Key Highlights

  • Third-quarter diluted earnings were $1.54 per share, up from $0.59 a year earlier.
  • Gain on sale of real estate was $94.5 million, compared with $46.2 million in the prior-year quarter.
  • Total gross revenues were $90.8 million, up 4.5% from $86.9 million (calculated).
  • Second-quarter Adjusted Company FFO was $0.84 per diluted share, with the stabilized portfolio 97.4% leased.
  • The all-cash merger is priced at $61.20 per common share, with closing expected on or about November 2, 2026.

LXP Earnings: Why Did Profit Reach $1.54 per Share Just Before the Take-Private?

LXP Industrial Trust (NYSE:LXP) reported third-quarter net income attributable to common shareholders of $90.3 million, or $1.54 per diluted share, compared with $34.6 million, or $0.59, in the same quarter of 2025. The increase came mainly from a $94.5 million gain on the sale of real estate rather than from operations.

Gross revenues rose to $90.8 million from $86.9 million, with rental revenue of $89.8 million against $85.8 million. The company gives no guidance, because it is being acquired, and its regular common dividend has been suspended while the merger is pending.

LXP Operations: What Do FFO, Occupancy and Leasing Spreads Show?

The most recent operating scorecard comes from the second-quarter release, issued on Wednesday, July 29. Adjusted Company FFO was $49.5 million, or $0.84 per diluted share, up 5.0% from $0.80. FFO per diluted share was $0.84 versus $0.81, and Same-Store NOI rose 0.5%.

The stabilized portfolio was 97.4% leased at June 30, up from 96.6% at March 31. Second-generation leases covering about 2.3 million square feet carried Base Rent increases of 43.1% and Cash Base Rent increases of 26.2%, excluding two fixed-rate renewals.

In April the company had guided 2026 Adjusted Company FFO to $3.22 to $3.37 per diluted share, but it no longer provides guidance.

LXP Property Sales: How Much of the Quarter Was Gains Rather Than Operations?

The $94.5 million disposition gain compares with $46.2 million a year earlier, and it covers six buildings of 1.46 million square feet sold for $156.4 million of net proceeds over nine months. Without the gain, net income attributable to common shareholders would have been a loss of about $4.2 million (calculated).

Interest expense fell 17.0% to $13.4 million from $16.1 million (calculated). The quarter carried $5.6 million of merger transaction costs, with none a year earlier.

Cash was $110.3 million at September 30. Debt totals about $1.35 billion (calculated), and nine-month operating cash flow was $144.9 million.

LXP Merger: When Does the $61.20 Brookfield and CPP Investments Deal Close?

Under the agreement dated July 19, 2026, an entity owned by affiliates of Brookfield Asset Management (NYSE:BAM) and CPP Investments will acquire LXP for $61.20 per common share in cash. The transaction is valued at about $5.2 billion including net debt and preferred equity. The price is a 12.3% premium to the 30-day volume-weighted average price.

Shareholders of record on September 18 were scheduled to vote at a special meeting on Monday, October 26. A supplemental proxy filing on October 19 responded to one lawsuit and 14 shareholder demand letters alleging disclosure gaps, which the company denies. The filings available do not yet state the vote outcome.

The quarterly filing says closing is expected on or about November 2, 2026, earlier than the end of 2026 outlined in July, with an outside date of January 19, 2027. Series C preferred holders are slated to receive $50.00 plus accrued, unpaid dividends in a second-step merger. Investors will watch for the closing announcement.