Company: LXP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001539497-25-001131
Chunk: 74

Company: LXP Industrial Trust
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 74
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 Funds from Operations, or FFO, is a widely recognized
and appropriate measure of the performance of an equity real estate investment trust (“REIT”). We believe 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 writedowns 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 - basic and also presents FFO available to all equityholders - 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 - diluted which adjusts FFO available to all equityholders - 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