Q U A R T E R L Y S U P P L E M E N T A L I N F O R M A T I O N THIRD QUARTER 2023
TABLE OF CONTENTS September 30, 2023 PAGE PAGE SUMMARY / HIGHLIGHTS 3 TENANT DATA TOP 15 TENANTS 18 FINANCIAL DATA QUARTERLY LEASING SUMMARY 19 CONSOLIDATED BALANCE SHEETS 4 LEASE ROLLOVER SCHEDULE 20 CONSOLIDATED STATEMENTS OF OPERATIONS 5 PROPERTY LEASES AND VACANCIES 21 NON-GAAP FINANCIAL DATA 6 SELECT CREDIT METRICS SUMMARY 10 DEBT OTHER FINANCIAL DATA 11 MORTGAGES AND NOTES PAYABLE 30 DEBT MATURITY SCHEDULE 32 CAPITAL DEPLOYMENT DEBT COVENANTS 33 QUARTERLY INVESTMENTS / CAPITAL RECYCLING 12 DEVELOPMENT SUMMARY 13 COMPONENTS OF NET ASSET VALUE 34 CAPITAL EXPENDITURES AND LEASING COSTS 15 NON-GAAP MEASURES DEFINITIONS 35 PORTFOLIO DATA APPENDIX - OTHER PORTFOLIO 39 SAME STORE DATA 16 INDUSTRIAL PORTFOLIO INFORMATION 17 INVESTOR INFORMATION 40 This Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under LXP Industrial Trust (“LXP”)'s control which may cause actual results, performance or achievements of LXP to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in LXP's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (2) the outbreak of highly infectious or contagious diseases and natural disasters, (3) authorization by LXP's Board of Trustees of future dividend declarations, (4) LXP's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2023, (5) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields (6) the failure to continue to qualify as a real estate investment trust, (7) changes in general business and economic conditions, including the impact of any legislation, (8) competition, (9) inflation and increases in operating costs, (10) labor shortages, (11) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (12) defaults or non-renewals of significant tenant leases, (13) changes in financial markets and interest rates, (14) changes in accessibility of debt and equity capital markets, (15) future impairment charges, and (16) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, LXP undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that LXP's expectations will be realized. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document. All information is on a consolidated basis unless noted.
SUMMARY / HIGHLIGHTS September 30, 2023 Quarterly Highlights Portfolio Statistics - Net Income - $0.04 per diluted common share # of Properties: 115 - Adjusted Company FFO - $0.18 per diluted common share # of States: 19 - Completed 481,500 square feet of new and extended leases Square Footage: 53.9 million - Leased a speculative development project containing 304,884 square feet in the Ongoing Development Projects: 6 Greeville-Spartanburg, South Carolina market Stabilized Portfolio % Leased: 99.2% - Industrial Same-Store NOI increased 5.0% quarter to date 2023 compared to 2022 # of Leases: 133 - Disposed of two office properties for an aggregate gross sales price of $48.1 million - Completed the forward purchase of a newly-constructed, vacant warehouse/distribution facility 5.8 years containing 124,450 square feet in the Dallas, Texas market Weighted-Average Age: 9.9 years - Completed construction of the core and shell of one warehouse/distribution facility containing 138,672 square feet in the Central Florida market Developable Land:(1) 523 acres - Invested an aggregate of $36.5 million in development activities, including $23.8 million in six ongoing consolidated development projects - Net Debt to Adjusted EBITDA ratio was 6.2x at quarter end Footnote (1) Includes consolidated and non-consolidated developable land. Weighted-Average Lease Term (ABR): LXP is a real estate investment trust ("REIT") focused on single-tenant industrial real estate investments. LXP has been a publicly traded REIT since 1993 (NYSE: LXP). LXP's investment strategy is focused on the acquisition and development of high quality and well-located industrial warehouse and distribution facilities. Table of Contents 3
CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) September 30, 2023 December 31, 2022 Assets: Real estate, at cost 3,706,146$ 3,691,066$ Real estate - intangible assets 318,549 328,607 Land held for development 84,708 84,412 Investments in real estate under construction 380,446 361,924 Real estate, gross 4,489,849 4,466,009 Less: accumulated depreciation and amortization 893,031 800,470 Real estate, net 3,596,818 3,665,539 Assets held for sale 11,691 66,434 Right-of-use assets, net 20,390 23,986 Cash and cash equivalents 35,421 54,390 Restricted cash 211 116 Investments in non-consolidated entities 52,351 58,206 Deferred expenses, net 31,350 25,207 Investment in a sales-type lease, net 62,887 61,233 Rent receivable - current 6,636 3,030 Rent receivable - deferred 78,665 71,392 Other assets 32,584 24,314 Total assets 3,929,004$ 4,053,847$ Liabilities and Equity: Liabilities: Mortgages and notes payable, net 63,390$ 72,103$ Term loan payable, net 299,334 298,959 Senior notes payable, net 990,318 989,295 Trust preferred securities, net 127,769 127,694 Dividends payable 38,304 38,416 Liabilities held for sale 1,083 1,150 Operating lease liabilities 21,269 25,118 Accounts payable and other liabilities 57,296 74,261 Accrued interest payable 10,681 9,181 Deferred revenue - including below market leases, net 9,889 11,452 Prepaid rent 15,531 15,215 Total liabilities 1,634,864 1,662,844 Commitments and contingencies Equity: Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares: 94,016 94,016 29 29 Additional paid-in-capital 3,324,790 3,320,087 Accumulated distributions in excess of net income (1,177,212) (1,079,087) Accumulated other comprehensive income 14,362 17,689 Total shareholders' equity 2,255,985 2,352,734 Noncontrolling interests 38,155 38,269 Total equity 2,294,140 2,391,003 Total liabilities and equity 3,929,004$ 4,053,847$ Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 292,611,107 and 291,719,310 shares issued and outstanding in 2023 and 2022, respectively Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issues and outstanding Table of Contents 4
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) 2023 2022 2023 2022 Gross revenues: Rental revenue 83,844$ 78,274$ 252,326$ 234,749$ Other revenue 1,578 1,814 5,221 5,392 Total gross revenues 85,422 80,088 257,547 240,141 Expenses applicable to revenues: Depreciation and amortization (45,570) (44,946) (137,304) (134,645) Property operating (14,693) (13,961) (45,681) (42,279) General and administrative (8,614) (9,060) (26,866) (29,093) Non-operating income 394 242 731 353 Interest and amortization expense (10,965) (11,255) (32,502) (32,758) Debt satisfaction losses, net - (119) - (119) Impairment charges - (628) (16,490) (2,457) Change in allowance for credit loss (2) - 29 - Gains on sales of properties 7,154 24,841 15,033 52,951 Selling profit from sales-type lease - - - 9,314 Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities 13,126 25,202 14,497 61,408 Provision for income taxes (220) (271) (646) (951) Equity in earnings (losses) of non-consolidated entities (5) (1,340) 2,585 15,580 Net income 12,901 23,591 16,436 76,037 Less net income attributable to noncontrolling interests (237) (201) (654) (727) Net income attributable to LXP Industrial Trust shareholders 12,664 23,390 15,782 75,310 Dividends attributable to preferred shares - Series C (1,573) (1,573) (4,718) (4,718) Allocation to participating securities (52) (41) (186) (151) Net income attributable to common shareholders 11,039$ 21,776$ 10,878$ 70,441$ Net income attributable to common shareholders - per common share basic 0.04$ 0.08$ 0.04$ 0.25$ Weighted-average common shares outstanding - basic 290,291,609 277,535,717 290,187,124 281,559,058 Net income attributable to common shareholders - per common share diluted 0.04$ 0.08$ 0.04$ 0.25$ Weighted-average common shares outstanding - diluted 291,253,005 278,521,946 291,148,809 284,609,950 Three months ending September 30, Nine months ending September 30, Table of Contents 5
NON-GAAP FINANCIAL DATA (Unaudited and in thousands, except share and per share data) 2023 2022 2023 2022 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders 11,039$ 21,776$ 10,878$ 70,441$ Adjustments: Depreciation and amortization - real estate 44,596 44,227 134,484 132,600 Impairment charges - real estate, including our share of non-consolidated entities - 1,256 16,490 7,299 Noncontrolling interest - OP units 15 11 (63) 147 Amortization of leasing commissions 974 719 2,820 2,045 Joint venture and noncontrolling interest adjustment 1,839 2,612 6,168 8,585 Gain on sales of properties, including our share of non-consolidated entities (8,164) (24,842) (20,818) (75,803) FFO available to common shareholders and unitholders - basic 50,299 45,759 149,959 145,314 Preferred dividends 1,573 1,573 4,718 4,718 Amount allocated to participating securities 52 41 186 151 FFO available to common equityholders and unitholders - diluted 51,924 47,373 154,863 150,183 Selling profit from sales-type lease(1) - - - (9,314) Allowance for credit losses 2 - (29) - Debt satisfaction losses, net, including our share of non-consolidated entities - 119 - 1,614 Non-recurring costs(2) - 640 4 2,629 Noncontrolling interest adjustments - - 1 - Adjusted Company FFO available to all equityholders and unitholders - diluted 51,926$ 48,132$ 154,839$ 145,112$ Per Common Share and Unit Amounts: Basic: FFO 0.17$ 0.16$ 0.52$ 0.51$ Diluted: FFO 0.18$ 0.17$ 0.52$ 0.52$ Adjusted Company FFO 0.18$ 0.17$ 0.52$ 0.50$ Weighted-Average Common Shares: Basic: Weighted-average common shares outstanding - basic EPS 290,291,609 277,535,717 290,187,124 281,559,058 Operating partnership units (3) 825,342 846,858 828,653 859,226 Weighted-average common shares outstanding - basic FFO 291,116,951 278,382,575 291,015,777 282,418,284 Diluted: Weighted-average common shares outstanding - diluted EPS 291,253,005 278,521,946 291,148,809 284,609,950 Unvested share-based payments awards - - - 23,175 Preferred shares - Series C 4,710,570 4,710,570 4,710,570 4,710,570 Weighted-average common shares outstanding - diluted FFO 295,963,575 283,232,516 295,859,379 289,343,695 (1) Gain recognized upon exercise of tenant's purchase option in the lease. (2) Includes costs related to transactions, strategic alternatives and shareholder activism. (3) Includes OP units other than OP units held by us. Three months ending September 30, Nine months ending September 30, Table of Contents 6
NON-GAAP FINANCIAL DATA (CONTINUED) (Unaudited and in thousands) 2023 2022 2023 2022 Adjusted Company FFO available to all equityholders and unitholders - diluted 51,926$ 48,132$ 154,839$ 145,112$ FUNDS AVAILABLE FOR DISTRIBUTION Adjustments: Straight-line adjustments (2,213) (2,078) (7,938) (8,893) Lease incentives 109 128 314 391 Amortization of above/below market leases (449) (455) (1,347) (1,416) Sales-type lease non-cash income (558) - (1,625) - Non-cash interest 820 820 2,459 2,459 Non-cash charges, net 2,243 1,941 6,739 5,637 Capitalized interest and internal costs (3,255) (2,414) (9,160) (5,465) Second generation tenant improvements (1,171) (499) (1,637) (5,016) Second generation lease costs (170) (1,380) (1,733) (2,138) Joint venture and non-controlling interests adjustment (204) 111 (671) (108) Company Funds Available for Distribution 47,078$ 44,306$ 140,240$ 130,563$ Three months ending September 30, Nine months ending September 30, Table of Contents 7
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Net Operating Income ("NOI"): 2023 2022 2023 2022 Net income 12,901$ 23,591$ 16,436$ 76,037$ Interest and amortization expense 10,965 11,255 32,502 32,758 Provision for income taxes 220 271 646 951 Depreciation and amortization 45,570 44,946 137,304 134,645 General and administrative 8,614 9,060 26,866 29,093 Transaction costs - 1 4 56 Non-operating/advisory fee income (1,514) (1,630) (4,059) (4,616) Gains on sales of properties (7,154) (24,841) (15,033) (52,951) Impairment charges - 628 16,490 2,457 Selling profit from sales-type lease - - - (9,314) Debt satisfaction losses, net - 119 - 119 Equity in (earnings) losses of non-consolidated entities 5 1,340 (2,585) (15,580) Lease termination income, net - (238) - (238) Straight-line adjustments (2,213) (2,078) (7,938) (8,893) Lease incentives 109 128 314 391 Amortization of above/below market leases (449) (455) (1,347) (1,416) Sales-type lease adjustments (556) 13 (1,654) - NOI 66,498 62,110 197,946 183,499 Less NOI: Acquisitions, development and dispositions (5,155) (3,538) (23,146) (15,880) Same-Store NOI 61,343$ 58,572$ 174,800$ 167,619$ Nine months ending September 30,Three months ending September 30, Table of Contents 8
NON-GAAP FINANCIAL DATA (CONTINUED) ($000) Adjusted EBITDA: 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Trailing 12 Months Net income attributable to LXP Industrial Trust shareholders 12,664$ (8,048)$ 11,166$ 38,473$ 54,255$ Interest and amortization expense 10,965 10,144 11,393 12,659 45,161 Provision for income taxes 220 210 216 151 797 Depreciation and amortization 45,570 45,993 45,741 45,922 183,226 Straight-line adjustments (2,213) (2,638) (3,087) (2,519) (10,457) Sales-type lease non-cash income (558) (541) (526) (342) (1,967) Lease incentives 109 109 96 127 441 Amortization of above/below market leases (449) (449) (449) (449) (1,796) Gains on sales of properties (7,154) - (7,879) (6,143) (21,176) Impairment charges - 12,967 3,523 580 17,070 Selling profit from sales-type leases - - - (37,745) (37,745) Sales-type lease adjustments (2) (110) 83 4,212 4,183 Non-cash charges, net 2,243 2,249 2,247 1,846 8,585 Pro-rata share adjustments: Non-consolidated entities adjustment 2,652 3,562 (566) 2,983 8,631 Noncontrolling interests adjustment (27) (8) (46) 1,480 1,399 Adjusted EBITDA 64,020$ 63,440$ 61,912$ 61,235$ 250,607$ Table of Contents 9
SELECT CREDIT METRICS SUMMARY (1) 12/31/2020 12/31/2021 12/31/2022 9/30/2023 Adjusted Company FFO Payout Ratio 55.6% 56.7% 72.4% 72.1% Unencumbered Assets $3.8 billion $4.2 billion $4.5 billion $4.4 billion Unencumbered NOI 89.3% 92.6% 93.4% 93.7% (Debt + Preferred) / Gross Assets 32.5% 33.4% 32.1% 32.6% Debt/Gross Assets 30.4% 31.4% 30.1% 30.6% Secured Debt / Gross Assets 3.1% 1.7% 1.5% 1.3% Unsecured Debt / Unencumbered Assets 32.1% 33.5% 31.3% 32.0% Net Debt / Adjusted EBITDA (2) 4.8x 5.5x 6.4x 6.2x (Net Debt + Preferred) / Adjusted EBITDA (2) 5.1x 5.8x 6.9x 6.5x Credit Facility Availability (3) $600.0 million $600.0 million $600.0 million $600.0 million Footnotes (1) LXP believes these credit metrics provide investors with additional information to evaluate its liquidity and performance. (2) Includes prorata share of non-consolidated assets. Adjusted EBITDA is for the last 12 months. (3) Subject to covenant compliance. Table of Contents 10
OTHER FINANCIAL DATA Future Rent Estimates for Current Leases Year Base Rent (1) Cash Base Rent (1) Difference 2023 - remaining 69,584$ 67,774$ (1,810)$ 2024 271,366 265,485 (5,881) Balance Sheet Other assets 32,584$ The components of other assets are: Deposits 9,886$ Equipment 221 Prepaids 3,704 Other receivables 1,424 Deferred lease incentives 3,446 Derivative asset 13,844 Deferred asset 59 Accounts payable and other liabilities 57,296$ The components of accounts payable and other liabilities are: Accounts payable and accrued expenses 29,836$ Development, CIP and other accruals 20,866 Taxes 287 Deferred lease costs 2,650 Deposits 3,551 Transaction costs 106 Footnote (1) ($000) 9/30/2023 Amounts assume (i) lease terms for non-cancellable periods only, (ii) no new or renegotiated leases are entered into after 9/30/2023, and (iii) no properties are sold or acquired after 9/30/2023. Includes future rent estimates for leased development projects. Table of Contents 11
QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY ACQUISITION TRANSACTIONS: Property Type Square Feet Initial Cost Basis ($000) Month Stabilized Primary Lease Expiration Percent Leased at Acquisition Consolidated 1 Industrial (1) TX 124,450 $ 15,018 N/A N/A 0% 1 124,450 $ 15,018 CAPITAL RECYCLING: Property Type Gross Disposition Price ($000) Annualized Net Income ($000) (2) Annualized NOI ($000)(2) Month of Disposition % Leased Gross Disposition Price PSF Consolidated 1 Whippany, NJ Office 21,820$ 2,021$ 1,820$ August 100% $ 176.35 2 Philadelphia, PA Office 26,250 5,449 5,332 September 97% 86.34 2 TOTAL CONSOLIDATED PROPERTY DISPOSITIONS $ 48,070 $ 7,470 $ 7,152 Non - Consolidated (3) 1 Allen, TX Office 30,100$ 1,644$ 3,512$ August 100% $ 102.84 1 TOTAL NON-CONSOLIDATED PROPERTY DISPOSITIONS $ 30,100 $ 1,644 $ 3,512 Footnotes (1) Completed forward purchase. (2) Generally, quarterly period prior to sale, annualized. (3) LXP owns 20%. The joint venture satisfied $29.4 million of non-recourse debt in connection with the sale. Location 9/30/2023 Dallas Market TOTAL PROPERTY INVESTMENTS Table of Contents 12
DEVELOPMENT SUMMARY ONGOING DEVELOPMENT NOT IN SERVICE: GAAP LXP Actual/Estimated Estimated Investment Balance Amount Funded Base Building % Leased Estimated Project # of Estimated Project Cost as of 9/30/2023 as of 9/30/2023 Completion as of Placed in Service (% owned) Buildings Market Sq. Ft. ($000)(1) ($000)(2) ($000)(3) Date 9/30/2023 Date Consolidated Development Projects Leased 1 The Cubes at Etna East (95%) 1 Columbus, OH 1,074,840 76,600$ 64,101$ 67,927$ 3Q 2022 100% 4Q 2023 (4) 2 Smith Farms (90%) 1 Greenville/Spartanburg, SC 304,884 25,000 21,535 19,745 2Q 2023 100% 4Q 2023 3 Cotton 303 (93%) 1 Phoenix, AZ 488,400 55,300 42,814 38,814 4Q 2023 100% 1Q 2024 3 Subtotal 3 1,868,124 156,900$ 128,450$ 126,486$ Development Projects Available for Lease 1 Ocala (80%) 1 Central Florida 1,085,280 83,900$ 79,034$ 69,317$ 1Q 2023 - - 2 Mt. Comfort (80%) 1 Indianapolis, IN 1,053,360 66,100 63,871 58,071 1Q 2023 - - Smith Farms (90%) 1 Greenville/Spartanburg, SC 1,091,888 76,600 71,644 65,595 2Q 2023 - - 3 South Shore (100%) 2 Central Florida 270,885 42,500 37,447 34,808 2Q 2023 - 3Q 2023 (5) - 3 Subtotal 5 3,501,413 269,100$ 251,996$ 227,791$ 6 Total Consolidated Development Projects 8 5,369,537 426,000$ 380,446$ 354,277$ Non-Consolidated Development Project 1 ETNA Building D (90%)(6) 1 Columbus, OH 250,020 29,200$ N/A 8,811$ 1Q 2024 - - 1 Total Non-Consolidated Development Projects 1 250,020 29,200$ DEVELOPMENT PLACED IN SERVICE: Initial % Leased Placed in Investment as of Project (% Owned) Service Market Sq. Ft. ($000)(2) 9/30/2023 1 Cotton 303 Building 1 (93%) 1Q 2023 Phoenix, AZ 392,278 37,173$ 100% 2 Smith Farms Building 1 (90%) 4Q 2022 Greenville/Spartanburg, SC 797,936 64,067 100% 3 Fairburn (100%) 4Q 2021 Atlanta, GA 907,675 47,568 100% 4 KeHE Distributors (100%) 4Q 2021 Phoenix, AZ 468,182 61,490 100% 5 Rickenbacker (100%) 1Q 2021 Columbus, OH 320,190 19,531 100% 5 Total Development Placed In Service 2,886,261 229,829$ Footnotes (1) Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any. (2) Excludes leasing costs. (3) Excludes noncontrolling interests' share. (4) Subsequent to 9/30/2023, property placed into service. (5) Subsequent to 9/30/2023, 57,690 square feet leased for a five-year term. (6) 9/30/2023 The ETNA Park 70 joint venture commenced development of a 250,020 square foot speculative development project in the second quarter 2023. GAAP Investment Balance as of 9/30/2023 is included in joint venture balance located in chart on page 14. A wholly-owned subsidiary of LXP entered into an agreement to fund all of the construction costs to complete the Etna Park 70 industrial development project. The subsidiary intends to purchase the property from ETNA Park 70 when the land parcel underlying the construction project is subdivided. Table of Contents 13
DEVELOPMENT SUMMARY (CONTINUED) LAND HELD FOR INDUSTRIAL DEVELOPMENT: GAAP LXP Investment Balance Amount Funded Project 9/30/2023 9/30/2023 (% owned) Market ($000) ($000)(1) Consolidated 1 Reems & Olive (95.5%) Phoenix, AZ 77,653$ 74,913$ 2 Mt. Comfort Phase II (80%) Indianapolis, IN 5,323 4,279 3 ATL Fairburn (100%) Atlanta, GA 1,732 1,740 3 Total Consolidated Land Projects 84,708$ 80,932$ GAAP LXP Investment Balance Amount Funded Project 9/30/2023 9/30/2023 (% owned) Market ($000) ($000)(1) Non - Consolidated 1 ETNA Park 70 (90%) Columbus, OH 13,297$ 13,775$ 2 ETNA Park 70 East (90%) Columbus, OH 2,122 2,501 2 Total Non-Consolidated Land Projects 15,419$ 16,276$ Footnotes (1) Excludes noncontrolling interests' share. 73 52 21 9/30/2023 Approx. Developable Acres 320 116 Approx. Developable Acres 450 14 Table of Contents 14
CAPITAL EXPENDITURES AND LEASING COSTS (1) ($000) 2023 2022 First Generation Costs Tenant Improvements 3,065$ 4,491$ Leasing Costs 300 1,879 Base Building 943 2,470 Total First Generation Costs 4,308$ 8,840$ Second Generation Costs Tenant Improvements Industrial 1,637$ 5,016$ Other - - Total Second Generation Tenant Improvements 1,637$ 5,016$ Leasing Costs Industrial 1,733$ 2,015$ Other - 123 Total Second Generation Leasing Costs 1,733$ 2,138$ Building Improvements Industrial 6,030$ 13,238$ Other - - Total Second Generation Building Improvements 6,030$ 13,238$ Total Second Generation Costs 9,400$ 20,392$ Total Capital Expenditures and Leasing Costs 13,708$ 29,232$ Footnote (1) Consolidated costs on a cash basis. Amounts exclude development projects, capitalized interest and internal costs, if any. Leasing costs includes payments for lease incentives, if any. Nine months ending September 30, 9/30/2023 Table of Contents 15
SAME STORE DATA ($000) Same-Store NOI Same-Store NOI by Components 2023 2022 2023 2022 2023 2022 Total Cash Base Rent 61,738$ 59,637$ 58,352$ 56,272$ 3,386$ 3,365$ Tenant Reimbursements 12,200 10,000 12,192 9,996 8 4 Property Operating Expenses (12,595) (11,065) (12,500) (10,995) (95) (70) Same-Store NOI 61,343$ 58,572$ 58,044$ 55,273$ 3,299$ 3,299$ Change in Same-Store NOI 4.7% 5.0% 0.0% 2023 2022 2023 2022 2023 2022 Total Cash Base Rent 176,270$ 169,634$ 166,113$ 159,539$ 10,157$ 10,095$ Tenant Reimbursements 33,852 28,566 33,829 28,555 23 11 Property Operating Expenses (35,322) (30,581) (35,047) (30,372) (275) (209) Same-Store NOI 174,800$ 167,619$ 164,895$ 157,722$ 9,905$ 9,897$ Change in Same-Store NOI 4.3% 4.5% 0.1% Same-Store # of Properties - QTR 109 109 104 104 5 5 Same-Store # of Properties - YTD 102 102 97 97 5 5 Same-Store Percent Leased(1) - QTR 99.2% 99.3% 99.1% 99.3% 100.0% 100.0% Same-Store Percent Leased(1) - YTD 99.5% 99.8% 99.5% 99.8% 100.0% 100.0% Footnotes (1) At 9/30/2023. 9/30/2023 QUARTER YEAR TO DATE Consolidated Industrial OtherConsolidated Three months ended September 30, Three months ended September 30, Three months ended September 30, Other Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, Industrial Table of Contents 16
INDUSTRIAL PORTFOLIO INFORMATION Markets (1) ABR % as of 9/30/2023 Industries ABR % as of 9/30/2023 Phoenix, AZ 12.2% Consumer Products 23.2% Greenville/Spartanburg, SC 9.4% Transportation/Logistics 19.8% Atlanta, GA 8.6% E-Commerce 14.8% Memphis, TN 8.0% Automotive 11.9% Dallas/Ft. Worth, TX 5.7% Construction/Materials 10.7% Cincinnati/Dayton, OH 5.7% Food 9.7% Indianapolis, IN 5.5% Apparel 2.3% Houston, TX 5.4% Technology 2.2% Nashville, TN 3.8% Retail Department 2.1% Chicago, IL 3.5% Specialty 1.8% Central Florida 3.3% Other 1.5% Columbus, OH 3.2% Total Industrial Portfolio Concentration (2) 100.0% Savannah, GA 2.7% Jackson, MS 2.5% St. Louis, MO 2.3% # of Properties 110 DC/Baltimore, MD 2.3% Square Feet 52,868,950 Charlotte, NC 2.2% % Investment Grade (3) 49.5% New York/New Jersey 2.2% % of ABR(4) 94.9% Cleveland, OH 2.0% % Leased(5) 99.2% Champaign-Urbana, IL 1.6% Weighted-Average Age (Years)(6) 9.4 Total Industrial Portfolio Concentration (2) 92.1% Weighted-Average ABR per SF(7) $4.56 Footnotes Weighted-Average Lease Term (Years)(8) 6.0 (1) Based on CoStar.com inventory data. % with Fixed Escalation(9) 98.6% (2) Total shown may differ from detailed amounts due to rounding. Average Annual Rent Escalation(9) 2.6% (3) Percent of ABR. Credit ratings based upon either tenant, guarantor or Average Building Size (SF) 489,527 parent/ultimate parent. Average Clear Height (Feet)(10) 33.0 (4) Based on ABR for consolidated properties owned. % Top 25 Markets(11) 77.1% (5) Percentage is for Stabilized Portfolio. % Top 50 Markets(11) 92.0% (6) Weighting based on square footage, excluding land parcels. Mortgage Debt ($000) $62,202 (7) Excludes land assets and all vacant square footage. (8) Weighting based on ABR. Based on ABR for single-tenant leases owned (properties 50% leased to a single tenant). (9) Average Annual Rent Escalation based on next rent step percentages. Excludes escalating leases in last year after last escalation. (10) Based on internal and external sources. (11) Percent of ABR based upon CoStar.com inventory data. 9/30/2023 Additional Information Table of Contents 17
TOP 15 TENANTS Tenants (1) Property Type Lease Expirations Number of Leases Sq. Ft. Leased Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3) ABR as of 9/30/2023 ($000) ABR % as of 9/30/2023 ($000) (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.3% 18,489$ 7.0% Nissan Industrial 2027 2 2,971,000 5.6% 13,082 4.9% Kellogg Industrial 2027-2029 3 2,801,916 5.3% 9,622 3.6% Wal-Mart Industrial 2024-2031 3 2,351,917 4.4% 8,842 3.3% GXO Logistics Industrial 2024-2028 3 1,697,475 3.2% 7,484 2.8% Xerox Office 2023 1 202,000 0.4% 7,070 2.7% Watco Industrial 2038 1 132,449 0.2% 6,445 2.4% Fedex Industrial 2028 2 292,021 0.5% 6,263 2.4% Owens Corning Industrial 2025-2027 3 863,242 1.6% 5,888 2.2% Mars Wrigley Industrial 2025 1 604,852 1.1% 5,473 2.1% Undisclosed (5) Industrial 2034 1 1,318,680 2.5% 5,315 2.0% Aligned Data Centers (6) Industrial 2042 1 - 0.0% 5,228 2.0% Olam Group Limited Industrial 2024 & 2037 2 1,196,614 2.2% 5,103 1.9% Georgia-Pacific Industrial 2028 & 2031 2 1,283,102 2.4% 4,989 1.9% Asics Industrial 2030 1 855,878 1.6% 4,541 1.7% 32 20,435,877 38.3% 113,834$ 42.8% Footnotes (1) Tenant, guarantor or parent. (2) Total shown may differ from detailed amounts due to rounding. (3) Excludes vacant square feet. (4) Based on ABR for consolidated properties owned. (5) Lease restricts certain disclosures. (6) Industrial development leased land, which is included in industrial portfolio. 9/30/2023 Table of Contents 18
QUARTERLY LEASING SUMMARY NEW LEASES - FIRST GENERATION(1) Prior Term Lease Expiration Date Sq. Ft. New Base Rent Per Annum ($000)(2) New Cash Base Rent Per Annum ($000)(2) Industrial 1 Greer SC N/A 02/2029 304,884 1,796$ 1,825$ 1 TOTAL NEW LEASES - FIRST GENERATION 304,884 1,796$ 1,825$ LEASE EXTENSIONS - SECOND GENERATION Prior Term Lease Expiration Date Sq. Ft. New Base Rent Per Annum ($000)(2) Prior Base Rent Per Annum ($000)(3) New Cash Base Rent Per Annum ($000)(2) Prior Cash Base Rent Per Annum ($000)(3) NEW LEASE Industrial 1 Antioch(4) TN N/A 05/2028 73,500 149$ N/A 147$ N/A 1 TOTAL NEW LEASES - SECOND GENERATION 73,500 149 - 147 - Industrial 1 Duncan(5) SC 01/2024 01/2029 408,000 2,527$ 2,001$ 2,407$ 2,076$ 1 TOTAL EXTENDED LEASES - SECOND GENERATION 408,000 2,527$ 2,001$ 2,407$ 2,076$ 2 TOTAL NEW AND EXTENDED LEASES - SECOND GENERATION 481,500 2,676$ 2,001$ 2,554$ 2,076$ NEW VACANCY(6) Type Prior Lease Expiration Date Sq. Ft. 2023 Base Rent ($000) 2023 Cash Rent ($000) Industrial 1 Pasadena TX Industrial 08/2023 257,835 1,231$ 1,294$ 1 TOTAL NEW VACANCY 257,835 1,231$ 1,294$ Footnotes (1) No prior leases. This tenant leased first generation space in our development project. (2) Assumes 12 months rent from the later of 10/1/2023 or lease commencement/extension, excluding free rent periods as applicable. (3) Rent from prior tenants for square feet leased. (4) (5) (6) Excludes multi-tenant properties, disposed properties and non-consolidated investments. During the second quarter, the tenant executed its renewal option to extend its lease term for three years but a fair value rent could not be determinated as of June 30, 2023. During the third quarter, the lease was amended for a five-year renewal term until January 2029 instead of a three-year renewal term. Location 9/30/2023 Location Location An existing tenant at the property signed an amendment expanding into additional 73,500 square feet that had been vacant for more than one year. The Antioch facility is now fully occupied. Table of Contents 19
LEASE ROLLOVER SCHEDULE - INDUSTRIAL ($000) Year Number of Leases Expiring ABR as of 9/30/2023 Percent of ABR as of 9/30/2023 Percent of ABR as of 9/30/2022 2023 - remaining 0 -$ 0.0% 0.9% 2024 18 19,576 7.8% 11.0% 2025 13 18,079 7.2% 7.4% 2026 24 31,533 12.5% 11.6% 2027 14 35,937 14.2% 15.2% 2028 8 18,019 7.1% 6.4% 2029 12 28,072 11.1% 9.6% 2030 10 28,738 11.4% 10.9% 2031 12 22,108 8.8% 7.9% 2032 3 5,329 2.1% 3.2% Thereafter 14 44,886 17.8% 14.7% Total (1) 128 252,277$ 100.0% Footnotes (1) Total shown may differ from detailed amounts due to rounding. 9/30/2023 Table of Contents 20
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES SINGLE TENANT WAREHOUSE/DISTRIBUTION 2024 1/31/2024 Memphis, TN 6495 Polk Ln. Olive Branch MS -- 118,211 495 515 3/31/2024 Indianapolis, IN 4600 Albert S White Dr. Whitestown IN 3 53,240 264 306 Columbus, OH 2155 Rohr Rd. Lockbourne OH -- 320,190 1,853 1,901 4/30/2024 Nashville, TN 6050 Dana Way Antioch TN -- 11,238 150 150 5/31/2024 Atlanta, GA 7225 Goodson Rd. Union City GA -- 370,000 1,442 1,521 6/30/2024 Cincinnati/Dayton, OH 575-599 Gateway Blvd. Monroe OH -- 194,936 1,024 1,062 7/31/2024 Greenville/Spartanburg, SC 5795 North Blackstock Rd. Spartanburg SC 4 341,660 1,672 1,688 Greenville/Spartanburg, SC 231 Apple Valley Rd. Duncan SC -- 75,320 370 370 8/31/2024 Houston, TX 9701 New Decade Dr. Pasadena TX -- 102,863 530 567 Atlanta, GA 41 Busch Dr. Cartersville GA -- 119,295 614 614 Memphis, TN 11555 Silo Dr. Olive Branch MS 5 927,742 3,079 3,053 9/30/2024 Memphis, TN 3820 Micro Dr. Millington TN -- 701,819 1,985 2,014 10/31/2024 Dallas/Ft. Worth, TX 2115 East Belt Line Rd. Carrollton TX -- 58,202 230 262 Dallas/Ft. Worth, TX 17505 Interstate Hwy. 35W Northlake TX 6 500,556 2,269 2,293 11/30/2024 DC/Baltimore, MD 150 Mercury Way Winchester VA -- 324,535 1,716 1,738 12/31/2024 Indianapolis, IN 4600 Albert S White Dr. Whitestown IN -- 95,832 469 455 Chicago, IL 3686 South Central Ave. Rockford IL -- 93,000 407 407 Chicago, IL 749 Southrock Dr. Rockford IL -- 150,000 638 660 2025 3/31/2025 Atlanta, GA 95 International Pkwy. Adairsville GA -- 124,251 653 675 4/30/2025 Houston, TX 10565 Red Bluff Rd. Pasadena TX -- 248,240 1,237 1,262 5/31/2025 Atlanta, GA 7875 White Rd. SW Austell GA -- 604,852 5,323 5,473 6/30/2025 Savannah, GA 1319 Dean Forest Rd. Savannah GA -- 355,527 1,818 1,873 Table of Contents 21
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES WAREHOUSE/DISTRIBUTION 2025 7/31/2025 Indianapolis, IN 5352 Performance Way Whitestown IN -- 380,000 1,278 1,341 Cleveland, OH 7005 Cochran Rd. Glenwillow OH -- 458,000 2,061 2,164 8/31/2025 Indianapolis, IN 4900 Albert S White Dr. Whitestown IN -- 85,232 436 445 Savannah, GA 1315 Dean Forest Rd. Savannah GA -- 88,503 525 556 9/30/2025 Greenville/Spartanburg, SC 7870 Reidville Rd. Greer SC -- 396,073 1,666 1,691 Atlanta, GA 95 International Pkwy. Adairsville GA -- 100,960 531 531 Nashville, TN 6050 Dana Way Antioch TN -- 117,600 410 435 12/31/2025 Phoenix, AZ 4445 N. 169th Ave. Goodyear AZ -- 160,140 1,007 1,028 Minneapolis/St Paul, MN 1700 47th Ave. North Minneapolis MN -- 18,620 605 605 2026 1/31/2026 Greenville/Spartanburg, SC 231 Apple Valley Rd. Duncan SC -- 120,680 598 632 2/28/2026 Central Florida 3102 Queen Palm Dr. Tampa FL -- 229,605 1,693 1,739 3/31/2026 Central Florida 2455 Premier Row Orlando FL -- 205,016 786 508 Lewisburg, TN 633 Garrett Pkwy. Lewisburg TN -- 310,000 1,287 1,314 4/30/2026 Phoenix, AZ 16811 W. Commerce Dr. Goodyear AZ -- 540,349 2,444 2,398 6/30/2026 Greenville/Spartanburg, SC 425 Apple Valley Rd. Duncan SC -- 163,680 752 769 Columbus, OH 351 Chamber Dr. Chillicothe OH -- 136,495 618 618 7/31/2026 Columbus, OH 1860 Walcutt Rd. Columbus OH -- 97,934 501 494 Savannah, GA 1004 Trade Center Pkwy. Savannah GA -- 270,252 1,433 1,443 8/31/2026 Savannah, GA 1004 Trade Center Pkwy. Savannah GA -- 149,415 821 841 9/30/2026 Greenville/Spartanburg, SC 425 Apple Valley Rd. Duncan SC -- 163,680 669 705 St. Louis, MO 3931 Lakeview Corporate Dr. Edwardsville IL -- 769,500 2,696 2,756 Nashville, TN 6050 Dana Way Antioch TN -- 67,200 394 393 Phoenix, AZ 9494 W. Buckeye Rd. Tolleson AZ -- 186,336 1,109 1,108 Dallas/Ft. Worth, TX 3737 Duncanville Rd. Dallas TX -- 510,400 2,365 2,526 Table of Contents 22
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES WAREHOUSE/DISTRIBUTION 2026 10/31/2026 Greenville/Spartanburg, SC 235 Apple Valley Rd. Duncan SC -- 177,320 962 966 Charlotte, NC 2203 Sherrill Dr. Statesville NC -- 639,800 2,796 2,851 Cleveland, OH 10345 Philipp Pkwy. Streetsboro OH -- 649,250 2,883 2,890 11/30/2026 Erwin, NY 736 Addison Rd. Erwin NY -- 408,000 1,549 1,556 Philadelphia, PA 250 Rittenhouse Cir. Bristol PA -- 241,977 1,146 1,277 12/31/2026 Houston, TX 4600 Underwood Rd. Deer Park TX -- 402,648 1,507 1,772 Indianapolis, IN 180 Bob Glidden Blvd. Whiteland IN -- 179,530 787 801 Indianapolis, IN 76 Bob Glidden Blvd. Whiteland IN -- 168,480 787 770 2027 1/31/2027 Kansas City, MO 27200 West 157th St. New Century KS -- 446,500 1,240 1,182 2/28/2027 Central Florida 5275 Drane Field Rd. Lakeland FL -- 68,420 388 402 Jackson, MS 554 Nissan Pkwy. Canton MS -- 1,466,000 6,200 6,423 3/31/2027 Greenville/Spartanburg, SC 417 Apple Valley Rd. Duncan SC -- 195,000 1,052 1,052 4/30/2027 Nashville, TN 200 Sam Griffin Rd. Smyrna TN -- 1,505,000 6,560 6,659 San Antonio, TX 16407 Applewhite Rd. San Antonio TX -- 849,275 2,994 3,075 7/31/2027 Savannah, GA 335 Morgan Lakes Industrial Blvd. Pooler GA -- 499,500 2,080 2,109 8/31/2027 Cincinnati/Dayton, OH 600 Gateway Blvd. Monroe OH -- 994,013 3,945 3,526 Columbus, OH 200 Arrowhead Dr. Hebron OH -- 400,522 1,449 1,465 9/30/2027 Memphis, TN 1550 Hwy 302 Byhalia MS -- 615,600 2,439 2,553 10/31/2027 Central Florida 5275 Drane Field Rd. Lakeland FL -- 36,274 266 254 Jackson, TN 201 James Lawrence Rd. Jackson TN -- 1,062,055 3,944 3,973 12/31/2027 Phoenix, AZ 1515 South 91st Ave. Phoenix AZ -- 334,222 2,844 2,757 2028 1/31/2028 Atlanta, GA 490 Westridge Pkwy. McDonough GA -- 1,121,120 3,737 3,823 3/31/2028 New York/New Jersey 29-01 Borden Ave./29-10 Hunters Point Ave. Long Island City NY -- 140,330 5,135 5,512 Central Florida 3775 Fancy Farms Rd. Plant City FL -- 330,176 1,955 1,865 Table of Contents 23
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES WAREHOUSE/DISTRIBUTION 2028 5/31/2028 Memphis, TN 6495 Polk Ln. Olive Branch MS -- 151,691 759 751 Nashville, TN 6050 Dana Way Antioch TN -- 123,900 458 451 8/31/2028 Houston, TX 4100 Malone Dr. Pasadena TX -- 233,190 1,359 1,329 Indianapolis, IN 4900 Albert S White Dr. Whitestown IN -- 63,840 309 315 10/31/2028 Atlanta, GA 1625 Oakley Industrial Blvd. Fairburn GA -- 907,675 4,223 3,973 2029 1/31/2029 Indianapolis, IN 1285 W. State Road 32 Lebanon IN -- 741,880 2,662 2,582 Greenville/Spartanburg, SC 70 Tyger River Dr. Duncan SC -- 408,000 2,527 2,076 4/30/2029 Greenville/Spartanburg, SC 230 Apple Valley Rd. Duncan SC -- 275,400 1,420 1,377 6/30/2029 Memphis, TN 11624 S. Distribution Cv. Olive Branch MS -- 1,170,218 4,101 3,959 7/31/2029 Memphis, TN 8500 Nail Rd. Olive Branch MS -- 716,080 2,751 2,786 8/31/2029 Dallas/Ft. Worth, TX 8601 E. Sam Lee Ln. Northlake TX -- 1,214,526 4,278 4,214 9/30/2029 Indianapolis, IN 1627 Veterans Memorial Pkwy. E. Lafayette IN -- 309,400 1,427 1,241 Chicago, IL 6225 E. Minooka Rd. Minooka IL -- 1,034,200 2,931 2,835 11/21/2029 Columbus, OH 1860 Walcutt Rd. Columbus OH -- 194,796 983 949 11/30/2029 Chicago, IL 1460 Cargo Court Minooka IL -- 705,661 2,857 2,814 12/31/2029 Greenville/Spartanburg, SC 402 Apple Valley Rd. Duncan SC -- 235,600 1,263 1,185 Chicago, IL 200 International Pkwy. S. Minooka IL -- 473,280 2,138 2,054 2030 1/31/2030 Dallas/Ft. Worth, TX 3201 N. Houston School Rd. Lancaster TX -- 468,300 1,669 1,630 3/31/2030 Memphis, TN 549 Wingo Rd. Byhalia MS -- 855,878 4,388 4,541 5/31/2030 St. Louis, MO 4015 Lakeview Corporate Dr. Edwardsville IL -- 1,017,780 3,460 3,054 6/30/2030 Richmond, VA 2601 Bermuda Hundred Rd. Chester VA 7 1,034,470 3,851 4,071 Cincinnati/Dayton, OH 700 Gateway Blvd. Monroe OH -- 1,299,492 5,515 5,387 Dallas/Ft. Worth, TX 1704 S. I-45 Hutchins TX -- 120,960 617 601 8/31/2030 Central Florida 3400 NW 35th Street Rd. Ocala FL -- 617,055 3,014 2,914 Table of Contents 24
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES WAREHOUSE/DISTRIBUTION 2030 9/30/2030 Phoenix, AZ 255 143rd Ave. Goodyear AZ -- 801,424 4,193 4,078 10/31/2030 Atlanta, GA 493 Westridge Pkwy. McDonough GA -- 676,000 3,819 2,125 2031 2/28/2031 Greenville/Spartanburg, SC 1021 Tyger Lake Rd. Spartanburg SC -- 213,200 1,043 1,007 3/31/2031 Cleveland, TN 1520 Lauderdale Memorial Hwy. Cleveland TN -- 851,370 3,592 2,792 Indianapolis, IN 19 Bob Glidden Blvd. Whiteland IN -- 530,400 2,190 2,083 5/31/2031 DC/Baltimore, MD 291 Parkside Dr. Winchester VA -- 344,700 1,726 1,666 6/30/2031 Nashville, TN 6050 Dana Way Antioch TN -- 352,275 1,543 1,467 7/31/2031 Atlanta, GA 51 Busch Dr. Cartersville GA -- 328,000 1,646 1,515 9/30/2031 Atlanta, GA 41 Busch Dr. Cartersville GA -- 276,705 1,590 1,526 11/30/2031 Indianapolis, IN 5424 Albert S. White Dr. Whitestown IN -- 1,016,244 3,897 3,628 12/18/2031 DC/Baltimore, MD 80 Tyson Dr. Winchester VA -- 400,400 2,368 2,287 12/31/2031 Phoenix, AZ 1515 South 91st Ave. Phoenix AZ -- 161,982 1,274 1,166 Cincinnati/Dayton, OH 200 Richard Knock Way Walton KY -- 232,500 1,271 1,160 Columbus, OH 351 Chamber Dr. Chillicothe OH -- 352,655 1,961 1,811 2032 2/28/2032 Cincinnati/Dayton, OH 675 Gateway Blvd. Monroe OH -- 143,664 938 897 4/30/2032 Houston, TX 13930 Pike Rd. Missouri City TX -- - 2,123 2,173 Cincinnati/Dayton, OH 300 Richard Knock Way Walton KY -- 544,320 2,411 2,259 2033 3/31/2033 Phoenix, AZ 3405 S. McQueen Rd. Chandler AZ -- 201,784 4,498 4,167 8/31/2033 Phoenix, AZ 3595 N Cotton Ln. Goodyear AZ 8 392,278 3,264 2,871 2034 2/28/2034 Columbus, OH 191 Arrowhead Dr. Hebron OH -- 250,410 1,055 798 10/31/2034 Champaign-Urbana, IL 1001 Innovation Rd. Rantoul IL -- 813,126 4,196 4,072 12/31/2034 Greenville/Spartanburg, SC 21 Inland Pkwy. Greer SC -- 1,318,680 5,544 5,315 2035 4/30/2035 Greenville/Spartanburg, SC 170 Smith Farms Pkwy. Greer SC 9 797,936 4,322 3,710 6/30/2035 Dallas/Ft. Worth, TX 2115 East Belt Line Rd. Carrollton TX -- 298,653 1,361 1,196 Table of Contents 25
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) INDUSTRIAL PROPERTIES WAREHOUSE/DISTRIBUTION 2036 5/31/2036 Central Florida 5275 Drane Field Rd. Lakeland FL -- 117,440 787 708 Charlotte, NC 671 Washburn Switch Rd. Shelby NC -- 673,425 2,786 2,714 11/30/2036 Phoenix, AZ 17510 W. Thomas Rd. Goodyear AZ -- 468,182 4,304 3,880 2037 3/31/2037 Dallas/Ft. Worth, TX 4005 E. I-30 Grand Prairie TX -- 215,000 1,872 1,732 5/31/2037 Phoenix, AZ 8989 W Buckeye Rd. Phoenix AZ -- 268,872 2,368 2,050 2038 3/31/2038 Houston, TX 13600/13901 Industrial Road Houston TX -- 132,449 6,773 6,445 N/A Vacancy Central Florida 3775 Fancy Farms Rd. Plant City FL 10 180,308 - - WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - SINGLE TENANT 52,275,845 253,243$ 245,799$ WAREHOUSE/DISTRIBUTION - NOT STABILIZED (11) N/A Vacancy Dallas/Ft. Worth, TX 3115 N Houston School Rd. Lancaster TX -- 124,450 - - WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - NOT STABILIZED 124,450 -$ -$ MULTI-TENANT/VACANCY (12) N/A Various Greenville/Spartanburg, SC 7820 Reidville Rd Greer SC 13 (100%) 210,820 1,292 1,250 N/A Vacancy Houston, TX 10535 Red Bluff Rd. Pasadena TX -- 257,835 - - MULTI-TENANT/VACANCY WAREHOUSE/DISTRIBUTION TOTAL 468,655 1,292$ 1,250$ INDUSTRIAL DEVELOPMENT LEASED LAND 2042 11/5/2042 Phoenix, AZ 501-42-015 B (Parcel Number) Phoenix AZ 14 - 7,481 5,228 INDUSTRIAL DEVELOPMENT LEASED LAND TOTAL - 7,481$ 5,228$ INDUSTRIAL TOTAL/WEIGHTED AVERAGE 99.2% Leased (15) 52,868,950 262,016$ 252,277$ Table of Contents 26
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Property Type Sq. Ft. Leased or Available (2) Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) OTHER PROPERTIES SINGLE TENANT OFFICE/OTHER 2023 12/14/2023 South Bay/San Jose, CA 3333 Coyote Hill Rd. Palo Alto CA 16 Office 202,000 6,642 7,070 2024 5/31/2024 Charlotte, NC 3476 Stateview Blvd. Fort Mill SC 17 Office 169,083 2,014 2,114 Charlotte, NC 3480 Stateview Blvd. Fort Mill SC 17 Office 169,218 2,088 2,115 2025 12/19/2025 Owensboro, KY 1901 Ragu Dr. Owensboro KY 17,18 Heavy Manufacturing 443,380 1,882 1,933 2048 12/31/2048 DC/Baltimore, MD 30 Light St. Baltimore MD -- Other - 311 311 SINGLE TENANT OTHER TOTAL 983,681 12,937$ 13,543$ TOTAL OTHER/WEIGHTED AVERAGE 100% Leased 983,681 12,937$ 13,543$ TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE 99.2% Leased (15) 53,852,631 274,953$ 265,820$ Table of Contents 27
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) LXP % Ownership Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) 9/30/2023 Debt Balance ($000) Debt Maturity NON-CONSOLIDATED PROPERTIES NNN MFG COLD JV PROPERTIES 2025 6/30/2025 Nashville, TN 301 Bill Bryan Blvd. Hopkinsville KY 19 424,904 20% 1,698 1,687 381,000 01/2024 Elizabethtown-Fort Knox, KY 730 North Black Branch Rd. Elizabethtown KY 19 167,770 20% 709 537 - -- Elizabethtown-Fort Knox, KY 750 North Black Branch Rd. Elizabethtown KY 19 539,592 20% 2,630 2,838 - -- Owensboro, KY 4010 Airpark Dr. Owensboro KY 19 211,598 20% 990 1,208 - -- 7/14/2025 Charlotte, NC 590 Ecology Ln. Chester SC 19 420,597 20% 2,190 2,574 - -- 2026 11/30/2026 Lumberton, NC 2880 Kenny Biggs Rd. Lumberton NC 19 423,280 20% 1,714 1,670 - -- 2027 8/31/2027 Greenville/Spartanburg, SC 50 Tyger River Dr. Duncan SC 19 221,833 20% 1,062 1,136 - -- 12/31/2027 Cincinnati/Dayton, OH 10590 Hamilton Ave. Cincinnati OH 19 264,598 20% 861 845 - -- 2028 9/30/2028 West Michigan 904 Industrial Rd. Marshall MI 19 246,508 20% 835 800 - -- 12/31/2028 Nashville, TN 120 Southeast Pkwy. Dr. Franklin TN 19 289,330 20% 833 735 - -- 2029 4/30/2029 Portland/South Portland, ME 113 Wells St. North Berwick ME 19 993,685 20% 1,672 1,627 - -- 11/24/2029 Anniston-Oxford, AL 318 Pappy Dunn Blvd. Anniston AL 19 276,782 20% 1,842 1,771 - -- 2030 10/31/2030 Detroit, MI 43955 Plymouth Oaks Blvd. Plymouth MI 19 311,612 20% 1,872 1,633 - -- 2031 6/30/2031 Cincinnati/Dayton, OH 10000 Business Blvd. Dry Ridge KY 19 336,350 20% 1,607 1,459 - -- 10/31/2031 Chicago, IL 1020 W. Airport Rd. Romeoville IL 19 188,166 20% 3,964 3,775 - -- 2032 10/31/2032 Detroit, MI 26700 Bunert Rd. Warren MI 20 260,243 20% 4,194 3,740 25,850 11/2032 12/31/2032 Bingen, WA 901 East Bingen Point Way Bingen WA 19 124,539 20% 736 2,782 - -- 2033 9/30/2033 Crossville, TN 900 Industrial Blvd. Crossville TN 19 222,200 20% 704 613 - -- 2034 9/30/2034 Las Vegas, NV 5670 Nicco Way North Las Vegas NV 19 180,235 20% 2,825 2,507 - -- 2035 3/31/2035 Houston, TX 13863 Industrial Rd. Houston TX 19 187,800 20% 2,604 2,348 - -- Houston, TX 7007 F.M. 362 Rd. Brookshire TX 19 262,095 20% 2,041 1,843 2042 5/31/2042 Columbus, GA 4801 North Park Dr. Opelika AL 19 165,493 20% 3,465 2,822 - -- NNN MFG COLD JV TOTAL/WEIGHTED AVERAGE 100% Leased 6,719,210 41,048$ 40,950$ 406,850$ Table of Contents 28
PROPERTY LEASES AND VACANCIES - 9/30/2023 Year of Lease Expiration Date of Lease Expiration CoStar Market (1) Property Location City State Note Sq. Ft. Leased or Available (2) LXP % Ownership Annualized Base Rent as of 9/30/2023 ($000) Annualized Cash Base Rent ("ABR") as of 9/30/2023 ($000) 9/30/2023 Debt Balance ($000) Debt Maturity NON-CONSOLIDATED PROPERTIES NNN OFFICE JV PROPERTIES 2025 12/31/2025 Dallas/Ft. Worth, TX 4001 International Pkwy. Carrollton TX 21 138,443 20% 2,534 2,619 41,135 09/2024 2026 3/31/2026 Columbus, OH 500 Olde Worthington Rd. Westerville OH 21 97,000 20% 1,345 1,286 - -- 2027 6/30/2027 Kansas City, MO 3902 Gene Field Rd. St. Joseph MO 21 98,849 20% 2,116 2,155 - -- 7/6/2027 Columbus, OH 2221 Schrock Rd. Columbus OH 21 42,290 20% 684 697 - -- 8/7/2027 Philadelphia, PA 25 Lakeview Dr. Jessup PA 21 150,000 20% 2,330 2,372 - -- 2029 6/30/2029 Atlanta, GA 2500 Patrick Henry Pkwy. McDonough GA 21 111,911 20% 1,691 1,555 2032 4/30/2032 Charlotte, NC 1210 AvidXchange Ln. Charlotte NC 22 201,450 20% 6,025 5,813 46,900 12/2023 01/2033 2033 5/31/2033 Dallas/Ft. Worth, TX 8900 Freeport Pkwy. Irving TX 21 60,736 20% 1,302 1,215 - -- Vacancy Dallas/Ft. Worth, TX 8900 Freeport Pkwy. Irving TX 21 200,569 20% - - - -- NNN OFFICE JV TOTAL/WEIGHTED AVERAGE 81.8% Leased 1,101,248 18,027$ 17,712$ 88,035$ NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE 97.4% Leased 7,820,458 59,075$ 58,662$ 494,885$ 12 Multi-tenant properties are properties less than 50% leased to a single tenant. 1 Based on CoStar.com inventory data. 13 Represents percent leased. 2 Square footage leased or available. 14 Industrial development land ground lease. LXP has a 95.5% interest in this property. 3 Subsequent to 9/30/2023, lease extended to 3/31/2029. 15 Percent leased is for Stabilized Portfolio. 4 Subsequent to 9/30/2023, lease extended to 7/31/2029. 16 Property is subject to a ground lease that will expire on 12/14/2023 with no extension options. 5 Tenant exercised four-month holdover provision in lease. 17 Property held for sale at 9/30/2023. 6 Subsequent to 9/30/2023, lease extended to 10/31/2034. 18 LXP has a 71.1% interest in this property. 7 19 8 LXP has a 93% interest in this property. 20 Interest rate is fixed at 5.38%. 9 LXP has a 90% interest in this property. 21 10 Subsequent to 9/30/2023, leased for approximately 12-year term. 11 Property not in Stabilized Portfolio at 9/30/2023. 22 Interest rate is fixed and ranges from 5.0% to 5.3%. All debt is cross-collateralized and cross-defaulted. Rate is one month Term SOFR plus 350 bps. One month Term SOFR is capped at 5.5% through maturity. Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet). Footnotes All debt is cross-collateralized and cross-defaulted. Rate is one month Term SOFR plus 245 bps. One month Term SOFR is capped at 3.0% through maturity. Table of Contents 29
MORTGAGES AND NOTES PAYABLE Footnotes Debt Balance ($000) Interest Rate (%) Maturity (a) Current Estimated Annual Debt Service ($000) (b) Balloon Payment ($000) INDUSTRIAL (c) Long Island City, NY 21,821$ 3.500% 03/2028 5,245$ -$ Goodyear, AZ 40,381 4.290% 08/2031 2,484 33,399 62,202$ 4.013% 6.6 7,729$ 33,399$ Palo Alto, CA 2,024$ 3.970% 12/2023 2,039$ -$ 2,024$ 3.970% 0.2 2,039$ -$ 64,226$ 4.012% 6.4 9,768$ 33,399$ CORPORATE (e) Senior Notes 198,932$ 4.400% 06/2024 8,753$ 198,932$ Term Loan (f) 300,000 2.722% 01/2025 8,279 300,000 Revolving Credit Facility (g) - - 07/2026 - - Senior Notes 400,000 2.700% 09/2030 10,800 400,000 Senior Notes 400,000 2.375% 10/2031 9,500 400,000 Trust Preferred Notes (h) 129,120 7.331% 04/2037 9,597 129,120 1,428,052$ 3.269% 5.8 46,929$ 1,428,052$ Total/Wtd. Avg./Years Remaining (d) (i) 1,492,278$ 3.301% 5.8 56,697$ 1,461,451$ Office Subtotal/Wtd. Avg./Years Remaining (d) Subtotal/Wtd. Avg./Years Remaining (d) Subtotal/Wtd. Avg./Years Remaining (d) 9/30/2023 Property Industrial Subtotal/Wtd. Avg./Years Remaining (d) OFFICE (c) Table of Contents 30
MORTGAGES AND NOTES PAYABLE (CONTINUED) ($000) GAAP Balance Deferred Loan Costs, net Discounts Gross Balance Mortgages and notes payable (c) 63,390$ 836$ -$ 64,226$ Term loans payable (e) 299,334 666 - 300,000 Senior notes payable(e) 990,318 5,704 2,910 998,932 Trust preferred securities (e) 127,769 1,351 - 129,120 Consolidated debt 1,480,811$ 8,557$ 2,910$ 1,492,278$ (a) Subtotal and total based on weighted-average term to maturity shown in years based on debt balance. (b) Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months. (c) Secured. (d) Total shown may differ from detailed amounts due to rounding. (e) Unsecured. (f) (g) (h) Rate is three month term SOFR plus a 0.26% adjustment plus a spread of 170 bps. (i) See reconciliations of non-GAAP measures in this document. Footnotes 9/30/2023 Rate ranges from Adjusted Term SOFR plus 0.85% to 1.65%. The Adjusted Term SOFR portion of the interest rate was swapped to obtain a current fixed rate of 2.722%. Rate ranges from Adjusted Daily Simple SOFR or Adjusted Term SOFR plus 0.725% to 1.40%. Availability of $600 million, subject to covenant compliance. Maturity date can be extended to July 2027, subject to certain conditions. Table of Contents 31
DEBT MATURITY SCHEDULE ($000) Year Mortgage Scheduled Amortization Mortgage Balloon Payments Corporate Debt 2023 - remaining 3,338$ -$ -$ 2024 5,373 - 198,932 2025 5,570 - 300,000 2026 5,773 - - 2027 5,984 - - 26,038$ -$ 498,932$ Footnotes (1) Percentage denotes weighted-average interest rate. Consolidated Properties 9/30/2023 Table of Contents 32
DEBT COVENANTS (1) CORPORATE LEVEL DEBT MUST BE: 9/30/2023 Maximum Leverage < 60% 34.1% Fixed Charge Coverage > 1.5x 3.3x Recourse Secured Indebtedness Ratio < 10% cap value 0.0% Secured Indebtedness Ratio < 40% 3.5% Unsecured Debt Service Coverage > 2.0x 4.8x Unencumbered Leverage < 60% 36.2% Debt to Total Assets < 60% 31.4% Secured Debt to Total Assets < 40% 1.3% Debt Service Coverage > 1.5x 5.5x Unencumbered Assets to Unsecured Debt > 150% 319.3% Footnotes (1) Bank Loans: Bonds: The above is a summary of the key financial covenants for LXP's credit facility and term loan and senior notes, as of September 30, 2023 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date. These calculations are presented to show LXP's compliance with such covenants only and are not measures of LXP's liquidity or performance. Table of Contents 33
COMPONENTS OF NET ASSET VALUE ($000) Consolidated properties quarterly net operating income (NOI) (1) In service assets not fairly valued by capitalized NOI method (1) Industrial 60,016$ Consolidated assets acquired/completed (our share) in 2023 48,597$ Other 1,797 Consolidated assets less than 70% leased 63,926$ Total Net Operating Income 61,813$ Other assets: Assets held for sale - consolidated 11,691$ LXP's share of non-consolidated quarterly NOI (1) Investment in a sales-type lease(2) 60,118 NNN OFFICE JV Construction in progress 4,254 Office 778$ Developable land - consolidated(3) 80,932 NNN MFG Cold JV Developable land - non-consolidated(3) 16,276 Industrial 2,027$ Development investment - consolidated(3) 354,277 Development investment - non-consolidated(3) 8,811 Cash and cash equivalents 35,421 Other quarterly income Restricted cash 211 Advisory fees 1,120$ Accounts receivable 6,636 Other assets 32,584 Total other assets 611,211$ Three months ended Liabilities: NOI for NAV Reconciliation: 9/30/2023 Corporate level debt (face amount) 1,428,052$ NOI as reported 66,498$ Mortgages and notes payable (face amount) 64,226 Adjustments to NOI: Dividends payable 38,304 Disposed of properties (1,646) Liabilities held for sale - consolidated 1,083 Leases with free rent period 224 Accounts payable, accrued expenses and other liabilities 83,508 Leases not commenced 237 Preferred stock, at liquidation value 96,770 Held for sale assets (1,529) LXP's share of non-consolidated mortgages (face amount) 98,977 Assets acquired/completed in 2023 (219) Total deductions 1,810,920$ Investment in a sales-type lease (1,307) Assets less than 70% leased / Other (445) NOI for NAV 61,813$ Common shares & OP units at 9/30/2023 293,433,789 Footnotes (1) (2) Our share of carrying value excluding allowance for credit loss. (3) At cost incurred. 9/30/2023 The purpose of providing the following information is to enable readers to derive their own estimates of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation. Three months ended 9/30/2023 NOI for the existing property portfolio at September 30, 2023, includes one quarter of annualized NOI for non-commenced leases and leases with free rent periods (excludes NOI related to assets undervalued by a capitalized NOI method, not in service leased development projects and assets held for sale). Assets undervalued by a capitalized NOI method are identified generally by under 70% leased during the period, assets placed into service and assets acquired in 2023. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, LXP's net book value has been used. Table of Contents 34
NON-GAAP MEASURES DEFINITIONS LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Supplemental Information and in other public disclosures. LXP believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable Generally Accepted Accounting Principles (“GAAP”) measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund operations. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating LXP's financial performance or cash flow from operating, investing, or financing activities or liquidity. Definitions: Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties, non-cash sales-type lease adjustments, impairment charges, debt satisfaction gains (losses), net, non-cash charges, net, straight-line adjustments, change in credit loss revenue, non-recurring charges and adjustments for pro-rata share of non-wholly owned entities. LXP’s calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. LXP believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA. Annualized Cash Base Rent ("ABR"): Annualized Cash Base Rent is calculated by multiplying the current monthly Cash Base Rent by 12. For leases in free rent periods or that were signed prior to the end of the quarter but have not commenced, the first full Cash Base Rent payment is multiplied by 12. Excludes not in service leased development projects. LXP believes ABR provides a meaningful indication of an investment's ability to fund cash needs. Annualized Base Rent: Annualized Base rent is calculated by multiplying the current monthly Base Rent by 12. For leases signed prior to the end of the quarter but have not commenced, the first Base Rent is multiplied by 12. LXP believes Annualized Base Rent provides a meaningful measure to the net lease structure of the portfolio. Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio. Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements, non-cash sales-type lease income and lease termination income, and includes ancillary income. LXP believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs. Table of Contents 35
NON-GAAP MEASURES DEFINITIONS Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash income related to sales-type leases, (6) non-cash interest, (7) non-cash charges, net, (8) capitalized interest and internal costs, (9) cash paid for second generation tenant improvements, and (10) cash paid for second generation lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), LXP believes it provides a meaningful indication of its ability to fund its quarterly distributions. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity. First Generation Costs: Represents cash spend for tenant improvements and leasing costs for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, LXP's presentation may not be comparable to similarly titled measures of other companies. Funds from Operations (“FFO”) and Adjusted Company FFO: LXP believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity real estate investment trust (“REIT”). LXP believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income. The National Association of Real Estate Investment Trusts, or Nareit, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. LXP presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into LXP's common shares, are converted at the beginning of the period. LXP also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio. LXP believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of LXP’s operating performance or as an alternative to cash flow as a measure of liquidity. Table of Contents 36
NON-GAAP MEASURES DEFINITIONS Net Operating Income (NOI): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of LXP's historical or future financial performance, financial position or cash flows. LXP defines NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash income related to sales-type leases, and lease termination income, net) and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, LXP's NOI may not be comparable to that of other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. LXP believes that net income is the most directly comparable GAAP measure to NOI. Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for two comparable reporting periods. As Same-Store NOI excludes the change in NOI from acquired and disposed of properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, LXP's Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of LXP's operating performance. However, Same-Store NOI should not be viewed as an alternative measure of LXP's financial performance since it does not reflect the operations of LXP's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of LXP's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact LXP's results from operations. LXP believes that net income is the most directly comparable GAAP measure to Same-Store NOI. Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation. LXP believes that second generation building improvements represent an investment in existing stabilized properties. Stabilized Portfolio: All real estate properties other than acquired or developed properties that have not achieved 90% occupancy within one-year of acquisition or substantial completion. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction. Upon stabilization, a property is placed in service. Depreciation on development buildings commences when the asset is ready for its intended use, which we define as the earlier of when a property that was developed has been completed for one year, or is 90% occupied. Table of Contents 37
SELECT CREDIT METRICS DEFINITIONS ($000) Adjusted Company FFO Payout: Nine months ended September 30, 2023 (Debt + Preferred) / Gross Assets: Nine months ended September 30, 2023 Common share dividends per share 0.375$ Consolidated debt 1,480,811$ Adjusted Company FFO per diluted share 0.52 Preferred shares liquidation preference 96,770 Adjusted Company FFO payout ratio 72.1% Debt and preferred 1,577,581$ Unencumbered Assets: Total assets 3,929,004$ Real estate, at cost 4,489,849$ Plus depreciation and amortization: Held for sale real estate and intangible assets, at cost 20,149 Real estate 893,031 Investment in a sales-type lease(1) 62,951 Deferred lease costs 12,225 less encumbered real estate, at cost (144,386) Held for sale assets 9,910 Unencumbered assets 4,428,563$ Gross assets 4,844,170$ Unencumbered NOI: NOI 197,946$ (Debt + Preferred) / Gross Assets 32.6% Disposed of properties NOI (5,994) Adjusted NOI 191,952 Debt / Gross Assets: less encumbered adjusted NOI (12,109) Consolidated debt 1,480,811$ Unencumbered adjusted NOI 179,843$ Gross assets 4,844,170$ Unencumbered NOI % 93.7% Debt / Gross assets 30.6% Net Debt / Adjusted EBITDA: Adjusted EBITDA 250,607$ Secured Debt / Gross Assets: Total Secure Debt 63,390$ Consolidated debt 1,480,811$ less consolidated cash and cash equivalents (35,421) Gross assets 4,844,170$ Non-consolidated debt, net 95,993 Net debt 1,541,383$ Secured Debt / Gross Assets 1.3% Net debt / Adjusted EBITDA 6.2x Unsecured Debt / Unencumbered Assets: Consolidated debt 1,480,811$ (Net Debt + Preferred) / Adjusted EBITDA: less mortgages and notes payable (63,390) Adjusted EBITDA 250,607$ Unsecured Debt 1,417,421$ Net debt 1,541,383$ Unencumbered assets 4,428,563$ Preferred shares liquidation preference 96,770 Net debt + preferred 1,638,153$ Unsecured Debt / Unencumbered Assets 32.0% (Net Debt + Preferred) / Adjusted EBITDA 6.5x For the 12/31/2022, 12/31/2021 and 12/31/2020 Select Credit Metric reconciliation see corresponding period Quarterly Supplemental Information. (1) At carrying value excluding allowance for credit loss. Table of Contents 38
APPENDIX - OTHER PORTFOLIO Year Number of Leases Expiring ABR as of 9/30/2023 ($000) Percent of ABR as of 9/30/2023 Percent of ABR as of 9/30/2022 # of Properties 5 2023 - remaining 1 7,070$ 52.2% 33.1% Square Feet 983,681 2024 2 4,229 31.2% 41.5% % Investment Grade (1) 45.5% 2025 1 1,933 14.3% 13.1% % of ABR(2) 5.1% 2026 0 0 0.0% 1.3% % Leased 100.0% 2027 0 0 0.0% 0.5% Weighted-Average Age (Years)(3) 33.3 2028 0 0 0.0% 0.7% Weighted-Average ABR per SF(4) $13.45 2029 0 0 0.0% 0.0% Weighted-Average Lease Term (Years)(5) 1.2 2030 0 0 0.0% 0.0% % with Fixed Escalation(6) 85.7% 2031 0 0 0.0% 8.2% Average Annual Rent Escalation(6) 1.3% 2032 0 0 0.0% 0.0% Mortgage Debt ($000) $2,024 Thereafter 1 311 2.3% 1.4% Total (7) 5 13,543$ 100.0% Footnotes (1) Percent of ABR. Credit ratings based upon either tenant, guarantor or parent/ultimate parent. (2) Based on ABR for consolidated properties owned. (3) Weighting based on square footage, excluding land parcels. (4) Excludes land assets and all vacant square footage. (5) Weighting based on ABR. (6) Based on ABR for single-tenant leases owned (properties 50% leased to a single tenant). Average Annual Rent Escalation based on next rent step percentages. (7) Total shown may differ from detailed amounts due to rounding. 9/30/2023 Additional Information LEASE ROLLOVER SCHEDULE Table of Contents 39
Investor Information Transfer Agent Computershare Overnight Correspondence: PO Box 43006 150 Royall Street, Suite 101 Providence, RI 02940 Canton, MA 02021 (800) 850-3948 www-us.computershare.com/investor Investor Relations Heather Gentry Senior Vice President, Investor Relations Telephone (direct) (212) 692-7219 E-mail hgentry@lxp.com Research Coverage Bank of America Camille Bonnel (416) 369-2140 Green Street Advisors Vince Tibone (949) 640-8780 JMP Securities Mitch Germain (212) 906-3537 KeyBanc Capital Markets Inc. Todd Thomas (917) 368-2286 Evercore Partners Steve Sakwa (212) 446-9462 Jim Kammert (312) 705-4233 Jefferies & Company, Inc. Jon Petersen (212) 284-1705 J.P. Morgan Chase Anthony Paolone (212) 622-6682 Table of Contents 40
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