LXP Industrial Trust Reports Second Quarter 2026 Results

WEST PALM BEACH, Fla., July 29, 2026 (GLOBE NEWSWIRE) -- LXP Industrial Trust ("LXP") (NYSE: LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced results for the quarter ended June 30, 2026.

Proposed Merger

On July 19, 2026, LXP entered into an Agreement and Plan of Merger (the "Merger Agreement") with certain affiliates of Brookfield Asset Management (NYSE: BAM, TSX: BAM) ("Brookfield") and Canada Pension Plan Investment Board ("CPP Investments," and together with Brookfield, collectively, the "Buyer") in which, upon the terms and subject to the conditions set forth in the Merger Agreement, the Buyer would acquire all of the outstanding shares of LXP for $61.20 per share in cash (collectively with the other transactions contemplated by the Merger Agreement, the "Merger") in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity. The proposed purchase price represents a premium of 12.3% to LXP's 30-day volume weighted average price ("VWAP") and a 19.8% premium to LXP's 90-day VWAP, in each case for the period ended July 17, 2026. The transaction was unanimously approved by the LXP Board of Trustees and is expected to close by the end of the fourth quarter of 2026, subject to approval by LXP's shareholders and satisfaction of other customary closing conditions.

Second Quarter 2026 Highlights

• Recorded Net Loss attributable to common shareholders of $(1.6) million, or $(0.03) per diluted common share.
• Generated Adjusted Company Funds From Operations available to all equityholders - diluted ("Adjusted Company FFO") of $49.5 million, or $0.84 per diluted common share, compared to $0.80 per diluted common share in the same period in 2025, an increase of 5.0%.
• Increased Same-Store NOI 0.5% compared to the same period in 2025.
• Pre-leased a 1.2 million square foot development project with an initial annual cash base rent of approximately $9.8 million.
• Completed 2.3 million square feet of new and extended second-generation leases, increasing Base and Cash Base Rents by 43.1% and 26.2%, respectively, excluding two fixed-rate renewals.
• Acquired a 37-acre infill covered land investment in Phoenix, Arizona for $103.2 million and an initial cash yield of 15.7%.
• Commenced two speculative development projects in the Columbus, Ohio market, consisting of a 750,000 square foot facility and a 161,000 square foot facility.
  
  

Subsequent Highlights

• Sold one warehouse facility outside of target markets for $51 million.
• Completed 0.2 million square feet of new leases and lease extensions, increasing Cash Base Rents by 31.0%.
  
  

FINANCIAL RESULTS

Revenues

For the quarter ended June 30, 2026, total gross revenues were $88.1 million, compared with total gross revenues of $87.7 million for the quarter ended June 30, 2025. The increase is primarily attributable to acquisitions and increased rental revenue.

Net Income Attributable to Common Shareholders

For the quarter ended June 30, 2026, net loss attributable to common shareholders was $(1.6) million, or $(0.03) per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2025 of $27.5 million, or $0.47 per diluted share.

Adjusted Company FFO

For the quarter ended June 30, 2026, LXP generated Adjusted Company FFO of $49.5 million, or $0.84 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2025 of $47.3 million, or $0.80 per diluted share.

Dividends

LXP previously announced that it declared a regular quarterly common share dividend for the quarter ending June 30, 2026. The dividend of $0.70 per common share was paid on July 15, 2026 to common shareholders of record as of June 30, 2026.

LXP also previously announced that it declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred") for the quarter ended June 30, 2026, which is expected to be paid on August 17, 2026 to shareholders of record as of July 31, 2026.

Pursuant to the terms of the Merger Agreement, LXP has agreed to suspend payment of its regular common share quarterly dividend, effective immediately, subject to certain exceptions set forth in the Merger Agreement. The Merger Agreement permits LXP to make regular quarterly dividends on the Series C Preferred shares.

TRANSACTION ACTIVITY

PROPERTY ACQUISITION
Market		Sq. Ft.		Initial Cost Basis ($000)			Wtd. Average Lease Term (Yrs)		% Leased at Acquisition
Phoenix, AZ(1)		599,664		-	103,164		4.9		100	-

_{⁽¹⁾ 37-acre infill industrial redevelopment site leased to Phoenix Education Partners through March 31, 2031.}

The property was acquired at GAAP and cash capitalization rates of 14.5% and 15.7%, respectively.

ONGOING DEVELOPMENT AND REDEVELOPMENT PROJECTS
Project (% owned)	# of Buildings	Market	Estimated Sq. Ft.	Estimated Project Cost ($000)		GAAP Investment Balance as of 6/30/2026 ($000)(1)		LXP Amount Funded as of 6/30/2026 ($000)(2)		Estimated Base Building Completion Date	% Leased as of 6/30/2026
Consolidated Projects:
Development Project
Reems & Olive - Building D (95.5%)	1	Phoenix, AZ	1,184,591	-	121,900	-	54,754	-	35,800	4Q 2026	100	-
Redevelopment Projects
Orlando (100%)(3)	1	Central FL	350,990	-	9,400	-	17,771	-	3,559	4Q 2026	-	-
Richmond (100%)(3)	1	Richmond, VA	252,351		5,000		16,227		4,122	3Q 2026	-	-
Total Redevelopment Projects	2		603,341	-	14,400	-	33,998	-	7,681
Land Infrastructure Improvements
Reems & Olive (95.5%)(4)	N/A	Phoenix, AZ	N/A	-	16,537	-	13,670	-	15,980	N/A	N/A
Total Consolidated Projects	3		1,787,932	-	152,837	-	102,422	-	59,461
Non-Consolidated Projects:
Development Project
Etna Park 70 - Building B (90.0%)	1	Columbus, OH	750,000	-	67,100	-	7,109	-	6,755	3Q 2027	N/A
Etna Park 70 - Building C (90.0%)	1	Columbus, OH	161,000		21,900		1,774		1,672	3Q 2027	N/A
	2		911,000	-	89,000	-	8,883	-	8,427
Total Development and Redevelopment Projects	5		2,698,932	-	241,837	-	111,305	-	67,888

_{⁽¹⁾ Excludes leasing costs, incomplete costs and developer incentive fees or partner promotes, if any.
⁽²⁾ Excludes noncontrolling interests' share.
⁽³⁾ Estimated project costs exclude estimated tenant improvements and leasing costs.
⁽⁴⁾ Represents infrastructure development costs to prepare the land for vertical development.}

LAND HELD FOR INDUSTRIAL DEVELOPMENT
Project (% owned)		Market		Approximate Acres		GAAP Investment Balance as of 6/30/2026 ($000)			LXP Amount Funded as of 6/30/2026 ($000)(1)
Consolidated Land:
Reems & Olive (95.5%)		Phoenix, AZ		240		-	57,170		-	57,077
Mt. Comfort Phase II (80.0%)		Indianapolis, IN		116			5,879			4,768
ATL Fairburn (100.0%)		Atlanta, GA		14			1,732			1,779
Total Consolidated Land				370		-	64,781		-	63,624
Consolidated Covered Land:
Covered Land Investment (100%)(2)		Phoenix, AZ		37
Total Consolidated and Covered Land				407
Non-Consolidated Land:
Etna Park 70 East (90.0%)		Columbus, OH		21		-	2,767		-	3,629
Etna Park 70 (90.0%)		Columbus, OH		19			850			784
Total Non-Consolidated Land				40		-	3,617		-	4,413

_{⁽¹⁾ Excludes noncontrolling interests' share.
⁽²⁾ 37-acre infill covered land investment available for redevelopment upon expiration of the in-place lease.}

LEASING
During the second quarter of 2026, LXP executed new and extended leases:
NEW LEASES - FIRST GENERATION
Location		Lease Expiration Date		Sq. Ft.
Glendale, AZ		11/31		1,184,591
TOTAL NEW LEASES - FIRST GENERATION				1,184,591
NEW LEASES - SECOND GENERATION
Location		Lease Expiration Date		Sq. Ft.
Pasadena, TX		11/33		248,240
Savannah, GA		06/31		161,200
TOTAL NEW LEASES - SECOND GENERATION				409,440
LEASE EXTENSIONS - SECOND GENERATION
Location		New Lease Expiration Date		Sq. Ft.
Savannah, GA		07/36		270,252
San Antonio, TX		09/37		849,275
Tolleson, AZ		09/33		186,336
Savannah, GA		12/31		149,415
Whiteland, IN		12/29		179,530
Whiteland, IN		12/29		168,480
Whitestown, IN		10/35		63,840
TOTAL LEASE EXTENSIONS - SECOND GENERATION				1,867,128

As of June 30, 2026, LXP's stabilized portfolio was 97.4% leased. A total of 2.3 million square feet of new and extended second-generation leases were executed during the second quarter with Base and Cash Base Rents on second-generation leases increasing by 38.3% and 22.6%, including fixed rate renewals, and 43.1% and 26.2%, respectively, excluding two fixed rate renewals.

BALANCE SHEET

LXP ended the quarter with net debt to Annualized Adjusted EBITDA of 5.5x. LXP's total consolidated debt was $1.4 billion at quarter end. Total consolidated debt had a weighted-average term to maturity of 4.5 years and a weighted-average interest rate of 3.6% as of June 30, 2026. LXP's total cash and cash equivalents was $18.0 million at quarter end.

SECOND QUARTER 2026 EARNINGS CONFERENCE CALL

In light of the proposed Merger, LXP will not be hosting a conference call or webcast to present the second quarter 2026 results and will no longer provide earnings guidance, nor is it affirming past guidance.

ABOUT LXP INDUSTRIAL TRUST

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and lower Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit www.lxp.com

Contact:
Investor or Media Inquiries for LXP Industrial Trust:
Heather Gentry, Executive Vice President of Investor Relations
LXP Industrial Trust
Phone: [phone] E-mail: [e-mail]

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under LXP's control which may cause actual results, performance or achievements of LXP 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) our ability to obtain consummate the Merger, including obtaining the requisite shareholder approval, and the timing of the closing, including the risks that a condition to closing will not be satisfied within the expected timeframe or at all or that the closing will not occur, (2) the outcome of any legal proceedings that may be instituted against the parties to, and others related to, the Merger Agreement, including timing and expenses risks, (3) operational risks related to the Merger, including time demands on management, employee retentions and transaction costs that are not contingent on closing, (4) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (5) the outbreak of highly infectious or contagious diseases and natural disasters, (6) authorization by LXP's Board of Trustees of future dividend declarations, (7) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields, (8) the failure to continue to qualify as a real estate investment trust, (9) changes in general business and economic conditions, including the impact of any legislation, (10) competition, (11) inflation and increases in operating costs, (12) labor shortages, (13) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (14) defaults or non-renewals of significant tenant leases, (15) changes in financial markets and interest rates, (16) changes in accessibility of debt and equity capital markets, (17) future impairment charges, (18) international trade disputes or the imposition of significant tariffs or other trade restrictions by the U.S. on imported goods that adversely impact trading volumes and (19) 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.

References to LXP refer to LXP Industrial Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

Additional Information and Where to Find It

In connection with the proposed transaction, LXP will file with the Securities and Exchange Commission ("SEC") a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, LXP will mail the definitive proxy statement and a proxy card to each shareholder entitled to vote at the special meeting relating to the proposed transaction. INVESTORS AND SECURITY HOLDERS OF LXP ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT LXP FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement, the preliminary proxy statement and any other documents filed by LXP with the SEC (when available) may be obtained free of charge at the SEC's website at www.sec.gov or by accessing the Investor Relations section of LXP's website at www.lxp.com or by contacting LXP's Investor Relations by email at [e-mail]

Participants in the Solicitation

LXP and its trustees and certain of its executive officers may be deemed to be participants in the solicitation of proxies from LXP's shareholders with respect to the proposed transaction. Information about LXP's trustees and executive officers and their ownership of LXP's securities is set forth in LXP's proxy statement on Schedule 14A for its 2026 annual meeting of shareholders, filed with the SEC on April 3, 2026, and subsequent documents filed with the SEC.

Additional information regarding the identity of participants in the solicitation of proxies, and a description of their direct or indirect interests in the proposed transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed transaction when they become available.

Non-GAAP Financial Measures - Definitions

LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release 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 measures under generally accepted accounting principles ("GAAP"), 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 cash needs. 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.

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest expense, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of real estate or changes in control, impairment charges, gain (loss) on debt satisfaction, net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash purchase option impact of sales-type leases 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 Adjusted EBITDA is Adjusted EBITDA for the quarter multiplied by four.

Annualized Adjusted EBITDA: Adjusted EBITDA for the quarter multiplied by four.

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.

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 its 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, leasing costs and expenditures contemplated at acquisition for recently acquired properties with vacancy. 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 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 - basic and also presents FFO available to all equityholders - 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 - diluted which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio and not comparable from period to period. 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 considered as an alternative to net income as an indicator of LXP's operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of LXP's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate, (or has generated) divided by the acquisition/completion cost, (or sale price). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy excluding developer incentive fees or partner promotes, if any.

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 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 NOI, and accordingly, LXP's NOI may not be comparable to 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 the period commencing January 1, 2025 and through the end of the current reporting period. As Same-Store NOI excludes the change in NOI from acquired, expanded, disposed of properties and properties with significant casualty loss, 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 non-stabilized properties. LXP considers stabilization to occur upon the earlier of 90% occupancy of the property or one year from the cessation of major construction activities. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction. If some portions of a development project are substantially complete and ready for use and other portions have not yet reached that stage, LXP ceases capitalizing costs on the completed portion of the project but continues to capitalize costs for the incomplete portion. When a portion of the development project is substantially complete and ready for its intended use, the project is placed in service and depreciation commences.

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
Gross revenues:
Rental revenue	-	87,141			-	86,744			-	172,117			-	174,637
Other revenue		969				975				1,941				1,945
Total gross revenues		88,110				87,719				174,058				176,582
Expense applicable to revenues:
Depreciation and amortization		(48,056	-			(49,362	-			(95,041	-			(99,874	-
Property operating		(16,174	-			(15,875	-			(32,909	-			(33,004	-
General and administrative		(9,714	-			(9,630	-			(19,968	-			(20,020	-
Non-operating income		472				744				2,007				1,264
Interest and amortization expense		(13,250	-			(16,467	-			(26,467	-			(32,747	-
Gain (loss) on debt satisfaction, net		-				1,143				(299	-			793
Transaction costs		-				(38	-			(15	-			(38	-
Gain (loss) on sale or disposal of, and recovery on, real estate, net		(79	-			31,320				2,225				55,955
Income before provision for income taxes and equity in losses of non-consolidated entities		1,309				29,554				3,591				48,911
Provision for income taxes		(164	-			(199	-			(300	-			(414	-
Equity in losses of non-consolidated entities		(1,153	-			(958	-			(3,590	-			(1,938	-
Net income (loss)		(8	-			28,397				(299	-			46,559
Net loss attributable to noncontrolling interests		63				735				115				1,551
Net income (loss) attributable to LXP Industrial Trust shareholders		55				29,132				(184	-			48,110
Dividends attributable to preferred shares - Series C		(1,573	-			(1,573	-			(3,145	-			(3,145	-
Allocation to participating securities		(112	-			(109	-			(243	-			(236	-
Net income (loss) attributable to common shareholders	-	(1,630	-		-	27,450			-	(3,572	-		-	44,729
Net income (loss) attributable to common shareholders - per common share basic	-	(0.03	-		-	0.47			-	(0.06	-		-	0.77
Weighted-average common shares outstanding - basic		58,094,324				58,374,448				58,128,487				58,357,922
Net income (loss) attributable to common shareholders - per common share diluted	-	(0.03	-		-	0.47			-	(0.06	-		-	0.77
Weighted-average common shares outstanding - diluted		58,094,324				58,441,633				58,128,487				58,450,736

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
	June 30, 2026				December 31, 2025
Assets:
Real estate, at cost	-	3,962,106			-	3,908,485
Real estate - intangible assets		336,881				305,841
Land held for development		64,781				82,971
Investments in real estate under construction		102,422				41,769
Real estate, gross		4,466,190				4,339,066
Less: accumulated depreciation and amortization		(1,231,328	-			(1,151,513	-
Real estate, net		3,234,862				3,187,553
Assets held for sale		15,393				-
Right-of-use assets, net		6,717				8,721
Cash and cash equivalents		17,990				170,394
Restricted cash		172				257
Investments in non-consolidated entities		29,231				31,430
Deferred expenses, net		49,445				35,068
Rent receivable - current		2,894				3,454
Rent receivable - deferred		83,999				84,631
Other assets		23,231				15,514
Total assets	-	3,463,934			-	3,537,022
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	-	46,770			-	49,541
Revolving credit facility borrowings		15,000				-
Term loan payable, net		247,750				249,053
Senior notes payable, net		953,514				952,693
Trust preferred securities, net		100,152				100,113
Dividends payable		44,276				44,715
Liabilities held for sale		252				-
Operating lease liabilities		7,009				9,134
Accounts payable and other liabilities		61,820				54,553
Accrued interest payable		9,117				9,218
Deferred revenue - including below-market leases, net		2,463				3,030
Prepaid rent		15,291				16,594
Total liabilities		1,503,414				1,488,644
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,769 and $96,770, respectively; 1,935,375 and 1,935,400 shares issued and outstanding in 2026 and 2025, respectively		94,014				94,016
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 58,952,524 and 59,077,234 shares issued and outstanding in 2026 and 2025, respectively		6				6
Additional paid-in-capital		3,308,879				3,313,884
Accumulated distributions in excess of net income		(1,456,767	-			(1,371,654	-
Accumulated other comprehensive income		1,774				427
Total shareholders' equity		1,947,906				2,036,679
Noncontrolling interests		12,614				11,699
Total equity		1,960,520				2,048,378
Total liabilities and equity	-	3,463,934			-	3,537,022

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)
		Three Months Ended June 30,							Six Months Ended June 30,
		2026				2025			2026				2025
EARNINGS PER SHARE:
Basic:
Net income (loss) attributable to common shareholders		-	(1,630	-		-	27,450		-	(3,572	-		-	44,729
Weighted-average number of common shares outstanding - basic			58,094,324				58,374,448			58,128,487				58,357,922
Net income (loss) attributable to common shareholders - per common share basic		-	(0.03	-		-	0.47		-	(0.06	-		-	0.77
Diluted:
Net income (loss) attributable to common shareholders - basic		-	(1,630	-		-	27,450		-	(3,572	-		-	44,729
Weighted-average common shares outstanding - basic			58,094,324				58,374,448			58,128,487				58,357,922
Effect of dilutive securities:
Unvested share-based payment awards			-				67,185			-				92,814
Weighted-average common shares outstanding - diluted			58,094,324				58,441,633			58,128,487				58,450,736
Net income (loss) attributable to common shareholders - per common share diluted		-	(0.03	-		-	0.47		-	(0.06	-		-	0.77

LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
				Three Months Ended June 30,								Six Months Ended June 30,
				2026				2025				2026				2025
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income (loss) attributable to common shareholders				-	(1,630	-		-	27,450			-	(3,572	-		-	44,729
Adjustments:
	Depreciation and amortization - real estate				46,101				47,725				91,334				96,547
	Impairment charges - real estate, from our share of non-consolidated entities				-				-				1,250				-
	Amortization of leasing commissions				1,955				1,637				3,707				3,327
	Joint venture and noncontrolling interest adjustment				1,281				1,206				2,613				2,412
	(Gain) loss on sale or disposal of, and recovery on, real estate, net				79				(31,320	-			(2,225	-			(55,955	-
FFO available to common shareholders - basic					47,786				46,698				93,107				91,060
	Preferred dividends				1,573				1,573				3,145				3,145
	Amount allocated to participating securities				112				109				243				236
FFO available to all equityholders - diluted					49,471				48,380				96,495				94,441
	Transaction costs(1)				-				38				15				38
	(Gain) loss on debt satisfaction, net				-				(1,143	-			299				(793	-
Adjusted Company FFO available to all equityholders - diluted					49,471				47,275				96,809				93,686
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
	Straight-line adjustments				(2,343	-			(2,068	-			(2,969	-			(3,027	-
	Lease incentives				672				453				1,172				899
	Amortization of above/below market leases				59				(756	-			(243	-			(1,871	-
	Lease termination payments, net				(76	-			(123	-			(152	-			1,477
	Non-cash interest expense				1,066				1,064				2,091				2,143
	Non-cash charges, net				3,003				2,960				5,983				6,086
	Capitalized interest and internal costs				(659	-			(292	-			(1,195	-			(511	-
	Second-Generation tenant improvements				-				(5,597	-			-				(6,049	-
	Second-Generation lease costs				(13,948	-			(620	-			(13,969	-			(2,356	-
	Joint venture and noncontrolling interest adjustment				(1,160	-			13				(1,645	-			(44	-
Company Funds Available for Distribution				-	36,085			-	42,309			-	85,882			-	90,433
Per Common Share Amounts
Basic:
	FFO			-	0.82			-	0.80			-	1.60			-	1.56
Diluted:
	FFO			-	0.84			-	0.81			-	1.63			-	1.59
	Adjusted Company FFO			-	0.84			-	0.80			-	1.64			-	1.58
Basic:
	Weighted-average common shares outstanding - basic FFO				58,094,324				58,374,448				58,128,487				58,357,922
Diluted:
	Weighted-average common shares outstanding - diluted EPS				58,094,324				58,441,633				58,128,487				58,450,736
	Preferred shares - Series C				942,106				942,114				942,110				942,114
	Weighted-average common shares outstanding - diluted FFO				59,036,430				59,383,747				59,070,597				59,392,850

_{⁽¹⁾ Transaction costs include costs associated with terminated investments, such as non-refundable deposits and legal fees.}