LXP Industrial Trust Boosts 2026 FFO to $3.30–$3.40 After 2.7M Sq Ft Q2 Leasing
LXP•LXP Industrial Trust executed 2.7 million square feet of Q2 leases at a 22% average rental increase, bringing year-to-date volume to 4.6 million square feet. The REIT acquired a 37-acre Phoenix infill site for $103 million with $16.1 million annual rent and raised 2026 Adjusted FFO guidance to $3.30–$3.40 per share.
1. Q2 Leasing Performance
During the second quarter, LXP executed 2.7 million square feet of new and renewal leases at an average cash base rental increase of 22%, lifting its year-to-date leasing volume to 4.6 million square feet. New first-generation leases included a 1,184,591 sq ft deal in Glendale, AZ; second-generation new leases totaled 409,440 sq ft in Houston and Savannah; and second-generation extensions added 1,119,527 sq ft in Savannah and San Antonio.
2. Phoenix Infill Acquisition
In May, the company acquired a 37-acre infill site in the Phoenix South Airport submarket for $103 million, featuring a 600,000 sq ft Class A office campus leased to Phoenix Education Partners through March 2031. The property delivers $16.1 million in annual cash rent with 2% annual escalations, and LXP plans to redevelop it into 400,000–450,000 sq ft of industrial space upon lease expiration, funded via 1031 exchange proceeds.
3. Revised 2026 Guidance
LXP raised its 2026 Adjusted Company FFO guidance to $3.30–$3.40 per diluted share from $3.22–$3.37, alongside net income per share expected at $2.38–$2.48. The updated outlook assumes same-store NOI growth of 1.5%–2.5%, ongoing development in Columbus, $200 million of non-target market dispositions in H2, acquisition of the Phoenix site, and G&A expenses of $39–$41 million.
