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Jun 30
Lexington Realty Q2 2025 Earnings Report
LXP Industrial Trust announced its financial results for the second quarter ended June 30, 2025, highlighting solid funds from operations and strong same-store NOI growth.
Key Takeaways
LXP Industrial Trust delivered a strong second quarter in 2025, with significant increases in net income and a solid performance in Adjusted Company FFO. The company achieved a major milestone by leasing a large development facility, contributing to increased occupancy and future FFO. Strategic asset sales and debt repurchases further strengthened the balance sheet and improved debt metrics.
Total gross revenues for Q2 2025 increased to $87.7 million, up from $85.8 million in Q2 2024, driven by acquisitions, rent increases, and stabilized development projects.
Net income attributable to common shareholders significantly rose to $27.5 million ($0.09 per diluted share) in Q2 2025, compared to $3.8 million ($0.01 per diluted share) in Q2 2024.
Adjusted Company FFO remained strong at $47.3 million ($0.16 per diluted share) in Q2 2025, slightly up from $46.9 million ($0.16 per diluted share) in the prior year.
The stabilized portfolio was 94.1% leased as of June 30, 2025, and the company reduced leverage by repurchasing $28.1 million of Trust Preferred Securities.
Lexington Realty
Lexington Realty
Forward Guidance
LXP Industrial Trust has tightened its earnings guidance for the full year 2025, reflecting confidence in its operational performance.
Positive Outlook
- Net income attributable to common shareholders is expected to be between $0.13 and $0.15 per diluted common share for the full year 2025.
- Adjusted Company FFO is projected to be in a tighter range of $0.62 to $0.64 per diluted common share for the full year 2025.
- The successful lease of the 1.1 million square foot development facility is expected to contribute approximately $3.7 million to FFO in 2025.
- Strategic debt repurchases have increased the hedged and fixed-rate debt to 99% in 2025 and 2026.
- The company's focus on Class A warehouse and distribution real estate in target markets is expected to continue driving growth.
Challenges Ahead
- Guidance is forward-looking and excludes the impact of certain items, which could affect actual results.
- The guidance is based on current expectations and is subject to various risks and uncertainties.
- Factors such as economic and political climates, changes in regulations, and natural disasters could impact performance.
- Competition, inflation, labor shortages, and supply chain disruptions are potential risks.
- Changes in financial markets, interest rates, and accessibility of capital markets could affect future results.