Company: LXP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000910108-25-000020
Chunk: 97

Company: LXP Industrial Trust
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 97
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 2025, we were compliant with all applicable financial covenants contained in our corporate-level debt agreements.

Development Costs

As of March 31, 2025, the aggregate amount of our consolidated development and redevelopment projects included in investment in real estate under construction are $17.5 million. We expect to incur approximately $41.0 million of additional costs, excluding noncontrolling interests' share and potential developer incentive fees or partner buyouts, to fund all of the remaining costs for our consolidated development project commitments, including vacation development projects placed in service. However, the risks associated with development, including supply chain issues, which may be exacerbated as a result of international trade conflicts associated with tariffs, could adversely impact our estimates. As of March 31, 2025, we had three consolidated and two non-consolidated subsidiaries that owned land parcels held for industrial development. We are unable to estimate the timing of any required fundings for potential development projects on these parcels.

Results of Operations

Three months ended March 31, 2025 compared with three months ended March 31, 2024. The increase in net income attributable to common shareholders of $19.2 million was primarily due to the items discussed below.

The increase in rental revenue of $2.7 million was primarily due to an aggregate increase in rental revenue of $8.4 million primarily due to properties placed in service, acquisitions and leasing, partially offset by a decrease in rental revenue of $5.7 million due to property sales and vacancies.

The increase in depreciation and amortization expense of $3.0 million was primarily due to properties acquired and/or completed and placed in service.

The increase in general and administrative expense of $0.9 million was primarily due to the increase in employee compensation, corporate rent expense and a decrease in capitalized payroll.

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The decrease in non-operating income of $3.2 million was primarily due to a decrease in interest income earned from investing in short-term investments.

The decrease in interest and amortization expense of $0.7 million was primarily due to a $2.2 million decrease in interest expense related to the 2024 Senior Notes that were repaid in full in 2024 and a decrease of $0.6 million related to the Trust Preferred Securities. These amounts were partially offset by a $0.4 million increase in interest expense related to the Term Loan and a decrease in capitalized interest of $1.7 million due to properties placed into service during 2024.

The increase in gain on