Company: LXP
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001444838-25-000023
Chunk: 0

Company: LXP Industrial Trust
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1
Chunk 0
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Item 1. Business

General

We are a Maryland real estate investment trust, qualified as a REIT for federal income tax purposes, focused on Class A warehouse and distribution real estate investments in target markets in the Sunbelt and lower Midwest. A majority of our properties are subject to net or similar leases, where the tenant bears all or substantially all of the costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. However, certain leases provide that the landlord is responsible for certain operating expenses.

As of December 31, 2024, we had equity ownership interests in approximately 119 consolidated real estate properties, located in 17 states and containing an aggregate of approximately 57.8 million square feet of space, approximately 93.6% of which was leased.

During the year ended December 31, 2024, we disposed of our remaining consolidated office properties and our consolidated portfolio is 100% industrial.

History and Current Corporate Structure

We were formed in 1993 and converted to a Maryland REIT in December 1997. Primarily all of our business is conducted through wholly-owned subsidiaries, but historically we conducted a portion of our business through an operating partnership subsidiary, Lepercq Corporate Income Fund L.P., which we refer to as LCIF. 

Strategy

General. Our business strategy is focused on growing our portfolio in our target markets while maintaining a strong, flexible balance sheet to allow us to act on opportunities as they arise. We acquire and develop warehouse and distribution facilities in markets with strong income and growth characteristics that we believe provide an optimal balance of income and capital appreciation.

We provide capital to merchant builders by providing construction financing and/or a takeout for build-to-suit projects and speculative development properties. We believe our development strategy has the potential to provide us with higher returns than we could obtain by acquiring fully-leased buildings. We also believe our strategy mitigates against certain development risks and overhead costs because we partner with merchant builders, who are generally responsible for typical cost overruns. However, we are constantly exploring ways to be more efficient and earn higher returns.

We believe our single-tenant industrial focus mitigates against unexpected costs and the cyclicality of many asset classes and investment strategies and provides shareholders with a secure dividend. We believe our strategy is more conservative than most industrial REITs and provides defensive attributes for investors in the industrial sector and better growth potential for investors compared to the net lease sector. 

Target Markets. We focus our investment strategy on growing markets within the Sunbelt and