Fourth Quarter 2023 Highlights
- Recorded Net Income attributable to common shareholders of
$13.0 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
$51.4 million, or$0.17 per diluted common share. - Increased Industrial Same-Store NOI 4.1% in 2023 compared to the same period in 2022.
- Completed 2.2 million square feet of new leases and lease extensions, raising Industrial Base and Cash Base Rents by 39.4% and 28.4%, respectively (56.1% and 40.6%, respectively excluding fixed-rate renewals).
- Extended the
$300.0 million term loan untilJanuary 31, 2027 . - Issued
$300.0 million aggregate principal amount of 6.75% Senior Notes due 2028. - Invested an aggregate of
$23.9 million in development activities, including$20.7 million in ongoing development projects. - Placed into service warehouse/distribution facilities containing an aggregate of 1.4 million square feet in three target markets.
- Sold one property for a gross sales price of
$18.0 million.
Full Year 2023 Highlights
- Recorded Net Income attributable to common shareholders of
$23.9 million, or$0.08 per diluted common share. - Generated Adjusted Company FFO of
$206.2 million, or$0.70 per diluted common share. - Completed 6.8 million square feet of new leases and lease extensions, raising industrial Base and Cash Base Rents by 40.1% and 27.0%, respectively (52.3% and 37.3%, respectively excluding fixed-rate renewals).
- Industrial Same-Store NOI increased 4.1% in 2023 compared to 2022.
- Acquired one warehouse/distribution facility for
$15.0 million . - Committed to the construction of a 250,000 square foot industrial facility in the
Columbus, Ohio market. - Completed construction of seven warehouse/distribution facilities containing an aggregate of 4.2 million square feet in four target markets.
- Leased four development projects consisting of 1.9 million square feet in four target markets.
- Invested an aggregate of
$122.1 million in development activities, including$85.8 million in ongoing development projects. - Disposed of four properties and a land parcel for an aggregate gross disposition price of
$100.2 million.
FINANCIAL RESULTS
Revenues
For the quarter ended
Net Income Attributable to Common Shareholders
For the quarter ended
Adjusted Company FFO
For the quarter ended
Dividends/Distributions
As previously announced, during the fourth quarter of 2023, LXP declared its quarterly common share/unit dividend/distribution for the quarter ended
TRANSACTION ACTIVITY
PROPERTY DISPOSITIONS | |||||||||||||||
Location | Property Type | Gross Disposition Price ( | Annualized Net Income(1) ( | Annualized NOI(1) ( | Month of Disposition | % Leased | |||||||||
Other | $ | 18,000 | $ | 1,768 | $ | 1,898 | November | 100% | |||||||
During the fourth quarter, the
1. Generally, quarterly period prior to sale, annualized.
2. LXP owned 71.1%.
The above property was sold at GAAP and Cash capitalization rates of 10.3% and 10.5%, respectively. As of
Placed in | |||||||||||||
Property Type (% owned) | Market | Sq. Ft. | Initial Cost Basis ( | Approximate Lease Term (Yrs) | % Leased | ||||||||
Warehouse/Distribution (95%) (2) | 1,074,840 | $ | 64,524 | 10.0 | 100% | ||||||||
Warehouse/Distribution (90)% | 304,884 | 21,676 | 5.0 | 100% | |||||||||
Warehouse/Distribution(100%) | 57,690 | 7,985 | 5.0 | (3) | |||||||||
1,437,414 | $ | 94,185 | |||||||||||
1. Initial cost basis excludes certain costs, including lease commissions and developer fee or partner promote, if any.
2. Subsequent to 12/31/2023, acquired the remaining 5% from our joint venture partner.
3. Partial completion of the
ONGOING DEVELOPMENT PROJECTS | ||||||||||||||||||
Project (% owned) | # of Buildings | Market | Estimated Sq. Ft. | Estimated Project Cost(1) ( | GAAP Investment Balance as of ( | LXP Amount Funded as of ( | Building Completion Date | % Leased as of | Placed in Service Date | |||||||||
Consolidated: | ||||||||||||||||||
Development Projects Leased: | ||||||||||||||||||
Cotton 303 (93%)(4) | 1 | 488,400 | $ | 55,300 | $ | 50,716 | $ | 44,523 | 1Q 2024 | 100 | % | 1Q 2024 | ||||||
1 | 488,400 | $ | 55,300 | $ | 50,716 | $ | 44,523 | |||||||||||
Development Projects Available for Lease: | ||||||||||||||||||
1 | 1,085,280 | $ | 85,200 | $ | 80,184 | $ | 70,605 | 1Q 2023 | — | % | — | |||||||
Mt. Comfort (80%) | 1 | 1,053,360 | 66,400 | 64,489 | 58,736 | 1Q 2023 | — | % | — | |||||||||
1 | 1,091,888 | 76,500 | 72,411 | 69,244 | 2Q 2023 | — | % | — | ||||||||||
2 | 213,195 | 33,500 | 29,739 | 29,771 | 2Q 2023 - 3Q 2023 | — | % | — | ||||||||||
1 | 250,020 | 30,200 | 21,816 | 15,928 | 1Q 2024 | — | % | — | ||||||||||
6 | 3,693,743 | $ | 291,800 | $ | 268,639 | $ | 244,284 | |||||||||||
7 | 4,182,143 | $ | 347,100 | $ | 319,355 | $ | 288,807 | |||||||||||
1. Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer fee or partner promote, if any.
2. Excludes leasing costs.
3. Excludes noncontrolling interests' share.
4. Subsequent to
5. During the fourth quarter of 2023, a 57,690 square foot portion of the project, representing 23% of the total project, was occupied by the tenant and placed in service.
6. During the fourth quarter of 2023, a wholly-owned subsidiary of LXP purchased approximately 14 acres of land and the partially completed leasehold improvements from
LAND HELD FOR INDUSTRIAL DEVELOPMENT | ||||||||||
Project (% owned) | Market | Approximate Acres | Balance as of ( | LXP Amount Funded as of ( | ||||||
Consolidated: | ||||||||||
Reems & Olive (95.5%)(2) | 320 | $ | 73,683 | $ | 74,308 | |||||
Mt. Comfort Phase II (80%) | 116 | 5,328 | 4,283 | |||||||
ATL Fairburn (100%) | 14 | 1,732 | 1,751 | |||||||
450 | $ | 80,743 | $ | 80,342 |
Project (% owned) | Market | Approximate Acres | Balance as of ( | LXP Amount Funded as of ( | ||||||
Non-consolidated: | ||||||||||
52 | $ | 10,320 | $ | 13,778 | ||||||
21 | 2,245 | 2,674 | ||||||||
73 | $ | 12,565 | $ | 16,452 | ||||||
1. Excludes noncontrolling interests' share.
2. During the fourth quarter of 2023, a perpetual utility easement was granted in exchange for
LEASING | |||||||
During the fourth quarter of 2023, LXP executed the following new leases and extensions: | |||||||
NEW LEASES - FIRST GENERATION(1) | |||||||
Location | Lease Expiration Date | Sq. Ft. | |||||
Industrial | |||||||
1 | FL | 01/2029 | 57,690 | ||||
2 | FL | 07/2035 | 180,308 | ||||
2 | TOTAL NEW LEASES - FIRST GENERATION | 237,998 |
NEW LEASES - SECOND GENERATION(3) | |||||||
Location | Lease Expiration Date | Sq. Ft. | |||||
Industrial | |||||||
1 | TX | 04/2029 | 257,835 | ||||
1 | TOTAL NEW LEASES - SECOND GENERATION | 257,835 |
LEASE EXTENSIONS - SECOND GENERATION | |||||||||
Location | Prior Term | Lease Expiration Date | Sq. Ft. | ||||||
Industrial | |||||||||
1 | Monroe | OH | 06/2024 | 06/2026 | 194,936 | ||||
2 | GA | 08/2024 | 09/2027 | 119,295 | |||||
3 | IL | 12/2024 | 12/2027 | 93,000 | |||||
4 | IN | 03/2024 | 03/2029 | 53,240 | |||||
5 | GA | 05/2024 | 05/2029 | 370,000 | |||||
6 | SC | 07/2024 | 07/2029 | 341,660 | |||||
7 | Northlake | TX | 10/2024 | 10/2034 | 500,556 | ||||
7 | TOTAL EXTENDED LEASES - SECOND GENERATION | 1,672,687 | |||||||
8 | TOTAL NEW AND EXTENDED LEASES - SECOND GENERATION | 1,930,522 | |||||||
1. No prior leases.
2. Partial completion of the
3. Vacant property leased.
4. During the fourth quarter of 2023, the tenant exercised its renewal option to extend its lease term for three years but the fair market value rent could not be determined by
As of
BALANCE SHEET/CAPITAL MARKETS
In November, LXP amended the agreement governing its
LXP also issued
As of
2024 EARNINGS GUIDANCE
LXP estimates that its net income attributable to common shareholders for the year ended
FOURTH QUARTER 2023 CONFERENCE CALL
LXP will host a conference call today
Contact:
Investor or Media Inquiries for
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
References to LXP refer to
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.
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. If some portions of a development project are substantially complete and ready for use and other portions have not yet reached that stage, LXP ceases capitalizing costs on the completed portion of the project but continue to capitalize costs for the incomplete portion. When a portion of the development project is substantially complete and ready for its intended use, the project is placed in service and depreciation commences.
LXP INDUSTRIAL TRUST AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) | ||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Gross revenues: | ||||||||||||||||
Rental revenue | $ | 81,894 | $ | 79,243 | $ | 334,220 | $ | 313,992 | ||||||||
Other revenue | 1,062 | 1,861 | 6,283 | 7,253 | ||||||||||||
Total gross revenues | 82,956 | 81,104 | 340,503 | 321,245 | ||||||||||||
Expense applicable to revenues: | ||||||||||||||||
Depreciation and amortization | (46,220 | ) | (45,922 | ) | (183,524 | ) | (180,567 | ) | ||||||||
Property operating | (12,717 | ) | (12,647 | ) | (58,394 | ) | (54,870 | ) | ||||||||
General and administrative | (9,468 | ) | (9,621 | ) | (36,334 | ) | (38,714 | ) | ||||||||
Transaction costs | — | (4,121 | ) | (4 | ) | (4,177 | ) | |||||||||
Non-operating income | 2,251 | 582 | 2,982 | 935 | ||||||||||||
Interest and amortization expense | (13,887 | ) | (12,659 | ) | (46,389 | ) | (45,417 | ) | ||||||||
Debt satisfaction losses, net | (132 | ) | — | (132 | ) | (119 | ) | |||||||||
Impairment charges | — | (580 | ) | (16,490 | ) | (3,037 | ) | |||||||||
Change in allowance for credit loss | 3 | (93 | ) | 32 | (93 | ) | ||||||||||
Gains on sales of properties | 17,977 | 6,143 | 33,010 | 59,094 | ||||||||||||
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 | 20,763 | 39,931 | 35,260 | 101,339 | ||||||||||||
Provision for income taxes | (57 | ) | (151 | ) | (703 | ) | (1,102 | ) | ||||||||
Equity in earnings (losses) of non-consolidated entities | (1,219 | ) | 426 | 1,366 | 16,006 | |||||||||||
Net income | 19,487 | 40,206 | 35,923 | 116,243 | ||||||||||||
Less net income attributable to noncontrolling interests | (4,886 | ) | (1,733 | ) | (5,540 | ) | (2,460 | ) | ||||||||
Net income attributable to | 14,601 | 38,473 | 30,383 | 113,783 | ||||||||||||
Dividends attributable to preferred shares – Series C | (1,572 | ) | (1,572 | ) | (6,290 | ) | (6,290 | ) | ||||||||
Allocation to participating securities | (44 | ) | (35 | ) | (230 | ) | (186 | ) | ||||||||
Net income attributable to common shareholders | $ | 12,985 | $ | 36,866 | $ | 23,863 | $ | 107,307 | ||||||||
Income per common share – basic: | ||||||||||||||||
Net income attributable to common shareholders – per common share basic | $ | 0.04 | $ | 0.13 | $ | 0.08 | $ | 0.38 | ||||||||
Weighted-average common shares outstanding – basic | 290,420,220 | 274,928,363 | 290,245,877 | 279,887,760 | ||||||||||||
Income per common share – diluted: | ||||||||||||||||
Net income attributable to common shareholders – per common share diluted | $ | 0.04 | $ | 0.13 | $ | 0.08 | $ | 0.38 | ||||||||
Weighted-average common shares outstanding – diluted | 291,325,979 | 276,118,668 | 291,193,514 | 282,473,458 |
LXP INDUSTRIAL TRUST AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of (Unaudited and in thousands, except share and per share data) | |||||||
2023 | 2022 | ||||||
Assets: | |||||||
Real estate, at cost | $ | 3,774,239 | $ | 3,691,066 | |||
Real estate - intangible assets | 314,525 | 328,607 | |||||
Land held for development | 80,743 | 84,412 | |||||
Investments in real estate under construction | 319,355 | 361,924 | |||||
Real estate, gross | 4,488,862 | 4,466,009 | |||||
Less: accumulated depreciation and amortization | 904,709 | 800,470 | |||||
Real estate, net | 3,584,153 | 3,665,539 | |||||
Assets held for sale | 9,168 | 66,434 | |||||
Right-of-use assets, net | 19,342 | 23,986 | |||||
Cash and cash equivalents | 199,247 | 54,390 | |||||
Restricted cash | 216 | 116 | |||||
Short-term investments | 130,140 | — | |||||
Investment in non-consolidated entities | 48,495 | 58,206 | |||||
Deferred expenses, net | 35,008 | 25,207 | |||||
Investment in a sales-type lease, net | 63,464 | 61,233 | |||||
Rent receivable - current | 5,327 | 3,030 | |||||
Rent receivable - deferred | 80,421 | 71,392 | |||||
Other assets | 17,794 | 24,314 | |||||
Total assets | $ | 4,192,775 | $ | 4,053,847 | |||
Liabilities and Equity: | |||||||
Liabilities: | |||||||
Mortgages and notes payable, net | $ | 60,124 | $ | 72,103 | |||
Term loan payable, net | 296,764 | 298,959 | |||||
Senior notes payable, net | 1,286,145 | 989,295 | |||||
Trust preferred securities, net | 127,794 | 127,694 | |||||
Dividends payable | 39,610 | 38,416 | |||||
Liabilities held for sale | 417 | 1,150 | |||||
Operating lease liabilities | 20,233 | 25,118 | |||||
Accounts payable and other liabilities | 57,981 | 74,261 | |||||
Accrued interest payable | 11,379 | 9,181 | |||||
Deferred revenue - including below market leases, net | 9,428 | 11,452 | |||||
Prepaid rent | 17,443 | 15,215 | |||||
Total liabilities | 1,927,318 | 1,662,844 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Preferred shares, par value | |||||||
Series C Cumulative Convertible Preferred, liquidation preference | 94,016 | 94,016 | |||||
Common shares, par value | 29 | 29 | |||||
Additional paid-in-capital | 3,330,383 | 3,320,087 | |||||
Accumulated distributions in excess of net income | (1,201,824 | ) | (1,079,087 | ) | |||
Accumulated other comprehensive income | 9,483 | 17,689 | |||||
Total shareholders’ equity | 2,232,087 | 2,352,734 | |||||
Noncontrolling interests | 33,370 | 38,269 | |||||
Total equity | 2,265,457 | 2,391,003 | |||||
Total liabilities and equity | $ | 4,192,775 | $ | 4,053,847 |
LXP INDUSTRIAL TRUST AND SUBSIDIARIES EARNINGS PER SHARE (Unaudited and in thousands, except share and per share data) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
EARNINGS PER SHARE: | |||||||||||||||||
Basic: | |||||||||||||||||
Net income attributable to common shareholders | $ | 12,985 | $ | 36,866 | $ | 23,863 | $ | 107,307 | |||||||||
Weighted-average common shares outstanding - basic | 290,420,220 | 274,928,363 | 290,245,877 | 279,887,760 | |||||||||||||
Net income attributable to common shareholders - per common share basic | $ | 0.04 | $ | 0.13 | $ | 0.08 | $ | 0.38 | |||||||||
Diluted: | |||||||||||||||||
Net income attributable to common shareholders - basic | $ | 12,985 | $ | 36,866 | $ | 23,863 | $ | 107,307 | |||||||||
Impact of assumed conversions | 5 | 9 | (58 | ) | 156 | ||||||||||||
Net income attributable to common shareholders | $ | 12,990 | $ | 36,875 | $ | 23,805 | $ | 107,463 | |||||||||
Weighted-average common shares outstanding - basic | 290,420,220 | 274,928,363 | 290,245,877 | 279,887,760 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Unvested share-based payment awards | 109,904 | 354,750 | 127,251 | 457,597 | |||||||||||||
Shares issuable under forward sales agreements | — | — | — | 1,274,842 | |||||||||||||
Operating Partnership Units | 795,855 | 835,555 | 820,386 | 853,259 | |||||||||||||
Weighted-average common shares outstanding - diluted | 291,325,979 | 276,118,668 | 291,193,514 | 282,473,458 | |||||||||||||
Net income attributable to common shareholders - per common share diluted | $ | 0.04 | $ | 0.13 | $ | 0.08 | $ | 0.38 |
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 | Twelve Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
FUNDS FROM OPERATIONS: | |||||||||||||||||
Basic and Diluted: | |||||||||||||||||
Net income attributable to common shareholders | $ | 12,985 | $ | 36,866 | $ | 23,863 | $ | 107,307 | |||||||||
Adjustments: | |||||||||||||||||
Depreciation and amortization of real estate | 45,070 | 45,125 | 179,554 | 177,725 | |||||||||||||
Impairment charges - real estate, including our share of non-consolidated entities | 1,369 | 838 | 17,859 | 8,137 | |||||||||||||
Noncontrolling interests - OP units | 5 | 9 | (58 | ) | 156 | ||||||||||||
Amortization of leasing commissions | 1,150 | 797 | 3,970 | 2,842 | |||||||||||||
Joint venture and noncontrolling interest adjustment | 7,000 | 2,527 | 13,168 | 11,112 | |||||||||||||
Gains on sales of properties, including our share of non-consolidated entities | (17,978 | ) | (7,759 | ) | (38,796 | ) | (83,562 | ) | |||||||||
FFO available to common shareholders and unitholders - basic | 49,601 | 78,403 | 199,560 | 223,717 | |||||||||||||
Preferred dividends | 1,572 | 1,572 | 6,290 | 6,290 | |||||||||||||
Amount allocated to participating securities | 44 | 35 | 230 | 186 | |||||||||||||
FFO available to all equityholders and unitholders - diluted | 51,217 | 80,010 | 206,080 | 230,193 | |||||||||||||
Selling profit from sales-type leases (1) | — | (37,745 | ) | — | (47,059 | ) | |||||||||||
Allowance for credit loss | (3 | ) | 93 | (32 | ) | 93 | |||||||||||
Transaction costs (2) | — | 4,121 | 4 | 4,177 | |||||||||||||
Debt satisfaction losses, net, including our share of non-consolidated entities | 138 | 1 | 138 | 1,615 | |||||||||||||
Other non-recurring costs (3) | — | — | — | 2,573 | |||||||||||||
Noncontrolling interest adjustments | — | 1,469 | 1 | 1,469 | |||||||||||||
Adjusted Company FFO available to all equityholders and unitholders - diluted | 51,352 | 47,949 | 206,191 | 193,061 | |||||||||||||
FUNDS AVAILABLE FOR DISTRIBUTION: | |||||||||||||||||
Adjustments: | |||||||||||||||||
Straight-line adjustments | (1,750 | ) | (2,519 | ) | (9,688 | ) | (11,412 | ) | |||||||||
Lease incentives | 125 | 127 | 439 | 518 | |||||||||||||
Amortization of above/below market leases | (449 | ) | (449 | ) | (1,796 | ) | (1,865 | ) | |||||||||
Sales-type lease non-cash income | (574 | ) | (342 | ) | (2,199 | ) | (342 | ) | |||||||||
Non-cash interest | 1,028 | 819 | 3,487 | 3,278 | |||||||||||||
Non-cash charges, net | 2,195 | 1,846 | 8,934 | 7,483 | |||||||||||||
Capitalized interest and internal costs | (2,842 | ) | (2,549 | ) | (12,002 | ) | (8,014 | ) | |||||||||
Second generation tenant improvements | (982 | ) | (78 | ) | (2,619 | ) | (5,094 | ) | |||||||||
Second generation lease costs | (3,788 | ) | (475 | ) | (5,521 | ) | (2,613 | ) | |||||||||
Joint venture and non-controlling interests adjustment | 102 | (103 | ) | (569 | ) | (211 | ) | ||||||||||
Company Funds Available for Distribution | $ | 44,417 | $ | 44,226 | $ | 184,657 | $ | 174,789 | |||||||||
Per Common Share and Unit Amounts | |||||||||||||||||
Basic: | |||||||||||||||||
FFO | $ | 0.17 | $ | 0.28 | $ | 0.69 | $ | 0.80 | |||||||||
Diluted: | |||||||||||||||||
FFO | $ | 0.17 | $ | 0.28 | $ | 0.70 | $ | 0.80 | |||||||||
Adjusted Company FFO | $ | 0.17 | $ | 0.17 | $ | 0.70 | $ | 0.67 | |||||||||
Weighted-Average Common Shares | |||||||||||||||||
Basic: | |||||||||||||||||
Weighted-average common shares outstanding - basic EPS | 290,420,220 | 274,928,363 | 290,245,877 | 279,887,760 | |||||||||||||
Operating partnership units(4) | 795,855 | 835,555 | 820,386 | 853,259 | |||||||||||||
Weighted-average common shares outstanding - basic FFO | 291,216,075 | 275,763,918 | 291,066,263 | 280,741,019 | |||||||||||||
Diluted: | |||||||||||||||||
Weighted-average common shares outstanding - diluted EPS | 291,325,979 | 276,118,668 | 291,193,514 | 282,473,458 | |||||||||||||
Unvested share-based payment awards | — | — | — | 17,381 | |||||||||||||
Preferred shares - Series C | 4,710,570 | 4,710,570 | 4,710,570 | 4,710,570 | |||||||||||||
Weighted-average common shares outstanding - diluted FFO | 296,036,549 | 280,829,238 | 295,904,084 | 287,201,409 | |||||||||||||
(1) Aggregate gains recognized upon entering into a sales-type lease and exercises of tenants' 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 | |||||||
2024 EARNINGS GUIDANCE | |||||||
Twelve Months Ended | |||||||
Range | |||||||
Estimated: | |||||||
Net income attributable to common shareholders per diluted common share(1) | $ | (0.02 | ) | $ | 0.02 | ||
Depreciation and amortization | 0.66 | 0.66 | |||||
Impact of capital transactions | (0.03 | ) | (0.03 | ) | |||
Estimated Adjusted Company FFO per diluted common share | $ | 0.61 | $ | 0.65 | |||
(1) Assumes all convertible securities are dilutive.
Source:
2024 GlobeNewswire, Inc., source