Lexington Realty Trust (LXP) Suspends Strategic Alternatives Process

LXP Industrial Trust (NYSE: LXP) (“LXP” or the “Company”), a real estate investment trust (REIT) focused on single-tenant warehouse/distribution real estate investments, today announced that its Board of Trustees has unanimously determined to suspend the Company’s previously announced evaluation of strategic alternatives.

The LXP Board of Trustees (the “Board”), with the support of its independent financial and legal advisors, conducted a robust and thorough review process and held discussions with a wide array of strategic and financial investors regarding potential alternatives, including a sale or merger of the Company and other transactions. The feedback from multiple potential counterparties reaffirmed the attractiveness of the Company’s portfolio and validated LXP’s transformation strategy. The feedback also cited the significant changes to macroeconomic, geopolitical and financing conditions since the commencement of the review process on February 8, 2022, which have meaningfully impacted the M&A environment.

Accordingly, the Board has unanimously determined that the best path forward for shareholders at this time is for LXP to continue to operate as an independent company and execute its growth strategy while completing the final stages of its portfolio transformation and capitalizing on the mark-to-market opportunity embedded in its portfolio. As such, the Board has suspended the review process. The LXP Board and management team are committed to maximizing shareholder value and remain open to all opportunities to achieve this objective.

Richard S. Frary, Lead Independent Trustee of the Board, commented, "Following a thorough evaluation of alternatives the LXP Board determined that, the continued execution of LXP’s strategy remains the best path to enhance shareholder value at this time. As we continue to execute our disciplined growth strategy to build on our strong momentum, we will remain open to all alternatives to maximize shareholder value."

T. Wilson Eglin, Chairman, Chief Executive Officer and President of LXP, commented further, “Over the last five years, we have successfully transformed LXP into a leading, predominantly single-tenant industrial REIT with a much stronger portfolio and driven relative outperformance and substantial shareholder value. Throughout the strategic review process, we received clear feedback reaffirming the merits of LXP’s strategy and transformation, which has created a robust platform for continued growth.”

First Quarter Leasing Activity Update and 2022 Guidance

Additionally, LXP announced a leasing activity update for the first quarter of 2022, with new and renewal leases totaling 2.3 million square feet executed in its warehouse/distribution portfolio. This leasing activity resulted in Base and Cash Base rental increases of 27.7% and 18.1%, respectively.

Further, LXP announced its net income attributable to common shareholders per diluted common share for the year ended December 31, 2022 is expected to be within a range of $0.31 to $0.35, and its Adjusted Company Funds From Operations available to all equity holders and unitholders - diluted (“Adjusted Company FFO”) - for the year ended December 31, 2022 is expected to be within a range of $0.64 to $0.68 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations. Adjusted Company FFO is a non-GAAP financial measure, which is defined and reconciled later in this press release.

LXP expects to announce its first quarter 2022 earnings results on May 5, 2022 and host a conference call the same day. Conference call and webcast details will be released in the coming weeks.

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