Result drivers
- Acquisitions and rental growth - Co said revenue increase was primarily due to property acquisitions and higher rental revenue
- Leasing activity - Co completed 2.3 mln sq ft of new and extended second-generation leases, raising base and cash base rents by 43.1% and 26.2%, respectively, excluding two fixed-rate renewals
- Property acquisition - Co acquired a 37-acre infill covered land investment in Phoenix, AZ for $103.2 mln at an initial cash yield of 15.7%
Q2 results and revenue drivers
- US warehouse REIT's Q2 revenue edged up yr/yr, driven by acquisitions and rental growth
- Adjusted Company FFO per share rose 5% yr/yr to $0.84
- Company to be acquired for $5.2 bln by Brookfield and CPP Investments; common dividend suspended
Outlook and dividend suspension
- LXP will suspend regular common share dividend payments, effective immediately, due to merger agreement
- Company will continue to pay Series C Preferred dividends as permitted under merger agreement
- LXP will no longer provide earnings guidance or affirm past guidance in light of proposed merger
Key details and analyst coverage
LXP•
