LXP Industrial Trust Reports 3% Revenue Growth and Net Income Turnaround in Q1 2025

LXP Industrial Trust reported its financial results for the first quarter of 2025, revealing a total gross revenue of $88.9 million, an increase of 3% from $86.3 million in the same period last year. The company achieved a net income attributable to common shareholders of $17.3 million, compared to a net loss of $1.9 million in the first quarter of 2024. This turnaround in profitability was driven by a significant gain on the sale of real estate amounting to $24.6 million, alongside increased rental revenues from properties placed into service and acquisitions.

The company’s total assets decreased to $3.76 billion as of March 31, 2025, down from $3.84 billion at the end of 2024. This decline was primarily attributed to a reduction in real estate assets, which fell to $4.55 billion from $4.58 billion, and a decrease in cash and cash equivalents, which dropped to $70.9 million from $101.8 million. LXP Industrial Trust's total liabilities also decreased to $1.66 billion from $1.72 billion, reflecting a reduction in the term loan payable and other liabilities.

In terms of operational developments, LXP Industrial Trust maintained ownership interests in approximately 118 consolidated real estate properties across 16 states, with a total rentable space of about 57.3 million square feet, achieving a lease rate of approximately 93.3%. The company entered into lease extensions covering 1.1 million square feet, with the average fixed rent on extended leases increasing to $7.85 per square foot from $6.37 per square foot prior to extension. Additionally, the company commenced redevelopment of a 250,000 square foot warehouse facility in Richmond, Virginia, and disposed of one facility for a gross sale price of $35 million.

Looking ahead, LXP Industrial Trust anticipates continued growth in its target markets, focusing on leasing vacant development properties and capitalizing on lease rollovers. However, the company acknowledged that increased financing costs could negatively impact transaction activity and development starts. The company plans to fund its ongoing development projects, which are estimated to require approximately $41 million in additional costs, through cash flows from operations, borrowings under its unsecured revolving credit facility, and capital recycling proceeds. The company remains committed to maintaining its REIT status and meeting its dividend obligations to shareholders.