Company: LXP
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001444838-25-000023
Chunk: 112

Company: LXP Industrial Trust
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 112
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Interest rate swap assets$6,134 $— $6,134 $—  Fair Value Measurements UsingDescription2023(Level 1)(Level 2)(Level 3)Interest rate swap assets$9,471 $— $9,471 $— Impaired assets held for sale (1)$9,170 $— $— $9,170 (1) The Company estimated the fair value of certain real estate assets throughout the year based on a discounted cash flow analysis using a discount rate of 10.0% and a residual capitalization rate of 8.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2024 and 2023, the Company determined that the credit valuation adjustment relative to the overall interest rate swaps was not significant. As a result, all interest rate swaps have been classified in Level 2 of the fair value hierarchy.The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2024 and 2023: As of December 31, 2024As of December 31, 2023 CarryingAmountFair ValueCarryingAmountFair ValueAssets    Investment in a sales-type lease, net$— $— $63,464 $62,500 Liabilities    Debt$1,570,010 $1,459,062 $1,770,827 $1,630,066 The fair value of the Company's investment in a sales-type lease, net was primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis and an estimate of the unguaranteed residual value.The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates. The Company determines the fair value of its Senior Notes using market prices. The inputs used in determining the fair value of these notes are categorized as Level