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What changed in LXP Industrial Trust's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of LXP Industrial Trust's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+298 added−347 removedSource: 10-K (2024-02-15) vs 10-K (2023-02-16)

Top changes in LXP Industrial Trust's 2023 10-K

298 paragraphs added · 347 removed · 235 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

44 edited+12 added−21 removed24 unchanged
Biggest changePerformance: • Conducted a tenant feedback survey through Kingsley Associates and achieved a satisfaction score in excess of the Kingsley Associates average. • Engaged with our employees through regular surveys, including an employee satisfaction survey. • Organized employee volunteer opportunities at non-profit organizations on Company time and held clothing and food drives. • Maintained a paid-time-off policy for employees to volunteer in their local communities. • Organized step and other health-related challenges for our employees. • Invited our employees to donate to non-profit organizations within the local communities of our office locations. 10 Table of Contents • Provided an employee assistance program with 24/7 unlimited access to referrals and resources for all work-life needs, including access to face-to-face and telephonic counseling sessions, legal and financial referrals and consultations. • Awarded as a 2022 Best Company to Work for in New York. • Formed a women's mentorship program, where female employees are paired with female mentors for career related advice and support.
Biggest changeActions: • Routinely engage with our tenants to understand leasing and operational needs at our assets and provide tools and resources to promote sustainable tenant operations. • Collaborate with tenants and property managers on health and well-being focused initiatives. • Assess our tenant and employee satisfaction and feedback through annual surveys. • Circulate ESG+R focused newsletter to tenants and maintain a tenant portal with ESG+R resources. • Provide our employees with periodic trainings, industry updates and access to tools and resources related to ESG+R. • Provide our employees with health and well-being resources focused on physical, emotional and financial health. • Track and highlight the diversity and inclusion metrics of our employees, board and executive management team. • Support and engage with local communities through philanthropic and volunteer events, focusing on food insecurity and diversity, equity and inclusion initiatives. • Incorporate sustainability clauses into tenant leases, allowing collaboration on our ESG+R initiatives. 9 Table of Contents Performance: • Conducted a tenant feedback survey through Kingsley Associates and achieved a satisfaction score in excess of the Kingsley Associates average. • Engaged with our employees through regular surveys, including an employee satisfaction survey. • Organized employee volunteer opportunities at non-profit organizations on Company time and held clothing and food drives. • Maintained a paid-time-off policy for employees to volunteer in their local communities. • Organized step and other health-related challenges for our employees. • Invited our employees to donate to non-profit organizations within the local communities of our office locations. • Provided an employee assistance program with 24/7 unlimited access to referrals and resources for all work-life needs, including access to face-to-face and telephonic counseling sessions, legal and financial referrals and consultations. • Awarded as a 2023 Best Company to Work for in New York. • Maintained a women's mentorship program, where female employees are paired with female mentors for career related advice and support. • Named 2023 Green Lease Leader with Gold recognition by the Institution for Market Transformation and the U.S.
We also use the management affiliates of the developer/sellers of properties we acquire for the management of such properties if we have operating responsibilities and we believe it is important for such management affiliates to continue to manage the property. • ESG.
We also use the management affiliates of the developer/sellers of properties we acquire and develop for the management of such properties if we have operating responsibilities and we believe it is important for such management affiliates to continue to manage the property. • ESG .
Also posted on our web site, and available in print upon request of any shareholder to our Investor Relations Department, are our declaration of trust and by-laws, charters for the Audit Committee, Compensation Committee and Nominating and ESG Committee of our Board of Trustees, our Corporate Governance Guidelines, and our Code of Business Conduct and Ethics governing our trustees, officers and employees (which contains our whistleblower procedures).
Also posted on our web site, and available in print upon request of any shareholder to our Investor Relations Department, are our declaration of trust and by-laws, charters for the Audit and Cyber Risk Committee, Compensation Committee and Nominating and ESG Committee of our Board of Trustees, our Corporate Governance Guidelines, and our Code of Business Conduct and Ethics governing our trustees, officers and employees (which contains our whistleblower procedures).
Due to the properties in our portfolio primarily being subject to net leases where tenants are responsible for maintaining the buildings and are in control of their energy usage and environmental sustainability practices, our ability to implement ESG +R initiatives throughout our portfolio may be limited.
Corporate Responsibility Due to the properties in our portfolio primarily being subject to net leases where tenants are responsible for maintaining the buildings and are in control of their energy usage and environmental sustainability practices, our ability to implement ESG +R initiatives throughout our portfolio may be limited.
Corporate Responsibility We understand the importance of aligning with our stakeholders on environmental, social, governance, and resilience, or ESG+R, matters. Our goal is to continue building a sustainable ESG+R platform that enhances both our company and shareholder value.
We understand the importance of aligning with our stakeholders on environmental, social, governance, and resilience, or ESG+R, matters. Our goal is to continue building a sustainable ESG+R platform that enhances both our company and shareholder value.
Item 1. Business General We are a Maryland real estate investment trust, qualified as a REIT for federal income tax purposes, focused on single-tenant warehouse/distribution real estate investments.
Item 1. Business General We are a Maryland real estate investment trust, qualified as a REIT for federal income tax purposes, focused on investing in single-tenant warehouse/distribution real estate investments.
The minimum employee portion of premium to participate in one of the medical insurance plans for a single employee making less than $100,000 in base salary per year is $1 per month. • Dental and vision benefits at no cost to all of our employees. • A minimum of 14 paid time off, or PTO, days for first year employees, which increases to 19 PTO days in the third and fourth year of employment and 24 PTO days in the fifth year of employment. • A 401(k) plan where all employees can defer a portion of their compensation and receive matching and profit sharing contributions from the Company. • Flexible working arrangements where employees are able to work from home on specified days per workweek. • Professional development policy providing full reimbursement for career-relevant trainings and classes and professional organizations and other resources. • Employee stock purchase plan where all employees can defer a portion of their salary to purchase Company stock at a discount. • Semi-annual performance reviews and an online platform to provide real-time feedback.
The minimum employee portion of premium to participate in one of the medical insurance plans for a single employee making less than $100,000 in base salary per year is $1 per month. • Dental and vision benefits at no cost to all of our employees. • A minimum of 14 paid time off, or PTO, days for first year employees, which increases to 19 PTO days in the third and fourth year of employment and 24 PTO days in the fifth year of employment. • A 401(k) plan where all employees can defer a portion of their compensation and receive matching and profit sharing contributions from the Company. • Flexible working arrangements where employees are able to work from home on specified days per workweek. • Professional development policy providing full reimbursement for career-relevant trainings and classes and professional organizations and other resources. • Employee stock purchase plan where all employees can defer a portion of their salary to purchase Company stock at a discount. • Semi-annual performance reviews and an online platform to provide real-time feedback. • Anniversary bonuses for employees who have reached certain tenure amounts.
Prior to that, our predecessor was organized in the state of Delaware in October 1993 upon the rollup of two partnerships focused on the investment in diversified net-leased assets.
Prior to that, our predecessor was organized in the state of Delaware in October 1993 upon the rollup of two partnerships focused on investments in diversified net-leased assets.
The Nominating and ESG Committee of our Board of Trustees oversees our ESG +R strategy and initiatives. Environmental, Sustainability and Climate Change Developing strategies that reduce our environmental impact and operational costs is a critical component of our ESG+R program.
The Nominating and ESG Committee of our Board of Trustees oversees our ESG +R strategy and initiatives. 8 Table of Contents Environmental, Sustainability and Climate Change Developing strategies that reduce our environmental impact and operational costs is a critical component of our ESG+R program.
Strong growth prospects are generally determined by: • Expanding transportation and logistics networks; • Distances to major population centers; • Population growth; • Physical and regulatory constraints; • Labor cost and availability; • Utility costs; • Land cost and availability; and • Re-tenanting opportunities and costs. 4 Table of Contents We focus our investments in the Sunbelt and Midwest.
Strong growth prospects are generally determined by: • Expanding transportation and logistics networks; • Distances to major population centers; • Population growth; • Physical and regulatory constraints; • Labor cost and availability; • Utility costs; • Land cost and availability; and • Re-tenanting opportunities and costs. We focus our investments in the Sunbelt and Midwest.
As of December 31, 2022, our portfolio consisted of 109 warehouse/distribution facilities and seven other properties. Strategy General. Our business strategy is focused on growing our portfolio with attractive warehouse/distribution properties in target markets while maintaining a strong, flexible balance sheet to allow us to act on opportunities as they arise.
As of December 31, 2023, our portfolio consisted of 112 warehouse/distribution facilities and three other properties. Strategy General. Our business strategy is focused on growing our portfolio with attractive warehouse/distribution properties in target markets while maintaining a strong, flexible balance sheet to allow us to act on opportunities as they arise.
As of December 31, 2022, our largest tenant represented 6.8% of our ABR and 54.2% of our ABR were from tenants with investment grade credit ratings (either tenant, guarantor or parent/ultimate parent). See “Item 2—Properties—Tenant Diversification.” Institutional Fund Management. We also provide advisory services and co-invest with high-quality institutional investors in non-consolidated entities.
As of December 31, 2023, our largest tenant represented 6.9% of our ABR and 49.9% of our ABR was from tenants with investment grade credit ratings (either tenant, guarantor or parent/ultimate parent). See “Item 2—Properties—Tenant Diversification.” Institutional Fund Management. We also provide advisory services and co-invest with high-quality institutional investors in non-consolidated entities.
We believe our publicly disclosed ESG+R objectives will contribute to our ongoing long-term success on behalf of our stakeholders, including our shareholders, employees, tenants, suppliers, creditors, and local communities.
We believe our publicly disclosed ESG+R objectives will continue to evolve as our platform grows and contribute to our ongoing long-term success on behalf of our stakeholders, including our shareholders, employees, tenants, suppliers, creditors, and local communities.
Our Chief Executive Officer made an unqualified certification to the NYSE with respect to our compliance with the NYSE corporate governance listing standards in 2022. 12 Table of Contents
Our Chief Executive Officer made an unqualified certification to the NYSE with respect to our compliance with the NYSE corporate governance listing standards in 2023. 11 Table of Contents
Some of our benefit highlights are: • The compensation for employees with the title Assistant Vice President and above generally includes long-term equity awards, giving them ownership in us in an effort to retain their services. • Medical insurance with a portion of the premiums paid by us.
Some of our benefit highlights are: • The compensation for employees above a certain level generally includes long-term equity awards, giving them ownership in us in an effort to retain their services. • Medical insurance with a portion of the premiums paid by us.
Due to the small size of our employee base, our turnover is generally low. In 2022, six employees voluntarily or involuntarily separated service from us and we hired 10 employees for a net change of four employees. Demographics . We believe there are many benefits to diversity in our employee base.
Due to the small size of our employee base, our turnover is generally low. In 2023, three employees voluntarily or involuntarily separated service from us and we hired one employee for a net change of two employees. Demographics . We believe there are many benefits to diversity in our employee base.
Furthermore, we maintain a diversity, equity and inclusion policy. 7 Table of Contents Training and Development . In addition to our professional development policy, we maintain a variety of training programs for our employees, including annual trainings for sustainability, accounting, cybersecurity, human rights, harassment (for managers and non-managers) and anti-corruption/bribery.
In addition to our professional development policy, we maintain a variety of training programs for our employees, including annual trainings for sustainability, accounting, cybersecurity, human rights, harassment (for managers and non-managers) and anti-corruption/bribery.
Performance: • Benchmarked landlord paid energy, water, waste, and recycling across the portfolio and working to expand tenant-paid utility data coverage. • Obtained green building certifications for six properties and ENERGY STAR certification for five properties in our portfolio during 2022. • Circulated and maintained sustainability-focused resources for tenants and property managers, including a Tenant Fit-Out Guide and an Industrial Tenant Sustainability Guide. • Evaluated sustainability and efficiency initiatives across the portfolio in an effort to reduce energy consumption and drive down greenhouse gas emissions. • Included ESG+R into metrics for executive cash incentive awards.
Performance: • Benchmarked landlord paid energy, water, waste, and recycling across the portfolio and working to expand tenant-paid utility data coverage. • Completed a Greenhouse Gas (GHG) Inventory of our 2022 Scope 1, 2, and 3 GHG Emissions. • Obtained green building certifications for eight properties and submitted ENERGY STAR applications for six properties in our portfolio during 2023. • Circulated and maintained sustainability-focused resources for tenants and property managers, including a Tenant Fit-Out Guide and an Industrial Tenant Sustainability Guide. • Evaluated sustainability and efficiency initiatives across the portfolio in an effort to reduce energy consumption and drive down greenhouse gas emissions. • Included ESG+R in metrics for executive cash incentive awards.
Governance Transparency to our stakeholders is essential. We pride ourselves on providing our stakeholders with regular reports and detailed disclosures on our operational and financial health and ESG+R efforts .
Department of Energy’s Better Buildings Alliance. Governance Transparency to our stakeholders is essential. We pride ourselves on providing our stakeholders with regular reports and detailed disclosures on our operational and financial health and ESG+R efforts .
As of December 31, 2022, we had equity ownership interests in approximately 116 consolidated real estate properties, located in 21 states and containing an aggregate of approximately 54.0 million square feet of space, approximately 99.5% of which was leased. History and Current Corporate Structure We became a Maryland REIT in December 1997.
As of December 31, 2023, we had equity ownership interests in approximately 115 consolidated real estate properties, located in 18 states and containing an aggregate of approximately 54.6 million square feet of space, approximately 99.8% of which was leased. History and Current Corporate Structure We became a Maryland REIT in December 1997.
We target general purpose warehouse/distribution facilities that are versatile, easily leased to alternative users and have other attractive features, including some or all of the following features: • Clear heights generally ranging from 28 feet for smaller buildings to 40 feet for larger buildings; • Wide column spacing and speed bays; • Efficient loading dock ratios; • Deep truck courts; • Cross docking for larger facilities; and • Ample trailer and employee parking. 5 Table of Contents The average age of our warehouse/distribution properties as of December 31, 2022, was approximately 8.8 years.
We target general purpose warehouse/distribution facilities that are versatile, easily leased to alternative users and have other attractive features, including some or all of the following features: • Clear heights generally ranging from 28 feet for smaller buildings to 40 feet for larger buildings; • Wide column spacing and speed bays; • Efficient loading dock ratios; • Deep truck courts; • Cross docking for larger facilities; and • Ample trailer and employee parking.
Our institutional joint ventures use non-recourse mortgage loans to finance their investments. Insurance We maintain comprehensive property, liability and pollution insurance policies with limits and deductibles that we believe are appropriate for our portfolio. Our property insurance policy includes business interruption and windstorm coverage. The premiums for our property, liability and pollution insurance are generally reimbursed by our tenants.
Our institutional joint ventures use non-recourse mortgage loans to finance their investments. Insurance We maintain comprehensive property, liability and pollution insurance policies with limits and deductibles that we believe are appropriate for our portfolio. Our property insurance policy includes business interruption, windstorm coverage and terrorism coverage, subject to certain exclusions.
We believe investing in special purpose industrial properties in a joint venture structure allows us to mitigate the risk of investing in these types of industrial assets while earning certain fees related to the operation and growth of the joint venture. MFG Cold JV did not make any acquisitions in 2022.
We believe investing in special purpose industrial properties in a joint venture structure allows us to mitigate the risk of investing in these types of industrial assets while earning certain fees related to the operation and growth of the joint venture. MFG Cold JV has not made any acquisitions since its original formation transaction.
None of our employees are covered by a collective bargaining agreement. Each of our employees work in one or more of the following departments: Investments, Asset Management, Accounting, Tax, Corporate, Legal and Information Technology.
Each of our employees work in one or more of the following departments: Investments, Asset Management, Accounting, Tax, Corporate, Legal and Information Technology.
Actions: • Align our resilience program with the TCFD framework. • Evaluate physical and transition climate-related risks as part of our acquisition due diligence process. • Utilize climate analytics metrics to (1) identify physical risk exposure across the portfolio, (2) identify high risk assets and (3) implement mitigation measures and emergency preparedness plans. • Assess transition risks and opportunities arising from the shift to a low-carbon economy, including market, reputation, policy, legal, and technology. 11 Table of Contents Performance: • Engaged a third-party consultant to conduct ESG+R assessments on all new acquisitions. • Continued to be a supporter of the TCFD reporting framework. • Engaged a climate analytics firm to evaluate physical risk due to climate change across our portfolio.
Actions: • Align our resilience program with the TCFD framework. • Evaluate physical and transition climate-related risks as part of our acquisition due diligence process. • Utilize climate analytics metrics to (1) identify physical risk exposure across the portfolio, (2) identify high risk assets and (3) implement mitigation measures and emergency preparedness plans. • Assess transition risks and opportunities arising from the shift to a low-carbon economy, including market, reputation, policy, legal, and technology.
Our target markets are where we believe there are strong growth prospects for us to build a concentration of assets.
We target markets that we believe have strong growth prospects for us to build a concentration of assets.
We also maintain Directors and Officers, Crime, Fiduciary Liability, Employment Practices Liability, Cyber and Miscellaneous Professional Liability insurance. Regulation We are subject to various laws, ordinances and regulations, including: REIT .
The premiums for our property, liability and pollution insurance are generally reimbursed by our tenants. We also maintain Directors and Officers, Crime, Fiduciary Liability, Employment Practices Liability, Cyber and Miscellaneous Professional Liability insurance. Regulation We are subject to various laws, ordinances and regulations, including: REIT .
Industrial Peer Group. • Published our 2021 Corporate Responsibility Report, aligned with GRI, SASB and TCFD. • Maintained a Stakeholder Engagement Policy to disclose our process when working with our key stakeholders, including investors, property management teams, and tenants. • Continued to support the UN Women's Empowerment Principles and the CEO Action for Diversity & Inclusion. • Conducted annual ESG+R training for asset managers, lease administrators and property managers.
Industrial Peer Group. • Published our 2022 Corporate Responsibility Report, aligned with GRI, SASB, SDGs and TCFD. • Maintained a Stakeholder Engagement Policy to disclose our process when working with our key stakeholders, including investors, property management teams, and tenants. • Continued to support the UN Women's Empowerment Principles and the CEO Action for Diversity & Inclusion. • Conducted annual ESG+R training for asset managers, lease administrators and property managers. 10 Table of Contents Resilience We believe that our resilience to climate change-related physical and transition risks is critical to our long-term success.
When feasible, we will implement base building upgrades and provide tenants with improvement allowance funds to complete sustainability efforts. 9 Table of Contents Actions: • Track and monitor all landlord-paid utilities, and track tenant utility data wherever possible. • Strategically implement green building certifications to highlight sustainability initiatives and pursue ENERGY STAR certification for eligible properties annually. • Annually review and evaluate opportunities to improve efficiency, reduce operating costs, and reduce our properties' environmental footprint. • Evaluate the opportunity to increase renewable energy across the portfolio.
Actions: • Track and monitor all landlord-paid utilities, and track tenant utility data wherever possible. • Strategically implement green building certifications to highlight sustainability initiatives and pursue ENERGY STAR certification for eligible properties annually. • Annually review and evaluate opportunities to improve efficiency, reduce operating costs, and reduce our properties' environmental footprint. • Evaluate opportunities to increase renewable energy usage across the portfolio.
We seek to continuously identify avenues to engage with our stakeholders to better understand those needs, and we maintain a stakeholder engagement policy. During 2022, we held various meetings with our shareholders and tenants. We held townhall meetings with our employees, we completed questionnaires from shareholders and industry groups, and we engaged our tenants and employees with satisfaction surveys.
We seek to continuously identify avenues to engage with our stakeholders to better understand those needs, and we maintain a stakeholder engagement policy. During 2023, we held various meetings with our shareholders and tenants.
Primarily all of our business is conducted through wholly-owned subsidiaries, but we conduct a portion of our business through an operating partnership subsidiary, Lepercq Corporate Income Fund L.P., which we refer to as LCIF.
Primarily all of our business is conducted through wholly-owned subsidiaries, but historically we conducted a portion of our business through an operating partnership subsidiary, Lepercq Corporate Income Fund L.P., which we refer to as LCIF. On December 31, 2023, we merged LCIF with and into us, with us as the surviving entity.
Industrial Distribution/Warehouse listed peer group; ◦ Achieved an overall score of 69, an increase compared to 2021; and, ◦ Received Public Disclosure Score of A, above the global average, and placed first in the U.S.
Industrial Distribution/Warehouse listed peer group; ◦ Achieved a Real Estate Benchmark score of 74, a five-point increase compared to 2022; and, ◦ Received Public Disclosure Score of 96 (A), above the comparison group and global average, and placed first in the U.S.
Tenants . We believe we have a diversified tenant base and are not dependent upon any one tenant. While we invest primarily in single-tenant facilities, we believe our tenant credit strength mitigates somewhat against binary risk in occupancy.
The average age of our warehouse/distribution properties as of December 31, 2023, was approximately 9.5 years. Tenants . We believe we have a diversified tenant base and are not dependent upon any one tenant. While we invest primarily in single-tenant facilities, we believe our tenant credit strength mitigates somewhat against binary risk in occupancy.
Operating Segments We manage our operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions, and accordingly, have only one reporting and operating segment.
Operating Segments We manage our operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions, and accordingly, have only one reporting and operating segment. While we have target markets, we do not allocate capital by market or operate properties in specific markets independent of our overall portfolio.
The year-end performance review consisted of a 180-degree review where non-executive employees reviewed their immediate supervisor. We believe this 180-degree review provides an objective measurement of our employees' performance. Our executive employees are reviewed by the Compensation Committee of our Board of Trustees. • During 2022, we engaged our employees with several surveys, including an employee satisfaction survey.
We believe this 180-degree review provides an objective measurement of our employees' performance. The performance of each of our executive-titled employees is reviewed by our Chief Executive Officer, which is presented to, and discussed by, the Compensation Committee of our Board of Trustees. • During 2023, we engaged our employees with several surveys, including an employee satisfaction survey.
Our current target markets consist of the following: We expect to grow in these markets by executing on our development pipeline and opportunistically acquiring facilities in these markets.
Our current target markets consist of the following: 4 Table of Contents We expect to grow in these markets by executing on our development pipeline, including through build-to-suits, and opportunistically acquiring facilities in these markets. We currently expect to opportunistically dispose of properties outside of our target markets as opportunities and the need for liquidity arise. Building Type .
During 2022, none of our employees violated our anti-corruption/bribery policies and we did not pay any fines for violating anti-corruption/bribery laws or regulations. Employee Engagement . We regularly engage our employees through the following methods: • During 2022, we conducted a mid-year performance review for our non-executive employees and a year-end performance review for all of our employees.
During 2023, none of our employees violated our anti-corruption/bribery policies and we did not pay any fines for violating anti-corruption/bribery laws or regulations. 7 Table of Contents Employee Engagement .
The participation rate for the employee satisfaction survey was 60% and we achieved an 84% overall satisfaction rate. Human Rights . Respect for human rights and well-being is essential. We maintain an enterprise level human rights policy. Vendors and Contractors . We outsource the following material functions: • Information Technology.
The participation rate for the employee satisfaction survey was 88% and we achieved an 86% overall satisfaction rate. Human Rights . We believe respect for human rights is essential.
While we have target markets, we do not allocate capital by market or operate properties in specific markets independent of our overall portfolio. 6 Table of Contents Human Capital While our investment focus is on physical assets, human capital is critical to our success. We believe investing in our team will result in value creation for our shareholders.
Human Capital While our investment focus is on physical assets, human capital is critical to our success. We believe investing in our team will result in value creation for our shareholders. We strive to maintain a supportive work atmosphere that values community and 6 Table of Contents promotes professional and personal growth, work autonomy and health and wellness.
We use TetherView, LLC for managed IT services and BDO USA, LLC for virtual chief technology officer services, including cybersecurity. • Internal Audit. We use Ernst & Young LLP for our internal audit function. • Property Management. We primarily use CBRE, Cushman & Wakefield and Jones Lang LaSalle for the management of our properties where we have operating responsibilities.
We engaged a “big-four” accounting firm to assist with our internal audit function. • Property Management . We primarily engage CBRE, Cushman & Wakefield and Jones Lang LaSalle for the management of our properties where we have operating responsibilities.
We maintain a supportive work atmosphere that values community and promotes professional and personal growth, work autonomy and health and wellness. We rely on our employees and the employees of our contractors and vendors to operate our business and implement our strategy. Employees . As of December 31, 2022, we had 66 full-time employees and one part-time employee.
We rely on our employees and the employees of our contractors and vendors to operate our business and implement our strategy. Employees . As of December 31, 2023, we had 64 full-time employees. None of our employees are covered by a collective bargaining agreement.
As of December 31, 2022, there were approximately 0.7 million OP units outstanding, other than OP units held by LXP, which were convertible into approximately 0.8 million common shares, assuming redemptions are satisfied entirely with common shares. Since December 31, 2015 through December 31, 2022, we transitioned our portfolio from approximately 16% warehouse/distribution assets to approximately 98% warehouse/distribution assets.
As a result of the merger 0.7 million LCIF partnership units not already owned by us were converted on a 1 for 1.126 basis into 0.8 million of our common shares for a total value of $7.8 million. Since December 31, 2015 through December 31, 2023, we transitioned our portfolio from approximately 16% warehouse/distribution assets to approximately 99.7% warehouse/distribution assets.
We use RE Tech Advisors (formerly Lord Green Real Estate Strategies, Inc.) to assist us with our environmental, social and governance, or ESG, initiatives. We maintain a supplier code of conduct for our vendors and contractors. Summary of 2022 Transactions The following summarizes certain of our transactions during 2022, including transactions disclosed elsewhere and in our other periodic reports.
We engaged RE Tech Advisors to assist us with our environmental, social and governance, or ESG, initiatives. The 2022 energy, GHG emissions, water and waste data in our corporate responsibility report was independently verified by Lucideon CICS, a private limited company providing in verification and certification services. We maintain a supplier code of conduct for our vendors and contractors.
Of our 66 full-time employees at December 31, 2022, 59.1% were female and 45.5% were non-white. Of our 11 executive employees at December 31, 2022, 18.2% were female and 9.1% were non-white. In 2020, our employees formed a Diversity, Equity and Inclusion Committee, or the DEIC.
Of our 64 full-time employees at December 31, 2023, 57.8% were female and 46.9% were non-white. Of our eight executive employees at December 31, 2023, 25.0% were female and 12.5% were non-white.
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Historically, LCIF enabled us to acquire properties by issuing limited partner interests in LCIF, which we refer to as OP units, to sellers of property, as a form of consideration in exchange for the property.
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One of these institutional joint ventures, NNN Office JV L.P. (“Office JV”), in which we have a 20% interest, was formed in 2018 upon our disposition of a portfolio of office assets and has seven office properties and a land parcel remaining. Another one of these institutional joint ventures, NNN MFG Cold JV L.P.
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The outstanding OP units not held by LXP are generally redeemable for our common shares on a one OP unit for approximately 1.13 common shares basis, or, at our election in certain instances, cash.
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(“MFG Cold JV”) in which we have a 20% 5 Table of Contents interest, was formed in 2021 upon our disposition of a portfolio of 22 special purpose industrial properties outside of our core warehouse/distribution strategy.
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The following markets are where we are currently invested, but we own no more than two assets, the markets do not meet enough of our investment criteria, and we do not expect to build our concentration: • Detroit, MI; • Kansas City, MO; • St.
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As of December 31, 2023, we are not aware of any environmental conditions or material costs of complying with environmental or other government regulations that would have a material adverse effect on our overall business, financial condition, or results of operations.
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Louis, MO; • Cleveland, OH; • Champaign-Urbana, IL; • Erwin, NY; • New York/New Jersey; and • Philadelphia, PA. We expect to opportunistically exit these markets. Building Type .
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However, it is possible that we are not aware of, or may become subject to, potential environmental liabilities or material costs of complying with government regulations that could be material. See “Risks Related to Our Business” in Item 1A. “Risk Factors” for further information regarding our risks related to government regulations.
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Two of these institutional joint ventures, for which there are no future commitments, are invested in non-industrial assets. The third institutional joint venture, NNN MFG Cold JV L.P. (“MFG Cold JV”), owns a portfolio of 22 special purpose industrial assets comprised of manufacturing and cold storage facilities in which we held a 20% interest as of December 31, 2022.
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Attraction & Retention of Talent . We compete for talent by providing competitive compensation and benefits and by working to maintain a culture that is supportive and collaborative and that provides opportunities for both personal and professional growth.
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Other than certain members of our executive officers, we do not believe that any one employee is material to our operations, but we believe that all of our employees are important for our operations.
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We maintain a diversity, equity and inclusion policy that acknowledges our commitment to cultivating a culture of diversity, equity and inclusion and related initiatives and provides a process for employees to report violations of the policy. Training and Development .
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Most of our employees continue to work remotely or on a hybrid basis. We hold in person employee events, but also regularly engage with our employees through company-wide video-conference meetings and social events. Attraction & Retention of Talent . We attract talent by maintaining a positive and good culture and providing competitive compensation and benefits.
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We regularly engage our employees through the following methods: • During 2023, we conducted a mid-year performance review for our non-executive employees and a year-end performance review for all of our employees. The year-end performance review consisted of a 180-degree review where non-executive employees reviewed their immediate supervisor.
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The mission of the DEIC is to actively promote diversity, equity and inclusion Company-wide as well as for and among our current and future stakeholders. To that end, the DEIC maintains programs and initiatives to motivate and empower LXP to make a positive difference, including programs focused on recruiting.
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We maintain an enterprise level human rights policy that acknowledges our efforts to promote human rights in accordance with the UN Guiding Principles on Business and Human Rights and the UN Universal Declaration of Human Rights. We respect freedom of association in our employment practices. Vendors and Contractors . We outsource the following material functions: • Information Technology.
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Leasing Activity. • During 2022, we entered into new leases and lease extensions encompassing 4.1 million square feet. The average fixed rent on these extended leases was $5.36 per square foot compared to the average fixed rent on these leases before extension of $4.26 per square foot.
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We engaged a third-party provider of virtual desktop and digital workspaces for managed IT services and a national accounting firm through its digital product line, for virtual chief technology officer services, including as our chief information security officer, or CISO. • Internal Audit .
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The weighted-average cost of tenant improvements and lease commissions was $7.82 per square foot for new leases and $0.91 per square foot for extended leases. • Leased approximately 100 acres of industrial development land in the Phoenix, Arizona market for 20 years.
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We held townhall meetings with our employees, we completed questionnaires from shareholders and industry groups, and we engaged our tenants and employees with satisfaction surveys and newsletters.
Removed
Investments. • Acquired three warehouse/distribution facilities for an aggregate cost of $131.2 million. • Completed and placed into service a 0.8 million square foot warehouse/distribution facility in the Greenville/Spartanburg, South Carolina market. • Commenced development of two warehouse/distribution facilities in the Central Florida market. • Invested an aggregate of $298.2 million in development activities, including $204.4 million in six ongoing development projects and 60 acres of developable land. 8 Table of Contents Capital Recycling. • Disposed of our interests in 10 properties and one land parcel for an aggregate gross disposition price of $197.0 million. • NNN Office JV L.P. disposed of six properties for an aggregate disposition price of $354.9 million and satisfied an aggregate of $229.5 million of non-recourse variable rate debt.
Added
When feasible, we implement base building upgrades and provide tenants with improvement allowance funds to complete sustainability efforts.
Removed
We own 20% of the joint venture and we received aggregate proceeds of $28.1 million. Debt . • Amended our revolving credit facility and the 2025 term loan to provide for a new revolving credit facility and the continuation of the 2025 term loan (the “2022 Credit Agreement”).
Added
Performance: • Engaged a third-party consultant to conduct ESG+R assessments on all new acquisitions. • Continued to be a supporter of the TCFD reporting framework. • Engaged a climate analytics firm to evaluate physical risk due to climate change across our portfolio. Corporate Information Principal Executive Offices.
Removed
The 2022 Credit Agreement, among other things: (i) extended the maturity date of the revolving portion from February 2023 to July 2026, with two six-month extension options, subject to certain conditions, (ii) reduced the applicable margin for the revolving portion of the credit facility by five basis points to a range from 0.725% to 1.40%, and allows for further reductions upon the achievement of to-be-determined sustainability metrics, (iii) amended the debt covenants by reducing the capitalization rate for determining asset value and (iv) transitioned the facility to SOFR.
Removed
Simultaneously, we converted the interest rate swap agreements to Term SOFR, which resulted in a new fixed interest rate of 2.722% on the 2025 term loan.
Removed
Equity . • Increased the availability under the share repurchase program by 10.0 million shares. • Repurchased and retired 12.1 million common shares for an average price of $10.78 per common share. • Settled 16.0 million common shares previously sold on a forward basis as part of an underwritten equity offering for an aggregate settlement price of $183.4 million. • Settled 3.6 million common shares previously sold on a forward basis for net proceeds of $38.5 million.
Removed
Actions: • Routinely engage with our tenants to understand leasing and operational needs at our assets and provide tools and resources to promote sustainable tenant operations. • Collaborate with tenants and property managers on health and well-being focused initiatives. • Assess our tenant and employee satisfaction and feedback through annual surveys. • Circulate ESG+R focused newsletter to tenants and maintain a tenant portal with ESG+R resources. • Provide our employees with periodic trainings, industry updates and access to tools and resources related to ESG+R. • Provide our employees with health and well-being resources focused on physical, emotional and financial health. • Track and highlight the diversity and inclusion metrics of our employees, board and executive management team. • Support and engage with local communities through philanthropic and volunteer events, focusing on food insecurity and diversity, equity and inclusion initiatives. • Incorporate sustainability clauses into tenant leases, allowing collaboration on our ESG+R initiatives.
Removed
Resilience We believe that our resilience to climate change-related physical and transition risks is critical to our long-term success.
Removed
Information Technology/Cybersecurity We believe we maintain an information technology and cybersecurity program appropriate for a company our size taking into account our operations. We outsource our IT managed services to Tetherview LLC, which provides customized private cloud solutions featuring virtual desktops and servers in the Digital Bunker TM .
Removed
The Digital Bunker TM is a zero-trust environment with 24/7 monitoring and is built to the NISI/ISO framework and is SOC 2 Type 2 Compliant. We engage BDO USA, LLC to provide virtual Chief Technology Officer services, which includes cybersecurity advisory.
Removed
We also maintain cybersecurity insurance providing coverage for certain costs related to security failures and specified cybersecurity-related incidents that interrupt our network or networks of our vendors, in all cases up to specified limits and subject to certain exclusions. The Audit and Cyber Risk Committee of our Board of Trustees oversees our information technology and cybersecurity strategy and initiatives.
Removed
One of the members of the Audit and Cyber Risk Committee of our Board of Trustees is an information technology/cybersecurity expert. Our management and BDO USA, LLC report to the Audit and Cyber Risk Committee on at least a quarterly basis. Corporate Information Principal Executive Offices.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

53 edited+12 added−51 removed115 unchanged
Biggest changeThere are numerous other companies and individuals with greater financial and other resources and lower costs of capital than we have that compete with us in seeking investments and tenants. This competition may result in a higher cost for properties and lower returns and impact our ability to grow. We may have limited control over our joint venture investments.
Biggest change“Cybersecurity” in this Annual Report. 15 Table of Contents Competition may adversely affect our ability to purchase properties. There are numerous other companies and individuals with greater financial and other resources and lower costs of capital than we have that compete with us in seeking investments and tenants.
The potential impacts of future climate change on our real estate properties could adversely affect our ability to lease, develop or sell such properties or to borrow using such properties as collateral. Risks Related to our Indebtedness We have a substantial amount of indebtedness. We have a substantial amount of debt.
The potential impacts of climate change on our real estate properties could adversely affect our ability to lease, develop or sell such properties or to borrow using such properties as collateral. Risks Related to our Indebtedness We have a substantial amount of indebtedness. We have a substantial amount of debt.
We carry comprehensive liability, fire, extended coverage and rent loss insurance on certain of the properties in which we have an interest, with policy specifications and insured limits that we believe are customary for similar properties.
We carry comprehensive liability, property, fire, extended coverage and rent loss insurance on certain of the properties in which we have an interest, with policy specifications and insured limits that we believe are customary for similar properties.
Disruptions in the financial markets and uncertain economic conditions could adversely affect our ability to obtain debt financing on reasonable terms, the value of our real estate investments, and have other adverse effects on us.
Disruptions in the financial markets and uncertain economic conditions could adversely affect our ability to obtain financing on reasonable terms, the value of our real estate investments, and have other adverse effects on us.
For example, it could: • make it more difficult for us to satisfy our indebtedness and debt service obligations and adversely affect our ability to pay distributions; • increase our vulnerability to adverse economic and industry conditions; • require us to dedicate a substantial portion of our cash flow from operations to the payment of interest on and principal of our indebtedness, thereby reducing the availability of cash to fund working capital, capital expenditures and other general corporate purposes; • limit our ability to borrow money or sell stock to fund our development projects, working capital, capital expenditures, general corporate purposes or acquisitions; • restrict us from making strategic acquisitions or exploiting business opportunities; • place us at a disadvantage compared to competitors that have less debt; and • limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate.
For example, it could: • make it more difficult for us to satisfy our indebtedness and debt service obligations and adversely affect our ability to pay distributions; • increase our vulnerability to adverse economic and industry conditions; • require us to dedicate a substantial portion of our cash flow from operations to the payment of interest on and principal of our indebtedness, thereby reducing the availability of cash to fund working capital, capital expenditures and other general corporate purposes; • limit our ability to borrow money or sell stock to fund our development projects, working capital, capital expenditures, general corporate purposes or acquisitions; • restrict us from making strategic acquisitions or exploiting business opportunities; 17 Table of Contents • place us at a disadvantage compared to competitors that have less debt; and • limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate.
As a result, we could be held liable, under some circumstances, for debts incurred by the tenant relating to the property. 14 Table of Contents A significant portion of our leases are long-term and do not have fair market rental rate adjustments, which could negatively impact our income and reduce the amount of funds available to make distributions to shareholders.
As a result, we could be held liable, under some circumstances, for debts incurred by the tenant relating to the property. 13 Table of Contents A significant portion of our leases are long-term and do not have fair market rental rate adjustments, which could negatively impact our income and reduce the amount of funds available to make distributions to shareholders.
If these rating agencies assign a lower-than-expected rating or reduce or withdraw, or indicate that they may reduce or withdraw, the credit rating of a tenant, guarantor or its parent entity, the value of our investment in any properties leased by such tenant could significantly decline. 13 Table of Contents Our assets may be subject to impairment charges.
If these rating agencies assign a lower-than-expected rating or reduce or withdraw, or indicate that they may reduce or withdraw, the credit rating of a tenant, guarantor or its parent entity, the value of our investment in any properties leased by such tenant could significantly decline. 12 Table of Contents Our assets may be subject to impairment charges.
Certain activities, like leasing and alterations, may be subject to the consent of the applicable lender. In addition, certain lenders engage third-party loan servicers that may not be as responsive as we would be or as the leasing market requires. 20 Table of Contents We face risks associated with refinancings.
Certain activities, like leasing and alterations, may be subject to the consent of the applicable lender. In addition, certain lenders engage third-party loan servicers that may not be as responsive as we would be or as the leasing market requires. 18 Table of Contents We face risks associated with refinancings.
Some of the properties in which we have an interest are subject to non-recourse mortgages, which generally provide that a lender's only recourse upon an event of default is to foreclose on the property. In the event these properties are conveyed via foreclosure to the lenders thereof, we would lose all of our interest in these properties.
Some of the properties in which we have an interest, primarily non-consolidated properties, are subject to non-recourse mortgages, which generally provide that a lender's only recourse upon an event of default is to foreclose on the property. In the event these properties are conveyed via foreclosure to the lenders thereof, we would lose all of our interest in these properties.
Our inability to retain the services of any of our key personnel, an unplanned loss of any of their services or our inability to replace them upon termination as needed, could adversely impact our operations. We do not have key man life insurance coverage on our executive officers. 26 Table of Contents
Our inability to retain the services of any of our key personnel, an unplanned loss of any of their services or our inability to replace them upon termination as needed, could adversely impact our operations. We do not have key man life insurance coverage on our executive officers. 23 Table of Contents
At December 31, 2022, in addition to common shares, we had outstanding 1,935,400 Series C Preferred Shares. Our Series C Preferred Shares include provisions, such as increases in dividend rates or adjustments to conversion rates, which may deter a change of control.
At December 31, 2023, in addition to common shares, we had outstanding 1,935,400 Series C Preferred Shares. Our Series C Preferred Shares include provisions, such as increases in dividend rates or adjustments to conversion rates, which may deter a change of control.
We focus our acquisition activities on industrial real estate properties that are generally net leased to single tenants, and certain of our tenants and/or their guarantors constitute a significant percentage of our rental revenues.
We focus our investment activities on industrial real estate properties that are generally net leased to single tenants, and certain of our tenants and/or their guarantors constitute a significant percentage of our rental revenues.
The ownership of properties which are not fully operated by a single tenant expose us to the risk of potential "CAM slippage," which may occur when the actual cost of taxes, insurance and maintenance at the property exceeds the operating expenses paid by tenants and/or the amounts budgeted.
The ownership of properties which are not fully operated by a single tenant expose us to the risk of potential “CAM slippage,” which may occur when the actual cost of taxes, insurance and maintenance at the property exceeds the operating expenses paid by tenants and/or the amounts budgeted.
In the event of a bankruptcy, liquidation or reorganization of any of our subsidiaries, holders of subsidiary debt, including trade creditors, will generally be entitled to payment of their claims from the assets of our subsidiaries before any assets are made available for distribution to us. 21 Table of Contents All of our assets are held through our subsidiaries.
In the event of a bankruptcy, liquidation or reorganization of any of our subsidiaries, holders of subsidiary debt, including trade creditors, will generally be entitled to payment of their claims from the assets of our subsidiaries before any assets are made available for distribution to us. All of our assets are held through our subsidiaries.
As of December 31, 2022, our total consolidated indebtedness was approximately $1.5 billion and we had approximately $600.0 million available for borrowing under our principal credit agreement, subject to covenant compliance. Our substantial indebtedness could adversely affect our financial condition and results of operations and have important consequences to us and our debt and equity security holders.
As of December 31, 2023, our total consolidated indebtedness was approximately $1.8 billion and we had approximately $600.0 million available for borrowing under our principal credit agreement, subject to covenant compliance. Our substantial indebtedness could adversely affect our financial condition and results of operations and have important consequences to us and our debt and equity security holders.
Legislation such as the Americans with Disabilities Act may require us to modify our properties at substantial costs and noncompliance could result in the imposition of fines or an award of damages to private litigants. Future legislation may impose additional requirements.
Legislation such as the Americans with Disabilities Act may require us to modify our properties at substantial costs and noncompliance could result in the imposition of fines or an award of damages to private litigants. Future legislation may impose additional requirements. We may incur additional costs to comply with any future requirements.
If the tenant represents a significant portion of our rental revenues, the impact on our financial position may be material. Further, in any such event, our property owner subsidiary will be responsible for 100% of the operating costs following a vacancy at a single-tenant building.
If the tenant represents a significant portion of our rental revenues, the impact on our financial position may be material. Further, in any such event, we will be responsible for 100% of the operating costs following a vacancy at a single-tenant building.
Our substantial indebtedness could adversely affect our financial condition and our ability to fulfill our obligations under the documents governing our unsecured indebtedness and otherwise adversely impact our business and growth prospects. We may be more leveraged than certain of our competitors. We have incurred, and may continue to incur, direct and indirect indebtedness in furtherance of our activities.
Our substantial indebtedness could adversely affect our financial condition and our ability to fulfill our obligations under the documents governing our unsecured indebtedness and otherwise adversely impact our business and growth prospects. We have incurred, and may continue to incur, direct and indirect indebtedness in furtherance of our activities.
Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of the properties in which we have an interest, which could adversely affect our financial condition or results of operations.
Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of the properties in which we have an interest, which could adversely affect our financial condition or results of operations. 21 Table of Contents Costs of complying with changes in governmental laws and regulations may adversely affect our results of operations.
If permanent debt or equity financing is not available on acceptable terms to refinance acquisitions undertaken without permanent financing, further acquisitions may be curtailed, or cash available to satisfy our debt service obligations and distributions to shareholders may be adversely affected. Our investment and disposition activity may lead to dilution.
If permanent debt or equity financing is not available on attractive terms to refinance this short-term financing, further acquisitions and developments may be curtailed, or cash available to satisfy our debt service obligations and distributions to shareholders may be adversely affected. Our investment and disposition activity may lead to dilution.
Accordingly, shareholders' control over changes in our strategies and policies is limited to the election of trustees. Industry and Economic Risks The outbreak of highly infectious or contagious diseases, could adversely impact or cause disruption to our business, financial condition, results of operations and cash flows.
Accordingly, shareholders' control over changes in our strategies and policies is limited to the election of trustees. Industry and Economic Risks Public health emergencies could adversely impact or cause disruption to our business, financial condition, results of operations and cash flows.
Differences in timing between the receipt of income and the payment of expenses in determining its taxable income and the effect of required debt amortization payments could require LXP to borrow funds on a short-term basis in order to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT.
Differences in timing between the receipt of income and the payment of expenses in determining its taxable income and the effect of required debt amortization payments could require LXP to borrow funds on a short-term basis in order to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT. 22 Table of Contents Legislative or regulatory tax changes could have an adverse effect on us.
Investment in commercial properties entail certain risks, such as (1) underwriting assumptions, including occupancy, rental rates and expenses, may differ from estimates, (2) the properties may become subject to environmental liabilities that we were unaware of at the time we acquired the property despite any environmental testing, (3) we may have difficulty obtaining financing on acceptable terms or paying the operating expenses and debt service associated with acquired properties prior to sufficient occupancy and (4) projected exit strategies may not come to fruition due to a variety of factors such as market conditions and/or tenant credit conditions at the time of dispositions.
The concentration of our investments, among other factors, in industrial assets may expose us to the risk of economic downturns specific to industrial assets to a greater extent than if our investments were diversified. 14 Table of Contents Investment in commercial properties entail certain risks, such as (1) underwriting assumptions, including occupancy, rental rates and expenses, may differ from estimates, (2) the properties may become subject to environmental liabilities that we were unaware of at the time we acquired the property despite any environmental testing, (3) we may have difficulty obtaining financing on acceptable terms or paying the operating expenses and debt service associated with acquired properties prior to sufficient occupancy and (4) projected exit strategies may not come to fruition due to a variety of factors such as market conditions and/or tenant credit conditions at the time of dispositions.
There can be no assurance that the implementation of our strategy will lead to improved results or that we will be able to execute our strategy as contemplated or on terms acceptable to us. 15 Table of Contents Investment activities may not produce expected results and may be affected by outside factors.
This strategy adversely impacts returns and cash flows in the short-term. There can be no assurance that the implementation of our strategy will lead to improved results or that we will be able to execute our strategy as contemplated or on terms acceptable to us. Investment activities may not produce expected results and may be affected by outside factors.
In addition, these factors may make it more difficult for us to sell properties or may adversely affect the price we receive for properties that we do sell, as prospective buyers may experience increased costs of capital or difficulties in obtaining capital.
In addition, these factors may make it more difficult for us to sell properties or may adversely affect the price we receive for properties that we do sell, as prospective buyers may experience increased costs of capital or difficulties in obtaining capital. Volatile financial markets may also have an adverse effect on our tenants.
Any problems caused by these third parties, including those resulting from breakdowns or other disruptions in communication services provided by a vendor, failure of a vendor to handle current or higher volumes, cyber attacks and security breaches at a vendor could adversely affect our operations. Competition may adversely affect our ability to purchase properties.
Any problems caused by these third parties, including those resulting from breakdowns or other disruptions in communication services provided by a vendor, failure of a vendor to handle current or higher volumes, cyber attacks and security breaches at a vendor could adversely affect our operations. Further information relating to cybersecurity risk management is discussed in Item 1C.
In addition, in connection with our Board of Trustees' review of strategic alternatives in 2022, we implemented a severance policy for non-executive employees that provided for payments in connection with a termination following a change in control prior to June 30, 2024.
In addition, in connection with our Board of Trustees' review of strategic alternatives in 2022, we implemented a severance policy for non-executive employees that provided for payments in connection with a termination following a change in control prior to June 30, 2024. Accordingly, these payments may discourage a third party from acquiring us. Our ability to issue additional shares.
Market interest rates could have an adverse effect on our borrowing costs, profitability and the value of our fixed-rate debt securities. We have exposure to market risks relating to increases in interest rates due to our variable-rate debt. An increase in interest rates may increase our costs of borrowing on existing variable-rate indebtedness, leading to a reduction in our earnings.
Market interest rates could have an adverse effect on our borrowing costs, profitability and the value of our fixed-rate debt securities. We have exposure to market risks relating to increases in interest rates due to our variable-rate debt. Interest rates rose significantly in 2022 and 2023.
Legislative or regulatory tax changes could have an adverse effect on us. At any time, the federal income tax laws governing REITs or the administrative interpretations of those laws may be amended. Any of those new laws or interpretations may take effect retroactively and could adversely affect us or you as a debt or equity security holder.
At any time, the federal income tax laws governing REITs or the administrative interpretations of those laws may be amended. Any of those new laws or interpretations may take effect retroactively and could adversely affect us or you as a debt or equity security holder. Federal tax legislation passed in 2017 made numerous changes to tax rules.
However, these restrictions and limits may not be adequate in all cases to prevent the transfer of our capital shares in violation of the ownership limitations.
However, these restrictions and limits may not be adequate in all cases to prevent the transfer of our capital shares in violation of the ownership limitations. Legal and Regulatory Risks We face possible liability relating to environmental matters.
Costs of complying with changes in governmental laws and regulations may adversely affect our results of operations. We cannot predict what laws or regulations may be enacted, repealed or modified in the future, how future laws or regulations will be administered or interpreted, or how future laws or regulations will affect our properties.
We cannot predict what laws or regulations may be enacted, repealed or modified in the future, how future laws or regulations will be administered or interpreted, or how future laws or regulations will affect our properties.
As of December 31, 2022, we had aggregate interest rate swap agreements on $300.0 million of borrowings. The counterparties of these arrangements are major financial institutions; however, we are exposed to credit risk in the event of non-performance or default by the counterparties. Further, additional risks, including losses on a hedge position, may reduce the return on our investments.
As of December 31, 2023, we had aggregate interest rate swap agreements on $300.0 million of borrowings until January 31, 2025. The counterparties of these arrangements are major financial institutions; however, we are exposed to credit risk in the event of non-performance or default by the counterparties.
Federal tax legislation passed in 2017 made numerous changes to tax rules. These changes do not affect the REIT qualification rules directly, but may otherwise affect us or our shareholders.
These changes do not affect the REIT qualification rules directly, but may otherwise affect us or our shareholders.
We may incur additional costs to comply with any future requirements. 24 Table of Contents Risks Related to Our REIT Status There can be no assurance that we will remain qualified as a REIT for federal income tax purposes.
Risks Related to Our REIT Status There can be no assurance that we will remain qualified as a REIT for federal income tax purposes.
These statutes could have the effect of discouraging offers to acquire us and of increasing the difficulty of consummating any such offers, even if such acquisition would be in shareholders' best interests. Limits on ownership of our capital shares may have the effect of delaying, deferring or preventing someone from taking control of us.
These statutes could have the effect of discouraging offers to acquire us and of increasing the difficulty of consummating any such offers, even if such acquisition would be in shareholders' best interests. 20 Table of Contents Ownership Limits in Our Declaration of Trust .
Cyber incidents may result in disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our tenant, investor and/or vendor relationships. As our reliance on technology has increased, so have the risks posed to our information systems, both internal and those we have outsourced.
Cybersecurity incidents may result in disrupted operations, including as a result of the loss of access to our information systems, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our tenant, investor and/or vendor relationships.
Consequently, our cash flow and our ability to meet our debt service obligations depend in large part upon the cash flow of our subsidiaries and the payment of funds by our subsidiaries to us in the form of distributions or otherwise.
Consequently, our cash flow and our ability to meet our debt service obligations depend in large part upon the cash flow of our subsidiaries and the payment of funds by our subsidiaries to us in the form of distributions or otherwise. 19 Table of Contents Risks Related to Investment in our Equity We may change the dividend policy for our common shares in the future.
The impacts of the outbreak could, among other things, negatively affect (i) the operation of our properties, (ii) the effectiveness of our strategic decision making, (iii) the operation of an effective cyber security function, (iv) the operation of our key information systems, (v) our ability to make timely filings with the SEC and (vi) our ability to maintain an effective control environment.
Future public health emergencies, and the steps governments take to control them, may negatively affect (i) the operation of our properties, (ii) the effectiveness of our strategic decision making, (iii) the operation of our key information systems, (iv) our ability to make timely filings with the SEC and (v) our ability to maintain an effective control environment.
As a smaller company, we use third-party vendors to maintain our network and information technology requirements. While we carefully select these third-party vendors, we cannot control their actions.
As a landlord, we are also susceptible to cyber attacks on our tenants and their payment systems. In addition, we outsource the maintenance of our information technology systems to third party vendors. As a smaller company, we use third-party vendors to maintain our network and information technology requirements. While we carefully select these third-party vendors, we cannot control their actions.
Accordingly, these payments may discourage a third party from acquiring us. 22 Table of Contents Our ability to issue additional shares. Our declaration of trust authorizes 1,400,000,000 shares of beneficial interest (par value $0.0001 per share) consisting of 600,000,000 common shares, 100,000,000 preferred shares and 700,000,000 shares of beneficial interest classified as excess stock, or excess shares.
Our declaration of trust authorizes 1,400,000,000 shares of beneficial interest (par value $0.0001 per share) consisting of 600,000,000 common shares, 100,000,000 preferred shares and 700,000,000 shares of beneficial interest classified as excess stock, or excess shares. Our Board of Trustees is authorized to cause us to issue these shares without shareholder approval.
Most of the changes applicable to individuals are temporary. 25 Table of Contents General Risk Factors A downgrade in our credit ratings could have a material adverse effect on our business and financial condition.
Most of the changes applicable to individuals are temporary. General Risk Factors A downgrade in our credit ratings could have a material adverse effect on our business and financial condition. The credit ratings assigned to us and our debt could change based upon, among other things, our results of operations and financial condition or the real estate industry generally.
This could significantly harm our revenues, results of operations, financial condition, business prospects and our ability to make distributions to our shareholders. Natural disasters could adversely impact our results. We invest in properties on a nationwide basis. Natural disasters, including earthquakes, storms, tornados, floods and hurricanes, could impact our properties in these and other areas in which we operate.
Natural disasters could adversely impact our results. We invest in properties on a nationwide basis. Natural disasters, including earthquakes, storms, tornados, floods and hurricanes, could impact our properties in these and other areas in which we operate. Incurring losses, costs or business interruptions related to natural disasters may adversely affect our operating and financial results.
We carry comprehensive insurance coverage to mitigate our casualty risk, in amounts and of a kind that we believe are appropriate for the markets where each of our properties and their business operations are located given climate change risk. 18 Table of Contents We may be adversely impacted in the future by potential impacts to the supply chain or stricter energy efficiency standards or greenhouse gas regulations for the commercial building sectors.
We carry comprehensive insurance coverage to mitigate our casualty risk, in amounts and of a kind that we believe are appropriate for the markets where each of our properties and their business operations are located given climate change risk.
To implement this strategy, we have been selling non-industrial assets and recapitalizing special purpose industrial assets, which generally have higher capitalization rates, and buying warehouse and distribution properties, which, in the current market, generally have lower capitalization rates. This strategy impacts growth in the short-term period.
To implement this strategy, we have been selling non-industrial assets and recapitalizing special purpose industrial assets, which generally have higher capitalization rates, and buying warehouse and distribution properties, which generally have lower capitalization rates. We also may sell industrial properties outside of our target markets at capitalization rates higher than we expect to reinvest in our target markets.
As of December 31, 2022, we had $129.1 million of trust preferred securities that mature in April 2037 that is LIBOR indexed. In addition, we have a $300.0 million unsecured term loan which matures January 2025 that is Term SOFR indexed and is subject to interest rate swap agreements through January 2025.
In addition, we have a $300.0 million unsecured term loan which matures January 2027 that is Term SOFR indexed and is subject to interest rate swap agreements through January 2025. Also, our unsecured revolving credit facility is subject to a variable interest rate.
Our properties, especially the properties near seaports, may be exposed to rare catastrophic weather events, such as severe storms, drought, earthquakes, floods, wildfires or other extreme weather events. If the frequency of extreme weather events increases, our exposure to these events could increase and could impact our tenants' operations and their ability to pay rent.
If the frequency of extreme weather events increases, our exposure to these events could increase and could impact our tenants' operations and their ability to pay rent.
Also, our unsecured revolving credit facility is subject to a variable interest rate. The level of our variable-rate indebtedness, along with the interest rate associated with such variable-rate indebtedness, may change in the future and materially affect our interest costs and earnings.
The level of our variable-rate indebtedness, along with the interest rate associated with such variable-rate indebtedness, may change in the future and materially affect our interest costs and earnings. In addition, our interest costs on our fixed-rate indebtedness may increase if we are required to refinance our fixed-rate indebtedness upon maturity at higher interest rates.
The transition from LIBOR to an alternative reference rate could result in higher all-in interest costs on our trust preferred securities, which could impact our financial performance. We have engaged and may engage in hedging transactions that may limit gains or result in losses. We have used derivatives to hedge certain of our variable-rate liabilities.
Higher interest rates could also adversely affect the ability of prospective buyers to obtain financing for properties we intend to sell. We have engaged and may engage in hedging transactions that may limit gains or result in losses. We have used derivatives to hedge certain of our variable-rate liabilities.
Such losses may exceed the amount invested in such instruments. We may also have to pay certain costs, such as transaction fees or breakage costs, related to hedging transactions. Covenants in certain of the agreements governing our debt could adversely affect our financial condition, investment activities and/or operating activities.
Further, additional risks, including losses on a hedge position, may reduce the return on our investments. Such losses may exceed the amount invested in such instruments. We may also have to pay certain costs, such as transaction fees or breakage costs, related to hedging transactions.
Two of our non-consolidated joint ventures have portfolio loans where the loans are cross-collateral with a majority of the assets in the portfolio. We may not be able to generate sufficient cash flow to meet our debt service obligations. Our ability to make payments on and to refinance our indebtedness depends on our ability to generate cash in the future.
Two of our non-consolidated joint ventures have portfolio loans where the loans are cross-collateral with a majority of the assets in the portfolio. The effective subordination of our unsecured indebtedness and any related guaranty may reduce amounts available for payment on our unsecured indebtedness and any related guaranty.
Our plan to grow through the acquisition and development of new properties could be adversely affected by trends in the real estate and financing businesses. The consummation of any future acquisitions will be subject to satisfactory completion of an extensive valuation analysis and due diligence review and to the negotiation of definitive documentation.
Our plan to grow through the acquisition and development of new properties could be adversely affected by trends in the real estate and financing businesses. For example, our ability to grow will be influenced by the relationship between our expected returns on available acquisition and development opportunities in our target markets and our cost of available capital.
The COVID-19 pandemic coincided with labor shortages and increased staffing costs for many companies operating in the United States. COVID-19 related disruptions to the international supply chain, including transportation and distribution delays, longer lead times for construction materials and increased construction costs have resulted in shortages of certain goods and inflationary conditions.
In recent years, public health emergencies, including COVID-19, have caused significant and widespread damage to the economy and the financial markets. The COVID-19 pandemic contributed to labor shortages, supply chain issues, including longer lead times for construction materials and increased construction costs, capital markets disruptions and inflationary conditions.
Uncertainty in the credit markets may negatively impact our ability to access additional debt financing on reasonable terms, which may negatively affect our ability to make acquisitions. A prolonged downturn in the credit markets may cause us to seek alternative sources of potentially less attractive financing and may require us to adjust our business plan accordingly.
Uncertainty in the financial markets may negatively impact our ability to access additional financing on reasonable terms, which may negatively affect our ability to execute our growth strategy.
Removed
Item 1A. Risk Factors Set forth below are material factors that may adversely affect our business and operations. Risks Related to Our Business We are subject to risks related to defaults under, or termination or expiration of, our leases.
Added
Item 1A. Risk Factors In addition to the other information in our Annual Report on Form 10-K, you should consider the risks described below that we believe may be material to investors in evaluating the Company.
Removed
Our growth strategy is based on the acquisition and development of additional industrial properties and related assets. In the context of our business plan, “development” generally means an expansion or renovation of an existing property or the financing and/or acquisition of a newly constructed build-to-suit or speculative property and/or the development of a land parcel.
Added
This section contains forward-looking statements, and in considering these statements, you should refer to the qualifications and limitations on our forward-looking statements that are described on page four above. Risks Related to Our Business We are subject to risks related to defaults under, or termination or expiration of, our leases.
Removed
For newly constructed properties, we may (1) provide a developer with either a combination of financing for the construction of a property or a commitment to acquire a property upon completion of construction of a property and commencement of rent from the tenant, (2) acquire a property subject to a lease and engage a developer to complete construction of a property as required by the lease, or (3) partner with a developer to acquire and develop or acquire on our own and engage a developer to develop land and pursue development opportunities.
Added
Our ability to implement our strategy may also be impeded because we may have difficulty finding opportunities that meet our investment criteria, in addition, our acquisitions and developments may fail to perform in accordance with expectations, including operating and leasing expectations.
Removed
Our ability to implement our strategy may be impeded because we may have difficulty finding new properties and investments at attractive prices that meet our investment criteria, negotiating with new or existing tenants or securing acceptable financing. If we are unable to carry out our strategy, our financial condition and results of operations could be adversely affected.
Added
If we are unable to carry out our growth strategy, our financial condition and results of operations could be adversely affected. Some of our acquisitions and developments may be financed using short-term financing, such as our line of credit, with the expectation of providing permanent financing in the future, such as through an equity or debt offering.
Removed
Acquisitions of additional properties entail the risk that investments will fail to perform in accordance with expectations, including operating and leasing expectations.
Added
Any loss of these types could adversely affect our financial condition and results of operations. In addition, the cost of property and related coverage insurance has increased significantly in recent years due to the rise in construction costs and property values and the decrease in capacity in the insurance market. Cybersecurity incidents may adversely affect our business.
Removed
Some of our acquisitions and developments may be financed using the proceeds of periodic equity or debt offerings, lines of credit or other forms of secured or unsecured financing that may result in a risk that permanent financing for newly acquired projects might not be available or would be available only on disadvantageous terms.
Added
As our reliance on technology has increased, so have the risks posed to our information systems, both internal and those we have outsourced. Although we have implemented processes, procedures and internal controls to mitigate these risks, we have in the past and may in the future be subject to cybersecurity incidents. We are also subject to third-party cybersecurity incident risks.
Removed
The concentration of our investments, among other factors, in industrial assets may expose us to the risk of economic downturns specific to industrial assets to a greater extent than if our investments were diversified.
Added
This competition may result in a higher cost for properties and lower returns and impact our ability to grow. We may have limited control over our joint venture investments.
Removed
Any loss of these types could adversely affect our financial condition and results of operations. Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, misappropriation of assets and/or damage to our business relationships, all of which could negatively impact our financial results.
Added
Concerns over possible economic recession, high interest rates, bank failures, the upcoming U.S. elections, geopolitical issues, including military conflicts, trade wars, labor shortages, and inflation may contribute to increased financial market volatility. 16 Table of Contents The United States financial markets have periodically experienced significant dislocations and liquidity disruptions due to a variety of factors.
Removed
Any processes, procedures and internal controls that we implement, as well as our increased awareness of the nature and extent of a risk of a cyber incident, do not guarantee that our financial results, operations, business relationships or confidential information will not be negatively impacted by such an incident. 16 Table of Contents Insider or employee cyber and security threats are increasingly a concern for all companies, including ours.
Added
We are exposed to the potential direct and indirect impacts of climate change. We are exposed to physical risks from changes in climate. Our properties, especially the properties near seaports, may be exposed to rare catastrophic weather events, such as severe storms, drought, earthquakes, floods, wildfires or other extreme weather events.
Removed
In addition, social engineering and phishing are a particular concern for companies with employees. As a landlord, we are also susceptible to cyber attacks on our tenants and their payment systems. We outsource the maintenance of our information technology systems to third party vendors.
Added
We may be adversely impacted in the future by potential impacts to the supply chain or stricter energy efficiency standards or greenhouse gas regulations for the commercial building sectors.
Removed
We are also continuously working to provide employee awareness training around phishing, malware and other cyber risks to ensure that we are protected, to the greatest extent possible, against cyber risks and security breaches. However, such outsource partners and training may not be sufficient to protect us from all risks.
Added
An increase in interest rates may increase our costs of borrowing on existing variable-rate indebtedness, leading to a reduction in our earnings. As of December 31, 2023, we had $129.1 million of trust preferred securities that mature in April 2037 that are SOFR indexed.
Removed
Further, any such outbreak may disrupt U.S. and global financial markets and could potentially create widespread business continuity issues. In recent years the outbreaks of a number of diseases, including Avian Bird Flu, H1N1, and COVID-19 have increased the risk of a pandemic.
Added
Covenants in certain of the agreements governing our debt could adversely affect our financial condition, investment activities and/or operating activities.
Removed
These developments, as well as other geopolitical factors have resulted in prolonged inflationary conditions that have had a detrimental impact on our tenant base, our ability to lease vacant space and our ability to grow through development and acquisition. This has also resulted in market volatility and large decreases in global stock prices.
Removed
These potential 17 Table of Contents risks have also negatively impacted access to capital, which negatively impacts liquidity and our ability to execute our strategic plans.
Removed
The rapid development and fluidity of any outbreak precludes any prediction as to the ultimate adverse impact of such outbreak.

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Item 2. Properties

Properties — owned and leased real estate

46 edited+8 added−9 removed3 unchanged
Biggest changeTenants (1) Property Type Lease Expirations Number of Leases Square Feet Leased Square Feet Leased as a % of the Consolidated Portfolio (2)(3) ABR Percentage of ABR (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.2 % $ 18,241 6.8 % Nissan Industrial 2027 2 2,971,000 5.5 % 12,908 4.8 % Kellogg Industrial 2027-2029 3 2,801,916 5.2 % 9,575 3.6 % Wal-Mart Industrial 2024 -2031 3 2,351,917 4.4 % 8,773 3.3 % GXO Logistics Industrial 2024-2028 3 1,697,475 3.2 % 7,386 2.7 % Xerox Office 2023 1 202,000 0.4 % 7,070 2.6 % Watco Industrial 2038 1 132,449 0.3 % 6,318 2.4 % Morgan Lewis (5) Office 2024 1 289,432 0.5 % 5,860 2.2 % FedEx Industrial 2028 2 292,021 0.5 % 5,728 2.1 % Mars Wrigley Industrial 2025 1 604,852 1.1 % 5,396 2.0 % Aligned Data Centers (6) Industrial 2042 1 — — % 5,228 1.9 % Undisclosed (7) Industrial 2034 1 1,318,680 2.5 % 5,198 1.9 % 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 1.8 % Owens Corning Industrial 2025-2027 3 863,242 1.6 % 4,860 1.8 % 32 19,869,431 37.0 % $ 112,402 41.8 % (1) Tenant, guarantor or parent.
Biggest changeTenants (1) Property Type Lease Expirations Number of Leases Square Feet Leased Square Feet Leased as a % of the Consolidated Portfolio (2)(3) ABR Percentage of ABR (2)(4) Amazon Industrial 2026-2033 6 3,864,731 7.1 % $ 18,593 6.9 % Nissan Industrial 2027 2 2,971,000 5.4 % 13,082 4.8 % Kellogg Industrial 2027 & 2029 3 2,801,916 5.1 % 9,738 3.6 % Black and Decker Industrial 2029 & 2033 2 2,289,366 4.2 % 9,427 3.5 % Wal-Mart Industrial 2027-2031 3 2,351,917 4.3 % 8,915 3.3 % GXO Logistics Industrial 2024-2028 3 1,697,475 3.1 % 7,604 2.8 % Watco Industrial 2038 1 132,449 0.2 % 6,445 2.4 % FedEx Industrial 2028 2 292,021 0.5 % 6,263 2.3 % Owens Corning Industrial 2025-2027 3 863,242 1.6 % 5,975 2.2 % Mars Wrigley Industrial 2025 1 604,852 1.1 % 5,473 2.0 % Undisclosed (5) Industrial 2034 1 1,318,680 2.4 % 5,315 2.0 % Aligned Data Centers (6) Industrial 2042 1 — — % 5,228 1.9 % Olam 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 1.8 % Asics Industrial 2030 1 855,878 1.6 % 4,541 1.7 % 33 22,523,243 41.3 % $ 116,691 43.1 % (1) Tenant, guarantor or parent.
Statesville NC 639,800 10/31/2026 100 % 30 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2022 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 736 Addison Rd. Erwin NY 408,000 11/30/2026 100 % 29-01 Borden Ave. / 29-10 Hunters Point Ave.
Statesville NC 639,800 10/31/2026 100 % 30 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2023 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 736 Addison Rd. Erwin NY 408,000 11/30/2026 100 % 29-01 Borden Ave./29-10 Hunters Point Ave.
Below are the industries in our warehouse/distribution portfolio based on 2022 ABR for consolidated properties owned as of December 31, 2022: Lease Term . As a primarily single-tenant investor, we generally maintain a weighted-average lease term that is longer than most industrial REITs, favoring certainty of cash flow over lease-rollover risk inherent in single-tenant properties.
Below are the industries in our warehouse/distribution portfolio based on 2023 ABR for consolidated properties owned as of December 31, 2023: Lease Term . As a primarily single-tenant investor, we generally maintain a weighted-average lease term that is longer than most industrial REITs, favoring certainty of cash flow over lease-rollover risk inherent in single-tenant properties.
At the end of these long-term ground leases, unless extended or the purchase option is exercised, the land together with all improvements thereon reverts to the landowner. Office Leases . We lease our headquarters office space in New York, New York and our satellite offices in Dallas, Texas and West Palm Beach, Florida. Leverage.
At the end of these long-term ground leases, unless extended or the purchase option is exercised, the land together with all improvements thereon reverts to the landowner. Office Leases . We lease our headquarters office space in New York, New York and our satellite offices in Dallas, Texas and West Palm Beach, Florida. Property-Level Leverage.
The following tables list our properties by type, their locations, the net rentable square feet, the expiration of the current lease term and percent leased, as applicable, as of December 31, 2022. 28 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2022 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased Stabilized Properties: 3405 S.
The following tables list our properties by type, their locations, the net rentable square feet, the expiration of the current lease term and percent leased, as applicable, as of December 31, 2023. 28 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2023 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased Stabilized Properties: 3405 S.
Cartersville GA 396,000 9/30/2031 100 % 51 Busch Dr. Cartersville GA 328,000 7/31/2031 100 % 1625 Oakley Industrial Blvd. Fairburn GA 907,675 10/31/2028 100 % 490 Westridge Pkwy. McDonough GA 1,121,120 1/31/2028 100 % 493 Westridge Pkwy. McDonough GA 676,000 10/31/2023 100 % 335 Morgan Lakes Industrial Blvd. Pooler GA 499,500 7/31/2027 100 % 1004 Trade Center Pkwy.
Cartersville GA 396,000 9/30/2031 100 % 51 Busch Dr. Cartersville GA 328,000 7/31/2031 100 % 1625 Oakley Industrial Blvd. Fairburn GA 907,675 10/31/2028 100 % 490 Westridge Pkwy. McDonough GA 1,121,120 1/31/2028 100 % 493 Westridge Pkwy. McDonough GA 676,000 10/31/2030 100 % 335 Morgan Lakes Industrial Blvd. Pooler GA 499,500 7/31/2027 100 % 1004 Trade Center Pkwy.
Ocala FL 617,055 8/31/2030 100 % 2455 Premier Row Orlando FL 205,016 3/31/2026 100 % 3775 Fancy Farms Rd. Plant City FL 510,484 9/30/2027 65 % 3102 Queen Palm Dr. Tampa FL 229,605 2/28/2026 100 % 95 International Pkwy. Adairsville GA 225,211 3/31/2025 100 % 7875 White Rd. SW Austell GA 604,852 5/31/2025 100 % 41 Busch Dr.
Ocala FL 617,055 8/31/2030 100 % 2455 Premier Row Orlando FL 205,016 3/31/2026 100 % 3775 Fancy Farms Rd. Plant City FL 510,484 3/31/2028 100 % 3102 Queen Palm Dr. Tampa FL 229,605 2/28/2026 100 % 95 International Pkwy. Adairsville GA 225,211 3/31/2025 100 % 7875 White Rd. SW Austell GA 604,852 5/31/2025 100 % 41 Busch Dr.
As of December 31, 2022, the weighted-average lease term in our industrial portfolio was 6.5 years. 37 Table of Contents The following table sets forth information about the 15 largest tenants/guarantors in our portfolio as of December 31, 2022 based on total annualized base rental revenue as of December 31, 2022 ($000s, except square feet).
As of December 31, 2023, the weighted-average lease term in our industrial portfolio was 6.0 years. 37 Table of Contents The following table sets forth information about the 15 largest tenants/guarantors in our portfolio as of December 31, 2023 based on total annualized base rental revenue as of December 31, 2023 ($000s, except square feet).
The weighted-average remaining lease term was 6.2 years. 33 Table of Contents LXP NON-CONSOLIDATED PORTFOLIO PROPERTY CHART As of December 31, 2022 Property Location City State Percent Owned Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased Office/Other properties: 2500 Patrick Henry Pkwy. McDonough GA 20% 111,911 6/30/2025 100 % 3902 Gene Field Rd. St.
The weighted-average remaining lease term was 6.0 years. 33 Table of Contents LXP NON-CONSOLIDATED PORTFOLIO PROPERTY CHART As of December 31, 2023 Property Location City State Percent Owned Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased Office/Other properties: 2500 Patrick Henry Pkwy. McDonough GA 20% 111,911 6/30/2029 100 % 3902 Gene Field Rd. St.
In 2022, 2021 and 2020, no tenant/guarantor represented greater than 10% of our annual base rental revenue.
In 2023, 2022 and 2021, no tenant/guarantor represented greater than 10% of our annual base rental revenue.
Generally, all multi-tenant assets are included in unrated. See Item 1A “Risk Factors”. 39 Table of Contents
Generally, all multi-tenant assets are included in unrated. See Item 1A “Risk Factors”. 38 Table of Contents
As of December 31, 2022, the annualized cash base rent for the non-consolidated portfolio was $8.56 per square foot and the weighted-average remaining lease term was 7.1 years. 35 Table of Contents Development Projects The following is a summary of our warehouse/distribution ongoing development projects as of December 31, 2022: Ongoing Development Projects Project (% owned) # of Buildings Market Estimated Sq.
As of December 31, 2023, the annualized cash base rent for the non-consolidated portfolio was $7.58 per square foot and the weighted-average remaining lease term was 6.8 years. 35 Table of Contents Development Projects The following is a summary of our warehouse/distribution ongoing development projects as of December 31, 2023: Ongoing Development Projects Project (% owned) # of Buildings Market Estimated Sq.
(2) Total shown may differ from detail amounts due to rounding. (3) Excludes vacant square feet. (4) Based on ABR for consolidated properties owned as of December 31, 2022. (5) Includes parking operations. (6) Industrial development leased land, which is included in industrial portfolio. (7) Lease restricts certain disclosures.
(2) Total shown may differ from detail amounts due to rounding. (3) Excludes vacant square feet. (4) Based on ABR for consolidated properties owned as of December 31, 2023. (5) Lease restricts certain disclosures (6) Industrial development leased land, which is included in industrial portfolio.
As of December 31, 2022, annualized cash base rent for the consolidated portfolio was $4.72 per square foot, excluding assets primarily consisting of land leases.
As of December 31, 2023, annualized cash base rent for the consolidated portfolio was $4.71 per square foot, excluding assets primarily consisting of land leases.
Item 2. Properties Real Estate Portfolio General. As of December 31, 2022, we had ownership interests in approximately 116 consolidated real estate properties containing approximately 54.0 million square feet of rentable space, which were approximately 99.5% leased based upon net rentable square feet. All properties in which we have an interest are held through at least one property owner subsidiary.
Item 2. Properties Real Estate Portfolio General. As of December 31, 2023, we had ownership interests in approximately 115 consolidated real estate properties containing approximately 54.6 million square feet of rentable space, which were approximately 99.8% leased based upon net rentable square feet. All properties in which we have an interest are held through at least one property owner subsidiary.
Phoenix AZ 268,872 5/31/2037 100 % Parcel Number: 501-42-015B (1) Phoenix AZ N/A 11/5/2042 100 % 1515 South 91st Ave. Phoenix AZ 496,204 12/31/2027 100 % 9494 W. Buckeye Rd. Tolleson AZ 186,336 9/30/2026 100 % 5275 Drane Field Rd. Lakeland FL 222,134 5/31/2036 100 % 3400 NW 35th St.
Goodyear AZ 160,140 12/31/2025 100 % 1515 South 91st Ave. Phoenix AZ 496,204 12/31/2027 100 % 8989 W Buckeye Rd. Phoenix AZ 268,872 5/31/2037 100 % Parcel Number: 501-42-015B Phoenix AZ — 11/5/2042 100 % 9494 W. Buckeye Rd. Tolleson AZ 186,336 9/30/2026 100 % 5275 Drane Field Rd. Lakeland FL 222,134 5/31/2036 100 % 3400 NW 35th Street Rd.
Savannah GA 419,667 7/31/2026 100 % 1315 Dean Forest Rd. Savannah GA 88,503 8/31/2025 100 % 1319 Dean Forest Rd. Savannah GA 355,527 6/30/2025 100 % 7225 Goodson Rd. Union City GA 370,000 5/31/2024 100 % 3931 Lakeview Corporate Dr. Edwardsville IL 769,500 9/30/2026 100 % 4015 Lakeview Corporate Dr.
Savannah GA 419,667 7/31/2026 100 % 1315 Dean Forest Rd. Savannah GA 88,503 8/31/2025 100 % 1319 Dean Forest Rd. Savannah GA 355,527 6/30/2025 100 % 7225 Goodson Rd. Union City GA 370,000 5/31/2029 100 % 3931 Lakeview Corporate Dr.
As of December 31, 2022, we had outstanding consolidated mortgages and notes payable of approximately $73.2 million with a weighted-average interest rate of approximately 4.0% and a weighted-average maturity of 6.7 years. Property Charts .
As of December 31, 2023, we had outstanding consolidated mortgages and notes payable of approximately $60.9 million with a weighted-average interest rate of approximately 4.0% and a weighted-average maturity of 6.4 years. Property Charts .
Houston TX 20% 187,800 3/31/2035 100 % 901 East Bingen Point Way Bingen WA 20% 124,539 5/31/2024 100 % Special purpose industrial total 6,719,210 100 % Non-consolidated portfolio total 8,387,158 100 % In addition, we have two non-consolidated joint ventures with a developer, which own developable parcels of land in Etna, Ohio.
Houston TX 20% 187,800 3/31/2035 100 % 901 East Bingen Point Way Bingen WA 20% 124,539 12/31/2032 100 % Special purpose industrial total 6,719,210 100 % Non-consolidated portfolio total 7,671,205 97.2 % In addition, we have two non-consolidated joint ventures with a developer, which own developable parcels of land in Etna, Ohio.
McQueen Rd. Chandler AZ 201,784 3/31/2033 100 % 4445 N. 169th Ave. Goodyear AZ 160,140 12/31/2025 100 % 17510 W. Thomas Rd. Goodyear AZ 468,182 11/30/2036 100 % 16811 W. Commerce Dr. Goodyear AZ 540,349 4/30/2026 100 % 255 143rd Ave. Goodyear AZ 801,424 9/30/2030 100 % 8989 W. Buckeye Rd.
McQueen Rd. Chandler AZ 201,784 3/31/2033 100 % 16811 W. Commerce Dr. Goodyear AZ 540,349 4/30/2026 100 % 17510 W. Thomas Rd. Goodyear AZ 468,182 11/30/2036 100 % 255 143rd Ave. Goodyear AZ 801,424 9/30/2030 100 % 3595 N Cotton Ln. Goodyear AZ 392,278 8/31/2033 100 % 4445 N. 169th Ave.
Lockbourne OH 320,190 3/31/2024 100 % 575-599 Gateway Blvd. Monroe OH 194,936 6/30/2024 100 % 600 Gateway Blvd. Monroe OH 994,013 8/31/2027 100 % 675 Gateway Blvd. Monroe OH 143,664 2/28/2032 100 % 700 Gateway Blvd. Monroe OH 1,299,492 6/30/2030 100 % 10345 Philipp Pkwy. Streetsboro OH 649,250 10/31/2026 100 % 250 Rittenhouse Cir.
Hebron OH 400,522 8/31/2027 100 % 2155 Rohr Rd. Lockbourne OH 320,190 3/31/2024 100 % 575-599 Gateway Blvd. Monroe OH 194,936 6/30/2024 100 % 600 Gateway Blvd. Monroe OH 994,013 8/31/2027 100 % 675 Gateway Blvd. Monroe OH 143,664 2/28/2032 100 % 700 Gateway Blvd. Monroe OH 1,299,492 6/30/2030 100 % 10345 Philipp Pkwy.
Bristol PA 241,977 11/30/2026 100 % 70 Tyger River Dr. Duncan SC 408,000 1/31/2024 100 % 230 Apple Valley Rd. Duncan SC 275,400 4/30/2029 100 % 231 Apple Valley Rd. Duncan SC 196,000 1/31/2026 100 % 235 Apple Valley Rd. Duncan SC 177,320 10/31/2026 100 % 402 Apple Valley Rd. Duncan SC 235,600 12/31/2029 100 % 417 Apple Valley Rd.
Streetsboro OH 649,250 10/31/2026 100 % 250 Rittenhouse Cir. Bristol PA 241,977 11/30/2026 100 % 230 Apple Valley Rd. Duncan SC 275,400 4/30/2029 100 % 231 Apple Valley Rd. Duncan SC 196,000 1/31/2026 100 % 235 Apple Valley Rd. Duncan SC 177,320 10/31/2026 100 % 402 Apple Valley Rd. Duncan SC 235,600 12/31/2029 100 % 417 Apple Valley Rd.
San Antonio TX 849,275 4/30/2027 100 % 2601 Bermuda Hundred Rd. Chester VA 1,034,470 6/30/2030 100 % 150 Mercury Way Winchester VA 324,535 11/30/2024 100 % 291 Park Center Dr. Winchester VA 344,700 5/31/2031 100 % 80 Tyson Dr.
Pasadena TX 233,190 8/31/2028 100 % 9701 New Decade Dr. Pasadena TX 102,863 8/31/2024 100 % 16407 Applewhite Rd. San Antonio TX 849,275 4/30/2027 100 % 2601 Bermuda Hundred Rd. Chester VA 1,034,470 6/30/2030 100 % 150 Mercury Way Winchester VA 324,535 11/30/2024 100 % 291 Parkside Dr. Winchester VA 344,700 5/31/2031 100 % 80 Tyson Dr.
Long Island City NY 140,330 3/31/2028 100 % 351 Chamber Dr. Chillicothe OH 489,150 12/31/2031 100 % 1860 Walcutt Rd. Columbus OH 292,730 11/21/2029 100 % 7005 Cochran Rd. Glenwillow OH 458,000 7/31/2025 100 % 191 Arrowhead Dr. Hebron OH 250,410 9/30/2033 100 % 200 Arrowhead Dr. Hebron OH 400,522 8/31/2027 100 % 2155 Rohr Rd.
Long Island City NY 140,330 3/31/2028 100 % 351 Chamber Dr. Chillicothe OH 489,150 12/31/2031 100 % 1860 Walcutt Rd. Columbus OH 292,730 11/21/2029 100 % 9800 Schuster Way Etna OH 1,074,840 10/31/2033 100 % 7005 Cochran Rd. Glenwillow OH 458,000 7/31/2025 100 % 191 Arrowhead Dr. Hebron OH 250,410 2/28/2034 100 % 200 Arrowhead Dr.
Edwardsville IL 1,017,780 5/31/2030 100 % 29 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2022 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 6225 E. Minooka Rd. Minooka IL 1,034,200 9/30/2029 100 % 1460 Cargo Court Minooka IL 705,661 11/30/2029 100 % 200 International Pkwy. S.
Edwardsville IL 769,500 9/30/2026 100 % 29 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2023 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 4015 Lakeview Corporate Dr. Edwardsville IL 1,017,780 5/31/2030 100 % 6225 E. Minooka Rd.
Fort Mill SC 169,218 5/31/2024 100 % Other total 1,411,452 99.4 % Consolidated portfolio total 53,955,949 99.5 % As of December 31, 2022, annualized cash base rent for the other portfolio was $13.99 per square foot, excluding Baltimore, Maryland, and the weighted-average remaining lease term was 2.4 years.
Fort Mill SC 169,083 5/31/2024 100 % Other total 338,301 100 % Consolidated portfolio total 54,646,980 99.8 % As of December 31, 2023, annualized cash base rent for the other portfolio was $12.50 per square foot, excluding Baltimore, Maryland. The weighted-average remaining lease term was 2.1 years.
Northlake TX 1,214,526 8/31/2029 100 % 17505 Interstate Hwy. 35W Northlake TX 500,556 10/31/2024 100 % 10535 Red Bluff Rd. Pasadena TX 257,835 8/31/2023 100 % 10565 Red Bluff Rd. Pasadena TX 248,240 4/30/2025 100 % 4100 Malone Dr. Pasadena TX 233,190 8/31/2028 100 % 9701 New Decade Dr. Pasadena TX 102,863 8/31/2024 100 % 16407 Applewhite Rd.
Missouri City TX — 4/30/2032 100 % 17505 Interstate Hwy. 35W Northlake TX 500,556 10/31/2034 100 % 8601 E. Sam Lee Ln. Northlake TX 1,214,526 8/31/2029 100 % 10535 Red Bluff Rd. Pasadena TX 257,835 4/30/2029 100 % 10565 Red Bluff Rd. Pasadena TX 248,240 4/30/2025 100 % 4100 Malone Dr.
Joseph MO 20% 98,849 6/30/2027 100 % 1210 AvidXchange Ln. Charlotte NC 20% 201,450 4/30/2032 100 % 2221 Schrock Rd. Columbus OH 20% 42,290 7/6/2027 100 % 500 Olde Worthington Rd. Westerville OH 20% 97,000 3/31/2026 100 % 25 Lakeview Dr. Jessup PA 20% 150,000 8/7/2027 100 % 601 & 701 Experian Pkwy.
Joseph MO 20% 98,849 6/30/2027 100 % 1210 AvidXchange Ln. Charlotte NC 20% 201,450 4/30/2032 100 % 2221 Schrock Rd. Columbus OH 20% 42,290 7/6/2027 100 % 500 Olde Worthington Rd. Westerville OH 20% 97,747 3/31/2026 86 % 4001 International Pkwy. Carrollton TX 20% 138,443 12/31/2025 100 % 8900 Freeport Pkwy.
Millington TN 701,819 9/30/2024 100 % 200 Sam Griffin Rd. Smyrna TN 1,505,000 4/30/2027 100 % 2115 East Belt Line Rd. Carrollton TX 356,855 6/30/2035 100 % 3737 Duncanville Rd. Dallas TX 510,400 9/30/2026 100 % 4600 Underwood Rd. Deer Park TX 402,648 12/31/2026 100 % 4005 E. I-30 Grand Prairie TX 215,000 3/31/2037 100 % 13901/14035 Industrial Rd.
Jackson TN 1,062,055 10/31/2027 100 % 633 Garrett Pkwy. Lewisburg TN 310,000 3/31/2026 100 % 3820 Micro Dr. Millington TN 701,819 9/30/2024 100 % 200 Sam Griffin Rd. Smyrna TN 1,505,000 4/30/2027 100 % 2115 East Belt Line Rd. Carrollton TX 356,855 6/30/2035 100 % 3737 Duncanville Rd. Dallas TX 510,400 9/30/2026 100 % 4600 Underwood Rd.
Duncan SC 195,000 3/31/2027 100 % 425 Apple Valley Rd. Duncan SC 327,360 9/30/2026 100 % 21 Inland Pkwy. Greer SC 1,318,680 12/31/2034 100 % 7820 Reidville Rd. Greer SC 210,820 Various 100 % 7870 Reidville Rd. Greer SC 396,073 9/30/2025 100 % 8201 Reidville Rd. Greer SC 797,936 4/30/2035 100 % 5795 North Blackstock Rd.
Duncan SC 195,000 3/31/2027 100 % 425 Apple Valley Rd. Duncan SC 327,360 9/30/2026 100 % 70 Tyger River Dr. Duncan SC 408,000 1/31/2029 100 % 140 Smith Farms Pkwy. Greer SC 304,884 2/28/2029 100 % 170 Smith Farms Pkwy. Greer SC 797,936 4/30/2035 100 % 21 Inland Pkwy. Greer SC 1,318,680 12/31/2034 100 % 7820 Reidville Rd.
Minooka IL 473,280 12/31/2029 100 % 1001 Innovation Rd. Rantoul IL 813,126 10/31/2034 100 % 3686 S. Central Ave. Rockford IL 93,000 12/31/2024 100 % 749 Southrock Dr. Rockford IL 150,000 12/31/2024 100 % 1621 Veterans Memorial Pkwy. E. Lafayette IN 309,400 9/30/2029 100 % 1285 W. State Road 32 Lebanon IN 741,880 1/31/2024 100 % 19 Bob Glidden Blvd.
Minooka IL 1,034,200 9/30/2029 100 % 1460 Cargo Court Minooka IL 705,661 11/30/2029 100 % 200 International Pkwy. S. Minooka IL 473,280 12/31/2029 100 % 1001 Innovation Rd. Rantoul IL 813,126 10/31/2034 100 % 3686 South Central Ave. Rockford IL 93,000 12/31/2027 100 % 749 Southrock Dr. Rockford IL 150,000 12/31/2024 100 % 1627 Veterans Memorial Pkwy. E.
Houston TX 132,449 3/31/2038 100 % 1704 S. I-45 Hutchins TX 120,960 6/30/2030 100 % 3201 N. Houston School Rd. Lancaster TX 468,300 1/31/2030 100 % 13930 Pike Rd. Missouri City TX N/A 4/30/2032 100 % 8601 E. Sam Lee Ln.
Deer Park TX 402,648 12/31/2026 100 % 4005 E. I-30 Grand Prairie TX 215,000 3/31/2037 100 % 13600/13901 Industrial Road Houston TX 132,449 3/31/2038 100 % 1704 S. I-45 Hutchins TX 120,960 6/30/2030 100 % 3201 N. Houston School Rd. Lancaster TX 468,300 1/31/2030 100 % 13930 Pike Rd.
Olive Branch MS 269,902 5/31/2028 100 % 8500 Nail Rd. Olive Branch MS 716,080 7/31/2029 100 % 671 Washburn Switch Rd. Shelby NC 673,425 5/31/2036 100 % 2203 Sherrill Dr.
Canton MS 1,466,000 2/28/2027 100 % 11555 Silo Dr. Olive Branch MS 927,742 8/31/2024 100 % 11624 S. Distribution Cv. Olive Branch MS 1,170,218 6/30/2029 100 % 6495 Polk Ln. Olive Branch MS 269,902 5/31/2028 100 % 8500 Nail Rd. Olive Branch MS 716,080 7/31/2029 100 % 671 Washburn Switch Rd. Shelby NC 673,425 5/31/2036 100 % 2203 Sherrill Dr.
Cleveland TN 851,370 3/31/2024 100 % 31 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2022 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 201 James Lawrence Rd. Jackson TN 1,062,055 10/31/2027 100 % 633 Garrett Pkwy. Lewisburg TN 310,000 3/31/2026 100 % 3820 Micro Dr.
Spartanburg SC 341,660 7/31/2029 100 % 31 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2023 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 6050 Dana Way Antioch TN 674,528 6/30/2031 100 % 1520 Lauderdale Memorial Hwy. Cleveland TN 851,370 3/31/2031 100 % 201 James Lawrence Rd.
Elizabethtown KY 20% 539,592 6/30/2025 100 % 301 Bill Bryan Blvd. Hopkinsville KY 20% 424,904 6/30/2025 100 % 4010 Airpark Dr. Owensboro KY 20% 211,598 6/30/2025 100 % 113 Wells St. North Berwick ME 20% 993,685 4/30/2024 100 % 904 Industrial Rd. Marshall MI 20% 246,508 9/30/2028 100 % 43955 Plymouth Oaks Blvd.
Dry Ridge KY 20% 336,350 6/30/2031 100 % 730 North Black Branch Rd. Elizabethtown KY 20% 167,770 6/30/2025 100 % 750 North Black Branch Rd. Elizabethtown KY 20% 539,592 6/30/2025 100 % 301 Bill Bryan Blvd. Hopkinsville KY 20% 424,904 6/30/2025 100 % 4010 Airpark Dr. Owensboro KY 20% 211,598 6/30/2025 100 % 113 Wells St.
The following chart sets forth certain information regarding lease expirations for the next ten years in our consolidated portfolio at December 31, 2022: Year Number of Lease Expirations Square Feet ABR ($000's) Percentage of ABR 2023 4 1,137,055 $ 10,526 3.9 % 2024 24 7,187,622 34,876 13.1 % 2025 15 3,584,019 20,000 7.5 % 2026 24 6,857,828 29,917 11.2 % 2027 16 8,885,590 37,149 13.9 % 2028 7 2,668,246 15,335 5.7 % 2029 10 6,329,161 23,063 8.6 % 2030 9 6,274,840 26,104 9.8 % 2031 12 4,332,795 20,791 7.8 % 2032 3 687,984 5,232 2.0 % 38 Table of Contents The following chart sets forth the 2022 ABR ($000's) based on the credit rating of our consolidated tenants at December 31, 2022 (1) : ABR Percentage of ABR Investment Grade $ 145,758 54.2 % Non-investment Grade 37,408 13.9 % Unrated 85,600 31.9 % $ 268,766 100.0 % (1) Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
The following chart sets forth certain information regarding lease expirations for the next ten years in our consolidated portfolio at December 31, 2023: Year Number of Lease Expirations Square Feet ABR ($000's) Percentage of ABR 2024 13 3,224,253 $ 16,030 5.9 % 2025 13 3,137,998 18,313 6.8 % 2026 25 7,052,764 32,861 12.1 % 2027 16 8,765,734 37,114 13.7 % 2028 8 3,074,237 18,139 6.7 % 2029 18 8,864,350 35,840 13.2 % 2030 10 6,950,840 30,147 11.1 % 2031 12 5,060,431 22,237 8.2 % 2032 3 687,984 5,348 2.0 % 2033 3 1,668,902 12,335 4.6 % The following chart sets forth ABR ($000's) based on the credit rating of our consolidated tenants at December 31, 2023 (1) : ABR Percentage of ABR Investment Grade $ 135,165 49.9 % Non-investment Grade 48,086 17.8 % Unrated 87,429 32.3 % $ 270,680 100.0 % (1) Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
Plymouth MI 20% 311,612 10/31/2030 100 % 26700 Bunert Rd. Warren MI 20% 260,243 10/31/2032 100 % 2880 Kenny Biggs Rd. Lumberton NC 20% 423,280 11/30/2026 100 % 5670 Nicco Way North Las Vegas NV 20% 180,235 9/30/2034 100 % 10590 Hamilton Ave. Cincinnati OH 20% 264,598 12/31/2027 100 % 590 Ecology Ln.
Lumberton NC 20% 423,280 11/30/2026 100 % 5670 Nicco Way North Las Vegas NV 20% 180,235 9/30/2034 100 % 10590 Hamilton Ave. Cincinnati OH 20% 264,598 12/31/2027 100 % 590 Ecology Ln. Chester SC 20% 420,597 7/14/2025 100 % 50 Tyger River Dr. Duncan SC 20% 221,833 8/31/2027 100 % 900 Industrial Blvd.
Anniston AL 20% 276,782 11/24/2029 100 % 4801 North Park Dr. Opelika AL 20% 165,493 5/31/2042 100 % 1020 W. Airport Rd. Romeoville IL 20% 188,166 10/31/2031 100 % 10000 Business Blvd. Dry Ridge KY 20% 336,350 6/30/2031 100 % 730 North Black Branch Rd. Elizabethtown KY 20% 167,770 6/30/2025 100 % 750 North Black Branch Rd.
Irving TX 20% 261,305 5/31/2033 23.2 % Office/Other total 951,995 77.5 % Special purpose industrial properties: 318 Pappy Dunn Blvd. Anniston AL 20% 276,782 11/24/2029 100 % 4801 North Park Dr. Opelika AL 20% 165,493 5/31/2042 100 % 1020 W. Airport Rd. Romeoville IL 20% 188,166 10/31/2031 100 % 10000 Business Blvd.
Whiteland IN 530,400 3/31/2031 100 % 76 Bob Glidden Blvd. Whiteland IN 168,480 12/31/2026 100 % 180 Bob Glidden Blvd. Whiteland IN 179,530 12/31/2026 100 % 4600 Albert S White Dr. Whitestown IN 149,072 12/31/2024 100 % 4900 Albert S White Dr. Whitestown IN 149,072 8/31/2025 100 % 5352 Performance Way Whitestown IN 380,000 7/31/2025 100 % 3751 S.
Whitestown IN 149,072 12/31/2024 100 % 4900 Albert S White Dr. Whitestown IN 149,072 8/31/2025 100 % 5352 Performance Way Whitestown IN 380,000 7/31/2025 100 % 5424 Albert S. White Dr. Whitestown IN 1,016,244 11/30/2031 100 % 27200 West 157th St.
Developable Acres GAAP Investment Balance as of 12/31/2022 ($000) LXP Amount Funded as of 12/31/2022 ($000) (2) Non-consolidated: Etna Park 70 (90%) Columbus, OH 66 $ 12,975 $ 13,599 Etna Park 70 East (90%) Columbus, OH 21 2,126 2,363 $ 15,101 $ 15,962 (1) Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any.
Comfort Phase II (80%) Indianapolis, IN 116 5,328 4,283 ATL Fairburn (100%) Atlanta, GA 14 1,732 1,751 450 $ 80,743 $ 80,342 Project (% owned) Market Approximate Acres GAAP Investment Balance as of 12/31/2023 ($000) (2) LXP Amount Funded as of 12/31/2023 ($000) (3) Non-consolidated: Etna Park 70 (90%) Columbus, OH 52 $ 10,320 $ 13,778 Etna Park 70 East (90%) Columbus, OH 21 2,245 2,674 73 $ 12,565 $ 16,452 (1) Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer fee or partner promote, if any.
Chester SC 20% 420,597 7/14/2025 100 % 34 Table of Contents LXP NON-CONSOLIDATED PORTFOLIO PROPERTY CHART As of December 31, 2022 Property Location City State Percent Owned Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 50 Tyger River Dr. Duncan SC 20% 221,833 8/31/2027 100 % 900 Industrial Blvd.
Crossville TN 20% 222,200 9/30/2033 100 % 120 Southeast Pkwy. Dr. Franklin TN 20% 289,330 12/31/2028 100 % 34 Table of Contents LXP NON-CONSOLIDATED PORTFOLIO PROPERTY CHART As of December 31, 2023 Property Location City State Percent Owned Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 7007 F.M. 362 Rd.
Winchester VA 400,400 12/18/2031 100 % Stabilized total 52,544,497 99.5 % Warehouse/Distribution total 52,544,497 99.5 % (1) Includes industrial development leased land. As of December 31, 2022, annualized cash base rent for the warehouse/distribution portfolio, excluding assets primarily consisting of land leases was $4.47 per square foot.
As of December 31, 2023, annualized cash base rent for the warehouse/distribution portfolio, excluding assets primarily consisting of land leases was $4.66 per square foot. The weighted-average remaining lease term was 6.0 years.
The weighted-average remaining lease term was 6.5 years. 32 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART OTHER As of December 31, 2022 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 3333 Coyote Hill Rd. Palo Alto CA 202,000 12/14/2023 100 % 1901 Ragu Dr.
LXP CONSOLIDATED PORTFOLIO PROPERTY CHART OTHER As of December 31, 2023 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 30 Light St. Baltimore MD — 12/31/2048 100 % 3480 Stateview Blvd. Fort Mill SC 169,218 5/31/2024 100 % 3476 Stateview Blvd.
North Minneapolis MN 18,620 12/31/2025 100 % 549 Wingo Rd. Byhalia MS 855,878 3/31/2030 100 % 1550 Hwy. 302 Byhalia MS 615,600 9/30/2027 100 % 554 Nissan Pkwy. Canton MS 1,466,000 2/28/2027 100 % 11555 Silo Dr. Olive Branch MS 927,742 4/30/2024 100 % 11624 S. Distribution Cv. Olive Branch MS 1,170,218 6/30/2029 100 % 6495 Polk Ln.
New Century KS 446,500 1/31/2027 100 % 200 Richard Knock Way Walton KY 232,500 12/31/2031 100 % 300 Richard Knock Way Walton KY 544,320 4/30/2032 100 % 1700 47th Ave. North Minneapolis MN 18,620 12/31/2025 100 % 1550 Hwy 302 Byhalia MS 615,600 9/30/2027 100 % 549 Wingo Rd. Byhalia MS 855,878 3/31/2030 100 % 554 Nissan Pkwy.
Estimated Project Cost (1) GAAP Investment Balance as of 12/31/2022 ($000) LXP Amount Funded as of 12/31/2022 ($000) (2) Actual/Estimated Building Completion Date % Leased as of 12/31/2022 Consolidated: The Cubes at Etna East (95%) (3) 1 Columbus, OH 1,074,840 $ 72,850 $ 61,171 $ 58,455 3Q 2022 — % Ocala (80%) 1 Central Florida 1,085,280 83,100 73,737 63,388 1Q 2023 — % Mt.
Estimated Project Cost (1) GAAP Investment Balance as of 12/31/2023 ($000) (2) LXP Amount Funded as of 12/31/2023 ($000) (3) Building Completion Date % Leased as of 12/31/2023 Placed in Service Date Consolidated: Development Projects Leased Cotton 303 (93%) (4) 1 Phoenix, AZ 488,400 $ 55,300 $ 50,716 $ 44,523 1Q 2024 100 % 1Q 2024 1 488,400 55,300 50,716 44,523 Development Projects Available for Lease: Ocala (80%) 1 Central Florida 1,085,280 $ 85,200 $ 80,184 $ 70,605 1Q 2023 — % — Mt.
Crossville TN 20% 222,200 9/30/2033 100 % 120 Southeast Pkwy. Dr. Franklin TN 20% 289,330 12/31/2028 100 % 7007 F.M. 362 Rd. Brookshire TX 20% 262,095 3/31/2035 100 % 13863 Industrial Rd.
Brookshire TX 20% 262,095 3/31/2035 100 % 13863 Industrial Rd.
Removed
CR 500 E. Whitestown IN 1,016,244 11/30/2031 100 % 27200 West 157th St. New Century KS 446,500 1/31/2027 100 % 200 Richard Knock Way Walton KY 232,500 12/31/2031 100 % 300 Richard Knock Way Walton KY 544,320 4/30/2032 100 % 2860 Clark St. Detroit MI 189,960 10/22/2035 100 % 1700 47th Ave.
Added
Lafayette IN 309,400 9/30/2029 100 % 1285 W. State Road 32 Lebanon IN 741,880 1/31/2029 100 % 180 Bob Glidden Blvd. Whiteland IN 179,530 12/31/2026 100 % 19 Bob Glidden Blvd. Whiteland IN 530,400 3/31/2031 100 % 76 Bob Glidden Blvd. Whiteland IN 168,480 12/31/2026 100 % 4600 Albert S White Dr.
Removed
Spartanburg SC 341,660 7/31/2024 100 % 1021 Tyger Lake Rd. Spartanburg SC 213,200 2/28/2031 100 % 6050 Dana Way Antioch TN 674,528 6/30/2031 89 % 1520 Lauderdale Memorial Hwy.
Added
Greer SC 210,820 12/31/2027 100 % 7870 Reidville Rd. Greer SC 396,073 9/30/2025 100 % 1021 Tyger Lake Rd. Spartanburg SC 213,200 2/28/2031 100 % 5795 North Blackstock Rd.
Removed
Owensboro KY 443,380 12/19/2025 100 % 30 Light St. Baltimore MD N/A 12/31/2048 100 % 4 Apollo Dr. Whippany NJ 123,734 11/30/2031 100 % 1701 Market St. Philadelphia PA 304,037 1/31/2024 97 % 3476 Stateview Blvd. Fort Mill SC 169,083 5/31/2024 100 % 3480 Stateview Blvd.
Added
Winchester VA 400,400 12/18/2031 100 % Stabilized total 54,126,539 100 % Non-Stabilized Properties: 1075 NE 30th St. (2) Ruskin FL 57,690 1/31/2029 42 % 3115 N Houston School Rd. Lancaster TX 124,450 N/A — % Non-Stabilized total 182,140 21.9 % Warehouse/Distribution total 54,308,679 99.8 % 32 Table of Contents (1) Includes industrial development leased land.
Removed
Allen TX 20% 292,700 3/14/2025 100 % 4001 International Pkwy. Carrollton TX 20% 138,443 12/31/2025 100 % 8900 Freeport Pkwy. Irving TX 20% 261,305 3/31/2023 5/31/2033 100 % 2203 North Westgreen Blvd. Katy TX 25% 274,000 8/31/2036 100 % Office/Other total 1,667,948 100.0 % Special purpose industrial properties: 318 Pappy Dunn Blvd.
Added
(2) During 2023, a portion of a 138,673 square foot warehouse/distribution facility reached substantial completion and was placed into service upon the tenant taking occupancy. The remaining 80,983 square feet of the facility remains in real estate under construction until the property is stabilized.
Removed
Comfort (80%) 1 Indianapolis, IN 1,053,360 65,500 59,379 49,848 1Q 2023 — % South Shore (100%) 2 Central Florida 270,885 40,500 25,782 13,553 2Q 2023 — % Cotton 303 (93%) (4) 2 Phoenix, AZ 880,678 84,200 64,682 56,570 1Q 2023 - 2Q 2023 45 % Smith Farms (90%) (5) 2 Greenville-Spartanburg, SC 1,396,884 101,550 77,173 67,780 1Q 2023 - 2Q 2023 — % $ 447,700 $ 361,924 $ 309,594 Land Held for Industrial Development Project (% owned) Market Approx.
Added
North Berwick ME 20% 993,685 4/30/2029 100 % 904 Industrial Rd. Marshall MI 20% 246,508 9/30/2028 100 % 43955 Plymouth Oaks Blvd. Plymouth MI 20% 311,612 10/31/2030 100 % 26700 Bunert Rd. Warren MI 20% 260,243 10/31/2032 100 % 2880 Kenny Biggs Rd.
Removed
Developable Acres GAAP Investment Balance as of 12/31/2022 ($000) LXP Amount Funded as of 12/31/2022 ($000) (2) Consolidated: Reems & Olive (95.5%) (6) Phoenix, AZ 320 $ 77,379 $ 73,957 Mt. Comfort Phase II (80%) Indianapolis, IN 116 5,301 4,213 ATL Fairburn (100%) Atlanta, GA 14 1,732 1,736 450 $ 84,412 $ 79,906 Project (% owned) Market Approx.
Added
Comfort (80%) 1 Indianapolis, IN 1,053,360 66,400 64,489 58,736 1Q 2023 — % — Smith Farms (90%) 1 Greenville-Spartanburg, SC 1,091,888 76,500 72,411 69,244 2Q 2023 — % — South Shore (100%) (5) 2 Central Florida 213,195 33,500 29,739 29,771 2Q 2023 - 3Q 2023 — % — ETNA Building D (100%) (6) 1 Columbus, OH 250,020 30,200 21,816 15,928 1Q 2024 — % — 6 3,693,743 $ 291,800 $ 268,639 $ 244,284 7 4,182,143 $ 347,100 $ 319,355 $ 288,807 Land Held for Industrial Development Project (% owned) Market Approximate Acres GAAP Investment Balance as of 12/31/2023 ($000) LXP Amount Funded as of 12/31/2023 ($000) (2) Consolidated: Reems & Olive (95.5%) (7) Phoenix, AZ 320 $ 73,683 $ 74,308 Mt.
Removed
(2) Excludes noncontrolling interests' share. (3) Base building achieved substantial completion. Property not in service as of December 31, 2022. (4) Pre-leased 392,278 square foot facility with a 10-year lease commencing upon substantial completion of the facility and notice to the tenant.
Added
(2) Excludes leasing costs. (3) Excludes noncontrolling interests' share. (4) Subsequent to December 31, 2023, the property was placed in service. (5) During the fourth quarter of 2023, a 57,690 square foot portion of the project, representing 23% of the total project was occupied by the tenant and placed in service.
Removed
(5) In December 2022, substantially completed and placed into service a 797,936 square foot facility subject to a 12-year lease that commenced upon substantial completion of the facility. Remaining two projects ongoing.
Added
(6) During the fourth quarter of 2023, a wholly-owned subsidiary of LXP purchased approximately 14 acres of land and the partially completed leasehold improvements from ETNA Park 70. (7) During the fourth quarter of 2023, a perpetual utility easement was granted in exchange for $6.2 million. 36 Table of Contents Tenant Diversification We believe our tenant mix is well diversified.
Removed
(6) Ground leased approximately 100 acres of the 420 acre development land parcel located in the Phoenix, Arizona market, subject to a 20-year ground lease (with three, 10-year extension options). The initial annual rental payments are $5.2 million and escalate by 4% annually. 36 Table of Contents Tenant Diversification We believe our tenant mix is well diversified.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+1 added−0 removed3 unchanged
Biggest changeWe did not issue any common shares during 2022 on an unregistered basis. Share Repurchase Program. There were 400,000 common share repurchases at an average price of $9.10 per common share during the quarter ended December 31, 2022 under our share repurchase authorization most recently announced on August 4, 2022, which has no expiration date.
Biggest changeWe did not issue any common shares during 2023 on an unregistered basis. Share Repurchase Program. There were no common share repurchases during the quarter and year ended December 31, 2023 under our share repurchase authorization most recently announced on August 4, 2022, which has no expiration date.
The following table sets forth certain information, as of December 31, 2022, with respect to our 2022 Equity-Based Award Plan under which our equity securities are authorized for issuance as compensation.
The following table sets forth certain information, as of December 31, 2023, with respect to our 2022 Equity-Based Award Plan under which our equity securities are authorized for issuance as compensation.
Item 5. Market For Registrant's Common Equity, Related Stockholder Matters And Issuer Purchases of Equity Securities Market Information. Our common shares are listed for trading on the NYSE under the symbol “LXP”. Holders. As of February 14, 2023, we had 2,197 common shareholders of record. Dividends. Since our predecessor's formation in 1993, we have made quarterly distributions without interruption.
Item 5. Market For Registrant's Common Equity, Related Stockholder Matters And Issuer Purchases of Equity Securities Market Information. Our common shares are listed for trading on the NYSE under the symbol “LXP”. Holders. As of February 13, 2024, we had 2,229 common shareholders of record. Dividends. Since our predecessor's formation in 1993, we have made quarterly distributions without interruption.
Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Plan Category (a) (b) (c) Equity compensation plans approved by security holders — $ — 4,094,587 Equity compensation plans not approved by security holders — — — Total — $ — 4,094,587 Recent Sales of Unregistered Securities.
Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Plan Category (a) (b) (c) Equity compensation plans approved by security holders — $ — $ 2,994,544 Equity compensation plans not approved by security holders — — — Total — $ — $ 2,994,544 Recent Sales of Unregistered Securities.
There were 6,874,241 shares that may yet be repurchased under our share repurchase authorization as of December 31, 2022. 41 Table of Contents Item 6. [Reserved] 42 Table of Contents
There were 6,874,241 shares that may yet be repurchased under our share repurchase authorization as of December 31, 2023. Insider Trading.
Added
During the year ended December 31, 2023, no trustee or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. 40 Table of Contents Item 6. [Reserved] 41 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

81 edited+30 added−31 removed61 unchanged
Biggest changeCash provided by financing activities in 2021 was primarily related to the issuance of the 2031 Senior Notes, revolving credit facility borrowings, mortgage proceeds, issuances of common shares and cash contributions from noncontrolling interests, offset by the redemption of the 2023 Senior Notes, dividend and debt service payments. Public and Private Equity and Debt Markets .
Biggest changeCash provided by financing activities in 2023 was primarily related to the receipt of proceeds from the issuance of the 2028 Senior Notes and borrowings on the credit facility, offset by the repurchase of common shares to settle tax obligations, the purchase of a noncontrolling interest and dividend and debt service payments, Cash used in financing activities in 2022 was primarily related to the repurchase of common shares, the purchase of a noncontrolling interest and dividend and debt service payments, offset by common share issuances and contributions from noncontrolling interests. 46 Table of Contents Public and Private Equity and Debt Markets We access the public and private equity and debt markets on an opportunistic basis when we (1) believe conditions are favorable and (2) have a compelling use of proceeds.
As a result of the competition for income producing single-tenant warehouse/distribution assets, in 2017, we began selectively investing in development projects. We believe we can achieve higher yields from development projects than we can by purchasing existing leased properties. Our development activities have been focused on speculative development and purchasing newly-developed properties with vacancy.
As a result of the competition for income producing single-tenant warehouse/distribution assets, in 2017, we began selectively investing in development projects. We believe we can generally achieve higher yields from development projects than we can by purchasing existing leased properties. Our development activities have been focused on speculative development and purchasing newly-developed properties with vacancy.
A summary of our significant accounting policies which are important to the portrayal of our financial condition and results of operations is set forth in Note 2 to the Consolidated Financial Statements, which are included in “Financial Statements and Supplementary Data” in Part II, Item 8 of this Annual Report. Acquisition of Real Estate .
A summary of our significant accounting policies which are important to the portrayal of our financial condition and results of operations is set forth in Note 2 to the Consolidated Financial Statements, which are included in “Financial Statements and Supplementary Data” in Part II, Item 8 of this Annual Report. Acquisition and Development of Real Estate .
We have entered into co-investment programs and joint ventures with institutional investors to mitigate our risk in certain assets and increase our return on equity to the extent we earn management or other fees.
Institutional Fund Management: We have entered into co-investment programs and joint ventures with institutional investors to mitigate our risk in certain assets and increase our return on equity to the extent we earn management or other fees.
The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on mortgage debt and payment of operating and general and administrative costs.
The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on debt and payment of operating and general and administrative costs.
Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of properties in which we have an interest. Results of Operations Year ended December 31, 2022 compared with December 31, 2021.
Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of properties in which we have an interest. Results of Operations Year ended December 31, 2023 compared with December 31, 2022.
While our methodology for purchase price allocation did not change during the year ended December 31, 2022, the real estate market is fluid and our assumptions are based on information currently available in the market at the time of acquisition.
While our methodology for purchase price allocation did not change during the year ended December 31, 2023, the real estate market is fluid and our assumptions are based on information currently available in the market at the time of acquisition.
Introduction The following is a discussion and analysis of the consolidated financial condition and results of operations of LXP Industrial Trust for the years ended December 31, 2022 and 2021, and significant factors that could affect its prospective financial condition and results of operations.
Introduction The following is a discussion and analysis of the consolidated financial condition and results of operations of LXP Industrial Trust for the years ended December 31, 2023 and 2022, and significant factors that could affect its prospective financial condition and results of operations.
We regularly evaluate the extent and impact of any credit deterioration that could affect performance and the value of our investment in a sales-type leases, as well as the financial and operating capability of the tenant.
We regularly evaluate the extent and impact of any credit deterioration that could affect performance and the value of our investment in a sales-type lease, as well as the financial and operating capability of the tenant.
Impairment charges During 2022 and 2021, we incurred impairment charges, of $3.0 million and $5.5 million, respectively, on certain of our assets due to each asset's carrying value being below its estimated fair value. Most of the impairment charges in 2022 and 2021 were incurred on non-core assets due to anticipated shortened holding periods.
Impairment charges During 2023 and 2022, we incurred impairment charges, of $16.5 million and $3.0 million, respectively, on certain of our assets due to each asset's carrying value being below its estimated fair value. Most of the impairment charges in 2023 and 2022 were incurred on non-core assets due to anticipated shortened holding periods.
Our principal sources of liquidity have been (1) undistributed cash flows generated from our investments, (2) proceeds from the sales of our investments, (3) the public and private equity and debt markets, (4) corporate level borrowings, (5) property specific debt, and (6) commitments from co-investment partners.
Liquidity and Capital Resources Overview : Our principal sources of liquidity have been (1) undistributed cash flows generated from our investments, (2) proceeds from the sales of our investments, (3) the public and private equity and debt markets, (4) corporate level borrowings, (5) property specific debt, and (6) commitments from co-investment partners.
We estimate undiscounted cash flows and fair value using observable and unobservable data such as operating income, hold periods, estimated 45 Table of Contents capitalization and discount rates, or relevant market multiples, leasing prospects and local market information and whether certain impairments are other-than-temporary. Allowance for Credit Losses.
We estimate undiscounted cash flows and fair value using observable and unobservable data such as operating income, hold periods, estimated capitalization and discount rates, or relevant market multiples, leasing prospects and local market information and whether certain impairments are other-than-temporary. Allowance for Credit Losses.
In August 2022, our Board of Trustees authorized the repurchase of up to an additional 10.0 million common shares under our share repurchase program, which does not have an expiration date. During 2022, 12.1 million common shares were repurchased and retired for an average price of $10.78 per share. During 2021, there were no share repurchases.
In August 2022, our Board of Trustees authorized the repurchase of up to an additional 10.0 million common shares under our share repurchase program, which does not have an expiration date. During 2022, 12.1 million common shares were repurchased and retired for an average price of $10.78 per share. No shares were repurchased in 2023.
In addition, we may procure credit tenant lease financing in certain situations where we are able to monetize all or a significant portion of the rental revenues of a property at an attractive rate. Institutional Fund Management .
In addition, we may procure credit tenant lease financing in certain situations where we are able to monetize all or a significant portion of the rental revenues of a property at an attractive rate.
The administrator of the plan, Computershare Trust Company, N.A., purchases common shares for the accounts of the participants under the plan, at our discretion, either directly from us, on the open market or through a combination of those two options. No shares were purchased from us under the plan in 2022 and 2021. 47 Table of Contents Share Repurchase Program.
The administrator of the plan, Computershare Trust Company, N.A., purchases common shares for the accounts of the participants under the plan, at our discretion, either directly from us, on the open market or through a combination of those two options. No shares were purchased from us under the plan in 2023 and 2022. Share Repurchase Program.
We paid approximately $142.5 million in cash dividends to our common and preferred shareholders in 2022. Although our property owner subsidiaries receive the majority of our base rental payments on a monthly basis, we intend to continue paying dividends quarterly. Amounts accumulated in advance of each quarterly distribution are invested by us in short-term money market or other suitable instruments.
We paid approximately $151.9 million in cash dividends to our common and preferred shareholders in 2023. Although our property owner subsidiaries receive the majority of our base rental payments on a monthly basis, we intend to continue paying dividends quarterly. Amounts accumulated in advance of each quarterly distribution are invested by us in short-term money market or other suitable instruments.
The analysis of the results of operations for the year ended December 31, 2021 compared with December 31, 2020 is included in our 2021 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, on February 24, 2022. 52 Table of Contents Same-Store Results Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned and included in our portfolio for two comparable reporting periods.
The analysis of the results of operations for the year ended December 31, 2022 compared with December 31, 2021 is included in our 2022 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, on February 16, 2023. 51 Table of Contents Same-Store Results Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for two comparable reporting periods.
Our ability to incur additional debt to fund acquisitions is dependent upon our existing leverage, the value of the assets we are attempting to leverage, our revenues and general economic and credit market conditions, which may be outside of management's control or influence. Cash Flows .
Our ability to incur additional debt to fund acquisitions and the cost of any such debt is dependent upon our existing leverage, the value of the assets we are attempting to leverage, our revenues and general economic and credit market conditions, which may be outside of management's control or influence.
However, there are many factors beyond management's control that could offset these items including, without limitation, changes in economic conditions such as the recent economic uncertainty primarily caused by the COVID-19 pandemic, increased interest rates and tenant monetary defaults and the other risks described in this Annual Report.
However, there are many factors beyond management's control that could offset these items including, without limitation, changes in economic conditions such as the recent economic uncertainty increased interest rates and tenant monetary defaults and the other risks described in this Annual Report.
We also evaluate the tenant’s competency in managing and operating the secured property and consider the overall economic environment, real estate sector and geographic sub-market in which the secured property is located.
We also evaluate the tenant’s competency in managing and operating the secured property and consider the overall economic environment, real estate sector 45 Table of Contents and geographic sub-market in which the secured property is located.
While we believe the industrial market will continue to grow, there continues to be competition for the acquisition of industrial properties, specifically warehouse/distribution properties. In addition, recessionary fears may cause tenants to reevaluate expansion and growth plans. We continue to prioritize development and acquiring vacancy over acquisitions of leased properties due to the increased yield that development generally provides.
While we believe the industrial market will continue to grow, there continues to be competition for the acquisition of industrial properties, specifically warehouse/distribution properties. In addition, recessionary fears may cause tenants to reevaluate expansion and growth plans. We continue to prioritize development, specifically build-to-suit projects, over acquisitions of leased properties due to the higher yield that development generally provides.
With respect to mortgages encumbering properties where the expected lease rental revenues are sufficient to provide an estimated property value in excess of the mortgage balance, we believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand ($54.4 million at December 31, 2022), property sale proceeds or borrowing capacity on our primary credit facility ($600.0 million as of December 31, 2022, subject to covenant compliance).
With respect to mortgages encumbering properties where the expected lease rental revenues are sufficient to provide an estimated property value in excess of the mortgage balance, we believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand and short-term investments ($199.2 million and $130.1 million, respectively, at December 31, 2023), property sale proceeds or borrowing capacity on our primary credit facility ($600.0 million as of December 31, 2023, subject to covenant compliance).
In addition, we expect to recycle out of certain warehouse and distribution facilities located outside of our target markets and use the proceeds to satisfy indebtedness and invest in our target markets.
In addition, we expect to recycle out of certain warehouse and distribution facilities located outside of our target markets over time and use the proceeds to reduce indebtedness and invest in our target markets.
If we are unable to satisfy our contractual obligations and other operating costs with our cash flow from operations, we intend to use borrowings and proceeds from issuances of equity or debt securities.
We expect to pay our non-maturity debt service obligations from cash flow from operations. If we are unable to satisfy our contractual obligations and other operating costs with our cash flow from operations, we intend to use borrowings and proceeds from issuances of equity or debt securities.
The impairment is the difference between estimated fair value of the asset and the carrying amount. We record impairments of our real estate assets classified as held for sale at the lower of the carrying amount or estimated fair value using the estimated or contracted sales price less costs to sell.
We record impairments of our real estate assets classified as held for sale at the lower of the carrying amount or estimated fair value using the estimated or contracted sales price less costs to sell.
However, we believe that, over the long term, our focus on industrial assets will result in significant savings compared to investing in office assets due to the lower operating and retenanting costs of industrial assets compared to office assets. 50 Table of Contents Property Expansions .
However, we believe that, over the long term, our focus on industrial assets will result in significant savings compared to investing in office assets due to the lower operating and re-tenanting costs of industrial assets compared to office assets. Property Expansions .
The following Senior Notes were outstanding as of December 31, 2022: Issue Date Face Amount (millions) Interest Rate Maturity Date Issue Price August 2021 $ 400.0 2.375 % October 2031 99.758 % August 2020 400.0 2.70 % September 2030 99.233 % May 2014 198.9 4.40 % June 2024 99.883 % $ 998.9 The Senior Notes are unsecured and pay interest semi-annually in arrears.
The following Senior Notes were outstanding as of December 31, 2023: Issue Date Face Amount (millions) Interest Rate Maturity Date Issue Price November 2023 $ 300.0 6.750 % November 2028 99.423 % August 2021 400.0 2.375 % October 2031 99.758 % August 2020 400.0 2.70 % September 2030 99.233 % May 2014 198.9 4.40 % June 2024 99.883 % $ 1,298.9 The Senior Notes are unsecured and pay interest semi-annually in arrears.
The collection and timing of tenant rents are closely monitored by management as part of our cash management program. Net cash used in investing activities totaled $236.9 million in 2022 and $337.8 million in 2021.
The collection and timing of tenant rents are closely monitored by management as part of our cash management program. Net cash used in investing activities totaled $183.5 million in 2023 and $236.9 million in 2022.
We have guaranteed such obligations for certain of our non-consolidated entities with respect to $552.8 million of such non-recourse debt.
We have guaranteed such obligations for certain of our non-consolidated entities with respect to $458.6 million of such non-recourse debt.
Other properties We continue to recycle our other real estate investments into warehouse/distribution assets. As of December 31, 2022, we owned seven consolidated other real estate assets consisting of office properties, a land ground lease and a heavy manufacturing facility.
Other properties We continue to recycle our other real estate investments into warehouse/distribution assets. As of December 31, 2023, we owned three consolidated other real estate assets consisting of two office properties and a land ground lease.
We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with applicable REIT requirements in both the short-term and long-term. However, our cash flow from operations may be negatively affected in the near term if we experience tenant defaults.
Cash Flows: We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with applicable REIT requirements in both the short-term and long-term.
The increase in property operating expense of $7.6 million was primarily due to an increase in operating expense responsibilities at certain properties. The increase in general and administrative expense of $3.3 million was primarily due to an increase of $1.4 million in costs incurred related to the Board of Trustees' strategic alternatives review and costs related to shareholder activism.
The increase in property operating expense of $3.5 million was primarily due to an increase in operating expense responsibilities at certain properties. 50 Table of Contents The decrease of $2.4 million in general and administrative expense was primarily related to a decrease of $2.6 million in costs incurred related to the Board of Trustees' strategic alternatives review and consulting costs related to shareholder activism in 2022.
Our industrial investment underwriting focuses less on tenant credit than our historical office investment underwriting as we focus on real estate characteristics such as location and related demographic and local economic trends.
Our industrial investment underwriting focuses more on real estate characteristics such as location and related demographic and local economic trends than it does on tenant credit.
We believe capital recycling (1) provides cost effective and timely capital to deleverage and to support for our investment activities and (2) allows us to maintain line capacity and cash in advance of our development commitments. Liquidity Needs .
We believe capital recycling (1) provides cost effective and timely capital to deleverage and to support for our investment activities and (2) allows us to maintain line capacity and cash in advance of our development commitments. Liquidity Needs: Our principal liquidity needs are debt maturities, interest payment obligations, the payment of dividends to our shareholders and funding our development projects.
As a result, the obligations of our property owner subsidiaries on new leases and newly renewed or extended leases may increase to include, among other items, some form of responsibility for operating expenses and/or capital repairs and replacements. Tenant Credit.
Developers are similarly motivated when signing leases with tenants due to the significant competition in the industrial space. As a result, the obligations of our property owner subsidiaries on new leases and newly renewed or extended leases may increase to include, among other items, some form of responsibility for operating expenses and/or capital repairs and replacements. Tenant Credit.
We recognize operating lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. We commence revenue recognition when possession or control of the space is turned over to the tenant.
We recognize operating lease revenue on a straight-line basis over the term of the lease when it is probable that the lease revenue is collectible over the remaining term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property.
As of December 31, 2022, we have a limited number of consolidated properties subject to mortgages. Our property owner subsidiaries do not have mortgage maturities with balloon payments due until 2031.
As of December 31, 2023, there were $129.1 million of these securities outstanding. Property Specific Debt . As of December 31, 2023, we have a limited number of consolidated properties subject to mortgages. Our property owner subsidiaries do not have mortgage maturities with balloon payments due until 2031.
Our secured debt decreased to approximately $73.2 million at December 31, 2022 compared to $84.4 million at December 31, 2021.
Our secured debt decreased to approximately $60.9 million at December 31, 2023 compared to $73.2 million at December 31, 2022.
We believe the likelihood of making any payments under such guaranties is remote and we generally have an agreement from each partner to reimburse us for its proportionate share of any liability related to a guarantee trigger unless such trigger is caused solely by us. Capital Recycling.
We believe the likelihood of making any payments under such guaranties is remote and we generally have an agreement from each partner to reimburse us for its proportionate share of any liability related to a guarantee trigger unless such trigger is caused solely by us. 48 Table of Contents Capital Recycling: Part of our strategy to effectively manage our balance sheet involves pursuing and executing well on property dispositions and recycling of capital.
See Part I, Item 1A “Risk Factors”, of this Annual Report. 44 Table of Contents Critical Accounting Estimates In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
Critical Accounting Estimates In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
A property owner subsidiary's ability to accomplish such goals will be affected by numerous economic factors affecting the real estate industry, including the risks described under “Risk Factors” in Part I, Item 1A of this Annual Report.
A property owner subsidiary's ability to accomplish such goals will be affected by numerous economic factors affecting the real estate industry, including the risks described under “Risk Factors” in Part I, Item 1A of this Annual Report. We expect to be able to satisfy the maturity of our 4.40% Senior Notes from cash and cash equivalent and short-term investments.
Cash provided by investing activities primarily related to net proceeds received from the disposition of real estate and distributions from non-consolidated entities. Net cash (used in) provided by financing activities totaled ($93.9) million in 2022 and $129.1 million in 2021.
Cash provided by investing activities primarily related to net proceeds received from the disposition of real estate and distributions from non-consolidated entities and the receipt of principal payments on a note receivable and changes in real estate deposits, net. Net cash provided by (used in) financing activities totaled $119.0 million in 2023 and ($93.9) million in 2022.
As we near the completion of the capital recycling of our non-industrial assets, we have recycled, and we expect to continue our recycling efforts with respect to our older industrial assets and/or those outside our target markets.
The proceeds of our capital recycling efforts were primarily used to (1) fund the development pipeline and (2) make investments in real property. As we near the completion of the capital recycling of our non-industrial assets, we have recycled, and we expect to continue our recycling efforts with respect to our older industrial assets and/or those outside our target markets.
One of the main drivers of growth in the industrial real estate market has been e-commerce. We believe that growth is also being driven by companies increasing their inventories in the United States to keep up with demand and to protect against future disruptions in the supply chain.
The main drivers of growth in the industrial real estate market have been e-commerce and near shoring, where companies increase their inventories in the United States to keep up with demand and to protect against future disruptions in the supply chain.
As of December 31, 2022 and 2021, our historical same-store square footage leased was 99.8% and 99.7%, respectively. 53 Table of Contents Below is a reconciliation of net income to same-store NOI for periods presented: Year ended December 31, 2022 2021 Net income $ 116,243 $ 385,091 Interest and amortization expense 45,417 46,708 Provision for income taxes 1,102 1,293 Depreciation and amortization 180,567 176,714 General and administrative 38,714 35,458 Transaction costs 4,177 432 Non-operating/advisory fee income (6,550) (4,402) Gains on sales of properties (59,094) (367,274) Impairment charges 3,037 5,541 Selling profit from sales-type leases (47,059) — Debt satisfaction losses, net 119 13,894 Equity in (earnings) losses of non-consolidated entities (16,006) 190 Lease termination income, net (238) (14,972) Straight-line adjustments (11,412) (12,324) Lease incentives 518 780 Amortization of above/below market leases (1,865) (1,551) Sales-type lease adjustments (249) — NOI 247,421 265,578 Less NOI: Acquisitions and dispositions (44,162) (71,618) Same-Store NOI $ 203,259 $ 193,960 Funds From Operations We believe 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 REIT.
As of December 31, 2023 and 2022, our historical same-store square footage leased was 100% and 99.8%, respectively. 52 Table of Contents Below is a reconciliation of net income to same-store NOI for periods presented: Years ended December 31, 2023 2022 Net income $ 35,923 $ 116,243 Interest and amortization expense 46,389 45,417 Provision for income taxes 703 1,102 Depreciation and amortization 183,524 180,567 General and administrative 36,334 38,714 Transaction costs 4 4,177 Non-operating/advisory fee income (7,319) (6,550) Gains on sales of properties (33,010) (59,094) Impairment charges 16,490 3,037 Selling profit from sales-type leases — (47,059) Debt satisfaction losses, net 132 119 Equity in earnings losses of non-consolidated entities (1,366) (16,006) Lease termination income, net — (238) Straight-line adjustments (9,688) (11,412) Lease incentives 439 518 Amortization of above/below market leases (1,796) (1,865) Sales-type lease adjustments (2,231) (249) NOI 264,528 247,421 Less NOI: Acquisitions, development and dispositions (39,241) (30,858) Same-Store NOI $ 225,287 $ 216,563 Funds From Operations We believe 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 REIT.
Cash used in investing activities related primarily to acquisitions of real estate, investments in real estate under construction, land held for development, capital expenditures, lease costs, investments in non-consolidated entities, investment in a note receivable and changes in real estate deposits, net.
Cash used in investing activities related primarily to acquisitions of real estate, investments in real estate under construction, capital expenditures, lease costs, investments in non-consolidated entities.
We are unable to estimate the timing of any required fundings for potential development projects on these parcels. Capital Resources General . Due to the net-lease structure of a majority of our investments, our property owner subsidiaries historically have not incurred significant expenditures in the ordinary course of business to maintain the properties in which we have an interest.
Due to the net-lease structure of a majority of our investments, our property owner subsidiaries historically have not incurred significant expenditures in the ordinary course of business to maintain the properties in which we have an interest.
These measures should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity. 54 Table of Contents The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for 2022 and 2021 (dollars in thousands, except share and per share amounts): Year Ended December31, 2022 2021 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders $ 107,307 $ 375,848 Adjustments: Depreciation and amortization 177,725 173,833 Impairment charges - real estate, including our share of non-consolidated entities 8,137 5,541 Noncontrolling interests - OP units 156 1,672 Amortization of leasing commissions 2,842 2,881 Joint venture and noncontrolling interest adjustment 11,112 8,370 Gains on sales of properties, including our share of non-consolidated entities (83,562) (367,274) FFO available to common shareholders and unitholders - basic 223,717 200,871 Preferred dividends 6,290 6,290 Amount allocated to participating securities 186 510 FFO available to all equityholders and unitholders - diluted 230,193 207,671 Selling profit from sales-type leases (1) (47,059) — Allowance for credit losses 93 — Transaction costs (2) 4,177 432 Debt satisfaction losses, net, including our share of non-consolidated entities 1,615 13,894 Other non-recurring costs (3) 2,573 1,199 Noncontrolling interest adjustments 1,469 — Adjusted Company FFO available to all equityholders and unitholders - diluted $ 193,061 $ 223,196 Per Common Share and Unit Amounts Basic: FFO $ 0.80 $ 0.72 Diluted: FFO $ 0.80 $ 0.72 Adjusted Company FFO $ 0.67 $ 0.78 Weighted-Average Common Shares: Basic: Weighted-average common shares outstanding - basic EPS 279,887,760 277,640,835 Operating partnership units (4) 853,259 1,918,845 Weighted-average common shares outstanding - basic FFO 280,741,019 279,559,680 Diluted: Weighted-average common shares outstanding - diluted EPS 282,473,458 287,369,742 Unvested share-based payment awards 17,381 44,261 Preferred shares - Series C 4,710,570 — Weighted-average common shares outstanding - diluted FFO 287,201,409 287,414,003 (1) Aggregate gains recognized upon entering into a sales-type lease and exercises of tenant's purchase options in leases.
Also, because not all companies calculate FFO, Adjusted Company FFO and NOI the same way, comparisons with other companies’ measures with similar titles may not be meaningful. 54 Table of Contents The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for 2023 and 2022 (dollars in thousands, except share and per share amounts): Years Ended December31, 2023 2022 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders $ 23,863 $ 107,307 Adjustments: Depreciation and amortization related to real estate 179,554 177,725 Impairment charges - real estate, including our share of non-consolidated entities 17,859 8,137 Noncontrolling interests - OP units (58) 156 Amortization of leasing commissions 3,970 2,842 Joint venture and noncontrolling interest adjustment 13,168 11,112 Gains on sales of properties, including our share of non-consolidated entities (38,796) (83,562) FFO available to common shareholders and unitholders - basic 199,560 223,717 Preferred dividends 6,290 6,290 Amount allocated to participating securities 230 186 FFO available to all equityholders and unitholders - diluted 206,080 230,193 Selling profit from sales-type leases (1) — (47,059) Allowance for credit losses (32) 93 Transaction costs (2) 4 4,177 Debt satisfaction losses, net, including our share of non-consolidated entities 138 1,615 Other non-recurring costs (3) — 2,573 Noncontrolling interest adjustments 1 1,469 Adjusted Company FFO available to all equityholders and unitholders - diluted $ 206,191 $ 193,061 Per Common Share and Unit Amounts Basic: FFO $ 0.69 $ 0.80 Diluted: FFO $ 0.70 $ 0.80 Adjusted Company FFO $ 0.70 $ 0.67 Weighted-Average Common Shares: Basic: Weighted-average common shares outstanding - basic EPS 290,245,877 279,887,760 Operating partnership units (4) 820,386 853,259 Weighted-average common shares outstanding - basic FFO 291,066,263 280,741,019 Diluted: Weighted-average common shares outstanding - diluted EPS 291,193,514 282,473,458 Unvested share-based payment awards — 17,381 Preferred shares - Series C 4,710,570 4,710,570 Weighted-average common shares outstanding - diluted FFO 295,904,084 287,201,409 (1) Aggregate gains recognized upon entering into a sales-type lease and exercises of tenant's purchase options in leases.
During 2022, we issued 3.6 million common shares previously sold on a forward basis in the first quarter of 2021 on the maturity date of the contracts and received $38.5 million of net proceeds.
As of December 31, 2023, common shares with an aggregate value of $295.0 million remain available for issuance under the ATM program. During 2022, we issued 3.6 million common shares previously sold on a forward basis under our ATM program in the first quarter of 2021 on the maturity date of the contracts and received $38.5 million of net proceeds.
We cannot estimate if we will incur, or the amount of, future impairment charges on our assets.
We cannot estimate if we will incur, or the amount of, future impairment charges on our assets. See Part I, Item 1A “Risk Factors”, of this Annual Report.
We believe our ratio of dividends to Adjusted Company Funds From Operations is conservative, and allows us to retain cash flow for internal growth.
We believe our dividend policy is conservative, and allows us to retain cash flow for internal growth.
A summary of the maturity dates and interest rates under our unsecured credit agreement, as of December 31, 2022, are as follows: Maturity Date Interest Rate $600.0 Million Revolving Credit Facility (1) 07/2026 SOFR + 0.85% $300.0 Million Term Loan (2) 01/2025 Term SOFR + 1.00% (1) Maturity date of the revolving credit facility can be extended to July 2027 at our option.
We may redeem the Senior Notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the Senior Notes being redeemed plus a make-whole premium. 47 Table of Contents A summary of the maturity dates and interest rates under our unsecured credit agreement, as of December 31, 2023, are as follows: Maturity Date Interest Rate $600.0 Million Revolving Credit Facility (1) 07/2026 SOFR + 0.85% $300.0 Million Term Loan (2) 01/2027 Term SOFR + 1.00% (1) Maturity date of the revolving credit facility can be extended to July 2027, subject to certain conditions.
As we grow our development pipeline, we expect that development activities will become a greater part of our liquidity needs. 49 Table of Contents As of December 31, 2022, we had approximately $1.5 billion of indebtedness, consisting of mortgages and notes payable outstanding, a term loan, 2.375%, 2.70%, and 4.40% Senior Notes and Trust Preferred Securities, with a weighted-average interest rate of approximately 3.2%.
As of December 31, 2023, we had approximately $1.8 billion of indebtedness, consisting of mortgages and notes payable outstanding, a term loan, 6.75%, 2.375%, 2.70%, and 4.40% Senior Notes and Trust Preferred Securities, with a weighted-average interest rate of approximately 3.9%.
The interest rate ranges from SOFR plus 0.725% to 1.40%. At December 31, 2022, we had no borrowings outstanding and availability of $600.0 million, subject to covenant compliance. (2) The Term SOFR portion of the interest rate was swapped to obtain a current fixed rate of 2.722% per annum.
The interest rate ranges from SOFR (plus a 0.10% index adjustment) plus 0.725% to 1.40%. At December 31, 2023, we had no borrowings outstanding and availability of $600.0 million, subject to covenant compliance. (2) In November 2023, we amended the agreement governing our $300 million term loan.
In addition, we anticipate that cash on hand, borrowings under our unsecured revolving credit facility, capital recycling proceeds, issuances of equity, mortgage proceeds and other debt, as well as other available alternatives, will provide the necessary capital required by our business. 46 Table of Contents Cash flows from operations as reported in the consolidated statements of cash flows totaled $194.3 million for 2022 and $220.3 million for 2021.
However, our cash flow from operations may be negatively affected in the near term if we experience tenant defaults. In addition, we anticipate that cash on hand, borrowings under our unsecured revolving credit facility, capital recycling proceeds, issuances of equity, mortgage proceeds and other debt, as well as other available alternatives, will provide the necessary capital required by our business.
Significant increases or decreases in these key estimates, particularly with regards to cash flow projections and discount and capitalization rates, would result in a significantly lower or higher fair value measurement of the real estate assets being acquired. Revenue Recognition .
Significant increases or decreases in these key estimates, particularly with regards to cash flow projections and discount and capitalization rates, would result in a significantly lower or higher fair value measurement of the real estate assets being acquired. 44 Table of Contents For properties under development, costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property.
Contractual Obligations As of December 31, 2022, we had six ongoing consolidated development projects and expect to incur approximately $107.0 million of costs in 2023, excluding noncontrolling interests' share, to substantially complete the construction of such projects. As of December 31, 2022, we had three consolidated and two non-consolidated subsidiaries that owned land parcels held for industrial development.
As of December 31, 2023, we expect to incur approximately $53.2 million of costs, excluding noncontrolling interests' share and potential developer fees or partner buyouts, to substantially fund our consolidated development project commitments. As of December 31, 2023, we had three consolidated and two non-consolidated subsidiaries that owned land parcels held for industrial development.
The decrease in net income attributable to common shareholders of $268.5 million was primarily due to the items discussed below. The decrease in total gross revenues of $22.8 million was primarily a result of a decrease of $15.1 million of termination income.
The decrease in net income attributable to common shareholders of $83.4 million was primarily due to the items discussed below.
During 2021, we amended the terms of our ATM offering program, under which we may, from time to time, sell up to $350.0 million common shares over the term of the program. As of December 31, 2022, common shares with an aggregate value of $295.0 million remain available for issuance under the ATM program. Underwritten equity offerings.
Equity: At-The-Market Offering Program. We maintain an At-The-Market offering program, or ATM program, under which we can issue common shares, including through forward contracts. During 2021, we amended the terms of our ATM offering program, under which we may, from time to time, sell up to $350.0 million common shares over the term of the program.
As of December 31, 2022, we were in compliance with the financial covenants contained in our corporate level debt agreements. During 2007, we issued $200.0 million in Trust Preferred Securities, which bore interest at a fixed rate of 6.804% through April 2017 and, thereafter, bears interest at a variable rate of three month LIBOR plus 170 basis points.
During 2007, we issued $200.0 million in Trust Preferred Securities, which bore interest at a fixed rate of 6.804% through April 2017 and, thereafter, bears interest at a variable rate of three-month SOFR plus a 26 basis point adjustment plus 170 basis points. These securities are (1) classified as debt, (2) due in 2037 and (3) currently redeemable by us.
The initial rent is $5.2 million per annum and escalate by 4% annually. As of December 31, 2022, we had two single-tenant leases in our industrial portfolio where the lease term is scheduled to expire in 2023, covering approximately 0.9 million square feet.
We expect rents in our target markets to remain above existing rents due to strong demand and low vacancy. As of December 31, 2023, we had 11 single-tenant leases in our industrial portfolio where the lease term is scheduled to expire in 2024, covering approximately 2.9 million square feet.
The following presents our consolidated same-store NOI, for the years ended December 31, 2022 and 2021 ($000): Year Ended December 31, 2022 2021 Total cash base rent $ 207,087 $ 197,684 Tenant reimbursements 35,221 33,186 Property operating expenses (39,049) (36,910) Same-store NOI $ 203,259 $ 193,960 Our reported same-store NOI increased from 2021 to 2022 by 4.8% primarily due to an increase in occupancy and cash base rents.
The following presents our consolidated same-store NOI, for the years ended December 31, 2023 and 2022 ($000): Years Ended December 31, 2023 2022 Total cash base rent $ 227,323 $ 218,772 Tenant reimbursements 43,928 37,148 Property operating expenses (45,964) (39,357) Same-store NOI $ 225,287 $ 216,563 Our reported same-store NOI increased from 2022 to 2023 by 4.0% primarily due to an increase in occupancy and cash base rents.
Impairment of Real Estate . We record impairments of our real estate assets classified as held for use when triggering events dictate that an asset may be impaired. An impairment is recorded when the carrying amount of the asset exceeds the sum of its undiscounted future operating and residual cash flows.
We commence revenue recognition when possession or control of the space is turned over to the tenant. Impairment of Real Estate . We record impairments of our real estate assets classified as held for use when triggering events dictate that an asset may be impaired.
The increase in selling profit from sales-type leases of $47.1 million was due to three leases qualifying as sales-type leases in 2022 with no comparable transactions in 2021. 51 Table of Contents The increase in equity in earnings (losses) of non-consolidated entities of $16.2 million was primarily due to recognizing our share of gains on sale of five properties from NNN Office JV L.P. in 2022 in the amount of $24.5 million with no property sales at our non-consolidated entities in 2021.
The decrease in selling profit from sales-type lease of $47.1 million was due to three leases qualifying as sales-type leases in 2022 with no comparable transaction in 2023. The decrease in equity in earnings (losses) of non-consolidated entities of $14.6 million was primarily due to the timing of property sales within our non-consolidated entities.
We define 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. 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.
We define 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 same-store NOI, and accordingly same-store NOI may not be comparable to other REITs.
We access the public and private equity and debt markets on an opportunistic basis when we (1) believe conditions are favorable and (2) have a compelling use of proceeds. We expect to continue to access debt and equity markets in the future to implement our business strategy and to fund future growth when market conditions are favorable.
We expect to continue to access debt and equity markets in the future to implement our business strategy and to fund future growth when market conditions are favorable. However, the volatility in the capital markets primarily resulting from the effects of rising interest rates and rising inflation have negatively affect our ability to access these capital markets.
In 2022, we acquired or completed and placed into service $195.2 million of warehouse and distribution assets, which is a decrease of $690.4 million compared to 2021 investment activity of $885.6 million. The decrease was primarily due to the substantial completion of our portfolio transformation efforts and related capital recycling and the disruptions in the capital markets.
Over the last several years, we have focused our investment activity primarily on income producing single-tenant warehouse and distribution assets and speculative development of warehouse and distribution assets. In 2023, we acquired or completed and placed into service $146.4 million of warehouse and distribution assets, which is a decrease of $48.8 million compared to 2022 investment activity of $195.2 million.
The increase was primarily offset by recognizing our share of impairment charges and losses on debt satisfaction related to NNN Office JV L.P. in 2022 in the amount of $5.1 million and $1.5 million, respectively. The increase in net income or decrease in net loss in future periods will be closely tied to the level of acquisitions made by us.
The increase was offset by $1.5 million allocated to noncontrolling interest holders for their share of selling profit on a sales-type lease in 2022, with no comparable transactions in 2023. The increase in net income or decrease in net loss in future periods will be closely tied to the level of acquisitions made by us.
Our target markets are experiencing low vacancy rates. Despite an increase in construction in recent years, we believe there is sufficient tenant demand for our development projects. 43 Table of Contents Leasing General . Re-leasing properties that are currently vacant or become vacant as leases expire at favorable effective rates is a primary area of focus for our asset management.
We believe this will result in lower supply in the future and may provide opportunity for more build-to-suit investment. Leasing General . Re-leasing properties that are currently vacant or become vacant as leases expire at favorable effective rates is a primary area of focus for our asset management.
During 2022, we entered into 18 new leases and lease extensions encompassing approximately 4.1 million square feet. The average base rent on these extended leases was approximately $5.36 per square foot compared to the average base rent on these leases before extension of $4.26 per square foot.
The average fixed rent on the second generation new and extended leases was $5.40 per square foot compared to the average fixed rent on these leases before extension of $3.85 per square foot.
A majority of our leases require tenants to pay operating expenses, including maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating expenses. However, certain of our leases provide for some level of landlord responsibility for capital repairs and replacements, the cost of which is generally factored into the rental rate.
The average escalation rate of these leases based on the next rent step was 2.6% as of December 31, 2023. A majority of our leases require tenants to pay operating expenses, including maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating expenses.
During 2021, we entered into forward sales contracts for the sale of 16.0 million common shares at a public offering price of $12.11 per common share in an underwritten equity offering. In December 2022, we issued 16.0 million common shares and we received $183.4 million of net proceeds.
We did not issue common shares under the ATM program during 2023. Underwritten equity offerings. In December 2022, we issued 16.0 million common shares and we received $183.4 million of net proceeds related to an underwritten equity offering in 2021, which was sold on a forward basis. There were no underwritten equity offerings in 2023. Direct Share Purchase Plan .
While tenants of these properties are generally responsible for increases over base year expenses, our property owner subsidiaries are generally responsible for the base-year expenses and capital expenditures, and are responsible for all expenses related to vacant space, at these properties. Vacant Properties .
While tenants of these properties are generally responsible for operating expenses in their spaces, but we are responsible for all expenses related to vacant space and certain non-reimbursable building expenses, at these properties. Vacant Properties .
As of December 31, 2022, 6.9 million common shares remain available for repurchase under this authorization. Operating Partnership Units .
As of December 31, 2023, 6.9 million common shares remain available for repurchase under this authorization. Debt: Corporate Borrowings . In 2023, we issued $300.0 million aggregate principal amount of our 2028 Senior Notes.
However, investments in certain co-investment programs and joint ventures limit our ability to make investment decisions unilaterally relating to the assets and limit our ability to deploy capital. During 2021, we recapitalized a portfolio of 22 special purpose industrial properties, primarily manufacturing assets, through the formation of an institutional joint venture.
However, investments in certain co-investment programs and joint ventures limit our ability to make investment decisions unilaterally relating to the assets and limit our ability to deploy capital. The real estate investments owned by our institutional joint ventures are generally financed with non-recourse debt.
The decrease was partially offset by an increase in interest expense related to increased interest rates on our variable-rate unsecured debt and increased amounts of unsecured debt during 2022 compared to 2021. The decrease in debt satisfaction losses, net, of $13.8 million was primarily related to the redemption of the 2023 Senior Notes during 2021.
These increases were partially offset by an increase of $3.8 million in capitalized interest primarily related to our development projects and a decrease of $2.1 million of interest expense incurred due to a decrease in borrowings on the credit facility during 2023 compared to 2022.
Our motivation to release vacant space requires us to meet market demands with respect to rental rates, tenant concessions and landlord responsibilities. Developers are similarly motivated when signing leases with tenants due to the significant competition in the industrial space.
However, certain of our leases provide for some level of landlord responsibility for capital repairs and replacements, the cost of which is generally factored into the rental rate. Our motivation to release vacant space requires us to meet market demands with respect to rental rates, tenant concessions and landlord responsibilities.
The decrease in impairment charges of $2.5 million was primarily due to the timing of impairment charges taken on certain properties. The impairments were primarily due to shortened hold periods, rising interest rates, vacancy and lack of leasing prospects.
The increase in impairment charges of $13.5 million was primarily related to the timing of impairment charges recognized on certain properties. The impairments in 2023 were taken on office assets primarily due to potential sales. The decrease in gains on sales of properties of $26.1 million was related to the timing of property dispositions.
The weighted-average cost of tenant improvements and lease commissions during 2022 was approximately $7.82 per square foot for new leases and $0.91 per square foot for extended leases. In addition, we ground leased approximately 100 acres in the Phoenix, Arizona market for 20 years (with three, 10-year extension options).
The weighted-average cost of tenant improvements and lease commissions was $12.31 per square foot for new first generation leases and $1.82 per square foot for second generation new and extended leases.
The decrease was primarily related to property sales and a decrease in termination fee income, partially offset by cash flow generated from acquiring properties.
Cash flows from operations as reported in the consolidated statements of cash flows totaled $209.4 million for 2023 and $194.3 million for 2022. The increase was primarily related to increased rental revenue related to lease extensions and placing development properties into service, partially offset by a decrease in cash flow due to property sales.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDuring 2022 and 2021, our variable-rate indebtedness had a weighted-average interest rate of 3.5% and 1.7%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for 2022 and 2021 would have increased by $2.3 million and $1.7 million, respectively.
Biggest changeDuring 2023 and 2022, our variable-rate indebtedness had a weighted-average interest rate of 6.8% and 3.5%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for 2023 and 2022 would have increased by $1.7 million and $2.3 million, respectively.
The following fair value was determined using the interest rates that we believe our outstanding fixed-rate debt would warrant as of December 31, 2022 and is indicative of the interest rate environment as of December 31, 2022, and does not take into consideration the effects of subsequent interest rate fluctuations.
The following fair value was determined using the interest rates that we believe our outstanding fixed-rate debt would warrant as of December 31, 2023 and is indicative of the interest rate environment as of December 31, 2023, and does not take into consideration the effects of subsequent interest rate fluctuations.
As of December 31, 2022, we had four interest rate swap agreements in our consolidated portfolio, all of which expire in January 2025. 56 Table of Contents
As of December 31, 2023, we had four interest rate swap agreements in our consolidated portfolio, all of which expire in January 2025. 56 Table of Contents
Accordingly, we estimate that the fair value of our fixed-rate debt was $1.2 billion as of December 31, 2022. Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs.
Accordingly, we estimate that the fair value of our fixed-rate debt was $1.5 billion as of December 31, 2023. Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs.
Item 7A. Quantitative and Qualitative Disclosure about Market Risk Our exposure to market risk relates primarily to our variable-rate indebtedness not subject to interest rate swaps and our fixed-rate debt. Our consolidated aggregate principal variable-rate indebtedness was $129.1 million at December 31, 2022 and 2021, which represented 8.6% and 8.5%, respectively, of our aggregate principal consolidated indebtedness.
Item 7A. Quantitative and Qualitative Disclosure about Market Risk Our exposure to market risk relates primarily to our variable-rate indebtedness not subject to interest rate swaps and our fixed-rate debt. Our consolidated aggregate principal variable-rate indebtedness was $129.1 million at December 31, 2023 and 2022, which represented 7.2% and 8.6%, respectively, of our aggregate principal consolidated indebtedness.
As of December 31, 2022 and 2021, our aggregate principal consolidated fixed-rate debt was $1.4 billion, which represented 91.4% and 91.5%, respectively, of our aggregate principal indebtedness. For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties.
As of December 31, 2023 and 2022, our aggregate principal consolidated fixed-rate debt was $1.7 billion and $1.4 billion, respectively, which represented 92.8% and 91.4%, respectively, of our aggregate principal indebtedness. For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties.

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