Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q3 2024 Earnings Presentation
39 slides from Lxp Industrial Trust's earnings presentation, Nov 6, 2024
Slide 1: Quarterly Supplemental Information Third Quarter 2024
QUARTERLY SUPPLEMENTAL INFORMATION THIRD QUARTER 2024 Exhibit 99.2
Slide 2: Table of Contents
TABLE OF CONTENTS September 30, 2024 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
3Table of Contents SUMMARY / HIGHLIGHTS September 30, 2024 LXP is a real estate investment trust ("REIT") focused on Class A, warehouse and distribution investments in target markets across the Sunbelt and Midwest. Quarterly Highlights - Net Income - $0.02 per diluted common share - Adjusted Company
Slide 4: Consolidated Balance Sheets
4Table of Contents CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) September 30, 2024 December 31, 2023 Assets: Real estate, at cost $ 3,966,948 $ 3,774,239 Real estate - intangible assets 298,811 314,525 Land held for development 82,759 80,743 Investments i
Slide 5: Consolidated Statements of Operations
5Table of Contents CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) Three months ending September 30, Nine months ending September 30, 2024 2023 2024 2023 Gross revenues: Rental revenue $ 84,549 $ 83,844 $ 254,524 $ 252,326 Other revenue 1,021 1,578
Slide 6: Non-GAAP Financial Data
6Table of Contents NON-GAAP FINANCIAL DATA (Unaudited and in thousands, except share and per share data) Three months ending September 30, Nine months ending September 30, 2024 2023 2024 2023 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders $ 4,689 $ 11,039 $
Slide 7: Non-GAAP Financial Data (Continued)
7Table of Contents NON-GAAP FINANCIAL DATA (CONTINUED) (Unaudited and in thousands) Three months ending September 30, Nine months ending September 30, 2024 2023 2024 2023 Adjusted Company FFO available to all equityholders and unitholders - diluted $ 46,707 $ 51,926 $ 142,409 $ 154,839 FUNDS AVAILAB
Slide 8: Non-GAAP Financial Data (Continued) - NOI
8Table of Contents NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Net Operating Income ("NOI"): Three months ending September 30, Nine months ending September 30, 2024 2023 2024 2023 Net income $ 5,613 $ 12,901 $ 9,859 $ 16,436 Interest and amortization expense 16,037 10,965 50,624 32,502 Provision for
Slide 9: Non-GAAP Financial Data (Continued) - Adjusted EBITDA
9Table of Contents NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Adjusted EBITDA: 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Trailing 12 Months Net income attributable to LXP Industrial Trust shareholders $ 6,346 $ 5,426 $ (269) $ 14,601 $ 26,104 Interest and amortization expense 16,037 17,603 16,984 13,
Slide 10: Select Credit Metrics Summary
10Table of Contents SELECT CREDIT METRICS SUMMARY (1) 12/31/2021 12/31/2022 12/31/2023 9/30/2024 Adjusted Company FFO Payout Ratio 56.7 % 72.4 % 72.1 % 81.3 % Unencumbered Assets $4.2 billion $4.5 billion $4.5 billion $4.5 billion Unencumbered NOI 92.6 % 93.4 % 96.3 % 96.4 % (Debt + Preferred) / Gro
Slide 11: Other Financial Data
11Table of Contents OTHER FINANCIAL DATA 9/30/2024 ($000) Future Rent Estimates for Current Leases Year Base Rent (1) Cash Base Rent (1) Difference 2024 - remaining $ 71,544 $ 69,298 $ (2,246) 2025 279,244 276,026 (3,218) Balance Sheet Other assets $ 17,850 The components of other assets are: Deposi
Slide 12: Quarterly Investments / Capital Recycling
12Table of Contents QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY 9/30/2024 PLACED IN SERVICE DEVELOPMENT: Initial Cost Month Primary Basis Placed in Lease Percent Market (% Owned) % Owned Square Feet ($000)(1) Service Expiration Leased 1 Central Florida (2) 100% 80,983 $ 12,401 July N/A —% 2 Co
Slide 13: Development Summary
13Table of Contents DEVELOPMENT SUMMARY 9/30/2024 ONGOING DEVELOPMENT NOT IN SERVICE: GAAP LXP Estimated Estimated Investment Balance Amount Funded Base Building % Leased Estimated Project # of Estimated Project Cost as of 9/30/2024 as of 9/30/2024 Completion as of Placed in Service (% Owned) Buildi
Slide 14: Development Summary (Continued)
14Table of Contents DEVELOPMENT SUMMARY (CONTINUED) 9/30/2024 LAND HELD FOR INDUSTRIAL DEVELOPMENT: GAAP LXP Investment Balance Amount Funded Project Approximate 9/30/2024 9/30/2024 (% owned) Market Acres ($000) ($000)(1) Consolidated 1 Reems & Olive (95.5%) (2) Phoenix, AZ 315 $ 75,278 $ 74,149 2 M
Slide 15: Capital Expenditures and Leasing Costs
15Table of Contents CAPITAL EXPENDITURES AND LEASING COSTS (1) 9/30/2024 ($000) Nine months ending September 30, 2024 2023 First Generation Costs Tenant Improvements $ 234 $ 3,065 Leasing Costs — 300 Base Building 881 943 Total First Generation Costs $ 1,115 $ 4,308 Second Generation Costs Tenant Im
Slide 16: Same-Store Data
16Table of Contents SAME-STORE DATA 9/30/2024 ($000) Same-Store NOI Three months ending September 30, QUARTER 2024 2023 Total Cash Base Rent $ 64,744 $ 61,429 Tenant Reimbursement 13,224 13,019 Property Operating Expenses (13,550) (13,355) Same-Store NOI $ 64,418 $ 61,093 Change in Same-Store NOI 5.
Slide 17: Portfolio Information
17Table of Contents PORTFOLIO INFORMATION 9/30/2024 ABR % as of Markets (1) 9/30/2024 Phoenix, AZ 13.0% Greenville/Spartanburg, SC 9.4% Atlanta, GA 8.9% Memphis, TN 7.8% Houston, TX 5.7% Dallas/Ft. Worth, TX 5.3% Cincinnati/Dayton, OH 5.3% Indianapolis, IN 5.2% Columbus, OH 5.1% Central Florida 4.1%
Slide 18: Top Tenants
18Table of Contents TOP 15 TENANTS 9/30/2024 Tenants (1) Lease Expirations Number of Leases Sq. Ft. Leased Sq. Ft. Leased as of Percent of Consolidated Portfolio (2)(3) ABR as of 9/30/2024 ($000) ABR % as of 9/30/2024 ($000) (2) Amazon 2026-2033 6 3,864,731 7.1 % $ 18,864 6.8 % Nissan 2027 2 2,971,0
Slide 19: Quarterly Leasing Summary
19Table of Contents QUARTERLY LEASING SUMMARY (1) 9/30/2024 Location Lease Expiration Date Sq. Ft. New Base Rent Per Annum ($000) New Cash Base Rent Per Annum ($000) NEW LEASE- FIRST GENERATION (2) 1 Etna OH 10/2029 250,020 $ 2,030 $ 1,958 1 TOTAL NEW LEASES - FIRST GENERATION 250,020 $ 2,030 $ 1,95
Slide 20: Lease Rollover Schedule
20Table of Contents LEASE ROLLOVER SCHEDULE 9/30/2024 ($000) Year Number of Leases Expiring ABR as of 9/30/2024 Percent of ABR as of 9/30/2024 Percent of ABR as of 9/30/2023 2024 - remaining 2 $ 945 0.3 % 2.3 % 2025 12 13,328 4.8 % 7.2 % 2026 23 31,894 11.5 % 12.5 % 2027 16 37,831 13.7 % 14.2 % 2028
Slide 21: Property Leases & Vacancies
21Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2024 ($000) SINGL
Slide 22: Property Leases & Vacancies
22Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2024 ($000) WAREH
Slide 23: Property Leases & Vacancies
23Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2024 ($000) WAREH
Slide 24: Property Leases & Vacancies
24Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2024 ($000) WAREH
Slide 25: Property Leases & Vacancies
25Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2024 ($000) WAREH
Slide 26: Property Leases & Vacancies
26Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2024 ($000) MULTI
Slide 27: Property Leases & Vacancies - Non-Consolidated Properties
27Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2
Slide 28: Property Leases & Vacancies - Non-Consolidated Properties
28Table of Contents PROPERTY LEASES & VACANCIES - 9/30/2024 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 9/30/2024 ($000) Annualized Cash Base Rent (“ABR”) as of 9/30/2
Slide 29: Mortgages and Notes Payable
29Table of Contents MORTGAGES AND NOTES PAYABLE 9/30/2024 Property Footnotes Debt Balance ($000) Interest Rate (%) Maturity (a) Current Estimated Annual Debt Service ($000) (b) Balloon Payment ($000) MORTGAGE (c) Long Island City, NY $ 17,261 3.500% 03/2028 $ 5,245 $ — Goodyear, AZ 39,615 4.290% 08/
Slide 30: Mortgages and Notes Payable (Continued)
30Table of Contents MORTGAGES AND NOTES PAYABLE (CONTINUED) 9/30/2024 ($000) GAAP Balance Deferred Loan Costs, net Discounts Gross Balance Mortgages and notes payable (c) $ 56,247 $ 629 $ — $ 56,876 Term loans payable (e) 297,551 2,449 — 300,000 Senior notes payable (e) 1,088,853 7,228 3,919 1,100,0
Slide 31: Debt Maturity Schedule
31Table of Contents DEBT MATURITY SCHEDULE 9/30/2024 ($000) Consolidated Properties Year Mortgage Scheduled Amortization Mortgage Balloon Payments Corporate Debt 2024 - remaining $ 1,361 $ — $ — 2025 5,570 — — 2026 5,773 — — 2027 5,984 — 300,000 2028 2,223 — 300,000 $ 20,911 $ — $ 600,000 Footnotes:
Slide 32: Debt Covenants
32Table of Contents DEBT COVENANTS (1) CORPORATE LEVEL DEBT MUST BE: 9/30/2024 Bank Loans: Maximum Leverage < 60% 36.0% Fixed Charge Coverage > 1.5x 3.0x Recourse Secured Indebtedness Ratio < 10% cap value —% Secured Indebtedness Ratio < 40% 3.3% Unsecured Debt Service Coverage > 2.0x 3.9x Unencumbe
Slide 33: Components of Net Asset Value
33Table of Contents COMPONENTS OF NET ASSET VALUE Footnotes: (1) Three months ended 9/30/2024 NOI for the existing property portfolio at September 30, 2024, includes one quarter of annualized NOI for non-commenced leases and leases with free rent periods (excludes NOI related to assets undervalued b
Slide 34: Non-GAAP Measures Definitions
34Table of Contents 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 investo
Slide 35: Non-GAAP Measures Definitions
35Table of Contents 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) leas
Slide 36: Non-GAAP Measures Definitions
36Table of Contents 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
Slide 37: Select Credit Metrics Definitions
37Table of Contents SELECT CREDIT METRICS DEFINITIONS ($000) Adjusted Company FFO Payout: Nine months ended September 30, 2024 (Debt + Preferred) / Gross Assets: Nine months ended September 30, 2024 Common share dividends per share $ 0.39 Consolidated debt $ 1,570,519 Adjusted Company FFO per dilute
Slide 38: Investor Information
38Table of Contents 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
Slide 39: LXP INDUSTRIAL TRUST ■ N. FLAGLER DRIVE ■ SUITE ■ WEST PALM BEACH, FL
LXP INDUSTRIAL TRUST ■ 515 N. FLAGLER DRIVE ■ SUITE 408 ■ WEST PALM BEACH, FL 33401 ■ WWW.LXP.COM