LXP Industrial Trust (LXP) announces $550 million joint venture.

LXP Industrial Trust (LXP) announced today that it has contributed 22 manufacturing-oriented industrial properties valued at $550 million to a new joint venture with an affiliate of Davidson Kempner Capital Management.  LXP will retain a 20% interest in the JV.  LXP also said that the joint venture has obtained a $381 million mortgage secured by 21 assets, and assumed a $26 million mortgage on a single property.  The combined financings result in an approximate 74% leverage ratio based on a cash capitalization rate of 7.2%.

T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, “We believe this recapitalization will unlock significant value by focusing LXP as a pure-play, single-tenant industrial REIT that develops and acquires warehouse and distribution facilities primarily leased to a single tenant, while the new joint venture builds on our institutional fund management capabilities. We are confident that LXP is well positioned to capitalize on substantial growth opportunities and benefit from strong market fundamentals and robust tenant demand as we continue to leverage our presence in our target markets and best-in-class asset management platform. We remain focused on evaluating and executing on opportunities to maximize shareholder value.”

Established in 1973, LXP Industrial is an equity REIT focusing on industrial properties operated under long-term leases. The current portfolio includes 138 properties in 28 states with 57.7 million square feet of GLA. As of September 30, 2021, the portfolio was 98.9% leased with an average remaining lease term of 6.6 years. LXP is a member of the S&P SmallCap 600 index with a total market capitalization of $5.3 billion.