Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q2 2023 Earnings Presentation
31 slides from Lxp Industrial Trust's earnings presentation, Aug 2, 2023
Slide 1: Investor Presentation Second Quarter 2023
INVESTOR PRESENTATION SECOND QUARTER 2023
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 fundamentals continue to drive 2 demand, occupancy and rent growth Platform primed for long-t
Slide 4: 2023 Execution
LXP INDUSTRIAL TRUST 2023 Execution1 Industrial Development ▪ Invested ~$62 million in warehouse development projects, with an additional $77 million to fund over the balance of 2023, excluding partner promotes. ▪ Completed core and shell construction seven of warehouse/distribution facilities total
Slide 5: Clear Strategic Focus
LXP INDUSTRIAL TRUST Clear Strategic Focus GROWTH ▪ Multi-channel industrial growth strategy – purchases, build-to-suit, development and sale-leasebacks SECTOR Strategy ▪ Single-tenant, well-located, Class A warehouse/distribution assets in the Sunbelt and lower Midwest OPPORTUNITY ▪ Grow cash flow
Slide 6: Warehouse/Distribution Portfolio Highlights
LXP INDUSTRIAL TRUST Warehouse/Distribution Portfolio Highlights1 Class A warehouse/distribution properties with modern specs in top markets. Portfolio Level Asset Level # of Properties 109 Average Building Size (SF) 492,961 Square Feet(Million) 52.7 Average Clear Height6 33.0’ % Leased 99.5% Averag
Slide 7: Sunbelt & Lower Midwest Investment Focus
LXPINDUSTRIAL LXP INDUSTRIALTRUST TRUST Sunbelt & Lower Midwest Investment Focus These industrial 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 7 1. Based on CoSta
Slide 8: Diversified Warehouse/Distribution Portfolio
LXP INDUSTRIAL TRUST Diversified Warehouse/Distribution Portfolio1 Top 10 Tenants Lease Tenants2 # of Leases % of SF3,4 % of ABR3,5 Expirations Amazon 6 2026–2033 7.2% 6.7% Nissan 2 2027 5.5% 4.8% Kellogg 3 2027–2029 5.2% 3.5% Wal-Mart 3 2024–2031 4.4% 3.2% GXO Logistics 3 2024-2028 3.1% 2.7% Watco
Slide 9: Attractive Warehouse/Distribution Rent Rollover
LXP INDUSTRIAL TRUST Attractive Warehouse/Distribution Rent Rollover1 Significant Mark-to-Market Opportunity Lease Rollover Schedule2 $50,000 $40,000 15.1% ($ in thousands) 12.2% $30,000 11.3% 10.2% 8.8% 7.6% 7.1% 7.1% $20,000 $10,000 2.1% 0.5% $0 Actual Lease Escalations3 Current/Forecasted Rental
Slide 10: Development Highlights
LXP INDUSTRIAL TRUST Development Highlights1 Development Land Bank (Developable Acreage) • Leased seven industrial facilities (4.4M SF) since 2021 Phoenix – 320 • Available for lease - ~3.8 Million SF Indianapolis – 116 523 Acres Columbus – 73 Atlanta – 14 1Q ▪ Achieved core and shell completion of
Slide 11: Development Pipeline Summary
LXP INDUSTRIAL TRUST Development Pipeline Summary Second Quarter 2023 Spec Development Current Projects Actual/Estimated # of Estimated Project Base Building % Leased (As of Estimated Project (% Owned) Buildings Market Estimated SF Cost ($000)1 Completion Date 6/30/2023) Placed In Service Date Conso
Slide 12: New Lease – Phoenix Development Project (Cotton 303)
LXP INDUSTRIAL TRUST New Lease – Phoenix Development Project (Cotton 303) 880,678 SF Class A Warehouse/Distribution Portfolio ▪ Located in Goodyear, AZ in the Southwest Valley of Phoenix - ▪ Completed and placed in service the pre-leased 392K SF building in boasts record-breaking market dynamics dri
Slide 13: New Lease – Columbus Development Project (The Cubes at ETNA East)
LXP INDUSTRIAL TRUST New Lease –Columbus Development Project (The Cubes at ETNA East) 1,074,840 SF Class A Warehouse/Distribution Facility ▪ Located in East Columbus submarket with direct access to/frontage ▪ Achieved core and shell building completion on September 30, 2022 on I-70, adjacent to a br
Slide 14: Greenville-Spartanburg Development Project (Smith Farms)
LXP INDUSTRIAL TRUST Greenville-Spartanburg Development Project (Smith Farms) 2,194,708 SF Class A Warehouse/Distribution Portfolio ▪ 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 primary sub
Slide 15: Central Florida Development Project (Ocala)
LXP INDUSTRIAL TRUST Central Florida Development Project (Ocala) 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
Slide 16: Indianapolis Development Project (Mt. Comfort)
LXP INDUSTRIAL TRUST Indianapolis Development Project (Mt. Comfort) 1,053,360 SF Class A Warehouse/Distribution Facility ▪ Known as the “Crossroads of America”, Indianapolis provides access to ▪ JV acquired the adjacent 116 developable acres that can five major interstate highways and the world’s se
Slide 17: Central Florida Development Project (South Shore)
LXP INDUSTRIAL TRUST Central Florida Development Project (South Shore) 270,885 SF Class A Warehouse/Distribution Portfolio ▪ Located in Ruskin, Florida, a submarket of Tampa with direct access to I-75. ▪ Tampa Bay has experienced strong leasing activity for existing facilities with limited spec cons
Slide 18: Capital Structure Details
LXP INDUSTRIAL TRUST Capital Structure Details1 Amount Interest Rate/ Debt ($ in Millions) Coupon Unsecured Credit Facility Due 2026 $ 0.0 SOFR + 0.85% Preferred Trust Equity, Preferred, Unsecured Bonds Due 2024 198.9 4.400% Mortgage 2.1% 2.9% Debt, 1.5% Unsecured Term Debt, Unsecured Bonds Due 2030
Slide 19: 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 71.4% $450,000 2.7% 2.4% $400,000 Unencumbered Assets $4.5B $350,000
Slide 20: Corporate Responsibility
LXP INDUSTRIAL TRUST Corporate Responsibility Top-ranked 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 compa
Slide 21: Environmental
LXP INDUSTRIAL TRUST Environmental Environmental Targets1 Actions ▪ Track and monitor all landlord-paid utilities and track tenant utility data wherever possible ▪ 25% reduction in operational, landlord-controlled Scope 1 and 2 GHG emissions of real estate investments over 10 years2 ▪ Strategically
Slide 22: Social
LXP INDUSTRIAL TRUST Social Actions Performance ▪ Routinely engage with our tenants to understand leasing and operational ▪ Conducted a tenant feedback survey through Kingsley Associates (KA), needs at our assets and provide tools and resources to promote achieving a satisfaction score in excess of
Slide 23: Governance & Resilience
LXP INDUSTRIAL TRUST Governance & Resilience Governance Actions Performance ▪ Strive to implement best governance practices, mindful of the concerns ▪ Performed enterprise risk assessments and management succession planning of our shareholders ▪ Maintained a Stakeholder Engagement Policy to disclose
Slide 24: Corporate Governance
LXP INDUSTRIAL TRUST Corporate Governance Board of Trustees: Continual refresh of Board with a diverse range of relevant backgrounds JAMIE LAWRENCE T. WILSON HANDWERKER GRAY EGLIN Lead Independent Independent Chairman Trustee Trustee ▪ Chairman, CEO & President – LXP Industrial Trust ▪ Partner, KSH
Slide 25: 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 26: 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 27: Appendix
LXP INDUSTRIAL TRUST Appendix 27
Slide 28: Other Property Portfolio
LXP INDUSTRIAL TRUST Other Property Portfolio Portfolio Metrics1 # of Properties 7 Square Feet(Million) 1.4 Net Operating Income (Millions)2 $5.1 80% Stabilized Portfolio % Leased3 99.4% Weighted-Average Lease Term (Years)4 1.9 Investment Grade Tenancy5 36.6% Average Age of Portfolio (Years)6 31.5 %
Slide 29: Special Purpose Industrial Joint Venture Portfolio
LXP INDUSTRIAL TRUST Special Purpose Industrial Joint Venture Portfolio1 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
Slide 30: Office Joint Venture Portfolio
LXP INDUSTRIAL TRUST Office Joint Venture Portfolio1 Square Lease Address City State Market Footage Expiration 25 Lakeview Drive Jessup PA Philadelphia, PA 150,000 2027 3902 Gene Field Road St. Joseph MO Kansas City, MO 98,849 2027 2221 Schrock Road Columbus OH Columbus, OH 42,290 2027 500 Olde Wort
Slide 31: LXP Industrial Trust, One Penn Plaza, New York
LXP INDUSTRIAL TRUST ■ ONE PENN PLAZA ■ SUITE 4015 ■ NEW YORK, NY 10119 ■ WWW.LXP.COM