EX-99.2 3 n3045_x18exh99-2.htm QUARTERLY SUPPLEMENTAL INFORMATION, FOURTH QUARTER 2022

Exhibit 99.2

TABLE OF CONTENTS
December 31, 2022

		PAGE				PAGE
SUMMARY / HIGHLIGHTS		3		TENANT DATA
					TOP 15 TENANTS	17
FINANCIAL DATA					QUARTERLY LEASING SUMMARY	18
	CONSOLIDATED BALANCE SHEETS	4			LEASE ROLLOVER SCHEDULE	19
	CONSOLIDATED STATEMENTS OF OPERATIONS	5			PROPERTY LEASES AND VACANCIES	20
	NON-GAAP FINANCIAL DATA	6
	SELECT CREDIT METRICS SUMMARY	10		DEBT
	OTHER FINANCIAL DATA	11			MORTGAGES AND NOTES PAYABLE	30
					DEBT MATURITY SCHEDULE	32
CAPITAL DEPLOYMENT / RECYCLING					DEBT COVENANTS	33
	QUARTERLY INVESTMENTS / CAPITAL RECYCLING	12
	DEVELOPMENT SUMMARY	13		COMPONENTS OF NET ASSET VALUE		34
	CAPITAL EXPENDITURES AND LEASING COSTS	14
				NON-GAAP MEASURES DEFINITIONS		35
PORTFOLIO DATA
	SAME STORE DATA	15		APPENDIX - OTHER PORTFOLIO		39
	INDUSTRIAL PORTFOLIO INFORMATION	16
				INVESTOR INFORMATION		40

This Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of LXP Industrial Trust (“LXP”), which may cause actual results, performance or achievements of LXP and its subsidiaries to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in LXP's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates, (2) the outbreak of highly infectious or contagious diseases, (3) the authorization by LXP's Board of Trustees of future dividend declarations, (4) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any legislation, (7) competition, (8) inflation, increases in real estate construction costs and construction schedule delays, (9) changes in financial markets and interest rates, (10) changes in accessibility of debt and equity capital markets, (11) future impairment charges, and (12) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, LXP undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that LXP's expectations will be realized.

See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document. All information is on a consolidated basis unless noted.

SUMMARY / HIGHLIGHTS December 31, 2022

LXP is a real estate investment trust ("REIT") focused on single-tenant industrial real estate investments. LXP has been a publicly traded REIT since 1993 (NYSE: LXP). LXP's investment strategy is focused on the acquisition and development of high quality and well-located industrial warehouse and distribution facilities.

Quarterly Highlights		Portfolio Statistics
- Net Income - $0.13 per diluted common share		# of Properties:		116
- Adjusted Company FFO - $0.17 per diluted common share		# of States:		21
- Completed 0.6 million square feet of new leases and lease extensions, raising industrial Base and Cash Base Rents by 38.1% and 42.6%, respectively		Square Footage:		54.0 million
- Industrial Same-Store NOI increased 6.7% quarter to date 2022 compared to 2021		Ongoing Development Projects:		6
- Leased approximately 100 acres of industrial development land in the Phoenix, AZ market for 20-years		Portfolio % Leased:		99.5%
- Completed construction of a warehouse/distribution facility containing 0.8 million square feet in the Greenville/Spartanburg, South Carolina market		# of Leases:		139
- Invested an aggregate of $67.6 million in development activities, including $53.3 million in six ongoing development projects		Weighted-Average Lease Term (ABR):		6.2 years
- Disposed of four properties for an aggregate gross sales price of $49.6 million		Weighted-Average Age:		9.4 years
- Net Debt to Adjusted EBITDA ratio was 6.4x at quarter end		Developable Land:(1)		537 acres

Footnote

(1) Includes consolidated and non-consolidated developable land.

3 

CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data)

		December 31, 2022				December 31, 2021
Assets:
Real estate, at cost		$	3,691,066			$	3,583,978
Real estate - intangible assets			328,607				341,403
Land held for development			84,412				104,160
Investments in real estate under construction			361,924				161,165
Real estate, gross			4,466,009				4,190,706
Less: accumulated depreciation and amortization			800,470				655,740
Real estate, net			3,665,539				3,534,966
Assets held for sale			66,434				82,586
Right-of-use assets, net			23,986				27,966
Cash and cash equivalents			54,390				190,926
Restricted cash			116				101
Investments in non-consolidated entities			58,206				74,559
Deferred expenses, net			25,207				18,861
Investment in a sales-type lease, net			61,233				—
Rent receivable - current			3,030				3,526
Rent receivable - deferred			71,392				63,283
Other assets			24,314				8,784
Total assets		$	4,053,847			$	4,005,558
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net		$	72,103			$	83,092
Term loan payable, net			298,959				298,446
Senior notes payable, net			989,295				987,931
Trust preferred securities, net			127,694				127,595
Dividends payable			38,416				37,425
Liabilities held for sale			1,150				3,468
Operating lease liabilities			25,118				29,094
Accounts payable and other liabilities			74,261				77,607
Accrued interest payable			9,181				8,481
Deferred revenue - including below market leases, net			11,452				14,474
Prepaid rent			15,215				14,717
Total liabilities			1,662,844				1,682,330
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issues and outstanding			94,016				94,016
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 291,719,310 and 283,752,726 shares issued and outstanding in 2022 and 2021, respectively			29				28
Additional paid-in-capital			3,320,087				3,252,506
Accumulated distributions in excess of net income			(1,079,087	)			(1,049,434	)
Accumulated other comprehensive income (loss)			17,689				(6,258	)
Total shareholders' equity			2,352,734				2,290,858
Noncontrolling interests			38,269				32,370
Total equity			2,391,003				2,323,228
Total liabilities and equity		$	4,053,847			$	4,005,558

4 

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data)

		Three months ending December 31,								Twelve months ending December 31,
		2022				2021				2022				2021
Gross revenues:
Rental revenue		$	79,243			$	85,374			$	313,992			$	339,944
Other revenue			1,861				1,108				7,253				4,053
Total gross revenues			81,104				86,482				321,245				343,997
Expenses applicable to revenues:
Depreciation and amortization			(45,922	)			(46,135	)			(180,567	)			(176,714	)
Property operating			(12,647	)			(13,553	)			(54,870	)			(47,314	)
General and administrative			(9,621	)			(10,763	)			(38,714	)			(35,458	)
Transaction costs			(4,121	)			(227	)			(4,177	)			(432	)
Non-operating income			582				411				935				1,364
Interest and amortization expense			(12,659	)			(11,538	)			(45,417	)			(46,708	)
Debt satisfaction losses, net			—				(672	)			(119	)			(13,894	)
Impairment charges			(580	)			(3,493	)			(3,037	)			(5,541	)
Change in allowance for credit loss			(93	)			—				(93	)			—
Gains on sales of properties			6,143				262,507				59,094				367,274
Selling profit from sales-type leases			37,745				—				47,059				—
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities			39,931				263,019				101,339				386,574
Provision for income taxes			(151	)			(307	)			(1,102	)			(1,293	)
Equity in earnings (losses) of non-consolidated entities			426				59				16,006				(190	)
Net income			40,206				262,771				116,243				385,091
Less net income attributable to noncontrolling interests			(1,733	)			(481	)			(2,460	)			(2,443	)
Net income attributable to LXP Industrial Trust shareholders			38,473				262,290				113,783				382,648
Dividends attributable to preferred shares - Series C			(1,572	)			(1,572	)			(6,290	)			(6,290	)
Allocation to participating securities			(35	)			(258	)			(186	)			(510	)
Net income attributable to common shareholders		$	36,866			$	260,460			$	107,307			$	375,848
Net income attributable to common shareholders - per common share basic		$	0.13			$	0.93			$	0.38			$	1.35
Weighted-average common shares outstanding - basic			274,928,363				281,383,061				279,887,760				277,640,835
Net income attributable to common shareholders - per common share diluted		$	0.13			$	0.90			$	0.38			$	1.34
Weighted-average common shares outstanding - diluted			276,118,668				292,782,489				282,473,458				287,369,742

5 

NON-GAAP FINANCIAL DATA  (Unaudited and in thousands, except share and per share data)

		Three months ending December 31,								Twelve months ending December 31,
		2022				2021				2022				2021
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders		$	36,866			$	260,460			$	107,307			$	375,848
Adjustments:
Depreciation and amortization			45,125				45,391				177,725				173,833
Impairment charges - real estate, including our share of non-consolidated entities			838				3,493				8,137				5,541
Noncontrolling interest - OP units			9				281				156				1,672
Amortization of leasing commissions			797				744				2,842				2,881
Joint venture and noncontrolling interest adjustment			2,527				2,026				11,112				8,370
Gain on sales of properties, including our share of non-consolidated entities			(7,759	)			(262,507	)			(83,562	)			(367,274	)
FFO available to common shareholders and unitholders - basic			78,403				49,888				223,717				200,871
Preferred dividends			1,572				1,572				6,290				6,290
Amount allocated to participating securities			35				258				186				510
FFO available to common equityholders and unitholders - diluted			80,010				51,718				230,193				207,671
Selling profit from sales-type leases(1)			(37,745	)			—				(47,059	)			—
Allowance for credit losses			93				—				93				—
Transaction costs(2)			4,121				227				4,177				432
Debt satisfaction losses, net, including our share of non-consolidated entities			1				672				1,615				13,894
Other non-recurring costs(3)			—				1,199				2,573				1,199
Noncontrolling interest adjustments			1,469				—				1,469				—
Adjusted Company FFO available to all equityholders and unitholders - diluted		$	47,949			$	53,816			$	193,061			$	223,196
Per Common Share and Unit Amounts:
Basic:
FFO		$	0.28			$	0.18			$	0.80			$	0.72
Diluted:
FFO		$	0.28			$	0.18			$	0.80			$	0.72
Adjusted Company FFO		$	0.17			$	0.18			$	0.67			$	0.78
Weighted-Average Common Shares:
Basic:
Weighted-average common shares outstanding - basic EPS			274,928,363				281,383,061				279,887,760				277,640,835
Operating partnership units (4)			835,555				897,290				853,259				1,918,845
Weighted-average common shares outstanding - basic FFO			275,763,918				282,280,351				280,741,019				279,559,680
Diluted:
Weighted-average common shares outstanding - diluted EPS			276,118,668				292,782,489				282,473,458				287,369,742
Unvested share-based payments awards			—				70,114				17,381				44,261
Preferred shares - Series C			4,710,570				—				4,710,570				—
Weighted-average common shares outstanding - diluted FFO			280,829,238				292,852,603				287,201,409				287,414,003

(1) Aggregate gains recognized upon entering into a sales-type lease and exercises of tenant's purchase options in leases.

(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.

6 

NON-GAAP FINANCIAL DATA (CONTINUED) (Unaudited and in thousands)

		Three months ending December 31,								Twelve months ending December 31,
		2022				2021				2022				2021
Adjusted Company FFO available to all equityholders and unitholders - diluted		$	47,949			$	53,816			$	193,061			$	223,196
FUNDS AVAILABLE FOR DISTRIBUTION
Adjustments:
Straight-line adjustments			(2,519	)			(4,178	)			(11,412	)			(12,324	)
Lease incentives			127				175				518				780
Amortization of above/below market leases			(449	)			(340	)			(1,865	)			(1,551	)
Lease termination payments, net			—				(330	)			—				551
Sales-type lease non-cash income			(342	)			—				(342	)			—
Non-cash interest			819				825				3,278				3,300
Non-cash charges, net			1,846				1,796				7,483				7,137
Capitalized interest and internal costs			(2,549	)			(850	)			(8,014	)			(2,974	)
Second generation tenant improvements			(78	)			(4,214	)			(5,094	)			(8,392	)
Second generation lease costs			(475	)			(1,810	)			(2,613	)			(7,151	)
Joint venture and non-controlling interests adjustment			(103	)			(194	)			(211	)			(375	)
Company Funds Available for Distribution		$	44,226			$	44,696			$	174,789			$	202,197

7 

NON-GAAP FINANCIAL DATA (CONTINUED) ($000)

Net Operating Income ("NOI"):		Three months ending December 31,								Twelve months ending December 31,
		2022				2021				2022				2021
Net income		$	40,206			$	262,771			$	116,243			$	385,091
Interest and amortization expense			12,659				11,538				45,417				46,708
Provision for income taxes			151				307				1,102				1,293
Depreciation and amortization			45,922				46,135				180,567				176,714
General and administrative			9,621				10,763				38,714				35,458
Transaction costs			4,121				227				4,177				432
Non-operating/advisory fee income			(1,934	)			(1,163	)			(6,550	)			(4,402	)
Gains on sales of properties			(6,143	)			(262,507	)			(59,094	)			(367,274	)
Impairment charges			580				3,493				3,037				5,541
Selling profit from sales-type leases			(37,745	)			—				(47,059	)			—
Equity in (earnings) losses of non-consolidated entities			(426	)			(59	)			(16,006	)			190
Debt satisfaction losses, net			—				672				119				13,894
Lease termination income, net			—				(1,185	)			(238	)			(14,972	)
Straight-line adjustments			(2,519	)			(4,178	)			(11,412	)			(12,324	)
Lease incentives			127				175				518				780
Amortization of above/below market leases			(449	)			(340	)			(1,865	)			(1,551	)
Sales-type lease adjustments			(249	)			—				(249	)			—
NOI			63,922				66,649				247,421				265,578
Less NOI:
Acquisitions, development and dispositions			(8,406	)			(14,120	)			(44,162	)			(71,618	)
Same-Store NOI		$	55,516			$	52,529			$	203,259			$	193,960

8 

NON-GAAP FINANCIAL DATA (CONTINUED) ($000)

Adjusted EBITDA:		Twelve months ended
		12/31/2022
Net income attributable to
LXP Industrial Trust shareholders		$	113,783
Interest and amortization expense			45,417
Provision for income taxes			1,102
Depreciation and amortization			180,567
Straight-line adjustments			(11,412	)
Sales-type lease non-cash income			(342	)
Lease incentives			518
Amortization of above/below market leases			(1,865	)
Gains on sales of properties			(59,094	)
Impairment charges			3,037
Debt satisfaction losses, net			119
Selling profit from sales-type leases			(47,059	)
Sales-type lease adjustments			4,212
Non-cash charges, net			7,483
Non-recurring strategic alternatives and activism costs			2,573
Pro-rata share adjustments:
Non-consolidated entities adjustment			(325	)
Noncontrolling interests adjustment			1,591
Adjusted EBITDA		$	240,305

9 

SELECT CREDIT METRICS SUMMARY ⁽¹⁾

		12/31/2019		12/31/2020		12/31/2021		12/31/2022
Adjusted Company FFO Payout Ratio		51.6%		55.6%		56.7%		72.4%
Unencumbered Assets		$3.3 billion		$3.8 billion		$4.2 billion		$4.5 billion
Unencumbered NOI		84.1%		89.3%		92.6%		93.4%
(Debt + Preferred) / Gross Assets		34.5%		32.5%		33.4%		32.1%
Debt/Gross Assets		32.1%		30.4%		31.4%		30.1%
Secured Debt / Gross Assets		9.6%		3.1%		1.7%		1.5%
Unsecured Debt / Unencumbered Assets		28.2%		32.1%		33.5%		31.3%
Net Debt / Adjusted EBITDA (2)		4.9x		4.8x		5.5x		6.4x
(Net Debt + Preferred) / Adjusted EBITDA (2)		5.3x		5.1x		5.8x		6.9x
Credit Facilities Availability (3)		$600.0 million		$600.0 million		$600.0 million		$600.0 million

Footnotes

(1) LXP believes these credit metrics provide investors with additional information to evaluate its liquidity and performance.

(2) Includes prorata share of non-consolidated assets. Adjusted EBITDA is for the last 12 months.

(3) Subject to covenant compliance.

10 

OTHER FINANCIAL DATA
12/31/2022 ($000)

Rent Estimates for Current Assets

Year			Base Rent  (1)				Cash Base Rent (1)				Difference
2023			$	275,360			$	267,047			$	(8,313	)
2024				246,889				243,797				(3,092	)

Balance Sheet
Other assets		$	24,314
The components of other assets are:
Deposits		$	2,329
Equipment			301
Prepaids			918
Note receivable			1,470
Other receivables			425
Deferred lease incentives			2,535
Derivative asset			16,318
Deferred asset			18
Accounts payable and other liabilities		$	74,261
The components of accounts payable and other liabilities are:
Accounts payable and accrued expenses		$	25,078
Development, CIP and other accruals			42,962
Taxes			421
Deferred lease costs			1,989
Deposits			3,784
Transaction costs			27

Footnote

(1) Amounts assume (i) lease terms for non-cancellable periods only, (ii) no new or renegotiated leases are entered into after 12/31/2022, and (iii) no properties are sold or acquired after 12/31/2022.

11 

QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY
12/31/2022

		STABILIZED DEVELOPMENT
		Property Type		Market							Square Feet				Initial Cost Basis ($000)			Month Stabilized				Primary Lease Expiration				Percent Leased at Completion
Consolidated
1		Industrial (1)			Greenville/Spartanburg			SC				797,936			$	64,067			December				04	/2035			100	%
1		TOTAL STABILIZED DEVELOPMENT										797,936			$	64,067

CAPITAL RECYCLING
		Location					Property Type		Gross Disposition Price ($000)				Annualized Net Income ($000) (2)				Annualized NOI ($000)(2)				Month of Disposition			% Leased			Gross Disposition Price PSF
Consolidated
1		Kalamazoo		MI			Other		$	1,175			$	(968	)		$	(948	)		October			35	%		$	7.78
2		Henderson(3)		NC			Industrial			6,841				279				497			December			100	%			46.40
3		Phoenix		AZ			Other			5,250				507				629			December			56	%			37.79
4		Romulus		MI			Industrial			36,378				594				2,484			December			100	%			72.75
4		TOTAL CONSOLIDATED PROPERTY DISPOSITIONS							$	49,644			$	412			$	2,662
Non - Consolidated (4)
1		Parachute		CO			Office		$	16,718			$	839			$	1,265			October			100	%		$	341.03
2		Houston		TX			Office			13,368				483				1,064			December			87	%			169.44
3		Schaumburg		IL			Office			7,200				3,126				4,947			December			0	%			22.70
3		TOTAL NON-CONSOLIDATED PROPERTY DISPOSITIONS							$	37,286			$	4,448			$	7,276

Footnotes

(1)	Substantially completed and placed into service development project. LXP owns 90%. Initial cost basis excludes $3.0 million of lease commissions and certain remaining costs, including developer partner promote, if any. LXP funded an aggregate of $60.1 million as of December 31, 2022 for this project.
(2)	Generally, quarterly period prior to sale annualized.
(3)	Tenant exercised fixed-rate purchase option in the lease.
(4)	LXP owns 20%. The joint venture satisfied $36.3 million of non-recourse debt in connection with the sales.

12 

DEVELOPMENT SUMMARY 12/31/2022

ONGOING:

		Project (% owned)		# of Buildings			Market		Estimated Sq. Ft.				Estimated Project Project Cost ($000)(1)				GAAP Investment Balance as of 12/31/22 ($000)				LXP Amount Funded as of 12/31/22 ($000)(2)				Actual/Estimated Building Completion Date		% Leased as of 12/31/22
Consolidated
1		The Cubes at Etna East (95%)(3)		1			Columbus, OH			1,074,840			$	72,850			$	61,171			$	58,455			3Q 2022		0%
2		Ocala (80%)		1			Central Florida			1,085,280				83,100				73,737				63,388			1Q 2023		0%
3		Mt. Comfort (80%)		1			Indianapolis, IN			1,053,360				65,500				59,379				49,848			1Q 2023		0%
4		South Shore (100%)		2			Central Florida			270,885				40,500				25,782				13,553			2Q 2023		0%
5		Cotton 303 (93%)(4)		2			Phoenix, AZ			880,678				84,200				64,682				56,570			1Q 2023 - 2Q 2023		45%
6		Smith Farms (90%)(5)		2			Greenville/Spartanburg, SC			1,396,884				101,550				77,173				67,780			1Q 2023 - 2Q 2023		0%
6		Total Consolidated Development Projects											$	447,700			$	361,924			$	309,594

LAND HELD FOR DEVELOPMENT:

		Project (% owned)		Market		Approx. Developable Acres				GAAP Investment Balance as of 12/31/2022 ($000)				LXP Amount Funded as of 12/31/2022 ($000)(2)
Consolidated
1		Reems & Olive (95.5%)(6)		Phoenix, AZ			320			$	77,379			$	73,957
2		Mt. Comfort Phase II (80%)		Indianapolis, IN			116				5,301				4,213
3		ATL Fairburn (100%)		Atlanta, GA			14				1,732				1,736
3		Total Consolidated Land Projects					450			$	84,412			$	79,906

		Project (% owned)		# of Buildings		Market		Approx. Developable Acres				GAAP Investment Balance as of 12/31/2022 ($000)				LXP Amount Funded as of 12/31/2022 ($000)(2)
Non - Consolidated
1		ETNA Park 70 (90%)		TBD		Columbus, OH			66			$	12,975			$	13,599
2		ETNA Park 70 East (90%)		TBD		Columbus, OH			21				2,126				2,363
2		Total Non-Consolidated Land Projects							87			$	15,101			$	15,962

Footnotes

(1)	Estimated project cost includes estimated tenant improvements and lease costs and excludes potential developer partner promote, if any.
(2)	Excludes noncontrolling interests' share.
(3)	Base building achieved substantial completion. Property not in service as of December 31, 2022.
(4)	Pre-leased 392,278 square foot facility subject to a 10-year lease commencing upon substantial completion of the facility and notice to the tenant.
(5)	In December 2022, substantially completed and placed into service a 797,936 square foot facility subject to a 12-year lease that commenced upon substantial completion of the facility. Remaining two projects ongoing.
(6)	Ground leased approximately 100 acres of the original 420 acre developable land parcel located in the Phoenix, AZ market.

13 

CAPITAL EXPENDITURES AND LEASING COSTS ⁽¹⁾ 12/31/2022 ($000) 

		Twelve months ending December 31,
		2022				2021
First Generation Costs
Tenant Improvements		$	5,756			$	—
Leasing Costs			2,543				1,022
Base Building			2,558				738
Total First Generation Costs		$	10,857			$	1,760
Second Generation Costs
Tenant Improvements
Industrial		$	5,094			$	7,109
Other			—				1,283
Total Second Generation Tenant Improvements		$	5,094			$	8,392
Leasing Costs
Industrial		$	2,490			$	6,414
Other			123				737
Total Second Generation Leasing Costs		$	2,613			$	7,151
Building Improvements
Industrial		$	18,631			$	5,073
Other			—				1,004
Total Second Generation Building Improvements		$	18,631			$	6,077
Total Second Generation Costs		$	26,338			$	21,620
Total Capital Expenditures and Leasing Costs		$	37,195			$	23,380

Footnote

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

14 

SAME STORE DATA 12/31/2022 ($000) 

Same-Store NOI										Same-Store NOI by Components
		Consolidated								Industrial								Other
		Three months ended December 31,								Three months ended December 31,								Three months ended December 31,
QUARTER		2022				2021				2022				2021				2022				2021
Total Cash Base Rent		$	56,179			$	53,483			$	50,747			$	47,993			$	5,432			$	5490
Tenant Reimbursements			9,873				10,445				8,142				8,958				1,731				1,487
Property Operating Expenses			(10,536	)			(11,399	)			(8,469	)			(9,695	)			(2,067	)			(1,704	)
Same-Store NOI		$	55,516			$	52,529			$	50,420			$	47,256			$	5,096			$	5,273
Change in Same-Store NOI			5.7	%							6.7	%							-3.4	%
Same-Store # of Properties			97				97				90				90				7				7
Same-Store Percent Leased(1)			99.8	%			99.8	%			99.8	%			99.7	%			99.4	%			100.0	%

		Consolidated								Industrial								Other
		Twelve months ended December 31,								Twelve months ended December 31,								Twelve months ended December 31,
YEAR TO DATE		2022				2021				2022				2021				2022				2021
Total Cash Base Rent		$	207,087			$	197,684			$	185,688			$	176,537			$	21,399			$	21,147
Tenant Reimbursements			35,221				33,186				29,095				27,901				6,126				5,285
Property Operating Expenses			(39,049	)			(36,910	)			(31,519	)			(30,472	)			(7,530	)			(6,438	)
Same-Store NOI		$	203,259			$	193,960			$	183,264			$	173,966			$	19,995			$	19,994
Change in Same-Store NOI			4.8	%							5.3	%							0.0	%
Same-Store # of Properties			85				85				78				78				7				7
Same-Store Percent Leased(1)			99.8	%			99.7	%			99.8	%			99.7	%			99.4	%			100.0	%

Footnotes

(1) At 12/31/2022.

15 

INDUSTRIAL PORTFOLIO INFORMATION 12/31/2022

Markets (1)		ABR % as of 12/31/2022
Phoenix, AZ			11.1	%
Greenville/Spartanburg, SC			9.5	%
Atlanta, GA			8.7	%
Memphis, TN			8.0	%
Houston, TX			5.9	%
Cincinnati/Dayton, OH			5.7	%
Indianapolis, IN			5.6	%
Dallas/Ft. Worth, TX			5.5	%
Nashville, TN			3.8	%
Chicago, IL			3.5	%
Central Florida			3.2	%
Columbus, OH			3.1	%
Savannah, GA			2.7	%
Jackson, MS			2.6	%
St. Louis, MO			2.3	%
DC/Baltimore, MD			2.3	%
Charlotte, NC			2.2	%
New York/New Jersey			2.1	%
Cleveland, OH			2.0	%
Champaign-Urbana, IL			1.6	%
Total Industrial Portfolio Concentration (2)			91.2	%

Industries		ABR % as of 12/31/2022
Consumer Products			23.3	%
Transportation/Logistics			20.0	%
E-Commerce			14.9	%
Automotive			12.9	%
Food			9.7	%
Construction/Materials			9.3	%
Apparel			2.3	%
Technology			2.2	%
Retail Department			2.2	%
Specialty			1.8	%
Total Industrial Portfolio Concentration (2)			98.6	%

Additional Information
# of Properties			109
Square Feet			52,544,497
% Investment Grade (3)			56.5	%
% of ABR(4)			92.0	%
% Leased			99.5	%
Weighted-Average Age (Years)(5)			8.8
Weighted-Average ABR per SF(6)		$	4.47
Weighted-Average Lease Term (Years)(7)			6.5
% with Fixed Escalation(8)			95.7	%
Average Annual Rent Escalation(8)			2.5	%
Average Building Size (SF)			491,070
Average Clear Height (Feet)(9)			32.8
% Top 25 Markets(10)			76.9	%
% Top 50 Markets(10)			91.9	%
Mortgage Debt ($000)		$	65,981

Footnotes

(1) Based on CoStar.com inventory data.

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

(3) Percent of ABR. Credit ratings based upon either tenant, guarantor or parent/ultimate parent.

(4) Based on ABR for consolidated properties owned.

(5) Weighting based on square footage, excluding land parcels.

(6) Excludes land assets and all vacant square footage.

(7) Weighting based on ABR.

(8) Based on ABR for single-tenant leases owned (properties 50% leased to a single tenant). Average Annual Rent Escalation based on next rent step percentages.

(9) Based on internal and external sources.

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

16 

TOP 15 TENANTS 12/31/2022

Tenants (1)		Property Type		Lease Expirations				Number of Leases				Sq. Ft. Leased				Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3)				ABR as of 12/31/2022 ($000)				ABR % as of 12/31/2022 ($000) (2)(4)
Amazon		Industrial			2026-2033				6				3,864,731				7.2	%		$	18,241				6.8	%
Nissan		Industrial			2027				2				2,971,000				5.5	%			12,908				4.8	%
Kellogg		Industrial			2027-2029				3				2,801,916				5.2	%			9,575				3.6	%
Wal-Mart		Industrial			2024-2031				3				2,351,917				4.4	%			8,773				3.3	%
GXO Logistics		Industrial			2024-2028				3				1,697,475				3.2	%			7,386				2.7	%
Xerox		Office			2023				1				202,000				0.4	%			7,070				2.6	%
Watco		Industrial			2038				1				132,449				0.2	%			6,318				2.4	%
Morgan Lewis (5)		Office			2024				1				289,432				0.5	%			5,860				2.2	%
Fedex		Industrial			2028				2				292,021				0.5	%			5,728				2.1	%
Mars Wrigley		Industrial			2025				1				604,852				1.1	%			5,396				2.0	%
Aligned Data Centers (6)		Industrial			2042				1				—				0.0	%			5,228				1.9	%
Undisclosed (7)		Industrial			2034				1				1,318,680				2.5	%			5,198				1.9	%
Olam		Industrial			2024 & 2037				2				1,196,614				2.2	%			4,993				1.9	%
Georgia-Pacific		Industrial			2028 & 2031				2				1,283,102				2.4	%			4,868				1.8	%
Owens Corning		Industrial			2025-2027				3				863,242				1.6	%			4,860				1.8	%
									32				19,869,431				37.0	%		$	112,402				41.8	%

Footnotes 

(1) Tenant, guarantor or parent.

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

(3) Excludes vacant square feet.

(4) Based on ABR for consolidated properties owned.

(5) Includes parking operations.

(6) Industrial development leased land, which is included in industrial portfolio.

(7) Lease restricts certain disclosures.

17 

QUARTERLY LEASING SUMMARY  12/31/2022 

			NEW LEASES - FIRST GENERATION(1)
			Location						Lease Expiration Date		Sq. Ft.				New Base Rent Per Annum ($000)(2)				New Cash Base Rent Per Annum ($000)(2)
			Industrial
	1		Greer	SC					12 /2027			81,058			$	531			$	507
	1		TOTAL NEW LEASES - FIRST GENERATION									81,058			$	531			$	507

			SECOND GENERATION
			Location				Prior Term		Lease Expiration Date		Sq. Ft.				New Base Rent Per Annum ($000)(2)			Prior Base Rent Per Annum ($000)(3)				New Cash Base Rent Per Annum ($000)(2)				Prior Cash Base Rent Per Annum ($000)(3)
			LEASE EXTENSIONS
			Industrial
	1		Dallas		TX		08 /2023		09 /2026			510,400			$	2,365		$	1,713			$	2,526			$	1,771
	1		TOTAL EXTENDED LEASES - INDUSTRIAL - SECOND GENERATION									510,400			$	2,365		$	1,713			$	2,526			$	1,771
			INDUSTRIAL DEVELOPMENT LEASED LAND
			Location						Lease Expiration Date			Approx. Acres				New Base Rent Per Annum ($000)(2)							New Cash Base Rent Per Annum ($000)(2)
	1		Glendale(4)		AZ				11 /2042			100			$	7,427						$	5,228
	1		TOTAL INDUSTRIAL DEVELOPMENT LEASED LAND									100			$	7,427						$	5,228

Footnotes 

(1) No prior lease, acquisition vacancy.

(2) Assumes 12 months rent from the later of 1/1/2023 or lease commencement/extension, excluding free rent periods as applicable.

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

(4) Leased approximately 100 acres of the original 420 acre developable land parcel located in the Phoenix, AZ market, subject to a 20-year ground lease (with three, 10-year extension options) commenced November 2022. The initial annual rent payments are $5.2 million and escalate by 4% annually.

18 

LEASE ROLLOVER SCHEDULE - INDUSTRIAL  12/31/2022 ($000)

Year				Number of Leases Expiring				ABR as of 12/31/2022				Percent of ABR as of 12/31/2022				Percent of ABR as of 12/31/2021(2)
	2023				2			$	3,419				1.4	%			4.2	%
	2024				21				26,533				10.7	%			11.5	%
	2025				13				17,784				7.2	%			7.0	%
	2026				24				29,917				12.1	%			12.2	%
	2027				15				37,026				15.0	%			13.9	%
	2028				7				15,335				6.2	%			6.4	%
	2029				10				23,063				9.3	%			9.3	%
	2030				9				26,104				10.6	%			11.2	%
	2031				11				18,958				7.7	%			7.1	%
	2032				3				5,232				2.1	%			3.6	%
	Thereafter				14				43,799				17.7	%			12.9	%
	Total (1)				129			$	247,170				100.0	%

Footnotes 

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

(2) 12/31/2021 is restated based on ABR.

19 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		Annualized Base Rent as of 12/31/2022 ($000)		Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
INDUSTRIAL PROPERTIES
SINGLE TENANT
			WAREHOUSE/DISTRIBUTION
	2023		8/31/2023		Houston, TX		10535 Red Bluff Rd.		Pasadena		TX		—		257,835		1,231		1,294
			10/31/2023		Atlanta, GA		493 Westridge Pkwy.		McDonough		GA		—		676,000		2,031		2,125
	2024		1/31/2024		Greenville/Spartanburg, SC		70 Tyger River Dr.		Duncan		SC		—		408,000		2,001		2,035
					Indianapolis, IN		1285 W. State Road 32		Lebanon		IN		15		741,880		2,281		2,530
					Memphis, TN		6495 Polk Ln.		Olive Branch		MS		—		118,211		495		515
			3/31/2024		Cleveland, TN		1520 Lauderdale Memorial Hwy.		Cleveland		TN		—		851,370		2,658		2,758
					Indianapolis, IN		4600 Albert S White Dr.		Whitestown		IN		—		53,240		264		298
					Columbus, OH		2155 Rohr Rd.		Lockbourne		OH		—		320,190		1,800		1,801
			4/30/2024		Memphis, TN		11555 Silo Dr.		Olive Branch		MS		—		927,742		2,855		2,993
					Nashville, TN		6050 Dana Way		Antioch		TN		—		11,238		146		146
			5/31/2024		Atlanta, GA		7225 Goodson Rd.		Union City		GA		—		370,000		1,442		1,476
			6/30/2024		Cincinnati/Dayton, OH		575-599 Gateway Blvd.		Monroe		OH		—		194,936		1,024		1,003
			7/31/2024		Greenville/Spartanburg, SC		5795 North Blackstock Rd.		Spartanburg		SC		—		341,660		1,672		1,688
					Greenville/Spartanburg, SC		231 Apple Valley Rd.		Duncan		SC		—		75,320		360		360
			8/31/2024		Houston, TX		9701 New Decade Dr.		Pasadena		TX		—		102,863		530		551
					Atlanta, GA		41 Busch Dr.		Cartersville		GA		—		119,295		596		596
			9/30/2024		Memphis, TN		3820 Micro Dr.		Millington		TN		—		701,819		1,985		2,014
			10/31/2024		Dallas/Ft. Worth, TX		2115 East Belt Line Rd.		Carrollton		TX		—		58,202		228		254
					Dallas/Ft. Worth, TX		17505 Interstate Hwy. 35W		Northlake		TX		—		500,556		2,269		2,293
			11/30/2024		DC/Baltimore, MD		150 Mercury Way		Winchester		VA		—		324,535		1,716		1,738
			12/31/2024		Indianapolis, IN		4600 Albert S White Dr.		Whitestown		IN		—		95,832		469		444
					Chicago, IL		3686 South Central Ave.		Rockford		IL		—		93,000		395		395
					Chicago, IL		749 Southrock Dr.		Rockford		IL		—		150,000		638		645
	2025		3/31/2025		Atlanta, GA		95 International Pkwy.		Adairsville		GA		—		124,251		653		652

20 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		Annualized Base Rent as of 12/31/2022 ($000)		Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
INDUSTRIAL PROPERTIES
			WAREHOUSE/DISTRIBUTION
	2025		4/30/2025		Houston, TX		10565 Red Bluff Rd.		Pasadena		TX		—		248,240		1,237		1,234
			5/31/2025		Atlanta, GA		7875 White Rd. SW		Austell		GA		—		604,852		5,323		5,396
			6/30/2025		Savannah, GA		1319 Dean Forest Rd.		Savannah		GA		—		355,527		1,818		1,819
			7/31/2025		Indianapolis, IN		5352 Performance Way		Whitestown		IN		—		380,000		1,278		1,315
					Cleveland, OH		7005 Cochran Rd.		Glenwillow		OH		—		458,000		2,061		2,164
			8/31/2025		Indianapolis, IN		4900 Albert S White Dr.		Whitestown		IN		—		85,232		436		434
					Savannah, GA		1315 Dean Forest Rd.		Savannah		GA		—		88,503		525		540
			9/30/2025		Greenville/Spartanburg, SC		7870 Reidville Rd.		Greer		SC		—		396,073		1,666		1,691
					Atlanta, GA		95 International Pkwy.		Adairsville		GA		—		100,960		515		515
					Nashville, TN		6050 Dana Way		Antioch		TN		—		117,600		410		435
			12/31/2025		Phoenix, AZ		4445 N. 169th Ave.		Goodyear		AZ		—		160,140		1,007		984
					Minneapolis/St Paul, MN		1700 47th Ave. North		Minneapolis		MN		—		18,620		605		605
	2026		1/31/2026		Greenville/Spartanburg, SC		231 Apple Valley Rd.		Duncan		SC		—		120,680		598		615
			2/28/2026		Central Florida		3102 Queen Palm Dr.		Tampa		FL		—		229,605		1,693		1,230
			3/31/2026		Central Florida		2455 Premier Row		Orlando		FL		—		205,016		786		508
					Lewisburg, TN		633 Garrett Pkwy.		Lewisburg		TN		—		310,000		1,287		1,314
			4/30/2026		Phoenix, AZ		16811 W. Commerce Dr.		Goodyear		AZ		—		540,349		2,444		2,398
			6/30/2026		Greenville/Spartanburg, SC		425 Apple Valley Rd.		Duncan		SC		—		163,680		752		748
					Columbus, OH		351 Chamber Dr.		Chillicothe		OH		—		136,495		607		607
			7/31/2026		Columbus, OH		1860 Walcutt Rd.		Columbus		OH		—		97,934		501		480
					Savannah, GA		1004 Trade Center Pkwy.		Savannah		GA		—		270,252		1,433		1,403
			8/31/2026		Savannah, GA		1004 Trade Center Pkwy.		Savannah		GA		—		149,415		821		816
			9/30/2026		Greenville/Spartanburg, SC		425 Apple Valley Rd.		Duncan		SC		—		163,680		669		705
					St. Louis, MO		3931 Lakeview Corporate Dr.		Edwardsville		IL		—		769,500		2,696		2,735
					Nashville, TN		6050 Dana Way		Antioch		TN		—		67,200		394		393

21 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		Annualized Base Rent as of 12/31/2022 ($000)		Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
INDUSTRIAL PROPERTIES
			WAREHOUSE/DISTRIBUTION
	2026		9/30/2026		Phoenix, AZ		9494 W. Buckeye Rd.		Tolleson		AZ		—		186,336		1,109		1,108
					Dallas/Ft. Worth, TX		3737 Duncanville Rd.		Dallas		TX		—		510,400		2,365		1,768
			10/31/2026		Greenville/Spartanburg, SC		235 Apple Valley Rd.		Duncan		SC		—		177,320		962		943
					Charlotte, NC		2203 Sherrill Dr.		Statesville		NC		—		639,800		2,796		2,768
					Cleveland, OH		10345 Philipp Pkwy.		Streetsboro		OH		—		649,250		2,883		2,890
			11/30/2026		Erwin, NY		736 Addison Rd.		Erwin		NY		—		408,000		1,549		1,556
					Philadelphia, PA		250 Rittenhouse Cir.		Bristol		PA		—		241,977		1,146		1,277
			12/31/2026		Houston, TX		4600 Underwood Rd.		Deer Park		TX		—		402,648		1,507		1,727
					Indianapolis, IN		180 Bob Glidden Blvd.		Whiteland		IN		—		179,530		787		781
					Indianapolis, IN		76 Bob Glidden Blvd.		Whiteland		IN		—		168,480		787		751
	2027		1/31/2027		Kansas City, MO		27200 West 157th St.		New Century		KS		—		446,500		1,240		1,158
			2/28/2027		Central Florida		5275 Drane Field Rd.		Lakeland		FL		—		68,420		388		390
					Jackson, MS		554 Nissan Pkwy.		Canton		MS		—		1,466,000		6,200		6,328
			3/31/2027		Greenville/Spartanburg, SC		417 Apple Valley Rd.		Duncan		SC		—		195,000		1,052		1,024
			4/30/2027		Nashville, TN		200 Sam Griffin Rd.		Smyrna		TN		—		1,505,000		6,560		6,580
					San Antonio, TX		16407 Applewhite Rd.		San Antonio		TX		—		849,275		2,994		3,015
			7/31/2027		Savannah, GA		335 Morgan Lakes Industrial Blvd.		Pooler		GA		—		499,500		2,080		2,048
			8/31/2027		Cincinnati/Dayton, OH		600 Gateway Blvd.		Monroe		OH		—		994,013		3,945		3,457
					Columbus, OH		200 Arrowhead Dr.		Hebron		OH		—		400,522		1,449		1,422
			9/30/2027		Central Florida		3775 Fancy Farms Rd.		Plant City		FL		16		330,176		2,068		1,865
					Memphis, TN		1550 Hwy 302		Byhalia		MS		—		615,600		2,439		2,518
			10/31/2027		Central Florida		5275 Drane Field Rd.		Lakeland		FL		—		36,274		266		254
					Jackson, TN		201 James Lawrence Rd.		Jackson		TN		—		1,062,055		3,944		3,973
			12/31/2027		Phoenix, AZ		1515 South 91st Ave.		Phoenix		AZ		—		334,222		2,572		2,487
	2028		1/31/2028		Atlanta, GA		490 Westridge Pkwy.		McDonough		GA		—		1,121,120		3,737		3,731

22 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		Annualized Base Rent as of 12/31/2022 ($000)		Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
INDUSTRIAL PROPERTIES
			WAREHOUSE/DISTRIBUTION
	2028		3/31/2028		New York/New Jersey		29-01 Borden Ave./29-10 Hunters Point Ave.		Long Island City		NY		—		140,330		5,135		5,128
			5/31/2028		Memphis, TN		6495 Polk Ln.		Olive Branch		MS		—		151,691		759		600
					Nashville, TN		6050 Dana Way		Antioch		TN		—		50,400		309		297
			8/31/2028		Houston, TX		4100 Malone Dr.		Pasadena		TX		—		233,190		1,359		1,298
					Indianapolis, IN		4900 Albert S White Dr.		Whitestown		IN		—		63,840		309		308
			10/31/2028		Atlanta, GA		1625 Oakley Industrial Blvd.		Fairburn		GA		—		907,675		4,223		3,973
	2029		4/30/2029		Greenville/Spartanburg, SC		230 Apple Valley Rd.		Duncan		SC		—		275,400		1,420		1,349
			6/30/2029		Memphis, TN		11624 S. Distribution Cv.		Olive Branch		MS		—		1,170,218		4,101		3,872
			7/31/2029		Memphis, TN		8500 Nail Rd.		Olive Branch		MS		—		716,080		2,751		2,750
			8/31/2029		Dallas/Ft. Worth, TX		8601 E. Sam Lee Ln.		Northlake		TX		—		1,214,526		4,278		4,129
			9/30/2029		Indianapolis, IN		1621 Veterans Memorial Pkwy. E.		Lafayette		IN		—		309,400		1,427		1,241
					Chicago, IL		6225 E. Minooka Rd.		Minooka		IL		—		1,034,200		2,931		2,835
			11/21/2029		Columbus, OH		1860 Walcutt Rd.		Columbus		OH		—		194,796		983		931
			11/30/2029		Chicago, IL		1460 Cargo Court		Minooka		IL		—		705,661		2,857		2,767
			12/31/2029		Greenville/Spartanburg, SC		402 Apple Valley Rd.		Duncan		SC		—		235,600		1,263		1,185
					Chicago, IL		200 International Pkwy. S.		Minooka		IL		—		473,280		2,138		2,004
	2030		1/31/2030		Dallas/Ft. Worth, TX		3201 N. Houston School Rd.		Lancaster		TX		—		468,300		1,669		1,588
			3/31/2030		Memphis, TN		549 Wingo Rd.		Byhalia		MS		—		855,878		4,388		4,454
			5/31/2030		St. Louis, MO		4015 Lakeview Corporate Dr.		Edwardsville		IL		—		1,017,780		3,460		2,979
			6/30/2030		Richmond, VA		2601 Bermuda Hundred Rd.		Chester		VA		3		1,034,470		3,851		4,010
					Cincinnati/Dayton, OH		700 Gateway  Blvd.		Monroe		OH		—		1,299,492		5,515		5,282
					Dallas/Ft. Worth, TX		1704 S. I-45		Hutchins		TX		—		120,960		617		588
			8/31/2030		Central Florida		3400 NW 35th St.		Ocala		FL		—		617,055		3,014		2,857
			9/30/2030		Phoenix, AZ		255 143rd Ave.		Goodyear		AZ		—		801,424		4,193		4,017
	2031		2/28/2031		Greenville/Spartanburg, SC		1021 Tyger Lake Rd.		Spartanburg		SC		—		213,200		1,043		987

23 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		Annualized Base Rent as of 12/31/2022 ($000)		Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
INDUSTRIAL PROPERTIES
			WAREHOUSE/DISTRIBUTION
	2031		3/31/2031		Indianapolis, IN		19 Bob Glidden Blvd.		Whiteland		IN		—		530,400		2,190		2,042
			5/31/2031		DC/Baltimore, MD		291 Park Center Dr.		Winchester		VA		—		344,700		1,726		1,625
			6/30/2031		Nashville, TN		6050 Dana Way		Antioch		TN		—		352,275		1,543		1,435
			7/31/2031		Atlanta, GA		51 Busch Dr.		Cartersville		GA		—		328,000		1,646		1,479
			9/30/2031		Atlanta, GA		41 Busch Dr.		Cartersville		GA		—		276,705		1,590		1,494
			11/30/2031		Indianapolis, IN		3751 S. CR 500 E.		Whitestown		IN		—		1,016,244		3,897		3,628
			12/18/2031		DC/Baltimore, MD		80 Tyson Dr.		Winchester		VA		—		400,400		2,368		2,261
			12/31/2031		Phoenix, AZ		1515 South 91st Ave.		Phoenix		AZ		—		161,982		1,274		1,137
					Cincinnati/Dayton, OH		200 Richard Knock Way		Walton		KY		—		232,500		1,271		1,160
					Columbus, OH		351 Chamber Dr.		Chillicothe		OH		—		352,655		1,903		1,710
	2032		2/28/2032		Cincinnati/Dayton, OH		675 Gateway Blvd.		Monroe		OH		—		143,664		938		897
			4/30/2032		Houston, TX		13930 Pike Rd.		Missouri City		TX		—		—		2,123		2,131
					Cincinnati/Dayton, OH		300 Richard Knock Way		Walton		KY		—		544,320		2,411		2,204
	2033		3/31/2033		Phoenix, AZ		3405 S. McQueen Rd.		Chandler		AZ		—		201,784		4,498		4,167
			9/30/2033		Columbus, OH		191 Arrowhead Dr.		Hebron		OH		—		250,410		1,057		798
	2034		10/31/2034		Champaign-Urbana, IL		1001 Innovation Rd.		Rantoul		IL		—		813,126		4,196		4,072
			12/31/2034		Greenville/Spartanburg, SC		21 Inland Pkwy.		Greer		SC		—		1,318,680		5,544		5,198
	2035		4/30/2035		Greenville/Spartanburg, SC		8201 Reidville Rd.		Greer		SC		14		797,936		4,320		3,710
			6/30/2035		Dallas/Ft. Worth, TX		2115 East Belt Line Rd.		Carrollton		TX		—		298,653		1,361		1,173
			10/22/2035		Detroit, MI		2860 Clark St.		Detroit		MI		—		189,960		2,204		2,204
	2036		5/31/2036		Central Florida		5275 Drane Field Rd.		Lakeland		FL		—		117,440		787		692
					Charlotte, NC		671 Washburn Switch Rd.		Shelby		NC		—		673,425		2,786		2,661
			11/30/2036		Phoenix, AZ		17510 W. Thomas Rd.		Goodyear		AZ		—		468,182		4,304		3,880
	2037		3/31/2037		Dallas/Ft. Worth, TX		4005 E. I-30		Grand Prairie		TX		—		215,000		1,872		1,698
			5/31/2037		Phoenix, AZ		8989 W Buckeye Rd.		Phoenix		AZ		—		268,872		2,368		2,000

24 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		Annualized Base Rent as of 12/31/2022 ($000)			Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
INDUSTRIAL PROPERTIES
			WAREHOUSE/DISTRIBUTION
	2038		3/31/2038		Houston, TX		13901/14035 Industrial Rd.		Houston		TX		—		132,449		6,773			6,318
	N/A		Vacancy		Central Florida		3775 Fancy Farms Rd.		Plant City		FL		—		180,308		—			—
					Nashville, TN		6050 Dana Way		Antioch		TN		—		75,815		—			—
			WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - SINGLE TENANT												52,333,677		$	249,069		$		240,710
			MULTI-TENANT / VACANCY (5)(6)
	N/A		Various		Greenville/Spartanburg, SC		7820 Reidville Rd		Greer		SC		4 (100%)		210,820		1,292			1,232
			MULTI-TENANT/VACANCY WAREHOUSE/DISTRIBUTION TOTAL												210,820		$	1,292				1,232
INDUSTRIAL DEVELOPMENT LEASED LAND
	2042		11/5/2042		Phoenix, AZ		501-42-015 B (Parcel Number)		Phoenix		AZ		13		—		7,384			5,228
			INDUSTRIAL DEVELOPMENT LEASED LAND TOTAL												—		7,384			$	5,228
	INDUSTRIAL TOTAL/WEIGHTED AVERAGE												99.5% Leased (8)		52,544,497		$	257,745		$		247,170

25 

PROPERTY LEASES AND VACANCIES - 12/31/2022 

Year of Lease Expiration				Date of Lease Expiration		CoStar Market (1)		Property Location		City		State				Note				Property Type		Sq. Ft. Leased or Available (2)				Annualized Base Rent as of  12/31/2022 ($000)				Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)
OTHER PROPERTIES
SINGLE TENANT
	2023			9/30/2023		Philadelphia, PA		1701 Market St.		Philadelphia			PA				12			Office			1,220				37				37
				12/14/2023		South Bay/San Jose, CA		3333 Coyote Hill Rd.		Palo Alto			CA				—			Office			202,000				6,642				7,070
	2024			1/31/2024		Philadelphia, PA		1701 Market St.		Philadelphia			PA				12			Office			289,432				4,280				4,197
				5/31/2024		Charlotte, NC		3476 Stateview Blvd.		Fort Mill			SC				—			Office			169,083				2,014				2,072
						Charlotte, NC		3480 Stateview Blvd.		Fort Mill			SC				—			Office			169,218				2,088				2,074
	2025			5/31/2025		Philadelphia, PA		1701 Market St.		Philadelphia			PA				12			Office			2,641				283				283
				12/19/2025		Owensboro, KY		1901 Ragu Dr.		Owensboro			KY				7			Heavy Manufacturing			443,380				1,882				1,933
	2027			1/31/2027		Philadelphia, PA		1701 Market St.		Philadelphia			PA				12			Office			1,975				158				123
	2031			11/30/2031		New York/New Jersey		4 Apollo Dr.		Whippany			NJ				12			Office			123,734				2,041				1,833
	2048			12/31/2048		DC/Baltimore, MD		30 Light St.		Baltimore			MD				—			Other			—				311				311
	N/A			Vacancy		Philadelphia, PA		1701 Market St.		Philadelphia			PA				12			Office			8,769								—
				N/A		Philadelphia, PA		1701 Market St.		Philadelphia			PA				12			Office			—				1,663				1,663
				SINGLE TENANT OTHER TOTAL																			1,411,452			$	21,399			$	21,596
TOTAL OTHER/WEIGHTED AVERAGE																				99.4% Leased			1,411,452			$	21,399			$	21,596
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE																				99.5% Leased (8)			53,955,949			$	279,144			$	268,766

26 

PROPERTY LEASES AND VACANCIES - 12/31/2022 

Year of Lease Expiration		Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State		Note		Sq. Ft. Leased or Available (2)		LXP % Ownership			Annualized Base Rent as of  12/31/2022 ($000)			Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)			12/31/2022 Debt Balance ($000)			Debt Maturity (9)
NON-CONSOLIDATED PROPERTIES
NNN MFG COLD JV PROPERTIES
2024		4/30/2024		Portland/South Portland, ME		113 Wells St.		North Berwick		ME		10		993,685		20	%		1,672			1,627			381,000			01/2024
		5/31/2024		Bingen, WA		901 East Bingen Point Way		Bingen		WA		10		124,539		20	%		1,703			2,748			—			—
2025		6/30/2025		Nashville, TN		301 Bill Bryan Blvd.		Hopkinsville		KY		10		424,904		20	%		1,698			1,687			—			—
				Elizabethtown-Fort Knox, KY		730 North Black Branch Rd.		Elizabethtown		KY		10		167,770		20	%		709			537			—			—
				Elizabethtown-Fort Knox, KY		750 North Black Branch Rd.		Elizabethtown		KY		10		539,592		20	%		2,630			2,838			—			—
				Owensboro, KY		4010 Airpark Dr.		Owensboro		KY		10		211,598		20	%		990			1,208			—			—
		7/14/2025		Charlotte, NC		590 Ecology Ln.		Chester		SC		10		420,597		20	%		2,190			2,532			—			—
2026		11/30/2026		Lumberton, NC		2880 Kenny Biggs Rd.		Lumberton		NC		10		423,280		20	%		1,714			1,670			—			—
2027		8/31/2027		Greenville/Spartanburg, SC		50 Tyger River Dr.		Duncan		SC		10		221,833		20	%		1,062			1,103			—			—
		12/31/2027		Cincinnati/Dayton, OH		10590 Hamilton Ave.		Cincinnati		OH		10		264,598		20	%		861			813			—			—
2028		9/30/2028		West Michigan		904 Industrial Rd.		Marshall		MI		10		246,508		20	%		835			800			—			—
		12/31/2028		Nashville, TN		120 Southeast Pkwy. Dr.		Franklin		TN		10		289,330		20	%		833			735			—			—
2029		11/24/2029		Anniston-Oxford, AL		318 Pappy Dunn Blvd.		Anniston		AL		10		276,782		20	%		1,842			1,771			—			—
2030		10/31/2030		Detroit, MI		43955 Plymouth Oaks Blvd.		Plymouth		MI		10		311,612		20	%		1,872			1,633			—			—
2031		6/30/2031		Cincinnati/Dayton, OH		10000 Business Blvd.		Dry Ridge		KY		10		336,350		20	%		1,607			1,459			—			—
		10/31/2031		Chicago, IL		1020 W. Airport Rd.		Romeoville		IL		10		188,166		20	%		3,964			3,775			—			—
2032		10/31/2032		Detroit, MI		26700 Bunert Rd.		Warren		MI		—		260,243		20	%		4,194			3,740			25,850			11 /2032
2033		9/30/2033		Crossville, TN		900 Industrial Blvd.		Crossville		TN		10		222,200		20	%		704			613			—			—
2034		9/30/2034		Las Vegas, NV		5670 Nicco Way		North Las Vegas		NV		10		180,235		20	%		2,825			2,507			—			—
2035		3/31/2035		Houston, TX		13863 Industrial Rd.		Houston		TX		10		187,800		20	%		2,604			2,302			—			—
				Houston, TX		7007 F.M. 362 Rd.		Brookshire		TX		10		262,095		20	%		2,041			1,806
2042		5/31/2042		Columbus, GA		4801 North Park Dr.		Opelika		AL		10		165,493		20	%		3,465			2,766			—			—
NNN MFG COLD JV TOTAL/WEIGHTED AVERAGE												100% Leased		6,719,210					$	42,015		$	40,670		$	406,850

27 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State				Note				Sq. Ft. Leased or Available (2)				LXP % Ownership				Annualized Base Rent as of  12/31/2022 ($000)				Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)				12/31/2022 Debt Balance ($000)				Debt Maturity (9)
NON-CONSOLIDATED PROPERTIES
NNN OFFICE JV PROPERTIES
	2023		3/31/2023		Dallas/Ft. Worth, TX		8900 Freeport Pkwy.		Irving			TX				11				200,569				20	%			3,808				3,705				75,960			09/2023
	2025		3/14/2025		Dallas/Ft. Worth, TX		601 & 701 Experian Pkwy.		Allen			TX				11				292,700				20	%			3,240				3,073				—				—
			6/30/2025		Atlanta, GA		2500 Patrick Henry Pkwy.		McDonough			GA				11				111,911				20	%			1,628				1,525				—				—
			12/31/2025		Dallas/Ft. Worth, TX		4001 International Pkwy.		Carrollton			TX				11				138,443				20	%			2,534				2,543				—				—
	2026		3/31/2026		Columbus, OH		500 Olde Worthington Rd.		Westerville			OH				11				97,000				20	%			1,345				1,285				—				—
	2027		6/30/2027		Kansas City, MO		3902 Gene Field Rd.		St. Joseph			MO				11				98,849				20	%			2,116				2,110				—				—
			7/6/2027		Columbus, OH		2221 Schrock Rd.		Columbus			OH				11				42,290				20	%			684				683				—				—
			8/7/2027		Philadelphia, PA		25 Lakeview Dr.		Jessup			PA				11				150,000				20	%			2,330				2,326				—				—
	2032		4/30/2032		Charlotte, NC		1210 AvidXchange Ln.		Charlotte			NC				—				201,450				20	%			6,025				5,699				46,900				12/2023 01/2033
	2033		5/31/2033		Dallas/Ft. Worth, TX		8900 Freeport Pkwy.		Irving			TX				11				60,736				20	%			1,302				1,084				—				—
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE												100% Leased								1,393,948							$	25,012			$	24,033			$	122,860

28 

PROPERTY LEASES AND VACANCIES - 12/31/2022

Year of Lease Expiration			Date of Lease  Expiration		CoStar Market (1)		Property Location		City		State				Note				Sq. Ft. Leased or Available (2)				LXP % Ownership				Annualized Base Rent as of  12/31/2022 ($000)				Annualized Cash Base Rent ("ABR")  as of 12/31/2022 ($000)				12/31/2022 Debt Balance ($000)				Debt Maturity (9)
OTHER NON-CONSOLIDATED PROPERTIES
	2036		8/31/2036		Houston, TX		2203 North Westgreen Blvd.		Katy			TX				17				274,000				25	%			7,111				7,111				48,979				02/2023
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE												100% Leased								274,000							$	7,111			$	7,111			$	48,979
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE												100% Leased								8,387,158							$	74,138			$	71,814			$	578,689

Footnotes

1 Based on CoStar.com inventory data.

2 Square footage leased or available.

3 Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet).

4 Represents percent leased.

5 Multi-tenant properties are properties less than 50% leased to a single tenant.

6 The multi-tenanted properties incurred approximately $0.4 million in operating expenses, net in 2022.

7 LXP has a 71.1% interest in this property.

8 Percent leased is for Stabilized Portfolio.

9 Interest rates range from 0.25% to 6.424%.

10 All debt is cross-collateralized and cross-defaulted.

11 All debt is cross-collateralized and cross-defaulted.

12 Property held for sale at 12/31/2022.

13 Industrial development land ground lease. LXP has a 95.5% interest in this property.

14 LXP has a 90% interest in this property.

15 Subsequent to 12/31/2022, lease extended to 1/31/2029.

16 Subsequent to 12/31/2022, lease extended to 3/31/2028.

17 Subsequent to 12/31/2022, property sold and related debt satisfied.

29 

MORTGAGES AND NOTES PAYABLE 12/31/2022

Property		Footnotes				Debt Balance ($000)				Interest Rate (%)				Maturity (a)		Current Estimated Annual Debt Service ($000)  (b)				Balloon Payment ($000)
INDUSTRIAL (f)
Long Island City, NY						$	25,046				3.500	%		03/2028		$	5,153			$	—
Goodyear, AZ							40,935				4.290	%		08/2031			2,484				33,399
Industrial Subtotal/Wtd. Avg./Years Remaining (c)						$	65,981				3.990	%		7.3		$	7,637			$	33,399
OFFICE (f)
Palo Alto, CA						$	7,173				3.970	%		12/2023		$	7,333			$	—
Office Subtotal/Wtd. Avg./Years Remaining (c)						$	7,173				3.970	%		0.9		$	7,333			$	—
Subtotal/Wtd. Avg./Years Remaining (c)						$	73,154				3.988	%		6.7		$	14,970			$	33,399
CORPORATE (e)
Senior Notes						$	198,932				4.400	%		06/2024		$	8,753			$	198,932
Term Loan			(h)				300,000				2.722	%		01/2025			8,279				300,000
Revolving Credit Facility			(g)				—				—			07/2026			—				—
Senior Notes							400,000				2.700	%		09/2030			10,800				400,000
Senior Notes							400,000				2.375	%		10/2031			9,500				400,000
Trust Preferred Notes			(i)				129,120				6.115	%		04/2037			8,005				129,120
Subtotal/Wtd. Avg./Years Remaining (c)						$	1,428,052				3.159	%		6.5		$	45,337			$	1,428,052
Total/Wtd. Avg./Years Remaining (c)			(d)			$	1,501,206				3.200	%		6.5		$	60,307			$	1,461,451

30 

MORTGAGES AND NOTES PAYABLE (CONTINUED) 12/31/2022 ($000)

		GAAP Balance				Deferred Loan Costs, net				Discounts				Gross Balance
Mortgages and notes payable (f)		$	72,103			$	1,051			$	—			$	73,154
Revolving credit facility borrowings (e)			—				—				—				—
Term loans payable (e)			298,959				1,041				—				300,000
Senior notes payable(e)			989,295				6,409				3,228				998,932
Trust preferred securities (e)			127,694				1,426				—				129,120
Consolidated debt		$	1,488,051			$	9,927			$	3,228			$	1,501,206

Footnotes

(a) Subtotal and total based on weighted-average term to maturity shown in years based on debt balance.

(b) Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months.

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

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

(e) Unsecured.

(f) Secured.

(g) Rate ranges from Adjusted Daily Simple SOFR or Adjusted Term SOFR plus 0.725% to 1.40%. Availability of $600 million, subject to covenant compliance.

(h) Rate ranges from Adjusted Term SOFR plus 0.85% to 1.65%. The Adjusted Term SOFR portion of the interest rate was swapped to obtain a current fixed rate of 2.722%.

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

31 

DEBT MATURITY SCHEDULE 12/31/2022 ($000)

	Consolidated Properties
	Year				Mortgage Scheduled  Amortization				Mortgage Balloon Payments				Corporate Debt
	2023			$	12,265			$	—			$	—
	2024				5,373				—				198,932
	2025				5,570				—				300,000
	2026				5,773				—				—
	2027				5,984				—				—
				$	34,965			$	—			$	498,932

Debt Maturity Profile ⁽¹⁾

 

Footnotes

(1) Percentage denotes weighted-average interest rate.

32 

DEBT COVENANTS ⁽¹⁾

CORPORATE LEVEL DEBT
			MUST BE:		12/31/2022
Bank Loans:
		Maximum Leverage	< 60%		35.5%
		Fixed Charge Coverage	> 1.5x		3.1x
		Recourse Secured Indebtedness Ratio	< 10% cap value		0.0%
		Secured Indebtedness Ratio	< 40%		4.3%
		Unsecured Debt Service Coverage	> 2.0x		4.9x
		Unencumbered Leverage	< 60%		35.8%
Bonds:
		Debt to Total Assets	< 60%		30.8%
		Secured Debt to Total Assets	< 40%		1.5%
		Debt Service Coverage	> 1.5x		5.4x
		Unencumbered Assets to Unsecured Debt	> 150%		326.9%

Footnotes

(1) The above is a summary of the key financial covenants for LXP's credit facility and term loan and senior notes, as of December 31, 2022 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date and applicable. These calculations are presented to show LXP's compliance with such covenants only and are not measures of LXP's liquidity or performance.

33 

COMPONENTS OF NET ASSET VALUE 12/31/2022 ($000)

The purpose of providing the following information is to enable readers to derive their own estimates of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation.

Consolidated properties twelve-month net operating income (NOI) (1)
Industrial		$	223,585
Other			13,298
Total Net Operating Income		$	236,883

LXP's share of non-consolidated twelve-month NOI (1)
NNN OFFICE JV
Office		$	4,754
NNN MFG Cold JV
Industrial		$	7,930
OTHER JV
Other		$	1,590

Other income
Advisory fees		$	5,615

NOI for NAV Reconciliation:		Twelve months ended 12/31/2022
NOI as reported		$	247,421
Adjustments to NOI:
Disposed of properties			(6,659	)
Leases with free rent period			5,772
Leases not commenced			1,739
Held for sale assets			(9,068	)
Assets acquired/completed in 2022			(2,410	)
Investment in a sales-type lease			(871	)
Assets less than 70% leased / Other			959
NOI for NAV		$	236,883

In service assets not fairly valued by capitalized NOI method (1)
Consolidated assets acquired/completed (our share) in 2022		$	184,698
Consolidated assets less than 70% leased		$	45,433

Add other assets:
Assets held for sale - consolidated		$	66,434
Investment in a sales-type lease(3)			58,565
Construction in progress			9,221
Developable land - non-consolidated(2)			15,962
Developable land - consolidated(2)			79,906
Development investment(2)			309,594
Cash and cash equivalents			54,390
Restricted cash			116
Accounts receivable			3,030
Other assets			24,314
Total other assets		$	621,532

Liabilities:
Corporate level debt (face amount)		$	1,428,052
Mortgages and notes payable (face amount)			73,154
Dividends payable			38,416
Liabilities held for sale - consolidated			1,150
Accounts payable, accrued expenses and other liabilities			98,657
Preferred stock, at liquidation value			96,770
LXP's share of non-consolidated mortgages (face amount)			118,187
Total deductions		$	1,854,386
Common shares & OP units at 12/31/2022			292,551,938

Footnotes

(1) NOI for the existing property portfolio at December 31, 2022, includes four quarters of annualized NOI for non-commenced leases and leases with free rent periods (excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale). Assets undervalued by a capitalized NOI method are identified generally by under 70% leased during the period, assets placed into service and assets acquired in 2022. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, LXP's net book value has been used.

(2) At cost incurred.

(3) Our share at carrying value excluding allowance for credit loss.

34 

NON-GAAP MEASURES DEFINITIONS

LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Supplemental Information and in other public disclosures.

LXP believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable Generally Accepted Accounting Principles (“GAAP”) measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund operations. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating LXP's financial performance or cash flow from operating, investing, or financing activities or liquidity.

Definitions:

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties, non-cash sales-type lease adjustments, impairment charges, debt satisfaction gains (losses), net, non-cash charges, net, straight-line adjustments, change in credit loss revenue, non-recurring charges and adjustments for pro-rata share of non-wholly owned entities. LXP’s calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. LXP believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA. 

Annualized Cash Base Rent ("ABR"): Annualized Cash Base Rent is calculated by multiplying the current monthly Cash Base Rent by 12. For leases in free rent periods or that were signed prior to the end of the quarter but have not commenced, the first Cash Base Rent payment is multiplied by 12. LXP believes ABR provides a meaningful indication of an investment's ability to fund cash needs.

Annualized Base Rent: Annualized Base rent is calculated by multiplying the current monthly Base Rent by 12. For leases signed prior to the end of the quarter but have not commenced, the first Base Rent is multiplied by 12. LXP believes Annualized Base Rent provides a meaningful measure to the net lease structure of the portfolio.

Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio.

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements, non-cash sales-type lease income and lease termination income, and includes ancillary income. LXP believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.

35 

NON-GAAP MEASURES DEFINITIONS

Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash income related to sales-type leases, (6) non-cash interest, (7) non-cash charges, net, (8) capitalized interest and internal costs, (9) cash paid for second generation tenant improvements, and (10) cash paid for second generation lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), LXP believes it provides a meaningful indication of its ability to fund cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

First Generation Costs: Represents cash spend for tenant improvements and leasing costs for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, LXP's presentation may not be comparable to similarly titled measures of other companies.

Funds from Operations (“FFO”) and Adjusted Company FFO: LXP believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity real estate investment trust (“REIT”). LXP believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

LXP presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into LXP's common shares, are converted at the beginning of the period. LXP also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio. LXP believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be

36 

NON-GAAP MEASURES DEFINITIONS

Net Operating Income (NOI): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of LXP's historical or future financial performance, financial position or cash flows. LXP defines NOI as operating revenues (rental income (less GAAP rent adjustments, 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 NOI, and accordingly, LXP's NOI may not be comparable to that of other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. LXP believes that net income is the most directly comparable GAAP measure to NOI.

Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for two comparable reporting periods. As Same-Store NOI excludes the change in NOI from acquired and disposed of properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, LXP's Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of LXP's operating performance. However, Same-Store NOI should not be viewed as an alternative measure of LXP's financial performance since it does not reflect the operations of LXP's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of LXP's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact LXP's results from operations. LXP believes that net income is the most directly comparable GAAP measure to Same-Store NOI.

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation. LXP believes that second generation building improvements represent an investment in existing stabilized properties.

Stabilized Portfolio: All real estate properties other than acquired or developed properties that have not achieved 90% occupancy within one-year of acquisition or substantial completion. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction.

37 

SELECT CREDIT METRICS DEFINITIONS ($000)

Adjusted Company FFO Payout:		Twelve months ended December 31, 2022				(Debt + Preferred) / Gross Assets:		Twelve months ended December 31, 2022
Common share dividends per share		$	0.49			Consolidated debt		$	1,488,051
Adjusted Company FFO per diluted share			0.67			Preferred shares liquidation preference			96,770
Adjusted Company FFO payout ratio			72.4	%		Debt and preferred		$	1,584,821
Unencumbered Assets:						Total assets		$	4,053,847
Real estate, at cost		$	4,466,009			Plus depreciation and amortization:
Held for sale real estate and intangible assets, at cost			141,499			Real estate			800,470
Investment in a sales-type lease(1)			61,325			Deferred lease costs			9,989
Other asset - note receivable			1,470			Held for sale assets			77,632
less encumbered real estate, at cost			(144,386	)
Unencumbered assets		$	4,525,917			Gross assets		$	4,941,938
Unencumbered NOI:						(Debt + Preferred) / Gross Assets			32.1	%
NOI		$	247,421
Disposed of properties NOI			(6,659	)		Debt  / Gross Assets:
Adjusted NOI			240,762			Consolidated debt		$	1,488,051
less encumbered adjusted NOI			(15,777	)
Unencumbered adjusted NOI		$	224,985			Gross assets		$	4,941,938
Unencumbered NOI %			93.4	%		Debt / Gross assets			30.1	%
Net Debt  / Adjusted EBITDA:						Secured Debt  / Gross Assets:
Adjusted EBITDA		$	240,305			Total Secure Debt		$	72,103
Consolidated debt		$	1,488,051			Gross assets		$	4,941,938
less consolidated cash and cash equivalents			(54,390	)
Non-consolidated debt, net			115,963			Secured Debt / Gross Assets			1.5	%
Net debt		$	1,549,624
						Unsecured Debt / Unencumbered Assets:
Net debt / Adjusted EBITDA			6.4	x		Consolidated debt		$	1,488,051
						less mortgages and notes payable			(72,103	)
(Net Debt + Preferred)  / Adjusted EBITDA:						Unsecured Debt		$	1,415,948
Adjusted EBITDA		$	240,305
						Unencumbered assets		$	4,525,917
Net debt		$	1,549,624
Preferred shares liquidation preference			96,770			Unsecured Debt / Unencumbered Assets			31.3	%
Net debt + preferred		$	1,646,394
(Net Debt + Preferred) / Adjusted EBITDA			6.9	x

For the 12/31/2021, 12/31/2020 and 12/31/2019 Select Credit Metric reconciliation see corresponding period Quarterly Supplemental Information. (1) At carrying value excluding allowance for credit loss.

38 

APPENDIX - OTHER PORTFOLIO 12/31/2022

Additional Information
# of Properties	7
Square Feet	1,411,452
% Investment Grade (1)	28.2%
% of ABR(2)	8.0%
% Leased	99.4%
Weighted-Average Age (Years)(3)	31.0
Weighted-Average ABR per SF(4)	$13.99
Weighted-Average Lease Term (Years)(5)	2.4
% with Fixed Escalation(6)	69.2%
Average Annual Rent Escalation(6)	2.2%
Mortgage Debt ($000)	$7,173

LEASE ROLLOVER SCHEDULE
	Year				Number of Leases Expiring				ABR as of 12/31/2022 ($000)				ABR as of 12/31/2022				ABR as of 12/31/2021(8)
	2023				2			$	7,107				35.7	%			30.1	%
	2024				3				8,343				41.9	%			36.2	%
	2025				2				2,216				11.1	%			11.3	%
	2026				0				—				0.0	%			1.1	%
	2027				1				123				0.6	%			2.8	%
	2028				0				—				0.0	%			9.6	%
	2029				0				—				0.0	%			0.0	%
	2030				0				—				0.0	%			0.0	%
	2031				1				1,833				9.2	%			7.3	%
	2032				0				—				0.0	%			0.0	%
	Thereafter				1				311				1.6	%			1.3	%
	Total (7)				10			$	19,933				100.0	%

Footnotes

(1) Percent of ABR. Credit ratings based upon either tenant, guarantor or parent/ultimate parent.

(2) Based on ABR for consolidated properties owned.

(3) Weighting based on square footage, excluding land parcels.

(4) Excludes land assets and all vacant square footage.

(5) Weighting based on ABR.

(6) Based on ABR for single-tenant leases owned (properties 50% leased to a single tenant). Average Annual Rent Escalation based on next rent step percentages.

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

(8) 12/31/2021 is restated based on ABR.

39 

Investor Information

 Transfer Agent

Computershare	Overnight Correspondence:
PO Box 43006	150 Royall Street, Suite 101
Providence, RI 02940	Canton, MA  02021
(800) 850-3948
www-us.computershare.com/investor

 Investor Relations

Heather Gentry
Senior Vice President, Investor Relations
Telephone (direct)	(212) 692-7219
E-mail	hgentry@lxp.com

 Research Coverage

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

40 

 

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