LXP Industrial Q2 revenue rises on property acquisitions; suspends dividend

Overview

• US warehouse REIT's Q2 revenue edged up yr/yr, driven by acquisitions and rental growth

• Adjusted Company FFO per share rose 5% yr/yr to $0.84

• Company to be acquired for $5.2 bln by Brookfield and CPP Investments; common dividend suspended

Outlook

• LXP will suspend regular common share dividend payments, effective immediately, due to merger agreement

• Company will continue to pay Series C Preferred dividends as permitted under merger agreement

• LXP will no longer provide earnings guidance or affirm past guidance in light of proposed merger

Result Drivers

• ACQUISITIONS AND RENTAL GROWTH - Co said revenue increase was primarily due to property acquisitions and higher rental revenue

• LEASING ACTIVITY - Co completed 2.3 mln sq ft of new and extended second-generation leases, raising base and cash base rents by 43.1% and 26.2%, respectively, excluding two fixed-rate renewals

• PROPERTY ACQUISITION - Co acquired a 37-acre infill covered land investment in Phoenix, AZ for $103.2 mln at an initial cash yield of 15.7%

Company press release: ID:nGNX3KkCm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for LXP Industrial Trust is $61.00, about 0.2% above its July 28 closing price of $60.85

• The stock recently traded at 213 times the next 12-month earnings vs. a P/E of 292 three months ago

Reuters Recommended Reads

• July 28 - STAG Industrial Q2 core FFO per share rises 3.2%

• July 28 - WP Carey Q2 revenue beats estimates on higher leases; AFFO outlook raised

• July 28 - Extra Space Storage lifts 2026 FFO forecast on higher pricing, cost controls

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)