LXP

WEST PALM BEACH, Fla., July 29, 2026 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE: LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced results for the quarter ended June 30, 2026. Proposed Merger On July 19, 2026, LXP entered into an Agreement and Plan of Merger (the “Merger Agreement”) with certain affiliates of Brookfield Asset Management (NYSE: BAM, TSX: BAM) (“Brookfield”) and Canada Pension Plan Investment Board ("CPP Investments," and together with Brookfield, collectively, the "Buyer") in which, upon the terms and subject to the conditions set forth in the Merger Agreement, the Buyer would acquire all of the outstanding shares of LXP for $61.20 per share in cash (collectively with the other transactions contemplated by the Merger Agreement, the “Merger”) in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity. The proposed purchase price represents a premium of 12.3% to LXP’s 30-day volume weighted average price (“VWAP”) and a 19.8% premium to LXP’s 90-day VWAP, in each case for the period ended July 17, 2026. The transaction was unanimously approved by the LXP Board of Trustees and is expected to close by the end of the fourth quarter of 2026, subject to approval by LXP's shareholders and satisfaction of other customary closing conditions. Second Quarter 2026 Highlights Recorded Net Loss attributable to common shareholders of $(1.6) million, or $(0.03) per diluted common share. Generated Adjusted Company Funds From Operations available to all equityholders - diluted (“Adjusted Company FFO”) of $49.5 million, or $0.84 per diluted common share, compared to $0.80 per diluted common share in the same period in 2025, an increase of 5.0%. Increased Same-Store NOI 0.5% compared to the same period in 2025. Pre-leased a 1.2 million square foot development project with an initial annual cash base rent of approximately $9.8 million. Completed 2.3 million square feet of new and extended second-generation leases, increasing Base and Cash Base Rents by 43.1% and 26.2%, respectively, excluding two fixed-rate renewals. Acquired a 37-acre infill covered land investment in Phoenix, Arizona for $103.2 million and an initial cash yield of 15.7%. Commenced two speculative development projects in the Columbus, Ohio market, consisting of a 750,000 square foot facility and a 161,000 square foot facility. Subsequent Highlights Sold one warehouse facility outside of target markets for $51 million. Completed 0.2 million square feet of new leases and lease extensions, increasing Cash Base Rents by 31.0%. FINANCIAL RESULTS Revenues For the quarter ended June 30, 2026, total gross revenues were $88.1 million, compared with total gross revenues of $87.7 million for the quarter ended June 30, 2025. The increase is primarily attributable to acquisitions and increased rental revenue. Net Income Attributable to Common Shareholders For the quarter ended June 30, 2026, net loss attributable to common shareholders was $(1.6) million, or $(0.03) per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2025 of $27.5 million, or $0.47 per diluted share. Adjusted Company FFO For the quarter ended June 30, 2026, LXP generated Adjusted Company FFO of $49.5 million, or $0.84 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2025 of $47.3 million, or $0.80 per diluted share. Dividends LXP previously announced that it declared a regular quarterly common share dividend for the quarter ending June 30, 2026. The dividend of $0.70 per common share was paid on July 15, 2026 to common shareholders of record as of June 30, 2026. LXP also previously announced that it declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred") for the quarter ended June 30, 2026, which is expected to be paid on August 17, 2026 to shareholders of record as of July 31, 2026. Pursuant to the terms of the Merger Agreement, LXP has agreed to suspend payment of its regular common share quarterly dividend, effective immediately, subject to certain exceptions set forth in the Merger Agreement. The Merger Agreement permits LXP to make regular quarterly dividends on the Series C Preferred shares. TRANSACTION ACTIVITY (1) 37-acre infill industrial redevelopment site leased to Phoenix Education Partners through March 31, 2031. The property was acquired at GAAP and cash capitalization rates of 14.5% and 15.7%, respectively. (1) Excludes leasing costs, incomplete costs and developer incentive fees or partner promotes, if any.(2) Excludes noncontrolling interests' share.(3) Estimated project costs exclude estimated tenant improvements and leasing costs.(4) Represents infrastructure development costs to prepare the land for vertical development. (1) Excludes noncontrolling interests’ share.(2) 37-acre infill covered land investment available for redevelopment upon expiration of the in-place lease. As of June 30, 2026, LXP's stabilized portfolio was 97.4% leased. A total of 2.3 million square feet of new and extended second-generation leases were executed during the second quarter with Base and Cash Base Rents on second-generation leases increasing by 38.3% and 22.6%, including fixed rate renewals, and 43.1% and 26.2%, respectively, excluding two fixed rate renewals. BALANCE SHEET LXP ended the quarter with net debt to Annualized Adjusted EBITDA of 5.5x. LXP's total consolidated debt was $1.4 billion at quarter end. Total consolidated debt had a weighted-average term to maturity of 4.5 years and a weighted-average interest rate of 3.6% as of June 30, 2026. LXP's total cash and cash equivalents was $18.0 million at quarter end. SECOND QUARTER 2026 EARNINGS CONFERENCE CALL In light of the proposed Merger, LXP will not be hosting a conference call or webcast to present the second quarter 2026 results and will no longer provide earnings guidance, nor is it affirming past guidance. ABOUT LXP INDUSTRIAL TRUST LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and lower Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit www.lxp.com. Contact:Investor or Media Inquiries for LXP Industrial Trust:Heather Gentry, Executive Vice President of Investor RelationsLXP Industrial Trust Phone: (212) 692-7200 E-mail: [email protected] 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 Securities and Exchange Commission, including risks related to: (1) our ability to obtain consummate the Merger, including obtaining the requisite shareholder approval, and the timing of the closing, including the risks that a condition to closing will not be satisfied within the expected timeframe or at all or that the closing will not occur, (2) the outcome of any legal proceedings that may be instituted against the parties to, and others related to, the Merger Agreement, including timing and expenses risks, (3) operational risks related to the Merger, including time demands on management, employee retentions and transaction costs that are not contingent on closing, (4) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (5) the outbreak of highly infectious or contagious diseases and natural disasters, (6) authorization by LXP's Board of Trustees of future dividend declarations, (7) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields, (8) the failure to continue to qualify as a real estate investment trust, (9) changes in general business and economic conditions, including the impact of any legislation, (10) competition, (11) inflation and increases in operating costs, (12) labor shortages, (13) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (14) defaults or non-renewals of significant tenant leases, (15) changes in financial markets and interest rates, (16) changes in accessibility of debt and equity capital markets, (17) future impairment charges, (18) international trade disputes or the imposition of significant tariffs or other trade restrictions by the U.S. on imported goods that adversely impact trading volumes and (19) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, LXP undertakes no obligation to 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. Accordingly, there is no assurance that LXP's expectations will be realized. References to LXP refer to LXP Industrial Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors. Additional Information and Where to Find It In connection with the proposed transaction, LXP will file with the Securities and Exchange Commission (“SEC”) a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, LXP will mail the definitive proxy statement and a proxy card to each shareholder entitled to vote at the special meeting relating to the proposed transaction. INVESTORS AND SECURITY HOLDERS OF LXP ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT LXP FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement, the preliminary proxy statement and any other documents filed by LXP with the SEC (when available) may be obtained free of charge at the SEC’s website at www.sec.gov or by accessing the Investor Relations section of LXP’s website at www.lxp.com or by contacting LXP’s Investor Relations by email at [email protected]. Participants in the Solicitation LXP and its trustees and certain of its executive officers may be deemed to be participants in the solicitation of proxies from LXP’s shareholders with respect to the proposed transaction. Information about LXP’s trustees and executive officers and their ownership of LXP’s securities is set forth in LXP’s proxy statement on Schedule 14A for its 2026 annual meeting of shareholders, filed with the SEC on April 3, 2026, and subsequent documents filed with the SEC. Additional information regarding the identity of participants in the solicitation of proxies, and a description of their direct or indirect interests in the proposed transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed transaction when they become available. 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 expense, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of real estate or changes in control, impairment charges, gain (loss) on debt satisfaction, net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash purchase option 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. Annualized Adjusted EBITDA is Adjusted EBITDA for the quarter multiplied by four. Annualized Adjusted EBITDA: Adjusted EBITDA for the quarter multiplied by four. 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 its 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, leasing costs and expenditures contemplated at acquisition for recently acquired properties with vacancy. 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. The National Association of Real Estate Investment Trusts, or Nareit, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. LXP presents FFO available to common shareholders - basic and also presents FFO available to all equityholders - 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 - diluted which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio and not comparable from period to period. 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 excluding developer incentive fees or 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 and purchase option 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 the period commencing January 1, 2025 and through the end of the current reporting period. As Same-Store NOI excludes the change in NOI from acquired, expanded, disposed of properties and properties with significant casualty loss, 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 non-stabilized properties. LXP considers stabilization to occur upon the earlier of 90% occupancy of the property or one year from the cessation of major construction activities. 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 continues 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. (1) Transaction costs include costs associated with terminated investments, such as non-refundable deposits and legal fees.

Image source: The Motley Fool. Wednesday, April 29, 2026, at 8:30 a.m. ET Chairman and Chief Executive Officer — T. Wilson Eglin Chief Financial Officer — Nathan Brunner Chief Investment Officer — Brendan Mullinix Executive Vice President and Director of Asset Management — James Dudley Investor Relations — Heather Gentry Need a quote from a Motley Fool analyst? Email [email protected] Heather Gentry: Thank you, operator. Welcome to LXP Industrial Trust First Quarter 2026 Earnings Conference Call and Webcast. The earnings release was distributed this morning and both the release and quarterly supplemental are available on our website in the Investors Section and will be furnished to the SEC on a Form 8-K. Certain statements made during this conference call regarding future events and expected results may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. LXP believes that these statements are based on reasonable assumptions. However, certain factors and risks, including those included in today's earnings press release and those described in reports that LXP files with the SEC from time to time could cause LXP's actual results to differ materially from those expressed or implied by such statements. Except as required by law, LXP does not undertake a duty to update any forward-looking statements. In the earnings press release and quarterly supplemental disclosure package, LXP has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures. Any references in these documents to adjusted company FFO refer to adjusted company funds from operations available to all equity holders and unitholders on a fully diluted basis. Operating performance measures of an individual investment are not intended to be viewed as presenting a numerical measure of LXP's historical or future financial performance, financial position or cash flows. On today's call, Will Eglin, Chairman and CEO; and Nathan Brunner, CFO, will provide a recent business update and commentary on first quarter results. Brendan Mullinix, CIO; and James Dudley, Executive Vice President and Director of Asset Management, will be available for the Q&A portion of this call. I will now turn the call over to Will. T. Wilson Eglin: Thank you, Heather, and good morning, everyone. Following the successful execution of our key strategic initiatives in 2025, including strengthening our balance sheet, increasing occupancy and resolving our big box vacancy. This year, we are focused primarily on creating value in our land bank and addressing our near-term expirations and existing vacancy. We've executed 3.2 million square feet of new leases and lease renewals year-to-date, highlighted by the successful outcome at our 1.1 million square foot facility in the Greenville-Spartanburg market. Additionally, we leased over 300,000 square feet of vacancy and extended the lease on an 850,000 square foot facility in San Antonio for 10 years. Industrial fundamentals continue to trend in the right direction with first quarter U.S. net absorption of approximately 40 million square feet, representing the strongest first quarter in 3 years. Our target markets made up approximately 29 million square feet or 72% of U.S. net absorption, demonstrating continued strength in our markets, particularly in Phoenix, Indianapolis, Houston, Dallas-Fort Worth, Atlanta and Columbus. These positive trends are reflected in our strong leasing momentum year-to-date as well as our forward pipeline in which we are in active discussions on 7.4 million square feet of development and redevelopment leasing vacancy and expirations through 2027. Leasing activity continues to be the strongest for large-format facilities, especially for those of 1 million square feet or more. We are also seeing increased demand from data center-related tenancy and manufacturing suppliers and industries in our markets. Leasing volume of 1.8 million square feet during the quarter included the extension at our 1.1 million square foot facility in Greenville-Spartanburg, which added considerable value. We renewed this lease for an additional 4 years to 2031, following the initial 2-year lease signed in May 2025. This extension enhanced the 8% initial cash stabilized yield on the development project with the new cash rent representing a 5% increase over the prior rent and 3% annual rental bumps. On the remaining 700,000 square feet we leased during the quarter, we achieved base and cash-based rental increases of 34% and 24%, respectively. Construction is underway at our 1.2 million square foot Phoenix development project that we announced on our last quarterly call. Since then, the remaining 2 million square feet in the West Valley has been leased, leaving no million square foot buildings currently available in the market. We are in discussions with a prospective tenant, and we are well positioned if they proceed with a lease in the West Valley market given the limited supply of million square foot buildings. We are evaluating other development opportunities in our land bank, including in Columbus, where we have 69 acres at our Aetna land sites, which can support 3 facilities totaling roughly 1.25 million square feet. In the last 12 months, net absorption in the Columbus market was 10 million square feet, resulting in a decline in vacancy of over 300 basis points. Columbus continues to be a strong distribution market with increasing demand across product sizes, particularly in the large format space and has seen an influx of tenant activity that supports data center and advanced manufacturing facilities. To the extent we move forward with future development projects, we intend to fund them through opportunistic asset sales in our nontarget markets. As we have noted previously, acquisition activity will be selective and will be funded via 1031 exchange transactions to defer gains on dispositions. I'll now turn the call over to Nathan, who will provide a more detailed overview of our financials, leasing activity and balance sheet. Nathan Brunner: Thanks, Will. Our adjusted company FFO in the first quarter was approximately $47 million or $0.80 per diluted common share, representing 2.6% growth over the first quarter 2025. Same-store NOI growth was 2% for the quarter, which was in line with our expectations. Our stabilized portfolio was 96.6% leased at quarter end and 97.1% leased proforma for new leases signed in April, in line with year-end 2025. We are maintaining both our 2026 adjusted company FFO guidance range of $3.22 to $3.37 per common share and 2026 same-store NOI growth guidance range of 1.5% to 2.5% with regard to the cadence of same-store growth for the remainder of the year, we anticipate that second quarter same-store NOI growth will be lower than the first quarter, reflecting the impact of first quarter move-outs and timing of lease commencement for new leases signed year-to-date. These new leases are expected to contribute to higher same-store NOI growth in the second half of the year. G&A in the first quarter was approximately $10.3 million, with full year 2026 G&A expected to be within a range of $39 million to $41 million. Turning to leasing. We continue to make good progress on 2026 expirations and have addressed approximately 3.7 million square feet or 57% of our total 2026 lease roll with an average cash rental increase of approximately 25%, excluding 2 fixed rate renewals. Will highlighted some of the larger leases that we executed year-to-date, and I'll touch on a handful of other notable leasing outcomes. During the quarter, we renewed 352,000 square feet at our 640,000 square foot facility in Charlotte, North Carolina for a 3-year term with 3.5% annual escalators, representing a 42% cash rental increase. We are actively marketing the remaining 288,000 square feet of the property, which expires in October 2026. Subsequent to quarter end, we extended the lease with the tenant that occupies 270,000 square feet at our multi-tenant facility in the Savannah market, which was a July 30 expiration. The 10-year lease extension with 3% annual escalators represents a cash rental increase of 19% over the prior rent. With respect to 2027 expiration, post quarter, we extended the lease at our 850,000 square foot facility in San Antonio for a 10-year lease term with 2.75% annual escalators. The lease extension commences in May 2027 with a 25% cash rental increase. We're encouraged by the active discussions underway on 4.6 million square feet of the 2026 and 2027 lease roll, including several of our larger facilities. We've leased 330,000 square feet of vacancy year-to-date. During the quarter, we leased 85,000 square feet in Indianapolis to a tenant involved in data center development, achieving a 34% cash rental increase. Post quarter, we leased our 250,000 square foot facility in the Houston market for a 7-year term with 3.75% annual escalators. The new Houston lease commences in June and represents a 25% cash rental increase. LXP's balance sheet remains in great shape with net debt to annualized adjusted EBITDA of 5.1x at quarter end. We had $1.3 billion of cash on the balance sheet at quarter end, and our $600 million revolving credit facility was undrawn and fully available. As we highlighted on our last call, the recast of our $600 million revolving credit facility and $250 million term loan in January extended the company's debt maturity profile and reduced interest costs, further strengthening the balance sheet and providing financial flexibility. Finally, we repurchased 325,000 shares in the quarter at an average price of $48.70 per share. With that, I'll turn the call back over to Will. T. Wilson Eglin: Thanks, Nathan. In summary, we're pleased with first quarter results and our strong leasing outcomes year-to-date. As we move through the year, we will remain focused on executing our strategic priorities, including disciplined capital deployment, pursuing value-enhancing growth opportunities, leasing our Phoenix spec project and remaining vacancies and driving mark-to-market rent growth. As the leasing market continues to improve, we're confident that our forward leasing pipeline of over 7 million square feet will result in numerous attractive leasing outcomes that produce strong mark-to-market results. With that, I'll turn the call back over to the operator. Operator: [Operator Instructions] Our first question comes from the line of Todd Thomas with KeyBanc Capital Markets. Todd Thomas: A couple of questions. One, on the -- you talked Will, about the lack of big box space in some of your major markets, including Phoenix, where you broke ground. Can you talk about how that's impacting the market? Are you seeing that translate into pricing power, better discussions around prospective rent growth or urgency from tenants? And then would you look to sort of derisk and pre-lease that development project? Or do you think it probably affords better return opportunities to hold off until it's closer to completion and delivery? T. Wilson Eglin: Yes, sure. Thanks, Todd. I think as we expected in Phoenix since our last call, the last 2 million-foot competitive buildings have leased. So we're essentially in a great position on that facility that we've started. We do have a prospect that we're working fairly closely with, but nothing to report today. I think we would prefer to pre-lease and derisk the investment and lock in a profit and then move on because there are other good opportunities in the land bank. You mentioned Columbus, that's another one that we think sets up pretty well for us. The big box demand is doing very well. And at the moment, we're quite optimistic about the outcome on Phoenix for sure. Todd Thomas: Okay. And then, Nathan, you indicated 57% of the 26 expirations have been addressed. I think that included some of the activity that occurred in April. Can you just provide an update on the remaining 26 expirations in terms of your expectations there, if there's any known move-outs? James Dudley: Todd, this is James. I'll take it. We've got really good activity on the remaining 2026 and the majority of which we're expecting to renew. We do have a few small known move-outs that are remaining. We've got a 97,000 square foot space in our multi-tenant building in Columbus, where we're expecting the tenant to move out. We're marking that to lease. We've got good activity on that one. And then I guess touching on a couple of the new vacancies that we had, too. We had the Tampa move out, the 230 that we've got some decent activity on recently and also the 120 that just moved out in the first quarter as well in Greenville-Spartanburg that we've got really good activity on. And then we've also got a very small lease in Greenville-Spartanburg of 70,000 square feet that we expect the tenant to potentially move out of and another one for 163,000 square feet in Greenville-Spartanburg that move out. So small move-outs, good activity in a strong market and the Greenville-Spartanburg stuff is concentrated mostly around the park that we own. So we've got a lot of different things we can do there from a size perspective and moving tenants around, we're talking to the tenants that are in or around in that space in the park currently trying to figure out if some want to expand. So again, good activity on that upcoming vacancy and the vacancy that we had in the first quarter. Todd Thomas: Okay. That's helpful. And just lastly, I guess, the 1.8 million square feet of vacancy, that opportunity in the portfolio, you estimate it to be about $0.32 a share. Is there anything embedded in guidance related to the lease-up of that vacant space that would hit or that's included in the guidance this year? Brendan Mullinix: Yes. Todd, maybe the way I'd frame that is back to kind of the underlying drivers of the guidance. And they're pretty much unchanged versus our Q4 earnings call. That is average occupancy for the portfolio at the midpoint is about 96.5% which is essentially in line with where we finished Q1 or a little above that with some of the activity we had in April. At the high end of guidance, average occupancy be 97% and at the low end, average occupancy would be 96%. Operator: Our next question comes from the line of Anthony Paolone with JPMorgan. Anthony Paolone: Given the comments on Columbus, what's the likelihood that you start a project or two this year? Brendan Mullinix: It's Brendan. Nothing to announce today, but as has been noted, the fundamentals in Columbus are very positive today. We've been seeing a lot of demand from both data center-related uses and manufacturing as well as the demand drivers that have existed in that [indiscernible] market for some time. At the moment, we can -- we're -- in order to position ourselves with the most flexibility, we're doing predevelopment work, including design work on 3 different sized buildings there. We can build a total of 1.25 million. And that will just allow us the maximum flexibility to respond to where we see the most favorable supply and demand. Anthony Paolone: Okay. And is the pipeline outside of what you have on your balance sheet right now for things like build-to-suits and development? Has that changed much? Is there much activity there with any other developers that you might be working with right now? Brendan Mullinix: Well, I should have also added too, just with respect to the existing land bank, we are additionally responding to build-to-suit interest at both our Columbus sites and our Phoenix sites. So there's that build-to-suit opportunity in the land bank as well as considering speculative development if the fundamentals are there and remain there. With respect to other opportunities, yes, we do have conversations with the merchant builder relationships that we have from time to time about build-to-suit opportunities outside of our land bank as well. But nothing imminent to report on today on that front. Anthony Paolone: Okay. And then just last one, the stock buyback, just you've done a little bit there. What's the appetite at current levels? And just how does it fit into the capital allocation right now? T. Wilson Eglin: Development is a better investment from our standpoint with respect to creating shareholder value. So we have some liquidity that we can use for buyback opportunistically. But what's happening in the development there, especially in Phoenix is a much larger driver of value creation. Operator: Our next question comes from the line of Vince Tibone with Green Street. Vince Tibone: A question for Nathan. I'm curious within guidance, how much new leasing is kind of baked into the low end, high end? Because it sounds like you have a pretty good pulse on known move-outs and retention rates. So just trying to get a sense of do you need to lease another 300,000 square feet of existing vacancies or move-outs to hit the midpoint? Or is it lower? Just trying to get a sense of the kind of different outcomes besides just move-outs on the new leasing side that could move the numbers within guidance, whether it be same-store or FFO. Brendan Mullinix: Yes, Vince. So going back to James' answer a little earlier in the Q&A here. We have 3 known move-outs essentially in the second half, which is roughly 550,000 square feet. So in the context of our earnings guidance at the midpoint, we're essentially saying that on average during the year, including Q1, occupancy will be 96.5%, which is in line with Q1. So the guidance at the midpoint essentially assumes that we have new leasing activity with regard to all of that move-out activity. And then so if you look to the high end of guidance where average occupancy is 97%, there's obviously incremental new leasing beyond the 550 of move-outs. Vince Tibone: No, that's helpful. And just a follow-up. It looks like just some quick math. It looks like the retention rate is going to be higher than we previously projected. Is that fair? I think on the last call, you indicated it would be about 70% and it looks like just given the first quarter move-outs and the 500 you mentioned there, it looks like retention will be yes, closer to 90%, if my math is right, in the 80s. Is that -- is my logic correct there? Brendan Mullinix: We're building in some buffer for unknown situations that they come up. There's always something that comes up in the back half of the year that you're expecting. So there's some buffer. Our guidance is still based on 70% to 80% retention. Vince Tibone: Got it. And then just last one from me. Just on the -- you mentioned if you're going to proceed with any new developments, you would likely fund it with dispositions -- is there any chance you look to sell out of the cold JV or the remaining net lease office JVs? Or kind of what's the strategic rationale to hold on to those joint venture assets that are now very different from the rest of the portfolio? T. Wilson Eglin: Well, yes, there's not much left in the office JV, Vince, and we have been sort of liquidating that as quickly as the market will bear. In the other industrial joint venture, we're a 20% partner there. So it's -- with the majority partners entirely up to us. We do have some opportunities to make some good sales in that portfolio. So we do expect that it will shrink modestly over time. But it's an investment that produces a pretty high return on equity for us, and it keeps us with a modest exposure to the manufacturing business, which gives us some insights into the logistics demand in some of those manufacturing hubs that we're invested in. Operator: Our next question comes from the line of Jim Kammert with Evercore. James Kammert: I think, Nathan, you mentioned 4.6 million square feet or so of lease renegotiations for new lease expirations. How much or does any of that encompass you guys two big Nissan deals in early '27 and then 1 million square footer in Jackson, Tennessee. Any color or updates on those would be appreciated. I didn't know if that was in your 4.6 million square feet. James Dudley: Jim, it's James again. I guess I'll touch on the 2027. Yes, we've got a number of chunky leases in 2027, and we're in advanced negotiations in some cases and definitely talking to all the tenants for these large boxes and expect a very high rate, if not 100% renewal on the big boxes that we have that includes Nissan. Operator: Our next question is from the line of Mitch Germain with Citizens Bank. Mitch Germain: I think, Will, you mentioned any new development would be matched with -- or new potential development would be matched with asset sales. Is that -- are you going to sell ahead of the project commencement and kind of sit on those proceeds like you've done at the end of 4Q with Phoenix? Or how should we think about the cadence regarding how that process could play out? T. Wilson Eglin: No, I think it's preferable to match fund sales with stabilized outcomes for development. So we had some disposition activity last year that left us in a very strong cash position to fund the project in Phoenix. But I think we would prefer to hold on to the income from the assets that we might sell to fund development and try to match things better. Mitch Germain: Got you. And then last one for me. Obviously, a significant amount of demand acceleration happening in the industrial sector. You mentioned a 7-plus million square foot pipeline. Any sort of themes, industries that you're seeing that are driving more demand versus others? James Dudley: Brendan touched on it a little bit. We've seen a big uptick in data center adjacent demand in a number of our markets, and we're fortunate to be placed well for those potential tenants as well. You've seen a couple of big leases get done for Meta and for AWS in Phoenix that took down a couple of the big boxes there. There's been a lot of new activity in Columbus that's data center related as well. And then we've got our Richmond redevelopment where there's a big Google data center campus going in next door. So I think that's one of the things I would point out. There's also continue to be growth in supplier demand for advanced manufacturers that we're seeing continue to grow and develop their different opportunities. I'll bring Phoenix up again with TSMC moving along and some of the ancillary demand that's popped up there. So we're starting to see a pickup there. So manufacturing and data center adjacent, I think, has definitely been the recent theme and a big pickup in the demand. Operator: [Operator Instructions] Our next question comes from the line of Jon Petersen with Jefferies. Jonathan Petersen: Just one quick question for me. The senior notes that are due in '28, the $160 million with a 6.75% interest rate. Can you remind us, are those callable early? Like should we think about you taking those all the way to maturity? Or should we assume you're able to refinance those early? Brendan Mullinix: They have a make call structure. So they're technically callable, but it requires the payment of premium. Operator: Thank you. And at this time, we have no further questions. I will now turn the call back over to Will Eglin for closing remarks. T. Wilson Eglin: We appreciate everyone joining our call this morning, and we look forward to updating you on our progress over the balance of the year. Thanks again for joining us today. Operator: This concludes today's conference call. You may now disconnect your lines. Have a pleasant day. Before you buy stock in LXP Industrial Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and LXP Industrial Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!* Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. LXP Industrial (LXP) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Management is pivoting strategic focus toward creating value within the existing land bank and addressing near-term lease expirations following the successful stabilization of the portfolio in 2025. Industrial fundamentals are showing a positive trend, with first-quarter U.S. net absorption reaching its strongest level in three years, heavily concentrated in LXP's target markets. Leasing demand is particularly robust for large-format facilities exceeding 1 million square feet, driven by limited supply and an influx of data center-related and advanced manufacturing tenants. The company successfully enhanced the yield on its Greenville-Spartanburg development by extending a lease through 2031, achieving a 5% rent increase and 3% annual escalators. Strategic positioning in the Phoenix West Valley market is bolstered by the absorption of all other million-square-foot competitive buildings, leaving LXP's current development as a primary option for large tenants. Capital allocation remains disciplined, with a preference for funding new development through opportunistic asset sales in non-target markets and utilizing 1031 exchanges to defer gains. The 2026 adjusted company FFO guidance of $3.22 to $3.37 per share is maintained, assuming average portfolio occupancy between 96% and 97%. Same-store NOI growth is expected to be lower in the second quarter due to move-out timing but is projected to accelerate in the second half of the year as new leases commence. Management is evaluating new development starts in Columbus, where vacancy has declined by over 300 basis points, and is currently performing predevelopment design work on three potential facilities. The forward leasing pipeline includes active discussions on 7.4 million square feet of development and vacancy through 2027, with high expectations for 100% renewal on several large-box facilities. Future development funding will ideally be match-funded with stabilized asset sales to preserve income while transitioning capital into higher-value projects. Identified approximately 550,000 square feet of known move-outs in the second half of 2026, primarily across smaller facilities in Columbus and Greenville-Spartanburg. The company continues to liquidate its remaining office joint venture assets as market conditions permit, while maintaining its industrial JV for high ROE and market insights. A $160 million senior note due in 2028 carries a make-whole call structure, suggesting it will likely remain outstanding until closer to maturity to avoid premium payments. Share repurchases remain an opportunistic tool, but management explicitly prioritizes development as a superior driver of shareholder value creation at current levels. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management confirmed they are in discussions with a prospect for the Phoenix project and would prefer to pre-lease to de-risk the investment and lock in profits. The lack of competing million-square-foot buildings in the West Valley has significantly improved LXP's negotiating position. Guidance is built on a 70% to 80% retention rate assumption, providing a buffer for unknown move-outs in the latter half of the year. Reaching the high end of FFO guidance would require incremental new leasing beyond the currently identified 550,000 square feet of move-outs. There is a significant uptick in 'data center adjacent' demand, with major tech players like Meta, AWS, and Google expanding near LXP's holdings in Phoenix, Columbus, and Richmond. Supplier demand for advanced manufacturing is growing, specifically citing ancillary needs related to the TSMC project in Phoenix. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Management said LXP has executed 3.2 million sq ft of new leases and renewals YTD, leased over 300,000 sq ft of vacancy, and addressed 57% of 2026 expirations with an average cash rental increase of about 25%, with quarter leasing showing base and cash rent bumps up to 34%/24%. Development and land‑bank priorities include construction of a 1.2 million‑sq ft speculative project in Phoenix (management prefers to pre‑lease) and 69 acres in Columbus that can support roughly 1.25 million sq ft, with future builds to be funded by opportunistic non‑core asset sales. Financially, Q1 adjusted company FFO was about $47 million ($0.80 per share) with stabilized occupancy near 96.6%, the company reiterated 2026 FFO guidance of $3.22–$3.37, and holds $130 million cash, an undrawn $600 million revolver and net debt/EBITDA of 5.1x. Interested in LXP Industrial Trust? Here are five stocks we like better. LXP Industrial Trust (NYSE:LXP) reported first-quarter 2026 results and discussed leasing momentum, development plans, and capital allocation priorities during its earnings call. Management emphasized that, after completing several strategic initiatives in 2025, the company’s 2026 focus is on “creating value in our land bank” while addressing near-term lease expirations and existing vacancy, according to Chairman and CEO Will Eglin. Eglin said the company has executed 3.2 million square feet of new leases and renewals year to date, highlighted by activity at a 1.1 million-square-foot facility in the Greenville-Spartanburg market. He also noted that LXP leased more than 300,000 square feet of vacancy and extended the lease on an 850,000-square-foot facility in San Antonio for 10 years. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Eglin pointed to improving U.S. industrial fundamentals, citing “first quarter U.S. net absorption of approximately 40 million sq ft,” which he said was the strongest first quarter in three years. He added that LXP’s target markets accounted for about 72% of that net absorption, with strength in Phoenix, Indianapolis, Houston, Dallas-Fort Worth, Atlanta, and Columbus. Management said leasing demand has been strongest for large-format buildings, particularly 1 million square feet or larger, and noted rising interest from “data center related tenancy and manufacturing suppliers,” as Eglin described it. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Eglin said leasing volume during the quarter totaled 1.8 million square feet, including the extension at the 1.1 million-square-foot Greenville-Spartanburg facility. He said LXP renewed that lease for an additional four years to 2031 after initially signing a two-year lease in May 2025. Eglin said the extension enhanced the project’s “8% initial cash stabilized yield,” with new cash rent 5% higher than the prior rent and featuring 3% annual increases. On the remaining 700,000 square feet leased during the quarter, Eglin said LXP achieved base and cash base rental increases of 34% and 24%, respectively. → Did Qualcomm Just Put Apple in Check? Chief Financial Officer Nathan Brunner provided additional lease details and said the company has addressed 3.7 million square feet, or 57%, of 2026 lease expirations with an average cash rental increase of about 25%, excluding two fixed-rate renewals. Notable leasing items discussed on the call included: Charlotte, North Carolina: Brunner said LXP renewed 352,000 square feet at a 640,000-square-foot facility for three years with 3.5% annual escalators, representing a 42% cash rental increase. He said the remaining 288,000 square feet expires in October 2026 and is being actively marketed. Savannah (post-quarter): Brunner said LXP extended a 270,000-square-foot tenant at a multi-tenant property for 10 years with 3% annual escalators, representing a 19% cash rental increase. San Antonio (post-quarter, 2027 expiration): Brunner said LXP extended the lease on an 850,000-square-foot facility for 10 years with 2.75% annual escalators. The extension begins in May 2027 and includes a 25% cash rental increase. Indianapolis: Brunner said LXP leased 85,000 square feet during the quarter to a tenant involved in data center development, achieving a 34% cash rental increase. Houston (post-quarter): Brunner said LXP leased a 250,000-square-foot facility for seven years with 3.75% annual escalators, commencing in June and representing a 25% cash rental increase. Eglin said LXP is in active discussions on a forward pipeline of 7.4 million square feet covering development and redevelopment leasing, vacancy, and expirations through 2027. Brunner added that the company is encouraged by discussions underway on 4.6 million square feet of 2026 and 2027 lease roll. During Q&A, Executive Vice President and Director of Asset Management James Dudley described activity around remaining 2026 expirations, saying LXP has “really good activity” and expects “the majority” to renew. He identified several known move-outs, including: 97,000 square feet in a multi-tenant building in Columbus A 230,000-square-foot move-out in Tampa, which Dudley said is seeing “decent activity” 120,000 square feet that moved out in the first quarter in Greenville-Spartanburg, which he said has “really good activity” Potential move-outs of 70,000 square feet and a known move-out of 163,000 square feet in Greenville-Spartanburg Brunner later framed guidance assumptions in terms of occupancy, noting three known move-outs in the second half totaling roughly 550,000 square feet. He said midpoint guidance assumes new leasing activity associated with the move-outs, while the high end of guidance assumes incremental leasing beyond that amount. Brunner also said the company’s guidance remains based on 70% to 80% retention, with a buffer for “unknown situations that come up.” On large 2027 expirations, including Nissan, Dudley said LXP is in discussions with tenants for its “chunky leases” and expects “a very high rate if not 100% renewal on the big boxes that we have,” including Nissan. On development, Eglin said construction is underway at a 1.2 million-square-foot Phoenix project announced previously, and he highlighted tighter large-box availability in the market, saying the remaining 2 million square feet in Phoenix’s West Valley has been leased and there are “no million square foot buildings currently available in the market.” Eglin said LXP is in discussions with a prospective tenant for the Phoenix project but had “nothing to report today,” adding the company would prefer to pre-lease to “de-risk the investment.” Management also discussed potential development in Columbus. Eglin said LXP has 69 acres at its Etna land sites that can support three facilities totaling roughly 1.25 million square feet. Brendan Mullinix, Chief Investment Officer, said the company is doing pre-development and design work on three different-sized buildings to maintain flexibility, but he also said there was “nothing to announce today.” Eglin said LXP is also responding to build-to-suit interest at its Columbus and Phoenix sites and has conversations with merchant builder relationships on potential build-to-suits outside the land bank, though he noted nothing was imminent. Regarding funding, Eglin said future development would be funded through “opportunistic asset sales in our non-target markets.” In response to a question about timing, he said the company would prefer to “match fund sales with stabilized outcomes for development” and hold onto asset income longer rather than selling well ahead of project commencement. Brunner said adjusted company FFO in the first quarter was approximately $47 million, or $0.80 per diluted common share, representing 2.6% growth over the first quarter of 2025. He reported same-store NOI growth of 2% and said stabilized portfolio leased occupancy was 96.6% at quarter end and 97.1% leased pro forma for leases signed in April. The company maintained its full-year guidance ranges, with Brunner reiterating: 2026 adjusted company FFO guidance: $3.22 to $3.37 per common share 2026 same-store NOI growth guidance: 1.5% to 2.5% Brunner said second-quarter same-store NOI growth is expected to be lower than the first quarter due to the impact of first-quarter move-outs and the timing of new lease commencements, with stronger growth anticipated in the second half as new leases begin contributing. He reported first-quarter G&A of about $10.3 million and said full-year 2026 G&A is expected to be $39 million to $41 million. On capital and leverage, Brunner said net debt to annualized adjusted EBITDA was 5.1 times at quarter end. He said LXP had $130 million of cash and an undrawn $600 million revolving credit facility. Brunner also referenced the January recast of the $600 million revolver and $250 million term loan, saying it extended maturities and reduced interest costs. Brunner said LXP repurchased 325,000 shares during the quarter at an average price of $48.70 per share. During Q&A, Eglin said the company can use liquidity for buybacks opportunistically, but added that development, “especially in Phoenix,” is the larger value driver from management’s perspective. When asked about $160 million of 6.75% senior notes due in 2028, Brunner said the notes have a make-whole structure and are technically callable but require payment of a premium. In closing remarks, Eglin said the company remains focused on disciplined capital deployment, leasing the Phoenix speculative project and remaining vacancies, and driving mark-to-market rent growth, adding that management expects its leasing pipeline to produce “strong mark-to-market results” as market conditions improve. LXP Industrial Trust is a real estate investment trust that specializes in the ownership, acquisition and management of industrial properties across North America. The company's portfolio consists of warehouses, distribution centers and manufacturing facilities designed to support supply-chain and logistics operations. By focusing on long-term leasing arrangements, LXP Industrial Trust aims to provide stable income streams while delivering value to tenants through modern, well-positioned industrial space. The firm's primary business activities include sourcing and under-writing new property investments, overseeing development and redevelopment projects, and implementing asset-management strategies to enhance the performance of its holdings. The article "LXP Industrial Trust Q1 Earnings Call Highlights" was originally published by MarketBeat.

WEST PALM BEACH, Fla., April 29, 2026 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE: LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced results for the quarter ended March 31, 2026. First Quarter 2026 Highlights Recorded Net Loss attributable to common shareholders of $(1.9) million, or $(0.03) per diluted common share. Generated Adjusted Company Funds From Operations available to all equityholders - diluted (“Adjusted Company FFO”) of $47.3 million, or $0.80 per diluted common share, compared to $0.78 per diluted common share in the same period in 2025, an increase of 2.6%. Increased Same-Store NOI 2.0% compared to the same period in 2025. Extended lease at 1.1 million square foot Greenville/Spartanburg facility for additional four years through 2031, following the initial two-year lease signed in May 2025. Completed an additional 0.7 million square feet of new leases and lease extensions, increasing Base and Cash Base Rents by 34.1% and 24.3%, respectively. Commenced a 1.2 million square foot speculative development project in Phoenix, Arizona. Extended the maturities and reduced pricing on $600 million unsecured revolving credit facility and $250 million term loan. Repurchased and retired approximately 325,000 common shares at an average price of $48.70 per common share. Subsequent Highlights Completed 1.4 million square feet of new leases and lease extensions, increasing Cash Base Rents by 23.4%, bringing year-to-date spreads on Cash Base Rents to 16.3%. T Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, “Our first quarter results reflect LXP’s continued leasing momentum, with 3.2 million square feet leased year-to-date, underscoring the strength of both our target markets and demand for large-format logistics facilities. This activity included the successful outcome at our 1.1 million square foot facility in Greenville/Spartanburg, in which we extended the lease for an additional four years, further enhancing the 8% initial cash stabilized development yield. With active discussions underway on over seven million square feet in our leasing pipeline, we are optimistic that we will continue to achieve attractive leasing outcomes going forward.” FINANCIAL RESULTS Revenues For the quarter ended March 31, 2026, total gross revenues were $85.9 million, compared with total gross revenues of $88.9 million for the quarter ended March 31, 2025. The decrease is primarily attributable to property dispositions. Net Income Attributable to Common Shareholders For the quarter ended March 31, 2026, net loss attributable to common shareholders was $(1.9) million, or $(0.03) per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2025 of $17.3 million, or $0.30 per diluted share. Adjusted Company FFO For the quarter ended March 31, 2026, LXP generated Adjusted Company FFO of $47.3 million, or $0.80 per diluted share, compared to Adjusted Company FFO for the quarter ended March 31, 2025 of $46.4 million, or $0.78 per diluted share. Dividends LXP previously announced that it declared a regular quarterly common share dividend for the quarter ending March 31, 2026. The dividend of $0.70 per common share was paid on April 15, 2026 to common shareholders of record as of March 31, 2026. LXP also previously announced that it declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred") for the quarter ended March 31, 2026, which is expected to be paid on May 15, 2026 to shareholders of record as of April 30, 2026. TRANSACTION ACTIVITY LAND HELD FOR INDUSTRIAL DEVELOPMENT LEASING As of March 31, 2026, LXP's stabilized portfolio was 96.6% leased. A total of 1.8 million square feet of new second-generation and extended second-generation leases were executed during the first quarter of 2026 with Base and Cash Base Rents on second-generation leases increasing by 19.1% and 11.9%, respectively. Additionally, LXP executed 1.4 million square feet of new and extended second-generation leases at Cash Base rent spreads of 23.4%, which resulted in a year-to-date increase in Cash Base Rents of 16.3%. BALANCE SHEET LXP ended the quarter with net debt to Annualized Adjusted EBITDA of 5.1x. LXP's total consolidated debt was $1.3 billion at quarter end. Total consolidated debt had a weighted-average term to maturity of 4.7 years and a weighted-average interest rate of 3.6% as of March 31, 2026. LXP's total cash and cash equivalents was $130.1 million at quarter end. During the first quarter of 2026, LXP repurchased and retired approximately 325,000 common shares at an average price of $48.70 per share. Since December 2025, LXP has repurchased and retired approximately 406,200 shares at an average price of $48.77. 2026 EARNINGS GUIDANCE LXP estimates net income attributable to common shareholders for the year ended December 31, 2026 will be within an expected range of $0.00 to $0.15 per diluted common share. LXP is reaffirming its expectation that Adjusted Company FFO guidance for the year ending December 31, 2026, will be within an expected range of $3.22 to $3.37 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations. FIRST QUARTER 2026 CONFERENCE CALL LXP will host a conference call today, April 29, 2026, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2026. Interested parties may participate in this conference call by dialing 1-888-660-6082 or 1-929-201-6604. Conference ID is 1576583. A replay of the call will be available through May 6, 2026 at 1-800-770-2030 or 1-609-800-9909, pin code for all replay numbers is 1576583. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section. The webcast link will be available for one year. ABOUT LXP INDUSTRIAL TRUST LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and lower Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit www.lxp.com. Contact: Investor or Media Inquiries for LXP Industrial Trust: Heather Gentry, Executive Vice President of Investor Relations LXP Industrial Trust Phone: (212) 692-7200 E-mail: [email protected] 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 Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (2) the outbreak of highly infectious or contagious diseases and natural disasters, (3) authorization by LXP's Board of Trustees of future dividend declarations, (4) LXP's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2026, (5) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields, (6) the failure to continue to qualify as a real estate investment trust, (7) changes in general business and economic conditions, including the impact of any legislation, (8) competition, (9) inflation and increases in operating costs, (10) labor shortages, (11) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (12) defaults or non-renewals of significant tenant leases, (13) changes in financial markets and interest rates, (14) changes in accessibility of debt and equity capital markets, (15) future impairment charges, (16) international trade disputes or the imposition of significant tariffs or other trade restrictions by the U.S. on imported goods that adversely impact trading volumes and (17) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, LXP undertakes no obligation to 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. Accordingly, there is no assurance that LXP's expectations will be realized. References to LXP refer to LXP Industrial Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors. 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 expense, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of real estate or changes in control, impairment charges, gain (loss) on debt satisfaction, net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash purchase option 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. Annualized Adjusted EBITDA is Adjusted EBITDA for the quarter multiplied by four. Annualized Adjusted EBITDA: Adjusted EBITDA for the quarter multiplied by four. 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 its 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, leasing costs and expenditures contemplated at acquisition for recently acquired properties with vacancy. 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. The National Association of Real Estate Investment Trusts, or Nareit, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. LXP presents FFO available to common shareholders - basic and also presents FFO available to all equityholders - 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 - diluted which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio and not comparable from period to period. 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 excluding developer incentive fees or 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 and purchase option 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 the period commencing January 1, 2025 and through the end of the current reporting period. As Same-Store NOI excludes the change in NOI from acquired, expanded, disposed of properties and properties with significant casualty loss, 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 non-stabilized properties. LXP considers stabilization to occur upon the earlier of 90% occupancy of the property or one year from the cessation of major construction activities. 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 continues 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. (1) Transaction costs include costs associated with terminated investments, such as non-refundable deposits and legal fees. (1) Assumes all convertible securities are dilutive.

Five Star Bancorp (FSBC) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.09%. A quarter ago, it was expected that this company would post earnings of $0.77 per share when it actually produced earnings of $0.83, delivering a surprise of +7.79%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Five Star Bancorp, which belongs to the Zacks Banks - West industry, posted revenues of $45.1 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.59%. This compares to year-ago revenues of $35.34 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Five Star Bancorp shares have added about 13.2% since the beginning of the year versus the S&P 500's gain of 4.7%. While Five Star Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Five Star Bancorp was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $46 million in revenues for the coming quarter and $3.43 on $187.55 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. LXP Industrial (LXP), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 29. This real estate investment trust is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +1.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. LXP Industrial's revenues are expected to be $86.36 million, down 2.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Five Star Bancorp (FSBC) : Free Stock Analysis Report LXP Industrial Trust (LXP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research