LXP Industrial Trust : Second Quarter 2022 Investor Presentation
08/05/2022 | 11:36am EDT
I N V E S T O R P R E S E N T A T I O N
SECOND QUARTER 2022
This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve known and unknown risks, uncertainties or other factors not under LXP Industrial Trust's ("LXP") 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. These factors include, but are not limited to, those factors and risks detailed in LXP's filings with the Securities and Exchange Commission. Except as required by law, LXP undertakes no obligation to (1) publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events or (2) update or supplement forward-looking statements that become untrue because of subsequent events. Accordingly, there is no assurance that LXP's expectations will be realized.
For information on non-GAAP measures, please see the definitions at the end of the presentation. See LXP's corresponding supplemental disclosure package for a reconciliation of all non-GAAP financial measures to the most directly comparable GAAP measure. All information is on a consolidated basis unless noted.
LXP's 'Other' Portfolio consists of office, cold storage, manufacturing, and other specialty assets.
All company names are trademarks™, registered® trademarks or service marks of their respective holders. Use of them does not imply any affiliation with or endorsement of them.
LXP Offers a Highly Attractive Investment Opportunity
Large, high-quality portfolio of primarily single-tenant warehouse/distribution assets in key logistics markets
Compelling sector tailwinds driving strong
demand, occupancy and rent growth
Platform primed for long-term growth from favorable
mark-to-market in current portfolio and strong development pipeline
Balance sheet provides operational flexibility
to execute disciplined growth strategy
Experienced management team with a track
record of value creation
6 Top-ranked ESG+R program aligned with established frameworks
2022 Strategy Execution1
Industrial Investment Opportunities
Acquired a warehouse/distribution facility for~$59 million, bringing year-to-date purchase to $131 million at GAAP and Cash stabilized capitalization rates of 4.5% and 4.0%, respectively.
Invested~$53 million in six ongoing development projects.
Commenced development on a new project in Central Florida and acquired60 acres of developable land in Atlanta, Georgia and Indianapolis, Indiana markets.
Non-Core Asset Dispositions
Disposed of~$55 million at aggregated weighted-average GAAP and cash capitalization rates of 6.2% and 6.7%, respectively.
Subsequent to quarter-end, disposed of ~$92 million dollars of assets.
Majority of remaining office assets in the market for sale.
Proactive Asset Management
Leased~1 million square feet, including a new lease totaling 392,000 square feet.
Stabilized Industrial Portfolio leased of99.3%.
Increased industrial Base and Cash Base rents by21.3% and 18.7%, respectively, on new/extended leases during the quarter, with a 3.0% average annual rental escalator.
Flexible Balance Sheet
Leverage of6.8x net debt to Adjusted EBITDA.
Primarily fixed rate, long term debt with weighted-average interest rate of 2.9% and a weighted-average term of 6.5 years.
Aggregate of$183.4 million under unsettled forward common share sales contracts.
Capital Markets Activity
Year-to-date, repurchased ~7.9 million common shares at an average share price of $11.27 per common share under share repurchase program. Board increased the repurchase authorization by an additional 10 million common shares.
1. As of 6/30/2022, unless otherwise noted.
Clear Strategic Focus
▪ Multi-channel industrial growth strategy - purchases, build-to-suit, development and sale-leasebacks
Single-tenant,well-located, Class A warehouse/distribution assets along the Sunbelt and lower Midwest
▪ Grow cash flow through investment activity, contractual annual rental escalations and market rent growth
▪ Produce dividend yield and growth that is attractive relative to fixed-income alternatives
▪ Warehouse/distribution pure play
▪ Dispose of remaining office/non-core portfolio
▪ Focused on tenant relationships
▪ Manage lease expirations and weighted-average lease terms ▪ Sustain high levels of occupancy while raising rents
Sales proceeds and other sources of liquidity will be utilized to fund development pipeline, repurchase shares and pay down debt
Maintain moderate leverage while stabilizing development pipeline
Access to secured and investment-grade unsecured debt
Incorporate primarily long-term,fixed-rate debt with balanced maturities
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Lexington Realty Trust published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 15:35:09 UTC.