Key Highlights

  • Diluted EPS of USD 1.54 rose from USD 0.59 a year earlier, aided by USD 94.5 million of property gains.
  • Total gross revenues of USD 90.78 million rose 4.5% and topped the consensus estimate of USD 87.29 million.
  • Adjusted Company FFO reached USD 0.89 per diluted share versus USD 0.78, excluding USD 5.6 million of transaction costs.
  • Shareholders approved a USD 61.20 per share cash merger, which is scheduled to close on or about November 2.

LXP Industrial Trust (NYSE:LXP) reported third quarter 2026 Diluted Earnings per Share of USD 1.54, compared with USD 0.59 a year earlier and a consensus estimate of USD 0.0574. Total gross revenues were USD 90.78 million, up from USD 86.90 million and above the consensus estimate of USD 87.29 million. Net Income attributable to common shareholders was USD 90.3 million versus USD 34.6 million, with a USD 94.5 million gain on sale or disposal of real estate accounting for most of the swing.

Operating Detail Behind the Gain-Driven Profit

Rental Revenue rose to USD 89.8 million from USD 85.8 million. Property Operating Expense increased to USD 16.4 million from USD 15.3 million, while interest and amortization expense fell to USD 13.4 million from USD 16.1 million. The company recorded USD 5.6 million of Transaction Costs tied to the Merger and terminated investments, none of which appeared a year earlier.

On a non-GAAP basis, FFO per diluted share was USD 0.79 against USD 0.78, and Adjusted Company FFO per diluted share was USD 0.89 against USD 0.78. The portfolio spans about 107 consolidated properties in 13 states with 51.8 million square feet, and it was 97.0% leased. The company completed 4.2 million square feet of second generation leases and extensions, lifting base rents by 42.8% and cash base rents by 34.3%.

Merger Terms and Balance Sheet

Under a merger agreement dated July 19, 2026 with affiliates of Brookfield Asset Management Ltd., each common share converts into USD 61.20 in cash. Series C Preferred Shares convert into preferred units, which a second step merger would exchange for the USD 50.00 Liquidation preference plus accrued and cumulative unpaid dividends. Shareholders approved the transaction on October 26, 2026, and the company suspended its regular common Dividend under the agreement.

The company sold interests in three properties covering six facilities for USD 156.6 million during the quarter, and bought out a joint venture partner for USD 10.9 million. Cash stood at USD 110.3 million and the company cited USD 600.0 million of revolving Credit Facility capacity, subject to covenant compliance. Secured Debt was USD 45.6 million, with no Mortgage balloon payments due until 2031.

Signposts Around the Closing Date

The closing date of on or about November 2, 2026 is the main dated item, along with the other customary closing conditions that remain outstanding. The treatment of the Series C preferred, including the USD 50.00 liquidation preference plus cumulative dividends in arrears, is tied to the second step merger.

Operating markers include 97.0% leased status, the 42.8% base rent gain on second generation leasing, and nine month Cash Flow from operations of USD 144.9 million compared with USD 146.8 million. The company also cited USD 475.8 million of guaranteed non-recourse debt of non-consolidated entities, which it described as carrying a remote likelihood of payments.