Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Q3 2024 Earnings Presentation
23 slides from Lxp Industrial Trust's earnings presentation, Nov 6, 2024
Slide 1: Investor Presentation Third Quarter 2024
INVESTOR PRESENTATION THIRD QUARTER 2024
Slide 2: Forward-Looking Statements and Other Disclosure
LXP INDUSTRIAL TRUST Forward-Looking Statements and Other Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statemen
Slide 3: LXP Industrial Trust – Preeminent U.S. Industrial REIT
LXP INDUSTRIAL TRUST LXP Industrial Trust – Preeminent U.S. Industrial REIT LXP 118 58.2M NYSE Properties Square Feet >30 Yrs 100% ~47% Industrial Investment Grade Publicly Traded Real Estate Tenancy $4.9B 73% ~89% Gross Assets Sunbelt Markets1 Class A Properties2 Ratings4 5.8% BBB- BBB Baa2 Dividen
Slide 4: Quarterly Highlights
LXP INDUSTRIAL TRUST Quarterly Highlights Quarterly Events − Leased ~740K SF, including 250K SF development project in Columbus − Increased Base and Cash Base Rents ~38% and ~22%, respectively − Same-Store NOI growth of 5.4% − Adjusted Company FFO of $0.16 per share − Swapped ~$333M of floating rate
Slide 5: Business Plan Focused on Delivering Value
LXP INDUSTRIAL TRUST Business Plan Focused on Delivering Value Pure-play industrial REIT Portfolio concentrated in new, Class A bulk distribution real estate with an average age of 9.5 years1 Investment strategy focused on Sunbelt and lower Midwest markets with population and job growth 3.2x and 1.7
Slide 6: Warehouse/Distribution Pure-Play Portfolio
LXP INDUSTRIAL TRUST Warehouse/Distribution Pure-Play Portfolio High-quality, Class A bulk logistics portfolio with modern specs and strong internal growth profile Portfolio Metrics Internal Growth Profile − 118 Properties ‾ 5.4% 3Q Same-Store NOI Growth 11% − 58.2M SF ‾ 23% Below Market Rents (leas
Slide 7: High Credit Quality Tenants Across Diverse Range of Industries
LXP INDUSTRIAL TRUST High Credit Quality Tenants Across Diverse Range of Industries Top 10 Tenants Tenants1 % of SF2,3 % of ABR2 Amazon 7.1% 6.8% Nissan 5.5% 4.8% Kellanova 5.2% 3.5% Black and Decker 4.2% 3.5% Wal-Mart 4.3% 3.3% GXO Logistics 3.1% 2.8% Watco 0.2% 2.4% FedEx 0.5% 2.3% Olam 2.2% 2.2%
Slide 8: Focused on Sunbelt and Lower Midwest Markets
LXPINDUSTRIAL LXP INDUSTRIALTRUST TRUST Focused on Sunbelt and Lower Midwest Markets LXP Target Market Characteristics − Business friendly government policies − Strong population and job growth − Direct access to rail, port and airport infrastructure − Attracting advanced manufacturing onshoring inv
Slide 9: Favorable Demographics in our Markets
LXPINDUSTRIAL LXP INDUSTRIALTRUST TRUST Favorable Demographics in our Markets − Population and employment growth in LXP’s markets has been 3.2x and 1.7x higher than the national average, respectively, reflecting1: o Business friendly policies attracting investment and creating job opportunities o Po
Slide 10: LXP is Well-Positioned for Reshoring of Manufacturing
LXPINDUSTRIAL LXP INDUSTRIALTRUST TRUST LXP is Well- Positioned for Reshoring of Manufacturing “The ongoing trend of companies shifting locations of their manufacturing operations is emerging as the second great industrial market disruptor of the 21st century, following the rise of e-commerce” - New
Slide 11: Reshoring Investment Focused in LXP’s Markets
LXPINDUSTRIAL LXP INDUSTRIALTRUST TRUST Reshoring Investment Focused in LXP’s Markets LXP market selection criteria aligned with attributes Key Criteria for Site attracting major manufacturing investment Selection Favor LXP Markets − Availability of sites for large scale projects − Access to low-cos
Slide 12: Identifiable Earnings Growth Drivers
LXP INDUSTRIAL TRUST Identifiable Earnings Growth Drivers Looking Ahead Mark-to-Market Opportunity Estimated to increase initial annual cash rent Rents expiring through 2029 are estimated by $35M, or $0.12 per share (~19% of FFO)1,2 to be 23% below market Contractual Rental Escalations 3.6% average
Slide 13: Rental Growth, Escalators and Lease Rollover
LXP INDUSTRIAL TRUST Same-Store NOI Growth Significant mark-to-market opportunity 23% Below Market2 and rent escalators driving Lease Rollover Schedule1 $50 17.0% consistent same-store NOI growth 13.7% ($ in millions) $40 11.5% $30 8.8% $20 Same-Store NOI Growth 4.8% $10 0.3% $0 7.0% 6.5% 6.0% 5.4%
Slide 14: Development Program Highlights
LXP INDUSTRIAL TRUST Development Program Highlights1 Development Program Enhances External and Internal Growth Profile Development Program4 2.5 1.09 ▪ 8.5 Million SF of development core and shell construction Square Feet (in millions) completed (14 facilities) 1.65 1.73 ▪ ~5.7 Million SF of first ge
Slide 15: Strong Balance Sheet with Attractive Debt Maturity Profile
LXP INDUSTRIAL TRUST Strong Balance Sheet with Attractive Debt Maturity Profile1 Consolidated Debt Maturity Profile ($mm)2 Attractive weighted-average interest rate of 3.8% with a weighted-average term of 5.7 years; approximately 94% $450 currently at fixed rates for 2025 and 2026 2.70% 2.38% $400 $
Slide 16: Our Environmental, Social, Governance and Resilience Strategy
LXP INDUSTRIAL TRUST Our Environmental, Social, Governance and Resilience Strategy Our Approach ESG+R Priorities − Strategy led by our ESG+R Taskforce that − Oversight provided by the Nominating and ESG establishes our priorities and actions Committee of our Board of Trustees − Transparency through
Slide 17: Sustainability Highlights and Progress
LXP INDUSTRIAL TRUST Sustainability Highlights and Progress1 Environmental Resilience − 34% green building certified2 across portfolio • Assessed Carbon Risk Real Estate Monitor − Completed first GHG inventory (CRREM) decarbonization pathways across our − LXP-sponsored, landlord-initiated solar port
Slide 18: Non-GAAP Measures-Definitions
LXP INDUSTRIAL TRUST Non-GAAP Measures-Definitions LXP has used non-GAAP financial measures as defined by Regulation G promulgated by the Securities and Exchange Commission in this presentation. LXP believes that the measures defined below are helpful to investors in measuring LXP’s performance or t
Slide 19: Non-GAAP Measures-Definitions, cont.
LXP INDUSTRIAL TRUST Non-GAAP Measures-Definitions, cont. 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 n
Slide 20: Appendix
LXP INDUSTRIAL TRUST Appendix 20
Slide 21: Development Pipeline Summary
LXP INDUSTRIAL TRUST Development Pipeline Summary Third Quarter 2024 Consolidated Development Projects # of Estimated Estimated Project Estimated Base Building % Leased (As of Estimated Placed In Project (% Owned) Market Buildings SF Cost ($000) Completion Date 9/30/2024) Service Date Build-to-Suit
Slide 22: Credit Metrics Summary
LXP INDUSTRIAL TRUST Credit Metrics Summary Credit Metrics Summary Adjusted Company FFO Payout Ratio 81.3% Unencumbered Assets $4.5B Unencumbered NOI 96.4% (Debt + Preferred)/Gross Assets 34.0% Debt/Gross Assets 32.1% Secured Debt/Gross Assets 1.1% Unsecured Debt/Unencumbered Assets 33.6% Net Debt/A
Slide 23: LXP Industrial Trust contact details
LXP INDUSTRIAL TRUST ■ 515 N. FLAGLER DRIVE ■ SUITE 408 ■ WEST PALM BEACH, FL 33401 ■ WWW.LXP.COM