LXP Industrial Trust Reports Mixed Financial Results, Revenue Growth Offset by Decline in Net Income

LXP Industrial Trust reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. Gross revenues for the third quarter reached $85.6 million, a slight increase from $85.4 million in the same period of 2023. For the nine months, gross revenues totaled $257.6 million, marginally up from $257.5 million year-over-year. Rental revenue also saw growth, with $84.5 million for the third quarter and $254.5 million for the nine months, compared to $83.8 million and $252.3 million, respectively, in 2023.

Despite the revenue increases, net income experienced a significant decline. For the third quarter, net income was $5.6 million, down from $12.9 million in 2023. Similarly, net income for the nine months fell to $9.9 million from $16.4 million in the prior year. The decrease in profitability was attributed to higher depreciation and amortization expenses, increased general and administrative costs, and a rise in interest expenses due to the issuance of new senior notes.

The company’s total assets decreased to $3.85 billion as of September 30, 2024, from $4.19 billion at the end of 2023. This decline was primarily driven by a reduction in cash and cash equivalents, which fell to $55.0 million from $199.2 million. Total liabilities also decreased to $1.73 billion from $1.93 billion, while total shareholders’ equity dropped to $2.10 billion from $2.23 billion.

Strategically, LXP Industrial Trust has focused on expanding its portfolio, owning approximately 118 consolidated properties across 17 states, with a 93.2% lease rate. The company completed several new facilities and engaged in land acquisitions, including a 59.1-acre parcel for a build-to-suit project. The firm also disposed of properties, recognizing gains on sales amounting to $19.4 million for the nine months ended September 30, 2024, compared to $15.0 million in the previous year.

In terms of financing, LXP Industrial Trust repaid its 4.40% Senior Notes due 2024 and maintained a $600 million unsecured credit facility with no outstanding borrowings. The company has also entered into interest rate swap agreements to manage its debt costs effectively.

Overall, while LXP Industrial Trust demonstrated resilience in revenue generation, its profitability faced challenges due to increased operational costs and interest expenses, alongside strategic moves to enhance its property portfolio.