Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q2 2023 Earnings Presentation
40 slides from Lxp Industrial Trust's earnings presentation, Aug 2, 2023
Slide 1: Quarterly Supplemental Information Second 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 SECOND QUARTER 2023
Slide 2: Table of Contents
TABLE OF CONTENTS June 30, 2023 PAGE PAGE SUMMARY / HIGHLIGHTS 3 TENANT DATA TOP 15 TENANTS 17 FINANCIAL DATA QUARTERLY LEASING SUMMARY 18 CONSOLIDATED BALANCE SHEETS 4 LEASE ROLLOVER SCHEDULE 19 CONSOLIDATED STATEMENTS OF OPERATIONS 5 PROPERTY LEASES AND VACANCIES 20 NON-GAAP FINANCIAL DATA 6 SELEC
Slide 3: Summary / Highlights
SUMMARY / HIGHLIGHTS June 30, 2023 Quarterly Highlights Portfolio Statistics - Net Loss - $(0.03) per diluted common share # of Properties: 116 - Adjusted Company FFO - $0.18 per diluted common share # of States: 20 - Completed 2.0 million square feet of new and extended leases, including two specul
Slide 4: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) June 30, 2023 December 31, 2022 Assets: Real estate, at cost 3,688,245$ 3,691,066$ Real estate - intangible assets 326,422 328,607 Land held for development 84,591 84,412 Investments in real estate under constr
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 85,065$ 77,939$ 168,482$ 156,475$ Other revenue 1,985 1,836 3,643 3,578 Total gross revenues 87,050 79,775 172,125 160,053 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 (loss) attributable to common shareholders (9,683)$ 39,667$ (161)$ 48,665$ Adjustments: Depreciation and amortization - real estate 45,028 44
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 52,655$ 48,869$ 102,913$ 96,980$ FUNDS AVAILABLE FOR DISTRIBUTION Adjustments: Straight-line adjustments (2,638) (3,313) (5,725) (6,815)
Slide 8: Non-GAAP Financial Data (Continued) - NOI
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Net Operating Income ("NOI"): 2023 2022 2023 2022 Net income (loss) (7,780)$ 41,538$ 3,535$ 52,446$ Interest and amortization expense 10,144 10,821 21,537 21,503 Provision for income taxes 210 263 426 680 Depreciation and amortization 45,993 45,193 91,734 8
Slide 9: Non-GAAP Financial Data (Continued) - Adjusted EBITDA
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Adjusted EBITDA: 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Trailing 12 Months Net income (loss) attributable to LXP Industrial Trust shareholders (8,048)$ 11,166$ 38,473$ 23,390$ 64,981$ Interest and amortization expense 10,144 11,393 12,659 11,255 45,451 Pr
Slide 10: Select Credit Metrics Summary
SELECT CREDIT METRICS SUMMARY (1) 12/31/2020 12/31/2021 12/31/2022 6/30/2023 Adjusted Company FFO Payout Ratio 55.6% 56.7% 72.4% 71.4% Unencumbered Assets $3.8 billion $4.2 billion $4.5 billion $4.5 billion Unencumbered NOI 89.3% 92.6% 93.4% 93.8% (Debt + Preferred) / Gross Assets 32.5% 33.4% 32.1%
Slide 11: Other Financial Data
OTHER FINANCIAL DATA Future Rent Estimates for Current Leases Year Base Rent (1) Cash Base Rent (1) Difference 2023 - remaining 141,393$ 136,329$ (5,064)$ 2024 268,747 263,406 (5,341) Balance Sheet Other assets 27,564$ The components of other assets are: Deposits 2,824$ Equipment 248 Prepaids 5,367
Slide 12: 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 6/30/2023 as of 6/30/2023 Completion as of Placed in Service (% owned) Buildings Market Sq. Ft. ($00
Slide 13: Development Summary (Continued)
DEVELOPMENT SUMMARY (CONTINUED) LAND HELD FOR INDUSTRIAL DEVELOPMENT: GAAP LXP Investment Balance Amount Funded Project 6/30/2023 6/30/2023 (% owned) Market ($000) ($000)(1) Consolidated 1 Reems & Olive (95.5%) Phoenix, AZ 77,538$ 74,177$ 2 Mt. Comfort Phase II (80%) Indianapolis, IN 5,321 4,266 3 A
Slide 14: Capital Expenditures and Leasing Costs
CAPITAL EXPENDITURES AND LEASING COSTS (1) ($000) 2023 2022 First Generation Costs Tenant Improvements 2,514$ 388$ Leasing Costs 300 1,824 Base Building 531 2,135 Total First Generation Costs 3,345$ 4,347$ Second Generation Costs Tenant Improvements Industrial 466$ 4,517$ Other - - Total Second Gene
Slide 15: Same Store Data
SAME STORE DATA ($000) Same-Store NOI Same-Store NOI by Components 2023 2022 2023 2022 2023 2022 Total Cash Base Rent 62,350$ 59,194$ 56,913$ 53,835$ 5,437$ 5,359$ Tenant Reimbursements 13,526 10,961 12,048 9,504 1,478 1,457 Property Operating Expenses (14,291) (11,818) (12,505) (9,973) (1,786) (1,8
Slide 16: Industrial Portfolio Information
INDUSTRIAL PORTFOLIO INFORMATION Markets (1) ABR % as of 6/30/2023 Industries ABR % as of 6/30/2023 Phoenix, AZ 12.2% Consumer Products 23.2% Greenville/Spartanburg, SC 9.5% Transportation/Logistics 20.2% Atlanta, GA 8.6% E-Commerce 14.7% Memphis, TN 8.0% Automotive 12.0% Houston, TX 5.9% Constructi
Slide 17: 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 6/30/2023 ($000) ABR % as of 6/30/2023 ($000) (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.2% 18,265$ 6.7% Nissan Industrial 2027 2 2,
Slide 18: Quarterly Leasing Summary
QUARTERLY LEASING SUMMARY NEW LEASES - FIRST GENERATION(1) Lease Expiration Date Sq. Ft. New Base Rent Per Annum ($000)(2) New Cash Base Rent Per Annum ($000)(2) Industrial 1 Etna OH N/A 10/2033 1,074,840 6,093$ 5,274$ 2 Goodyear AZ N/A 12/2030 488,400 5,266 4,689 1 TOTAL NEW LEASES - FIRST GENERATI
Slide 19: Lease Rollover Schedule - Industrial
LEASE ROLLOVER SCHEDULE - INDUSTRIAL ($000) Year Number of Leases Expiring ABR as of 6/30/2023 Percent of ABR as of 6/30/2023 Percent of ABR as of 6/30/2022 2023 - remaining 1 1,294$ 0.5% 2.1% 2024 18 19,188 7.6% 10.9% 2025 13 17,956 7.1% 7.3% 2026 24 30,636 12.2% 11.0% 2027 15 38,013 15.1% 15.1% 20
Slide 20: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) INDUSTRIAL PROPERTIES S
Slide 21: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 22: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 23: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 24: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 25: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) INDUSTRIAL PROPERTIES W
Slide 26: Property Leases and Vacancies - Other Properties
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) OTHER PRO
Slide 27: Property Leases and Vacancies - Non-Consolidated
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) 6/30/20
Slide 28: Property Leases and Vacancies - Non-Consolidated Office JV
PROPERTY LEASES AND VACANCIES - 6/30/2023 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 6/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 6/30/2023 ($000) 6/30/20
Slide 29: 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 ($000) INDUSTRIAL (f) Long Island City, NY 22,935$ 3.500% 03/2028 5,245$ -$ Goodyear, AZ 40,568 4.290% 08/2031 2,484 33,399 63,503$ 4.005% 6.9 7,7
Slide 30: Mortgages and Notes Payable (Continued)
MORTGAGES AND NOTES PAYABLE (CONTINUED) ($000) GAAP Balance Deferred Loan Costs, net Discounts Gross Balance Mortgages and notes payable (f) 66,353$ 907$ -$ 67,260$ Term loans payable (e) 299,209 791 - 300,000 Senior notes payable(e) 989,977 5,939 3,016 998,932 Trust preferred securities (e) 127,744
Slide 31: Debt Maturity Schedule
DEBT MATURITY SCHEDULE ($000) Year Mortgage Scheduled Amortization Mortgage Balloon Payments Corporate Debt 2023 - remaining 6,373$ -$ -$ 2024 5,373 - 198,932 2025 5,570 - 300,000 2026 5,773 - - 2027 5,984 - - 29,073$ -$ 498,932$ Footnotes (1) Percentage denotes weighted-average interest rate. Conso
Slide 32: Debt Covenants
DEBT COVENANTS (1) CORPORATE LEVEL DEBT MUST BE: 6/30/2023 Maximum Leverage < 60% 34.3% Fixed Charge Coverage > 1.5x 3.3x Recourse Secured Indebtedness Ratio < 10% cap value 0.0% Secured Indebtedness Ratio < 40% 3.7% Unsecured Debt Service Coverage > 2.0x 4.9x Unencumbered Leverage < 60% 36.2% Debt
Slide 33: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE ($000) Consolidated properties quarterly net operating income (NOI) (1) In service assets not fairly valued by capitalized NOI method (1) Industrial 59,560$ Consolidated assets acquired/completed (our share) in 2023 34,071$ Other 2,271 Consolidated assets less than 70%
Slide 34: 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 35: 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 36: 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 37: Select Credit Metrics Definitions
SELECT CREDIT METRICS DEFINITIONS ($000) Adjusted Company FFO Payout: Six months ended June 30, 2023 (Debt + Preferred) / Gross Assets: Six months ended June 30, 2023 Common share dividends per share 0.25$ Consolidated debt 1,483,283$ Adjusted Company FFO per diluted share 0.35 Preferred shares liqu
Slide 38: Appendix - Other Portfolio
APPENDIX - OTHER PORTFOLIO Year Number of Leases Expiring ABR as of 6/30/2023 ($000) Percent of ABR as of 6/30/2023 Percent of ABR as of 6/30/2022 # of Properties 7 2023 - remaining 2 7,108$ 35.5% 30.2% Square Feet 1,411,452 2024 3 8,426 42.1% 37.7% % Investment Grade (1) 36.6% 2025 2 2,223 11.1% 11
Slide 39: 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 40: LXP Industrial Trust
LXP INDUSTRIAL TRUST ■ ONE PENN PLAZA ■ SUITE 4015 ■ NEW YORK, NY 10119 ■ WWW.LXP.COM