Lexington Realty Trust Stock Earnings Reports

LXP reported a strong Q3 driven by the sale of two vacant development projects (Central Florida and Indianapolis) for a combined $175 million, producing $151 million net proceeds that were used to tender $140 million of 6.75% senior notes due 2028. The sale (20% premium to gross book value) increased portfolio occupancy (~+370 bps to 96.8%), reduced net debt to adjusted EBITDA from 5.8x to 5.2x, and is estimated to generate ~6% accretion to adjusted company FFO per share (Q3 adjusted company FFO was $0.16 per diluted common share). Management tightened 2025 adjusted company FFO guidance to $0.63–$0.64 per share reflecting the accretive sale and debt repayment. Same-store NOI grew 2% in Q3 and guidance for full-year same-store NOI was narrowed to 3.0%–3.5%. The company announced a 3.7% annualized dividend increase ($0.02) to $0.56 pre-split and a 1-for-5 reverse stock split effective Nov 10. Leasing momentum: notable new/renewal leases include a 380k sq ft new 10-year lease in Indianapolis (34% rent increase vs prior) and progress on 2026 expirations (27% addressed with ~31% average base rent increase on those actions). Portfolio and market positioning: LXP emphasizes a young, mostly Class A portfolio focused on 12 Sunbelt/Lower Midwest target markets (~85% of assets) with strong net absorption and limited new construction in those markets. Management is prioritizing internal growth (rent escalators, mark-to-market leasing, selective build-to-suit/spec on land bank) while continuing opportunistic dispositions in non-target markets (~$115M marketed). Balance sheet liquidity was ~$230M at quarter end (~$80M pro forma for the tender).