LXP Industrial Trust : 2023 Annual Letter to Shareholders

2023 ANNUAL LETTER TO SHAREHOLDERS

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

Table of
Contents
Company Overview	. 1
Introduction	. 2
2023 Highlights	3
High-Quality Investment Platform	. 4
2023 Development Progress	. 5
Strong Leasing Performance	. 6
Attractive Leasing Outcomes	. 7
Advancing Corporate Responsibility Efforts	.8
Four Pillars of Corporate Responsibility	. 9
Balance Sheet Strategy	10
Capital Markets Activity	. 11
Financials	. 11
Summary	12
Corporate Information	13

Phoenix Market	LXP 2023

2023 Annual Letter to Shareholders

	AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

Company Overview

LXP Industrial Trust (NYSE: LXP) is a real estate investment trust (REIT) that is an active acquirer, operator and developer of premium warehouse/distribution real estate in target U.S. logistics markets in the Sunbelt and lower Midwest with high-growth potential. Through its multi-channel investment strategy, LXP has the flexibility to pursue a variety of income and growth opportunities focused on the industrial sector.

Cincinnati Market

HIGHLIGHTS1

30 Years

Publicly-Traded

$5.1B

Gross Assets

54.6M

SF2

100%

Leased2

77%

Top 25 Markets3

32%

Green Building Certified4

1. As of 12/31/2023. 2. For stabilized portfolio.

1. Based on CoStar.com inventory data for top industrial markets. 4. For consolidated and stabilized industrial portfolio.

LXP 2023 1

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

Dear Fellow Shareholders

Reflecting over the past 30 years, LXP Industrial Trust ("LXP") looked quite different than the company it is today. Over this time, the company grew in size, refined and improved its strategy with changing markets and navigated the ups and downs that accompany investing in real estate. Growth requires embracing change and we are proud of the company we have built since listing on the NYSE over 30 years ago. LXP's transformation has resulted in a high-quality portfolio of primarily single-tenant, warehouse and distribution assets in key logistics markets with contractual rent growth, a promising development platform, strong mark-to-market

leasing outcomes and opportunities, a best-in-class ESG+R program and excellent corporate governance.

LXP rang the bell at the NYSE in late 2023 to commemorate our 30-year anniversary as a publicly-traded company. Our Board of Trustees, leadership team and both new and long-standing employees joined us in our celebration. This event provided us the opportunity to pause and appreciate how far LXP has come. It was also a good reminder that we have more to do and that we welcome the change that is essential for our continued growth.

"As we have acted on opportunities and navigated market challenges, we've not only grown as a company, but also as a cohesive team working together to exe- cute. Our 2023 performance further reflects the"considerable progress we have made and strengthens the platform we have created.

WILL EGLIN

Chairman, President and CEO

LXP 2023 2

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

2023 Highlights

LXP delivered strong operating results in 2023 through notable achievements in leasing, development, asset sales and leverage reduction. Leasing volume was robust, underscored by significant rental increases and a 100% leased stabilized industrial portfolio at year-end. In our development program, we completed the base building construction of seven new facilities, further expanding our footprint in our target markets. Our office disposition plan is now nearly complete after disposing of the majority of our remaining office assets during the year. Through our prudent execution over the course of the year, we took advantage of refinancing opportunities that will effectively extend our debt maturities to 2027 and we reduced leverage to 6.0x net debt to Adjusted EBITDA.

While industrial real estate market fundamentals remain solid, the leasing market for new construction continued to be challenged in 2023 with the supply in big box product giving prospective tenants more options and the ability to defer space use decisions. That said, market dynamics, such as lower new spec construction starts and expected rate cuts, offer the backdrop for a more favorable leasing

and valuation environment in the near to medium-term. We believe we are well-positioned to capitalize on these market tailwinds as we look to lease our remaining development portfolio and expand our build-to-suit pipeline.

Our corporate responsibility efforts continued to be a focus in 2023 and resulted in a variety of positive achievements and recognition. In addition, we published our 2022 Corporate Responsibility Report and partnered with certain non-profit organizations to make a greater impact in our local New York, Texas and Florida commu- nities. With further enhancements made during the year to our ESG+R program, we increased our GRESB® Real Estate Benchmark score and maintained our Public Disclosure score of "A", with the highest score in our peer group. Finally, in our commitment to consistent Board refreshment protocols, we appointed Jamie Handwerker as our new Lead Independent Trustee in May and rotated our Board committee leadership roles later in the year.

We're pleased with our 2023 accomplishments and are excited to share them with you in greater detail.

"Since I joined LXP's Board in 2017, I've had the opportunity to work with some great individuals whose level of talent is top-notch. My 40 years of experience in sell- side research, investing and shareholder engagement complement other trustees' skills, including real estate, communications, compli- ance, ESG, cyber security and logistics. I couldn't be more excited about my new role as Lead Independent Trustee. I'm humbled by this appointment and look forward to providing"leadership guidance on the Board and to management.

JAMIE HANDWERKER

LXP's Lead Independent Trustee

Greenville-Spartanburg Market

LXP 2023 3

BRENDAN MULLINIX Executive Vice President, CIO

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

High-Quality Investment Platform

In 2023, we continued to concentrate our investment efforts on building out our development platform in our target markets. We made significant progress during the year, investing $122 million dollars, completing 4.2 million square feet of new construction and leasing 1.9 million square feet of available spec space. Since our development program began, we've leased and placed into service nearly five million square feet of development projects, of which 1.8 million square feet was placed in service in 2023. We continue to see activity at our remaining development projects and are hopeful that the bulk of the remaining 3.7 million square feet can be leased in 2024.

We expect build-to-suit opportunities to be a focus for us in 2024 given the decline in new spec construction starts and the attractive yields build-to-suit projects offer without the leasing risk associated with spec development. With a long and successful track record in the build-to-suit space and strong merchant builder relationships, we believe LXP is well-positioned to capitalize on new investment prospects that will further enhance shareholder returns.

"Our development business has become a much larger part of our multi-channel investment strat- egy, providing us the opportunity to add high- quality industrial assets to our portfolio at superior pricing compared to the purchase market. As we explore new avenues of growth"opportunities in 2024, we are encouraged by the market dynamics taking place in the build-to-suit area.

	INDUSTRIAL PORTFOLIO HIGHLIGHTS1
112	54.3M	6.0 Years	49%
Properties	SF	Weighted-Average	Investment Grade
		Lease Term2	Tenancy3
9.5 Years	33.0'	2.6%	4.1%
Average Portfolio	Average Clear
Age4	Height5	Average Annual	Quarterly Same-Store
		Rental Escalation6	7
			NOI Growth

1. As of 12/31/2023. 2. Weighting based on ABR. 3. Percent of ABR. Credit ratings are based upon either tenant, guarantor or parent/ultimate parent. 4. Weighting based on square footage, excluding land parcels. 5. Based on internal and external sources.

1. Average annual rental escalation based on next rent step percentage. Excludes escalating leases in last year after last escalation. 7. Excludes properties acquired, developed and sold during the applicable periods.

LXP 2023 4

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

2023 Development Progress1

DEVELOPMENT PROGRAM HIGHLIGHTS2

Phoenix

• Previously leased ~392K SF facility was placed in service

• ~488K SF facility leased (placed in service in 1Q 2024)

PHOENIX

Indianapolis

• ~1.1M SF facility base building construction completed

COLU	Columbus
INDIANAPOLIS	• ~1.1M SF facility leased
	and placed in service
Greenville Spartanburg	GREENVILLE
• ~1.1M SF facility base building	SPARTANBURG
construction completed

• ~305K SF facility leased and

placed in service

CENTRAL

FLORIDA

8.5M SF

new construction completed

4.8M SF

leased/placed in service3

3.3%

average annual escalations

6.6%

weighted average estimated cash stabilized yield4

523 Acres

of development land available

100 Acres

of Phoenix land leased to data center user

3.7M SF

available for lease

Central Florida

• ~1.1M SF facility base building construction completed
• ~271K SF (two facilities) base building construction completed
  • ~58K SF leased and placed in service

1. As of 12/31/2023.

n 2023 Development Activity

n Other Target Markets in Sunbelt and Midwest

43%	Available
	for Lease

	Leased/Placed
57%	in Service

1. Beginning in 2019 through 2/14/2024. 3. A property placed in service indicates tenant has taken occupancy and revenue recognition has begun.

1. As of 12/31/2023. For properties placed into service. Excluding developer fees or partner promotes, if any.

LXP 2023 5

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

Strong Leasing Performance

We maintained strong momentum throughout the year, leasing 6.8 million square feet at attractive Base and Cash Base rental increases of approximately 52% and 37%, respectively, excluding fixed-rate renewals. Lease escalators continue to trend upward, with the average escalator on leases signed in 2023 at 3.7%, excluding fixed-rate renewals. Also, during the year, we addressed our existing vacancy, bringing our stabilized industrial portfolio to 100% leased, and grew same-store NOI by 4.1%.

Over half of our 2024 lease expirations were addressed in 2023. We are in negotiations for the majority of the remaining 2024 expirations, and anticipate good results, with the renewals expected to produce cash rental increases of 20 to 30% based on current market conditions. Our estimates of current market rents indi-

cate that leases expiring through 2029 are 23% below market, providing us the Cincinnati Market potential to meaningfully increase rents at lease expiration.

	2023/2024 Rental Growth			Lease Rollover Schedule Through 20291,2
50%						$40,000				14.0%	13.5%
	42%					$35,000				12.4%
40%
				thousands	$30,000
30%			30%			$25,000
			20-30%
					$20,000			6.9%	6.8%
					$ in
20%					$15,000		4.4%
10%						$10,000
						$5,000
0	2023		2024	Remaining		0
		2024	2025	2026 2027 2028 2029
	Expirations4	Expirations5,6	2024 Expirations7
								23% Below Current Market Rents
	Actual	Projected

Lease Escalations2,8

4.0% 1.9%

Annual Escalations

Other Escalations

Flat Rent

94.1%

2.6%	3.7%
Average Annual	Average Annual Escalator
Escalations	for Leases Signed 20239

1. As of 12/31/2023. 2. Percent of ABR. 3. Based on independent third-party broker data and current renewal discussions for leases expiring through 2029. 4. Cash rental growth actuals for leases that expired in 2023. Inclusive of leases signed beginning in 1Q 2022.

1. Cash rental growth actuals for leases that expired in 2024. Inclusive of leases signed beginning in 1Q 2023. 6. Exclusive of three fixed rate rent renewals, which bring the figure to 20.1%. 7. Projected cash rental growth ranges for remaining expiring leases in 2024. Based on current negotiations and third party broker estimates. This does not include rent escalations over the duration of the leases. There is no guarantee these outcomes will be achieved. 8. Average Annual Rent Escalation based on next rent step percentages. Excludes escalating leases in last year after last escalation. 9. Excludes fixed renewals.

LXP 2023 6

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

Attractive Leasing Outcomes1

LXP's considerable mark-to-market leasing outcomes	management team. Our ability to continue to deliver strong
reflect the quality of our portfolio and highlight the value	leasing outcomes will further contribute to increased reve-
of our investment strategy and the strength of our asset	nue and an enhanced internal growth profile.

"We couldn't be more pleased with the strong leasing outcomes we continue to produce in our industrial portfolio. This speaks to the

MARKET

ATLANTA

DALLAS

asset class we're in, as well

Square

Footage

Rental

Increases

Lease Term

Starting

Rent

Annual

Escalation

Property

Attributes

1. As of 12/31/2023.

370,000

~79% - Base Rent

~62% - Cash Base Rent

5-Year Term

$6.70 PSF

4.0%

• Built in 2016 to modern specs
• Excellent access to I-85
• Located in Airport/North Clayton submarket of Atlanta, one of the largest and most sought after submarkets in the country

676,000

~88% - Base Rent

~65% - Cash Base Rent

7-Year Term

$5.20 PSF

4.0%

• Built in 2008 with modern improvements made in 2018
• Excellent access to I-75
• Located in the South Clayton/ Henry County submarket of Atlanta and one of the most sought after distribution submarkets in the country

501,000

~58% - Base Rent

~32% - Cash Base Rent

10-Year Term

$6.20 PSF

4.0%

• Built in 2019 to modern specs
• Excellent access to I-35W and TX Highway 114
• Located in the NE Tarrant/ Alliance submarket, one of the primary industrial submarkets in Dallas-Ft. Worth

as the quality and location of LXP's assets. While the leasing market has cooled somewhat, our below market rents and increasing annual escalators"point to continued growth as we look ahead.

JAMES DUDLEY

Executive Vice President,

Director of Asset Management

LXP 2023 7

2023 Annual Letter to Shareholders

AT A GLANCE	INTRODUCTION	2023 HIGHLIGHTS	INVESTMENT PLATFORM	OPERATIONAL PERFORMANCE	ESG+R	CAPITAL STRATEGY	FINANCIALS	CORPORATE INFO

Advancing Corporate Responsibility Efforts

We have successfully built the foundation of our Environmental, Social, Governance and Resilience (ESG+R) program, and in 2023 we focused on finding new and improved approaches to further enhance our program. Our goal is to continue making a difference as it relates to our business and stakeholders, the environment and our local communities. Notable activities in 2023 included conducting a Greenhouse Gas inventory of our Scope 1, 2 and 3 GHG emissions, partnering with certain non-profit organizations, hosting multiple employee trainings and events, completing our first solar project, increasing our green building certified square footage and executing more leases with green language. As a result of our efforts,

we continued our progress toward achieving our corpo-LEED BD+C Phoenix Market rate responsibility initiatives and goals.

		2023 ACHIEVEMENTS AND ACCOMPLISHMENTS1
		Published 2022 Corporate Responsibility Report aligned with estab-		Named a 2023 Green Lease Leader with gold recognition by the
		lished reporting frameworks, including GRI, TCFD, SASB and the UN
ENVIRONMENTAL			IMT and U.S. Department of Energy's Better Building Alliance
	Sustainable Development Goals (make linkable to 2022 CR Report)
		Increased GRESB Real Estate Benchmark score and received highest		Awarded as a member of ENERGY STAR Certification Nation
SOCIAL		Public Disclosure score within peer group
		Achieved over five million square feet of green building certifications		Conducted a tenant feedback survey through Kingsley Associates,
			achieving a satisfaction score in excess of the KA average
GOVERNANCE
Executed over seven million square feet of green leases2		Selected as a "Best Company to Work For" in New York
		Completed first solar project		Achieved inclusion into the 2023 Bloomberg Gender-Equality
RESILIENCE			Index
1. As of 12/31/2023. 2. Includes consolidated and non-consolidated properties.		LXP 2023 8