LXP Industrial Trust Announces Leasing Success, Major Acquisition, and Upward Revision to 2026 Earnings Guidance
LXP Industrial Trust (NYSE: LXP), a real estate investment trust (REIT) specializing in Class A warehouse and distribution properties, has issued a comprehensive business update that includes key leasing achievements, a significant acquisition in Phoenix, and an increase to its 2026 Adjusted Company Funds From Operations (FFO) guidance. The announcement comes ahead of LXP’s participation in REITweek, NAREIT’s 2026 Investor Conference.
Key Highlights
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Leasing Activity:
- In Q2 2026 to date, LXP signed 2.7 million square feet of new and renewal leases, achieving a 22% average cash base rental increase on second-generation leases.
- Total leasing volume for 2026 now stands at 4.6 million square feet.
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New Leases (First Generation):
- Glendale, AZ: 1.18 million sq. ft. leased, expiring 11/31.
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New Leases (Second Generation):
- Houston, TX: 248,240 sq. ft., expiring 11/33.
- Savannah, GA: 161,200 sq. ft., expiring 06/31.
- Total second-generation new leases: 409,440 sq. ft.
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Lease Extensions (Second Generation):
- Savannah, GA: 270,252 sq. ft., extended from 07/26 to 07/36.
- San Antonio, TX: 849,275 sq. ft., extended from 04/27 to 09/37.
- Total lease extensions: 1,119,527 sq. ft.
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Major Acquisition – Phoenix Covered Land Investment:
- LXP acquired a 37-acre infill redevelopment site in Phoenix’s South Airport submarket for \$103 million.
- The property features a 600,000 sq. ft. Class A office campus and two parking structures, currently 100% triple net leased to Phoenix Education Partners until March 31, 2031.
- Annual cash rent: \$16.1 million, with 2% annual escalations.
- Total rental payments over the remaining lease: \$82 million.
- Initial cash yield: 15.7%; GAAP yield: 14.4%.
- Post-lease expiration, LXP plans to redevelop the site into 400,000–450,000 sq. ft. of industrial facilities.
- Acquisition funded via 1031 exchange proceeds from sale of non-target market assets.
- This move expands LXP’s presence in Phoenix, a market benefiting from advanced manufacturing and data center investments.
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Upward Revision to 2026 Earnings Guidance:
- Net income attributable to common shareholders: Estimated at \$2.38–\$2.48 per diluted common share for the full year 2026.
- Adjusted Company FFO guidance: Revised upward to \$3.30–\$3.40 per diluted common share, from previous guidance of \$3.22–\$3.37.
- Same-Store NOI (Net Operating Income) Growth: Unchanged at 1.5%–2.5% for 2026.
- Investment in Development: Includes ongoing and planned projects, notably new developments in Columbus, Ohio.
- Non-target market dispositions: Anticipated volume of \$200 million in the second half of 2026.
- General & Administrative Expenses: Projected at \$39–\$41 million for the year.
Shareholder Implications & Price-Sensitive Information
- The upward revision of Adjusted Company FFO guidance is a clear positive for shareholders, reflecting robust leasing activity and successful acquisitions.
- The Phoenix acquisition, with its high initial yield, promises inexpensive land basis and attractive future development yields, positioning LXP for long-term growth in a strategic market.
- Disposition of non-target market assets and reinvestment in high-growth regions (Sunbelt and lower Midwest) aligns with LXP’s focused strategy and could further unlock value.
- The scale of leasing activity and rent increases signal strong tenant demand and operational performance, likely to positively impact share value.
- The guidance assumes successful execution of planned development and asset sales. Any disruptions or underperformance could affect financial results and share price.
Non-GAAP Measures Explained
LXP uses several non-GAAP financial measures, including Funds From Operations (FFO) and Adjusted Company FFO, to provide investors with a clearer picture of operational performance by excluding depreciation, amortization, gains/losses on sales, and impairment write-downs. These metrics are widely used by REITs and are considered helpful supplemental measures, though they should not replace GAAP measures when evaluating overall financial health or liquidity.
About LXP Industrial Trust
LXP Industrial Trust is a publicly traded REIT focused on Class A warehouse and distribution assets in 12 target markets across the Sunbelt and lower Midwest. The company pursues expansion via acquisitions, build-to-suit transactions, sale-leasebacks, development, and other strategic opportunities.
Contact Information
For investor or media inquiries, contact:
Heather Gentry, Executive Vice President of Investor Relations
Phone: (212) 692-7200
Email: [email protected]
Forward-Looking Statements Disclaimer
This article contains forward-looking statements based on LXP’s current expectations. Actual results may differ materially due to risks and uncertainties, including those detailed in LXP’s SEC filings. The company assumes no obligation to update any forward-looking statements. Investors are advised to review all relevant filings and disclosures before making investment decisions.
