Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q3 2023 Earnings Presentation
41 slides from Lxp Industrial Trust's earnings presentation, Oct 31, 2023
Slide 1: Quarterly Supplemental Information Third Quarter 2023
Q U A R T E R L Y S U P P L E M E N T A L I N F O R M A T I O N THIRD QUARTER 2023
Slide 2: Table of Contents
TABLE OF CONTENTS September 30, 2023 PAGE PAGE SUMMARY / HIGHLIGHTS 3 TENANT DATA TOP 15 TENANTS 18 FINANCIAL DATA QUARTERLY LEASING SUMMARY 19 CONSOLIDATED BALANCE SHEETS 4 LEASE ROLLOVER SCHEDULE 20 CONSOLIDATED STATEMENTS OF OPERATIONS 5 PROPERTY LEASES AND VACANCIES 21 NON-GAAP FINANCIAL DATA 6
Slide 3: Summary / Highlights
SUMMARY / HIGHLIGHTS September 30, 2023 Quarterly Highlights Portfolio Statistics - Net Income - $0.04 per diluted common share # of Properties: 115 - Adjusted Company FFO - $0.18 per diluted common share # of States: 19 - Completed 481,500 square feet of new and extended leases Square Footage: 53.9
Slide 4: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) September 30, 2023 December 31, 2022 Assets: Real estate, at cost 3,706,146$ 3,691,066$ Real estate - intangible assets 318,549 328,607 Land held for development 84,708 84,412 Investments in real estate under c
Slide 5: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) 2023 2022 2023 2022 Gross revenues: Rental revenue 83,844$ 78,274$ 252,326$ 234,749$ Other revenue 1,578 1,814 5,221 5,392 Total gross revenues 85,422 80,088 257,547 240,141 Expenses applicable to rev
Slide 6: Non-GAAP Financial Data
NON-GAAP FINANCIAL DATA (Unaudited and in thousands, except share and per share data) 2023 2022 2023 2022 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders 11,039$ 21,776$ 10,878$ 70,441$ Adjustments: Depreciation and amortization - real estate 44,596 44,227 13
Slide 7: Non-GAAP Financial Data (Continued)
NON-GAAP FINANCIAL DATA (CONTINUED) (Unaudited and in thousands) 2023 2022 2023 2022 Adjusted Company FFO available to all equityholders and unitholders - diluted 51,926$ 48,132$ 154,839$ 145,112$ FUNDS AVAILABLE FOR DISTRIBUTION Adjustments: Straight-line adjustments (2,213) (2,078) (7,938) (8,893)
Slide 8: Non-GAAP Financial Data (Continued) - NOI
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Net Operating Income ("NOI"): 2023 2022 2023 2022 Net income 12,901$ 23,591$ 16,436$ 76,037$ Interest and amortization expense 10,965 11,255 32,502 32,758 Provision for income taxes 220 271 646 951 Depreciation and amortization 45,570 44,946 137,304 134,645
Slide 9: Non-GAAP Financial Data (Continued) - Adjusted EBITDA
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Adjusted EBITDA: 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Trailing 12 Months Net income attributable to LXP Industrial Trust shareholders 12,664$ (8,048)$ 11,166$ 38,473$ 54,255$ Interest and amortization expense 10,965 10,144 11,393 12,659 45,161 Provision
Slide 10: Select Credit Metrics Summary
SELECT CREDIT METRICS SUMMARY (1) 12/31/2020 12/31/2021 12/31/2022 9/30/2023 Adjusted Company FFO Payout Ratio 55.6% 56.7% 72.4% 72.1% Unencumbered Assets $3.8 billion $4.2 billion $4.5 billion $4.4 billion Unencumbered NOI 89.3% 92.6% 93.4% 93.7% (Debt + Preferred) / Gross Assets 32.5% 33.4% 32.1%
Slide 11: Other Financial Data
OTHER FINANCIAL DATA Future Rent Estimates for Current Leases Year Base Rent (1) Cash Base Rent (1) Difference 2023 - remaining 69,584$ 67,774$ (1,810)$ 2024 271,366 265,485 (5,881) Balance Sheet Other assets 32,584$ The components of other assets are: Deposits 9,886$ Equipment 221 Prepaids 3,704 Ot
Slide 12: Quarterly Investments / Capital Recycling Summary
QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY ACQUISITION TRANSACTIONS: Property Type Square Feet Initial Cost Basis ($000) Month Stabilized Primary Lease Expiration Percent Leased at Acquisition Consolidated 1 Industrial (1) TX 124,450 $ 15,018 N/A N/A 0% 1 124,450 $ 15,018 CAPITAL RECYCLING: P
Slide 13: Development Summary
DEVELOPMENT SUMMARY ONGOING DEVELOPMENT NOT IN SERVICE: GAAP LXP Actual/Estimated Estimated Investment Balance Amount Funded Base Building % Leased Estimated Project # of Estimated Project Cost as of 9/30/2023 as of 9/30/2023 Completion as of Placed in Service (% owned) Buildings Market Sq. Ft. ($00
Slide 14: Development Summary (Continued)
DEVELOPMENT SUMMARY (CONTINUED) LAND HELD FOR INDUSTRIAL DEVELOPMENT: GAAP LXP Investment Balance Amount Funded Project 9/30/2023 9/30/2023 (% owned) Market ($000) ($000)(1) Consolidated 1 Reems & Olive (95.5%) Phoenix, AZ 77,653$ 74,913$ 2 Mt. Comfort Phase II (80%) Indianapolis, IN 5,323 4,279 3 A
Slide 15: Capital Expenditures and Leasing Costs
CAPITAL EXPENDITURES AND LEASING COSTS (1) ($000) 2023 2022 First Generation Costs Tenant Improvements 3,065$ 4,491$ Leasing Costs 300 1,879 Base Building 943 2,470 Total First Generation Costs 4,308$ 8,840$ Second Generation Costs Tenant Improvements Industrial 1,637$ 5,016$ Other - - Total Second
Slide 16: Same Store Data
SAME STORE DATA ($000) Same-Store NOI Same-Store NOI by Components 2023 2022 2023 2022 2023 2022 Total Cash Base Rent 61,738$ 59,637$ 58,352$ 56,272$ 3,386$ 3,365$ Tenant Reimbursements 12,200 10,000 12,192 9,996 8 4 Property Operating Expenses (12,595) (11,065) (12,500) (10,995) (95) (70) Same-Stor
Slide 17: Industrial Portfolio Information
INDUSTRIAL PORTFOLIO INFORMATION Markets (1) ABR % as of 9/30/2023 Industries ABR % as of 9/30/2023 Phoenix, AZ 12.2% Consumer Products 23.2% Greenville/Spartanburg, SC 9.4% Transportation/Logistics 19.8% Atlanta, GA 8.6% E-Commerce 14.8% Memphis, TN 8.0% Automotive 11.9% Dallas/Ft. Worth, TX 5.7% C
Slide 18: Top Tenants
TOP 15 TENANTS Tenants (1) Property Type Lease Expirations Number of Leases Sq. Ft. Leased Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3) ABR as of 9/30/2023 ($000) ABR % as of 9/30/2023 ($000) (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.3% 18,489$ 7.0% Nissan Industrial 2027 2 2,
Slide 19: Quarterly Leasing Summary
QUARTERLY LEASING SUMMARY NEW LEASES - FIRST GENERATION(1) Prior Term Lease Expiration Date Sq. Ft. New Base Rent Per Annum ($000)(2) New Cash Base Rent Per Annum ($000)(2) Industrial 1 Greer SC N/A 02/2029 304,884 1,796$ 1,825$ 1 TOTAL NEW LEASES - FIRST GENERATION 304,884 1,796$ 1,825$ LEASE EXTEN
Slide 20: Lease Rollover Schedule - Industrial
LEASE ROLLOVER SCHEDULE - INDUSTRIAL ($000) Year Number of Leases Expiring ABR as of 9/30/2023 Percent of ABR as of 9/30/2023 Percent of ABR as of 9/30/2022 2023 - remaining 0 -$ 0.0% 0.9% 2024 18 19,576 7.8% 11.0% 2025 13 18,079 7.2% 7.4% 2026 24 31,533 12.5% 11.6% 2027 14 35,937 14.2% 15.2% 2028 8
Slide 21: Property Leases and Vacancies - 9/30/2023
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES S
Slide 22: Property Leases and Vacancies - 9/30/2023
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 23: Property Leases and Vacancies - 9/30/2023
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 24: Property Leases and Vacancies - 9/30/2023
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 25: Property Leases and Vacancies - 9/30/2023
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 26: Property Leases and Vacancies - 9/30/2023
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 27: Property Leases and Vacancies - Other Properties
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Property Type Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) OTHER PRO
Slide 28: Property Leases and Vacancies - Non-Consolidated Properties
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) LXP % Ownership Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) 9/30/20
Slide 29: Property Leases and Vacancies - NNN Office JV
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) LXP % Ownership Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) 9/30/20
Slide 30: Mortgages and Notes Payable
MORTGAGES AND NOTES PAYABLE Footnotes Debt Balance ($000) Interest Rate (%) Maturity (a) Current Estimated Annual Debt Service ($000) (b) Balloon Payment ($000) INDUSTRIAL (c) Long Island City, NY 21,821$ 3.500% 03/2028 5,245$ -$ Goodyear, AZ 40,381 4.290% 08/2031 2,484 33,399 62,202$ 4.013% 6.6 7,7
Slide 31: Mortgages and Notes Payable (Continued)
MORTGAGES AND NOTES PAYABLE (CONTINUED) ($000) GAAP Balance Deferred Loan Costs, net Discounts Gross Balance Mortgages and notes payable (c) 63,390$ 836$ -$ 64,226$ Term loans payable (e) 299,334 666 - 300,000 Senior notes payable(e) 990,318 5,704 2,910 998,932 Trust preferred securities (e) 127,769
Slide 32: Debt Maturity Schedule
DEBT MATURITY SCHEDULE ($000) Year Mortgage Scheduled Amortization Mortgage Balloon Payments Corporate Debt 2023 - remaining 3,338$ -$ -$ 2024 5,373 - 198,932 2025 5,570 - 300,000 2026 5,773 - - 2027 5,984 - - 26,038$ -$ 498,932$ Footnotes (1) Percentage denotes weighted-average interest rate. Conso
Slide 33: Debt Covenants
DEBT COVENANTS (1) CORPORATE LEVEL DEBT MUST BE: 9/30/2023 Maximum Leverage < 60% 34.1% Fixed Charge Coverage > 1.5x 3.3x Recourse Secured Indebtedness Ratio < 10% cap value 0.0% Secured Indebtedness Ratio < 40% 3.5% Unsecured Debt Service Coverage > 2.0x 4.8x Unencumbered Leverage < 60% 36.2% Debt
Slide 34: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE ($000) Consolidated properties quarterly net operating income (NOI) (1) In service assets not fairly valued by capitalized NOI method (1) Industrial 60,016$ Consolidated assets acquired/completed (our share) in 2023 48,597$ Other 1,797 Consolidated assets less than 70%
Slide 35: Non-GAAP Measures Definitions
NON-GAAP MEASURES DEFINITIONS LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Supplemental Information and in other public disclosures. LXP believes that the measures defined below are helpful to investors in measuring our
Slide 36: Non-GAAP Measures Definitions
NON-GAAP MEASURES DEFINITIONS Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination paymen
Slide 37: Non-GAAP Measures Definitions
NON-GAAP MEASURES DEFINITIONS Net Operating Income (NOI): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of LXP's hi
Slide 38: Select Credit Metrics Definitions
SELECT CREDIT METRICS DEFINITIONS ($000) Adjusted Company FFO Payout: Nine months ended September 30, 2023 (Debt + Preferred) / Gross Assets: Nine months ended September 30, 2023 Common share dividends per share 0.375$ Consolidated debt 1,480,811$ Adjusted Company FFO per diluted share 0.52 Preferre
Slide 39: Appendix - Other Portfolio
APPENDIX - OTHER PORTFOLIO Year Number of Leases Expiring ABR as of 9/30/2023 ($000) Percent of ABR as of 9/30/2023 Percent of ABR as of 9/30/2022 # of Properties 5 2023 - remaining 1 7,070$ 52.2% 33.1% Square Feet 983,681 2024 2 4,229 31.2% 41.5% % Investment Grade (1) 45.5% 2025 1 1,933 14.3% 13.1
Slide 40: Investor Information
Investor Information Transfer Agent Computershare Overnight Correspondence: PO Box 43006 150 Royall Street, Suite 101 Providence, RI 02940 Canton, MA 02021 (800) 850-3948 www-us.computershare.com/investor Investor Relations Heather Gentry Senior Vice President, Investor Relations Telephone (direct)
Slide 41: LXP Industrial Trust
LXP INDUSTRIAL TRUST ■ ONE PENN PLAZA ■ SUITE 4015 ■ NEW YORK, NY 10119 ■ WWW.LXP.COM