Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q4 2023 Earnings Presentation
41 slides from Lxp Industrial Trust's earnings presentation, Feb 15, 2024
Slide 1: Quarterly Supplemental Information Fourth 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 FOURTH QUARTER 2023 Exhibit 99.2
Slide 2: Table of Contents
TABLE OF CONTENTS December 31, 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 S
Slide 3: Summary / Highlights
SUMMARY / HIGHLIGHTS December 31, 2023 Quarterly Highlights Portfolio Statistics - Net Income - $0.04 per diluted common share # of Properties: 115 - Adjusted Company FFO - $0.17 per diluted common share # of States: 18 - Industrial Same-Store NOI increased 4.1% in 2023 compared to 2022 Square Foota
Slide 4: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) December 31, 2023 December 31, 2022 Assets: Real estate, at cost 3,774,239$ 3,691,066$ Real estate - intangible assets 314,525 328,607 Land held for development 80,743 84,412 Investments in real estate under co
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 81,894$ 79,243$ 334,220$ 313,992$ Other revenue 1,062 1,861 6,283 7,253 Total gross revenues 82,956 81,104 340,503 321,245 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 12,985$ 36,866$ 23,863$ 107,307$ Adjustments: Depreciation and amortization - real estate 45,070 45,125 1
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 51,352$ 47,949$ 206,191$ 193,061$ FUNDS AVAILABLE FOR DISTRIBUTION Adjustments: Straight-line adjustments (1,750) (2,519) (9,688) (11,412
Slide 8: Non-GAAP Financial Data (Continued)
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Net Operating Income ("NOI"): 2023 2022 2023 2022 Net income 19,487$ 40,206$ 35,923$ 116,243$ Interest and amortization expense 13,887 12,659 46,389 45,417 Provision for income taxes 57 151 703 1,102 Depreciation and amortization 46,220 45,922 183,524 180,5
Slide 9: Non-GAAP Financial Data (Continued)
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Adjusted EBITDA: Twelve months ended 12/31/2023 Net income attributable to LXP Industrial Trust shareholders 30,383$ Interest and amortization expense 46,389 Provision for income taxes 703 Depreciation and amortization 183,524 Straight-line adjustments (9,6
Slide 10: Select Credit Metrics Summary
SELECT CREDIT METRICS SUMMARY (1) 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Adjusted Company FFO Payout Ratio 55.6% 56.7% 72.4% 72.1% Unencumbered Assets $3.8 billion $4.2 billion $4.5 billion $4.5 billion Unencumbered NOI 89.3% 92.6% 93.4% 96.3% (Debt + Preferred) / Gross Assets 32.5% 33.4% 32.1%
Slide 11: Other Financial Data
OTHER FINANCIAL DATA Future Rent Estimates for Current Leases Year Base Rent (1) Cash Base Rent (1) Difference 2024 278,657$ 269,552$ (9,105)$ 2025 261,690 259,983 (1,707) Balance Sheet Other assets 17,794$ The components of other assets are: Deposits 1,516$ Equipment 194 Prepaids 924 Interest recei
Slide 12: Quarterly Investments / Capital Recycling Summary
QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY PLACED IN SERVICE DEVELOPMENT: Property Type (% Owned) Square Feet Initial Cost Basis ($000)(1) Month Placed in Service Primary Lease Expiration Percent Leased Consolidated 1 Industrial (95%) (2) 1,074,840 $ 64,524 October 10/2033 100% 2 Industrial (
Slide 13: Development Summary
DEVELOPMENT SUMMARY ONGOING DEVELOPMENT NOT IN SERVICE: GAAP LXP Estimated Investment Balance Amount Funded Base Building % Leased Estimated Project # of Estimated Project Cost as of 12/31/2023 as of 12/31/2023 Completion as of Placed in Service (% owned) Buildings Market Sq. Ft. ($000)(1) ($000)(2)
Slide 14: Development Summary (Continued)
DEVELOPMENT SUMMARY (CONTINUED) LAND HELD FOR INDUSTRIAL DEVELOPMENT: GAAP LXP Investment Balance Amount Funded Project 12/31/2023 12/31/2023 (% owned) Market ($000) ($000)(1) Consolidated 1 Reems & Olive (95.5%) (2) Phoenix, AZ 73,683$ 74,308$ 2 Mt. Comfort Phase II (80%) Indianapolis, IN 5,328 4,2
Slide 15: Capital Expenditures and Leasing Costs
CAPITAL EXPENDITURES AND LEASING COSTS (1) ($000) 2023 2022 First Generation Costs Tenant Improvements 3,065$ 5,756$ Leasing Costs 1,161 2,543 Base Building 1,087 2,558 Total First Generation Costs 5,313$ 10,857$ Second Generation Costs Tenant Improvements Industrial 2,619$ 5,094$ Other - - Total Se
Slide 16: Same Store Data
SAME STORE DATA ($000) Same-Store NOI Same-Store NOI by Components 2023 2022 2023 2022 2023 2022 Total Cash Base Rent 60,568$ 57,984$ 59,433$ 56,869$ 1,135$ 1,115$ Tenant Reimbursements 11,152 9,326 11,144 9,322 8 4 Property Operating Expenses (11,947) (9,868) (11,923) (9,854) (24) (14) Same-Store N
Slide 17: Industrial Portfolio Information
INDUSTRIAL PORTFOLIO INFORMATION Markets (1) ABR % as of 12/31/2023 Industries ABR % as of 12/31/2023 Phoenix, AZ 11.7% Consumer Products 25.1% Greenville/Spartanburg, SC 9.6% Transportation/Logistics 19.8% Atlanta, GA 8.7% E-Commerce 14.1% Memphis, TN 7.6% Automotive 11.3% Houston, TX 5.8% Construc
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 12/31/2023 ($000) ABR % as of 12/31/2023 ($000) (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.1% 18,593$ 6.9% Nissan Industrial 2027 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 ($000)(2) Industrial 1 Ruskin (3) FL N/A 01/2029 57,690 604$ 576$ 2 Plant City FL N/A 07/2035 180,308 1,278 1,106 2 TOTAL NEW LEASES - FI
Slide 20: Lease Rollover Schedule - Industrial
LEASE ROLLOVER SCHEDULE - INDUSTRIAL ($000) Year Number of Leases Expiring ABR as of 12/31/2023 Percent of ABR as of 12/31/2023 Percent of ABR as of 12/31/2022 2024 11 11,801$ 4.4% 10.7% 2025 13 18,313 6.9% 7.2% 2026 25 32,861 12.4% 12.1% 2027 16 37,114 14.0% 15.0% 2028 8 18,139 6.8% 6.2% 2029 18 35
Slide 21: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) INDUSTRIAL PROPERTIE
Slide 22: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) INDUSTRIAL PROPERTIE
Slide 23: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) INDUSTRIAL PROPERTIE
Slide 24: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) INDUSTRIAL PROPERTIE
Slide 25: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) INDUSTRIAL PROPERTIE
Slide 26: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) INDUSTRIAL PROPERTIE
Slide 27: Property Leases and Vacancies - 12/31/2023
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) OTHER
Slide 28: Property Leases and Vacancies - Non-Consolidated Properties
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) 12/3
Slide 29: Property Leases and Vacancies - Non-Consolidated Properties
PROPERTY LEASES AND VACANCIES - 12/31/2023 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 12/31/2023 ($000) Annualized Cash Base Rent ("ABR") as of 12/31/2023 ($000) 12/3
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 ($000) INDUSTRIAL (c) Long Island City, NY 20,695$ 3.500% 03/2028 5,245$ -$ Goodyear, AZ 40,193 4.290% 08/2031 2,484 33,399 60,888$ 4.021% 6.4 7,7
Slide 31: Mortgages and Notes Payable (Continued)
MORTGAGES AND NOTES PAYABLE (CONTINUED) ($000) GAAP Balance Deferred Loan Costs, net Discounts Gross Balance Mortgages and notes payable (c) 60,124$ 764$ -$ 60,888$ Term loans payable (e) 296,764 3,236 - 300,000 Senior notes payable(e) 1,286,145 8,298 4,489 1,298,932 Trust preferred securities (e) 1
Slide 32: Debt Maturity Schedule
DEBT MATURITY SCHEDULE ($000) Year Mortgage Scheduled Amortization Mortgage Balloon Payments Corporate Debt 2024 5,373$ -$ 198,932$ 2025 5,570 - - 2026 5,773 - - 2027 5,984 - 300,000 2028 2,223 - 300,000 24,923$ -$ 798,932$ Footnotes (1) Percentage denotes weighted-average interest rate. (2) Consoli
Slide 33: Debt Covenants
DEBT COVENANTS (1) CORPORATE LEVEL DEBT MUST BE: 12/31/2023 Maximum Leverage < 60% 34.5% Fixed Charge Coverage > 1.5x 3.1x Recourse Secured Indebtedness Ratio < 10% cap value 0.0% Secured Indebtedness Ratio < 40% 3.4% Unsecured Debt Service Coverage > 2.0x 4.3x Unencumbered Leverage < 60% 36.4% Debt
Slide 34: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE ($000) Consolidated properties quarterly net operating income (NOI) (1) In service assets not fairly valued by capitalized NOI method (1) Industrial 62,539$ Consolidated assets acquired/placed in service (our share) in the quarter 88,324$ Other 78 Consolidated assets le
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 ($000) Adjusted Company FFO Payout: Twelve months ended December 31, 2023 (Debt + Preferred) / Gross Assets: Twelve months ended December 31, 2023 Common share dividends per share 0.505$ Consolidated debt 1,770,827$ Adjusted Company FFO per diluted share 0.70 Prefer
Slide 39: Appendix - Other Portfolio
APPENDIX - OTHER PORTFOLIO Year Number of Leases Expiring ABR as of 12/31/2023 ($000) Percent of ABR as of 12/31/2023 Percent of ABR as of 12/31/2022 # of Properties 3 2024 2 4,229$ 93.1% 41.9% Square Feet 338,301 2025 - - 0.0% 11.1% % Investment Grade (1) 93.1% 2026 - - 0.0% 0.0% % of ABR(2) 1.7% 2
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 Table of Contents 41