LXP Industrial Trust to Review Letter from Land & Buildings

Rhea-AI Summary

LXP Industrial Trust (NYSE:LXP) received a non-binding acquisition proposal from Land & Buildings Investment Management on January 28, 2022. The offer is priced at $16.00 per share in cash, representing a 22% premium over the unaffected price prior to engagement discussions. LXP's Board of Trustees will review the proposal, which is contingent upon satisfactory due diligence and necessary approvals. Land & Buildings expressed readiness to provide financing simultaneously with a definitive agreement. They urged the Board to share any additional value documentation that could warrant an increased offer.

Positive

• Acquisition proposal at $16.00 per share offers a 22% premium, potentially maximizing shareholder value.
• Land & Buildings has had discussions regarding financing, indicating strong financial backing for the proposal.

Negative

• The proposal is non-binding, leaving room for withdrawal or modification at Land & Buildings' discretion.

NEW YORK, Jan. 30, 2022 (GLOBE NEWSWIRE) -- LXP Industrial Trust (NYSE:LXP) (“LXP”), a real estate investment trust (REIT) focused on single-tenant warehouse and distribution real estate investments, announced that it received a letter from Land & Buildings Investment Management, LLC (“Land & Buildings”) on Friday, January 28, 2022. Consistent with its fiduciary duties, the LXP Board of Trustees will review the letter to determine the course of action that it believes is in the best interests of LXP’s shareholders.

The full text of the Land & Buildings letter follows:

January 28, 2022
Via Email, Facsimile and Overnight Courier

LXP Industrial Trust
One Penn Plaza, Suite 4015
New York, NY 10119
Attn: T. Wilson Eglin
        Chief Executive Officer and Chairman of the Board of Directors

Dear Mr. Eglin:

Land & Buildings Investment Management, LLC (“Land & Buildings”) sets forth its willingness to offer to acquire LXP Industrial Trust (“LXP” or the “Company”), through an appropriate acquisition entity by merger or otherwise, at a price equal to $16.00 per share in cash, which represents a premium to LXP’s most recent closing price of $14.41, and a 22% premium to the $13.12 unaffected price prior to LXP announcing our engagement with LXP’s Board of Trustees (the Board”). We believe our proposal represents the best means for stockholders of LXP to maximize the value of their shares.

We propose that the transaction be accomplished through a definitive merger agreement. Our proposal is conditioned upon satisfactory completion of due diligence typical for a transaction of this type, obtaining all necessary consents and approvals, waiver of any Company anti-takeover provisions, other customary conditions for a transaction of this type and size and the execution of a definitive agreement. We have had discussions with several debt and equity financing sources, including financial institutions, regarding this matter and they are highly confident of their ability to provide appropriate financing commitments at the time of execution of a definitive merger agreement. We would deliver any necessary financing commitments simultaneously with the signing of a definitive agreement such that the transaction would not be subject to any financing contingency. We are prepared to enter into an appropriate confidentiality agreement and commence our due diligence immediately.

Our interest in acquiring LXP is based on publicly available information. If as a result of our due diligence we find evidence of additional value inherent in the Company based on operating results, synergies or otherwise, we would be willing to upwardly adjust the offer price to reflect such additional value. We invite you to share with us any documentation in your possession which you believe reflects additional value in the shares that you believe may not already be known to us.

We stand ready to meet with the Board and its representatives as soon as possible. We believe that our proposal is the best opportunity for stockholders to maximize the value of their shares on an expeditious and cost-effective basis. Please be aware that our proposal is non-binding, and we reserve the right to both withdraw this proposal or to modify it in any way for any reason.

We expect that the Board will seriously consider our proposal and meet with us promptly. We intend to evaluate all our options and take appropriate action with respect to LXP, including making our offer public, should we fail to hear a favorable response from the Board to our proposal. Please call me at (203) 987-5830 to discuss.

Very truly yours,
LAND & BUILDINGS INVESTMENT MANAGEMENT, LLC

By: /s/ Jonathan Litt
Name: Jonathan Litt
Title: Founder & CIO

ABOUT LXP INDUSTRIAL TRUST

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant warehouse and distribution investments across the United States. LXP seeks to expand its portfolio through acquisitions, development projects, and build-to-suit and sale/leaseback transactions. For more information 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

Media Contact:
Matthew Sherman / Andrew Siegel
Joele Frank, Wilkinson Brimmer Katcher
Phone: (212) 355-4449

 

FAQ

What is the recent acquisition proposal for LXP Industrial Trust?

Land & Buildings proposed to acquire LXP at $16.00 per share, a 22% premium to its prior unaffected price.

When did LXP Industrial Trust receive the acquisition proposal?

LXP received the acquisition proposal from Land & Buildings on January 28, 2022.

What conditions are attached to the acquisition proposal for LXP?

The acquisition proposal is contingent on satisfactory due diligence and necessary approvals.

What is the potential impact of the acquisition proposal on LXP's stock?

The proposal at a premium price could potentially increase LXP's stock value and shareholder returns.