Warehouse-focused REIT LXP's Q2 net income jumps

Overview

• LXP Q2 net income rises to $27.5 mln from $3.8 mln last year

• Adjusted Company FFO up slightly to $47.3 mln for Q2

• Revenue increased to $87.7 mln, driven by acquisitions and rent hikes

Outlook

• LXP estimates 2025 net income per share between $0.13 and $0.15

• Company tightens 2025 Adjusted Company FFO guidance to $0.62-$0.64 per share

• LXP expects Greenville/Spartanburg market to contribute about $3.7 million to FFO this year

Result Drivers

• LEASE EXTENSIONS - Extended 1.3 mln sq ft of leases year-to-date, increasing base and cash base Rents by 41.5% and 46.2%, respectively

• PROPERTY DISPOSITION - Sold a warehouse facility for $39.6 mln at a 4.3% cash capitalization rate

• HIGHER NOI - Increased Same-Store NOI 4.7% compared to the same period in 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for LXP Industrial Trust is $10.00, about 19.3% above its July 29 closing price of $8.07

Press Release: ID:nGNX7ZY23g