LXP LXP Industrial Trust

LXP Industrial Trust (“LXP”) (NYSE:LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced results for the quarter ended September 30, 2024.

Third Quarter 2024 Highlights

• Recorded Net Income attributable to common shareholders of $4.7 million, or $0.02 per diluted common share.
• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $46.7 million, or $0.16 per diluted common share.
• Increased Same-Store NOI 5.4% in the third quarter compared to the same period in 2023.
• Completed new leases and lease extensions totaling 0.7 million square feet, raising Base and Cash Base Rents by 38.3% and 22.5%, respectively.
• Leased and placed into service a 250,020 square foot speculative development facility located in Columbus, Ohio.
• Invested an aggregate of $27.5 million in development activities and $7.6 million in a value-add opportunity at the Orlando, Florida asset.
• Entered into forward interest rate swap agreements for an aggregate of $250.0 million of the term loan and an aggregate of $82.5 million of the Trust Preferred Securities.

Subsequent Events

• Disposed of three facilities outside of Chicago, Illinois for an aggregate gross disposition price of approximately $136.7 million.
• Acquired one facility in Savannah, Georgia for approximately $34.1 million.
• Tenant exercised its purchase option to acquire the leased land owned by LXP in Phoenix, Arizona for $86.5 million, with closing anticipated in December 2024.

T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented "We posted strong third-quarter results with same-store NOI growth of 5.4% driven by 39.1% cash rental increases on second generation leases completed through September 30, 2024. We made progress on development leasing, executing a five-year lease at our 250,000 square foot development project in Columbus with a development yield of 8.5% and 3.5% annual rental increases. A more active transaction market supported our efforts to recycle assets outside of our target markets with the proceeds targeted for reinvestment into the Sunbelt. Finally, we acted on an improved short-term interest rate outlook during the quarter and swapped $332.5 million of floating-rate debt, increasing our fixed-rate debt to 94% for 2025 and 2026, mitigating previously estimated interest expense increases."

FINANCIAL RESULTS

Revenues

For the quarter ended September 30, 2024, total gross revenues were $85.6 million, compared with total gross revenues of $85.4 million for the quarter ended September 30, 2023. The increase is primarily attributable to market rent increases and stabilized development projects, offset by property sales and a decrease in other revenue.

Net Income Attributable to Common Shareholders

For the quarter ended September 30, 2024, net income attributable to common shareholders was $4.7 million, or $0.02 per diluted share, compared with net income attributable to common shareholders for the quarter ended September 30, 2023 of $11.0 million, or $0.04 per diluted share.

Adjusted Company FFO

For the quarter ended September 30, 2024, LXP generated Adjusted Company FFO of $46.7 million, or $0.16 per diluted share, compared to Adjusted Company FFO for the quarter ended September 30, 2023 of $51.9 million, or $0.18 per diluted share.

Dividends

LXP announced that it declared a regular quarterly common share dividend for the quarter ending December 31, 2024 of $0.135 per common share payable January 15, 2025 to common shareholders of record as of December 31, 2024. This represents an increase of 3.8% from the previous quarterly per share common share dividend and equates to an annualized increase of $0.02 per common share and an annualized dividend of $0.54 per common share, subject to and assuming future declarations.

LXP also announced that it declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred") for the quarter ending December 31, 2024, which is expected to be paid on February 14, 2025 to shareholders of record as of January 31, 2025.

As previously announced, LXP declared a regular quarterly common share dividend for the quarter ending September 30, 2024 of $0.13 per common share, which was paid on October 15, 2024 to common shareholders of record as of September 30, 2024. LXP also declared a cash dividend of $0.8125 per share of Series C Preferred for the quarter ending September 30, 2024, which is expected to be paid on November 15, 2024 to shareholders of record as of October 31, 2024.

TRANSACTION ACTIVITY

PLACED IN SERVICE DEVELOPMENT 

Market		% Owned		Sq. Ft.		Initial Cost Basis ($000)(1)			ApproximateLease Term(Yrs)		% Leased
Central Florida (2)		100%		80,983		$	12,401		N/A		—%
Columbus, OH		100%		250,020			23,879		5.2		100%
				331,003		$	36,280

1. Initial cost basis excludes certain costs, such as incomplete tenant improvement costs, leasing costs and developer incentive fees or partner promotes, if any.2. During the third quarter of 2024, the remaining portion of this facility, representing 58% of the facility, was placed in service vacant one year after the completion of base building construction. During the fourth quarter of 2023, a 57,690 square foot portion of the facility, representing 42% of the facility, was occupied by a tenant and placed into service.

VALUE-ADD INVESTMENT

During the third quarter of 2024, LXP invested in a value-add opportunity by acquiring the fee interest in the land underlying our Orlando, Florida facility and an additional land parcel with a 145,974 square foot tenant-constructed expansion for $7.6 million.

ONGOING DEVELOPMENT PROJECTS

Project (% owned)	# ofBuildings	Market	EstimatedSq. Ft.		EstimatedProjectCost ($000)			GAAPInvestmentBalance asof 9/30/2024($000)(1)			LXPAmountFunded asof9/30/2024($000)			Estimated BaseBuildingCompletion Date	% Leasedas of9/30/2024
Consolidated:
Build-to-Suit Development Projects Leased
Piedmont (100%)(2)	1	Greenville/Spartanburg, SC	625,238		$	74,400		$	59,878		$	54,526		4Q 2024	100%
Land Infrastructure Improvements
Reems & Olive (95.5%)	N/A	Phoenix, AZ	N/A		$	10,120		$	7,083		$	5,807		N/A	N/A
			625,238		$	84,520		$	66,961		$	60,333

1. Excludes leasing costs, incomplete costs, and developer incentive fees or partner promotes, if any.2. During the nine months ended September 30, 2024, LXP acquired a 59.1-acre land parcel for a purchase price of $3.4 million and commenced construction of a build-to-suit facility subject to a 12-year lease, which is estimated to commence January 2025.

LAND HELD FOR INDUSTRIAL DEVELOPMENT

Project (% owned)			Market		Approx.DevelopableAcres		GAAP InvestmentBalance as of9/30/2024 ($000)			LXP Amount Fundedas of9/30/2024 ($000)(1)
Consolidated:
1	Reems & Olive (95.5%)(2)		Phoenix, AZ		315		$	75,278		$	74,149
2	Mt. Comfort Phase II (80%)		Indianapolis, IN		116			5,749			4,307
3	ATL Fairburn JV (100%)		Atlanta, GA		14			1,732			1,757
3	Total Consolidated Land Projects				445		$	82,759		$	80,213

Project (% owned)			Market		Approx.DevelopableAcres		GAAP InvestmentBalance as of9/30/2024($000)			LXP Amount Fundedas of9/30/2024($000)(1)
Non-consolidated:
1	Etna		Columbus, OH		52		$	9,797		$	11,448
2	Etna East		Columbus, OH		21			2,306			2,860
2	Total Non-Consolidated Land Projects				73		$	12,103		$	14,308

1. Excludes noncontrolling interests' share.2. The cost of infrastructure improvements to prepare for vertical development are included in the development table above.

NON-TARGET MARKET PROPERTY DISPOSITIONS

Location		GrossDisposition Price($000)			AnnualizedNet Income(1)($000)			AnnualizedNOI(1) ($000)			Month ofDisposition		% Leased
Glenwillow, OH		$	28,600		$	2,048		$	2,155		July		100%

1. Quarterly period prior to sale, annualized.

The property above sold at GAAP and Cash capitalization rates of 7.2% and 7.5%, respectively.

LEASING

During the third quarter of 2024, LXP executed the following new and extended leases(1):

NEW LEASES - FIRST GENERATION
		Location							Lease Expiration Date		Sq. Ft.
1		Etna		OH					10/29		250,020
1		TOTAL NEW LEASES - FIRST GENERATION									250,020
NEW LEASES - SECOND GENERATION
		Location							Lease Expiration Date		Sq. Ft.
1		Antioch		TN					10/29		67,200
1		TOTAL NEW LEASES - SECOND GENERATION									67,200
LEASE EXTENSIONS - SECOND GENERATION
		Location					Prior Term		Lease Expiration Date		Sq. Ft.
1		Winchester		VA			11/24		09/34		324,535
2		Whitestown		IN			12/24		01/28		95,832
2		TOTAL EXTENDED LEASES - SECOND GENERATION									420,367
3		TOTAL NEW AND EXTENDED LEASES - SECOND GENERATION									487,567

1. Excludes short-term leases.

As of September 30, 2024, LXP's stabilized portfolio was 93.2% leased. A total of 3.6 million square feet of first generation and new and extended second generation leases were entered into during the nine months ended September 30, 2024 with Base and Cash Base Rents increasing by an estimated 17.0% and 15.3% (42.5% and 39.1%, respectively, excluding tenant improvement reimbursements in one lease).

BALANCE SHEET

In the third quarter of 2024, LXP entered into forward interest rate swap agreements to effectively fix the interest rate related to an aggregate amount of $250.0 million of the term loan at an average interest rate of 4.31% from January 31, 2025 to January 31, 2027.

LXP also entered into forward interest rate swap agreements to effectively fix the interest rate related to an aggregate amount of $82.5 million of the Trust Preferred Securities at an average interest rate of 5.20% from October 30, 2024 to October 30, 2027.

LXP ended the quarter with net debt to Adjusted EBITDA at 6.1x. LXP's total consolidated debt was $1.6 billion at quarter end. The total consolidated debt had a weighted-average term to maturity of 5.7 years and a weighted-average interest rate of 3.804% as of September 30, 2024.

2024 EARNINGS GUIDANCE

LXP now estimates that its net income attributable to common shareholders for the year ended December 31, 2024 will be within an expected range of $0.14 to $0.15 per diluted common share. LXP is tightening its estimated Adjusted Company FFO for the year ended December 31, 2024, to be within an expected range of $0.63 to $0.64 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

THIRD QUARTER 2024 CONFERENCE CALL

LXP will host a conference call today, November 6, 2024, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended September 30, 2024. Interested parties may participate in this conference call by dialing 1-888-660-6082 or 1-929-201-6604. Conference ID is 1576583. A replay of the call will be available through November 13, 2024, at 1-800-770-2030 or 1-609-800-9909, pin code for all replay numbers is 1576583. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

ABOUT LXP INDUSTRIAL TRUST

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in target markets across the Sunbelt and Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit www.lxp.com.

Contact:

Investor or Media Inquiries for LXP Industrial Trust:Heather Gentry, Senior Vice President of Investor RelationsLXP Industrial Trust Phone: (212) 692-7200 E-mail: hgentry@lxp.com

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under LXP's control which may cause actual results, performance or achievements of LXP to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in LXP's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (2) the outbreak of highly infectious or contagious diseases and natural disasters, (3) authorization by LXP's Board of Trustees of future dividend declarations, (4) LXP's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2024, (5) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields (6) the failure to continue to qualify as a real estate investment trust, (7) changes in general business and economic conditions, including the impact of any legislation, (8) competition, (9) inflation and increases in operating costs, (10) labor shortages, (11) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (12) defaults or non-renewals of significant tenant leases, (13) changes in financial markets and interest rates, (14) changes in accessibility of debt and equity capital markets, (15) future impairment charges, and (16) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, LXP undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that LXP's expectations will be realized.

References to LXP refer to LXP Industrial Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

Non-GAAP Financial Measures - Definitions

LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures.

LXP believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles (“GAAP”), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating LXP's financial performance or cash flow from operating, investing or financing activities or liquidity.

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest expense, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties or changes in control, impairment charges, debt satisfaction gains (losses), net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash impact of sales-type leases and adjustments for pro-rata share of non-wholly owned entities. LXP's calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. LXP believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA.

Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio.

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements, non-cash sales-type lease income and lease termination income, and includes ancillary income. LXP believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.

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 payments, net, (5) non-cash income related to sales-type leases, (6) non-cash interest, (7) non-cash charges, net, (8) capitalized interest and internal costs, (9) cash paid for second generation tenant improvements, and (10) cash paid for second generation lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), LXP believes it provides a meaningful indication of its ability to fund its cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

First Generation Costs: Represents cash spend for tenant improvements, leasing costs and expenditures contemplated at acquisition for recently acquired properties with vacancy. Because all companies do not calculate First Generation Costs the same way, LXP's presentation may not be comparable to similarly titled measures of other companies.

Funds from Operations (“FFO”) and Adjusted Company FFO: LXP believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. LXP believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

The National Association of Real Estate Investment Trusts, or Nareit, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

LXP presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into LXP’s common shares, are converted at the beginning of the period. LXP also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio and not comparable from period to period. LXP believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of LXP’s operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of LXP's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate, (or has generated) divided by the acquisition/completion cost, (or sale price). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy excluding developer incentive fees or partner promotes, if any.

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 historical or future financial performance, financial position or cash flows. LXP defines NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, LXP's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. LXP believes that net income is the most directly comparable GAAP measure to NOI.

Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for two comparable reporting periods. As Same-Store NOI excludes the change in NOI from acquired, expanded and disposed of properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, LXP's Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of LXP's operating performance. However, Same-Store NOI should not be viewed as an alternative measure of LXP's financial performance since it does not reflect the operations of LXP's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of LXP's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact LXP's results from operations. LXP believes that net income is the most directly comparable GAAP measure to Same-Store NOI.

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation. LXP believes that second generation building improvements represent an investment in existing stabilized properties.

Stabilized Portfolio: All real estate properties other than non-stabilized properties. LXP considers stabilization to occur upon the earlier of 90% occupancy of the property or one year from the cessation of major construction activities. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction. If some portions of a development project are substantially complete and ready for use and other portions have not yet reached that stage, LXP ceases capitalizing costs on the completed portion of the project but continues to capitalize costs for the incomplete portion. When a portion of the development project is substantially complete and ready for its intended use, the project is placed in service and depreciation commences.

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited and in thousands, except share and per share data)
	Three months ended September 30,								Nine months ended September 30,
		2024				2023				2024				2023
Gross revenues:
Rental revenue	$	84,549			$	83,844			$	254,524			$	252,326
Other revenue		1,021				1,578				3,083				5,221
Total gross revenues		85,570				85,422				257,607				257,547
Expense applicable to revenues:
Depreciation and amortization		(48,387	)			(45,570	)			(144,243	)			(137,304	)
Property operating		(15,011	)			(14,693	)			(45,681	)			(45,681	)
General and administrative		(10,993	)			(8,614	)			(29,734	)			(26,862	)
Non-operating income		642				394				7,145				731
Interest and amortization expense		(16,037	)			(10,965	)			(50,624	)			(32,502	)
Transaction costs		—				—				(498	)			(4	)
Impairment charges		—				—				—				(16,490	)
Change in allowance for credit loss		(42	)			(2	)			(51	)			29
Gains on sales of properties		11,050				7,154				19,402				15,033
Gain on change in control of a subsidiary		—				—				209				—
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities		6,792				13,126				13,532				14,497
Provision for income taxes		(21	)			(220	)			(229	)			(646	)
Equity in earnings (losses) of non-consolidated entities		(1,158	)			(5	)			(3,444	)			2,585
Net income		5,613				12,901				9,859				16,436
Less net (income) loss attributable to noncontrolling interests		733				(237	)			1,644				(654	)
Net income attributable to LXP Industrial Trust shareholders		6,346				12,664				11,503				15,782
Dividends attributable to preferred shares – Series C		(1,573	)			(1,573	)			(4,718	)			(4,718	)
Allocation to participating securities		(84	)			(52	)			(252	)			(186	)
Net income attributable to common shareholders	$	4,689			$	11,039			$	6,533			$	10,878
Net income attributable to common shareholders - per common share basic	$	0.02			$	0.04			$	0.02			$	0.04
Weighted-average common shares outstanding – basic		291,529,849				290,291,609				291,407,853				290,187,124
Net income attributable to common shareholders - per common share diluted	$	0.02			$	0.04			$	0.02			$	0.04
Weighted-average common shares outstanding – diluted		291,600,994				291,253,005				291,502,023				291,148,809

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESCONDENSED 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 in real estate under construction		66,961				319,355
Real estate, gross		4,415,479				4,488,862
Less: accumulated depreciation and amortization		1,000,154				904,709
Real estate, net		3,415,325				3,584,153
Assets held for sale		114,735				9,168
Right-of-use assets, net		16,097				19,342
Cash and cash equivalents		54,971				199,247
Restricted cash		232				216
Short term investments		—				130,140
Investments in non-consolidated entities		45,899				48,495
Deferred expenses, net		37,424				35,008
Investment in a sales-type lease, net		65,242				63,464
Rent receivable – current		1,713				5,327
Rent receivable – deferred		84,564				80,421
Other assets		17,850				17,794
Total assets	$	3,854,052			$	4,192,775
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	56,247			$	60,124
Term loan payable, net		297,551				296,764
Senior notes payable, net		1,088,853				1,286,145
Trust preferred securities, net		127,868				127,794
Dividends payable		39,740				39,610
Liabilities held for sale		155				417
Operating lease liabilities		16,754				20,233
Accounts payable and other liabilities		60,009				57,981
Accrued interest payable		15,533				11,379
Deferred revenue - including below market leases, net		7,809				9,428
Prepaid rent		17,783				17,443
Total liabilities		1,728,302				1,927,318
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding		94,016				94,016
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 294,486,892 and 293,449,088 shares issued and outstanding in 2024 and 2023, respectively		29				29
Additional paid-in-capital		3,312,336				3,330,383
Accumulated distributions in excess of net income		(1,309,046	)			(1,201,824	)
Accumulated other comprehensive income		2,518				9,483
Total shareholders’ equity		2,099,853				2,232,087
Noncontrolling interests		25,897				33,370
Total equity		2,125,750				2,265,457
Total liabilities and equity	$	3,854,052			$	4,192,775

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESEARNINGS PER SHARE(Unaudited and in thousands, except share and per share data)
			Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
				2024			2023			2024			2023
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders			$	4,689		$	11,039		$	6,533		$	10,878
Weighted-average number of common shares outstanding - basic				291,529,849			290,291,609			291,407,853			290,187,124
Net income attributable to common shareholders - per common share basic			$	0.02		$	0.04		$	0.02		$	0.04
Diluted:
Net income attributable to common shareholders - basic			$	4,689		$	11,039		$	6,533		$	10,878
Impact of assumed conversions				—			15			—			(63	)
Net income income attributable to common shareholders			$	4,689		$	11,054		$	6,533		$	10,815
Weighted-average common shares outstanding - basic				291,529,849			290,291,609			291,407,853			290,187,124
Effect of dilutive securities:
Unvested share-based payment awards				71,145			136,054			94,170			133,032
Operating partnership units				—			825,342			—			828,653
Weighted-average common shares outstanding - diluted				291,600,994			291,253,005			291,502,023			291,148,809
Net income attributable to common shareholders - per common share diluted			$	0.02		$	0.04		$	0.02		$	0.04

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
			Three Months Ended								Nine Months Ended
			September 30								September 30
				2024				2023				2024				2023
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders			$	4,689			$	11,039			$	6,533			$	10,878
Adjustments:
	Depreciation and amortization - real estate			46,834				44,596				139,979				134,484
	Impairment charges - real estate			—				—				—				16,490
	Noncontrolling interests - OP units			—				15				—				(63	)
	Amortization of leasing commissions			1,553				974				4,264				2,820
	Joint venture and noncontrolling interest adjustment			1,446				1,839				4,549				6,168
	Gains on sales of properties, including our share of non-consolidated entities			(11,050	)			(8,164	)			(19,685	)			(20,818	)
	Gain on change in control of a subsidiary			—				—				(209	)			—
FFO available to common shareholders and unitholders - basic				43,472				50,299				135,431				149,959
	Preferred dividends			1,573				1,573				4,718				4,718
	Amount allocated to participating securities			84				52				252				186
FFO available to all equityholders and unitholders - diluted				45,129				51,924				140,401				154,863
	Allowance for credit loss			42				2				51				(29	)
	Transaction costs, including our share of non-consolidated entities(1)			—				—				518				4
	Debt satisfaction losses, net, including our share of non-consolidated entities			—				—				3				—
	Non-recurring costs(2)			1,538				—				1,538				—
	Noncontrolling interest adjustments			(2	)			—				(102	)			1
Adjusted Company FFO available to all equityholders and unitholders - diluted				46,707				51,926				142,409				154,839
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
	Straight-line adjustments			(1,656	)			(2,213	)			(6,032	)			(7,938	)
	Lease incentives			430				109				898				314
	Amortization of above/below market leases			(694	)			(449	)			(1,600	)			(1,347	)
	Sales-type lease non-cash income			(626	)			(558	)			(1,828	)			(1,625	)
	Non-cash interest			1,108				820				3,415				2,459
	Non-cash charges, net			2,599				2,243				7,449				6,739
	Capitalized interest and internal costs			(756	)			(3,255	)			(3,817	)			(9,160	)
	Second generation tenant improvements			(786	)			(1,171	)			(1,245	)			(1,637	)
	Second generation lease costs			(2,102	)			(170	)			(11,356	)			(1,733	)
	Joint venture and noncontrolling interest adjustment			(86	)			(204	)			(199	)			(671	)
Company Funds Available for Distribution			$	44,138			$	47,078			$	128,094			$	140,240
Per Common Share and Unit Amounts
Basic:
	FFO		$	0.15			$	0.17			$	0.46			$	0.52
Diluted:
	FFO		$	0.15			$	0.18			$	0.47			$	0.52
	Adjusted Company FFO		$	0.16			$	0.18			$	0.48			$	0.52
Basic:
	Weighted-average common shares outstanding - basic EPS			291,529,849				290,291,609				291,407,853				290,187,124
	Operating partnership units(3)			—				825,342				—				828,653
	Weighted-average common shares outstanding - basic FFO			291,529,849				291,116,951				291,407,853				291,015,777
Diluted:
	Weighted-average common shares outstanding - diluted EPS			291,600,994				291,253,005				291,502,023				291,148,809
	Preferred shares - Series C			4,710,570				4,710,570				4,710,570				4,710,570
	Weighted-average common shares outstanding - diluted FFO			296,311,564				295,963,575				296,212,593				295,859,379

(1) Transaction costs including costs associated with terminated investments, such as non-refundable deposits and legal costs.(2) Includes non-recurring expenses for severance expense.(3) Includes OP units other than OP units that were held by us.

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
2024 EARNINGS GUIDANCE
	Twelve Months EndedDecember 31, 2024
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.14			$	0.15
Depreciation and amortization		0.68				0.68
Impact of capital transactions		(0.19	)			(0.19	)
Estimated Adjusted Company FFO per diluted common share	$	0.63			$	0.64

(1) Assumes all convertible securities are dilutive.