LXP Industrial Trust Q3 FY2024 earnings call

• Will Eglin: Strong third quarter with same-store NOI growth of 5.4%, second-generation leasing volume of ~490,000 sq ft, lease-up of Columbus, Ohio development project, sold assets outside target markets for reinvestment in Sun Belt, swapped interest rates on debt, announced dividend increase. • Brendan Mullinix: Progress on leasing development portfolio, investment activity in Portland, sales of Cleveland and Chicago assets, acquisition of assets in Savannah, Atlanta, Houston, tenant exercised purchase option in Phoenix. • James Dudley: National industrial market vacancy rise, strong leasing outcomes in target markets, 2024 lease expirations addressed with cash flow increases, multi-tenanted facility in Nashville 99.3% leased excluding first-generation vacancy. • Beth Boulerice: Third quarter adjusted company FFO $0.16 per share, tightened 2024 adjusted company FFO to $0.63-$0.64 per share, tightened same-store NOI growth to 4.75%-5.25%, interest rate swaps reduced interest expense, net debt to adjusted EBITDA 6.1x.

Total gross revenues in the third quarter were approximately $86 million. Third quarter adjusted company FFO was $0.16 per diluted common share or approximately $47 million. Same-store NOI grew by 5.4%. Second-generation leasing volume was ~490,000 square feet with Base and Cash Base rental increases of ~38% and 22% respectively. Sold an asset in Cleveland for $29 million, 3 industrial facilities in Chicago for $137 million post-quarter end, acquired a $34 million industrial facility in Savannah, and expect to close on 3 additional assets in Houston and Atlanta. The aggregate investment in the 4 buildings is expected to be ~$158 million at an average initial cash cap rate of 6%.

• Tightened 2024 adjusted company FFO to a range of $0.63 to $0.64 per diluted common share. • Tightened same-store NOI growth expectations to a range of 4.75% to 5.25%. • Interest rate swap transactions mitigated impact on 2025 adjusted company FFO, now expect aggregate interest expense increase of ~$0.01 per share. • Focus on progressing to low end of target leverage range 5x to 6x through leasing, vacancy, and rent increases.

• Market conditions affecting timing of large leases and build-to-suit opportunities. • Uncertainty in transaction market impacting asset sales and acquisitions. • Potential delays in leasing large development projects like Ocala facility.

Q: Provide more info on Ocala full building user, Greenville/Spartanburg interest, and Indie properties timing.

A: Still working with tenant in Ocala, closer on transaction; closer to leasing Greenville facility, more activity in Indie; cautiously optimistic on progress.

Q: Update on Phoenix land purchase option, cap rate, and remaining 320 acres.

A: ~6% cash cap rate on Phoenix land, focused on build-to-suit inquiries at site with good activity but delays.

Q: Cap rates on subsequent to quarter end dispositions.

A: Selling cap rate on 4 assets was 6%.

Q: Lease expiration schedule in '25 and '26, leasing spread expectations.

A: 2 known move-outs in '25 and '26, 2025 renewals projected ~34% below market, 2026 ~24% below market.

Q: Noncore assets remaining, trust preferred securities.

A: Noncore assets in markets like Kansas City, Philadelphia, St. Louis; trust preferred securities have long maturity, good spread, covenant-light, value remains but some swapped to reduce cost.