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Globe and Mail
4 hours ago
- Business
- Globe and Mail
LXP Industrial Trust Reports Second Quarter 2025 Results
WEST PALM BEACH, FL, July 30, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust ('LXP') (NYSE:LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced results for the quarter ended June 30, 2025. Second Quarter 2025 Highlights Recorded Net Income attributable to common shareholders of $27.5 million, or $0.09 per diluted common share. Generated Adjusted Company Funds From Operations available to all equityholders - diluted ('Adjusted Company FFO') of $47.3 million, or $0.16 per diluted common share. Increased Same-Store NOI 4.7% compared to the same period in 2024. Leased a 1.1 million square foot development project with an initial Cash Base Rent of $5.50 per square foot. Extended 1.3 million square feet of leases year-to-date, increasing Base and Cash Base Rents by 41.5% and 46.2%, respectively, including 120,000 square feet of leases in the quarter, increasing Base and Cash Base Rents by 18.2% and 18.1%, respectively. Commenced redevelopment of a 350,000 square foot warehouse facility. Repurchased $28.1 million of the Company's Trust Preferred Securities at a 5.0% discount to par value. Disposed of one warehouse facility for $39.6 million. T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, "We delivered another quarter of solid funds from operations and strong same-store NOI growth. We reached a significant milestone during the quarter with the lease of our 1.1 million square foot development facility in the Greenville/Spartanburg market, which increased occupancy and is expected to contribute approximately $3.7 million to FFO this year. Finally, we sold an industrial asset at a 4.3% cash capitalization rate and utilized a portion of the proceeds to repurchase $28 million of our floating-rate Trust Preferred Securities at a 5% discount to par value, further reducing leverage and increasing our hedged and fixed-rate debt to 99% in 2025 and 2026." FINANCIAL RESULTS Revenues For the quarter ended June 30, 2025, total gross revenues were $87.7 million, compared with total gross revenues of $85.8 million for the quarter ended June 30, 2024. The increase is primarily attributable to revenue from acquisitions, rent increases and stabilized development projects, offset by property sales. Net Income Attributable to Common Shareh olders For the quarter ended June 30, 2025, net income attributable to common shareholders was $27.5 million, or $0.09 per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2024 of $3.8 million, or $0.01 per diluted share. Adjusted Company FFO For the quarter ended June 30, 2025, LXP generated Adjusted Company FFO of $47.3 million, or $0.16 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2024 of $46.9 million, or $0.16 per diluted share. Dividends LXP previously announced that it declared a regular quarterly common share dividend for the quarter ended June 30, 2025 of $0.135 per common share which was paid on July 15, 2025 to common shareholders of record as of June 30, 2025. LXP also announced that it declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred") for the quarter ended June 30, 2025, which is expected to be paid on August 15, 2025 to shareholders of record as of July 31, 2025. The property above sold at GAAP and Cash capitalization rates of 4.5% and 4.3%, respectively. Total consolidated year-to-date 2025 property disposition volume was $74.6 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.6% and 4.1%, respectively. Project (% owned) # of Buildings Market Estimated Sq. Ft. Estimated Project Cost GAAP Investment Balance as of 6/30/2025 (1) LXP Amount Funded as of 6/30/2025 (2) Estimated Completion Date % Leased as of 6/30/2025 Redevelopment Projects Orlando (100%) (3) 1 Central, FL 350,990 $ 9,400 $ 14,303 $ 254 1Q 2026 —% Richmond (100%) (4) 1 Richmond, VA 252,351 3,700 11,244 201 1Q 2026 —% Total Redevelopment Projects 2 603,341 $ 13,100 $ 25,547 $ 455 Land Infrastructure Improvements Reems & Olive (95.5%) (5) N/A Phoenix, AZ N/A 15,381 8,188 8,446 N/A N/A Total 2 603,341 $ 28,481 $ 33,735 $ 8,901 Excludes leasing costs, incomplete costs and developer incentive fees or partner promotes if any. Excludes noncontrolling interests' share. During the quarter ended June 30, 2025, the tenant vacated the building and LXP began redeveloping the property. During the quarter ended March 31, 2025, the tenant vacated the building, which is part of a four building integrated campus, and LXP began redeveloping the property into a standalone warehouse and distribution facility. Represents infrastructure development costs to prepare the land for vertical development. Project (% owned) Market Approximate Acres GAAP Investment Balance as of 6/30/2025 ($000) LXP Amount Funded as of 6/30/2025 ($000) (1) Consolidated: Reems & Olive (95.5%) Phoenix, AZ 315 $ 75,352 $ 74,239 Mt. Comfort Phase II (80%) Indianapolis, IN 116 5,861 4,738 ATL Fairburn (100%) Atlanta, GA 14 1,732 1,768 Total Consolidated Land Projects 445 $ 82,945 $ 80,745 Project (% owned) Market Approximate Acres GAAP Investment Balance as of 6/30/2025 ($000) LXP Amount Funded as of 6/30/2025 ($000) (1) Non-consolidated: Etna Park 70 (90%) Columbus, OH 48 $ 9,871 $ 11,695 Etna Park 70 East (90%) Columbus, OH 21 2,381 3,062 Total Non-Consolidated Land Projects 69 $ 12,252 $ 14,757 Excludes noncontrolling interests' share. LEASING During the second quarter of 2025, LXP executed the following new and extended leases: NEW LEASES - FIRST GENERATION Location Lease Expiration Date Sq. Ft. 1 Greer, SC 05/27 1,091,888 1 TOTAL NEW LEASES - FIRST GENERATION 1,091,888 LEASE EXTENSIONS - SECOND GENERATION Location Prior Term New Lease Expiration Date Sq. Ft. 1 Adairsville, GA 09/25 11/30 100,960 2 Minneapolis, MN 12/25 12/35 18,620 2 TOTAL EXTENDED LEASES - SECOND GENERATION 119,580 As of June 30, 2025, LXP's stabilized portfolio was 94.1% leased and was 98.4% leased, excluding first-generation space available for lease. A total of 2.4 million square feet of first-generation and extended second-generation leases were entered into during the six months ended June 30, 2025 with Base and Cash Base Rents on second-generation leases increasing by 41.5% and 46.2%, respectively. (1) 1. Excludes an additional two-year extension to 2030 at a 605,000 square foot facility in Austell, GA completed in the first quarter of 2025. BALANCE SHEET LXP ended the quarter with net debt to Adjusted EBITDA of 5.8x. During the quarter, LXP repurchased $28.1 million of Trust Preferred Securities at a 5% discount to par value. LXP's total consolidated debt was $1.5 billion at quarter end. Total consolidated debt had a weighted-average term to maturity of 5.0 years and a weighted-average interest rate of 3.9% as of June 30, 2025. 2025 EARNINGS GUIDANCE LXP now estimates that its net income attributable to common shareholders for the year ended December 31, 2025 will be within an expected range of $0.13 to $0.15 per diluted common share. LXP is tightening its estimated Adjusted Company FFO for the year ending December 31, 2025, to be within an expected range of $0.62 to $0.64 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations. SECOND QUARTER 2025 CONFERENCE CALL LXP will host a conference call today, July 30, 2025, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended June 30, 2025. Interested parties may participate in this conference call by dialing 1-888-660-6082 or 1-929-201-6604. Conference ID is 1576583. A replay of the call will be available through August 6, 2025 at 1-800-770-2030 or 1-609-800-9909, pin code for all replay numbers is 1576583. A link to a live webcast of the conference call is available at within the Investors section. ABOUT LXP INDUSTRIAL TRUST LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and lower Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit Contact: Investor or Media Inquiries for LXP Industrial Trust: Heather Gentry, Executive Vice President of Investor Relations LXP Industrial Trust Phone: (212) 692-7200 E-mail: hgentry@ This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under LXP's control which may cause actual results, performance or achievements of LXP to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and 'Risk Factors' in LXP's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation, (2) the outbreak of highly infectious or contagious diseases and natural disasters, (3) authorization by LXP's Board of Trustees of future dividend declarations, (4) LXP's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2025, (5) the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields, (6) the failure to continue to qualify as a real estate investment trust, (7) changes in general business and economic conditions, including the impact of any legislation, (8) competition, (9) inflation and increases in operating costs, (10) labor shortages, (11) supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays, (12) defaults or non-renewals of significant tenant leases, (13) changes in financial markets and interest rates, (14) changes in accessibility of debt and equity capital markets, (15) future impairment charges, (16) international trade disputes or the imposition of significant tariffs or other trade restrictions by the U.S. on imported goods that adversely impact trading volumes and (17) risks related to our investments in our non-consolidated joint ventures. Copies of the periodic reports LXP files with the Securities and Exchange Commission are available on LXP's web site at Forward-looking statements, which are based on certain assumptions and describe LXP's future plans, strategies and expectations, are generally identifiable by use of the words 'believes,' 'expects,' 'intends,' 'anticipates,' 'estimates,' 'projects', 'may,' 'plans,' 'predicts,' 'will,' 'will likely result,' 'is optimistic,' 'goal,' 'objective' or similar expressions. Except as required by law, LXP undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that LXP's expectations will be realized. References to LXP refer to LXP Industrial Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors. Non-GAAP Financial Measures - Definitions LXP has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures. LXP believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles ('GAAP'), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating LXP's financial performance or cash flow from operating, investing or financing activities or liquidity. Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest expense, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of real estate or changes in control, impairment charges, gain (loss) on debt satisfaction, net, non-cash charges, net, straight-line adjustments, non-recurring charges, the non-cash purchase option impact of sales-type leases and adjustments for pro rata share of non-wholly owned entities. LXP's calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. LXP believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA. Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio. Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements, non-cash sales-type lease income and lease termination income, and includes ancillary income. LXP believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs. Company Funds Available for Distribution ('FAD'): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash income related to sales-type leases, (6) non-cash interest, (7) non-cash charges, net, (8) capitalized interest and internal costs, (9) cash paid for second-generation tenant improvements, and (10) cash paid for second-generation lease costs. Although FAD may not be comparable to that of other real estate investment trusts ('REITs'), LXP believes it provides a meaningful indication of its ability to fund its cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity. First-Generation Costs: Represents cash spend for tenant improvements, leasing costs and expenditures contemplated at acquisition for recently acquired properties with vacancy. Because all companies do not calculate First Generation Costs the same way, LXP's presentation may not be comparable to similarly titled measures of other companies. Funds from Operations ('FFO') and Adjusted Company FFO: LXP believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. LXP believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income. The National Association of Real Estate Investment Trusts, or Nareit, defines FFO as 'net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.' FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. LXP presents FFO available to common shareholders - basic and also presents FFO available to all equityholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into LXP's common shares, are converted at the beginning of the period. LXP also presents Adjusted Company FFO available to all equityholders - diluted which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of LXP's real estate portfolio and not comparable from period to period. LXP believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of LXP's operating performance or as an alternative to cash flow as a measure of liquidity. GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of LXP's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate, (or has generated) divided by the acquisition/completion cost, (or sale price). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy excluding developer incentive fees or partner promotes, if any. Net Operating Income ('NOI'): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of LXP's historical or future financial performance, financial position or cash flows. LXP defines NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash and purchase option income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, LXP's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. LXP believes that net income is the most directly comparable GAAP measure to NOI. Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for the period commencing January 1, 2024 and through the end of the current reporting period. As Same-Store NOI excludes the change in NOI from acquired, expanded, disposed of properties and properties with significant casualty loss, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, LXP's Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of LXP's operating performance. However, Same-Store NOI should not be viewed as an alternative measure of LXP's financial performance since it does not reflect the operations of LXP's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of LXP's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact LXP's results from operations. LXP believes that net income is the most directly comparable GAAP measure to Same-Store NOI. Second-Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation. LXP believes that second-generation building improvements represent an investment in existing stabilized properties. Stabilized Portfolio: All real estate properties other than non-stabilized properties. LXP considers stabilization to occur upon the earlier of 90% occupancy of the property or one year from the cessation of major construction activities. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction. If some portions of a development project are substantially complete and ready for use and other portions have not yet reached that stage, LXP ceases capitalizing costs on the completed portion of the project but continues to capitalize costs for the incomplete portion. When a portion of the development project is substantially complete and ready for its intended use, the project is placed in service and depreciation commences. LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Gross revenues: Rental revenue $ 86,744 $ 84,768 $ 174,637 $ 169,975 Other revenue 975 1,018 1,945 2,062 Total gross revenues 87,719 85,786 176,582 172,037 Expense applicable to revenues: Depreciation and amortization (49,362) (48,347) (99,874) (95,856) Property operating (15,875) (15,482) (33,004) (30,670) General and administrative (9,630) (9,248) (20,020) (18,741) Non-operating income 744 2,734 1,264 6,503 Interest and amortization expense (16,467) (17,603) (32,747) (34,587) Gain on debt satisfaction, net 1,143 — 793 — Transaction costs (38) (498) (38) (498) Change in allowance for credit loss — (14) — (9) Gain on sale or disposal of, and recovery on, real estate, net 31,320 8,352 55,955 8,352 Gain on change in control of a subsidiary — 209 — 209 Income before provision for income taxes and equity in losses of non-consolidated entities 29,554 5,889 48,911 6,740 Provision for income taxes (199) (83) (414) (208) Equity in losses of non-consolidated entities (958) (1,005) (1,938) (2,286) Net income 28,397 4,801 46,559 4,246 Net loss attributable to noncontrolling interests 735 625 1,551 911 Net income attributable to LXP Industrial Trust shareholders 29,132 5,426 48,110 5,157 Dividends attributable to preferred shares - Series C (1,573) (1,573) (3,145) (3,145) Allocation to participating securities (109) (78) (236) (168) Net income attributable to common shareholders $ 27,450 $ 3,775 $ 44,729 $ 1,844 Net income attributable to common shareholders - per common share basic $ 0.09 $ 0.01 $ 0.15 $ 0.01 Weighted-average common shares outstanding - basic 291,872,243 291,403,985 291,789,613 291,346,184 Net income attributable to common shareholders - per common share diluted $ 0.09 $ 0.01 $ 0.15 $ 0.01 Weighted-average common shares outstanding - diluted 292,208,168 291,615,350 292,253,680 291,451,866 LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share data) June 30, 2025 December 31, 2024 Assets: Real estate, at cost $ 4,126,352 $ 4,176,294 Real estate - intangible assets 313,296 318,444 Land held for development 82,945 82,827 Investments in real estate under construction 33,735 5,947 Real estate, gross 4,556,328 4,583,512 Less: accumulated depreciation and amortization (1,111,597) (1,047,166) Real estate, net 3,444,731 3,536,346 Right-of-use assets, net 14,250 16,484 Cash and cash equivalents 70,976 101,836 Restricted cash 247 237 Investments in non-consolidated entities 38,416 40,018 Deferred expenses, net 38,227 39,820 Rent receivable - current 3,149 2,052 Rent receivable - deferred 85,301 85,757 Other assets 21,833 20,762 Total assets $ 3,717,130 $ 3,843,312 Liabilities and Equity: Liabilities: Mortgages and notes payable, net $ 52,260 $ 54,930 Term loan payable, net 248,615 297,814 Senior notes payable, net 1,090,411 1,089,373 Trust preferred securities, net 100,074 127,893 Dividends payable 41,544 41,164 Operating lease liabilities 14,730 17,114 Accounts payable and other liabilities 53,681 57,055 Accrued interest payable 10,337 10,517 Deferred revenue - including below-market leases, net 4,873 6,751 Prepaid rent 14,431 19,918 Total liabilities 1,630,956 1,722,529 Commitments and contingencies Equity: Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares: Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding 94,016 94,016 Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 295,756,383 and 294,499,790 shares issued and outstanding in 2025 and 2024, respectively 30 29 Additional paid-in-capital 3,320,069 3,315,104 Accumulated distributions in excess of net income (1,351,361) (1,316,993) Accumulated other comprehensive income 1,601 6,136 Total shareholders' equity 2,064,355 2,098,292 Noncontrolling interests 21,819 22,491 Total equity 2,086,174 2,120,783 Total liabilities and equity $ 3,717,130 $ 3,843,312 EARNINGS PER SHARE (Unaudited and in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 EARNINGS PER SHARE: Basic: Net income attributable to common shareholders $ 27,450 $ 3,775 $ 44,729 $ 1,844 Weighted-average number of common shares outstanding - basic 291,872,243 291,403,985 291,789,613 291,346,184 Net income attributable to common shareholders - per common share basic $ 0.09 $ 0.01 $ 0.15 $ 0.01 Diluted: Net income attributable to common shareholders - basic $ 27,450 $ 3,775 $ 44,729 $ 1,844 Weighted-average common shares outstanding - basic 291,872,243 291,403,985 291,789,613 291,346,184 Effect of dilutive securities: Unvested share-based payment awards 335,925 211,365 464,067 105,682 Weighted-average common shares outstanding - diluted 292,208,168 291,615,350 292,253,680 291,451,866 Net income attributable to common shareholders - per common share diluted $ 0.09 $ 0.01 $ 0.15 $ 0.01 LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION (Unaudited and in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders $ 27,450 $ 3,775 $ 44,729 $ 1,844 Adjustments: Depreciation and amortization - real estate 47,725 46,937 96,547 93,145 Amortization of leasing commissions 1,637 1,410 3,327 2,711 Joint venture and noncontrolling interest adjustment 1,206 1,540 2,412 3,103 Gain on sale or disposal of, and recovery on, real estate, net (31,320) (8,635) (55,955) (8,635) Gain on change in control of a subsidiary — (209) — (209) FFO available to common shareholders - basic 46,698 44,818 91,060 91,959 Preferred dividends 1,573 1,573 3,145 3,145 Amount allocated to participating securities 109 78 236 168 FFO available to all equityholders - diluted 48,380 46,469 94,441 95,272 Allowance for credit loss — 14 — 9 Transaction costs, including our share of non-consolidated entities (1) 38 518 38 518 (Gain) loss on debt satisfaction, net, including our share of non-consolidated entities (1,143) 3 (793) 3 Noncontrolling interest adjustments — (100) — (100) Adjusted Company FFO available to all equityholders - diluted 47,275 46,904 93,686 95,702 FUNDS AVAILABLE FOR DISTRIBUTION: Adjustments: Straight-line adjustments (2,068) (1,674) (3,027) (4,376) Lease incentives 453 330 899 468 Amortization of above/below market leases (756) (457) (1,871) (906) Lease termination payments, net (123) — 1,477 — Sales-type lease non-cash income — (610) — (1,202) Non-cash interest 1,064 1,145 2,143 2,307 Non-cash charges, net 2,960 2,399 6,086 4,850 Capitalized interest and internal costs (292) (1,005) (511) (3,061) Second-Generation tenant improvements (5,597) (6) (6,049) (459) Second-Generation lease costs (620) (8,160) (2,356) (9,254) Joint venture and noncontrolling interest adjustment 13 (148) (44) (113) Company Funds Available for Distribution $ 42,309 $ 38,718 $ 90,433 $ 83,956 Per Common Share Amounts Basic: FFO $ 0.16 $ 0.15 $ 0.31 $ 0.32 Diluted: FFO $ 0.16 $ 0.16 $ 0.32 $ 0.32 Adjusted Company FFO $ 0.16 $ 0.16 $ 0.32 $ 0.32 Basic: Weighted-average common shares outstanding - basic FFO 291,872,243 291,403,985 291,789,613 291,346,184 Diluted: Weighted-average common shares outstanding - diluted EPS 292,208,168 291,615,350 292,253,680 291,451,866 Preferred shares - Series C 4,710,570 4,710,570 4,710,570 4,710,570 Weighted-average common shares outstanding - diluted FFO 296,918,738 296,325,920 296,964,250 296,162,436 (1) Transaction costs, including costs associated with terminated investments, such as non-refundable deposits and legal costs. (1) Assumes all convertible securities are dilutive.
Forbes
4 hours ago
- Business
- Forbes
How To Deal With Four Common Traps That Sabotage AI Success
Stoyan Mitov is the CEO of Dreamix, a custom software development company helping tech leaders increase capacity without giving up quality. As AI becomes increasingly central to business operations in 2025, I've witnessed a troubling pattern: Despite massive investments, 74% of companies still struggle to achieve meaningful value from their AI initiatives, according to BCG research. After dozens of AI implementations at our software development company, I've identified the most common misconceptions that consistently derail projects, often before organizations even realize they're off track. Trap 1: 'AI Will Fix Everything' I often encounter the belief that AI is a silver bullet for organizational problems. Last year, we worked with a manufacturing client who insisted AI would solve their inventory management issues. Three months in, we discovered the real problem wasn't forecasting—it was inconsistent data entry by warehouse staff. This reflects a broader misconception that AI can compensate for broken processes or poor data hygiene. In my experience, AI tends to amplify what's already there, both strengths and weaknesses. If your manual processes are chaotic, AI will make them chaotically automated. The reality check: Before implementing any AI solution, we now work with clients to understand their current processes thoroughly. If you wouldn't trust a new employee to succeed with your existing workflow, AI may face similar challenges in delivering meaningful results. Trap 2: 'More Data Is Always Better' Another costly mistake I see repeatedly is the assumption that AI requires massive datasets to be effective. Organizations often spend months trying to compile comprehensive historical data, believing that more information will automatically lead to better AI performance. In reality, the quality and relevance of data matter far more than quantity. Poor data quality costs organizations an average of $12.9 million annually, and it is estimated that 80% of the effort in machine learning projects is spent on ensuring data quality. Clean, consistent data from a shorter period often outperforms larger datasets with quality issues. I've seen companies achieve meaningful results with focused, high-quality datasets while others struggle despite having years of poorly structured information. The trap here is perfectionism. Organizations delay AI implementation while pursuing data perfection that may never come and often isn't necessary. This can postpone valuable initiatives indefinitely, while competitors move forward with smaller but sufficient datasets that still deliver business value. Trap 3: 'Technical Excellence Guarantees Adoption' Many of the most challenging setbacks I've witnessed stem from treating AI implementation as purely a technical challenge. Organizations often focus entirely on building sophisticated systems while completely overlooking the human side of adoption. What's often missing is that the company culture determines whether AI initiatives succeed or fail. According to EY's research, 50% of senior business leaders report declining company-wide enthusiasm for AI integration, while 54% feel they are failing as leaders amid AI's rapid growth. I've learned to spot the warning signs early: If business stakeholders aren't actively involved in defining success metrics, if end users aren't part of the design process or if leadership talks about AI as something "the IT department is handling," the project is likely headed for trouble. Without buy-in from the people who will actually use the system, even the most technically advanced AI solution can become an expensive digital paperweight. Trap 4: The 'Quick Win' Pressure Cooker Executives often demand immediate results from AI initiatives, creating a dangerous cycle of overpromising and underdelivering. This impatience can be particularly destructive because many AI benefits compound over time, yet leadership may lose confidence and cut funding just as systems are beginning to learn and improve. This rush for immediate returns reflects a broader misunderstanding of how AI value creation works. BCG research shows that AI leaders pursue fewer opportunities than their peers but expect more than twice the ROI by focusing on the most promising initiatives. They understand that sustainable AI success requires patience and commitment rather than scattering resources across multiple quick-win attempts. The most successful organizations resist the pressure to show immediate results across every initiative, instead concentrating their efforts on fewer, more strategic opportunities that can deliver meaningful long-term value. The Self-Assessment That Could Save Your AI Investment Based on these patterns, I've developed a simple diagnostic that reveals whether your organization is walking into these traps: • Can you name exactly which business problem your AI initiative will solve and how you'll measure success? • Are the people who will use the AI system daily involved in its design? • Do you have at least one dataset that your team trusts completely for business decisions? • Is your timeline realistic enough to allow for learning and iteration? • Are you focusing on a few high-impact opportunities rather than experimenting everywhere? If you answered "no" to any of these questions, you're likely setting up your AI initiative for the same struggles that plague 74% of companies. Moving Forward The organizations that achieve 1.5 times higher revenue growth from AI—as BCG research demonstrates—aren't necessarily more technically sophisticated. They're more honest about their limitations and more disciplined about avoiding these common traps. Start small, measure relentlessly and remember that successful AI implementation is as much about changing how people work as it is about changing what technology can do. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
CBS News
2 days ago
- CBS News
$1 million in jewelry taken from Rancho Cucamonga warehouse after burglars ram gate with van
A pair of burglars busted through the door of a Rancho Cucamonga warehouse over the weekend, taking off with approximately $1 million jewelry in a heist that only took minutes earlier this month. Rikko Zakka is a specialty store and warehouse that focuses on imported goods from Japan like cosmetics, toys and jewelry, located on Jersey Boulevard in Rancho Cucamonga. Store owners say that the burglary happened on July 18, the night before they were heading to a jewelry store in Pasadena. They're not sure how the burglars knew of the stockpile inside the warehouse. "Honestly, we have no idea, but they just target it so perfectly," said the store's owner, who wished to remain unidentified. "Before we do not show all the jewelry in one place, we always separate it. But, July 18th, we have to prepare all the jewelry to go to the jewelry show, so we put all the jewelry together to ready for the show and they broke in that night." Video shows the moments that the thieves used a white van to ram the gate of the shop, quickly rushing in to grab items from the warehouse, including a safe, before fleeing. In just four minutes, the burglars made off with $1 million worth of jewelry, store owners say. Now, they're offering a large reward for anyone who can help them retrieve the jewelry. "$100,000, just wanna get all our jewelry back," the say. "Our business just go back five years, we have to restock for our business." On top of the jewelry, owners also say that the thieves made off with merchandise and cell phones. The San Bernardino County Sheriff's Department is investigating the incident, but they have not reported any arrests thus far.
Yahoo
2 days ago
- Business
- Yahoo
PriceSmart, Inc. (NASDAQ:PSMT) Sees 7.1% YoY Growth in Total Revenues in Q3 2025
PriceSmart, Inc. (NASDAQ:PSMT) is one of the The company announced results for the fiscal Q3 2025, wherein its total revenues rose 7.1% to $1.32 billion compared to $1.23 billion in the comparable period of the previous year, with net merchandise sales rising 8.0% YoY to $1.29 billion. PriceSmart, Inc. (NASDAQ:PSMT) has been pursuing opportunities to add new warehouse clubs in the current markets and to assess opportunities in the new markets. Primarily, it is presently evaluating Chile as a potential new market for multiple PriceSmart warehouse clubs. Aerial view of a large discount store showcasing its vast selection of products. PriceSmart, Inc. (NASDAQ:PSMT) continues to strengthen its distribution and logistics infrastructure. It operates major distribution centers in Miami, Costa Rica, and Panama. In FY 2026, the company plans to upgrade its Panama DC to support coal products and to open new DCs in Guatemala, Trinidad, and the Dominican Republic. Such local facilities can improve product availability, reduce lead times, and lower landed costs. PriceSmart, Inc. (NASDAQ:PSMT) also highlighted that with international trade becoming more complex, its free trade zone operations in the US and Costa Rica offer a strategic advantage by enabling to consolidate and export goods without duties or tariffs. PriceSmart, Inc. (NASDAQ:PSMT) continues to pursue strategies like supply chain diversification, expanded offshore consolidation, and increased free trade zone utilization to improve efficiency and offset increased costs. PriceSmart, Inc. (NASDAQ:PSMT) is a membership-based warehouse club retailer selling a wide range of FMCGs like food, beverages, and household items in bulk. While we acknowledge the potential of PSMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
3 days ago
- General
- Yahoo
6 Rude Things People Can't Stop Doing When Grabbing Free Samples at Costco
This article may contain affiliate links that Yahoo and/or the publisher may receive a commission from if you buy a product or service through those links. Costco's appeal is far-reaching. Some items, like the $1.50 hot dog combo, frozen chicken nuggets, and oversized packs of toilet paper are so popular, even nonmembers get the hype. I've been a card-carrying member for more than a decade, visiting my local warehouse at least once a week. Along the way, I've tried hundreds (likely thousands) of products to find the ones that make cooking for my family easier. The warehouse sells products in packages much larger than what you'd find at your average grocery store, so adding something new to your cart can feel like a bulk-size risk. Offering free samples is one way that Costco introduces its members to products they might not otherwise purchase. It's a delicious perk many look forward to during their shopping trips. I've seen more than a few faux pas over the years. To make sampling more efficient and enjoyable, here are a few unwritten rules that all Costco shoppers should follow when the freebies are flowing. 1. Do be patient. The sample stations are one of the biggest draws for Costco shoppers. There's usually at least one sample station open every day of the week, and members who brave the warehouse on busy weekend days will also be rewarded with a greater variety of freebies to try. Remember to be patient when waiting your turn. It takes time for the workers to set up their stations, and they may have to heat and plate the samples according to specific instructions. 2. Don't block the aisles. Sample stations are often located at the ends of the aisles. This placement will attract the attention of most shoppers. It can also create a backup when members and their oversized carts congregate around the samples. This clustering of carts can block the aisles, making it difficult for other shoppers to pass. If all samples have been eaten and the workers are preparing the next batch, say hello and politely ask how long until the next round is ready or simply circle back a little later. Whatever you do, pull your cart to the side of the aisle to avoid obstructing the passage while visiting the sample station. 3. Do say thank you. Saying 'thank you' should be common courtesy, and yet I've witnessed enough Costco samplers forget to do this that it bears repeating. 4. Don't take more than one sample. Samples are meant to be just that — a sample. Don't take more than a single serving, no matter how hungry you are, especially when there are only a few samples left. Be considerate of other shoppers who might like to try the product. If a sample station is especially busy, only take one sample per family, not one per person. You can always circle back when the station is less crowded. When the popular products also take extra time to portion due to the small appliance needs or the sampling specifications, rationing your samples gives more shoppers a chance to try the product. 5. Do find a trash can. The workers at Costco's sample stations portion their products into small cups. The disposable cups help keep things sanitary, so that masses of people aren't digging into a single bag of chips or taking an entire slice of pizza. Depending on the featured item, you might also be given a fork or spoon and a napkin. Do your part in keeping your Costco warehouse clean by finding a trash can to dispose of all these items. The large red cans are strategically placed near the sample stations and at the end of many aisles. Make sure to dispose of your trash in the receptacles rather than leaving them in the cart or on the shelf. 6. Don't be afraid to ask questions. The workers at the sample stations are often provided with talking points for the products they feature. If you're curious about the seasoning or spice level, for example, just ask. They might also have hints on the best way to serve or reheat the product. They'll also be able to direct you to where the product is located and how much it costs (including information about a sale price, if applicable). If the station is crowded, please keep it short and sweet, so other members have their change to sample and any Costco dos and don'ts to share? Tell us about it in the comments below. The Weekly Checkout Sign up for The Weekly Checkout to get the most up-to-date grocery news, tips, and highlights. Subscribe to The Kitchn! Further Reading We Used Our New 'Room Plan' Tool to Give This Living Room 3 Distinct Styles — See How, Then Try It Yourself The Design Changemakers to Know in 2025 Create Your Own 3D Room Plan with Our New Tool Sign up for The Kitchn's Daily newsletter to receive our best recipes, posts, and shopping tips in your inbox. Solve the daily Crossword
