EX-99.2 3 n3045-x17exh99_2.htm QUARTERLY SUPPLEMENTAL INFORMATION, THIRD QUARTER 2022

 

Exhibit 99.2

 

 

 

 

 

 

TABLE OF CONTENTS
September 30, 2022

 

PAGE       PAGE
             
SUMMARY / HIGHLIGHTS 3   TENANT DATA  
          TOP 15 TENANTS 19
FINANCIAL DATA       QUARTERLY LEASING SUMMARY 20
  CONSOLIDATED BALANCE SHEETS 4     LEASE ROLLOVER SCHEDULES 21
  CONSOLIDATED STATEMENTS OF OPERATIONS 5     PROPERTY LEASES AND VACANCIES 23
  NON-GAAP FINANCIAL DATA 6        
  SELECT CREDIT METRICS SUMMARY 10   DEBT  
  OTHER FINANCIAL DATA 11     MORTGAGES AND NOTES PAYABLE 33
          DEBT MATURITY SCHEDULE 35
CAPITAL DEPLOYMENT / RECYCLING       DEBT COVENANTS 36
  QUARTERLY INVESTMENTS / CAPITAL RECYCLING 12        
  DEVELOPMENT SUMMARY 13   COMPONENTS OF NET ASSET VALUE 37
  CAPITAL EXPENDITURES AND LEASING COSTS 14        
        NON-GAAP MEASURES DEFINITIONS 38
PORTFOLIO DATA          
  PORTFOLIO DATA 15   INVESTOR INFORMATION 42
  SAME STORE DATA 16        
  PORTFOLIO DETAIL BY ASSET CLASS 17        
  INDUSTRIAL PORTFOLIO INFORMATION 18        

 

This Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of LXP Industrial Trust (“LXP”), which may cause actual results, performance or achievements of LXP and its subsidiaries 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 have potential adverse impact on LXP or its tenants from the novel coronavirus (COVID-19); (2) the authorization by LXP’s Board of Trustees of future dividend declarations, (3) LXP’s ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2022, (4) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any legislation, (7) competition, (8) increases in real estate construction costs and construction schedule delays, (9) changes in financial markets and interest rates, (10) changes in accessibility of debt and equity capital markets, (11) future impairment charges, and (12) risks related to our investments in our nonconsolidated 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, 2022

 

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.

 

Quarterly Highlights   Portfolio Statistics
         
- Net Income - $0.08 per diluted common share   # of Properties:   118
         
- Adjusted Company FFO - $0.17 per diluted common share   # of States:   21
         
- Completed 0.3 million square feet of new leases and lease extensions, raising industrial Base and Cash Base Rents by 47.0% and 40.7%, respectively   Square Footage:   54.1 million
         
- Invested an aggregate of $70.6 million in six ongoing development projects   Ongoing Development Projects:   6
         
- Amended unsecured credit facility extending the maturity date of the revolving credit portion to July 2026   Stabilized Portfolio % Leased:   99.1%
         
- Disposed of three properties for an aggregate gross sales price of $92.0 million   # of Leases:   146
         
- Net Debt to Adjusted EBITDA ratio was 7.1x at quarter end ( 6.3x including forward common share sales contracts)   % Industrial:   98.9%
         
    Weighted-Average Lease Term (ABR):   6.1 years
         
    Weighted-Average Age:   9.2 years
         
    Developable Land:(1)(2)   637 acres

 

Footnote

(1) Includes consolidated and non-consolidated developable land.
   
(2) Subsequent to quarter end, leased approximately 100 acres of the 420 acre developable land parcel located in the Phoenix, AZ market.

 

3 

 

 

 

CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share and per share data)

 

  

September 30, 2022

  

December 31, 2021

 
Assets:        
Real estate, at cost  $3,642,114   $3,583,978 
Real estate - intangible assets   332,646    341,403 
Land held for development   108,379    104,160 
Investments in real estate under construction   368,483    161,165 
Real estate, gross   4,451,622    4,190,706 
Less: accumulated depreciation and amortization   747,535    655,740 
Real estate, net   3,704,087    3,534,966 
Assets held for sale   73,761    82,586 
Right-of-use assets, net   24,994    27,966 
Cash and cash equivalents   29,407    190,926 
Restricted cash   113    101 
Investments in non-consolidated entities   55,415    74,559 
Deferred expenses, net   25,564    18,861 
Rent receivable - current   2,426    3,526 
Rent receivable - deferred   69,419    63,283 
Other assets   26,062    8,784 
Total assets  $4,011,248   $4,005,558 
           
Liabilities and Equity:          
Liabilities:          
Mortgages and notes payable, net  $74,891   $83,092 
Revolving credit facility borrowings   130,000    - 
Term loan payable, net   298,834    298,446 
Senior notes payable, net   988,954    987,931 
Trust preferred securities, net   127,669    127,595 
Dividends payable   34,778    37,425 
Liabilities held for sale   2,815    3,468 
Operating lease liabilities   26,062    29,094 
Accounts payable and other liabilities   88,028    77,607 
Accrued interest payable   10,278    8,481 
Deferred revenue - including below market leases, net   11,734    14,474 
Prepaid rent   14,693    14,717 
Total liabilities   1,808,736    1,682,330 
           
Commitments and contingencies          
Equity:          
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:          
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issues and outstanding   94,016    94,016 
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 276,100,331 and 283,752,726 shares issued and outstanding in 2022 and 2021, respectively   28    28 
Additional paid-in-capital   3,134,739    3,252,506 
Accumulated distributions in excess of net income   (1,079,407)   (1,049,434)
Accumulated other comprehensive income (loss)   17,768    (6,258)
Total shareholders’ equity   2,167,144    2,290,858 
Noncontrolling interests   35,368    32,370 
Total equity   2,202,512    2,323,228 
Total liabilities and equity  $4,011,248   $4,005,558 

 

4 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except share and per share data)

 

  

Three months ending September 30,

  

Nine months ending September 30,

 
   2022   2021   2022   2021 
Gross revenues:                    
Rental revenue  $78,274   $82,353   $234,749   $254,570 
Other revenue   1,814    1,064    5,392    2,945 
Total gross revenues   80,088    83,417    240,141    257,515 
Expenses applicable to revenues:                    
Depreciation and amortization   (44,946)   (45,359)   (134,645)   (130,579)
Property operating   (13,961)   (11,406)   (42,279)   (33,966)
General and administrative   (9,060)   (8,363)   (29,093)   (24,695)
Non-operating income   242    472    353    953 
Interest and amortization expense   (11,255)   (12,210)   (32,758)   (35,170)
Debt satisfaction gains (losses), net   (119)   (13,222)   (119)   (13,222)
Impairment charges   (628)   (2,048)   (2,457)   (2,048)
Gains on sales of properties   24,841    16,122    52,951    104,767 
Selling profit from sales-type lease   -    -    9,314    - 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities   25,202    7,403    61,408    123,555 
Provision for income taxes   (271)   (270)   (951)   (986)
Equity in earnings (losses) of non-consolidated entities   (1,340)   (75)   15,580    (249)
Net income   23,591    7,058    76,037    122,320 
Less net income attributable to noncontrolling interests   (201)   (420)   (727)   (1,962)
Net income attributable to LXP Industrial Trust shareholders   23,390    6,638    75,310    120,358 
Dividends attributable to preferred shares - Series C   (1,573)   (1,573)   (4,718)   (4,718)
Allocation to participating securities   (41)   (37)   (151)   (170)
Net income attributable to common shareholders  $21,776   $5,028   $70,441   $115,470 
                     
Net income attributable to common shareholders - per common share basic  $0.08   $0.02   $0.25   $0.42 
Weighted-average common shares outstanding - basic   277,535,717    278,124,204    281,559,058    276,379,718 
                     
Net income attributable to common shareholders - per common share diluted  $0.08   $0.02   $0.25   $0.41 
Weighted-average common shares outstanding - diluted   278,521,946    282,048,458    284,609,950    278,581,849 

 

5 

 

 

 

NON-GAAP FINANCIAL DATA 

(Unaudited and in thousands, except share and per share data)

  

   Three months ending September 30,   Nine months ending September 30, 
   2022   2021   2022   2021 
FUNDS FROM OPERATIONS:                    
Basic and Diluted:                    
Net income attributable to common shareholders  $21,776   $5,028   $70,441   $115,470 
Adjustments:                    
Depreciation and amortization   44,227    44,652    132,600    128,442 
Impairment charges - real estate, including our share of non-consolidated entities   1,256    2,048    7,299    2,048 
Noncontrolling interest - OP units   11    240    147    1,391 
Amortization of leasing commissions   719    707    2,045    2,137 
Joint venture and noncontrolling interest adjustment   2,612    2,115    8,585    6,344 
Gain on sales of properties, including our share of non-consolidated entities, net of tax   (24,842)   (16,122)   (75,803)   (104,767)
FFO available to common shareholders and unitholders - basic   45,759    38,668    145,314    151,065 
Preferred dividends   1,573    1,573    4,718    4,718 
Amount allocated to participating securities   41    37    151    170 
FFO available to common equityholders and unitholders - diluted   47,373    40,278    150,183    155,953 
Selling profit from sales-type lease(1)   -    -    (9,314)   - 
Non-recurrings costs(2)   640    64    2,629    205 
Debt satisfaction losses, including our share of non-consolidated entities   119    13,222    1,614    13,222 
Adjusted Company FFO available to all equityholders and unitholders - diluted  $48,132   $53,564   $145,112   $169,380 
                     
Per Common Share and Unit Amounts:                    
Basic:                    
FFO  $0.16   $0.14   $0.51   $0.54 
                     
Diluted:                    
FFO  $0.17   $0.14   $0.52   $0.55 
Adjusted Company FFO  $0.17   $0.19   $0.50   $0.59 
                     
Weighted-Average Common Shares:                    
Basic:                    
Weighted-average common shares outstanding - basic EPS   277,535,717    278,124,204    281,559,058    276,379,718 
Operating partnership units (3)   846,858    1,161,757    859,226    2,263,105 
Weighted-average common shares outstanding - basic FFO   278,382,575    279,285,961    282,418,284    278,642,823 
                     
Diluted:                    
Weighted-average common shares outstanding - diluted EPS   278,521,946    282,048,458    284,609,950    278,581,849 
Operating partnership units (3)   -    1,161,757    -    2,263,105 
Unvested share-based payments awards   -    53,320    23,175    35,645 
Preferred shares - Series C   4,710,570    4,710,570    4,710,570    4,710,570 
Weighted-average common shares outstanding - diluted FFO   283,232,516    287,974,105    289,343,695    285,591,169 

 

(1)Gain recognized upon exercise of the tenant’s purchase option in the lease.
(2)Includes transaction, strategic alternatives and costs related to shareholder activism.
(3)Includes OP units other than OP units held by LXP.

 

6 

 

 

 

NON-GAAP FINANCIAL DATA (CONTINUED)

(Unaudited and in thousands)

 

  Three months ending September 30,   Nine months ending September 30, 
   2022   2021   2022   2021 
Adjusted Company FFO available to all equityholders and unitholders - diluted  $48,132   $53,564   $145,112   $169,380 
                     
FUNDS AVAILABLE FOR DISTRIBUTION                    
Adjustments:                    
Straight-line adjustments   (2,078)   (3,196)   (8,893)   (8,146)
Lease incentives   128    192    391    605 
Amortization of above/below market leases   (455)   (314)   (1,416)   (1,211)
Lease termination payments, net   -    (662)   -    881 
Non-cash interest   820    838    2,459    2,475 
Non-cash charges, net   1,941    1,766    5,637    5,341 
Capitalized interest and internal costs   (2,414)   (728)   (5,465)   (2,124)
Second generation tenant improvements   (499)   (3,443)   (5,016)   (4,178)
Second generation lease costs   (1,380)   (2,287)   (2,138)   (5,341)
Joint venture and non-controlling interest adjustment   111    (54)   (108)   (181)
Company Funds Available for Distribution  $44,306   $45,676   $130,563   $157,501 

 

7 

 

 

 

NON-GAAP FINANCIAL DATA (CONTINUED)

($000)

 

Net Operating Income (“NOI”):  Three months ending September 30,   Nine months ending September 30, 
   2022   2021   2022   2021 
Net income  $23,591   $7,058   $76,037   $122,320 
                     
Interest and amortization expense   11,255    12,210    32,758    35,170 
Provision for income taxes   271    270    951    986 
Depreciation and amortization   44,946    45,359    134,645    130,579 
General and administrative   9,060    8,363    29,093    24,695 
Transaction costs   1    64    56    205 
Non-operating/advisory fee income   (1,630)   (1,265)   (4,616)   (3,239)
Gains on sales of properties   (24,841)   (16,122)   (52,951)   (104,767)
Impairment charges   628    2,048    2,457    2,048 
Selling profit from sales-type lease   -    -    (9,314)   - 
Equity in (earnings) losses of non-consolidated entities   1,340    75    (15,580)   249 
Debt satisfaction losses, net   119    13,222    119    13,222 
Lease termination income, net   (238)   (1,960)   (238)   (13,787)
Straight-line adjustments   (2,078)   (3,196)   (8,893)   (8,146)
Lease incentives   128    192    391    605 
Amortization of above/below market leases   (455)   (314)   (1,416)   (1,211)
Sales-type lease interest income   13    -    -    - 
NOI   62,110    66,004    183,499    198,929 
                     
Less NOI:                    
   Acquisitions, development and dispositions   (8,185)   (14,180)   (30,045)   (50,248)
Same-Store NOI  $53,925   $51,824   $153,454   $148,681 

 

8 

 

 

 

NON-GAAP FINANCIAL DATA (CONTINUED)

($000)

 

Adjusted EBITDA:                         
   9/30/2022   6/30/2022   3/31/2022   12/31/2021   Trailing 12 Months 
Net income attributable to LXP Industrial Trust shareholders  $23,390   $41,298   $10,622   $262,290   $337,600 
Interest and amortization expense   11,255    10,821    10,682    11,538    44,296 
Provision for income taxes   271    263    417    307    1,258 
Depreciation and amortization   44,946    45,193    44,506    46,135    180,780 
Straight-line adjustments   (2,078)   (3,313)   (3,502)   (4,178)   (13,071)
Lease incentives   128    129    134    175    566 
Amortization of above/below market leases   (455)   (481)   (480)   (340)   (1,756)
Gains on sales of properties   (24,841)   (27,855)   (255)   (262,507)   (315,458)
Impairment charges   628    1,829    -    3,493    5,950 
Debt satisfaction losses, net   119    -    -    672    791 
Selling profit from sales-type lease   -    (9,314)   -    -    (9,314)
Sales-type lease interest income   13    (13)   -    -    - 
Non-cash charges, net   1,941    1,598    2,098    1,796    7,433 
Non-recurring strategic alternatives and activism costs   639    753    1,181    1,199    3,772 
                          
Pro-rata share adjustments:                         
Non-consolidated entities adjustment   5,012    (1,487)   (6,833)   2,750    (558)
Noncontrolling interests adjustment   (1)   35    77    267    378 
                          
Adjusted EBITDA  $60,967   $59,456   $58,647   $63,597   $242,667 

 

9 

 

 

 

SELECT CREDIT METRICS SUMMARY (1)

 

  12/31/2019   12/31/2020   12/31/2021   9/30/2022
Adjusted Company FFO Payout Ratio 51.6%   55.6%   56.7%   72.0%
               
Unencumbered Assets $3.3 billion   $3.8 billion   $4.2 billion   $4.5 billion
               
Unencumbered NOI 84.1%   89.3%   92.6%   93.2%
               
(Debt + Preferred) / Gross Assets 34.5%   32.5%   33.4%   35.3%
               
Debt/Gross Assets 32.1%   30.4%   31.4%   33.3%
               
Secured Debt / Gross Assets 9.6%   3.1%   1.7%   1.5%
               
Unsecured Debt / Unencumbered Assets 28.2%   32.1%   33.5%   34.6%
               
Net Debt / Adjusted EBITDA (2)(3) 4.9x   4.8x   5.5x   7.1x
               
(Net Debt + Preferred) / Adjusted EBITDA (2) 5.3x   5.1x   5.8x   7.5x
               
Credit Facilities Availability (4) $600.0 million   $600.0 million   $600.0 million   $470.0 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)9/30/2022 Net Debt/Adjusted EBITDA would have been 6.3x including forward common share sale contracts.
(4)Subject to covenant compliance.

 

10 

 

 

  OTHER FINANCIAL DATA

9/30/2022

($000)

 

Rent Estimates for Current Assets  
 

 

Year   Base Rent (1)   Cash Base Rent (1)   Difference 
2022 - remaining   $66,080   $64,143   $(1,937)
2023    267,121    263,104    (4,017)

 

Balance Sheet     
Other assets  $26,062 
      
The components of other assets are:     
Deposits  $1,939 
Equipment   330 
Prepaids   2,582 
Note receivable   1,476 
Other receivables   507 
Deferred lease incentives   2,631 
Derivative asset   16,586 
Deferred asset   11 
      
Accounts payable and other liabilities  $88,028 
      
The components of accounts payable and other liabilities are:     
Accounts payable and accrued expenses  $29,482 
Development, CIP and other accruals   52,142 
Taxes   228 
Deferred lease costs   2,107 
Deposits   4,068 
Transaction costs   1 

 

Footnote

(1) Amounts assume (i) lease terms for non-cancellable periods only, (ii) no new or renegotiated leases are entered into after 9/30/2022, and (iii) no properties are sold or acquired after 9/30/2022.

 

11 

 

 

  QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY(1)

9/30/2022

 

CAPITAL RECYCLING

 

   Location  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  Wilsonville  OR  Industrial  $60,600   $1,921   $2,797   July    100%  $119.23 
2  McDonough(3)  GA  Other   28,000    1,719    2,182   July    100%   94.28 
3  McDonough  GA  Other   3,350    (298)   (298)  July    0%   53.84 
3  TOTAL CONSOLIDATED PROPERTY DISPOSITIONS  $91,950   $3,342   $4,681               

 

Footnotes

(1) A land parcel located in Hebron, OH was purchased for $747 thousand.
(2) Generally, quarterly period prior to sale annualized.
(3) Tenant exercised a fixed-rate purchase option in its lease.

 

12 

 

 

  DEVELOPMENT SUMMARY

9/30/2022


ONGOING:

 

   Project
(% owned)		  # of
Buildings		   Market  Estimated
Sq. Ft.		   Estimated
Project
Project Cost
($000)(1)		   GAAP
Investment Balance
as of 9/30/2022
($000)		   LXP
Amount Funded
as of 9/30/2022
($000)(2)		   Estimated
Building
Completion
Date		   
% Leased
as of
9/30/2022		 
Consolidated                              
1  The Cubes at Etna East (95%)(3)  1   Columbus, OH   1,074,840   $72,100   $59,713   $53,095   3Q 2022   0%
2  Ocala (80%)  1   Central Florida   1,085,280    83,100    66,556    54,866   4Q 2022   0%
3  Mt. Comfort (80%)  1   Indianapolis, IN   1,053,360    65,500    48,354    38,278   4Q 2022   0%
4  Smith Farms (90%)(4)  3   Greenville/Spartanburg, SC   2,194,820    170,400    123,582    97,906   4Q 2022-2Q 2023   36%
5  Cotton 303 (93%)(5)  2   Phoenix, AZ   880,678    84,200    56,554    49,000   1Q 2023   45%
6  South Shore (100%)  2   Central Florida   270,885    40,500    13,724    10,435   2Q 2023   0%
6  Total Consolidated Development Projects   $515,800   $368,483   $303,580         

 

LAND HELD FOR DEVELOPMENT:

 

   Project
(% owned)		  Market  Approx.
Developable
Acres		   GAAP
Investment Balance
as of 9/30/2022
($000)		   LXP
Amount Funded
as of 9/30/2022
($000)(2)		 
Consolidated               
1  Reems & Olive (95.5%)(6)  Phoenix, AZ   420   $101,412   $96,961 
2  Mt. Comfort Phase II (80%)  Indianapolis, IN   116    5,236    4,165 
3  ATL Fairburn JV (100%)  Atlanta, GA   14    1,731    1,728 
3  Total Consolidated Land Projects   550   $108,379   $102,854 

 

   Project
(% owned)		  # of
Buildings		  Market  Approx.
Developable
Acres		   GAAP
Investment Balance
as of 9/30/2022
($000)		   LXP
Amount Funded
as of 9/30/2022
($000)(2)		 
Non - Consolidated                     
1  ETNA Park 70 (90%)  TBD  Columbus, OH   66   $12,959   $13,547 
2  ETNA Park 70 East (90%)  TBD  Columbus, OH   21    2,124    2,278 
2  Total Non-Consolidated Land Projects   87   $15,083   $15,825 

 

Footnotes

(1) Estimated project cost includes estimated tenant improvements and lease costs and excludes potential developer partner promote, if any.
(2) Excludes noncontrolling interests’ share.
(3) Base building substantially completed on 9/30/2022. Property not in service.
(4) Pre-leased one 797,936 square foot facility subject to a 12-year lease commencing upon substantial completion of the facility.
(5) Pre-leased 392,278 square foot facility subject to a 10-year lease commencing upon substantial completion of the facility.
(6) Subsequent to quarter end, leased approximately 100 acres of the 420 acre developable land parcel located in the Phoenix, AZ market, subject to a 20-year lease (with three 10 year extension options) that will commence in November 2022. The initial rental payments are estimated to be $5.2 million per annum.

 

13 

 

 

 

CAPITAL EXPENDITURES AND LEASING COSTS (1)
9/30/2022

($000)

 

 

   Nine months ending September 30, 
   2022   2021 
First Generation Costs          
Tenant Improvements  $4,491   $- 
Leasing Costs   1,879    364 
Base Building   2,470    - 
Total First Generation Costs  $8,840   $364 
           
Second Generation Costs          
Tenant Improvements          
Industrial  $5,016   $3,001 
Other   -    1,177 
Total Second Generation Tenant Improvements  $5,016   $4,178 
Leasing Costs          
Industrial  $2,015   $4,711 
Other   123    630 
Total Second Generation Leasing Costs  $2,138   $5,341 
Building Improvements          
Industrial  $13,238   $4,684 
Other   -    509 
Total Second Generation Building Improvements  $13,238   $5,193 
           
Total Second Generation Costs  $20,392   $14,712 
           
Total Capital Expenditures and Leasing Costs  $29,232   $15,076 

 

Footnote

(1) Consolidated costs on a cash basis. Amounts exclude capitalized interest and internal costs, if any. Leasing costs includes payments for lease incentives, if any.

 

14 

 

 

 

PORTFOLIO DATA

9/30/2022

($000)

 

 

 

Asset Class  9/30/2022 ABR (1)   9/30/2022
ABR %		   9/30/2021
ABR % (2)(3)		 
Industrial  $239,539    91.2%   88.8%
Other   23,255    8.8%   11.2%
   $262,794    100.0%   100.0%
                
Credit Ratings (4)  9/30/2022 ABR (1)   9/30/2022
ABR %		   9/30/2021
ABR % (2)(3)		 
Investment Grade  $147,830    56.2%   46.1%
Non-Investment Grade   37,479    14.3%   19.2%
Unrated   77,485    29.5%   34.7%
   $262,794    100.0%   100.0%

 

      As of
9/30/2022(1)		     As of
9/30/2021(2)(3)		 
Weighted-Average Lease Term - ABR             6.1 years     6.6 years 

 

Lease Escalation Data (5)

 

(GRAPHIC) 

 

Footnotes

(1) Based on Annualized Cash Base Rent (“ABR”) for consolidated properties owned as of 9/30/2022.
(2) 9/30/2021 updated to reflect three special purpose industrial properties that were reclassified to Other in 4Q 2021.
(3) 9/30/2021 is restated based on ABR.
(4) Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
(5) Based on consolidated ABR for single-tenant leases (properties 50% leased to a single tenant) owned as of 9/30/2022. Excludes parking operations.

 

15 

 

 

 

SAME STORE DATA 

9/30/2022 

($000)

 (GRAPHIC)

 

Same-Store NOI (1)      Same-Store NOI by Components (1)     
                         
   Consolidated   Industrial   Other 
   Three months ended September 30,   Three months ended September 30,   Three months ended September 30, 
QUARTER  2022   2021   2022   2021   2022   2021 
Total Cash Base Rent  $55,508   $52,858   $49,692   $46,712   $5,816   $6,146 
Tenant Reimbursements   10,063    8,283    8,341    6,898    1,722    1,385 
Property Operating Expenses   (11,646)   (9,317)   (9,059)   (7,474)   (2,587)   (1,843)
Same-Store NOI  $53,925   $51,824   $48,974   $46,136   $4,951   $5,688 
                               
Change in Same-Store NOI   4.1%        6.2%        -13.0%     
                               
Same-Store # of Properties   97    97    88    88    9    9 
                               
Same-Store Percent Leased(2)   99.5%   99.9%   99.8%   100.0%   90.6%   96.8%

 

   Consolidated   Industrial   Other 
   Nine months ended September 30,   Nine months ended September 30,   Nine months ended September 30, 
YEAR TO DATE  2022   2021   2022   2021   2022   2021 
Total Cash Base Rent  $158,298   $152,005   $140,923   $133,699   $17,375   $18,306 
Tenant Reimbursements   27,291    24,736    22,496    20,540    4,795    4,196 
Property Operating Expenses   (32,135)   (28,060)   (24,534)   (22,282)   (7,601)   (5,778)
Same-Store NOI  $153,454   $148,681   $138,885   $131,957   $14,569   $16,724 
                               
Change in Same-Store NOI   3.2%        5.3%        -12.9%     
                               
Same-Store # of Properties   89    89    80    80    9    9 
                               
Same-Store Percent Leased(2)   99.5%   99.9%   99.8%   100.0%   90.6%   96.8%

 

Footnotes

(1) 2021 Industrial/Other updated to reflect two special purpose industrial properties that were reclassified to Other in 4Q 2021.
(2) At 9/30/2022.

 

16 

 

 

 

PORTFOLIO DETAIL BY ASSET CLASS 

9/30/2022 

($000, except square footage)

 

Asset Class  YE 2019(1)   YE 2020(1)   YE 2021   9/30/2022 
Industrial                
% of Cost (2)   81.5%   90.8%   98.1%   98.9%
% of ABR (3)   75.5%   86.3%   88.5%   91.2%
% Leased (4)   97.9%   98.7%   99.8%   99.4%
Wtd. Avg. Lease Term (5)   8.3    7.4    6.9    6.4 
Mortgage Debt  $109,939   $105,419   $70,626   $67,158 
% Investment Grade (3)   45.9%   50.8%   58.9%   59.1%
Square Feet   48,742,014    53,938,155    52,738,438    52,394,032 
                     
Other                    
% of Cost (2)   18.5%   9.2%   1.9%   1.1%
% of ABR (3)   24.5%   13.7%   11.5%   8.8%
% Leased   85.8%   89.3%   89.4%   90.6%
Wtd. Avg. Lease Term (5)   8.5    7.2    3.8    2.5 
Mortgage Debt  $283,933   $32,993   $13,803   $8,855 
% Investment Grade (3)   57.3%   42.0%   27.3%   27.3%
Square Feet   3,876,294    2,171,633    2,089,118    1,701,337 
                     
Construction in progress (6)  $15,208   $79,022   $166,647   $378,269 

  

Footnotes

(1)Three special purpose industrial properties were reclassified to Other in 2021. Prior periods not restated.

(2)Based on gross book value of real estate assets; excludes held for sale assets.

(3)For 2019, 2020, and 2021 percentage of Base Rent, for consolidated properties owned as of each respective period.

(4)For 2021 and 2022 percentage is for Stabilized Portfolio.

(5)For 2019, 2020 and 2021 based on Cash Base Rent for respective year. 2022 based on ABR.

(6)Includes development classified as real estate under construction on a consolidated basis and capital expenditures for our operating properties.

 

17 

 

 

 

INDUSTRIAL PORTFOLIO INFORMATION 

9/30/2022

  

Markets (1)  ABR % as of
9/30/2022  (2)		 
Phoenix, AZ   9.1%
Atlanta, GA   8.9%
Memphis, TN   8.2%
Greenville/Spartanburg, SC   8.0%
Houston, TX   6.1%
Cincinnati/Dayton, OH   5.8%
Indianapolis, IN   5.7%
Dallas/Ft. Worth, TX   5.6%
Nashville, TN   3.9%
Chicago, IL   3.6%
Central Florida   3.3%
Columbus, OH   3.2%
Savannah, GA   2.8%
Jackson, MS   2.6%
St. Louis, MO   2.4%
DC/Baltimore, MD   2.3%
Charlotte, NC   2.3%
New York/New Jersey   2.1%
Cleveland, OH   2.1%
Detroit, MI   2.0%
Total Industrial Portfolio Concentration (3)   90.0%
Industries 

ABR % as of

9/30/2022 (2)

 
Consumer Products   22.6%
Transportation/Logistics   20.3%
E-Commerce   15.3%
Automotive   14.3%
Food   10.0%
Construction/Materials   9.5%
Apparel   2.4%
Retail Department   2.2%
Specialty   1.9%
Other   1.5%
Total Industrial Portfolio Concentration (3)   100.0%

 

Additional Information 
# of Properties   109 
Square Feet   52,394,032 
Weighted-Average Age (Years)(4)   8.6 
Weighted-Average ABR per SF(5)  $4.44 
Weighted-Average Lease Term (Years)(6)   6.4 
% with Fixed Escalation(7)   96.5%
Average Annual Rent Escalation(7)   2.4%
Average Building Size (SF)   480,679 
Average Clear Height (Feet)(8)   32.8 
% Top 25 Markets(9)   77.8%
% Top 50 Markets(9)   91.5%


Footnotes

(1)Based on CoStar.com inventory data.

(2)Based on ABR for consolidated properties owned as of 9/30/2022.

(3)Total shown may differ from detailed amounts due to rounding.

(4)Weighting based on square footage.

(5)Excludes land distribution assets and all vacant square footage.

(6)Weighting based on ABR.

(7)Based on ABR for single-tenant leases (properties 50% leased to a single tenant) owned as of 9/30/2022. Excludes rents from prior tenants. Average Annual Rent Escalation based on next rent step percentages.

(8)Based on internal and external sources.

(9)Percent of ABR based upon CoStar.com inventory data.

 

18 

 

 

 

TOP 15 TENANTS

9/30/2022

 

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
9/30/2022
($000)		   ABR %
as of 9/30/2022
($000) (2)(4)		 
Amazon  Industrial  2026-2033   6    3,864,731    7.2%  $18,141    6.9%
Nissan  Industrial  2027   2    2,971,000    5.5%   12,908    4.9%
Kellogg  Industrial  2027-2029   3    2,801,916    5.2%   9,461    3.6%
Wal-Mart  Industrial  2024-2031   3    2,351,917    4.4%   8,702    3.3%
GXO Logistics  Industrial  2024-2028   3    1,697,475    3.2%   7,271    2.8%
Xerox  Office  2023   1    202,000    0.4%   7,070    2.7%
Undisclosed (5)  Industrial  2031-2035   3    1,090,383    2.0%   6,961    2.6%
Watco  Industrial  2038   1    132,449    0.2%   6,318    2.4%
FedEx  Industrial  2028   2    292,021    0.5%   5,728    2.2%
Morgan Lewis (6)  Office  2024   1    289,432    0.5%   5,648    2.1%
Mars Wrigley  Industrial  2025   1    604,852    1.1%   5,396    2.1%
Undisclosed (5)  Industrial  2034   1    1,318,680    2.5%   5,198    2.0%
Olam  Industrial  2024 & 2037   2    1,196,614    2.2%   4,993    1.9%
Georgia-Pacific  Industrial  2028 & 2031   2    1,283,102    2.4%   4,868    1.9%
Owens Corning(7)  Industrial  2023-2027   3    863,242    1.6%   4,860    1.8%
                                
          34    20,959,814    39.1%  $113,523    43.2%

  

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 as of 9/30/2022.

(5)Lease restricts certain disclosures.

(6)Includes parking operations.

(7)Subsequent to 9/30/2022, the 2023 lease extended to 9/30/2026.

 

19 

 

 

 

QUARTERLY LEASING SUMMARY 

9/30/2022 

 

NEW LEASES - FIRST GENERATION(1)  

   Location       Lease
Expiration 
Date		  Sq. Ft.  

New Base Rent

Per Annum

($000)(2)

      

New Cash Base 

Rent Per Annum

($000)(2) 

     
   Industrial                                  
1  Lakeland(3)  FL     10/2027   36,274   $266      $254    
1  TOTAL NEW LEASES - FIRST GENERATION   36,274   $266        $254      

 

SECOND GENERATION  

   Location      Prior 
Term		   Lease Expiration 
Date		  Sq. Ft.  

New Base Rent 

Per Annum 

($000)(2) 

  

Prior Base Rent 

Per Annum 

($000)(4) 

  

New Cash Base 

Rent Per Annum 

($000)(2) 

  

Prior Cash Base 

Rent Per Annum 

($000)(4) 

 
   NEW LEASE                                    
   Other                                    
1  Kalamazoo  MI     08/2025   3,880   $42   $37   $42   $37 
1  TOTAL NEW LEASES - OTHER - SECOND GENERATION   3,880   $42   $37   $42   $37 
   LEASE EXTENSIONS                                    
   Industrial                                    
1  Tampa  FL    02/2023  02/2026   229,605   $1,693   $1,152   $1,739   $1,236 
1  TOTAL EXTENDED LEASES - INDUSTRIAL - SECOND GENERATION   229,605   $1,693   $1,152   $1,739   $1,236 
                             
2  TOTAL NEW AND EXTENDED LEASES - SECOND GENERATION   233,485   $1,735   $1,189   $1,781   $1,273 

  

Footnotes 

(1)Leased first generation space that was developed or acquired vacant.

(2)Assumes 12 months rent from the later of 10/1/2022 or lease commencement/extension, excluding free rent periods as applicable.

(3)Lease expiration date is estimated.

(4)Rent from prior tenants for square feet leased.

  

20 

 

 

 

LEASE ROLLOVER SCHEDULE - INDUSTRIAL 

9/30/2022 

($000)

  

Year   Number of
Leases
Expiring		   ABR as of 9/30/2022   Percent of ABR
as of
9/30/2022		   Percent of ABR
as of
9/30/2021(2)		 
2022 - remaining    0   $-    0.0%   0.0%
2023    3    5,136    2.1%   4.1%
2024    21    26,365    11.0%   13.9%
2025    13    17,730    7.4%   9.7%
2026    23    27,890    11.6%   11.2%
2027    14    36,460    15.2%   13.2%
2028    7    15,220    6.4%   4.6%
2029    10    22,943    9.6%   7.8%
2030    9    26,087    10.9%   10.3%
2031    11    18,868    7.9%   4.7%
Thereafter    17    42,840    17.9%   19.0%
                      
Total (1)    128   $239,539    100.0%     

  

 

 

Footnotes 

(1)Total shown may differ from detailed amounts due to rounding.

(2)9/30/2021 updated to reflect three special purpose industrial properties that were reclassified to Other in 4Q 2021.

 

21 

 

 

 

LEASE ROLLOVER SCHEDULE - OTHER PROPERTIES 

9/30/2022 

($000)

 

Year   Number of
Leases
Expiring		   ABR as of 9/30/2022   Percent of ABR
as of
9/30/2022		   Percent of ABR
as of
9/30/2021(2)		 
2022 - remaining    0   $-    0.0%   0.0%
2023    4    7,244    33.2%   25.9%
2024    5    9,040    41.5%   32.0%
2025    4    2,863    13.1%   10.0%
2026    1    286    1.3%   0.9%
2027    1    119    0.5%   0.4%
2028    1    146    0.7%   7.3%
2029    0    -    0.0%   0.0%
2030    0    -    0.0%   0.0%
2031    1    1,795    8.2%   6.7%
Thereafter    1    311    1.4%   1.0%
                      
Total (1)    18   $21,804    100.0%     

 

 

 

Footnotes

(1)Total shown may differ from detailed amounts due to rounding.

(2)9/30/2021 updated to reflect three special purpose industrial properties that were reclassified to Other in 4Q 2021.

 

22 

 

 

  PROPERTY LEASES AND VACANCIES - 9/30/2022 img

 

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
9/30/2022
($000)		   Annualized Cash
Base Rent
(“ABR”) as of
9/30/2022
($000)		 
INDUSTRIAL PROPERTIES                        
SINGLE TENANT                              
   WAREHOUSE/DISTRIBUTION                           
2023  8/31/2023  Houston, TX  10535 Red Bluff Rd.  Pasadena  TX  --   257,835    1,231    1,294 
      Dallas/Ft. Worth, TX  3737 Duncanville Rd.  Dallas  TX  13   510,400    1,713    1,768 
   10/31/2023  Atlanta, GA  493 Westridge Pkwy.  McDonough  GA  --   676,000    2,031    2,074 
2024  1/31/2024  Greenville/Spartanburg, SC  70 Tyger River Dr.  Duncan  SC  --   408,000    2,001    2,035 
      Indianapolis, IN  1285 W. State Road 32  Lebanon  IN  --   741,880    2,281    2,530 
      Memphis, TN  6495 Polk Ln.  Olive Branch  MS  --   118,211    495    503 
   3/31/2024  Cleveland, TN  1520 Lauderdale Memorial Hwy.  Cleveland  TN  --   851,370    2,658    2,758 
      Indianapolis, IN  4600 Albert S White Dr.  Whitestown  IN  --   53,240    264    298 
      Columbus, OH  2155 Rohr Rd.  Lockbourne  OH  --   320,190    1,800    1,801 
   4/30/2024  Memphis, TN  11555 Silo Dr.  Olive Branch  MS  --   927,742    2,855    2,993 
      Nashville, TN  6050 Dana Way  Antioch  TN  --   11,238    146    146 
   5/31/2024  Atlanta, GA  7225 Goodson Rd.  Union City  GA  --   370,000    1,442    1,476 
   6/30/2024  Cincinnati/Dayton, OH  575-599 Gateway Blvd.  Monroe  OH  --   194,936    1,024    1,003 
   7/31/2024  Greenville/Spartanburg, SC  5795 North Blackstock Rd.  Spartanburg  SC  --   341,660    1,672    1,688 
      Greenville/Spartanburg, SC  231 Apple Valley Rd.  Duncan  SC  --   75,320    360    360 
   8/31/2024  Houston, TX  9701 New Decade Dr.  Pasadena  TX  --   102,863    530    551 
      Atlanta, GA  41 Busch Dr.  Cartersville  GA  --   119,295    596    596 
   9/30/2024  Memphis, TN  3820 Micro Dr.  Millington  TN  --   701,819    1,985    1,965 
   10/31/2024  Dallas/Ft. Worth, TX  2115 East Belt Line Rd.  Carrollton  TX  --   58,202    228    254 
      Dallas/Ft. Worth, TX  17505 Interstate Hwy. 35W  Northlake  TX  --   500,556    2,269    2,237 
   11/30/2024  DC/Baltimore, MD  150 Mercury Way  Winchester  VA  --   324,535    1,716    1,687 
   12/31/2024  Indianapolis, IN  4600 Albert S White Dr.  Whitestown  IN  --   95,832    469    444 
      Chicago, IL  3686 South Central Ave.  Rockford  IL  --   93,000    395    395 
      Chicago, IL  749 Southrock Dr.  Rockford  IL  --   150,000    638    645 

 

23 

 

 

  PROPERTY LEASES AND VACANCIES - 9/30/2022 img

  

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
9/30/2022
($000)		   Annualized Cash
Base Rent
(“ABR”) as of
9/30/2022
($000)		 
INDUSTRIAL PROPERTIES                        
   WAREHOUSE/DISTRIBUTION                           
2025  3/31/2025  Atlanta, GA  95 International Pkwy.  Adairsville  GA  --   124,251    653    652 
   4/30/2025  Houston, TX  10565 Red Bluff Rd.  Pasadena  TX  --   248,240    1,237    1,234 
   5/31/2025  Atlanta, GA  7875 White Rd. SW  Austell  GA  --   604,852    5,323    5,396 
   6/30/2025  Savannah, GA  1319 Dean Forest Rd.  Savannah  GA  --   355,527    1,818    1,819 
   7/31/2025  Indianapolis, IN  5352 Performance Way  Whitestown  IN  --   380,000    1,278    1,315 
      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    434 
      Savannah, GA  1315 Dean Forest Rd.  Savannah  GA  --   88,503    525    540 
   9/30/2025  Greenville/Spartanburg, SC  7870 Reidville Rd.  Greer  SC  --   396,073    1,666    1,656 
      Atlanta, GA  95 International Pkwy.  Adairsville  GA  --   100,960    507    507 
      Nashville, TN  6050 Dana Way  Antioch  TN  --   117,600    410    424 
   12/31/2025  Phoenix, AZ  4445 N. 169th Ave.  Goodyear  AZ  --   160,140    1,007    984 
      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    615 
   2/28/2026  Central Florida  3102 Queen Palm Dr.  Tampa  FL  --   229,605    1,693    1,230 
   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    2,339 
   6/30/2026  Greenville/Spartanburg, SC  425 Apple Valley Rd.  Duncan  SC  --   163,680    752    748 
      Columbus, OH  351 Chamber Dr.  Chillicothe  OH  --   136,495    607    607 
   7/31/2026  Columbus, OH  1860 Walcutt Rd.  Columbus  OH  --   97,934    501    480 
      Savannah, GA  1004 Trade Center Pkwy.  Savannah  GA  --   270,252    1,433    1,403 
   8/31/2026  Savannah, GA  1004 Trade Center Pkwy.  Savannah  GA  --   149,415    821    816 
   9/30/2026  Greenville/Spartanburg, SC  425 Apple Valley Rd.  Duncan  SC  --   163,680    669    687 
      St. Louis, MO  3931 Lakeview Corporate Dr.  Edwardsville  IL  --   769,500    2,691    2,716 

 

24 

 

 

 

PROPERTY LEASES AND VACANCIES - 9/30/2022

 

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
9/30/2022
($000)		   Annualized Cash
Base Rent
(“ABR”) as of
9/30/2022
($000)		 
INDUSTRIAL PROPERTIES                     
   WAREHOUSE/DISTRIBUTION                  
2026  9/30/2026  Nashville, TN  6050 Dana Way  Antioch  TN  --   67,200    394    382 
      Phoenix, AZ  9494 W. Buckeye Rd.  Tolleson  AZ  --   186,336    1,109    1,081 
   10/31/2026  Greenville/Spartanburg, SC  235 Apple Valley Rd.  Duncan  SC  --   177,320    962    943 
      Charlotte, NC  2203 Sherrill Dr.  Statesville  NC  --   639,800    2,796    2,768 
      Cleveland, OH  10345 Philipp Pkwy.  Streetsboro  OH  --   649,250    2,883    2,824 
   11/30/2026  Erwin, NY  736 Addison Rd.  Erwin  NY  --   408,000    1,514    1,522 
      Philadelphia, PA  250 Rittenhouse Cir.  Bristol  PA  --   241,977    1,146    1,252 
   12/31/2026  Houston, TX  4600 Underwood Rd.  Deer Park  TX  --   402,648    1,507    1,727 
      Indianapolis, IN  180 Bob Glidden Blvd.  Whiteland  IN  --   179,530    787    781 
      Indianapolis, IN  76 Bob Glidden Blvd.  Whiteland  IN  --   168,480    787    751 
2027  1/31/2027  Kansas City, MO  27200 West 157th St.  New Century  KS  --   446,500    1,240    1,158 
   2/28/2027  Central Florida  5275 Drane Field Rd.  Lakeland  FL  --   68,420    388    390 
      Jackson, MS  554 Nissan Pkwy.  Canton  MS  --   1,466,000    6,200    6,328 
   3/31/2027  Greenville/Spartanburg, SC  417 Apple Valley Rd.  Duncan  SC  --   195,000    1,052    1,024 
   4/30/2027  Nashville, TN  200 Sam Griffin Rd.  Smyrna  TN  --   1,505,000    6,560    6,580 
      San Antonio, TX  16407 Applewhite Rd.  San Antonio  TX  --   849,275    2,994    3,015 
   7/31/2027  Savannah, GA  335 Morgan Lakes Industrial Blvd.  Pooler  GA  --   499,500    2,080    2,048 
   8/31/2027  Cincinnati/Dayton, OH  600 Gateway Blvd.  Monroe  OH  --   994,013    3,945    3,457 
      Columbus, OH  200 Arrowhead Dr.  Hebron  OH  --   400,522    1,449    1,422 
   9/30/2027  Central Florida  3775 Fancy Farms Rd.  Plant City  FL  --   330,176    2,068    1,865 
      Memphis, TN  1550 Hwy 302  Byhalia  MS  --   615,600    2,439    2,518 
   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    3,914 
   11/30/2027  Phoenix, AZ  1515 South 91st Ave.  Phoenix  AZ  --   334,222    2,596    2,487 
2028  1/31/2028  Atlanta, GA  490 Westridge Pkwy.  McDonough  GA  --   1,121,120    3,737    3,731 

 

25 

 

 

 

PROPERTY LEASES AND VACANCIES - 9/30/2022

 

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
9/30/2022
($000)		   Annualized Cash
Base Rent
(“ABR”) as of
9/30/2022
($000)		 
INDUSTRIAL PROPERTIES                     
   WAREHOUSE/DISTRIBUTION                  
2028  3/31/2028  New York/New Jersey  29-01 Borden Ave./29-10 Hunters Point Ave.  Long Island City  NY  --   140,330    5,135    5,128 
   5/31/2028  Memphis, TN  6495 Polk Ln.  Olive Branch  MS  --   151,691    759    600 
      Nashville, TN  6050 Dana Way  Antioch  TN  --   50,400    309    297 
   8/31/2028  Houston, TX  4100 Malone Dr.  Pasadena  TX  --   233,190    1,359    1,298 
      Indianapolis, IN  4900 Albert S White Dr.  Whitestown  IN  --   63,840    309    308 
   10/31/2028  Atlanta, GA  1625 Oakley Industrial Blvd.  Fairburn  GA  --   907,675    4,223    3,858 
2029  4/30/2029  Greenville/Spartanburg, SC  230 Apple Valley Rd.  Duncan  SC  --   275,400    1,420    1,349 
   6/30/2029  Memphis, TN  11624 S. Distribution Cv.  Olive Branch  MS  --   1,170,218    4,101    3,872 
   7/31/2029  Memphis, TN  8500 Nail Rd.  Olive Branch  MS  --   716,080    2,751    2,750 
   8/31/2029  Dallas/Ft. Worth, TX  8601 E. Sam Lee Ln.  Northlake  TX  --   1,214,526    4,278    4,129 
   9/30/2029  Indianapolis, IN  1621 Veterans Memorial Pkwy. E.  Lafayette  IN  --   309,400    1,427    1,204 
      Chicago, IL   6225 E. Minooka Rd.  Minooka  IL  --   1,034,200    2,931    2,780 
   11/21/2029  Columbus, OH  1860 Walcutt Rd.  Columbus  OH  --   194,796    983    931 
   11/30/2029  Chicago, IL  1460 Cargo Court  Minooka  IL  --   705,661    2,857    2,767 
   12/31/2029  Greenville/Spartanburg, SC  402 Apple Valley Rd.  Duncan  SC  --   235,600    1,263    1,157 
      Chicago, IL  200 International Pkwy. S.  Minooka  IL  --   473,280    2,138    2,004 
2030  1/31/2030  Dallas/Ft. Worth, TX  3201 N. Houston School Rd.  Lancaster  TX  --   468,300    1,669    1,588 
   3/31/2030  Memphis, TN  549 Wingo Rd.  Byhalia  MS  --   855,878    4,388    4,454 
   5/31/2030  St. Louis, MO  4015 Lakeview Corporate Dr.  Edwardsville  IL  --   1,017,780    3,460    2,979 
   6/30/2030  Richmond, VA  2601 Bermuda Hundred Rd.  Chester  VA  3   1,034,470    3,851    4,010 
      Cincinnati/Dayton, OH  700 Gateway Blvd.  Monroe  OH  --   1,299,492    5,515    5,282 
      Dallas/Ft. Worth, TX  1704 S. I-45  Hutchins  TX  --   120,960    617    588 
   8/31/2030  Central Florida  3400 NW 35th St.  Ocala  FL  --   617,055    3,014    2,857 
   9/30/2030  Phoenix, AZ  255 143rd Ave.  Goodyear  AZ  --   801,424    4,193    4,000 
2031  2/28/2031  Greenville/Spartanburg, SC  1021 Tyger Lake Rd.  Spartanburg  SC  --   213,200    1,043    987 

 

26 

 

 

 

PROPERTY LEASES AND VACANCIES - 9/30/2022

 

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
9/30/2022
($000)		   Annualized Cash
Base Rent
(“ABR”) as of
9/30/2022
($000)		 
INDUSTRIAL PROPERTIES                     
   WAREHOUSE/DISTRIBUTION                  
2031  3/31/2031  Indianapolis, IN  19 Bob Glidden Blvd.  Whiteland  IN  --   530,400    2,190    2,042 
   5/31/2031  DC/Baltimore, MD  291 Park Center Dr.  Winchester  VA  --   344,700    1,726    1,625 
   6/30/2031  Nashville, TN  6050 Dana Way  Antioch  TN  --   352,275    1,543    1,435 
   7/31/2031  Atlanta, GA  51 Busch Dr.  Cartersville  GA  --   328,000    1,646    1,479 
   9/30/2031  Atlanta, GA  41 Busch Dr.  Cartersville  GA  --   276,705    1,590    1,494 
   11/30/2031  Indianapolis, IN  3751 S. CR 500 E.  Whitestown  IN  --   1,016,244    3,897    3,557 
   12/18/2031  DC/Baltimore, MD  80 Tyson Dr.  Winchester  VA  --   400,400    2,368    2,242 
   12/31/2031  Phoenix, AZ  1515 South 91st Ave.  Phoenix  AZ  --   161,982    1,274    1,137 
      Cincinnati/Dayton, OH  200 Richard Knock Way  Walton  KY  --   232,500    1,271    1,160 
      Columbus, OH  351 Chamber Dr.  Chillicothe  OH  --   352,655    1,903    1,710 
2032  2/28/2032  Cincinnati/Dayton, OH  675 Gateway Blvd.  Monroe  OH  --   143,664    938    878 
   4/30/2032  Houston, TX  13930 Pike Rd.  Missouri City  TX  --   -    2,123    2,131 
      Cincinnati/Dayton, OH  300 Richard Knock Way  Walton  KY  --   544,320    2,411    2,204 
   8/24/2032  Detroit, MI  16950 Pine Dr.  Romulus  MI  --   500,023    2,567    2,515 
2033  3/31/2033  Phoenix, AZ  3405 S. McQueen Rd.  Chandler  AZ  --   201,784    4,498    4,086 
   6/30/2033  Columbus, OH  191 Arrowhead Dr.  Hebron  OH  --   250,410    1,057    798 
2034  4/30/2034  Raleigh, NC  1133 Poplar Creek Rd.  Henderson  NC  --   147,448    548    498 
   10/31/2034  Champaign-Urbana, IL  1001 Innovation Rd.  Rantoul  IL  --   813,126    4,196    3,992 
   12/31/2034  Greenville/Spartanburg, SC  27 Inland Pkwy.  Greer  SC  --   1,318,680    5,544    5,198 
2035  6/30/2035  Dallas/Ft. Worth, TX  2115 East Belt Line Rd.  Carrollton  TX  --   298,653    1,361    1,173 
   10/22/2035  Detroit, MI  2860 Clark St.  Detroit  MI  --   189,960    2,204    2,204 
2036  5/31/2036  Central Florida  5275 Drane Field Rd.  Lakeland  FL  --   117,440    787    692 
      Charlotte, NC  671 Washburn Switch Rd.  Shelby  NC  --   673,425    2,786    2,661 
   11/30/2036  Phoenix, AZ  17510 W. Thomas Rd.  Goodyear  AZ  --   468,182    4,304    3,794 
2037  3/31/2037  Dallas/Ft. Worth, TX  4005 E. I-30  Grand Prairie  TX  --   215,000    1,872    1,698 

 

27 

 

 

 

PROPERTY LEASES AND VACANCIES - 9/30/2022

 

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
9/30/2022
($000)		   Annualized Cash
Base Rent
(“ABR”) as of
9/30/2022
($000)		 
INDUSTRIAL PROPERTIES                     
   WAREHOUSE/DISTRIBUTION                  
2037  5/31/2037  Phoenix, AZ  8989 W Buckeye Rd.  Phoenix  AZ  --  268,872   2,368    2,000 
2038  3/31/2038  Houston, TX  13901/14035 Industrial Rd.  Houston  TX  --   132,449    6,773    6,318 
N/A  Vacancy  Central Florida  3775 Fancy Farms Rd.  Plant City  FL  --   180,308    -    - 
      Nashville, TN  6050 Dana Way  Antioch  TN  --   75,815    -    - 
   WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - SINGLE TENANT      52,183,212   $247,188   $238,814 
                                  
MULTI-TENANT / VACANCY (5)(6)                     
N/A  Various  Greenville/Spartanburg, SC  7820 Reidville Rd  Greer  SC  4, 14
(62%)		   210,820    761    725 
   MULTI-TENANT/VACANCY WAREHOUSE/DISTRIBUTION TOTAL      210,820   $761   $725 
                                  
INDUSTRIAL TOTAL/WEIGHTED AVERAGE     99.4% Leased (8)   52,394,032   $247,949   $239,539 

 

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PROPERTY LEASES AND VACANCIES - 9/30/2022 

 

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  9/30/2022
($000)		   Annualized Cash Base Rent (“ABR”)  as of 9/30/2022
($000)		 
OTHER PROPERTIES                     
SINGLE TENANT                             
2023  9/30/2023  Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   8,070    -    - 
      Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   1,220    37    37 
   12/14/2023  South Bay/San Jose, CA  3333 Coyote Hill Rd.  Palo Alto  CA  --  Office   202,000    6,642    7,070 
2024  1/31/2024  Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   289,432    4,280    4,197 
   5/31/2024  Charlotte, NC  3476 Stateview Blvd.  Fort Mill  SC  12  Office   169,083    2,014    2,072 
      Charlotte, NC  3480 Stateview Blvd.  Fort Mill  SC  12  Office   169,218    2,088    2,074 
2025  5/31/2025  Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   2,641    283    283 
   12/19/2025  Owensboro, KY  1901 Ragu Dr.  Owensboro  KY  7  Heavy Manufacturing   443,380    1,882    1,933 
2027  1/31/2027  Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   1,975    154    119 
2031  11/30/2031  New York/New Jersey  4 Apollo Dr.  Whippany  NJ  12  Office   123,734    2,041    1,795 
2048  12/31/2048  DC/Baltimore, MD  30 Light St.  Baltimore  MD  --  Other   -    311    311 
N/A  Vacancy  Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   699    -    - 
   N/A  Philadelphia, PA  1701 Market St.  Philadelphia  PA  12  Office   -    1,451    1,451 
   SINGLE TENANT OTHER TOTAL               1,411,452   $21,183   $21,342 
                                     
MULTI-TENANT / VACANCY (5)(6)                              
N/A  Various  West Michigan  6938 Elm Valley Dr.  Kalamazoo  MI  4, 12, 15
(35%)		  Warehouse/Office   150,945    588    588 
      Phoenix, AZ  13430 North Black Canyon Fwy.  Phoenix  AZ  4, 12
(56%)		  Office   138,940    1,205    1,325 
   MULTI-TENANT/VACANCY OTHER TOTAL         289,885   $1,793   $1,913 
                                     
TOTAL OTHER/WEIGHTED AVERAGE    90.6% Leased   1,701,337   $22,976   $23,255 
                                     
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE  99.1% Leased (8)   54,095,369   $270,925   $262,794 

 

29 

 

 

 

PROPERTY LEASES AND VACANCIES - 9/30/2022 

 

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  9/30/2022
($000)		   Annualized Cash Base Rent (“ABR”)  as of 9/30/2022
($000)		   9/30/2022
Debt Balance
($000)		  Debt Maturity (9) 
NON-CONSOLIDATED PROPERTIES                       
NNN MFG COLD JV PROPERTIES                                  
2023  12/31/2023  Nashville, TN  120 Southeast Pkwy. Dr.  Franklin  TN  10   289,330    20%   833    735    381,000   01/2024
2024  4/30/2024  Portland/South Portland, ME  113 Wells St.  North Berwick  ME  10   993,685    20%   1,672    1,627    -   -- 
   5/31/2024  Bingen, WA  901 East Bingen Point Way  Bingen  WA  10   124,539    20%   1,703    2,748    -   -- 
2025  6/30/2025  Nashville, TN  301 Bill Bryan Blvd.  Hopkinsville  KY  10   424,904    20%   1,698    1,687    -   -- 
      Elizabethtown-Fort Knox, KY  730 North Black Branch Rd.  Elizabethtown  KY  10   167,770    20%   709    537    -   -- 
      Elizabethtown-Fort Knox, KY  750 North Black Branch Rd.  Elizabethtown  KY  10   539,592    20%   2,630    2,838    -   -- 
      Owensboro, KY  4010 Airpark Dr.  Owensboro  KY  10   211,598    20%   990    1,208    -   -- 
   7/14/2025  Charlotte, NC  590 Ecology Ln.  Chester  SC  10   420,597    20%   2,190    2,532    -   -- 
2026  11/30/2026  Lumberton, NC  2880 Kenny Biggs Rd.  Lumberton  NC  10   423,280    20%   1,714    1,630    -   -- 
2027  8/31/2027  Greenville/Spartanburg, SC  50 Tyger River Dr.  Duncan  SC  10   221,833    20%   1,062    1,103    -   -- 
   12/31/2027  Cincinnati/Dayton, OH  10590 Hamilton Ave.  Cincinnati  OH  10   264,598    20%   861    813    -   -- 
2028  9/30/2028  West Michigan  904 Industrial Rd.  Marshall  MI  10   246,508    20%   835    785    -   -- 
2029  11/24/2029  Anniston-Oxford, AL  318 Pappy Dunn Blvd.  Anniston  AL  10   276,782    20%   1,842    1,744    -   -- 
2030  10/31/2030  Detroit, MI  43955 Plymouth Oaks Blvd.  Plymouth  MI  10   311,612    20%   1,872    1,609    -   -- 
2031  6/30/2031  Cincinnati/Dayton, OH  10000 Business Blvd.  Dry Ridge  KY  10   336,350    20%   1,607    1,431    -   -- 
   10/31/2031  Chicago, IL  1020 W. Airport Rd.  Romeoville  IL  10   188,166    20%   3,891    3,665    -   -- 
2032  10/31/2032  Detroit, MI  26700 Bunert Rd.  Warren  MI  --   260,243    20%   4,194    3,675    25,850   11/2032
2033  9/30/2033  Crossville, TN  900 Industrial Blvd.  Crossville  TN  10   222,200    20%   704    595    -   -- 
2034  9/30/2034  Las Vegas, NV  5670 Nicco Way  North Las Vegas  NV  10   180,235    20%   2,825    2,458    -   -- 
2035  3/31/2035  Houston, TX  13863 Industrial Rd.  Houston  TX  10   187,800    20%   2,604    2,302    -   -- 
      Houston, TX  7007 F.M. 362 Rd.  Brookshire  TX  10   262,095    20%   2,041    1,806    -   -- 
2042  5/31/2042  Columbus, GA  4801 North Park Dr.  Opelika  AL  10   165,493    20%   3,465    2,766    -   -- 
                                                
NNN MFG COLD JV TOTAL/WEIGHTED AVERAGE       100% Leased   6,719,210        $41,942   $40,294   $406,850     

 

30 

 

 

  PROPERTY LEASES AND VACANCIES - 9/30/2022 (GRAPHIC)

 

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  9/30/2022
($000)		   Annualized Cash Base Rent (“ABR”)  as of 9/30/2022
($000)		   9/30/2022
Debt Balance
($000)		   Debt Maturity (9) 
NON-CONSOLIDATED PROPERTIES                                 
NNN OFFICE JV PROPERTIES                                      
2022  12/31/2022  Chicago, IL  231 N. Martingale Rd.  Schaumburg  IL  11   317,198    20%   4,598    4,950    131,520   09/2023
2023  3/31/2023  Dallas/Ft. Worth, TX  8900 Freeport Pkwy.  Irving  TX  11   268,445    20%   4,926    4,789    -   -- 
2025  3/14/2025  Dallas/Ft. Worth, TX  601 & 701 Experian Pkwy.  Allen  TX  11   292,700    20%   3,240    3,073    -   -- 
   6/30/2025  Atlanta, GA  2500 Patrick Henry Pkwy.  McDonough  GA  11   111,911    20%   1,628    1,495    -   -- 
   12/31/2025  Dallas/Ft. Worth, TX  4001 International Pkwy.  Carrollton  TX  11   138,443    20%   2,534    2,543    -   -- 
2026  3/31/2026  Columbus, OH  500 Olde Worthington Rd.  Westerville  OH  11   97,000    20%   1,345    1,260    -   -- 
2027  6/30/2027  Kansas City, MO  3902 Gene Field Rd.  St. Joseph  MO  11   98,849    20%   2,116    2,110    -   -- 
   7/6/2027  Columbus, OH  2221 Schrock Rd.  Columbus  OH  11   42,290    20%   684    683    -   -- 
   8/7/2027  Philadelphia, PA  25 Lakeview Dr.  Jessup  PA  11   150,000    20%   2,330    2,326    -   -- 
2031  1/10/2031  Houston, TX  810 Gears Rd.  Houston  TX  11, 12   68,985    20%   1,201    1,425    -   -- 
2032  4/30/2032  Charlotte, NC  1210 AvidXchange Ln.  Charlotte  NC  --   201,450    20%   6,025    5,699    46,900    12/2023
01/2033 		 
2035  4/30/2035  Parachute, CO  143 Diamond Ave.  Parachute  CO  11, 12, 15   49,024    20%   1,157    1,269    -   -- 
N/A  Vacancy  Houston, TX  810 Gears Rd.  Houston  TX  11, 12   9,910    20%   -    -    -   -- 
                                                
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE        99.5% Leased   1,846,205        $31,784   $31,622   $178,420     

 

31 

 

 

  PROPERTY LEASES AND VACANCIES - 9/30/2022 (GRAPHIC)

 

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  9/30/2022
($000)		   Annualized Cash Base Rent (“ABR”)  as of 9/30/2022
($000)		   9/30/2022
Debt Balance
($000)		   Debt Maturity (9) 
OTHER NON-CONSOLIDATED PROPERTIES                                      
2036  8/31/2036  Houston, TX  2203 North Westgreen Blvd.  Katy  TX  --   274,000    25%   6,971    6,971    49,259   12/2022
                                                
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE        100% Leased   274,000        $6,971   $6,971   $49,259     
                                                
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE        99.1% Leased   8,839,415        $80,697   $78,887   $634,529     

 

Footnotes

1 Based on CoStar.com inventory data.
2 Square footage leased or available.
3 Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet).
4 Represents percent leased as of 9/30/2022.
5 Multi-tenant properties are properties less than 50% leased to a single tenant.
6 The multi-tenanted / vacant properties incurred approximately $1.9 million in operating expenses, net for the nine months ended 9/30/2022.
7 LXP has a 71.1% interest in this property.
8 Percent leased is for Stabilized Portfolio at 9/30/2022.
9 Interest rates range from 0.25% to 5.4% at 9/30/2022.
10 All debt is cross-collateralized and cross-defaulted.
11 All debt is cross-collateralized and cross-defaulted. Subsequent to 9/30/2022, $10.4 million satisfied, $121.1 million outstanding.
12 Property held for sale at 9/30/2022.
13 Subsequent to 9/30/2022, lease extended to 9/30/2026.
14 Subsequent to 9/30/2022, remaining space leased for a 62 month term.
15 Subsequent to 9/30/2022, property sold.

 

32 

 

 

 

MORTGAGES AND NOTES PAYABLE

9/30/2022

  

Property  Footnotes    Debt
Balance
($000)		   Interest
Rate (%)		   Maturity (a)   Current Estimated Annual Debt Service ($000) (b)    Balloon Payment
($000)		 
INDUSTRIAL (f)                             
Long Island City, NY      $26,042    3.500%   03/2028  $5,062   $- 
Goodyear, AZ       41,116    4.290%   08/2031   2,484    33,399 
Industrial Subtotal/Wtd. Avg./Years Remaining (c)      $67,158    3.984%   7.5   $7,546   $33,399 
                              
OFFICE (f)                             
Palo Alto, CA      $8,855    3.970%   12/2023  $7,059   $- 
Office Subtotal/Wtd. Avg./Years Remaining (c)      $8,855    3.970%   1.2   $7,059   $- 
                              
Subtotal/Wtd. Avg./Years Remaining (c)      $76,013    3.982%   6.8   $14,605   $33,399 
                              
CORPORATE (e)                             
Senior Notes      $198,932    4.400%   06/2024  $8,753   $198,932 
Term Loan  (g)(h)    300,000    2.722%   01/2025   8,279    300,000 
Revolving Credit Facility  (g)    130,000    3.940%   07/2026   5,193    130,000 
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  (i)    129,120    4.482%   04/2037   5,868    129,120 
Subtotal/Wtd. Avg./Years Remaining (c)      $1,558,052    3.089%   6.5   $48,393   $1,558,052 
                              
Total/Wtd. Avg./Years Remaining (c)  (d)   $1,634,065    3.131%   6.5   $62,998   $1,591,451 

33 

 

 

 

MORTGAGES AND NOTES PAYABLE (CONTINUED)

9/30/2022

($000)

 

   GAAP Balance  

Deferred Loan

Costs, net

   Discounts   Gross Balance 
                 
Mortgages and notes payable (f)  $74,891   $1,122   $-   $76,013 
Revolving credit facility borrowings (e)   130,000    -    -    130,000 
Term loans payable (e)   298,834    1,166    -    300,000 
Senior notes payable(e)   988,954    6,643    3,335    998,932 
Trust preferred securities (e)   127,669    1,451    -    129,120 
Consolidated debt  $1,620,348   $10,382   $3,335   $1,634,065 

 

Footnotes

(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)Total shown may differ from detailed amounts due to rounding.

(d)See reconciliations of non-GAAP measures in this document.

(e)Unsecured.

(f)Secured.

(g)LXP amended its revolving credit facility and 2025 term loan with a new revolving credit facility and the continuation of the 2025 term loan (the “2022 Credit Agreement”). The 2022 Credit Agreement includes the following, among other items, (i) extended the maturity date of the revolving portion to July 2026, (ii) reduced the applicable margin for the revolving portion by five basis points to a range from 0.725% to 1.40%, and (iii) transitioned the facility to SOFR.

(h)The Term SOFR portion of the interest rate was swapped to obtain a current fixed rate of 2.722%

(i)Rate is three month LIBOR plus 170 bps.

 

34 

 

 

 

DEBT MATURITY SCHEDULE

9/30/2022

($000)

 

Consolidated Properties 
Year   Mortgage
Scheduled
 Amortization		   Mortgage
Balloon Payments		   Corporate Debt 
2022 - remaining   $2,859   $-   $- 
2023    12,265    -    - 
2024    5,373    -    198,932 
2025    5,570    -    300,000 
2026    5,773    -    130,000 
    $31,840   $-   $628,932 

 

Debt Maturity Profile (1)

 

 

 

Footnotes

(1)Percentage denotes weighted-average interest rate.

 

35 

 

 

 

DEBT COVENANTS (1)

 

 

CORPORATE LEVEL DEBT        
   MUST BE:   9/30/2022 
Bank Loans(2):        
         
Maximum Leverage  < 60%   39.6%
Fixed Charge Coverage  > 1.5x   3.3x
Recourse Secured Indebtedness Ratio  < 10% cap value   0.0%
Secured Indebtedness Ratio  < 40%   4.6%
Unsecured Debt Service Coverage  > 2.0x   5.0x
Unencumbered Leverage  < 60%   38.5%
         
Bonds:        
         
Debt to Total Assets  < 60%   34.0%
Secured Debt to Total Assets  < 40%   1.6%
Debt Service Coverage  > 1.5x   5.4x
Unencumbered Assets to Unsecured Debt  > 150%   294.3%

 

Footnotes

(1)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, 2022 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date and applicable. These calculations are presented to show LXP’s compliance with such covenants only and are not measures of LXP’s liquidity or performance.

(2)Calculated in accordance with the 2022 Credit Agreement dated July 5, 2022.

 

36 

 

 

COMPONENTS OF NET ASSET VALUE

9/30/2022

($000)

  

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.

 

Consolidated properties nine-month net operating income (NOI) (1)
Industrial  $169,921 
Other   6,869 
Total Net Operating Income  $176,790 
      
LXP’s share of non-consolidated nine-month NOI (1)     
NNN OFFICE JV     
Office  $4,267 
NNN MFG Cold JV     
Industrial  $5,932 
OTHER JV     
Other  $1,184 
      
Other income     
Advisory fees  $4,263 

 

   Nine months ended 
NOI for NAV Reconciliation:  9/30/2022 
NOI as reported  $183,499 
Adjustments to NOI:     
Disposed of properties   (3,878)
Leases with free rent period   2,742 
Leases not commenced   3,371 
Held for sale assets   (7,819)
Assets acquired in 2022   (1,377)
Assets less than 70% leased / Other   252 
NOI for NAV  $176,790 
      
In service assets not fairly valued by capitalized NOI method (1)     
Wholly-owned assets acquired in 2022  $128,283 
Wholly-owned assets less than 70% leased  $69,341 
      
Add other assets:     
Assets held for sale - consolidated  $73,761 
Assets held for sale - non-consolidated - LXP’s share   4,265 
Construction in progress   9,786 
Developable land - non-consolidated(2)   15,825 
Developable land - consolidated(2)   102,854 
Development investment(2)   303,580 
Cash and cash equivalents   29,407 
Restricted cash   113 
Accounts receivable   2,426 
Other assets   26,062 
Total other assets  $568,079 
      
Liabilities:     
Corporate level debt (face amount)  $1,558,052 
Mortgages and notes payable (face amount)   76,013 
Dividends payable   34,778 
Liabilities held for sale - consolidated   2,815 
Liabilities held for sale - non-consolidated - LXP’s share   76 
Accounts payable, accrued expenses and other liabilities   112,999 
Preferred stock, at liquidation value   96,770 
LXP’s share of non-consolidated mortgages (face amount)   129,369 
Total deductions  $2,010,872 
      
Common shares & OP units at 9/30/2022   276,939,329 

 

Footnotes

(1)NOI for the existing property portfolio at September 30, 2022, includes three quarters of annualized NOI for non-commenced leases and leases with free rent periods (excludes NOI related to assets undervalued by a capitalized NOI method 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 2022. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, LXP’s net book value has been used.
(2)At cost incurred.

 

 

37 

 

 

 

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, impairment charges, debt satisfaction gains (losses), net, non-cash charges, net, straight-line adjustments, 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 Cash Base Rent payment is multiplied by 12. 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 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.

 

38 

 

 

 

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 interest, (6) non-cash charges, net, (7) capitalized interest and internal costs, (8) cash paid for second generation tenant improvements, and (9) 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 cash needs. 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.

 

39 

 

 

 

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 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.

 

40 

 

 

 

SELECT CREDIT METRICS DEFINITIONS

($000)

 

 

Adjusted Company FFO Payout:  Nine months ended
September 30, 2022		   (Debt + Preferred) / Gross Assets:  Nine months ended
September 30, 2022		 
Common share dividends per share  $0.36   Consolidated debt  $1,620,348 
Adjusted Company FFO per diluted share   0.50   Preferred shares liquidation preference   96,770 
Adjusted Company FFO payout ratio   72.0%  Debt and preferred  $1,717,118 
              
Unencumbered Assets:       Total assets  $4,011,248 
Real estate, at cost  $4,451,622   Plus depreciation and amortization:     
Held for sale real estate and intangible assets, at cost   168,535   Real estate   747,535 
Other asset - note receivable   1,476   Deferred lease costs   9,235 
less encumbered real estate, at cost   (153,096)  Held for sale assets   99,221 
Unencumbered assets  $4,468,537         
        Gross assets  $4,867,239 
Unencumbered NOI:             
NOI  $183,499   (Debt + Preferred) / Gross Assets   35.3%
Disposed of properties NOI   (3,878)        
Adjusted NOI   179,621   Debt / Gross Assets:     
less encumbered adjusted NOI   (12,153)  Consolidated debt  $1,620,348 
Unencumbered adjusted NOI  $167,468         
        Gross assets  $4,867,239 
Unencumbered NOI %   93.2%        
        Debt / Gross assets   33.3%
Net Debt / Adjusted EBITDA:             
Adjusted EBITDA  $242,667   Secured Debt / Gross Assets:     
        Total Secure Debt  $74,891 
Consolidated debt  $1,620,348         
less consolidated cash and cash equivalents   (29,407)  Gross assets  $4,867,239 
Non-consolidated debt, net   127,003         
Net debt  $1,717,944   Secured Debt / Gross Assets   1.5%
              
Net debt / Adjusted EBITDA   7.1x  Unsecured Debt / Unencumbered Assets:     
        Consolidated debt  $1,620,348 
(Net Debt + Preferred) / Adjusted EBITDA:       less mortgages and notes payable   (74,891)
Adjusted EBITDA  $242,667   Unsecured Debt  $1,545,457 
              
Net debt  $1,717,944   Unencumbered assets  $4,468,537 
Preferred shares liquidation preference   96,770         
Net debt + preferred  $1,814,714   Unsecured Debt / Unencumbered Assets   34.6%
              
(Net Debt + Preferred) / Adjusted EBITDA   7.5x        

 

For the 12/31/2021, 12/31/2020 and 12/31/2019 Select Credit Metric reconciliation see corresponding period Quarterly Supplemental Information.

 

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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     Evercore Partners  
Camille Bonnel (416) 369-2140   Wendy Ma (212) 497-0870
         
Jefferies & Company, Inc.     J.P. Morgan Chase  
Jon Petersen (212) 284-1705   Anthony Paolone (212) 622-6682
         
KeyBanc Capital Markets Inc.     Ladenburg Thalmann & Co., Inc.
Todd Thomas (917) 368-2286   John Massocca (212) 409-2543

 

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