LXP Industrial Trust reported third‑quarter 2025 results, posting total gross revenues of $86.9 million, up from $85.6 million in the same quarter a year earlier. Net income attributable to common shareholders reached $34.6 million, or $0.12 per diluted share, compared with $4.7 million, or $0.02 per diluted share, in Q3 2024. Adjusted company FFO totaled $46.7 million, or $0.16 per diluted share, unchanged from the prior year. The portfolio remained 96.8 % leased, and same‑store NOI grew 4.7 % year‑over‑year for the nine‑month period ending September 30, 2025, while the third‑quarter figure was 2.0 % year‑over‑year.
The quarter included the sale of two vacant development projects totaling 2,138,640 sq ft in Ocala, Florida, and Indianapolis, Indiana. The properties were sold for a gross price of $175 million, with net proceeds of approximately $151 million. The transaction generated a $23 million gain on disposition, contributing to earnings. Net debt to adjusted EBITDA was reduced to 5.2× at quarter‑end, down from 5.8× in the prior quarter, after the company used the proceeds to repay $140 million of senior notes.
LXP declared a quarterly common‑share dividend of $0.14 per share for the quarter ending December 31, 2025, a 3.7 % increase from the prior dividend of $0.135 per share. The company also announced a 1‑for‑5 reverse stock split effective November 10, 2025, which will reduce the number of outstanding shares from roughly 295.8 million to about 59.2 million. Shareholders will receive cash in lieu of fractional shares, with the cash amount determined by the post‑split market price and the fractional shares sold on the open market.
Guidance for 2025 was updated to a net income attributable range of $0.25 to $0.26 per diluted share and an adjusted company FFO range of $0.63 to $0.64 per diluted share, both on a pre‑split basis. The prior guidance for adjusted company FFO was $0.62 to $0.64 per share, so the midpoint was raised and the range tightened, reflecting the impact of the asset sale and debt repayment.
Management highlighted strong leasing momentum, with 1.8 million square feet of new leases signed in Q3 2025 and significant increases in base and cash base rents. The company’s disciplined capital allocation strategy and focus on internal growth underpin its confidence in future performance. While the reverse split may be perceived negatively by some investors, it is intended to improve the stock’s marketability and attract a broader investor base.
The sale of the vacant development projects was a strategic move to reduce leverage and generate immediate earnings accretion. The net proceeds were used to repay senior debt, lowering the net debt to adjusted EBITDA ratio and positioning the company for continued growth in its core industrial markets.
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