Company: LXP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000910108-25-000020
Chunk: 93

Company: LXP Industrial Trust
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 93
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Table of Contents

Overview

As of March 31, 2025, we had equity ownership interests in approximately 118 consolidated real estate properties, located in 16 states and containing approximately 57.3 million square feet of rentable space, which were approximately 93.3% leased based upon net rentable square feet. 

Our portfolio is primarily Class A warehouse and distribution real estate investments focused in our 12 target markets within the Sunbelt and lower Midwest. We expect to grow in these markets by executing on our development pipeline, including through build-to-suits, and opportunistically acquiring facilities in these markets, including through capital recycling. However, increased financing costs continue to negatively impact transaction activity and development starts in our target markets and the markets where we own properties. Due to this, the current key drivers to growth in our revenue are leasing our vacant development properties and mark-to-market of our lease rollover. 

First Quarter 2025 Transaction Summary.

The following summarizes our transactions during the three months ended March 31, 2025.

Leasing Activity.

•Entered into lease extensions encompassing 1.1 million square feet. The average fixed rent on extended leases was $7.85 per square foot compared to the average fixed rent on these leases before extension of $6.37 per square foot. The weighted-average cost of tenant improvements and lease commissions was $1.19 per square foot for the extended leases.

Investments.

•Commenced redevelopment of 250,000 square foot warehouse facility located in Richmond, VA.

Dispositions.

•Disposed of our interest in one facility for a gross sale price of $35.0 million in a non-target market. 

Debt.

•Repaid $50.0 million of the $300.0 million term loan.

Critical Accounting Estimates

Our critical accounting estimates are included in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to these estimates during the three months ended March 31, 2025.

Liquidity and Capital Resources

Cash Flows. We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with applicable REIT requirements in both the short-term and long-term. However, our cash flow from operations may be negatively affected in the