LXP solves largest overhang with sale of development projects, says Jefferies

Jefferies analyst Jonathan Petersen notes that LXP Industrial Trust (LXP) has officially put its big-box lease-up concerns in the rearview by selling its Ocala, Florida and Indianapolis projects to a user buyer for $151M in net proceeds. With this overhang removed, investors can now focus on LXP’s peer-leading rent growth, solid SS NOI growth potential, and an attractive valuation discount to industrial peers, the firm argues. Jefferies reiterates a Buy rating on the shares and believes yesterday’s +5% move is just the beginning as the stock re-rates closer to peers.