Executive Summary

Q1 2025 revenue rose to $88.9M (+3.0% YoY) and diluted EPS was $0.06, aided by a $24.6M gain on sale; Adjusted Company FFO/share held at $0.16 .
Same-store NOI increased 5.2% YoY, with strong leasing outcomes (1.1M sf extensions; +58.9% cash rent in Phoenix) and stabilized portfolio 93.3% leased (99.5% excluding first-generation vacancy) .
Guidance: Net income per diluted share raised to $0.12–$0.16 for FY2025; Adjusted Company FFO/share reaffirmed at $0.61–$0.65; same-store NOI growth maintained at 3%–4% .
Balance sheet: net debt/Adjusted EBITDA at 5.9x; $50M term loan repayment; weighted-average interest rate 3.96%, maturity 5.3 years .
Catalysts: Big-box lease-up and redevelopment (Richmond) with mid-teens expected yield, plus subsequent lease of 1.1M sf in Greenville/Spartanburg at ~$5.50/sf with ~8% cash yield .

What Went Well and What Went Wrong

What Went Well

Same-store NOI growth of 5.2% with same-store portfolio 99.2% leased; Adjusted Company FFO/share steady at $0.16 .
Leasing wins: Phoenix 540k sf renewal (+59% cash rent, 3.25% escalators) and Mars Atlanta extension to 2030 (4% escalators) .
Management confidence and strategic focus: “We remain focused on increasing occupancy… executing on our 12-market investment strategy… we believe our portfolio’s asset quality… positions us well” .
Capital recycling and balance sheet actions: $35.0M Q1 disposition at 6.9% GAAP cap rate; $39.6M subsequent sale; $50M term loan repayment .

What Went Wrong

Slower leasing cadence and longer tenant decision cycles; management expects lower tenant retention in 2025 vs 2024 .
Tariff uncertainty creating near-term demand caution and a temporary “pencils down” stance on dispositions .
Big-box vacancies remain a key dependency for hitting the high end of FFO guidance; management frames 2025 outcomes around whether 3 large boxes commence in H2 .

Financial Results

Income Statement and Operating Metrics (comparative)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Gross Revenues ($USD Millions)	$85.57	$100.85	$88.86
Net Income attributable to common ($USD Millions)	$4.69	$31.39	$17.28
Diluted EPS ($)	$0.02	$0.11	$0.06
Adjusted Company FFO/share (Diluted) ($)	$0.16	$0.16	$0.16
Same-Store NOI Growth (%)	5.4%	4.1%	5.2%

Occupancy and Credit KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Stabilized Portfolio % Leased	93.2%	93.6%	93.3%
% Leased excl. first-gen vacancy	—	—	99.5%
Net Debt / Adjusted EBITDA (x)	6.1x	5.9x	5.9x
Weighted-Avg Interest Rate (%)	—	3.68%	3.96%
Weighted-Avg Term to Maturity (yrs)	—	5.5	5.3

Estimate Comparison (Q1 2025)

Metric	Actual	S&P Global Consensus	vs Consensus
Total Gross Revenues ($USD Millions)	$88.86	$84.81*	Beat
Diluted EPS ($)	$0.06	-$0.1637*	Beat
Adjusted Company FFO/share (Diluted) ($)	$0.16	N/A*	N/A

Values with asterisk retrieved from S&P Global.

Narrative: Revenue beat reflects contributions from acquisitions, rent increases, and stabilized development projects, partially offset by property sales; EPS benefited from the $24.6M gain on sale of real estate in Q1 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income per diluted share	FY2025	$0.01–$0.05	$0.12–$0.16	Raised
Adjusted Company FFO/share (Diluted)	FY2025	$0.61–$0.65	$0.61–$0.65	Maintained
Same-Store NOI Growth	FY2025	3%–4% (commentary)	3%–4% (reiterated)	Maintained
G&A Expense	FY2025	—	$39–$41M (expectation)	Provided (unchanged)
Common Dividend per share	Quarterly	$0.135 (Q4/Q1)	$0.135 (Q2)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Tariffs/Macro	Focus on fixing floating-rate debt; macro steady; swaps increased fixed debt to 94% for 2025–2026	“Industrial fundamentals held relatively steady despite tariff uncertainty… we remain cautious in the near term”	Caution rising due to trade policy uncertainty
Leasing cadence/retention	0.7M sf in Q3; 4.5M sf in 2024; escalators increased	1.1M sf extensions; slower cadence; expect lower retention in 2025 vs 2024	From robust to more selective/cautious
Big-box lease-up	Leased 250k sf spec in Columbus (8.5% yield)	3 big boxes are priority; yields unchanged (~6%) if stabilized; 1.1M sf GSP leased post-Q1 (~8% cash yield)	Improving with subsequent lease, high strategic priority
Sunbelt/market focus	Ongoing concentration and acquisitions in target markets	12-market strategy; 85% assets in Sunbelt/lower Midwest; onshoring tailwinds	Consistent focus; favorable structural drivers
Balance sheet	Net debt/Adj EBITDA 6.1x (Q3), 5.9x (Q4)	5.9x; $50M term loan repaid; strong cash	Stable leverage, liquidity improved

Management Commentary

“Our 2025 is off to a good start… focused on increasing occupancy… executing on our 12‑market investment strategy… portfolio’s asset quality… positions us well” — CEO T. Wilson Eglin .
“Adjusted company FFO in the first quarter of $0.16 per diluted share… same-store NOI growth was 5.2%… low-end of guidance assumes we do not lease any of the big boxes in 2025; high-end represents all 3 big box leases commencing in H2” — CFO Nathan Brunner .
“Year-to-date, we’ve opportunistically sold 2 industrial assets for ~$75M at avg cash cap rate 4.1%… we like cash a lot and will wait and see” — CEO T. Wilson Eglin .
Richmond redevelopment: “Incremental rent ~$700k per annum on ~$5M capital → mid-teens yield” — CFO Nathan Brunner .

Q&A Highlights

Retention & expirations: 2025 retention could be lower; 2026 expirations back-end weighted; mark-to-market opportunities remain attractive .
Big-box leasing economics: Face rents steady; concessions increased (free rent ~1 month/year; TI mid-single to low double digits); stabilization yield ~6% unchanged .
Dispositions: Temporary pause amid tariff-policy uncertainty despite strong sales earlier in the year .
Richmond redeployment: Strategy consistent; redevelopment excluded from same-store guidance; timing in late Q1 had no impact on Q1 same-store .
Nissan renewals (2027 risk lens): Facilities tightly integrated with plants; significant tenant investments; preferential renewal options; high probability of retention per management .
E-commerce demand: Large retailers and Amazon activity picking up; potential support for leasing of large developments .

Estimates Context

Q1 2025 beat Street on both revenue and EPS: Revenue $88.86M vs $84.81M*; EPS $0.06 vs -$0.1637*; FFO/share was $0.16 (quarterly FFO/share consensus not reliably available on a quarterly basis) .
Forward quarterly consensus (directional context): Revenue Q3 2025 $87.11M (actual backfill from prior quarters $86.90M), Q4 2025 $86.08M; EPS (Primary) Q3 2025 est -$0.052 (actual prior -$0.194), Q4 2025 est -$0.069*; number of revenue estimates is limited (3–4), underscoring low coverage breadth*.
Values with asterisk retrieved from S&P Global.

Where estimates may adjust:

Upward pressure on revenue and FFO for H2 2025 given the subsequent lease of ~1.1M sf in GSP at ~$5.50/sf (~8% cash yield) and embedded mark-to-market on renewals .
EPS volatility likely given property sales gains; Street should focus on FFO/share trajectory tied to big-box commencements per guidance framework .

Key Takeaways for Investors

Execution remains solid: same-store NOI +5.2%, durable rent growth and escalators, and strategic capital recycling; FFO/share steady at $0.16 despite macro uncertainty .
Outcome dispersion for FY2025 hinges on big-box commencements in H2; high-end of FFO/share guidance assumes all 3 commence — monitor leasing updates for these assets closely .
Post-quarter leasing of 1.1M sf (GSP) at ~$5.50/sf and ~8% cash yield is a tangible step toward earnings growth; expect incremental H2 contribution to Base Rent and reimbursements .
Net income guidance raised materially ($0.12–$0.16) while Adjusted Company FFO/share is reaffirmed ($0.61–$0.65), signaling stability of core cash earnings and some uplift from capital transactions .
Balance sheet headroom: net debt/Adjusted EBITDA 5.9x, weighted-average interest rate ~3.96% and term ~5.3 years; $50M term loan repayment supports interest expense control .
Macro watch: tariff uncertainty has elongated tenant decisions and paused dispositions; however, Sunbelt/lower Midwest exposure and onshoring tailwinds (auto/semis/pharma) support medium-term demand .
Near-term trading implications: Subsequent leasing and any big-box commencements or marquee tenant renewals (e.g., Nissan) are likely to drive sentiment; monitor quarterly leasing summary and same-store NOI trajectory .

Notes:
- All company-reported figures and commentary are cited to LXP’s Q1 2025 press release, 8-K, supplemental, and the Q1 2025 earnings call.
- S&P Global consensus values are marked with an asterisk and may reflect limited analyst coverage; FFO/share quarterly consensus was not reliably available.

Sources

Q1 2025 press release and tables:
8-K (Item 2.02 and supplemental exhibits):
Q1 2025 earnings call (prepared & Q&A):
Prior quarters’ releases for trend: Q4 2024 ; Q3 2024
Subsequent press releases: 1.1M sf lease (GSP) ; dividend declaration

S&P Global estimate data: Primary EPS Consensus Mean; Revenue Consensus Mean; Revenue - # of Estimates; Primary EPS - # of Estimates; periods Q1 2025, Q3–Q4 2025.*

LXP Industrial Trust (LXP)·Q1 2025 Earnings Summary