LXP Industrial Trust (LXP, Financial) announced its Q3 2023 results on October 31, 2023. The real estate investment trust, focusing on single-tenant warehouse/distribution real estate investments, reported a net income attributable to common shareholders of $11.0 million, or $0.04 per diluted common share.
Financial Highlights
LXP's Adjusted Company Funds From Operations (FFO) available to all equityholders and unitholders - diluted was $51.9 million, or $0.18 per diluted common share. The company saw a 5.0% increase in Industrial Same-Store NOI in the third quarter compared to the same period in 2022.
During the quarter, LXP completed 481,500 square feet of new and extended leases, raising Industrial Base and Cash Base Rents by 26.3% and 15.9%, respectively. The company also leased a speculative, 304,884 square foot development project in the Greenville-Spartanburg, South Carolina market.
Furthermore, LXP disposed of two office properties for an aggregate gross sale price of $48.1 million and completed the forward purchase of a newly-constructed, 124,450 square foot warehouse/distribution facility in the Dallas, Texas market for approximately $15.0 million.
Subsequent Events
Post the quarter, LXP completed 1,075,764 square feet of new and extended leases, raising Base and Cash Base rents by 56.7% and 29.9%, respectively, excluding a fixed rate renewal.
Commentary
T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented
We are pleased with our third quarter accomplishments, including the sale of the Philadelphia and New Jersey office assets and the execution of 300,000 square feet of additional leasing in our development portfolio. Year to date, we’ve executed 5.8 million square feet of new leases and extensions, increasing Base and Cash Base rents 51.1% and 33.3%, respectively, on non-development leasing adjusted for two fixed rate renewals. Our leasing team continues to deliver strong mark-to-market outcomes, that, together with higher average annual escalators on new leases, are driving robust same-store industrial NOI growth.”
Financial Results
For the quarter ended September 30, 2023, total gross revenues were $85.4 million, compared with total gross revenues of $80.1 million for the quarter ended September 30, 2022. The increase is primarily attributable to revenue from acquisitions, market rent increases, and stabilized development projects.
Net income attributable to common shareholders for the quarter ended September 30, 2023, was $11.0 million, or $0.04 per diluted share, compared with net income attributable to common shareholders for the quarter ended September 30, 2022, of $21.8 million, or $0.08 per diluted share.
LXP generated Adjusted Company FFO of $51.9 million, or $0.18 per diluted share, compared to Adjusted Company FFO for the quarter ended September 30, 2022, of $48.1 million, or $0.17 per diluted share.
Dividends/Distributions
LXP announced a regular quarterly common share/unit dividend/distribution for the quarter ending December 31, 2023, of $0.13 per common share/unit payable January 16, 2024, to common shareholders/unitholders of record as of December 29, 2023. This represents an increase of 4% from the previous quarterly per share common share/unit dividend/distribution.
Explore the complete 8-K earnings release (here) from LXP Industrial Trust for further details.
