Q3 2024 LXP Industrial Trust Earnings Call Transcript
Key Points
- LXP Industrial Trust (LXP) reported strong leasing outcomes with a same-store NOI growth of 5.4% in the third quarter.
- The company achieved significant rental increases, with second-generation leasing volume resulting in base and cash base rental increases of approximately 38% and 22%, respectively.
- LXP successfully leased a 250,000 square foot development project in Columbus, Ohio, contributing to its development portfolio progress.
- The company increased its exposure in the Sunbelt markets by acquiring a $34 million industrial facility in Savannah and is in diligence on additional assets in Houston and Atlanta.
- LXP announced an annualized dividend increase of $0.02 per common share, representing a 3.8% increase over the prior dividend, reflecting its commitment to returning value to shareholders.
- The national industrial market is experiencing rising vacancy rates, with a reported third-quarter national vacancy rate of 6.4%, up from 6.1% in the second quarter.
- LXP faces challenges with tenant move-outs, including a known move-out in the Richmond market affecting 1 million square feet.
- The company is dealing with a slow-moving transaction market, which impacts the pace of leasing and sales activities.
- LXP's portfolio has a significant mark-to-market opportunity, with current rents estimated to be approximately 23% below market through 2029, indicating potential underperformance in rental income.
- The company incurred one-time charges in 2024 for employee severance costs, impacting its financial results with an estimated $1.8 million charge.
Good morning, and welcome to LXP Industrial Trust third-quarter 2024 earnings call and webcast. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the call over to Heather Gentry, Investor Relations. Please go ahead.
Thank you, operator. Welcome to LXP Industrial Trust's third-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 8-K.
Certain statements made during this conference call regarding future events and 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 earnings press release, and those described in reports
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