Company: LXP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000910108-25-000041
Chunk: 89

Company: LXP Industrial Trust
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 89
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 INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2025 and 2024(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The Company elected that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited Condensed Consolidated Statements of Operations. The primary non-lease service included within rental revenue is common area maintenance services provided as part of the Company’s real estate leases. ASC 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. For the six months ended June 30, 2025, the Company incurred $60 of costs that were incremental to the execution of leases.The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.Rental Revenue Classification. The following table presents the Company’s classification of rental revenue for its operating leases and sales-type lease for the three and six months ended June 30, 2025 and 2024: Three Months Ended June 30,Six Months Ended June 30,Classification 2025202420252024Fixed$72,285 $69,748 $145,175 $139,760 Sales-type lease income— 1,917 — 3,816 Variable(1)14,459 13,103 29,462 26,399 Total$86,744 $84,768 $174,637 $169,975 (1)  Primarily comprised of tenant reimbursements.Future fixed rental receipts for operating leases assuming no new or re-negotiated leases as of June 30, 2025 were as follows: Operating2025 - remainder$141,742 2026278,808 2027242,688 2028207,663 2029181,346 2030138,990 Thereafter395,809 Total$1,587,046 The minimum lease payments above do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases, unless such