Lexington Realty Trust Stock Earnings Reports

Key points for investors: LXP reported solid first-quarter operational and leasing momentum, executing 3.2 million square feet of new leases and renewals year-to-date and leasing over 300,000 square feet of vacancy. The company highlighted strong performance in its target markets (Phoenix, Indianapolis, Houston, Dallas-Fort Worth, Atlanta, Columbus) and a forward pipeline of ~7.4 million square feet of development/redevelopment leasing opportunities through 2027. Notable development progress includes construction on a 1.2 million sq ft Phoenix project and potential additional development capacity in Columbus (site capacity ~1.25 million sq ft). Leasing outcomes include meaningful mark-to-market rent increases (examples: 34% base and 24% cash-based increases on certain leases; average ~25% cash rental increase on addressed 2026 expirations). Financials: Q1 adjusted company FFO was ~$47 million, or $0.80 per diluted share (up 2.6% year-over-year); same-store NOI grew 2% for the quarter. The company reaffirmed 2026 guidance: adjusted company FFO $3.22–$3.37/share and same-store NOI growth of 1.5%–2.5%. Balance sheet remains strong with net debt/annualized adjusted EBITDA of 5.1x, $1.3 billion cash on hand, an undrawn $600 million revolver, and recent refinancing that extended maturities and reduced interest costs. Capital allocation: preference for funding development via opportunistic asset sales (and selective acquisitions via 1031 exchanges); opportunistic share buybacks continue (325,000 shares repurchased in Q1 at average $48.70). Management expects to address the remaining near-term expirations with high renewal rates, is pursuing predevelopment and build-to-suit options (especially for Columbus and Phoenix), and sees growing demand from data-center-adjacent and advanced manufacturing tenants.