ) | $ | 17,279 | |
| Weighted-average number of common shares outstanding - basic | 58,163,030 | 58,341,212 | ||||
| Net income (loss) attributable to common shareholders - per common share basic | $ | (0.03 | ) | $ | 0.30 | |
| Diluted: | ||||||
| Net income (loss) attributable to common shareholders - basic | $ | (1,942 | ) | $ | 17,279 | |
| Weighted-average common shares outstanding - basic | 58,163,030 | 58,341,212 | ||||
| Effect of dilutive securities: | ||||||
| Unvested share-based payment awards | — | 118,442 | ||||
| Weighted-average common shares outstanding - diluted | 58,163,030 | 58,459,654 | ||||
| Net income (loss) attributable to common shareholders - per common share diluted | $ | (0.03 | ) | $ | 0.30 | |
| LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES | |||||||
| ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION | |||||||
| (Unaudited and in thousands, except share and per share data) | |||||||
| Three Months Ended | |||||||
| 2026 | 2025 | ||||||
| FUNDS FROM OPERATIONS: | |||||||
| Basic and Diluted: | |||||||
| Net income (loss) attributable to common shareholders | $ | (1,942 | ) | $ | 17,279 | ||
| Adjustments: | |||||||
| Depreciation and amortization - real estate | 45,233 | 48,822 | |||||
| Impairment charges - real estate, from our share of non-consolidated entities | 1,250 | — | |||||
| Amortization of leasing commissions | 1,752 | 1,690 | |||||
| Joint venture and noncontrolling interest adjustment | 1,332 | 1,207 | |||||
| Gain on sale or disposal of, and recovery on, real estate, net | (2,304 | ) | (24,635 | ) | |||
| FFO available to common shareholders - basic | 45,321 | 44,363 | |||||
| Preferred dividends | 1,572 | 1,572 | |||||
| Amount allocated to participating securities | 131 | 127 | |||||
| FFO available to all equityholders - diluted | 47,024 | 46,062 | |||||
| Transaction costs(1) | 15 | — | |||||
| Loss on debt satisfaction, net | 299 | 350 | |||||
| Adjusted Company FFO available to all equityholders - diluted | 47,338 | 46,412 | |||||
| FUNDS AVAILABLE FOR DISTRIBUTION: | |||||||
| Adjustments: | |||||||
| Straight-line adjustments | (626 | ) | (959 | ) | |||
| Lease incentives | 500 | 446 | |||||
| Amortization of above/below market leases | (302 | ) | (1,115 | ) | |||
| Lease termination payments, net | (76 | ) | 1,600 | ||||
| Non-cash interest expense | 1,025 | 1,079 | |||||
| Non-cash charges, net | 2,980 | 3,126 | |||||
| Capitalized interest and internal costs | (536 | ) | (219 | ) | |||
| — | (452 | ) | |||||
| (21 | ) | (1,736 | ) | ||||
| Joint venture and noncontrolling interest adjustment | (485 | ) | (57 | ) | |||
| Company Funds Available for Distribution | $ | 49,797 | $ | 48,125 | |||
| Per Common Share Amounts | |||||||
| Basic: | |||||||
| FFO | $ | 0.78 | $ | 0.76 | |||
| Diluted: | |||||||
| FFO | $ | 0.80 | $ | 0.78 | |||
| Adjusted Company FFO | $ | 0.80 | $ | 0.78 | |||
| Basic: | |||||||
| Weighted-average common shares outstanding - basic FFO | 58,163,030 | 58,341,212 | |||||
| Diluted: | |||||||
| Weighted-average common shares outstanding - diluted EPS | 58,163,030 | 58,459,654 | |||||
| Preferred shares - Series C | 942,114 | 942,114 | |||||
| Weighted-average common shares outstanding - diluted FFO | 59,105,144 | 59,401,768 | |||||
(1) Transaction costs include costs associated with terminated investments, such as non-refundable deposits and legal fees.
| LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES | |||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||
| 2026 EARNINGS GUIDANCE | |||||||
| Twelve Months Ended | |||||||
| Estimated: | |||||||
| Net income (loss) attributable to common shareholders per diluted common share(1) | $ | — | $ | 0.15 | |||
| Depreciation and amortization | 3.23 | 3.23 | |||||
| Impact of capital transactions | (0.01 | ) | (0.01 | ) | |||
| Estimated Adjusted Company FFO per diluted common share | $ | 3.22 | $ | 3.37 | |||
(1) Assumes all convertible securities are dilutive.
