Q1 2024 LXP Industrial Trust Earnings Call Transcript
Key Points
- LXP Industrial Trust reported first quarter results consistent with expectations, focusing on development, leasing, and capitalizing on build-to-suit investment opportunities.
- The company leased approximately 1.6 million square feet after the quarter end, anticipating strong second quarter volumes with active lease renewal negotiations.
- LXP Industrial Trust has increased its 2024 same-store NOI forecast to 4%-5%, up from the previous range of 3.5%-4.5%, indicating potential growth in net operating income.
- The company committed to a build-to-suit project of approximately 625,000 square feet, highlighting its strategy to invest in newly constructed assets on accretive terms.
- LXP Industrial Trust maintains good liquidity with effective management of debt maturities extended out to 2027, aiming to achieve a lower leverage target.
- Renewals are taking longer to negotiate due to macroeconomic uncertainty and a disconnect between market rents and tenants' bargaining perspectives.
- The company faces challenges in the leasing market, as evidenced by slow leasing volume in the first quarter and flat quarter-over-quarter rents in target markets.
- There is a competitive pressure in the market, with other owners possibly offering more aggressive rents and concessions to attract tenants.
- LXP Industrial Trust's development pipeline stabilization is still in progress, with some uncertainty around the lease-up of larger to-be-stabilized buildings.
- Despite maintaining guidance, the company notes potential offsets such as higher interest expenses and the impact of developments not yet contributing to same-store NOI.
Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the LXP Industrial Trust first-quarter 2024 earnings call and webcast. (Operator Instructions)
I would now like to turn the conference over to Heather Gentry, Investor Relations. Please go ahead.
Thank you, operator, and welcome to LSC Industrial Trust's first-quarter 2024 earnings conference call and webcast. The earnings release was distributed this morning. And both the release and quarterly supplemental are available on our website in the Investors section and will be furnished to the SEC on a Form 8K. Certain statements made during this conference call regarding future events, expected results may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. LXP believes that these statements are based on reasonable assumptions.
However, certain factors and risks, including those included in today's
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
