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LXP Industrial Trust reports strong leasing activity

EditorEmilio Ghigini
Published 10/12/2024, 07:28
LXP
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LXP Industrial Trust (Market cap: $2.75 billion), a real estate investment trust (REIT) specializing in industrial properties, has provided an update on its operating and capital activities. The announcement was made in conjunction with the company's participation at the Jefferies Real Estate Conference held in Miami.

According to InvestingPro data, the company maintains a healthy dividend yield of 5.91% and has consistently maintained dividend payments for 31 consecutive years.

For the fourth quarter of 2024 to date, LXP has successfully completed new leases and lease extensions totaling approximately 500,000 square feet. This leasing activity has resulted in a 28.9% increase in Cash Base Rents.

Over the entire year, the company has leased around 4 million square feet, achieving a 37.6% rise in Cash Base Rents for second generation leases, not accounting for tenant improvement reimbursements in one particular lease. The company's strong operational performance is reflected in its gross profit margin of 82.71% for the last twelve months.

However, discussions with a prospective full building user for LXP's 1.1 million square foot facility in Ocala, Florida have been suspended. The company is actively seeking a tenant for this property and the remaining space in its development portfolio.

In terms of acquisitions, LXP has recently expanded its portfolio. Following its third-quarter earnings report, the company acquired a property in Houston and two in Atlanta for a combined purchase price of approximately $124 million. Additionally, a property in Savannah was purchased for about $34 million in November.

InvestingPro analysis indicates the company is currently trading near its Fair Value, with a strong current ratio of 2.78, suggesting solid liquidity to support its expansion strategy. Get access to 7 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

In a significant transaction this December, the tenant occupying leased land owned by LXP in Phoenix, Arizona exercised their purchase option. This resulted in the acquisition of the property for approximately $87 million.

This report is based on information from an 8-K filing and reflects the company's current performance and strategic moves in the real estate market. LXP Industrial Trust, formerly known as Lexington Realty Trust (NYSE:LXP), is headquartered in New York and is listed on the New York Stock Exchange under the ticker LXP. The company's preferred stock is also listed as LXPPRC on the same exchange.

In other recent news, LXP Industrial Trust reported strong third-quarter earnings for 2024, with a 5.4% increase in same-store Net Operating Income (NOI). The real estate investment trust achieved significant leasing milestones, including a 250,000 square foot development in Columbus (WA:CLC), Ohio, and a 1.1 million square foot project in Ocala, Florida. The company also sold assets in Cleveland and Chicago, reinvesting the $166 million proceeds in the Sun Belt region.

LXP Industrial Trust's adjusted Funds From Operations (FFO) per diluted share for the quarter was $0.16, with an annual guidance of $0.63 to $0.64. The company's portfolio was 99.2% leased, demonstrating its strategic growth and solid performance.

In addition, the company authorized a 3.8% dividend increase. Over 70% of LXP's portfolio is now invested in the Sun Belt markets, indicating a strategic focus on high-growth regions. These recent developments reflect LXP Industrial Trust's successful navigation of market conditions and strategic positioning for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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