Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q4 2021 Earnings Presentation
36 slides from Lxp Industrial Trust's earnings presentation, Feb 24, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
INVESTOR PRESENTATION FOURTH QUARTER 2021
Slide 2: Disclosure
LXP INDUSTRIAL TRUST Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve known and unknown risks, uncertainties or other
Slide 3: LXP Offers a Highly Attractive Investment Opportunity
LXP INDUSTRIAL TRUST LXP Offers a Highly Attractive Investment Opportunity Large, high-quality portfolio of primarily single-tenant 1 warehouse/distribution assets in key logistics markets Compelling sector tailwinds driving exceptional 2 demand, occupancy and rent growth Platform primed for growth
Slide 4: 2021 Successful Execution
LXP INDUSTRIAL TRUST 2021 Successful Execution1 Industrial Growth Opportunities ▪ Acquired/completed ~$886 million of warehouse/distribution assets at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 4.9% and 4.6%, respectively. ▪ Invested $111.5 million in on-go
Slide 5: Successfully Transformed Portfolio
LXP INDUSTRIAL TRUST Successfully Transformed Portfolio High-quality portfolio focused on warehouse/distribution assets – well positioned for growth. 20151 2018 74% 1 20211,2 2% 16% 48% 52% 84% 98% Warehouse & Distribution Manufacturing, Cold Storage, Office & Other Other 1. Portfolio breakdown by G
Slide 6: Positive Impact of LXP's Transformation
LXP INDUSTRIAL TRUST Positive Impact of LXP’s Transformation Portfolio and balance sheet transformation has produced favorable results. Portfolio De-leveraging Multiple Expansion Total Shareholder Returns Balance Sheet Leverage1 Price/NTM AFFO Multiple2 Total Shareholder Returns3 114% 6.7x 107% 23.1
Slide 7: Clear Strategic Focus
LXP INDUSTRIAL TRUST Clear Strategic Focus INVESTMENT FOCUS ▪ Multi-channel industrial growth strategy – purchases, build-to-suit, development and sale-leasebacks SECTOR FOCUS Strategy ▪ Single-tenant, well-located, Class A warehouse/distribution assets along the Sunbelt and lower Midwest INVESTMENT
Slide 8: Warehouse/Distribution Portfolio Highlights
LXP INDUSTRIAL TRUST Warehouse/Distribution Portfolio Highlights1 Class A warehouse/distribution properties with modern specs in top markets. Property Level Asset Level # of Properties 109 Average Building Size (SF) 483,839 Square Feet(Million) 52.7 Average Clear Height7 32.7’ Stabilized Portfolio %
Slide 9: Sunbelt & Midwest Investment Focus
LXP INDUSTRIAL TRUST Sunbelt & Midwest Investment Focus These markets experience strong growth characteristics, user demand, and demographic trends. LXP Properties in Top 25 Industrial Markets (by SF)1 Midwest and Sunbelt Property Concentration2 9 1. Based on CoStar.com inventory data. 2. Warehouse/
Slide 10: Diversified Warehouse/Distribution Portfolio
LXP INDUSTRIAL TRUST Diversified Warehouse/Distribution Portfolio Top Tenants Lease % of Base Tenants1 # of Leases % of SF2,3 Expirations Rent2,4 Amazon 6 2026–2033 7.2% 7.6% Nissan 2 2027 5.6% 5.5% Kellogg 3 2007–2029 5.2% 4.2% Undisclosed5 3 2031–2035 2.0% 3.1% Watco 1 2038 0.2% 2.9% FedEx 2 2023
Slide 11: Attractive Warehouse/Distribution Rent Rollover
LXP INDUSTRIAL TRUST Attractive Warehouse/Distribution Rent Rollover Significant Mark-to-Market Opportunity Lease Rollover Schedule1 Lease Escalations2 4% 1% 7% $35,000 14.8% Annual Escalations $30,000 Other Escalations 12.8% ($ in thousands) 11.8% Flat Rent $25,000 11.0% 9.8% Step Downs $20,000 88%
Slide 12: Industrial Investment Activity
LXP INDUSTRIAL TRUST Industrial Investment Activity Disciplined investment activity with a warehouse/distribution focus. Acquisition and Completed Development Volume and Cash Capitalization Rate1 $1,000 7.0% 6.4% $886 6.0% 5.3% 5.4% $800 $728 5.0% 4.6% 5.0% ($ in millions) $704 $612 $600 4.0% 3.0% $
Slide 13: Robust 2021 Warehouse/Distribution Purchase Activity
LXP INDUSTRIAL TRUST Indianapolis, IN Robust 2021 Warehouse/Distribution Purchase Activity PrimaryTenants/Guarantor Market SF (000’s) Initial Basis (mm) Approx. Lease Term (Yrs)1 Wellmade Industries Atlanta 328 $37.6 10 Textron Ground Support/Chief Container Atlanta 396 $47.6 6 Airman/Available for
Slide 14: Strong Development Pipeline
LXP INDUSTRIAL TRUST Strong Development Pipeline Current Projects Project (% Owned) Type Type Estimated SF Estimated Project Cost ($000) Estimated Completion Date % Leased Consolidated The Cubes at Etna East Spec Development Columbus 1,074,840 $72,100 2Q 2022 0% (95%)1,2 Mt. Comfort (80%)1 Spec Deve
Slide 15: Stabilized Development – Atlanta
LXP INDUSTRIAL TRUST Stabilized Development – Atlanta 907,675 SF Class A Warehouse/Distribution Facility ▪ The property offers frontage on I-85 and easy access to ▪ Signed a full-building, seven-year lease in Q4 with 3% annual the interchange I-285, the CSX Intermodal Terminal and rental escalations
Slide 16: Completed Build-to-Suit - Phoenix
LXP INDUSTRIAL TRUST Completed Build-to-Suit - Phoenix 468,182 SF Class A Industrial Facility ▪ Located in Goodyear in the Southwest Valley, Phoenix’s ▪ Ability to expand facility approximately 167,000 SF. leading submarket for net absorption. Site is located just off Loop 303 and offers immediate a
Slide 17: New Development – Columbus
LXP INDUSTRIAL TRUST New Development – Columbus 1,074,840 SF Class A Warehouse/Distribution Facility ▪ Located in East Columbus submarket with direct access to/frontage on ■ Construction is expected to complete in Q3 2022. I-70, adjacent to a brand new full-service Love’s truck stop. ▪ Estimated pro
Slide 18: Ongoing Development – Phoenix
LXP INDUSTRIAL TRUST Ongoing Development – Phoenix 880,678 SF Class A Warehouse/Distribution Portfolio ▪ Located in Goodyear in the Southwest Valley, Phoenix’s leading ▪ Two-building development with 40’ clear heights, cross-dock and submarket for net absorption. multi-tenant design, LED lighting, 1
Slide 19: Ongoing Development – Greenville-Spartanburg
LXP INDUSTRIAL TRUST Ongoing Development –Greenville-Spartanburg 2,194,820 SF Class A Warehouse/Distribution Portfolio ~ Pre-leased 800K in 4Q ▪ Located along the I-85/101 corridor in Spartanburg West, Greenville- ▪ The two larger buildings will feature cross-dock design and 40’ clear Spartanburg’s
Slide 20: Ongoing Development – Indianapolis
LXP INDUSTRIAL TRUST Ongoing Development – Indianapolis 1,053,360 SF Class A Warehouse/Distribution Facility ▪ Known as the “Crossroads of America”, Indianapolis provides access to ▪ JV acquired the adjacent 73-acre site and has an option to acquire a five major interstate highways and the world’s s
Slide 21: Ongoing Development – Central Florida
LXP INDUSTRIAL TRUST Ongoing Development – Central Florida 1,085,280 SF Class A Warehouse/Distribution Facility ▪ Ocala is a rapidly emerging submarket for distribution, with access to ▪ JV has an option to acquire the adjacent 35-acre site that will provide more than 15.5 million people in a four-h
Slide 22: New Investment – Phoenix
LXP INDUSTRIAL TRUST New Investment – Phoenix 420 Acres of Developable Land ▪ Site located in Glendale, Arizona, one mile east of the diamond interchange off Loop 303 with Northern Parkway frontage. ▪ Site will be able to serve Arizona and key markets in the western U.S., including the Port of Long
Slide 23: Flexible Capital Structure
LXP INDUSTRIAL TRUST Flexible Capital Structure1 Amount Interest Rate/ Debt ($ in Millions) Coupon Unsecured Credit Facility Due 20232 $ 0.0 1-Mo. Libor + 90 bps Preferred Equity, Trust Preferred, Unsecured Bonds Due 2024 198.9 4.400% Mortgage 1.6% Debt, 1.4% 2.2% Unsecured Term Debt, Unsecured Bond
Slide 24: Balance Sheet Strategy
LXP INDUSTRIAL TRUST Balance Sheet Strategy Focus on sustaining a strong balance sheet and maintaining investment-grade ratings. Consolidated Debt Maturity Profile ($000’s)1 Credit Metrics Summary1 Adjusted Company FFO Payout Ratio 56.7% $450,000 2.7% 2.4% $400,000 Unencumbered Assets $4.2B $350,000
Slide 25: Leadership Team
LXP INDUSTRIAL TRUST Leadership Team Executive Team: Best-in-class management team with a track record of decisive value creation T. Wilson Eglin Joe Bonventre Beth Boulerice Brendan Mullinix Lara Johnson James Dudley Nabil Andrawis Natasha Roberts Chairman & CEO EVP, COO, EVP, CFO, EVP, CIO EVP, Ma
Slide 26: Corporate Responsibility
LXP INDUSTRIAL TRUST Corporate Responsibility Best-in-class environmental, social, governance, and resilience (“ESG+R”) platform. ▪ Established objectives integrated throughout our investment process, contributing to our ongoing long-term success ▪ Building a responsible program that enhances both c
Slide 27: Corporate Responsibility Execution
LXP INDUSTRIAL TRUST Corporate Responsibility Execution Environmental Social ▪ Benchmarked landlord paid energy, water, waste, ▪ Engaged third-party to distribute tenant survey and and recycling across the portfolio and working to collected and assessed feedback from tenants. expand tenant-paid util
Slide 28: Corporate Responsibility Execution
LXP INDUSTRIAL TRUST Corporate Responsibility Execution Governance Resilience ▪ Performed enterprise risk assessments and ▪ Engaged a third-party consultant to conduct ESG+R management succession planning. acquisition assessments on new acquisitions. ▪ Developed a Stakeholder Engagement Policy to ▪
Slide 29: Non-GAAP Measures-Definitions
LXP INDUSTRIAL TRUST Non-GAAP Measures-Definitions LXP has used non-GAAP financial measures as defined by Regulation G promulgated by the Securities and Exchange Commission in this presentation. LXP believes that the measures defined below are helpful to investors in measuring LXP’s performance or t
Slide 30: Non-GAAP Measures-Definitions, cont.
LXP INDUSTRIAL TRUST Non-GAAP Measures-Definitions, cont. 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
Slide 31: Appendix
LXP INDUSTRIAL TRUST Appendix 31
Slide 32: Green Building Certifications & Energy Ratings
LXP INDUSTRIAL TRUST Green Building Certifications & Energy Ratings1 PropertyName PropertyType CertifiedSF RatingSystem 17505 Interstate Hwy 35W Industrial 500,556 BREEAM USA InUse 255 143rd Avenue Industrial 801,424 BREEAM USA InUse 3405 S. McQueen Rd. Industrial 201,784 BREEAM USA InUse 1021 Tyger
Slide 33: Other Property Portfolio
LXP INDUSTRIAL TRUST Other Property Portfolio Portfolio Metrics1 # of Properties 12 Square Feet(Million) 2.1 Net Operating Income (Millions)2 $25.3 80% Stabilized Portfolio % Leased2 89.4% Weighted-Average Lease Term (Years)3 3.8 Investment Grade Tenancy4 27.3% Average Age of Portfolio (Years)5 26.3
Slide 34: Special Purpose Industrial Joint Venture Portfolio
LXP INDUSTRIAL TRUST Special Purpose Industrial Joint Venture Portfolio Square Lease Address City State Market Footage Expiration 318 Pappy Dunn Blvd. Anniston AL Anniston/Oxford, AL 276,782 2029 4801 North Park Dr. Opelika AL Columbus, GA 165,493 2042 1020 W. Airport Rd. Romeoville IL Chicago, IL 1
Slide 35: Office Joint Venture Portfolio
LXP INDUSTRIAL TRUST Office Joint Venture Portfolio Square Lease Address City State Market Footage Expiration 25 Lakeview Drive Jessup PA Philadelphia, PA 150,000 2027 800 East Canal Street Richmond VA Richmond, VA 330,309 2027-2088 143 Diamond Avenue Parachute CO Parachute, CO 49,024 2035 231 North
Slide 36: LXP Industrial Trust contact details
LXP INDUSTRIAL TRUST ■ ONE PENN PLAZA ■ SUITE 4015 ■ NEW YORK, NY 10119 ■ WWW.LXP.COM