LXP Industrial Trust Reports Fourth Quarter 2022 Results
LXP Industrial Trust (NYSE:LXP) reported its fourth quarter and full-year 2022 results, with a net income attributable to common shareholders of $36.9 million, or $0.13 per diluted share in Q4. The total gross revenues for Q4 were $81.1 million, down from $86.5 million in Q4 2021. Adjusted Company FFO for Q4 was $47.9 million ($0.17 per diluted share), compared to $53.8 million ($0.18) a year earlier. For the full year 2022, net income was $107.3 million ($0.38 per diluted share) and Adjusted Company FFO was $193.1 million ($0.67). LXP completed 4.1 million square feet in leases, raising base rents by 30.7%. Looking ahead, the company forecasts 2023 Adjusted Company FFO between $0.66 and $0.70 per diluted share.
- Record net income attributable to common shareholders of $36.9 million in Q4 2022.
- Adjusted Company FFO for Q4 2022 is $47.9 million, indicating stable financial performance.
- 4.1 million square feet of new leases and extensions completed in 2022, raising base rents by 30.7%.
- Industrial Same-Store NOI increased by 6.7% quarter-to-date 2022 vs. 2021.
- Strong leasing activity, with a 99.5% stabilization rate for industrial portfolio.
- Total gross revenues decreased by 6.3% in Q4 2022 compared to Q4 2021.
- Net income attributable to common shareholders dropped significantly to $36.9 million from $260.5 million year-over-year.
- Adjusted Company FFO saw a decline from $53.8 million in Q4 2021 to $47.9 million in Q4 2022.
NEW YORK, Feb. 16, 2023 (GLOBE NEWSWIRE) -- 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 fourth quarter and year ended December 31, 2022.
Fourth Quarter 2022 Highlights
- Recorded Net Income attributable to common shareholders of
$36.9 million, or$0.13 per diluted common share. - Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of
$47.9 million, or$0.17 per diluted common share. - Completed 0.6 million square feet of new leases and lease extensions, raising industrial Base and Cash Base Rents by
38.1% and42.6% , respectively. - Industrial Same-Store NOI increased
6.7% quarter to date 2022 compared to 2021. - Leased approximately 100 acres of industrial development land in the Phoenix, Arizona market for 20 years.
- Completed construction of a warehouse/distribution facility containing 0.8 million square feet in the Greenville-Spartanburg, South Carolina market.
- Invested an aggregate of
$67.6 million in development activities, including$53.3 million in six ongoing development projects. - Disposed of four properties for an aggregate gross sales price of
$49.6 million .
Full Year 2022 Highlights
- Recorded Net Income attributable to common shareholders of
$107.3 million , or$0.38 per diluted common share. - Generated Adjusted Company FFO of
$193.1 million, or$0.67 per diluted common share. - Completed 4.1 million square feet of new leases and lease extensions, raising industrial Base and Cash Base Rents by
30.7% and25.6% , respectively. - Industrial Same-Store NOI increased
5.3% in 2022 compared to 2021. - Acquired three warehouse/distribution facilities for an aggregate cost of
$131.2 million. - Completed construction of two warehouse/distribution facilities containing 1.1 million and 0.8 million square feet in the Columbus, Ohio and Greenville-Spartanburg, South Carolina markets, respectively.
- Invested an aggregate of
$298.2 million in development activities, including$204.4 million in six ongoing development projects and 60 acres of developable land. - Amended unsecured credit facility extending the maturity of the revolving credit portion to July 2026.
- Leased approximately 100 acres of industrial development land in the Phoenix, Arizona market for 20 years.
- Repurchased and retired 12.1 million common shares at an average price of
$10.78 per share. - Disposed of 10 properties and one land parcel for an aggregate gross sales price of
$197.0 million.
T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented “Our strong operating performance in the fourth quarter was driven by notable accomplishments in leasing, dispositions and leverage reduction. Additionally, we delivered
FINANCIAL RESULTS
Revenues
For the quarter ended December 31, 2022, total gross revenues were
Net Income Attributable to Common Shareholders
For the quarter ended December 31, 2022, net income attributable to common shareholders was
Adjusted Company FFO
For the quarter ended December 31, 2022, LXP generated Adjusted Company FFO of
Dividends/Distributions
As previously announced, during the fourth quarter of 2022, LXP declared its quarterly common share/unit dividend/distribution for the quarter ended December 31, 2022 of
TRANSACTION ACTIVITY
| PROPERTY DISPOSITIONS | |||||||||||||||||||
| Location | Property Type | Gross Disposition Price ( | Annualized Net Income(1) ( | Annualized NOI(1) ( | Month of Disposition | % Leased | |||||||||||||
| Kalamazoo, MI | Other | $ | 1,175 | $ | (968 | ) | $ | (948 | ) | October | 35 | % | |||||||
| Henderson, NC (2) | Industrial | 6,841 | 279 | 497 | December | 100 | % | ||||||||||||
| Phoenix, AZ | Other | 5,250 | 507 | 629 | December | 56 | % | ||||||||||||
| Romulus, MI | Industrial | 36,378 | 594 | 2,484 | December | 100 | % | ||||||||||||
| $ | 49,644 | $ | 412 | $ | 2,662 | ||||||||||||||
- Generally, quarterly period prior to sale, annualized.
- Tenant exercised fixed-rate purchase option in the lease.
The above properties were sold at aggregate weighted-average GAAP and Cash capitalization rates of
| STABILIZED DEVELOPMENT | |||||||||||||
| Property Type | Market | Sq. Ft. | Initial Cost Basis ( | Approximate Lease Term (Yrs) | % Leased at Completion | ||||||||
| Warehouse/distribution(1) | Greenville-Spartanburg, SC | 797,936 | $ | 64,067 | 12.3 | 100 | % | ||||||
- Substantially completed and placed into service development project. LXP owns
90% . Initial cost basis excludes$3.0 million of lease commissions and certain remaining costs, including developer partner promote, if any. LXP funded an aggregate of$60.1 million as of December 31, 2022 for this project, of which,$12.8 million was funded in the fourth quarter of 2022.
| ONGOING DEVELOPMENT PROJECTS | ||||||||||||||||||
| Project (% owned) | # of Buildings | Market | Estimated Sq. Ft. | Estimated Project Cost(1) ( | GAAP Investment Balance as of 12/31/22 ( | LXP Amount Funded as of 12/31/22 ( | Actual/Estimated Building Completion Date | % Leased as of 12/31/22 | ||||||||||
| Consolidated: | ||||||||||||||||||
| The Cubes at Etna East ( | 1 | Columbus, OH | 1,074,840 | $ | 72,850 | $ | 61,171 | $ | 58,455 | 3Q 2022 | — | % | ||||||
| Ocala ( | 1 | Central Florida | 1,085,280 | 83,100 | 73,737 | 63,388 | 1Q 2023 | — | % | |||||||||
| Mt. Comfort ( | 1 | Indianapolis, IN | 1,053,360 | 65,500 | 59,379 | 49,848 | 1Q 2023 | — | % | |||||||||
| South Shore ( | 2 | Central Florida | 270,885 | 40,500 | 25,782 | 13,553 | 2Q 2023 | — | % | |||||||||
| Cotton 303 ( | 2 | Phoenix, AZ | 880,678 | 84,200 | 64,682 | 56,570 | 1Q 2023 - 2Q 2023 | 45 | % | |||||||||
| Smith Farms ( | 2 | Greenville- Spartanburg, SC | 1,396,884 | 101,550 | 77,173 | 67,780 | 1Q 2023 - 2Q 2023 | — | % | |||||||||
| $ | 447,700 | $ | 361,924 | $ | 309,594 | |||||||||||||
- Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any.
- Excludes noncontrolling interests' share.
- Base building achieved substantial completion. Property is not in service as of December 31, 2022.
- Pre-leased 392,278 square foot facility subject to a 10-year lease commencing upon substantial completion of the facility and notice to the tenant.
- In December 2022, substantially completed and placed into service a 797,936 square foot facility subject to a 12-year lease that commenced upon substantial completion of the facility. Remaining two projects ongoing.
LAND HELD FOR INDUSTRIAL DEVELOPMENT
| Project (% owned) | Market | Approx. Developable Acres | GAAP Investment Balance as of 12/31/22 ( | LXP Amount Funded as of 12/31/22 ( | |||||||||
| Consolidated: | |||||||||||||
| Reems & Olive ( | Phoenix, AZ | 320 | $ | 77,379 | $ | 73,957 | |||||||
| Mt. Comfort Phase II ( | Indianapolis, IN | 116 | 5,301 | 4,213 | |||||||||
| ATL Fairburn ( | Atlanta, GA | 14 | 1,732 | 1,736 | |||||||||
| 450 | $ | 84,412 | $ | 79,906 | |||||||||
| Project (% owned) | Market | Approx. Developable Acres | GAAP Investment Balance as of 12/31/22 ( | LXP Amount Funded as of 12/31/22 ( | |||||||||
| Non-consolidated: | |||||||||||||
| ETNA Park 70 ( | Columbus, OH | 66 | $ | 12,975 | $ | 13,599 | |||||||
| ETNA Park 70 East ( | Columbus, OH | 21 | 2,126 | 2,363 | |||||||||
| 87 | $ | 15,101 | $ | 15,962 | |||||||||
- Excludes noncontrolling interests' share.
- Ground leased approximately 100 acres of the original 420 acre developable land parcel located in the Phoenix, AZ market.
LEASING
During the fourth quarter of 2022, LXP executed the following new leases and extensions:
| NEW LEASES - FIRST GENERATION(1) | ||||||||
| Location | Lease Expiration Date | Sq. Ft. | ||||||
| Industrial | ||||||||
| 1 | Greer | SC | 12/2027 | 81,058 | ||||
| 1 | TOTAL NEW LEASES - FIRST GENERATION | 81,058 | ||||||
| LEASE EXTENSIONS - SECOND GENERATION | ||||||||||
| Location | Prior Term | Lease Expiration Date | Sq. Ft. | |||||||
| Industrial | ||||||||||
| 1 | Dallas | TX | 08/2023 | 09/2026 | 510,400 | |||||
| 1 | TOTAL LEASE EXTENSIONS - SECOND GENERATION | 510,400 | ||||||||
| INDUSTRIAL DEVELOPMENT LEASED LAND | ||||||||
| Location | Lease Expiration Date | Approx. Acres | ||||||
| 1 | Glendale(2) | AZ | 11/2042 | 100 | ||||
| 1 | TOTAL INDUSTRIAL DEVELOPMENT LEASED LAND | 100 | ||||||
- No prior leases, acquisition vacancy.
- Leased approximately 100 acres of the original 420 acre developable land parcel located in the Phoenix, AZ market, subject to a 20-year ground lease (with three, 10-year extension options) commenced in November 2022. The initial annual rental payments are
$5.2 million and escalate by4% annually.
As of December 31, 2022, LXP's stabilized industrial portfolio was
BALANCE SHEET/CAPITAL MARKETS
During the fourth quarter of 2022, LXP repurchased and retired 0.4 million common shares for an average price of
In the fourth quarter of 2022, LXP issued 16.0 million common shares previously sold on a forward basis as part of an underwritten offering for net proceeds of
As of December 31, 2022, LXP ended the quarter with net debt to Adjusted EBITDA at 6.4x. LXP's total consolidated debt was
2023 EARNINGS GUIDANCE
LXP estimates that its net income attributable to common shareholders for the year ended December 31, 2023 will be within an expected range of
FOURTH QUARTER 2022 CONFERENCE CALL
LXP will host a conference call today February 16, 2023, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2022. Interested parties may participate in this conference call by dialing 1-888-660-6144 (U.S.) or 1-929-203-0865 (All other locations). Access code is 5974526. A replay of the call will be available through May 17, 2023, at 1-800-770-2030 (U.S.) or 1-647-362-9199 (All other locations); pin code for all replay numbers is 5974526. 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 Relations
LXP 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, (2) the outbreak of highly infectious or contagious diseases, (3) the 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, build-to-suit, disposition, financing or other transaction, (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, increases in real estate construction costs and construction schedule delays, (10) changes in financial markets and interest rates, (11) changes in accessibility of debt and equity capital markets, (12) future impairment charges, and (13) 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 cash needs. 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
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
LXP INDUSTRIAL TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Gross revenues: | |||||||||||||||
| Rental revenue | $ | 79,243 | $ | 85,374 | $ | 313,992 | $ | 339,944 | |||||||
| Other revenue | 1,861 | 1,108 | 7,253 | 4,053 | |||||||||||
| Total gross revenues | 81,104 | 86,482 | 321,245 | 343,997 | |||||||||||
| Expense applicable to revenues: | |||||||||||||||
| Depreciation and amortization | (45,922 | ) | (46,135 | ) | (180,567 | ) | (176,714 | ) | |||||||
| Property operating | (12,647 | ) | (13,553 | ) | (54,870 | ) | (47,314 | ) | |||||||
| General and administrative | (9,621 | ) | (10,763 | ) | (38,714 | ) | (35,458 | ) | |||||||
| Transaction costs | (4,121 | ) | (227 | ) | (4,177 | ) | (432 | ) | |||||||
| Non-operating income | 582 | 411 | 935 | 1,364 | |||||||||||
| Interest and amortization expense | (12,659 | ) | (11,538 | ) | (45,417 | ) | (46,708 | ) | |||||||
| Debt satisfaction losses, net | — | (672 | ) | (119 | ) | (13,894 | ) | ||||||||
| Impairment charges | (580 | ) | (3,493 | ) | (3,037 | ) | (5,541 | ) | |||||||
| Change in allowance for credit loss | (93 | ) | — | (93 | ) | — | |||||||||
| Gains on sales of properties | 6,143 | 262,507 | 59,094 | 367,274 | |||||||||||
| Selling profit from sales-type leases | 37,745 | — | 47,059 | — | |||||||||||
| Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities | 39,931 | 263,019 | 101,339 | 386,574 | |||||||||||
| Provision for income taxes | (151 | ) | (307 | ) | (1,102 | ) | (1,293 | ) | |||||||
| Equity in earnings (losses) of non-consolidated entities | 426 | 59 | 16,006 | (190 | ) | ||||||||||
| Net income | 40,206 | 262,771 | 116,243 | 385,091 | |||||||||||
| Less net income attributable to noncontrolling interests | (1,733 | ) | (481 | ) | (2,460 | ) | (2,443 | ) | |||||||
| Net income attributable to LXP Industrial Trust shareholders | 38,473 | 262,290 | 113,783 | 382,648 | |||||||||||
| Dividends attributable to preferred shares – Series C | (1,572 | ) | (1,572 | ) | (6,290 | ) | (6,290 | ) | |||||||
| Allocation to participating securities | (35 | ) | (258 | ) | (186 | ) | (510 | ) | |||||||
| Net income attributable to common shareholders | $ | 36,866 | $ | 260,460 | $ | 107,307 | $ | 375,848 | |||||||
| Net income attributable to common shareholders – per common share basic | $ | 0.13 | $ | 0.93 | $ | 0.38 | $ | 1.35 | |||||||
| Weighted-average common shares outstanding – basic | 274,928,363 | 281,383,061 | 279,887,760 | 277,640,835 | |||||||||||
| Net income attributable to common shareholders – per common share diluted | $ | 0.13 | $ | 0.90 | $ | 0.38 | $ | 1.34 | |||||||
| Weighted-average common shares outstanding – diluted | 276,118,668 | 292,782,489 | 282,473,458 | 287,369,742 | |||||||||||
LXP INDUSTRIAL TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31,
(Unaudited and in thousands, except share and per share data)
| 2022 | 2021 | ||||||
| Assets: | |||||||
| Real estate, at cost | $ | 3,691,066 | $ | 3,583,978 | |||
| Real estate - intangible assets | 328,607 | 341,403 | |||||
| Land held for development | 84,412 | 104,160 | |||||
| Investments in real estate under construction | 361,924 | 161,165 | |||||
| Real estate, gross | 4,466,009 | 4,190,706 | |||||
| Less: accumulated depreciation and amortization | 800,470 | 655,740 | |||||
| Real estate, net | 3,665,539 | 3,534,966 | |||||
| Assets held for sale | 66,434 | 82,586 | |||||
| Right-of-use assets, net | 23,986 | 27,966 | |||||
| Cash and cash equivalents | 54,390 | 190,926 | |||||
| Restricted cash | 116 | 101 | |||||
| Investment in non-consolidated entities | 58,206 | 74,559 | |||||
| Deferred expenses, net | 25,207 | 18,861 | |||||
| Investment in a sales-type lease, net | 61,233 | — | |||||
| Rent receivable - current | 3,030 | 3,526 | |||||
| Rent receivable - deferred | 71,392 | 63,283 | |||||
| Other assets | 24,314 | 8,784 | |||||
| Total assets | $ | 4,053,847 | $ | 4,005,558 | |||
| Liabilities and Equity: | |||||||
| Liabilities: | |||||||
| Mortgages and notes payable, net | $ | 72,103 | $ | 83,092 | |||
| Term loan payable, net | 298,959 | 298,446 | |||||
| Senior notes payable, net | 989,295 | 987,931 | |||||
| Trust preferred securities, net | 127,694 | 127,595 | |||||
| Dividends payable | 38,416 | 37,425 | |||||
| Liabilities held for sale | 1,150 | 3,468 | |||||
| Operating lease liabilities | 25,118 | 29,094 | |||||
| Accounts payable and other liabilities | 74,261 | 77,607 | |||||
| Accrued interest payable | 9,181 | 8,481 | |||||
| Deferred revenue - including below market leases, net | 11,452 | 14,474 | |||||
| Prepaid rent | 15,215 | 14,717 | |||||
| Total liabilities | 1,662,844 | 1,682,330 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Preferred shares, par value | |||||||
| Series C Cumulative Convertible Preferred, liquidation preference | 94,016 | 94,016 | |||||
| Common shares, par value | 29 | 28 | |||||
| Additional paid-in-capital | 3,320,087 | 3,252,506 | |||||
| Accumulated distributions in excess of net income | (1,079,087 | ) | (1,049,434 | ) | |||
| Accumulated other comprehensive income (loss) | 17,689 | (6,258 | ) | ||||
| Total shareholders’ equity | 2,352,734 | 2,290,858 | |||||
| Noncontrolling interests | 38,269 | 32,370 | |||||
| Total equity | 2,391,003 | 2,323,228 | |||||
| Total liabilities and equity | $ | 4,053,847 | $ | 4,005,558 | |||
LXP INDUSTRIAL TRUST AND SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| EARNINGS PER SHARE: | |||||||||||||||
| Basic: | |||||||||||||||
| Net income attributable to common shareholders | $ | 36,866 | $ | 260,460 | $ | 107,307 | $ | 375,848 | |||||||
| Weighted-average common shares outstanding - basic | 274,928,363 | 281,383,061 | 279,887,760 | 277,640,835 | |||||||||||
| Net income attributable to common shareholders - per common share basic | $ | 0.13 | $ | 0.93 | $ | 0.38 | $ | 1.35 | |||||||
| Diluted: | |||||||||||||||
| Net income attributable to common shareholders - basic | $ | 36,866 | $ | 260,460 | $ | 107,307 | $ | 375,848 | |||||||
| Impact of assumed conversions | 9 | 1,853 | 156 | 7,962 | |||||||||||
| Net income attributable to common shareholders | $ | 36,875 | $ | 262,313 | $ | 107,463 | $ | 383,810 | |||||||
| Weighted-average common shares outstanding - basic | 274,928,363 | 281,383,061 | 279,887,760 | 277,640,835 | |||||||||||
| Effect of dilutive securities: | |||||||||||||||
| Unvested share-based payment awards | 354,750 | 1,223,218 | 457,597 | 989,177 | |||||||||||
| Shares issuable under forward sales agreements | — | 4,568,350 | 1,274,842 | 2,110,315 | |||||||||||
| Operating Partnership Units | 835,555 | 897,290 | 853,259 | 1,918,845 | |||||||||||
| Preferred shares - Series C | — | 4,710,570 | — | 4,710,570 | |||||||||||
| Weighted-average common shares outstanding - diluted | 276,118,668 | 292,782,489 | 282,473,458 | 287,369,742 | |||||||||||
| Net income attributable to common shareholders - per common share diluted | $ | 0.13 | $ | 0.90 | $ | 0.38 | $ | 1.34 | |||||||
LXP INDUSTRIAL TRUST AND SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| FUNDS FROM OPERATIONS: | |||||||||||||||
| Basic and Diluted: | |||||||||||||||
| Net income attributable to common shareholders | $ | 36,866 | $ | 260,460 | $ | 107,307 | $ | 375,848 | |||||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization | 45,125 | 45,391 | 177,725 | 173,833 | |||||||||||
| Impairment charges - real estate, including our share of non-consolidated entities | 838 | 3,493 | 8,137 | 5,541 | |||||||||||
| Noncontrolling interests - OP units | 9 | 281 | 156 | 1,672 | |||||||||||
| Amortization of leasing commissions | 797 | 744 | 2,842 | 2,881 | |||||||||||
| Joint venture and noncontrolling interest adjustment | 2,527 | 2,026 | 11,112 | 8,370 | |||||||||||
| Gains on sales of properties, including our share of non-consolidated entities | (7,759 | ) | (262,507 | ) | (83,562 | ) | (367,274 | ) | |||||||
| FFO available to common shareholders and unitholders - basic | 78,403 | 49,888 | 223,717 | 200,871 | |||||||||||
| Preferred dividends | 1,572 | 1,572 | 6,290 | 6,290 | |||||||||||
| Amount allocated to participating securities | 35 | 258 | 186 | 510 | |||||||||||
| FFO available to all equityholders and unitholders - diluted | 80,010 | 51,718 | 230,193 | 207,671 | |||||||||||
| Selling profit from sales-type leases (1) | (37,745 | ) | — | (47,059 | ) | — | |||||||||
| Allowance for credit loss | 93 | — | 93 | — | |||||||||||
| Transaction costs (2) | 4,121 | 227 | 4,177 | 432 | |||||||||||
| Debt satisfaction losses, net, including our share of non-consolidated entities | 1 | 672 | 1,615 | 13,894 | |||||||||||
| Other non-recurring costs (3) | — | 1,199 | 2,573 | 1,199 | |||||||||||
| Noncontrolling interest adjustments | 1,469 | — | 1,469 | — | |||||||||||
| Adjusted Company FFO available to all equityholders and unitholders - diluted | 47,949 | 53,816 | 193,061 | 223,196 | |||||||||||
| FUNDS AVAILABLE FOR DISTRIBUTION: | |||||||||||||||
| Adjustments: | |||||||||||||||
| Straight-line adjustments | (2,519 | ) | (4,178 | ) | (11,412 | ) | (12,324 | ) | |||||||
| Lease incentives | 127 | 175 | 518 | 780 | |||||||||||
| Amortization of above/below market leases | (449 | ) | (340 | ) | (1,865 | ) | (1,551 | ) | |||||||
| Lease termination payments, net | — | (330 | ) | — | 551 | ||||||||||
| Sales-type lease non-cash income | (342 | ) | — | (342 | ) | — | |||||||||
| Non-cash interest | 819 | 825 | 3,278 | 3,300 | |||||||||||
| Non-cash charges, net | 1,846 | 1,796 | 7,483 | 7,137 | |||||||||||
| Capitalized interest and internal costs | (2,549 | ) | (850 | ) | (8,014 | ) | (2,974 | ) | |||||||
| Second generation tenant improvements | (78 | ) | (4,214 | ) | (5,094 | ) | (8,392 | ) | |||||||
| Second generation lease costs | (475 | ) | (1,810 | ) | (2,613 | ) | (7,151 | ) | |||||||
| Joint venture and non-controlling interests adjustment | (103 | ) | (194 | ) | (211 | ) | (375 | ) | |||||||
| Company Funds Available for Distribution | $ | 44,226 | $ | 44,696 | $ | 174,789 | $ | 202,197 | |||||||
| Per Common Share and Unit Amounts | |||||||||||||||
| Basic: | |||||||||||||||
| FFO | $ | 0.28 | $ | 0.18 | $ | 0.80 | $ | 0.72 | |||||||
| Diluted: | |||||||||||||||
| FFO | $ | 0.28 | $ | 0.18 | $ | 0.80 | $ | 0.72 | |||||||
| Adjusted Company FFO | $ | 0.17 | $ | 0.18 | $ | 0.67 | $ | 0.78 | |||||||
| Weighted-Average Common Shares | |||||||||||||||
| Basic: | |||||||||||||||
| Weighted-average common shares outstanding - basic EPS | 274,928,363 | 281,383,061 | 279,887,760 | 277,640,835 | |||||||||||
| Operating partnership units(4) | 835,555 | 897,290 | 853,259 | 1,918,845 | |||||||||||
| Weighted-average common shares outstanding - basic FFO | 275,763,918 | 282,280,351 | 280,741,019 | 279,559,680 | |||||||||||
| Diluted: | |||||||||||||||
| Weighted-average common shares outstanding - diluted EPS | 276,118,668 | 292,782,489 | 282,473,458 | 287,369,742 | |||||||||||
| Unvested share-based payment awards | — | 70,114 | 17,381 | 44,261 | |||||||||||
| Preferred shares - Series C | 4,710,570 | — | 4,710,570 | — | |||||||||||
| Weighted-average common shares outstanding - diluted FFO | 280,829,238 | 292,852,603 | 287,201,409 | 287,414,003 | |||||||||||
(1) Aggregate gains recognized upon entering into a sales-type lease and exercises of tenant's purchase options in leases.
(2) Includes initial direct costs incurred in connection with entering into investments classified as sales-type leases and other acquisition related costs.
(3) Includes strategic alternatives and costs related to shareholder activism.
(4) 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 Ended December 31, 2023 | |||||||
| Range | |||||||
| Estimated: | |||||||
| Net income attributable to common shareholders per diluted common share(1) | $ | 0.35 | $ | 0.39 | |||
| Depreciation and amortization | 0.65 | 0.65 | |||||
| Impact of capital transactions | (0.34 | ) | (0.34 | ) | |||
| Estimated Adjusted Company FFO per diluted common share | $ | 0.66 | $ | 0.70 | |||
(1) Assumes all convertible securities are dilutive.
FAQ
What were LXP Industrial Trust's Q4 2022 earnings?
How much did LXP Industrial Trust raise rental income in 2022?
What is LXP Industrial Trust's outlook for 2023 FFO?
How did LXP's revenue perform in Q4 2022 compared to the previous year?
What is the Same-Store NOI growth for LXP Industrial Trust in Q4 2022?
