Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q1 2024 Earnings Presentation
42 slides from Lxp Industrial Trust's earnings presentation, May 2, 2024
Slide 1: Quarterly Supplemental Information First Quarter 2024
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 FIRST QUARTER 2024 E x h i b i t 9 9 . 2
Slide 2: Table of Contents
TABLE OF CONTENTS March 31, 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 SELE
Slide 3: Summary / Highlights
SUMMARY / HIGHLIGHTS March 31, 2024 Quarterly Highlights Portfolio Statistics - Net Loss - $(0.01) per diluted common share # of Properties: 118 - Adjusted Company FFO - $0.16 per diluted common share # of States: 18 - Industrial Same-Store NOI increased 6.5% in 2024 compared to 2023 Square Footage:
Slide 4: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) March 31, 2024 December 31, 2023 Assets: Real estate, at cost 3,951,860$ 3,774,239$ Real estate - intangible assets 310,989 314,525 Land held for development 81,034 80,743 Investments in real estate under const
Slide 5: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) 2024 2023 Gross revenues: Rental revenue 85,207$ 83,417$ Other revenue 1,044 1,658 Total gross revenues 86,251 85,075 Expenses applicable to revenues: Depreciation and amortization (47,509) (45,741) P
Slide 6: Non-GAAP Financial Data
NON-GAAP FINANCIAL DATA (Unaudited and in thousands, except share and per share data) 2024 2023 FUNDS FROM OPERATIONS: Basic and Diluted: Net income (loss) attributable to common shareholders (1,931)$ 9,522$ Adjustments: Depreciation and amortization - real estate 46,208 44,860 Impairment charges -
Slide 7: Non-GAAP Financial Data (Continued)
NON-GAAP FINANCIAL DATA (CONTINUED) (Unaudited and in thousands) 2024 2023 Adjusted Company FFO available to all equityholders and unitholders - diluted 48,798$ 50,258$ FUNDS AVAILABLE FOR DISTRIBUTION Adjustments: Straight-line adjustments (2,702) (3,087) Lease incentives 138 96 Amortization of abo
Slide 8: Non-GAAP Financial Data (Continued) - NOI
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Net Operating Income ("NOI"): 2024 2023 Net income (loss) (555)$ 11,315$ Interest and amortization expense 16,984 11,393 Provision for income taxes 125 216 Depreciation and amortization 47,509 45,741 General and administrative 9,493 9,242 Transaction costs
Slide 9: Non-GAAP Financial Data (Continued) - Adjusted EBITDA
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Adjusted EBITDA: 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Trailing 12 Months Net income (loss) attributable to LXP Industrial Trust shareholders (269)$ 14,601$ 12,664$ (8,048)$ 18,948$ Interest and amortization expense 16,984 13,887 10,965 10,144 51,980 Pro
Slide 10: Select Credit Metrics Summary
SELECT CREDIT METRICS SUMMARY (1) 12/31/2021 12/31/2022 12/31/2023 3/31/2024 Adjusted Company FFO Payout Ratio 56.7% 72.4% 72.1% 81.3% Unencumbered Assets $4.2 billion $4.5 billion $4.5 billion $4.5 billion Unencumbered NOI 92.6% 93.4% 96.3% 96.4% (Debt + Preferred) / Gross Assets 33.4% 32.1% 36.6%
Slide 11: Other Financial Data
OTHER FINANCIAL DATA Future Rent Estimates for Current Leases Year Base Rent (1) Cash Base Rent (1) Difference 2024 - remaining 207,938$ 202,345$ (5,593)$ 2025 262,476 260,778 (1,698) Balance Sheet Other assets 24,171$ The components of other assets are: Deposits 1,575$ Equipment 167 Prepaids 7,419
Slide 12: Quarterly Investments Summary
QUARTERLY INVESTMENTS 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 (93%) 488,400 $ 52,767 February 01/2031 100% 2 Industrial (80%) (2) 1,085,280 80,825
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 3/31/2024 as of 3/31/2024 Completion as of Placed in Service (% owned) Buildings Market Sq. Ft. ($
Slide 14: Development Summary (Continued)
DEVELOPMENT SUMMARY (CONTINUED) LAND HELD FOR INDUSTRIAL DEVELOPMENT: GAAP LXP Investment Balance Amount Funded Project 3/31/2024 3/31/2024 (% owned) Market ($000) ($000)(1) Consolidated 1 Reems & Olive (95.5%) Phoenix, AZ 73,973$ 74,610$ 2 Mt. Comfort Phase II (80%) Indianapolis, IN 5,329 4,284 3 A
Slide 15: Capital Expenditures and Leasing Costs
CAPITAL EXPENDITURES AND LEASING COSTS (1) ($000) 2024 2023 First Generation Costs Tenant Improvements 163$ 1,271$ Leasing Costs - 300 Base Building 706 443 Total First Generation Costs 869$ 2,014$ Second Generation Costs Tenant Improvements 453$ 162$ Leasing Costs 1,094 162 Building Improvements 1,
Slide 16: Same Store Data
SAME STORE DATA ($000) Same-Store NOI Same-Store NOI by Components 2024 2023 2024 2023 2024 2023 Total Cash Base Rent 64,618$ 60,799$ 63,462$ 59,664$ 1,156$ 1,135$ Tenant Reimbursements 13,532 12,720 13,524 12,712 8 8 Property Operating Expenses (14,055) (13,305) (14,036) (13,288) (19) (17) Same-Sto
Slide 17: Industrial Portfolio Information
INDUSTRIAL PORTFOLIO INFORMATION Markets (1) ABR % as of 3/31/2024 Industries ABR % as of 3/31/2024 Phoenix, AZ 13.3% Consumer Products 24.9% Greenville/Spartanburg, SC 9.8% Transportation/Logistics 19.4% Atlanta, GA 8.7% E-Commerce 14.0% Memphis, TN 7.3% Automotive 11.4% Houston, TX 5.7% Constructi
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 3/31/2024 ($000) ABR % as of 3/31/2024 ($000) (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.1% 18,616$ 6.8% Nissan Industrial 2027 2 2,
Slide 19: Quarterly Leasing Summary
QUARTERLY LEASING SUMMARY SECOND GENERATION Prior Term Lease Expiration Date Sq. Ft. New Base Rent Per Annum ($000)(1) Prior Base Rent Per Annum ($000) New Cash Base Rent Per Annum ($000)(1) Prior Cash Base Rent Per Annum ($000) LEASE EXTENSIONS 1 Cartersville (2) GA 08/2024 08/2027 119,295 786$ 614
Slide 20: Lease Rollover Schedule - Industrial
LEASE ROLLOVER SCHEDULE - INDUSTRIAL ($000) Year Number of Leases Expiring ABR as of 3/31/2024 Percent of ABR as of 3/31/2024 Percent of ABR as of 3/31/2023 2024 - remaining 9 9,397$ 3.5% 6.7% 2025 13 18,212 6.8% 7.2% 2026 25 33,039 12.3% 12.2% 2027 16 37,370 13.9% 14.3% 2028 8 18,253 6.8% 6.9% 2029
Slide 21: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES S
Slide 22: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES W
Slide 23: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES W
Slide 24: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES W
Slide 25: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES W
Slide 26: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES W
Slide 27: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) INDUSTRIAL PROPERTIES W
Slide 28: Property Leases and Vacancies
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) OTHER PRO
Slide 29: Property Leases and Vacancies - Non-Consolidated
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) 3/31/20
Slide 30: Property Leases and Vacancies - Non-Consolidated
PROPERTY LEASES AND VACANCIES - 3/31/2024 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 3/31/2024 ($000) Annualized Cash Base Rent ("ABR") as of 3/31/2024 ($000) 3/31/20
Slide 31: 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 ($000) INDUSTRIAL (c) Long Island City, NY 19,560$ 3.500% 03/2028 5,245$ -$ Goodyear, AZ 40,002 4.290% 08/2031 2,484 33,399 59,562$ 4.031% 6.2 7,7
Slide 32: Mortgages and Notes Payable (Continued)
MORTGAGES AND NOTES PAYABLE (CONTINUED) ($000) GAAP Balance Deferred Loan Costs, net Discounts Gross Balance Mortgages and notes payable (c) 58,843$ 719$ -$ 59,562$ Term loans payable (e) 297,027 2,973 - 300,000 Senior notes payable(e) 1,286,711 7,924 4,297 1,298,932 Trust preferred securities (e) 1
Slide 33: Debt Maturity Schedule
DEBT MATURITY SCHEDULE ($000) Year Mortgage Scheduled Amortization Mortgage Balloon Payments Corporate Debt 2024 - remaining 4,048$ -$ 198,932$ 2025 5,570 - - 2026 5,773 - - 2027 5,984 - 300,000 2028 2,223 - 300,000 23,598$ -$ 798,932$ Footnotes (1) Percentage denotes weighted-average interest rate.
Slide 34: Debt Covenants
DEBT COVENANTS (1) CORPORATE LEVEL DEBT MUST BE: 3/31/2024 Maximum Leverage < 60% 34.0% Fixed Charge Coverage > 1.5x 2.9x Recourse Secured Indebtedness Ratio < 10% cap value 0.0% Secured Indebtedness Ratio < 40% 3.3% Unsecured Debt Service Coverage > 2.0x 3.7x Unencumbered Leverage < 60% 36.3% Debt
Slide 35: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE ($000) Consolidated properties quarterly net operating income (NOI) (1) In service assets not fairly valued by capitalized NOI method (1) Industrial 63,593$ Consolidated assets placed in service (our share) in the quarter 164,468$ Other 78 Consolidated assets less than
Slide 36: Select Credit Metrics Definitions
SELECT CREDIT METRICS DEFINITIONS ($000) Adjusted Company FFO Payout: Three months ended March 31, 2024 (Debt + Preferred) / Gross Assets: Three months ended March 31, 2024 Common share dividends per share 0.13$ Consolidated debt 1,770,400$ Adjusted Company FFO per diluted share 0.16 Preferred share
Slide 37: 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 38: 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 39: 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 40: Appendix - Other Portfolio
APPENDIX - OTHER PORTFOLIO Year Number of Leases Expiring ABR as of 3/31/2024 ($000) Percent of ABR as of 3/31/2024 Percent of ABR as of 3/31/2023 # of Properties 3 2024 - remaining 2 4,314$ 93.3% 42.1% Square Feet 338,301 2025 - - 0.0% 11.1% % Investment Grade (1) 93.3% 2026 - - 0.0% 0.0% % of ABR(
Slide 41: 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 42: LXP Industrial Trust
LXP INDUSTRIAL TRUST ■ 515 N. FLAGLER DRIVE ■ SUITE 408 ■ WEST PALM BEACH, FL 33401 ■ WWW.LXP.COM