Education
About Us
Working with TipRanks
Follow Us
LXP Industrial Trust (LXP)
NYSE:LXP
Top Page
LXP Industrial Trust
(NYSE:LXP)
72Outperform
Positive Factors
Occupancy and Rent Growth
Occupancy increased to 93.6%, with rents on leasing activities expanding by roughly 40%, indicating strong demand.
Strategic Market Focus
LXP Industrial Trust has improved their exposure to higher growth markets while incurring no bottom-line dilution in the process.
Negative Factors
Leasing Challenges
Leasing challenges pertaining to speculative big-box vacant developments continue to impact sentiment, bottom-line earnings, and leverage.
Vacancy Issues
Three large developments remain vacant, with one potential full-building lease falling through due to the tenant suspending expansion plans.
LXP Industrial Trust (LXP) vs. S&P 500 (SPY)
Market Cap
$2.23B
Dividend Yield7.02%
Average Volume (3M)2.58M
Price to Earnings (P/E)58.0
Beta (1Y)0.96
Revenue Growth5.27%
EPS Growth58.15%
CountryUS
Employees59
SectorReal Estate
Sector Strength68
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.13
Shares Outstanding295,728,060
10 Day Avg. Volume3,003,349
30 Day Avg. Volume2,581,083
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)N/A
Price to Sales (P/S)7.20
Price to Cash Flow (P/CF)9.30
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside52.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
LXP Industrial Trust Business Overview & Revenue Model
Company DescriptionLexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased industrial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions.
How the Company Makes MoneyLXP Industrial Trust generates revenue primarily through the leasing of its industrial properties to a variety of tenants. The company earns rental income from long-term lease agreements, which provide a steady cash flow. Additionally, LXP may engage in property acquisitions and dispositions, strategically buying and selling assets to optimize its portfolio and increase value. The trust also benefits from property management fees and potential appreciation in property values, contributing to its overall earnings. LXP's focus on logistics and industrial sectors positions it to capitalize on the growing demand for distribution and warehouse spaces, further enhancing its revenue potential.
LXP Industrial Trust Financial Statement Overview
Summary
LXP Industrial Trust shows consistent revenue growth and strong liquidity, with no debt reported in 2024. However, challenges remain in profitability margins and operational efficiency, highlighted by a negative EBITDA margin.Income Statement
LXP Industrial Trust has shown consistent revenue growth over the years, with a 5.27% increase from 2023 to 2024. The gross profit margin improved significantly in 2024 to 82.98%, indicating strong control over cost of goods sold. However, the net profit margin is relatively low at 10.57% in 2024, suggesting potential challenges in managing other operating expenses. EBITDA margin turned negative in 2024, which is concerning as it indicates potential issues in operational efficiency. Despite these challenges, the company's revenue trajectory remains positive.65
Positive
Balance Sheet
The balance sheet is relatively strong with a solid equity base and no total debt reported in 2024, resulting in a healthy equity ratio of 54.59%. The return on equity for 2024 is moderate at 1.81%, which may reflect on the company's ability to generate returns on shareholders' equity. The improvement in cash and short-term investments from the previous year strengthens the company's liquidity position. However, the company should focus on enhancing its ROE to improve overall financial performance.75
Positive
Cash Flow
LXP Industrial Trust has maintained a stable operating cash flow to net income ratio over the last few years, indicating efficiency in converting net income into cash flow. The free cash flow has seen a slight growth, which is positive for future investments and debt repayment. However, the negative financing cash flow in 2024 could indicate a reduction in financing activities, which might limit future growth opportunities. Overall, the cash flow position is stable but requires careful management to sustain growth.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 358.46M | 340.50M | 321.25M | 344.00M | 330.45M | Gross Profit |
| 105.08M | 98.58M | 85.81M | 119.54M | 126.94M | EBIT |
| 7.71M | 62.28M | -139.46M | -97.81M | -70.71M | EBITDA |
| -221.29M | 245.81M | 227.57M | 85.44M | 258.16M | Net Income Common Stockholders |
| 37.92M | 30.38M | 113.78M | 382.65M | 183.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 101.84M | 329.39M | 54.39M | 190.93M | 178.79M | Total Assets |
| 3.84B | 4.19B | 4.05B | 4.01B | 3.49B | Total Debt |
| 1.46B | 1.66B | 1.39B | 1.40B | 1.25B | Net Debt |
| 1.36B | 1.46B | 1.33B | 1.21B | 1.07B | Total Liabilities |
| 1.72B | 1.93B | 1.66B | 1.68B | 1.50B | Stockholders Equity |
| 2.10B | 2.23B | 2.35B | 2.29B | 1.97B |
| Cash Flow | Free Cash Flow | |||
| 193.41M | 191.51M | 161.71M | 205.14M | 184.59M | Operating Cash Flow |
| 211.19M | 209.45M | 194.27M | 220.35M | 201.84M | Investing Cash Flow |
| 86.40M | -183.45M | -236.92M | -337.76M | -494.35M | Financing Cash Flow |
| -394.98M | 118.96M | -93.87M | 129.10M | 342.63M |
LXP Industrial Trust Technical Analysis
Negative
7.22
Price Trends
8.53
Negative
8.51
Negative
8.96
Negative
Market Momentum
<0.01
Positive
48.08
Neutral
7.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXP, the sentiment is Negative. The current price of 7.22 is below the 20-day moving average (MA) of 8.58, below the 50-day MA of 8.53, and below the 200-day MA of 8.96, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 7.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXP.
LXP Industrial Trust Risk Analysis
LXP Industrial Trust disclosed 44 risk factors in its most recent earnings report. LXP Industrial Trust reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LXP Industrial Trust Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.16B | 20.87 | 10.99% | 3.43% | 9.06% | 4.57% | |
76 Outperform | $1.48B | 9.43 | 8.20% | 14.58% | -0.32% | -4.24% | |
76 Outperform | $7.62B | 27.78 | 3.38% | 5.03% | 17.48% | 7.45% | |
75 Outperform | $6.04B | 30.60 | 5.53% | 4.67% | 8.41% | -2.96% | |
72 Outperform | $2.23B | 58.03 | 2.04% | 7.02% | 5.27% | 58.15% | |
71 Outperform | $5.50B | 27.86 | 5.59% | 3.60% | 18.24% | 6.95% | |
61 Neutral | $4.26B | 15.61 | -3.60% | 11.29% | 6.17% | -21.11% |
* Real Estate Sector Average
Performance Comparison
LXP
LXP Industrial Trust
7.22
-1.30
-15.26%
STAG
Stag Industrial
30.08
-5.62
-15.74%
TRNO
Terreno Realty
51.18
-8.54
-14.30%
FR
First Industrial Realty
43.07
-7.21
-14.34%
REXR
Rexford Industrial Realty
31.57
-14.46
-31.41%
IIPR
Innovative Industrial Properties
51.80
-37.54
-42.02%
LXP Industrial Trust Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -10.20% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong leasing performance, successful asset divestment and redeployment, effective interest rate management, and high occupancy rates. However, challenges remain in leasing large development projects and handling increased interest expenses. The sentiment is more positive due to significant achievements in leasing and revenue growth.Highlights
Strong Leasing Performance
Leasing volume of nearly 1 million square feet with base and cash-based rental increases of 66% and 43%, respectively. For the year, 4.5 million square feet of leasing volume with base and cash-based rent increases of 46% and 40%.
Successful Divestment and Redeployment
Sold remaining consolidated office assets and other properties, redeploying proceeds into a build-to-suit and four Class A properties in Sunbelt markets.
Interest Rate Management
Executed forward interest rate swap agreements on $333 million of floating rate debt, effectively locking in fixed rates on 97% of debt through year-end 2026.
High Occupancy and NOI Growth
Same-store portfolio was 99.5% leased at quarter end, with same-store NOI growth of 5% for the year.
Profitable Land Sale
Sold 100-acre Phoenix ground lease parcel for $83 million, representing a $60 million profit over the initial investment.
Lowlights
Big Box Development Leasing Challenges
Negotiations for a lease at 1.1 million square foot facility in Ocala, Florida, did not result in a lease. The area of big box development was slow in 2024.
Interest Expense Increase
Higher interest expense on term loans with the all-in rate increasing from approximately 2.7% to approximately 4.3%.
Company Guidance
During the LXP Industrial Trust Fourth Quarter Earnings Call for fiscal year 2024, several key metrics and guidance for 2025 were discussed. The company reported strong leasing outcomes, with a leasing volume of nearly 1 million square feet in the fourth quarter, resulting in base and cash-based rental increases of approximately 66% and 43%, respectively. For the year, they achieved a same-store NOI growth of 5%. LXP also completed significant investment activities, divesting certain assets and acquiring new properties in the Sunbelt markets, leading to a reduction in leverage to 5.9 times net debt to adjusted EBITDA. The company executed interest rate swap agreements on $333 million of floating rate debt, locking in fixed rates on 97% of their debt through 2026. Looking forward to 2025, LXP provided guidance for adjusted company funds from operations (FFO) in the range of $0.61 to $0.65 per diluted share. This guidance reflects the potential impact of big box leasing, with the lower end assuming no leases and the higher end assuming all three big box leases are completed in the second half of the year.LXP Industrial Trust Corporate Events
Executive/Board Changes
LXP Industrial Trust Appoints New CFO Nathan Brunner
Neutral
Mar 3, 2025
LXP Industrial Trust has appointed Nathan Brunner as its Executive Vice President, Chief Financial Officer, and Treasurer effective March 1, 2025. Mr. Brunner, who joined the Trust in September 2024, previously worked as an investment banker at J.P. Morgan. This leadership change follows the transition of Beth Boulerice to an advisory role and highlights the Trust’s strategic focus on strengthening its financial leadership team.
Business Operations and StrategyFinancial Disclosures
LXP Industrial Trust Reports Strong 2024 Financial Performance
Positive
Feb 13, 2025
For the fourth quarter and full year of 2024, LXP Industrial Trust reported strong financial performance, with net income attributable to common shareholders of $31.4 million and $37.9 million, respectively. The company achieved significant leasing activity and rent increases, while acquiring and disposing of various warehouse facilities and investing in development projects. LXP’s strategic moves, including acquisitions and build-to-suit projects, have strengthened its balance sheet and market positioning, particularly in the Sunbelt regions, and positioned the company to benefit from long-term trends in demographic and advanced manufacturing.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.