LXP Industrial Trust Raises 2026 FFO Guidance

By Chris Stiles • Tuesday, June 02 09:58 • Permanent Link

LXP Industrial Trust raised its 2026 adjusted company FFO guidance after reporting a burst of leasing and a new acquisition in Phoenix.

The trust now expects adjusted company FFO of $3.30 to $3.40 per diluted common share, up from $3.22 to $3.37 previously. That is an increase of 8 cents at the low end and 3 cents at the high end.

For 2026, LXP also said net income attributable to common shareholders should land between $2.38 and $2.48 per diluted common share.

Leasing momentum picked up in the second quarter to date, with LXP executing 2.7 million square feet of new and renewal leases, bringing its year-to-date total to 4.6 million square feet. On second-generation leases, average cash base rent increased 22%.

The quarter-to-date leasing included: 1.18 million square feet of new first-generation leases in Glendale, Arizona 248,240 square feet of new second-generation leasing in Houston, Texas 161,200 square feet of new second-generation leasing in Savannah, Georgia 270,252 square feet of second-generation lease extensions in Savannah * 849,275 square feet of second-generation lease extensions in San Antonio, Texas

On the acquisition side, LXP bought a 37-acre infill industrial redevelopment site in Phoenix for $103 million. The property includes an approximately 600,000-square-foot class A office campus and two parking structures, is fully leased through March 31, 2031, and generates $16.1 million in annual cash rent. LXP said the asset carries 2% annual rent escalations and implied $82 million of rental payments over the remaining lease term.

LXP said it intends to redevelop the site into roughly 400,000 to 450,000 square feet of industrial space after the lease expires. The company said the deal will be funded with proceeds from 1031 exchange sales of non-target market assets.

For the full year, LXP’s guidance assumptions include: 1.5% to 2.5% same-store NOI growth, unchanged $39 million to $41 million of G&A expense * About $200 million of non-target market dispositions in the second half of 2026

The guidance update came as LXP expanded its Phoenix presence with what it called a covered land investment tied to future industrial development. Following these announcements, the company's shares moved -2.77%, and are now trading at a price of $50.21. If you want to know more, read the company's complete 8-K report here.

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