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What changed in LXP Industrial Trust's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of LXP Industrial Trust's 2023 and 2024 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 2024 report.

+268 added−314 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-15)

Top changes in LXP Industrial Trust's 2024 10-K

268 paragraphs added · 314 removed · 221 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAs 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.
Biggest changeOur business strategy is focused on growing our portfolio in our target markets while maintaining a strong, flexible balance sheet to allow us to act on opportunities as they arise. We acquire and develop warehouse and distribution facilities in markets with strong income and growth characteristics that we believe provide an optimal balance of income and capital appreciation.
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.
We target general purpose warehouse and 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.
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.
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.
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 engaged a “big-four” accounting firm to assist with our internal audit function. • Property Management . We primarily engaged CBRE, Cushman & Wakefield and Jones Lang LaSalle for the management of our properties where we have operating responsibilities.
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.
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 2024, we engaged our employees with several surveys, including an employee satisfaction survey.
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.
As of December 31, 2024, 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.
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.
We regularly engage our employees through the following methods: • During 2024, 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.
MFG Cold JV has additional equity commitments of $250 million, of which our proportionate share is $50 million, for the acquisition of special purpose industrial properties outside of our core warehouse/distribution focus.
MFG Cold JV has additional equity commitments of $250 million, of which our proportionate share is $50 million, for the acquisition of special purpose industrial properties outside of our warehouse and distribution focus.
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 .
During 2024, 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 .
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
Our Chief Executive Officer made an unqualified certification to the NYSE with respect to our compliance with the NYSE corporate governance listing standards in 2024. 9 Table of Contents
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.
The average age of our warehouse/distribution facilities as of December 31, 2024, was approximately 9.3 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 target market approach and tenant credit strength mitigates somewhat against binary risk in occupancy.
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.
As of December 31, 2024, our largest tenant represented 6.7% of our ABR and 46.9% of our ABR was from tenants with investment grade credit ratings (either tenant, guarantor or parent/ultimate parent). See “Item 2—Properties—Tenant Diversification.” 5 Table of Contents Institutional Fund Management. We also provide advisory services and co-invest with institutional investors in non-consolidated entities.
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.
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 five office properties as of December 31, 2024. Another one of these institutional joint ventures, NNN MFG Cold JV L.P.
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.
The participation rate for the employee satisfaction survey was 97% and we achieved a 95% overall satisfaction rate. Human Rights . We believe respect for human rights is essential.
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 .
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. We maintain a supplier code of conduct for our vendors and contractors.
Each of our employees work in one or more of the following departments: Investments, Asset Management, Accounting, Tax, Corporate, Legal and Information Technology.
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.
(“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.
(“MFG Cold JV”), in which we have a 20% interest, was formed in 2021 upon our disposition of a portfolio of 22 special purpose industrial properties outside of our warehouse and distribution strategy and has 21 properties as of December 31, 2024.
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.
Item 1. Business General We are a Maryland real estate investment trust, qualified as a REIT for federal income tax purposes, focused on Class A warehouse and distribution real estate investments in target markets in the Sunbelt and lower Midwest.
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.
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. Strategy General.
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.
As of December 31, 2024, we had equity ownership interests in approximately 119 consolidated real estate properties, located in 17 states and containing an aggregate of approximately 57.8 million square feet of space, approximately 93.6% of which was leased.
Our Investor Relations Department can be contacted at LXP Industrial Trust, One Penn Plaza, Suite 4015, New York, New York 10119-4015, Attn: Investor Relations, by telephone: (212) 692-7200, or by e-mail: ir@lxp.com. NYSE CEO Certification.
Our Investor Relations Department can be contacted at LXP Industrial Trust, 515 N Flagler Dr, Suite 408, West Palm Beach, Florida 33401, Attn: Investor Relations, by telephone: (212) 692-7200, or by e-mail: ir@lxp.com. NYSE CEO Certification.
Competition There are numerous developers, real estate companies, financial institutions, such as banks and insurance companies, and other investors with greater financial or other resources that compete with us in seeking properties for acquisition and tenants who will lease space in these properties.
Competition There are numerous developers, real estate companies, financial institutions, such as banks and insurance companies, and other investors with greater financial or other resources that compete with us in seeking properties for acquisition and tenants who will lease space in these properties. 6 Table of Contents 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 operating segment.
We believe our development strategy has the potential to provide us with higher returns than we could obtain by acquiring fully-leased buildings. We also believe our strategy mitigates against certain development risks and overhead costs because we partner with merchant builders, who are generally responsible for typical cost overruns.
We also believe our strategy mitigates against certain development risks and overhead costs because we partner with merchant builders, who are generally responsible for typical cost overruns. However, we are constantly exploring ways to be more efficient and earn higher returns.
Our principal executive offices are located at One Penn Plaza, Suite 4015, New York, New York 10119-4015; our telephone number is (212) 692-7200. Web Site. Our Internet address is www.lxp.com.
Our principal executive offices are located at 515 N Flagler Dr, Suite 408, West Palm Beach, Florida 33401; our telephone number is (212) 692-7200. Web Site. Our Internet address is www.lxp.com.
However, we are constantly exploring ways to be more efficient and earn higher returns. We believe our current strategy mitigates against unexpected costs and the cyclicality of many asset classes and investment strategies and provides shareholders with a secure dividend. We believe our strategy is more conservative than most industrial REITs.
We believe our single-tenant industrial focus mitigates against unexpected costs and the cyclicality of many asset classes and investment strategies and provides shareholders with a secure dividend. We believe our strategy is more conservative than most industrial REITs and provides defensive attributes for investors in the industrial sector and better growth potential for investors compared to the net lease sector.
We believe our strategy provides defensive attributes for investors in the industrial sector and better growth potential for investors compared to the net lease sector. Target Markets . We focus our investment strategy on growing markets where we believe there are advantages to building a geographic concentration.
Target Markets . We focus our investment strategy on growing markets within the Sunbelt and lower Midwest where we believe there are advantages to building a geographic concentration. We target markets that we believe have strong growth prospects for us to build a concentration of assets.
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.
Strong growth prospects are generally determined by: • Expanding transportation and logistics networks; • Markets attracting reshoring and advanced manufacturing investment; • Distances to major population centers; • Population growth; • Employment 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 (Percentage of ABR as of December 31, 2024) 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 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.
We strive to 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, 2024, we had 59 full-time employees.
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 .
We may opportunistically dispose of select properties outside of our target markets as opportunities and the need for liquidity arise. Building Type .
We acquire and develop warehouse/distribution properties in markets with strong income and growth characteristics that we believe provide an optimal balance of income and capital appreciation. We provide capital to merchant builders by providing construction financing and/or a takeout for build-to-suit projects and speculative development properties.
We provide capital to merchant builders by providing construction financing and/or a takeout for build-to-suit projects and speculative development properties. We believe our development strategy has the potential to provide us with higher returns than we could obtain by acquiring fully-leased buildings.
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.
While we have target markets, we do not allocate capital by market or operate properties in specific markets independent of our overall portfolio. 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.
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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.
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During the year ended December 31, 2024, we disposed of our remaining consolidated office properties and our consolidated portfolio is 100% industrial. History and Current Corporate Structure We were formed in 1993 and converted to a Maryland REIT in December 1997.
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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.
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Corporate Responsibility We believe that our commitment to environmental, social, governance and resilience (ESG+R) matters will create long-term value for our shareholders while addressing the evolving needs of our other stakeholders. The Nominating and ESG Committee of our Board of Trustees oversees our ESG+R strategy and initiatives. In 2024, we achieved significant milestones in our stewardship efforts.
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We target markets that we believe have strong growth prospects for us to build a concentration of assets.
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We announced updated goals and targets, which we believe are more aligned with our business strategy and are more applicable to our property portfolio. Further advancing our sustainability efforts, we installed smart meters across approximately two million square feet of our portfolio as of December 31, 2024, giving us better insight into the energy and water usage of our portfolio.
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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.
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Additionally, as of December 31, 2024, green building certifications encompassed over 33% of our portfolio by square footage, reinforcing our commitment to efficient buildings and environmental responsibility. Our social initiatives reflect a deep dedication to the well-being of our employees, tenants, and communities.
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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.
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We were once-again honored as one of the "2024 Best Companies to Work for in New York," a recognition of our focus on employee health, development, and inclusion. We also achieved a tenant satisfaction score of 4.19 out of 5, surpassing industry benchmarks, and engaged our workforce in over 100 hours of volunteering activities.
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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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In 2024, we adopted a Charitable Giving Policy, which includes an opportunity for employees to have certain of their personal donations matched up to $250 annually, and we contributed more than $50,000 to our partner organizations. Additionally, we continued our internship program, which further underscores our commitment to fostering talent and expanding opportunities in the commercial real estate sector.
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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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Governance remains a cornerstone of our ESG+R strategy, underpinned by transparency, ethical behavior, and forward-thinking leadership. In 2024, we maintained Gold-level Green Lease Leader recognition for embedding sustainability provisions into lease agreements, enabling better energy management and collaboration with tenants. Our governance practices were further validated through our increased score of 97 out of 100 in the U.S.
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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.
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Industrial Peer Group for GRESB Public Disclosure. 8 Table of Contents To address the challenges posed by climate transition risk, we have integrated resilience planning into our broader business strategy. Guided by the Task Force on Climate-related Financial Disclosures framework, we evaluate physical and transitional risks across our portfolio.
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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.
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In 2024, we documented and initiated mitigation measures for properties representing the top 25% of our portfolio by gross asset value. These efforts, combined with decarbonization strategies developed using Carbon Risk Real Estate Monitor pathways, position us to remain resilient and to take advantage of opportunities for cost savings.
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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.
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Through these initiatives, we underscore our commitment to advancing ESG+R initiatives in ways that benefit and create value for our shareholders. As we look to the future, we remain dedicated to embedding these strategies in our operations, ensuring that we continue to create value responsibly. Corporate Information Principal Executive Offices.
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We are committed to implementing sustainability measures across our organization, from the way in which we assess investment decisions to the business practices we promote at both the corporate and property levels.
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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.
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We find that communicating and engaging with our stakeholders to learn their needs enhances our knowledge and enables us to take actions that we believe may increase the value of our assets. We understand that each stakeholder has a specific point-of-view and unique needs.
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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.
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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.
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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.
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When feasible, we implement base building upgrades and provide tenants with improvement allowance funds to complete sustainability efforts.
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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.
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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.
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Social We believe that actively engaging with stakeholders is critical to our business and ESG+R efforts, providing valuable insight to inform strategy, attract and retain top talent, and strengthen tenant relationships.
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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. 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.
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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 .
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Actions: • Strive to implement best governance practices, mindful of the concerns of our shareholders. • Increase our ESG+R transparency and disclosure by providing regular ESG updates to shareholders and other stakeholders and aligning with appropriate reporting frameworks and industry groups, including GRESB, SASB, GRI and TCFD. • Monitor compliance with applicable benchmarking and disclosure legislation, including utility data reporting, audit and retro-commissioning requirements, and greenhouse gas emission laws. • Ensure employees operate in accordance with the highest ethical standards and maintain the policies outlined in our Code of Business Conduct and Ethics.
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Performance: • Updated and disclosed our Code of Business Conduct and Ethics, which includes a whistleblower policy, and provided annual training. • Performed enterprise risk assessments and management succession planning. • Participated in the GRESB Real Estate Assessment: ◦ Placed 3rd in the U.S.
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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.
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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.
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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.
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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.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

41 edited+8 added−3 removed136 unchanged
Biggest changeUnder those circumstances, other sources of capital may not be available to us or be available only on unattractive terms. Additionally, our ability to satisfy current or prospective lenders' insurance requirements may be adversely affected if lenders generally insist upon greater insurance coverage than is available to us in the marketplace or on commercially reasonable terms.
Biggest changeAdditionally, our ability to satisfy current or prospective lenders' insurance requirements may be adversely affected if lenders generally insist upon greater insurance coverage than is available to us in the marketplace or on commercially reasonable terms. 16 Table of Contents We rely on debt financing, including borrowings under our unsecured revolving credit facility, unsecured term loan, debt securities, and debt secured by individual properties, for working capital, including to finance our investment activities.
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.
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, or 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.
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.
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. 12 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.
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.
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; 15 Table of Contents • 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.
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.
We carry comprehensive liability, property, fire, extended coverage, pollution 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.
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.
As a result, we could be held liable, under some circumstances, for debts incurred by the tenant relating to the property. 11 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. 12 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. 10 Table of Contents Our assets may be subject to impairment charges.
Certain provisions of the Maryland General Corporation Law, including the Maryland Business Combination Act, the Maryland Control Share Act, and certain elective provisions of Maryland law under Subtitle 8 of the Maryland General Corporation Law, each as further described under the heading “Restrictions on Transfers of Capital Stock and Anti-Takeover Provisions – Maryland Law” in Exhibit 4.10 of this Annual Report, are applicable to Maryland REITs, such as the Company.
Certain provisions of the Maryland General Corporation Law, including the Maryland Business Combination Act, the Maryland Control Share Act, and certain elective provisions of Maryland law under Subtitle 8 of the Maryland General Corporation Law, each as further described under the heading “Restrictions on Transfers of Capital Stock and Anti-Takeover Provisions – Maryland Law” in Exhibit 4.12 of this Annual Report, are applicable to Maryland REITs, such as the Company.
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.
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 Board of Trustees is authorized to cause us to issue these shares without shareholder approval.
“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.
“Cybersecurity” in this Annual Report. 13 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.
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
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. 21 Table of Contents
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.
At December 31, 2024, 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.
The holders of any of our secured debt also would have priority with respect to the secured collateral over unsecured creditors in the event of a bankruptcy, liquidation or similar proceeding. None of our subsidiaries are guarantors of our unsecured debt; therefore assets of our subsidiaries may not be available to make payments on our unsecured indebtedness.
The holders of any of our secured debt also would have priority with respect to the secured collateral over unsecured creditors in the event of a bankruptcy, liquidation or similar proceeding. 17 Table of Contents None of our subsidiaries are guarantors of our unsecured debt; therefore assets of our subsidiaries may not be available to make payments on our unsecured indebtedness.
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.
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. We face risks associated with refinancings.
We generally visit our properties on an annual basis, but these visits are not comprehensive inspections and deferred maintenance items may go unnoticed.
We generally visit our properties on at least an annual basis, but these visits are not comprehensive inspections and deferred maintenance items may go unnoticed.
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.
As of December 31, 2024, our total consolidated indebtedness was approximately $1.6 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.
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 .
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. Ownership Limits in Our Declaration of Trust .
The establishment and issuance of shares of our existing series of preferred shares or a future class or series of shares could make a change of control of us more difficult. Maryland Takeover Statutes.
The establishment and issuance of shares of our existing series of preferred shares or a future class or series of shares could make a change of control of us more difficult. 18 Table of Contents Maryland Takeover Statutes.
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.
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 can be subject to cybersecurity incidents. We are also subject to third-party cybersecurity incident risks.
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.
Concerns over possible economic recession, high interest rates, bank failures, political dysfunction, geopolitical issues, including military conflicts, trade wars, labor shortages, and inflation may contribute to increased financial market volatility. 14 Table of Contents The United States financial markets have periodically experienced significant dislocations and liquidity disruptions due to a variety of factors.
Distribution requirements imposed by law limit our flexibility. To maintain LXP's status as a REIT for federal income tax purposes, LXP is generally required to distribute to its shareholders at least 90% of its taxable income for that calendar year. LXP's taxable income is determined without regard to any deduction for dividends paid and by excluding net capital gains.
To maintain LXP's status as a REIT for federal income tax purposes, LXP is generally required to distribute to its shareholders at least 90% of its taxable income for that calendar year. LXP's taxable income is determined without regard to any deduction for dividends paid and by excluding net capital gains.
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.
For example, as a landlord, we are exposed to the risk of cyber attacks on our tenants and their payment systems. In addition, 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.
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.
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.
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.
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.
Our strategy is to increase our investment in general purpose, well located warehouse/distribution assets and reduce our direct exposure to all other asset types. We believe this strategy will lessen capital expenditures over time and mitigate revenue reductions on renewals and re-tenanting.
Our strategy is to increase our investment in general purpose, well-located warehouse/distribution assets in our target markets. We believe this strategy will lessen capital expenditures over time and mitigate revenue reductions on renewals and re-tenanting.
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.
One of our non-consolidated joint ventures has a portfolio loan where the loan is cross-collateralized 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.
We periodically evaluate our real estate investments and other assets for impairment indicators. The judgment regarding the existence of impairment indicators is based on GAAP, which includes a variety of factors such as market conditions, the status of significant leases, the financial condition of major tenants and other factors that could affect the cash flow or value of an investment.
The judgment regarding the existence of impairment indicators is based on GAAP, which includes a variety of factors such as market conditions, the status of significant leases, a prolonged vacancy at a property, the financial condition of major tenants and other factors that could affect the cash flow or value of an investment.
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.
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.
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.
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.
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.
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.
In addition, our development activities are subject to risks related to supply-chain disruptions and inflation, which increase costs and may delay completion. A tenant’s bankruptcy proceeding may result in the re-characterization of related sale-leaseback transactions or in the restructuring of the tenant's payment obligations to us, either of which could adversely affect our financial condition.
A tenant’s bankruptcy proceeding may result in the re-characterization of related sale-leaseback transactions or in the restructuring of the tenant's payment obligations to us, either of which could adversely affect our financial condition.
These changes do not affect the REIT qualification rules directly, but may otherwise affect us or our shareholders.
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.
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.
As of December 31, 2024, we had 11 interest rate swap agreements outstanding with an aggregate notional amount of $632.5 million. 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.
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.
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.
Accordingly, there can be no assurance that our dispositions of such assets will not be subject to the prohibited transactions tax. If all or a significant portion of those dispositions were treated as prohibited transactions, we would incur a significant U.S. federal income tax liability, which could have a material adverse effect on our financial position.
If all or a significant portion of those dispositions were treated as prohibited transactions, we would incur a significant U.S. federal income tax liability, which could have a material adverse effect on our financial position. 20 Table of Contents Distribution requirements imposed by law limit our flexibility.
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.
Natural disasters, including earthquakes, storms, tornados, floods and hurricanes, could impact our properties. Incurring losses, costs or business interruptions related to natural disasters may adversely affect our operating and financial results. We are exposed to the potential direct and indirect impacts of climate change. We are exposed to physical risks from changes in climate.
In addition, we may be held directly liable for any such damages or claims irrespective of the provisions of any lease and, in certain cases, we have provided lenders with environmental indemnities.
In addition, we may be held directly liable for any such damages or claims irrespective of the provisions of any lease and, in certain cases, we have provided lenders with environmental indemnities. 19 Table of Contents From time to time, in connection with the conduct of our business, our property owner subsidiaries authorize the preparation of Phase I environmental reports and, when recommended, Phase II environmental reports, with respect to their properties.
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.
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.
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.
In addition, we had a $300.0 million unsecured term loan which matures January 2027 that is SOFR indexed and was subject to interest rate swap agreements that expired in January 2025. An aggregate amount of $250.0 million of the term loan is swapped to obtain an effective fixed interest rate of 4.31% from January 31, 2025 to January 31, 2027.
From time to time, in connection with the conduct of our business, our property owner subsidiaries authorize the preparation of Phase I environmental reports and, when recommended, Phase II environmental reports, with respect to their properties. There can be no assurance that these environmental reports will reveal all environmental conditions at the properties in which we have an interest.
There can be no assurance that these environmental reports will reveal all environmental conditions at the properties in which we have an interest.
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.
As of December 31, 2024, we had $129.1 million of trust preferred securities that mature in April 2037 that are SOFR indexed. An aggregate amount of $82.5 million of the trust preferred securities is swapped to obtain an effective fixed interest rate of 5.20% to October 30, 2027.
Removed
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.
Added
We periodically evaluate our real estate investments and other assets for impairment indicators.
Removed
We rely on debt financing, including borrowings under our unsecured revolving credit facility, unsecured term loan, debt securities, and debt secured by individual properties, for working capital, including to finance our investment activities.
Added
Our development activities are subject to risks related to supply-chain disruptions and inflation, which increase costs and may delay completion. In addition, we hold land for development and we are unable to estimate any further costs to develop such land until we commit to develop any such land.
Removed
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.
Added
International trade disputes and increases in U.S. trade tariffs could adversely impact demand for our properties. Demand for our properties is impacted by trading volumes and global supply chains.
Added
International trade disputes or the imposition of significant tariffs or other trade restrictions by the U.S. on imported goods could adversely impact trading volumes and global supply chains and thereby decrease demand for our properties. In addition, the anticipation of these issues could result in a decrease in demand for our properties. Natural disasters could adversely impact our results.
Added
Also, our unsecured revolving credit facility is subject to a variable interest rate. We also have an aggregate of $1.1 billion of unsecured senior notes which mature from November 2028 to October 2031.
Added
Under those circumstances, other sources of capital may not be available to us or be available only on unattractive terms.
Added
Risks Related to Investment in our Equity We may change the dividend policy for our common shares in the future.
Added
Accordingly, there can be no assurance that our dispositions of such assets will not be subject to the prohibited transactions tax.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

19 edited+0 added−7 removed12 unchanged
Biggest changeWe maintain a critical systems vendor management program with the assistance of a third-party provider of vendor risk intelligence data, including cybersecurity vulnerabilities, business health and credit risk. 25 Table of Contents In the event of an incident which jeopardizes the confidentiality, integrity, or availability of the information technology systems we use, we utilize a regularly updated incident response plan.
Biggest changeOur Director of Information Technology, together with BDO, oversees the MS Provider. We maintain a critical systems vendor management program with the assistance of a third-party provider of vendor risk intelligence data, including cybersecurity vulnerabilities, business health and credit risk.
We maintain comprehensive business continuity and disaster recovery plans, which update on at least an annual basis and we test through tabletop exercises on an annual basis. We do not maintain any on-premises data or servers. We are exposed to risks from interactions with vendors and other third parties.
We maintain comprehensive business continuity and disaster recovery plans, which we update on at least an annual basis and we test through tabletop exercises on an annual basis. We do not maintain any on-premises data or servers. We are exposed to risks from interactions with vendors and other third parties.
Our third-party information technology provider takes the lead on assisting us with the steps and procedures to contain the incident. If our third-party information technology provider is unable to contain the incident, we expect to work with our CTO/CISO and cybersecurity insurer to engage the appropriate vendor for containment. Once a cybersecurity incident is contained our focus shifts to remediation.
Our third-party information technology provider takes the lead on assisting us with the steps and procedures to contain the incident. If our third-party information technology provider is unable to contain the incident, we expect to work with our CTO/CISO and cybersecurity insurer to engage an appropriate vendor for containment. Once a cybersecurity incident is contained our focus shifts to remediation.
In addition, the COO and CTO/CISO engage with external legal counsel with respect to other regulatory reporting obligations related to an incident. Following the conclusion of an incident the incident response team will generally assess the effectiveness of the cybersecurity program and make adjustments as appropriate.
In addition, our COO and CTO/CISO generally engage with external legal counsel with respect to regulatory reporting obligations related to an incident. Following the conclusion of an incident, the incident response team will generally assess the effectiveness of the cybersecurity program and make adjustments as appropriate.
Since 2019, BDO USA, LLC (“BDO”) has acted as our outsourced chief technology officer/chief information security officer (“CTO/CISO”) and provided us with the following services through a dedicated partner in BDO Digital’s Security & Compliance: • Overseeing chief security role and informing leadership of cybersecurity risks and the role of staff in protecting information, including, but not limited to: ◦ Monitoring emerging risks, suggesting and overseeing implementation of mitigations; ◦ Championing security awareness and training programs; and ◦ Reporting significant security events to leadership. • Guidance regarding incidence response, business continuity and disaster recovery program, strategy and testing. • Oversight and guidance on vendor risk management processes and individual vendor profiles. • IT strategy advice. • Monitoring the relationship with our information technology managed services provider. • Technical, policy and procedure recommendations.
Since 2019, BDO USA, LLC (“BDO”) has acted as our outsourced chief technology officer/chief information security officer (“CTO/CISO”) and provided us with the following services: • Overseeing the chief security role and informing leadership of cybersecurity risks and the role of staff in protecting information, including, but not limited to: ◦ Monitoring emerging risks, and suggesting and overseeing implementation of mitigations; ◦ Overseeing security awareness and training programs; and ◦ Reporting significant security events to leadership. • Guidance regarding incidence response, business continuity and disaster recovery program, strategy and testing. • Oversight and guidance on vendor risk management processes and individual vendor profiles. • IT strategy advice. • Monitoring the relationship with our information technology managed services provider. • Technical, policy and procedure recommendations.
Together with our Director of Information Technology, BDO reports frequently to our Chief Operating Officer and General Counsel and to the Audit and Cyber Risk Committee of our Board of Trustees on a quarterly basis. We outsource our information technology managed services to a third-party provider of customized private cloud solutions featuring virtual desktops and servers.
Together with our Director of Information Technology, BDO regularly reports to our Chief Operating Officer and General Counsel and to the Audit and Cyber Risk Committee of our Board of Trustees on a quarterly basis. We outsource our information technology managed services to a third-party provider of customized private cloud solutions featuring virtual desktops and servers (“MS Provider”).
This third-party solution includes 24/7 monitoring and is built to the NISI/ISO framework. We also engage a nationally recognized public accounting firm to perform periodic cybersecurity assessments, which entail performing a qualitative current state evaluation of our cybersecurity program in line with specific domains within the recognized third party framework.
This third-party solution includes 24/7 monitoring and is consistent with a well-recognized cybersecurity framework. We also engage a nationally recognized public accounting firm to perform periodic cybersecurity assessments, which entail performing a qualitative current state evaluation of our cybersecurity program in line with specific domains within the recognized third-party framework.
While the particular personnel assigned to an incident response team will depend on the particular facts and circumstances, the incident response team is made up of two teams: the information security response team and the business response team.
While 23 Table of Contents the particular personnel assigned to an incident response team will depend on the particular facts and circumstances, the incident response team is made up of two teams: the information security response team and the business response team.
See “Item 1A–Risk Factors–Cybersecurity incidents may adversely affect our business.” 27 Table of Contents
See “Item 1A–Risk Factors–Cybersecurity incidents may adversely affect our business.” 25 Table of Contents
On at least a quarterly basis, our Chief Operating Officer, CTO/CISO and Director of Information Technology report to our Audit and Cyber Risk Committee on information technology matters, including cybersecurity. Our Audit and Cyber Risk Committee then updates the Board of Trustees following management’s update.
On at least a quarterly basis, our Chief Operating Officer, CTO/CISO and Director of Information Technology report to our Audit and Cyber Risk Committee on information technology matters, including cybersecurity. Our Audit and Cyber Risk Committee provides updates to the Board of Trustees.
Once a potential cybersecurity incident is identified, including a third party cybersecurity event, the incident response team designated pursuant to the incident response plan follows the procedures set forth in the plan to investigate the potential incident, including determining the nature of the event (e.g. ransomware or personal data breach) and assessing the severity of the event and sensitivity of any compromised data.
Once a potential cybersecurity incident is identified, including a third party cybersecurity event, the incident response team designated pursuant to the incident response plan follows the procedures set forth in the plan to investigate the potential incident, including determining the nature of the event and assessing the severity of the event and sensitivity of any compromised data.
We have specific recovery time objectives and recovery point objectives in our disaster recovery plan. Our incident response plan provides clear communication protocols, including with respect to members of senior management, including the CEO, CFO and COO, internal and external counsel, our management disclosure committee and the Audit and Cyber Risk Committee and the Board of Trustees.
We have specific recovery time objectives and recovery point objectives in our disaster recovery plan. Our incident response plan provides clear communication protocols, which may include, depending on the incident's classification and other circumstances, our CEO, CFO and COO, our internal and external counsel, our management disclosure committee and the Audit and Cyber Risk Committee and the Board of Trustees.
In addition, we take the following preventative measures: • We engage a third party to perform internal and external penetration tests on an annual basis. • We require multi-factor authentication for our network and primary applications. • We utilize geolocation-based blocking. We recognize that threat actors frequently target employees to gain unauthorized access to information systems.
In addition, we take the following preventative measures: • We engage a third party to perform internal and external penetration tests on an annual basis. • We require multi-factor authentication and other enhanced security measures for our network and primary applications. • We utilize geolocation-based blocking and mobile device management.
Therefore, a key element of our prevention efforts is annual employee training on cybersecurity around phishing, malware and other cyber risks. We use a third-party provider of security awareness training and simulated phishing for our email phishing reporting and cyber security training. Our employees are required to complete quarterly cybersecurity training programs.
We recognize that threat actors frequently target employees to gain unauthorized access to information systems. Therefore, a key element of our prevention efforts is employee training on cybersecurity around phishing, malware and other cyber risks. We use a third-party provider of security awareness training and simulated phishing for our email phishing reporting and periodic cyber security training.
To mitigate this risk, we perform due diligence on our vendors and third-party service providers.
To mitigate this risk, we perform due diligence on our vendors and third-party service providers. We believe we work with reputable vendors and require SOC reports from critical vendors and IT service providers.
Both employees report to our Chief Operating Officer. Due to our size and the size of our employee base, we use third-party vendors to assist us with our network and information technology requirements.
We employ a Director of Information Technology who works exclusively on information technology and cybersecurity matters and has significant related experience. Our Director of Information Technology reports to our Chief Operating Officer. Due to our size and the size of our employee base, we use third-party vendors to assist us with our network and information technology requirements.
Detection and Analysis Cybersecurity incidents may be detected through a variety of means, which may include, but are not limited to, automated event-detection notifications, employee notifications, and notification from external parties (e.g., our third-party information technology provider).
We also maintain cybersecurity insurance providing coverage for certain costs related to cybersecurity 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. 24 Table of Contents Detection and Analysis Cybersecurity incidents may be detected through a variety of means, which may include, but are not limited to, automated event-detection notifications, employee notifications, and notification from external parties (e.g., our third-party information technology provider).
Our incident response plan was developed to guide the internal response to incidents taking into account a recognized third party cybersecurity framework.
In the event of an incident which jeopardizes the confidentiality, integrity, or availability of the information technology systems we use, we utilize an incident response plan. Our incident response plan was developed to guide the internal response to incidents taking into account a recognized third party cybersecurity framework.
Cybersecurity Risks As of December 31, 2023, we are not aware of any material cybersecurity incidents in the last three years.
Cybersecurity Risks As of December 31, 2024, we are not aware of any material cybersecurity incidents in the last three years. However, there can be no assurance that our security efforts and measures, and those of our third-party providers, will be effective or that attempted cybersecurity incidents or disruptions would not be successful or damaging.
Removed
A member of our Board of Trustees and the Audit and Cyber Risk Committee of our Board of Trustees is a recognized cybersecurity expert as a member of the Tech & Cybersecurity Advisory Committee for U.S. Senator Mark Warner and having been an investor in and director of private and public technology-focused companies.
Removed
We employ a Director of Information Technology who works exclusively on information technology and cybersecurity matters and has over 28 years of related experience. We employ a Director of ESG and Corporate Operations who spends part of her business time on information technology matters, specifically business applications, and has 11 years of related experience.
Removed
Our Director of Information Technology, together with BDO, oversees the third-party managed service provider (“MS Provider”).
Removed
We believe we work with reputable vendors and require SOC reports from critical vendors and IT service providers. 26 Table of Contents We also maintain cybersecurity insurance providing coverage for certain costs related to cybersecurity 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.
Removed
With respect to our SEC reporting obligations related to a cybersecurity incident, as set forth in the incident response plan, the leaders of the incident response plan regularly brief the management disclosure committee on developments related to an incident.
Removed
However, we routinely face risks of potential incidents, whether through cyber-attacks or cyber intrusions over the Internet, ransomware and other forms of malware, computer viruses, attachment to emails, phishing attempts, extortion or other scams that we are able to prevent or sufficiently mitigate harm from.
Removed
Although we make efforts to maintain the security and integrity of the third party networks and systems we use, these systems and the proprietary, confidential and personal information that resides on or is transmitted through them, are subject to the risk of a security incident or disruption, and there can be no assurance that our security efforts and measures, and those of our third party providers, will be effective.

Item 2. Properties

Properties — owned and leased real estate

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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.
Biggest changeTenants (1) 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 2026-2033 6 3,864,731 7.1 % $ 18,949 6.7 % Nissan 2027 2 2,971,000 5.5 % 13,258 4.7 % Black and Decker 2029 & 2033 2 2,289,366 4.2 % 9,694 3.4 % Wal-Mart 2027-2031 3 2,351,917 4.4 % 9,077 3.2 % GXO Logistics 2026-2028 3 1,697,475 3.1 % 7,826 2.8 % Watco 2038 1 132,449 0.2 % 6,573 2.3 % FedEx 2028 2 292,021 0.5 % 6,282 2.2 % Owens Corning 2025-2027 3 863,242 1.6 % 6,169 2.2 % Olam 2029 & 2037 2 1,196,614 2.2 % 6,045 2.1 % Mars Wrigley 2028 1 604,852 1.1 % 5,552 2.0 % Undisclosed (5) 2034 1 1,318,680 2.4 % 5,434 1.9 % Drive Automotive Industries 2036 1 625,238 1.2 % 5,248 1.9 % Georgia-Pacific 2028 & 2031 2 1,283,102 2.4 % 5,113 1.8 % FIGS 2031 1 488,400 0.9 % 4,689 1.7 % Asics 2030 1 855,878 1.6 % 4,634 1.6 % 31 20,834,965 38.5 % $ 114,543 40.4 % (1) Tenant, guarantor or parent.
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.
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 West Palm Beach, Florida and our satellite offices in Dallas, Texas and New York, New York. Property-Level Leverage.
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.
Dry Ridge KY 20% 336,350 6/30/2031 100 % 730 North Black Branch Rd. Elizabethtown KY 20% 167,770 6/30/2030 100 % 750 North Black Branch Rd. Elizabethtown KY 20% 539,592 6/30/2030 100 % 301 Bill Bryan Blvd. Hopkinsville KY 20% 424,904 6/30/2030 100 % 4010 Airpark Dr. Owensboro KY 20% 211,598 6/30/2030 100 % 113 Wells St.
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.
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, 2024. 26 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2024 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 3405 S.
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.
Irving TX 20% 261,305 5/31/2033 23 % Office total 701,641 69.5 % 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.
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.
Item 2. Properties Real Estate Portfolio General. As of December 31, 2024, we had ownership interests in approximately 119 consolidated real estate properties containing approximately 57.8 million square feet of rentable space, which were approximately 93.6% leased based upon net rentable square feet. All properties in which we have an interest are held through at least one property owner subsidiary.
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.
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 % 8900 Freeport Pkwy.
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.
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 6,538,975 100 % Non-consolidated portfolio total 7,240,616 97.0 % In addition, we have two non-consolidated joint ventures with a developer, which own developable parcels of land in Etna, Ohio.
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.
Hebron OH 250,410 2/28/2034 100 % 2155 Rohr Rd. Lockbourne OH 320,190 6/30/2035 100 % 575-599 Gateway Blvd. Monroe OH 194,936 6/30/2026 100 % 600 Gateway Blvd. Monroe OH 994,013 8/31/2027 100 % 700 Gateway Blvd. Monroe OH 1,299,492 6/30/2030 100 % 675 Gateway Blvd. Monroe OH 143,664 2/28/2032 100 % 10345 Philipp Pkwy.
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.
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. Lumberton NC 20% 423,280 11/30/2026 100 % 10590 Hamilton Ave.
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.
Thomas Rd. Goodyear AZ 468,182 11/30/2036 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 % 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.
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 .
As of December 31, 2024, we had outstanding consolidated mortgages and notes payable of approximately $55.5 million with a weighted-average interest rate of approximately 4.1% and a weighted-average maturity of 5.6 years. Property Charts .
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.
McQueen Rd. Chandler AZ 201,784 3/31/2033 100 % 4445 N. 169th Ave. Goodyear AZ 160,140 12/31/2025 100 % 16811 W. Commerce Dr. Goodyear AZ 540,349 4/30/2026 100 % 255 143rd Ave. Goodyear AZ 801,424 9/30/2030 100 % 3815 N Cotton Ln. Goodyear AZ 488,400 1/31/2031 100 % 3595 N Cotton Ln. Goodyear AZ 392,278 8/31/2033 100 % 17510 W.
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.
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 % 10300 Schuster Way Etna OH 250,020 10/14/2029 100 % 9800 Schuster Way Etna OH 1,074,840 10/31/2033 100 % 200 Arrowhead Dr. Hebron OH 400,522 8/31/2027 100 % 191 Arrowhead Dr.
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.
Cartersville GA 396,000 9/30/2031 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 % 1001 Gateway Pkwy. Rincon GA 204,824 1/31/2034 100 % 1319 Dean Forest Rd.
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.
Whitestown IN 149,072 8/31/2025 100 % 4600 Albert S White Dr. Whitestown IN 149,072 1/31/2028 100 % 5424 Albert S. White Dr. Whitestown IN 1,016,244 11/30/2031 100 % 27200 West 157th St.
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.
State Road 32 Lebanon IN 741,880 1/31/2029 100 % 180 Bob Glidden Blvd. Whiteland IN 179,530 12/31/2026 100 % 76 Bob Glidden Blvd. Whiteland IN 168,480 12/31/2026 100 % 19 Bob Glidden Blvd. Whiteland IN 530,400 3/31/2031 100 % 5352 Performance Way Whitestown IN 380,000 7/31/2025 100 % 4900 Albert S White 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.
Savannah GA 355,527 6/30/2025 100 % 1315 Dean Forest Rd. Savannah GA 88,503 8/31/2025 100 % 1004 Trade Center Pkwy. Savannah GA 419,667 7/31/2026 100 % 7225 Goodson Rd. Union City GA 370,000 5/31/2029 100 % 3931 Lakeview Corporate Dr. Edwardsville IL 769,500 9/30/2026 100 % 4015 Lakeview Corporate Dr. Edwardsville IL 1,017,780 5/31/2030 100 % 1001 Innovation Rd.
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.
The weighted-average remaining lease term was 5.4 years. 29 Table of Contents LXP NON-CONSOLIDATED PORTFOLIO PROPERTY CHART As of December 31, 2024 Property Location City State Percent Owned Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased Non-consolidated leased land: 30 Light St. Baltimore MD 41.1% — 12/31/2048 100 % Office properties: 3902 Gene Field Rd. St.
(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.
(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, 2024. (5) Lease restricts certain disclosures In 2024, 2023 and 2022, no tenant/guarantor represented greater than 10% of our annual base rental revenue.
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.
As of December 31, 2024, the Annualized Cash Base Rent for the non-consolidated portfolio was $7.03 per square foot and the weighted-average remaining lease term was 6.6 years. 30 Table of Contents Land Held for Development The following is a summary of our land held for development as of December 31, 2024: Project (% owned) Market Approximate Acres Consolidated: Reems & Olive (95.5%) Phoenix, AZ 315 Mt.
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.
Streetsboro OH 649,250 10/31/2026 100 % 250 Rittenhouse Cir. Bristol PA 241,977 11/30/2036 100 % 231 Apple Valley Rd. Duncan SC 196,000 1/31/2026 62 % 425 Apple Valley Rd. Duncan SC 327,360 9/30/2026 100 % 235 Apple Valley Rd. Duncan SC 177,320 10/31/2026 100 % 417 Apple Valley Rd. Duncan SC 195,000 3/31/2027 100 % 70 Tyger River Dr.
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.
Houston School Rd. Lancaster TX 468,300 1/31/2030 100 % 3115 N. Houston School Rd. Lancaster TX 124,450 N/A — % 13930 Pike Rd. Missouri City TX — 4/30/2032 100 % 8601 E. Sam Lee Ln. Northlake TX 1,214,526 8/31/2029 100 % 17505 Interstate Hwy. 35W Northlake TX 500,556 10/31/2034 100 % 10565 Red Bluff 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.
Smyrna TN 1,505,000 4/30/2027 100 % 2115 East Belt Line Rd. Carrollton TX 356,855 6/30/2035 84 % 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.
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.
Rantoul IL 813,126 10/31/2034 100 % 749 Southrock Dr. Rockford IL 150,000 12/31/2027 100 % 3686 South Central Ave. Rockford IL 93,000 12/31/2027 100 % 2463 N Buck Creek Rd. Greenfield IN 1,053,360 N/A — % 1627 Veterans Memorial Pkwy. E. Lafayette IN 309,400 9/30/2029 100 % 1285 W.
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.
Duncan SC 408,000 1/31/2029 100 % 230 Apple Valley Rd. Duncan SC 275,400 4/30/2029 100 % 402 Apple Valley Rd. Duncan SC 235,600 12/31/2029 100 % 7870 Reidville Rd. Greer SC 396,073 9/30/2025 100 % 7820 Reidville Rd. Greer SC 210,820 12/31/2027 100 % 140 Smith Farms Pkwy. Greer SC 304,884 2/28/2029 100 % 21 Inland Pkwy.
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.
The following chart sets forth certain information regarding lease expirations for the next ten years in our consolidated portfolio at December 31, 2024: Year Number of Lease Expirations Square Feet ABR ($000's) Percentage of ABR 2025 10 2,164,814 $ 11,159 3.9 % 2026 23 6,656,782 32,210 11.4 % 2027 18 9,363,487 41,356 14.6 % 2028 10 3,774,921 24,529 8.7 % 2029 23 9,053,958 42,365 15.0 % 2030 11 7,094,562 31,582 11.2 % 2031 13 5,548,831 28,074 9.9 % 2032 4 805,584 5,925 2.1 % 2033 3 1,668,902 12,703 4.5 % 2034 7 3,592,080 20,478 7.2 % The following chart sets forth ABR ($000's) based on the credit rating of our consolidated tenants at December 31, 2024 (1) : ABR Percentage of ABR Investment Grade $ 132,966 46.9 % Non-investment Grade 50,854 18.0 % Unrated 99,390 35.1 % $ 283,210 100.0 % (1) Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
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.
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. 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.
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.
Tampa FL 229,605 2/28/2026 100 % 95 International Pkwy. Adairsville GA 225,211 3/31/2025 100 % 200 Momeni Ln. Adairsville GA 447,753 8/31/2027 100 % 7875 White Rd. SW Austell GA 604,852 1/31/2028 100 % 1001 Old Grassdale Rd. Cartersville GA 273,576 5/31/2029 100 % 51 Busch Dr. Cartersville GA 328,000 7/31/2031 100 % 41 Busch Dr.
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.
Winchester VA 400,400 12/18/2031 100 % 150 Mercury Way Winchester VA 324,535 9/30/2034 100 % Warehouse / Distribution Total 57,765,286 93.6 % As of December 31, 2024, Annualized Cash Base Rent for the consolidated portfolio, excluding assets primarily consisting of land leases, was $5.08 per square foot.
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.
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 % 27 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2024 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 1700 47th Ave.
Generally, all multi-tenant assets are included in unrated. See Item 1A “Risk Factors”. 38 Table of Contents
See Item 1A “Risk Factors”. 32 Table of Contents
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.
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. Canton MS 1,466,000 2/28/2027 100 % 6495 Polk Ln. Olive Branch MS 269,902 5/31/2028 100 % 11624 S. Distribution Cv. Olive Branch MS 1,170,218 6/30/2029 100 % 8500 Nail Rd.
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.
Pasadena TX 248,240 4/30/2025 100 % 4100 Malone Dr. Pasadena TX 233,190 8/31/2028 100 % 10535 Red Bluff Rd. Pasadena TX 257,835 4/30/2029 100 % 9701 New Decade Dr. Pasadena TX 102,863 10/31/2029 100 % 10575 Red Bluff Rd. Pasadena TX 248,240 2/28/2034 100 % 16407 Applewhite Rd. San Antonio TX 849,275 4/30/2027 100 % 2601 Bermuda Hundred Rd.
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.
I-30 Grand Prairie TX 215,000 3/31/2037 100 % 28 Table of Contents LXP CONSOLIDATED PORTFOLIO PROPERTY CHART WAREHOUSE/DISTRIBUTION As of December 31, 2024 Property Location City State Net Rentable Square Feet Primary Tenant Current Lease Term Expiration Percent Leased 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.
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).
Below are the industries in our warehouse/distribution portfolio based on 2024 ABR for consolidated properties owned as of December 31, 2024: Industries Percentage of ABR Consumer Products 23.9 % Transportation/Logistics 20.7 % E-Commerce 13.7 % Automotive 12.8 % Construction/Materials 10.7 % Food 6.1 % Apparel 3.8 % Specialty 2.6 % Retail Department 1.9 % Energy Products 1.1 % Other 2.7 % Total 100.0 % 31 Table of Contents The following table sets forth information about the 15 largest tenants/guarantors in our portfolio as of December 31, 2024, based on total annualized base rental revenue as of December 31, 2024 ($000s, except square feet).
Removed
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.
Added
Ocala FL 617,055 8/31/2030 100 % 3343 NW 44th Avenue Ocala FL 1,085,280 N/A — % 2455/2467 Premier Row Orlando FL 350,990 5/31/2025 100 % 3775 Fancy Farms Rd. Plant City FL 510,484 3/31/2028 100 % 1075 NE 30th St. Ruskin FL 138,673 1/31/2029 42 % 3240 Clover Ridge Ave. Ruskin FL 132,212 N/A — % 3102 Queen Palm Dr.
Removed
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.
Added
Olive Branch MS 716,080 7/31/2029 100 % 11555 Silo Dr. Olive Branch MS 927,742 9/30/2029 100 % 671 Washburn Switch Rd. Shelby NC 673,425 5/31/2036 100 % 2203 Sherrill Dr. Statesville NC 639,800 10/31/2026 100 % 736 Addison Rd. Erwin NY 408,000 11/30/2026 100 % 29-01 Borden Ave./29-10 Hunters Point Ave.
Removed
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.
Added
Greer SC 1,318,680 12/31/2034 100 % 170 Smith Farms Pkwy. Greer SC 797,936 4/30/2035 100 % 160 Smith Farms Pkwy. Greer SC 1,091,888 N/A — % 923 Matrix Pkwy. Piedmont SC 625,238 12/31/2036 100 % 5795 North Blackstock Rd. Spartanburg SC 341,660 7/31/2029 100 % 1021 Tyger Lake Rd.
Removed
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.
Added
Spartanburg SC 213,200 2/28/2031 100 % 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. 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 9/30/2029 100 % 200 Sam Griffin Rd.
Removed
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.
Added
Chester VA 1,034,470 6/30/2030 100 % 291 Parkside Dr. Winchester VA 344,700 5/31/2031 100 % 80 Tyson Dr.
Removed
(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.
Added
Comfort Phase II (80%) Indianapolis, IN 116 ATL Fairburn (100%) Atlanta, GA 14 445 Project (% owned) Market Approximate Acres Non-consolidated: Etna Park 70 (90%) Columbus, OH 48 Etna Park 70 East (90%) Columbus, OH 21 69 Tenant Diversification We believe our tenant mix is well diversified.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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
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.
Removed
(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
(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
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.
Removed
However, we will invest in shorter-term leases if we are optimistic about the location in a releasing context.
Removed
In 2023, 2022 and 2021, no tenant/guarantor represented greater than 10% of our annual base rental revenue.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−1 removed3 unchanged
Biggest changeThere were 6,874,241 shares that may yet be repurchased under our share repurchase authorization as of December 31, 2023. Insider Trading.
Biggest changeThere were 6,874,241 shares that may yet be repurchased under our share repurchase authorization as of December 31, 2024. 34 Table of Contents Item 6. [Reserved] 35 Table of Contents
We 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.
We did not issue any common shares during 2024 on an unregistered basis. Share Repurchase Program. There were no common share repurchases during the quarter and year ended December 31, 2024 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, 2023, 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, 2024, 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 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.
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 12, 2025, we had 2,058 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 — $ — $ 2,994,544 Equity compensation plans not approved by security holders — — — Total — $ — $ 2,994,544 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 — $ — 1,784,563 Equity compensation plans not approved by security holders — — — Total — $ — 1,784,563 Recent Sales of Unregistered Securities.
Removed
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

82 edited+22 added−36 removed54 unchanged
Biggest changeAlso, 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.
Biggest changeAlso, 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. 47 Table of Contents The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and Adjusted Company FFO available to all equityholders for 2024 and 2023 (dollars in thousands, except share and per share amounts): Years Ended December 31, 2024 2023 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders $ 37,922 $ 23,863 Adjustments: Depreciation and amortization related to real estate 187,109 179,554 Impairment charges - real estate, including our share of non-consolidated entities 295 17,859 Noncontrolling interests - OP units — (58) Amortization of leasing commissions 5,754 3,970 Joint venture and noncontrolling interest adjustment 5,836 13,168 Gains on sales of properties, including our share of non-consolidated entities (41,239) (38,796) Gain on change in control of a subsidiary (209) — FFO available to common shareholders - basic 195,468 199,560 Preferred dividends 6,290 6,290 Amount allocated to participating securities 322 230 FFO available to all equityholders - diluted 202,080 206,080 Sales-type lease income attributable to the exercise of a purchase option (1) (14,991) — Allowance for credit losses (61) (32) Transaction costs, including our share of non-consolidated entities (2) 518 4 Debt satisfaction losses, net, including our share of non-consolidated entities (552) 138 Non-recurring costs (3) 1,788 — Noncontrolling interest adjustments 578 1 Adjusted Company FFO available to all equityholders - diluted $ 189,360 $ 206,191 Per Common Share Amounts Basic: FFO $ 0.67 $ 0.69 Diluted: FFO $ 0.68 $ 0.70 Adjusted Company FFO $ 0.64 $ 0.70 Weighted-Average Common Shares: Basic: Weighted-average common shares outstanding - basic EPS 291,472,930 290,245,877 Operating partnership units (4) — 820,386 Weighted-average common shares outstanding - basic FFO 291,472,930 291,066,263 Diluted: Weighted-average common shares outstanding - diluted EPS 291,559,993 291,193,514 Preferred shares - Series C 4,710,570 4,710,570 Weighted-average common shares outstanding - diluted FFO 296,270,563 295,904,084 (1) Additional rental revenue recognized upon a tenant exercising its purchase option in a sales-type lease.
We will record an impairment charge related to our investments, including investments in non-consolidated entities, if we determine the fair value of the investments are less than their carrying value and such impairment is other-than-temporary. We evaluate whether events or changes in circumstances indicate that the carrying amount of our investments may not be recoverable.
We will record an impairment charge related to our investments in non-consolidated entities if we determine the fair value of the investments are less than their carrying value and such impairment is other-than-temporary. We evaluate whether events or changes in circumstances indicate that the carrying amount of our investments may not be recoverable.
To the extent there is a vacancy in a property, our property owner subsidiary would be obligated for all operating expenses, including capital expenditures, real estate taxes and insurance. When a property is vacant, our property owner subsidiary may incur substantial capital expenditure and releasing costs to re-tenant the property.
To the extent there is a vacancy in a property, our property owner subsidiary would be obligated for all operating expenses, including capital expenditures, real estate taxes and insurance. When a property is vacant, our property owner subsidiary may incur substantial capital expenditure and releasing costs to re-tenant the property. Property Expansions .
We present FFO available to common shareholders and unitholders - basic and also present FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period.
We present FFO available to common shareholders - basic and also present FFO available to all equityholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period.
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.
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 2024 and 2023. Share Repurchase Program.
We expect to continue to use property specific, non-recourse mortgages in certain situations as we believe that by properly matching a debt obligation, including the balloon maturity risk, with the terms of a lease, our cash-on-cash returns increase and the exposure to residual valuation risk is reduced.
We may continue to use property specific, non-recourse mortgages in certain situations as we believe that by properly matching a debt obligation, including the balloon maturity risk, with the terms of a lease, our cash-on-cash returns increase and the exposure to residual valuation risk is reduced.
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.
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, 2024 compared with December 31, 2023.
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 define NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash income and purchase option 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.
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.
While our methodology for purchase price allocation did not change during the year ended December 31, 2024, 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, 2023 and 2022, 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, 2024 and 2023, and significant factors that could affect its prospective financial condition and results of operations.
Primarily all of our acquisitions of real estate assets and liabilities are accounted for as asset acquisitions. As such, the purchase prices of acquired tangible and intangible assets and liabilities are recorded and allocated at fair value on a relative basis.
Substantially all of our acquisitions of real estate assets and liabilities are accounted for as asset acquisitions. As such, the purchase prices of acquired tangible and intangible assets and liabilities are recorded and allocated at fair value on a relative basis.
The ability of a property owner subsidiary to make debt service payments depends upon the rental revenues of its property and its ability to refinance the mortgage related thereto, sell the related property, or access capital from us or other sources.
The ability of a property owner subsidiary to make debt service payments on its mortgage depends upon the rental revenues of its property and its ability to refinance the mortgage, sell the related property, or access capital from us or other sources.
This has allowed us to acquire certain short-term leased warehouse/distribution assets, which may be acquired with greater total return potential than long-term leased warehouse/distribution assets and allow for a value-add strategy through the lease renewal or a multi-tenanting process. Development .
This has allowed us to acquire certain short-term leased or vacant warehouse and distribution facilities, which may be acquired with greater total return potential than long-term leased warehouse and distribution facilities and allow for a value-add strategy through the lease renewal, lease up or a multi-tenanting process. Development .
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.
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.
We also present Adjusted Company FFO available to all equityholders and unitholders - diluted, which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio.
We also present Adjusted Company FFO available to all equityholders - diluted, which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio and not comparable from period to period.
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.
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. We may, from time to time, sell up to $350.0 million of common shares over the term of the ATM program.
This discussion should be read together with our accompanying consolidated financial statements included herein and notes thereto. Summary of 2023 Transactions The following summarizes certain of our transactions during 2023. Leasing Activity. • We entered into new leases and lease extensions encompassing 6.8 million square feet.
This discussion should be read together with our accompanying consolidated financial statements included herein and notes thereto. Summary of 2024 Transactions The following summarizes certain of our transactions during 2024. Leasing Activity. • We entered into new leases and lease extensions encompassing 4.5 million square feet.
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).
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 ($101.8 million at December 31, 2024), property sale proceeds or borrowing capacity on our primary credit facility ($600.0 million as of December 31, 2024, subject to covenant compliance).
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.
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.
In addition, at certain single-tenant properties that are not subject to a net lease, our property owner subsidiaries have a level of property operating expense responsibility, which may or may not be reimbursed. Multi-Tenant Properties . Primarily as a result of non-renewals at single-tenant net-lease properties, we have interests in multi-tenant properties in our consolidated portfolio.
In addition, at certain single-tenant properties that are not subject to a net lease, our property owner subsidiaries have a level of property operating expense responsibility, which may or may not be reimbursed. Multi-Tenant Properties . We have interests in a limited number of multi-tenant properties in our consolidated portfolio.
We have guaranteed such obligations for certain of our non-consolidated entities with respect to $458.6 million of such non-recourse debt.
We have guaranteed such obligations for certain of our non-consolidated entities with respect to $432.3 million of such non-recourse debt.
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 following Senior Notes were outstanding as of December 31, 2024: Issue Date Face Amount (millions) Interest Rate Maturity Date Issue Price November 2023 $ 300.0 6.750 % November 2028 99.423 % August 2020 400.0 2.700 % September 2030 99.233 % August 2021 400.0 2.375 % October 2031 99.758 % $ 1,100.0 The Senior Notes are unsecured and pay interest semi-annually in arrears.
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 .
While tenants of these properties are generally responsible for operating expenses in their spaces, our property owner subsidiaries are responsible for all expenses related to vacant space and certain non-reimbursable building expenses, at these properties. Vacant Properties .
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.
The collection and timing of tenant rents are closely monitored by management as part of our cash management program. Net cash provided by (used in) investing activities totaled $86.4 million in 2024 and $(183.5) million in 2023.
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.
The interest rate ranges from SOFR (plus a 0.10% index adjustment) plus 0.725% to 1.40%. At December 31, 2024, we had no borrowings outstanding and availability of $600.0 million, subject to covenant compliance.
The decrease in net income attributable to common shareholders of $83.4 million was primarily due to the items discussed below.
The increase in net income attributable to common shareholders of $14.2 million was primarily due to the items discussed below.
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 weighted-average cost of tenant improvements and lease commissions was $2.52 per square foot for new first-generation leases and $3.39 per square foot for second-generation new and extended leases.
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.
Most of the impairment charges in 2023 were incurred on assets due to anticipated shortened holding periods. 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.
Lease Term. We primarily acquire assets subject to intermediate and long-term leases with escalating rents, which we believe strengthen our future cash flows and provide a partial hedge against rising interest rates. We intend to maintain a weighted-average lease term longer than many comparable industrial companies and balance our lease expiration schedule.
Lease Term. We primarily acquire assets subject to intermediate and long-term leases with escalating rents, which we believe strengthen our future cash flows and provide a partial hedge against rising interest rates.
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.
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 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.
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.
Under the direct share purchase component, our current investors and new investors can make optional cash purchases of our common shares.
Under the dividend reinvestment component, common shareholders may elect to automatically reinvest their dividends to purchase our common shares. Under the direct share purchase component, our current investors and new investors can make optional cash purchases of our common shares.
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.
We believe capital recycling (1) provides cost effective and timely capital to deleverage and to support our investment activities and (2) allows us to maintain line capacity and cash in advance of our development commitments.
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 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. No common shares were repurchased during 2024 and 2023. As of December 31, 2024, 6.9 million common shares remain available for repurchase under this authorization. Financings: Corporate Borrowings .
Ground Leases . The tenants of properties in which we have an interest generally pay the rental obligations on ground leases either directly to the fee holder or to our property owner subsidiary as increased rent. However, our property owner subsidiaries are responsible for these payments (1) under certain leases without reimbursement and (2) at vacant properties. Environmental Matters.
Ground Leases . The tenants of properties in which we have an interest generally pay the rental obligations on ground leases either directly to the fee holder or to our property owner subsidiary as increased rent.
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.
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.
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%.
As of December 31, 2024, we had approximately $1.6 billion of indebtedness, consisting of mortgages and notes payable outstanding, a term loan, 6.75%, 2.375% and 2.70% Senior Notes and Trust Preferred Securities, with a weighted-average interest rate of approximately 3.7%. 42 Table of Contents We expect to pay our non-maturity debt service obligations from cash flow from operations.
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.
As of December 31, 2024 and 2023, our historical same-store square footage leased was 99.7% and 100.0%, respectively. 45 Table of Contents Below is a reconciliation of net income to same-store NOI for periods presented ($000's): Years ended December 31, 2024 2023 Net income $ 42,835 $ 35,923 Interest and amortization expense 66,477 46,389 Provision (benefit) for income taxes (127) 703 Depreciation and amortization 192,863 183,524 General and administrative 40,045 36,334 Transaction costs 498 4 Non-operating/advisory fee income (11,812) (7,819) Gains on sales of properties (39,848) (33,010) Impairment charges — 16,490 Sales-type lease income attributable to the exercise of a purchase option (14,991) — Gain on change in control of a subsidiary (209) — Debt satisfaction losses, net — 132 Equity in (earnings) losses of non-consolidated entities 3,179 (1,366) Straight-line adjustments (7,272) (9,688) Lease incentives 1,330 439 Amortization of above/below market leases (2,654) (1,796) Sales-type lease adjustments (2,364) (2,231) NOI 267,950 264,028 Less NOI: Acquisitions, expansions, development and dispositions (28,417) (35,905) Same-Store NOI $ 239,533 $ 228,123 46 Table of Contents 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, capital expenditures, lease costs, investments in non-consolidated entities.
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 and investments in held-to-maturity securities. Net cash provided by (used in) financing activities totaled $(395.0) million in 2024 and $119.0 million in 2023.
Cash 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.
Cash 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.
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.
A summary of the maturity dates and interest rates under our unsecured credit agreement, as of December 31, 2024, are as follows: Maturity Date Interest Rate $600.0 Million Revolving Credit Facility (1) July 2026 SOFR + 0.85% $300.0 Million Term Loan (2) January 2027 Term SOFR + 1.00% (1) Maturity date of the revolving credit facility can be extended to July 2027, subject to certain conditions.
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.
As of December 31, 2024, we expect to incur approximately $29.8 million of costs, excluding noncontrolling interests' share and potential developer fees or partner buyouts, to substantially fund the leasing costs for our placed-in service development projects and infrastructure work for our consolidated and non-consolidated land parcels held for development.
The increase in interest and amortization expense of $1.0 million is primarily due to a $4.4 million increase in variable interest expense related to the Trust Preferred Securities in 2023 compared to 2022. Additionally, the 2028 Senior Notes were issued in November 2023 resulting in a $2.7 million increase to interest expense.
The increase in interest and amortization expense of $20.1 million is primarily due to an $18.4 million increase in interest expense related to the 2028 Senior Notes issued in November 2023. Additionally, capitalized interest decreased $7.2 million due to less development activity in 2024.
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.
These dividends are expected to be paid from operating cash flows and/or from other sources. We paid approximately $158.2 million in cash dividends to our common and preferred shareholders in 2024. Although our property owner subsidiaries receive the majority of our base rental payments on a monthly basis, we intend to continue paying dividends quarterly.
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.
We focus our investment activity primarily on income producing single-tenant warehouse and distribution assets and build-to-suit and speculative development of warehouse and distribution assets. In 2024, we acquired or completed and placed into service $550.5 million of warehouse facilities, which is an increase of $404.1 million compared to 2023 investment activity of $146.4 million.
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.
The increase was primarily related to increased rental revenue related to additional sales-type lease income, lease extensions and placing development properties into service, partially offset by a decrease in cash flow due to property sales and increased interest expense.
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 decrease in impairment charges of $16.5 million was due to no impairment charges recognized during 2024 compared to 2023. The increase in gains on sales of properties of $6.8 million was related to the timing of property dispositions.
The amendment among other things extends the maturity of the term loan from January 31, 2025 to January 31, 2027. The Term SOFR portion of the interest rate remains swapped to obtain a current fixed rate of 2.722% per annum until January 31, 2025.
(2) The Term SOFR portion of the interest rate was swapped to obtain a fixed-rate of 2.722% per annum, until January 31, 2025 and an aggregate amount of $250.0 million of the term loan is swapped to obtain an effective fixed interest rate of 4.31% from January 31, 2025 to January 31, 2027.
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.
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. 44 Table of Contents The analysis of the results of operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 is included in our 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, on February 15, 2024.
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.
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 the entirety of the two comparable reporting periods.
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.
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. 39 Table of Contents 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.
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.
While we believe the industrial market will continue to grow, increased costs from international trade policy may cause some tenants to reevaluate expansion and growth plans. We continue to prioritize build-to-suit projects over (1) acquisitions of leased properties due to the relatively higher yield that build-to-suit projects generally provide and (2) speculative development due to the inherent leasing risk.
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.
Impairment Charges We did not incur any impairment charges during the year ended December 31, 2024. During the year ended December 31, 2023, we incurred impairment charges of $16.5 million on certain of our assets due to each asset's carrying value being below its estimated fair value.
The increase in total gross revenues of $19.3 million was primarily due to an increase of $12.8 million in base rental revenue and a $7.4 million increase in tenant reimbursement income primarily due to acquisitions, properties placed in service and increases in market rental rates, partially offset by property sales.
The increase in total gross revenues of $18.0 million was primarily due to an aggregate increase of $39.8 million in rental revenue, primarily due to an additional $15.0 million of rental revenue recognized related to a tenant exercising a purchase option in a sales-type lease, and $24.8 million from properties placed into service, acquisitions of properties and leasing, partially offset by a decrease in rental revenue of $19.7 million due to property sales.
The increase in depreciation and amortization expense of $3.0 million was primarily due to properties acquired and/or completed and placed in service subsequent to January 1, 2022.
The increase in depreciation and amortization expense of $9.3 million was primarily due to properties acquired and/or completed and placed in service. The increase in property operating expense of $2.1 million was primarily due to an increase in operating expense responsibilities at certain properties and carrying costs for vacant development facilities placed into service.
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. 53 Table of Contents Adjusted Company FFO, NOI and the other non-GAAP financial measures are not equivalent to our net income or loss as determined in accordance with GAAP, and investors should consider GAAP measures to be more relevant to evaluating our operating performance.
Adjusted Company FFO, NOI and the other non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, net income or loss as determined in accordance with GAAP.
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.
Cash provided by investing activities primarily related to net proceeds received from the disposition of real estate, realization of the net investment in a sales-type lease, distributions from non-consolidated entities, loan receivable payments and redeeming investments in held-to-maturity securities.
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.
The average fixed rent on new and extended leases was $5.89 per square foot compared to the average fixed rent on these leases before extension of $4.22 per square foot excluding tenant reimbursements as part of the expiring rent in one lease and one lease with a fixed-rate renewal.
Our target markets are experiencing low vacancy rates. In 2024, we expect to focus our development activities on build-to-suit activities and limit the amount of speculative development to markets where there is sufficient tenant demand. In 2022 and 2023, construction starts in our target markets were generally down compared to construction starts in 2020 and 2021.
Our development activities have been focused on build-to-suit projects, speculative development and purchasing newly-developed properties with vacancy. In 2025, we expect to continue to focus our development activities on build-to-suit projects and limit the amount of speculative development to markets where there is sufficient tenant demand.
Upon lease commencement or lease modification, we assess the lease classification to determine whether the lease should be classified as a direct financing, sales-type or operating lease.
These agreements meet the criteria for recognition as leases under Accounting Standards Codification (“ASC”) 842, Leases . Lease classification tests require significant estimates and judgments by management in its application. Upon lease commencement or lease modification, we assess the lease classification to determine whether the lease should be classified as a direct financing, sales-type or operating lease.
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.
In addition, we may continue to selectively recycle capital out of our target markets over time and as opportunities arise, and use the proceeds to reduce indebtedness and invest in our target markets. We do not expect capital recycling to have a material dilutive impact on earnings.
Renewals of industrial leases, particularly for warehouse/distribution facilities, are generally dependent on location and occupancy alternatives for our tenants.
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 strategy. Renewals of industrial leases, particularly for warehouse and distribution facilities, are generally dependent on location and occupancy alternatives for our tenants.
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 intend to maintain a weighted-average lease term longer than many comparable industrial companies and balance our lease expiration schedule because we favor certainty of cash flow over lease-rollover risk with single-tenant facilities. 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.
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.
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 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.
The following presents our consolidated same-store NOI, for the years ended December 31, 2024 and 2023 ($000): Years Ended December 31, 2024 2023 Total cash base rent $ 241,791 $ 230,527 Tenant reimbursements 51,178 49,351 Property operating expenses (53,436) (51,755) Same-store NOI $ 239,533 $ 228,123 Our same-store NOI increased for the year ended December 31, 2024 compared to the year ended December 31, 2023 by 5% primarily due to an increase in cash base rents.
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.
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.
We are unable to estimate the timing of any required fundings for potential development projects on these parcels. 49 Table of Contents Non-Development Capital Expenditures: General .
We are unable to estimate (1) the timing of any required fundings for such leasing costs until leases are executed and (2) the timing or amount of any additional costs related to the land parcels until we commit to such additional costs. Non-Development Capital Expenditures: General .
Included in these costs are management’s estimates for the portions of internal costs (primarily personnel costs) deemed related to such development activities. The internal costs are allocated to specific development projects based on development activities. Revenue Recognition .
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. Included in these costs are management’s estimates for the portions of internal costs (primarily personnel costs) deemed related to such development activities.
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.
As of December 31, 2024, 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. The Trust Preferred Securities bear interest at a variable rate of three-month SOFR plus a 26 basis point adjustment plus 170 basis points.
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.
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. 37 Table of Contents During the year ended December 31, 2024, we completed 4.5 million square feet of new leases, and lease extensions, raising base and cash base rents by 22.9% and 17.7%, respectively, and 46.5% and 39.7%, respectively, excluding tenant reimbursements in one lease and one lease with a fixed-rate renewal.
The increase in net income attributable to noncontrolling interest holders of $3.1 million was primarily due to the timing of property dispositions resulting in an increase in noncontrolling interest income of $4.7 million in 2023 compared to 2022.
The decrease in net (income) loss attributable to noncontrolling interest holders of $7.2 million was primarily due to noncontrolling interests' share of a gain on sale of a property of $4.7 million in 2023 and an increase in noncontrolling interests' share of operating losses related to development projects placed into service vacant in 2024.
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.
Our motivation to release vacant space requires us to meet market demands with respect to rental rates, tenant concessions and landlord responsibilities. Developers may be similarly motivated when signing leases with tenants due to the significant competition in the industrial space.
Our secured debt decreased to approximately $60.9 million at December 31, 2023 compared to $73.2 million at December 31, 2022.
As of December 31, 2024, there were $129.1 million of these securities outstanding. 41 Table of Contents Property Specific Debt . As of December 31, 2024, our secured debt decreased to approximately $55.5 million at December 31, 2024 compared to $60.9 million at December 31, 2023.
We enter into agreements with tenants that convey the right to control the use of identified space at our properties in exchange for rental revenue. These agreements meet the criteria for recognition as leases under Accounting Standards Codification (“ASC”) 842, Leases . Lease classification tests require significant estimates and judgments by management in its application.
The internal costs are allocated to specific development projects based on development activities. 38 Table of Contents Revenue Recognition . We enter into agreements with tenants that convey the right to control the use of identified space at our properties in exchange for rental revenue.
We maintain a direct share purchase plan, which has two components, (i) a dividend reinvestment component and (ii) a direct share purchase component. Under the dividend reinvestment component, common shareholders and holders of OP units may elect to automatically reinvest their dividends and distributions to purchase our common shares.
We did not issue common shares as part of an underwritten offering in 2024 and 2023. 40 Table of Contents Direct Share Purchase Plan . We maintain a direct share purchase plan, which has two components, (i) a dividend reinvestment component and (ii) a direct share purchase component.
During 2023, we disposed of our interests in one industrial property, three other properties and one land parcel for an aggregate gross price of $100.2 million. Additionally, the Office JV disposed of one property for $30.1 million of gross proceeds and repaid an aggregate of $29.4 million of non-recourse debt.
In addition, the Office JV disposed of three properties for an aggregate gross disposition price of $33.6 million and repaid an aggregate of $23.0 million of its remaining non-recourse debt, and the MFG JV disposed of one property for a gross disposition price of $41.8 million and repaid $35.5 million of non-recourse debt.
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 property owner subsidiaries do not have mortgage maturities with balloon payments due until 2031.
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 .
During the years ended December 31, 2024 and 2023, we did not sell shares under the ATM program. Underwritten Equity Offerings. We maintain a universal shelf-registration statement, which allows us to issue equity in a variety of offerings, including in an underwritten offering.
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.
The disposition proceeds and distributions received from the non-consolidated joint ventures were primarily used to (1) fund the development pipeline and (2) make investments in real property in our target markets. Liquidity Needs: Our principal liquidity needs are debt maturities, interest payment obligations, the payment of dividends to our shareholders and funding our development projects.
(2) Includes initial direct costs incurred in connection with entering into investments classified as sales-type leases and other acquisition related costs. (3) Includes strategic alternatives and costs related to shareholder activism. (4) Includes OP units other than OP units held by us. 55 Table of Contents
(2) Transaction costs including costs associated with terminated investments, such as non-refundable deposits and legal costs. (3) Includes non-recurring expenses for severance expense. (4) Includes OP units other than OP units held by us. 48 Table of Contents

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+1 added−0 removed2 unchanged
Biggest changeAs 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.
Biggest changeFor 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. Accordingly, we derive or estimate fair values using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved.
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.
The following fair value was determined using the interest rates that we believe our outstanding fixed-rate debt would warrant as of December 31, 2024 and is indicative of the interest rate environment as of December 31, 2024, and does not take into consideration the effects of subsequent interest rate fluctuations.
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.
Accordingly, we estimate that the fair value of our fixed-rate debt was $1.4 billion as of December 31, 2024. 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.
During 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.
Had the weighted-average interest rate been 100 basis points higher, our interest expense for 2024 and 2023 would have increased by $1.2 million and $1.7 million, respectively. As of December 31, 2024 and 2023, our aggregate principal consolidated fixed-rate debt was $1.5 billion and $1.7 billion, respectively, which represented 97.1% and 92.8%, respectively, of our aggregate principal indebtedness.
Accordingly, we derive or estimate fair values using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved. However, the determination of estimated cash flows may be subjective and imprecise. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values.
However, the determination of estimated cash flows may be subjective and imprecise. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values.
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.
Our consolidated aggregate principal variable-rate indebtedness not subject to interest rate swaps was $46.6 million at December 31, 2024 and $129.1 million at December 31, 2023, which represented 2.9% and 7.2%, respectively, of our aggregate principal consolidated indebtedness. During the years ended December 31, 2024 and 2023, our variable-rate indebtedness had a weighted-average interest rate of 7.2% and 6.8%, respectively.
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
As of December 31, 2024, we had 11 interest rate swap agreements in our consolidated portfolio, all of which expire from January 2025 to October 2027 (see Note 12 to our consolidated financial statements contained in this Annual Report). 49 Table of Contents
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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.

Other LXP 10-K year-over-year comparisons