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1. Company Snapshot

1.a. Company Description

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased industrial properties across the United States.Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions.

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1.b. Last Insights on LXP

LXP Industrial Trust's recent performance was driven by robust Q3 results, with the company maintaining stable net interest expenses. A $175 million sale of development projects in Central Florida and Indianapolis markets bolstered its financials. The company's Series C cumulative preferred shares offer a nearly 7% yield, with strong coverage from FFO. LXP's dividend yield is just under 6%, making it a dividend idea. The company also completed a reverse share split at a ratio of 1-for-5, reducing outstanding shares. (Source: LXP Industrial Trust: The Preferred Stock Offers A Great Yield)

1.c. Company Highlights

2. LXP Industrial Trust Delivers Strong Q3 with 20% Premium on Asset Sales

LXP Industrial Trust reported a robust third quarter, with adjusted company FFO of $0.16 per diluted common share, in line with analyst estimates. The company's financial performance was driven by the sale of two vacant development projects in Central Florida and Indianapolis for $175 million, representing a 20% premium to their gross book value. This transaction contributed to a significant reduction in leverage, with net debt to adjusted EBITDA decreasing to 5.2x from 5.8x. The sale is expected to generate an estimated 6% accretion to adjusted company FFO per share.

Publication Date: Nov -03

📋 Highlights
  • Asset Sales Premium:: Sold two vacant projects for $175M, 20% above gross book value, lifting occupancy to 96.8% and reducing leverage to 5.2x net debt/EBITDA.
  • FFO Guidance Raised:: 2025 adjusted FFO/share midpoint tightened to $0.63–$0.64, with Q3 results at $0.16 per share.
  • Dividend Increase:: Annualized dividend raised 3.7% to $0.56/share, reflecting confidence in portfolio performance.
  • Portfolio Performance:: 96.9% leased with 2.9% average rent escalator; same-store NOI growth 2% Q3, 4% YTD.
  • Cleveland Market Opportunity:: 1M sq ft of second-gen leasing underway, offering 30%+ mark-to-market potential in a progressing asset.

Operational Highlights

The company's same-store NOI growth was 2% for the third quarter and 4% year-to-date, with a portfolio occupancy rate of 96.8%. The company's Chairman and CEO, Will Eglin, stated that the company is well-positioned for success, with a high-quality young portfolio, consistent contractual rent growth, and a land bank for accretive growth opportunities. The company is focusing on its 12-market investment strategy in the Sunbelt and select lower Midwest states.

Guidance and Outlook

LXP Industrial Trust increased the midpoint and tightened the range of its 2025 adjusted company FFO guidance to $0.63 to $0.64 per share. The company also announced a 3.7% increase in its annualized dividend to $0.56 per share. Guidance for full-year same-store NOI was narrowed to 3% to 3.5%, reflecting the passage of time and leasing prospects. Analysts estimate next year's revenue growth at 3.7%.

Valuation and Metrics

With a P/E Ratio of 23.62 and an EV/EBITDA of 16.63, the company's valuation appears to be reflecting its growth prospects. The Dividend Yield stands at 5.69%, providing an attractive return for income investors. The Net Debt / EBITDA ratio has improved to 5.19, indicating a reduction in leverage. The company's ROIC stands at 8.0%, indicating a decent return on invested capital.

Leasing and Development

The company has been actively leasing, with 1.1 million square feet of leasing secured post-quarter end. The company is also exploring opportunities for data center development on its Phoenix land, focusing on power and access to power. With a mark-to-market opportunity of 30%+ at the Cleveland asset, the company is well-positioned for future growth.

3. NewsRoom

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

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LXP Industrial Trust: The Preferred Stock Offers A Great Yield

Nov -12

Source: seekingalpha.com

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LXP Industrial Trust Completes Reverse Share Split

Nov -10

Source: globenewswire.com

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Analyzing Safehold (NYSE:SAFE) and LXP Industrial Trust (NYSE:LXP)

Nov -04

Source: defenseworld.net

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LXP Industrial Trust (LXP) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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LXP Industrial Trust Reports Third Quarter 2025 Results

Oct -30

Source: globenewswire.com

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LXP Industrial Trust: Industrial REIT Expected To Continue Its Momentum In Sunbelt Region

Oct -23

Source: seekingalpha.com

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LXP Industrial Trust Announces Pricing of Cash Tender Offer for Up to $150,000,000 of Outstanding 6.750% Notes due 2028

Oct -16

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.48%)

6. Segments

Rental

Expected Growth: 8.5%

Rental growth of 8.5% driven by strong demand for industrial space, particularly in last-mile logistics and e-commerce fulfillment centers. LXP Industrial Trust's strategic portfolio repositioning, expansion into high-growth markets, and proactive lease renewal efforts also contribute to the growth.

Other

Expected Growth: 7.5%

LXP Industrial Trust's 7.5% growth is driven by increasing demand for logistics and e-commerce facilities, strategic acquisitions, and a strong balance sheet enabling debt-funded growth. Additionally, the trust's focus on high-quality, modern industrial assets and its ability to maintain high occupancy rates contribute to its growth momentum.

7. Detailed Products

Light Industrial Properties

LXP Industrial Trust's light industrial properties are designed to provide flexible and efficient spaces for businesses, offering a range of amenities and services to support their operations.

Bulk Industrial Properties

LXP Industrial Trust's bulk industrial properties offer large, functional spaces for businesses that require extensive storage and distribution capabilities.

Cold Storage Facilities

LXP Industrial Trust's cold storage facilities are designed to provide temperature-controlled environments for the storage and distribution of perishable goods.

Last-Mile Delivery Facilities

LXP Industrial Trust's last-mile delivery facilities are strategically located to provide fast and efficient delivery services to customers.

Research and Development Facilities

LXP Industrial Trust's research and development facilities offer flexible and adaptable spaces for companies to innovate and develop new products and technologies.

8. LXP Industrial Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LXP Industrial Trust is moderate due to the availability of alternative industrial properties in the market.

Bargaining Power Of Customers

The bargaining power of customers for LXP Industrial Trust is low due to the fragmented nature of the customer base and the lack of concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LXP Industrial Trust is moderate due to the presence of multiple suppliers in the market, but the company's scale and negotiating power.

Threat Of New Entrants

The threat of new entrants for LXP Industrial Trust is high due to the relatively low barriers to entry in the industrial property market.

Intensity Of Rivalry

The intensity of rivalry for LXP Industrial Trust is high due to the competitive nature of the industrial property market and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.44%
Debt Cost 3.95%
Equity Weight 56.56%
Equity Cost 8.10%
WACC 6.30%
Leverage 76.80%

11. Quality Control: LXP Industrial Trust passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
STAG Industrial

A-Score: 6.1/10

Value: 3.4

Growth: 5.4

Quality: 7.2

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
LXP Industrial Trust

A-Score: 5.9/10

Value: 3.6

Growth: 2.2

Quality: 6.6

Yield: 9.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
First Industrial Realty Trust

A-Score: 5.9/10

Value: 2.5

Growth: 5.6

Quality: 8.0

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Terreno Realty

A-Score: 5.8/10

Value: 2.4

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
EastGroup Properties

A-Score: 5.8/10

Value: 2.0

Growth: 6.1

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Rexford Industrial Realty

A-Score: 5.7/10

Value: 3.0

Growth: 7.0

Quality: 6.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.64$

Current Price

48.64$

Potential

-0.00%

Expected Cash-Flows