LXP Industrial Trust (LXP) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: 6.5%
• Average Volume (3M): 3.07M
• Price to Earnings (P/E): 62.6
• Beta (1Y): 0.81
• Revenue Growth: 5.27%
• EPS Growth: 58.15%
• Country: US
• Employees: 59
• Sector: Real Estate
• Sector Strength: 76
• Industry: REIT - Industrial
• EPS (TTM): 0.13
• Shares Outstanding: 295,756,380
• 10 Day Avg. Volume: 2,611,589
• 30 Day Avg. Volume: 3,073,218
• PEG Ratio: 1.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 36.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 22.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

LXP Industrial Trust has a robust financial structure with consistent revenue growth and strong liquidity. However, challenges in profitability and operational efficiency, along with bearish technical indicators, weigh down the score. A high P/E ratio raises overvaluation concerns, despite a strong dividend yield. Positive earnings call sentiment and strategic moves in target markets provide some support, but overall, the stock is positioned at a moderate score reflecting these mixed factors.

Positive Factors

Financial Valuation

The shares are attractively valued relative to peers, trading at mid-14x 2025E FFO/share, compared to industrial REITs as a group at 19x.

Market Expansion

LXP Industrial Trust has improved their exposure to higher growth markets while incurring no bottom-line dilution in the process.

Operational Performance

Occupancy increased to 93.6%, with rents on leasing activities expanding by roughly 40%, indicating strong demand.

Negative Factors

Earnings Performance

Earnings have been lower year-over-year due to the lack of lease updates on newly completed developments.

Leasing Challenges

Leasing challenges pertaining to speculative big-box vacant developments continue to impact sentiment, bottom-line earnings, and leverage.

Vacancy Issues

Three 1Msf+ developments that were placed in service currently still sit vacant, impacting leasing activity.

LXP Industrial Trust Business Overview & Revenue Model

Company Description

LXP Industrial Trust (LXP) is a real estate investment trust (REIT) focused on the acquisition, ownership, and management of high-quality industrial properties across the United States. LXP's portfolio primarily consists of distribution warehouses and manufacturing facilities strategically located in key logistics markets. The company aims to provide investors with stable and attractive returns through its diversified portfolio of industrial real estate assets.

How the Company Makes Money

LXP 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 in 2024, which is a significant advantage. However, the company faces challenges in profitability margins and operational efficiency, indicated by a negative EBITDA margin in 2024. Improving profitability and maintaining operational efficiency should be key focus areas going forward.

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.

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.

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.

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
65.10M	62.28M	-139.46M	-97.81M	-70.71M
	EBITDA
313.16M	245.81M	227.57M	85.44M	258.16M
	Net Income Common Stockholders
44.53M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 8.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXP, the sentiment is Neutral. The current price of 8.15 is above the 20-day moving average (MA) of 7.74, below the 50-day MA of 8.36, and below the 200-day MA of 8.86, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LXP.

LXP Industrial Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STAG	73 Outperform	$6.46B	25.58	7.15%	4.38%	8.81%	33.30%
IIPR	72 Outperform	$1.58B	10.11	8.20%	13.61%	-0.32%	-4.24%
FR	70 Outperform	$6.69B	24.31	10.18%	3.17%	9.18%	-7.05%
REXR	69 Neutral	$8.12B	27.87	3.35%	4.91%	18.02%	12.12%
TRNO	66 Neutral	$5.94B	30.07	5.59%	3.33%	18.24%	6.95%
LXP	64 Neutral	$2.41B	62.64	2.98%	6.50%	5.27%	58.15%
Sector *	60 Neutral	$2.79B	11.37	0.20%	8519.74%	6.07%	-14.95%

LXP Industrial Trust Corporate Events

LXP Industrial Trust Reports Strong Q1 2025 Results

LXP Industrial Trust reported its first quarter 2025 results, highlighting a net income of $17.3 million and an increase in same-store NOI by 5.2% compared to the same period in 2024. The company completed significant lease extensions and property transactions, including the sale of a warehouse for $35 million and the commencement of a 250,000 square foot warehouse redevelopment. These activities are part of LXP’s strategy to enhance occupancy and leverage its geographic footprint amid a challenging macroeconomic environment.

Spark’s Take on LXP Stock

According to Spark, TipRanks’ AI Analyst, LXP is a Neutral.

LXP Industrial Trust exhibits a robust financial structure with strong revenue growth and liquidity, contributing positively to its overall score. However, challenges in profitability and operational efficiency, along with bearish technical indicators, weigh down the score. A strong dividend yield and positive earnings call sentiment provide some support, but the high P/E ratio indicates overvaluation concerns. Corporate events further bolster the outlook with strategic moves enhancing market positioning.

To see Spark’s full report on LXP stock, click here.

LXP Industrial Trust Appoints New CFO Nathan Brunner

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.

LXP Industrial Trust Reports Strong 2024 Financial Performance

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.