Company: LXP
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000910108-25-000067
Chunk: 93

Company: LXP Industrial Trust
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 93
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. The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of the identified asset for a period of time, the Company accounts for the contract as a lease.The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.Supplemental information related to operating leases is as follows:Nine Months EndedSeptember 30, 2025September 30, 2024Weighted-average remaining lease termOperating leases (years)9.48.9Weighted-average discount rateOperating leases4.3 %4.1 %The components of lease expense for the nine months ended September 30, 2025 and 2024 were as follows: Income Statement Classification FixedVariableTotal 2025:Property operating$2,578 $15 $2,593 General and administrative(1)1,412 232 1,644 Total$3,990 $247 $4,237 2024:Property operating$2,628 $15 $2,643 General and administrative1,213 187 1,400 Total$3,841 $202 $4,043 (1) For the nine months ended September 30, 2025 and 2024, the general and administrative lease expense excludes a reduction of $741 and $492, respectively, to lease expense for the sublease of the Company's office space in New York, New York.

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Table of ContentsLXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSeptember 30, 2025 and 2024(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The Company recognized sublease income related to its ground leases in rental revenue of $2,433 and $2,484 for the nine months ended September 30