LXP LXP Industrial Trust

LXP Industrial Trust (“LXP”) (NYSE:LXP), a real estate investment trust focused on single-tenant warehouse/distribution real estate investments, today announced results for the quarter ended September 30, 2023.

Third Quarter 2023 Highlights

• Recorded Net Income attributable to common shareholders of $11.0 million, or $0.04 per diluted common share.
• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $51.9 million, or $0.18 per diluted common share.
• Increased Industrial Same-Store NOI 5.0% in the third quarter compared to the same period in 2022.
• Completed 481,500 square feet of new and extended leases, raising Industrial Base and Cash Base Rents by 26.3% and 15.9%, respectively.
• Leased a speculative, 304,884 square foot development project in the Greenville-Spartanburg, South Carolina market.
• Disposed of two office properties for an aggregate gross sale price of $48.1 million.
• Completed the forward purchase of a newly-constructed, 124,450 square foot warehouse/distribution facility in the Dallas, Texas market for approximately $15.0 million.
• Invested an aggregate of $36.5 million in development activities, including $23.8 million in six ongoing consolidated development projects.
• Completed construction of the core and shell of one warehouse/distribution facility containing 138,672 square feet in the Central Florida market.
• Ended the quarter with net debt to Adjusted EBITDA of 6.2x compared to 7.1x at September 30, 2022.

Subsequent Events

• Completed 1,075,764 square feet of new and extended leases, raising Base and Cash Base rents by 56.7% and 29.9%, respectively, excluding a fixed rate renewal.
• Leased 57,690 square feet of the South Shore development project.

T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, “We are pleased with our third quarter accomplishments, including the sale of the Philadelphia and New Jersey office assets and the execution of 300,000 square feet of additional leasing in our development portfolio. Year to date, we’ve executed 5.8 million square feet of new leases and extensions, increasing Base and Cash Base rents 51.1% and 33.3%, respectively, on non-development leasing adjusted for two fixed rate renewals. Our leasing team continues to deliver strong mark-to-market outcomes, that, together with higher average annual escalators on new leases, are driving robust same-store industrial NOI growth.”

FINANCIAL RESULTS

Revenues

For the quarter ended September 30, 2023, total gross revenues were $85.4 million, compared with total gross revenues of $80.1 million for the quarter ended September 30, 2022. The increase is primarily attributable to revenue from acquisitions, market rent increases and stabilized development projects, which was partially offset by sales.

Net Income Attributable to Common Shareholders

For the quarter ended September 30, 2023, net income attributable to common shareholders was $11.0 million, or $0.04 per diluted share, compared with net income attributable to common shareholders for the quarter ended September 30, 2022 of $21.8 million, or $0.08 per diluted share.

Adjusted Company FFO

For the quarter ended September 30, 2023, LXP generated Adjusted Company FFO of $51.9 million, or $0.18 per diluted share, compared to Adjusted Company FFO for the quarter ended September 30, 2022 of $48.1 million, or $0.17 per diluted share.

Dividends/Distributions

LXP announced that it declared a regular quarterly common share/unit dividend/distribution for the quarter ending December 31, 2023 of $0.13 per common share/unit payable January 16, 2024 to common shareholders/unitholders of record as of December 29, 2023. This represents an increase of 4% from the previous quarterly per share common share/unit dividend/distribution and equates to an annualized increase of $0.02 per common share/unit and an annualized dividend/distribution of $0.52 per common share/unit, subject to and assuming future declarations.

LXP also announced that it declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred") for the quarter ending December 31, 2023, which is expect to be paid on February 15, 2024 to shareholders of record as of January 31, 2024.

As previously announced, during the third quarter of 2023, LXP declared a regular quarterly common share/unit dividend/distribution for the quarter ending September 30, 2023 of $0.125 per common share/unit, which was paid on October 16, 2023 to common shareholders/unitholders of record as of September 29, 2023. LXP also declared a cash dividend of $0.8125 per share of Series C Preferred for the quarter ending September 30, 2023, which is expected to be paid on November 15, 2023 to shareholders of record as of October 31, 2023.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTION

Property Type

Market

Sq. Ft.

Initial Cost Basis ($000)

Approximate Lease Term (Yrs)

% Leased

Warehouse/Distribution(1)

Dallas, TX

124,450

$

15,018

N/A

—%

1. Completed forward purchase.

ONGOING DEVELOPMENT PROJECTS
Project (% owned)	# of Buildings	Market	Estimated Sq. Ft.		Estimated Project Cost(1) ($000)			GAAP Investment Balance as of09/30/23 ($000)(2)			LXP Amount Fundedas of09/30/23 ($000)(3)		Actual/Estimated Base Building Completion Date	% Leased as of 09/30/23		Estimated Placed in Service Date
Consolidated:
Development Projects Leased:
The Cubes at Etna East (95%)	1	Columbus, OH	1,074,840		$	76,600		$	64,101		$	67,927	3Q 2022	100	%	4Q 2023 (4)
Smith Farms (90%)	1	Greenville-Spartanburg, SC	304,884			25,000			21,535			19,745	2Q 2023	100	%	4Q 2023
Cotton 303 (93%)	1	Phoenix, AZ	488,400			55,300			42,814			38,814	4Q 2023	100	%	1Q 2024
	3		1,868,124		$	156,900		$	128,450		$	126,486
Development Projects Available for Lease:
Ocala (80%)	1	Central Florida	1,085,280		$	83,900		$	79,034		$	69,317	1Q 2023	—	%	—
Mt. Comfort (80%)	1	Indianapolis, IN	1,053,360			66,100			63,871			58,071	1Q 2023	—	%	—
Smith Farms (90%)	1	Greenville-Spartanburg, SC	1,091,888			76,600			71,644			65,595	2Q 2023	—	%	—
South Shore (100%)	2	Central Florida	270,885			42,500			37,447			34,808	2Q 2023 - 3Q 2023	(5	)	—
	5		3,501,413		$	269,100		$	251,996		$	227,791
	8		5,369,537		$	426,000		$	380,446		$	354,277
Non-Consolidated Development Project:
ETNA Building D (90%)(6)	1	Columbus, OH	250,020		$	29,200		N/A			$	8,811	1Q 2024	—	%	—

1. Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any.
2. Excludes leasing costs.
3. Excludes noncontrolling interests' share.
4. Subsequent to 9/30/2023, property placed into service.
5. Subsequent to 9/30/2023, 57,690 square feet leased for a five-year term.
6. The ETNA Park 70 joint venture commenced development of a 250,020 square foot speculative development project in the second quarter of 2023. GAAP Investment Balance as of 9/30/2023 is included in joint venture balance located in chart on page 4. A wholly-owned subsidiary of LXP entered into an agreement to fund all of the construction costs to complete the Etna Park 70 industrial development project. The subsidiary intends to purchase the property from ETNA Park 70 when the land parcel underlying the construction project is subdivided.

LAND HELD FOR INDUSTRIAL DEVELOPMENT

Project (% owned)		Market		Approx. Developable Acres		GAAP Investment Balance as of09/30/23 ($000)			LXP Amount Fundedas of09/30/23 ($000)(1)
Consolidated:
Reems & Olive (95.5%)		Phoenix, AZ		320		$	77,653		$	74,913
Mt. Comfort Phase II (80%)		Indianapolis, IN		116			5,323			4,279
ATL Fairburn JV (100%)		Atlanta, GA		14			1,732			1,740
				450		$	84,708		$	80,932

Project (% owned)		Market		Approx. Developable Acres		GAAP Investment Balance as of09/30/23($000)			LXP Amount Fundedas of09/30/23 ($000)(1)
Non-consolidated:
ETNA Park 70 (90%)		Columbus, OH		52		$	13,297		$	13,775
ETNA Park 70 East (90%)		Columbus, OH		21			2,122			2,501
				73		$	15,419		$	16,276

1. Excludes noncontrolling interests' share.

PROPERTY DISPOSITIONS

Location		Property Type		Gross Disposition Price($000)			Annualized Net Income(1) ($000)			Annualized NOI(1) ($000)			Month of Disposition		% Leased
Whippany, NJ		Office		$	21,820		$	2,021		$	1,820		August		100	%
Philadelphia, PA		Office			26,250			5,449			5,332		September		97	%
Total				$	48,070		$	7,470		$	7,152

1. Generally, quarterly period prior to sale, annualized.

The properties above sold at aggregate weighted-average GAAP and Cash capitalization rates of 15.6% and 14.9%, respectively.

LEASING

During the third quarter of 2023, LXP executed the following new leases and extensions:

		NEW LEASES - FIRST GENERATION(1)
		Location					Lease Expiration Date		Sq. Ft.
		Industrial
1		Greer	SC				02/2029		304,884
1		TOTAL NEW LEASES - FIRST GENERATION							304,884

NEW LEASES - SECOND GENERATION

Location

Lease Expiration Date

Sq. Ft.

Industrial

1

Antioch (2)

TN

05/2028

73,500

1

TOTAL NEW LEASES - SECOND GENERATION

73,500

LEASE EXTENSIONS - SECOND GENERATION

Location

Prior Term

Lease Expiration Date

Sq. Ft.

Industrial

1

Duncan(3)

SC

01/2024

01/2029

408,000

1

TOTAL EXTENDED LEASES - SECOND GENERATION

408,000

2

TOTAL NEW AND EXTENDED SECOND GENERATION LEASES

481,500

1. No prior leases. This tenant leased first generation space in our development project.
2. An existing tenant at the property signed an amendment expanding into an additional 73,500 square feet that had been vacant for more than one year. The Antioch facility is now fully occupied.
3. During the second quarter, the tenant executed its renewal option to extended its lease term for three years but a fair market value rent could not be determined as of June 30, 2023. During the third quarter, the lease was amended for a five-year renewal term until January 2029 instead of a three-year renewal term.

As of September 30, 2023, LXP's stabilized industrial portfolio was 99.2% leased. A total of 4.6 million square feet of new and extended industrial leases were entered into from January 1, 2023 through September 30, 2023, with Base and Cash Base Rents increasing by 40.8% and 25.8%, respectively.

BALANCE SHEET/CAPITAL MARKETS

As of September 30, 2023, LXP ended the quarter with net debt to Adjusted EBITDA at 6.2x. LXP's total consolidated debt was $1.5 billion at quarter end with 91.3% at fixed rates. The total consolidated debt had a weighted-average term to maturity of 5.8 years and a weighted-average interest rate of 3.3% as of September 30, 2023.

2023 EARNINGS GUIDANCE

LXP now estimates that its net income attributable to common shareholders for the year ended December 31, 2023 will be within an expected range of $0.25 to $0.27 per diluted common share. LXP is also tightening its estimated Adjusted Company FFO for the year ended December 31, 2023, to be within an expected range of $0.68 and $0.70 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

THIRD QUARTER 2023 CONFERENCE CALL

LXP will host a conference call today, October 31, 2023, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended September 30, 2023. Interested parties may participate in this conference call by dialing 1-888-660-6082 or 1-929-201-6604. Conference ID is 1576583. A replay of the call will be available through January 28, 2024, at 1-800-770-2030 or 1-647-362-9199, pin code for all replay numbers is 1576583. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit www.lxp.com.

Contact:

Investor or Media Inquiries for LXP Industrial Trust:Heather Gentry, Senior Vice President of Investor RelationsLXP Industrial Trust Phone: (212) 692-7200 E-mail: hgentry@lxp.com

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under LXP's control which may cause actual results, performance or achievements of LXP to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in LXP's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (2) the outbreak of highly infectious or contagious diseases and natural disasters, (3) authorization by LXP's Board of Trustees of future dividend declarations, (4) LXP's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2023, (5) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields (6) the failure to continue to qualify as a real estate investment trust, (7) changes in general business and economic conditions, including the impact of any legislation, (8) competition, (9) inflation and increases in operating costs, (10) labor shortages, (11) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (12) defaults or non-renewals of significant tenant leases, (13) changes in financial markets and interest rates, (14) changes in accessibility of debt and equity capital markets, (15) future impairment charges, and (16) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, LXP undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that LXP's expectations will be realized.

References to LXP refer to LXP Industrial Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

Non-GAAP Financial Measures - Definitions

LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures.

LXP believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles (“GAAP”), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating LXP's financial performance or cash flow from operating, investing or financing activities or liquidity.

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties, impairment charges, debt satisfaction gains (losses), net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash impact of sales-type leases and adjustments for pro-rata share of non-wholly owned entities. LXP's calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. LXP believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA.

Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio.

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements, non-cash sales-type lease income and lease termination income and includes ancillary income. LXP believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.

Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash income related to sales-type leases, (6) non-cash interest, (7) non-cash charges, net, (8) capitalized interest and internal costs, (9) cash paid for second generation tenant improvements, and (10) cash paid for second generation lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), LXP believes it provides a meaningful indication of its ability to fund its quarterly distributions. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

First Generation Costs: Represents cash spend for tenant improvements and leasing costs for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, LXP's presentation may not be comparable to similarly titled measures of other companies.

Funds from Operations (“FFO”) and Adjusted Company FFO: LXP believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. LXP believes 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 write-downs 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 and unitholders - basic and also presents FFO available to all equityholders and unitholders - 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 and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio. 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 measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of LXP’s operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of LXP's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate, (or has generated) divided by the acquisition/completion cost, (or sale price). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy including partner promotes, if any.

Net Operating Income (“NOI”): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of LXP's historical or future financial performance, financial position or cash flows. LXP defines NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, LXP's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. LXP believes that net income is the most directly comparable GAAP measure to NOI.

Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for two comparable reporting periods. As Same-Store NOI excludes the change in NOI from acquired and disposed of properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, LXP's Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of LXP's operating performance. However, Same-Store NOI should not be viewed as an alternative measure of LXP's financial performance since it does not reflect the operations of LXP's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of LXP's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact LXP's results from operations. LXP believes that net income is the most directly comparable GAAP measure to Same-Store NOI.

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation. LXP believes that second generation building improvements represent an investment in existing stabilized properties.

Stabilized Portfolio: All real estate properties other than acquired or developed properties that have not achieved 90% occupancy within one-year of acquisition or substantial completion. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction. Upon stabilization, a property is placed in service. Depreciation on development buildings commences when the asset is ready for its intended use, which we define as the earlier of when a property that was developed has been completed for one year, or is 90% occupied.

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited and in thousands, except share and per share data)
	Three months ended September 30,								Nine months ended September 30,
		2023				2022				2023				2022
Gross revenues:
Rental revenue	$	83,844			$	78,274			$	252,326			$	234,749
Other revenue		1,578				1,814				5,221				5,392
Total gross revenues		85,422				80,088				257,547				240,141
Expense applicable to revenues:
Depreciation and amortization		(45,570	)			(44,946	)			(137,304	)			(134,645	)
Property operating		(14,693	)			(13,961	)			(45,681	)			(42,279	)
General and administrative		(8,614	)			(9,060	)			(26,866	)			(29,093	)
Non-operating income		394				242				731				353
Interest and amortization expense		(10,965	)			(11,255	)			(32,502	)			(32,758	)
Debt satisfaction losses, net		—				(119	)			—				(119	)
Impairment charges		—				(628	)			(16,490	)			(2,457	)
Change in allowance for credit loss		(2	)			—				29				—
Gains on sales of properties		7,154				24,841				15,033				52,951
Selling profit from sales-type lease		—				—				—				9,314
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities		13,126				25,202				14,497				61,408
Provision for income taxes		(220	)			(271	)			(646	)			(951	)
Equity in earnings (losses) of non-consolidated entities		(5	)			(1,340	)			2,585				15,580
Net income		12,901				23,591				16,436				76,037
Less net income attributable to noncontrolling interests		(237	)			(201	)			(654	)			(727	)
Net income attributable to LXP Industrial Trust shareholders		12,664				23,390				15,782				75,310
Dividends attributable to preferred shares – Series C		(1,573	)			(1,573	)			(4,718	)			(4,718	)
Allocation to participating securities		(52	)			(41	)			(186	)			(151	)
Net income attributable to common shareholders	$	11,039			$	21,776			$	10,878			$	70,441
Net income attributable to common shareholders - per common share basic	$	0.04			$	0.08			$	0.04			$	0.25
Weighted-average common shares outstanding – basic		290,291,609				277,535,717				290,187,124				281,559,058
Net income attributable to common shareholders - per common share diluted	$	0.04			$	0.08			$	0.04			$	0.25
Weighted-average common shares outstanding – diluted		291,253,005				278,521,946				291,148,809				284,609,950

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited and in thousands, except share and per share data)
	September 30, 2023				December 31, 2022
Assets:
Real estate, at cost	$	3,706,146			$	3,691,066
Real estate - intangible assets		318,549				328,607
Land held for development		84,708				84,412
Investments in real estate under construction		380,446				361,924
Real estate, gross		4,489,849				4,466,009
Less: accumulated depreciation and amortization		893,031				800,470
Real estate, net		3,596,818				3,665,539
Assets held for sale		11,691				66,434
Right-of-use assets, net		20,390				23,986
Cash and cash equivalents		35,421				54,390
Restricted cash		211				116
Investments in non-consolidated entities		52,351				58,206
Deferred expenses, net		31,350				25,207
Investment in a sales-type lease, net		62,887				61,233
Rent receivable – current		6,636				3,030
Rent receivable – deferred		78,665				71,392
Other assets		32,584				24,314
Total assets	$	3,929,004			$	4,053,847
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	63,390			$	72,103
Term loan payable, net		299,334				298,959
Senior notes payable, net		990,318				989,295
Trust preferred securities, net		127,769				127,694
Dividends payable		38,304				38,416
Liabilities held for sale		1,083				1,150
Operating lease liabilities		21,269				25,118
Accounts payable and other liabilities		57,296				74,261
Accrued interest payable		10,681				9,181
Deferred revenue - including below market leases, net		9,889				11,452
Prepaid rent		15,531				15,215
Total liabilities		1,634,864				1,662,844
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding		94,016				94,016
Common shares, par value $0.0001 per share; authorized 600,000,000 shares,
292,611,107 and 291,719,310 shares issued and outstanding in 2023 and 2022, respectively		29				29
Additional paid-in-capital		3,324,790				3,320,087
Accumulated distributions in excess of net income		(1,177,212	)			(1,079,087	)
Accumulated other comprehensive income		14,362				17,689
Total shareholders’ equity		2,255,985				2,352,734
Noncontrolling interests		38,155				38,269
Total equity		2,294,140				2,391,003
Total liabilities and equity	$	3,929,004			$	4,053,847

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

(Unaudited and in thousands, except share and per share data)

			Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
				2023			2022			2023				2022
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders			$	11,039		$	21,776		$	10,878			$	70,441
Weighted-average number of common shares outstanding - basic				290,291,609			277,535,717			290,187,124				281,559,058
Net income attributable to common shareholders - per common share basic			$	0.04		$	0.08		$	0.04			$	0.25
Diluted:
Net income attributable to common shareholders - basic			$	11,039		$	21,776		$	10,878			$	70,441
Impact of assumed conversions				15			11			(63	)			147
Net income attributable to common shareholders			$	11,054		$	21,787		$	10,815			$	70,588
Weighted-average common shares outstanding - basic				290,291,609			277,535,717			290,187,124				281,559,058
Effect of dilutive securities:
Unvested share-based payment awards				136,054			139,371			133,032				491,877
Shares issuable under forward sales agreements				—			—			—				1,699,789
Operating partnership units				825,342			846,858			828,653				859,226
Weighted-average common shares outstanding - diluted				291,253,005			278,521,946			291,148,809				284,609,950
Net income attributable to common shareholders - per common share diluted			$	0.04		$	0.08		$	0.04			$	0.25

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
				Three Months Ended								Nine Months Ended
				September 30,								September 30,
					2023				2022				2023				2022
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders				$	11,039			$	21,776			$	10,878			$	70,441
Adjustments:
	Depreciation and amortization - real estate				44,596				44,227				134,484				132,600
	Impairment charges - real estate, including our share of non-consolidated entities				—				1,256				16,490				7,299
	Noncontrolling interests - OP units				15				11				(63	)			147
	Amortization of leasing commissions				974				719				2,820				2,045
	Joint venture and noncontrolling interest adjustment				1,839				2,612				6,168				8,585
	Gains on sales of properties, including our share of non-consolidated entities				(8,164	)			(24,842	)			(20,818	)			(75,803	)
FFO available to common shareholders and unitholders - basic					50,299				45,759				149,959				145,314
	Preferred dividends				1,573				1,573				4,718				4,718
	Amount allocated to participating securities				52				41				186				151
FFO available to all equityholders and unitholders - diluted					51,924				47,373				154,863				150,183
	Selling profit from sales-type lease(1)				—				—				—				(9,314	)
	Allowance for credit loss				2				—				(29	)			—
	Debt satisfaction losses, net, including our share of non-consolidated entities				—				119				—				1,614
	Non-recurring costs(2)				—				640				4				2,629
	Noncontrolling interest adjustments				—				—				1				—
Adjusted Company FFO available to all equityholders and unitholders - diluted					51,926				48,132				154,839				145,112
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
	Straight-line adjustments				(2,213	)			(2,078	)			(7,938	)			(8,893	)
	Lease incentives				109				128				314				391
	Amortization of above/below market leases				(449	)			(455	)			(1,347	)			(1,416	)
	Sales-type lease non-cash income				(558	)			—				(1,625	)			—
	Non-cash interest				820				820				2,459				2,459
	Non-cash charges, net				2,243				1,941				6,739				5,637
	Capitalized interest and internal costs				(3,255	)			(2,414	)			(9,160	)			(5,465	)
	Second generation tenant improvements				(1,171	)			(499	)			(1,637	)			(5,016	)
	Second generation lease costs				(170	)			(1,380	)			(1,733	)			(2,138	)
	Joint venture and noncontrolling interest adjustment				(204	)			111				(671	)			(108	)
Company Funds Available for Distribution				$	47,078			$	44,306			$	140,240			$	130,563
Per Common Share and Unit Amounts
Basic:
	FFO			$	0.17			$	0.16			$	0.52			$	0.51
Diluted:
	FFO			$	0.18			$	0.17			$	0.52			$	0.52
	Adjusted Company FFO			$	0.18			$	0.17			$	0.52			$	0.50
Basic:
	Weighted-average common shares outstanding - basic EPS				290,291,609				277,535,717				290,187,124				281,559,058
	Operating partnership units(3)				825,342				846,858				828,653				859,226
	Weighted-average common shares outstanding - basic FFO				291,116,951				278,382,575				291,015,777				282,418,284
Diluted:
	Weighted-average common shares outstanding - diluted EPS				291,253,005				278,521,946				291,148,809				284,609,950
	Unvested share-based payment awards				—				—				—				23,175
	Preferred shares - Series C				4,710,570				4,710,570				4,710,570				4,710,570
	Weighted-average common shares outstanding - diluted FFO				295,963,575				283,232,516				295,859,379				289,343,695

(1) Gain recognized upon exercise of the tenant's purchase option in the lease. (2) Includes costs related to transactions, strategic alternatives and shareholder activism.(3) Includes OP units other than OP units held by us.

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
2023 EARNINGS GUIDANCE
	Twelve Months EndedDecember 31, 2023
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.25			$	0.27
Depreciation and amortization		0.65				0.65
Impact of capital transactions		(0.22	)			(0.22	)
Estimated Adjusted Company FFO per diluted common share	$	0.68			$	0.70

(1) Assumes all convertible securities are dilutive.