lxp-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024.


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _________________ to ________________

Commission File Number 1-12386

LXP INDUSTRIAL TRUST

(Exact name of registrant as specified in its charter)


Maryland			13-3717318
(State or other jurisdiction of incorporation of organization)			(I.R.S. Employer Identification No.)

515 N Flagler Dr, Suite 408, West Palm Beach, FL 33401

(Address of principal executive offices) (zip code)

(212) 692-7200

(Registrant's telephone number, including area code)

One Penn Plaza, Suite 4015, New York, NY 10119

(Former Address of principal executive offices) (zip code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock	LXP	New York Stock Exchange
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share	LXPPRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: 294,314,556 common shares of beneficial interest, par value $0.0001 per share, as of May 1, 2024.

TABLE OF CONTENTS


PART I. — FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets						3
Condensed Consolidated Statements of Operations						4
Condensed Consolidated Statements of Comprehensive Income (Loss)						5
Condensed Consolidated Statements of Changes in Equity						6
Condensed Consolidated Statements of Cash Flows						7
Notes to Condensed Consolidated Financial Statements						8
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						25
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk						34
ITEM 4. Controls and Procedures						34
PART II — OTHER INFORMATION
ITEM 1. Legal Proceedings						35
ITEM 1A. Risk Factors						35
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds						35
ITEM 3. Defaults Upon Senior Securities						35
ITEM 4. Mine Safety Disclosures						35
ITEM 5. Other Information						35
ITEM 6. Exhibits						36
SIGNATURES						38

WHERE YOU CAN FIND MORE INFORMATION:

We file and furnish annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, which we refer to as the SEC. We file and furnish information electronically with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file or furnish electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov. We also maintain a web site at http://www.lxp.com through which you can obtain copies of documents that we file or furnish with the SEC. The contents of that web site are not incorporated by reference in or otherwise a part of this Quarterly Report on Form 10-Q or any other document that we file or furnish with the SEC.

Table of Contents

PART I. - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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


	March 31, 2024		December 31, 2023

Assets:
Real estate, at cost	$	3,951,860	$	3,774,239
Real estate - intangible assets	310,989		314,525
Land held for development	81,034		80,743
Investments in real estate under construction	153,181		319,355
Real estate, gross	4,497,064		4,488,862
Less: accumulated depreciation and amortization	936,474		904,709
Real estate, net	3,560,590		3,584,153
Assets held for sale	25,123		9,168
Right-of-use assets, net	18,283		19,342
Cash and cash equivalents	163,213		199,247
Restricted cash	222		216
Short term investments	130,552		130,140
Investments in non-consolidated entities	47,010		48,495
Deferred expenses, net	35,549		35,008
Investment in a sales-type lease, net (allowance for credit loss $56 in 2024 and $61 in 2023)	64,061		63,464
Rent receivable – current	4,545		5,327
Rent receivable – deferred	83,049		80,421
Other assets	24,171		17,794
Total assets	$	4,156,368	$	4,192,775

Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	58,843	$	60,124

Term loan payable, net	297,027		296,764
Senior notes payable, net	1,286,711		1,286,145
Trust preferred securities, net	127,819		127,794
Dividends payable	39,572		39,610
Liabilities held for sale	622		417
Operating lease liabilities	18,993		20,233
Accounts payable and other liabilities	61,264		57,981
Accrued interest payable	18,255		11,379
Deferred revenue - including below-market leases, net	8,967		9,428
Prepaid rent	17,781		17,443
Total liabilities	1,935,854		1,927,318

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, 294,289,569 and 293,449,088 shares issued and outstanding in 2024 and 2023, respectively	29		29
Additional paid-in-capital	3,327,682		3,330,383
Accumulated distributions in excess of net income	(1,241,595)		(1,201,824)
Accumulated other comprehensive income	8,423		9,483
Total shareholders’ equity	2,188,555		2,232,087
Noncontrolling interests	31,959		33,370
Total equity	2,220,514		2,265,457
Total liabilities and equity	$	4,156,368	$	4,192,775

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Content

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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


	Three Months Ended March 31,
	2024		2023
Gross revenues:
Rental revenue	$	85,207	$	83,417
Other revenue	1,044		1,658
Total gross revenues	86,251		85,075
Expense applicable to revenues:
Depreciation and amortization	(47,509)		(45,741)
Property operating	(15,188)		(15,243)
General and administrative	(9,493)		(9,242)
Non-operating income	3,769		194
Interest and amortization expense	(16,984)		(11,393)

Impairment charges	—		(3,523)
Change in allowance for credit loss	5		(79)
Gains on sales of properties	—		7,879

Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities	851		7,927
Provision for income taxes	(125)		(216)
Equity in earnings (losses) of non-consolidated entities	(1,281)		3,604








Net income (loss)	(555)		11,315
Less (net income) loss attributable to noncontrolling interests	286		(149)
Net income (loss) attributable to LXP Industrial Trust shareholders	(269)		11,166
Dividends attributable to preferred shares – Series C	(1,572)		(1,572)
Allocation to participating securities	(90)		(72)
Net income (loss) attributable to common shareholders	$	(1,931)	$	9,522

Net income (loss) attributable to common shareholders - per common share basic	$	(0.01)	$	0.03


Weighted-average common shares outstanding – basic	291,288,383		290,080,508

Net income (loss) attributable to common shareholders - per common share diluted	$	(0.01)	$	0.03


Weighted-average common shares outstanding – diluted	291,288,383		291,040,466

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Content

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited and in thousands)


	Three Months Ended March 31,
	2024		2023
Net income (loss)	$	(555)	$	11,315
Other comprehensive income (loss):

Change in unrealized loss on interest rate swaps, net	(1,101)		(3,190)
Company's share of other comprehensive income (loss) of non-consolidated entities	41		(330)
Other comprehensive loss	(1,060)		(3,520)
Comprehensive income (loss)	(1,615)		7,795
Comprehensive (income) loss attributable to noncontrolling interests	286		(149)
Comprehensive income (loss) attributable to LXP Industrial Trust shareholders	$	(1,329)	$	7,646

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Content

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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


			LXP Industrial Trust Shareholders
Three months ended March 31, 2024	Total		Number of Preferred Shares	Preferred Shares		Number of Common Shares	Common Shares		Additional Paid-in-Capital	Accumulated Distributions in Excess of Net Income	Accumulated Other Comprehensive Income/(Loss)	Noncontrolling Interests
Balance December 31, 2023	$	2,265,457	1,935,400	$	94,016	293,449,088	$	29

SEC Form 10-Q filed by LXP Industrial Trust