UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2022.2023.
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _________________ to ________________
Commission File Number 1-12386
 LXP INDUSTRIAL TRUST
(Exact name of registrant as specified in its charter)
Maryland13-3717318
(State or other jurisdiction of
incorporation of organization)
(I.R.S. Employer
Identification No.)
One Penn Plaza, Suite 4015, New York, NY 10119-4015
(Address of principal executive offices) (zip code)
(212) 692-7200
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Shares of beneficial interest, par value $0.0001 per share, classified as Common StockLXPNew York Stock Exchange
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per shareLXPPRCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site,website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth
company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: 279,894,989292,606,049 common shares of beneficial interest, par value $0.0001 per share, as of August 2, 2022.1, 2023.




TABLE OF CONTENTS
PART I. — FINANCIAL INFORMATION  
 
 
 
 
PART II — OTHER INFORMATION  
 
 
 
 
 
 
 

WHERE YOU CAN FIND MORE INFORMATION:
We file and furnish annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, which we refer to as the SEC. You may read and copy any materials that we file or furnish with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. We file and furnish information electronically with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file or furnish electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov. We also maintain a web site at http://www.lxp.com through which you can obtain copies of documents that we file or furnish with the SEC. The contents of that web site are not incorporated by reference in or otherwise a part of this Quarterly Report on Form 10-Q or any other document that we file or furnish with the SEC.

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Table of Contents

PART I. - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
June 30, 2022December 31, 2021June 30, 2023December 31, 2022
Assets:Assets: Assets: 
Real estate, at costReal estate, at cost$3,631,514 $3,583,978 Real estate, at cost$3,688,245 $3,691,066 
Real estate - intangible assetsReal estate - intangible assets332,646 341,403 Real estate - intangible assets326,422 328,607 
Land held for developmentLand held for development108,032 104,160 Land held for development84,591 84,412 
Investments in real estate under constructionInvestments in real estate under construction294,399 161,165 Investments in real estate under construction372,342 361,924 
Real estate, grossReal estate, gross4,366,591 4,190,706 Real estate, gross4,471,600 4,466,009 
Less: accumulated depreciation and amortizationLess: accumulated depreciation and amortization703,300 655,740 Less: accumulated depreciation and amortization857,750 800,470 
Real estate, netReal estate, net3,663,291 3,534,966 Real estate, net3,613,850 3,665,539 
Assets held for saleAssets held for sale114,546 82,586 Assets held for sale49,644 66,434 
Right-of-use assets, netRight-of-use assets, net25,994 27,966 Right-of-use assets, net21,937 23,986 
Cash and cash equivalentsCash and cash equivalents49,817 190,926 Cash and cash equivalents23,161 54,390 
Restricted cashRestricted cash109 101 Restricted cash124 116 
Investments in non-consolidated entitiesInvestments in non-consolidated entities59,132 74,559 Investments in non-consolidated entities50,683 58,206 
Deferred expenses, netDeferred expenses, net22,627 18,861 Deferred expenses, net31,565 25,207 
Investment in a sales-type lease, net (allowance for credit loss $62 in 2023 and $93 in 2022)Investment in a sales-type lease, net (allowance for credit loss $62 in 2023 and $93 in 2022)62,331 61,233 
Rent receivable – currentRent receivable – current2,604 3,526 Rent receivable – current4,970 3,030 
Rent receivable – deferredRent receivable – deferred67,404 63,283 Rent receivable – deferred76,620 71,392 
Investment in a sales-type lease28,013 — 
Other assetsOther assets20,883 8,784 Other assets27,564 24,314 
Total assetsTotal assets$4,054,420 $4,005,558 Total assets$3,962,449 $4,053,847 
Liabilities and Equity:Liabilities and Equity:  Liabilities and Equity:  
Liabilities:Liabilities:  Liabilities:  
Mortgages and notes payable, netMortgages and notes payable, net$77,651 $83,092 Mortgages and notes payable, net$66,353 $72,103 
Revolving credit facility borrowings120,000 — 
Term loan payable, netTerm loan payable, net298,698 298,446 Term loan payable, net299,209 298,959 
Senior notes payable, netSenior notes payable, net988,613 987,931 Senior notes payable, net989,977 989,295 
Trust preferred securities, netTrust preferred securities, net127,644 127,595 Trust preferred securities, net127,744 127,694 
Dividends payableDividends payable35,578 37,425 Dividends payable38,259 38,416 
Liabilities held for saleLiabilities held for sale5,095 3,468 Liabilities held for sale1,703 1,150 
Operating lease liabilitiesOperating lease liabilities26,983 29,094 Operating lease liabilities22,805 25,118 
Accounts payable and other liabilitiesAccounts payable and other liabilities81,787 77,607 Accounts payable and other liabilities64,399 74,261 
Accrued interest payableAccrued interest payable7,947 8,481 Accrued interest payable8,735 9,181 
Deferred revenue - including below-market leases, netDeferred revenue - including below-market leases, net12,195 14,474 Deferred revenue - including below-market leases, net10,350 11,452 
Prepaid rentPrepaid rent12,579 14,717 Prepaid rent14,192 15,215 
Total liabilitiesTotal liabilities1,794,770 1,682,330 Total liabilities1,643,726 1,662,844 
Commitments and contingenciesCommitments and contingencies00Commitments and contingencies
Equity:Equity:  Equity:  
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:  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 outstandingSeries C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding94,016 94,016 Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding94,016 94,016 
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 281,670,437 and 283,752,726 shares issued and outstanding in 2022 and 2021, respectively28 28 
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 292,581,929 and 291,719,310 shares issued and outstanding in 2023 and 2022, respectivelyCommon shares, par value $0.0001 per share; authorized 600,000,000 shares, 292,581,929 and 291,719,310 shares issued and outstanding in 2023 and 2022, respectively29 29 
Additional paid-in-capitalAdditional paid-in-capital3,189,713 3,252,506 Additional paid-in-capital3,322,499 3,320,087 
Accumulated distributions in excess of net incomeAccumulated distributions in excess of net income(1,068,408)(1,049,434)Accumulated distributions in excess of net income(1,151,924)(1,079,087)
Accumulated other comprehensive income (loss)9,558 (6,258)
Accumulated other comprehensive incomeAccumulated other comprehensive income16,200 17,689 
Total shareholders’ equityTotal shareholders’ equity2,224,907 2,290,858 Total shareholders’ equity2,280,820 2,352,734 
Noncontrolling interestsNoncontrolling interests34,743 32,370 Noncontrolling interests37,903 38,269 
Total equityTotal equity2,259,650 2,323,228 Total equity2,318,723 2,391,003 
Total liabilities and equityTotal liabilities and equity$4,054,420 $4,005,558 Total liabilities and equity$3,962,449 $4,053,847 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Table of Content
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,Three Months Ended June 30,Six Months Ended June 30,
2022202120222021 2023202220232022
Gross revenues:Gross revenues:    Gross revenues:    
Rental revenueRental revenue$77,939 $80,572 $156,475 $172,217 Rental revenue$85,065 $77,939 $168,482 $156,475 
Other revenueOther revenue1,836 969 3,578 1,881 Other revenue1,985 1,836 3,643 3,578 
Total gross revenuesTotal gross revenues79,775 81,541 160,053 174,098 Total gross revenues87,050 79,775 172,125 160,053 
Expense applicable to revenues:Expense applicable to revenues:    Expense applicable to revenues:    
Depreciation and amortizationDepreciation and amortization(45,193)(43,044)(89,699)(85,220)Depreciation and amortization(45,993)(45,193)(91,734)(89,699)
Property operatingProperty operating(13,702)(11,626)(28,318)(22,560)Property operating(15,745)(13,702)(30,988)(28,318)
General and administrativeGeneral and administrative(9,296)(7,912)(20,033)(16,332)General and administrative(9,010)(9,296)(18,252)(20,033)
Non-operating incomeNon-operating income79 111 481 Non-operating income143 79 337 111 
Interest and amortization expenseInterest and amortization expense(10,821)(11,474)(21,503)(22,960)Interest and amortization expense(10,144)(10,821)(21,537)(21,503)
Impairment chargesImpairment charges(1,829)— (1,829)— Impairment charges(12,967)(1,829)(16,490)(1,829)
Change in allowance for credit lossChange in allowance for credit loss110 — 31 — 
Gains on sales of propertiesGains on sales of properties27,855 66,726 28,110 88,645 Gains on sales of properties— 27,855 7,879 28,110 
Selling profit from sales-type leaseSelling profit from sales-type lease9,314 — 9,314 — Selling profit from sales-type lease— 9,314 — 9,314 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities36,182 74,215 36,206 116,152 
Income (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entitiesIncome (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entities(6,556)36,182 1,371 36,206 
Provision for income taxesProvision for income taxes(263)(344)(680)(716)Provision for income taxes(210)(263)(426)(680)
Equity in earnings (losses) of non-consolidated entitiesEquity in earnings (losses) of non-consolidated entities5,619 (84)16,920 (174)Equity in earnings (losses) of non-consolidated entities(1,014)5,619 2,590 16,920 
Net income41,538 73,787 52,446 115,262 
Net income (loss)Net income (loss)(7,780)41,538 3,535 52,446 
Less net income attributable to noncontrolling interestsLess net income attributable to noncontrolling interests(240)(1,109)(526)(1,542)Less net income attributable to noncontrolling interests(268)(240)(417)(526)
Net income attributable to LXP Industrial Trust shareholders41,298 72,678 51,920 113,720 
Net income (loss) attributable to LXP Industrial Trust shareholdersNet income (loss) attributable to LXP Industrial Trust shareholders(8,048)41,298 3,118 51,920 
Dividends attributable to preferred shares – Series CDividends attributable to preferred shares – Series C(1,573)(1,573)(3,145)(3,145)Dividends attributable to preferred shares – Series C(1,573)(1,573)(3,145)(3,145)
Allocation to participating securitiesAllocation to participating securities(58)(105)(110)(178)Allocation to participating securities(62)(58)(134)(110)
Net income attributable to common shareholders$39,667 $71,000 $48,665 $110,397 
Net income (loss) attributable to common shareholdersNet income (loss) attributable to common shareholders$(9,683)$39,667 $(161)$48,665 
        
Net income attributable to common shareholders - per common share basic$0.14 $0.26 $0.17 $0.40 
Net income (loss) attributable to common shareholders - per common share basicNet income (loss) attributable to common shareholders - per common share basic$(0.03)$0.14 $— $0.17 
Weighted-average common shares outstanding – basicWeighted-average common shares outstanding – basic283,568,078 275,568,868 283,604,072 275,493,019 Weighted-average common shares outstanding – basic290,186,934 283,568,078 290,134,015 283,604,072 
Net income attributable to common shareholders - per common share diluted$0.14 $0.26 $0.17 $0.40 
Net income (loss) attributable to common shareholders - per common share dilutedNet income (loss) attributable to common shareholders - per common share diluted$(0.03)$0.14 $— $0.17 
Weighted-average common shares outstanding – dilutedWeighted-average common shares outstanding – diluted285,436,441 277,466,056 287,687,397 276,834,089 Weighted-average common shares outstanding – diluted291,015,537 285,436,441 290,964,350 287,687,397 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited and in thousands)
Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Net income$41,538 $73,787 $52,446 $115,262 
Other comprehensive income:    
Change in unrealized income on interest rate swaps, net3,550 576 15,816 5,922 
Other comprehensive income3,550 576 15,816 5,922 
Comprehensive income45,088 74,363 68,262 121,184 
Comprehensive income attributable to noncontrolling interests(240)(1,109)(526)(1,542)
Comprehensive income attributable to LXP Industrial Trust shareholders$44,848 $73,254 $67,736 $119,642 

Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Net income (loss)$(7,780)$41,538 $3,535 $52,446 
Other comprehensive income (loss):    
Change in unrealized gain (loss) on interest rate swaps, net2,139 3,550 (1,051)15,816 
Company's share of other comprehensive loss of non-consolidated entities(108)— (438)— 
Other comprehensive income (loss)2,031 3,550 (1,489)15,816 
Comprehensive income (loss)(5,749)45,088 2,046 68,262 
Comprehensive income attributable to noncontrolling interests(268)(240)(417)(526)
Comprehensive income (loss) attributable to LXP Industrial Trust shareholders$(6,017)$44,848 $1,629 $67,736 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited and in thousands, except share and per share data)
Three Months Ended June 30, 2022LXP Industrial Trust Shareholders
TotalNumber of Preferred SharesPreferred SharesNumber of Common SharesCommon SharesAdditional Paid-in-CapitalAccumulated Distributions in Excess of Net IncomeAccumulated Other Comprehensive Income/(Loss)Noncontrolling Interests
Balance March 31, 2022$2,320,482 1,935,400 $94,016 287,871,649 $29 $3,261,770 $(1,074,998)$6,008 $33,657 
Issuance of partnership interest in real estate1,672 — — — — — — — 1,672 
Redemption of noncontrolling OP units for common shares— — — 13,524 — 73 — — (73)
Issuance of common shares and deferred compensation amortization, net1,587 — — 12,203 — 1,587 — — — 
Repurchase of common shares(73,718)— — (6,098,026)(1)(73,717)— — — 
Forfeiture of employee common shares— — (128,913)— — — — 
Dividends/distributions ($0.12 per common share)(35,469)— — — — — (34,716)— (753)
Net income41,538 — — — — — 41,298 — 240 
Other comprehensive income3,550 — — — — — — 3,550 — 
Balance June 30, 2022$2,259,650 1,935,400 $94,016 281,670,437 $28 $3,189,713 $(1,068,408)$9,558 $34,743 
LXP Industrial Trust Shareholders
Three months ended June 30, 2023TotalNumber of Preferred SharesPreferred SharesNumber of Common SharesCommon SharesAdditional Paid-in-CapitalAccumulated Distributions in Excess of Net IncomeAccumulated Other Comprehensive Income/(Loss)Noncontrolling Interests
Balance March 31, 2023$2,360,762 1,935,400 $94,016 292,557,721 $29 $3,320,185 $(1,105,875)$14,169 $38,238 
Issuance of partnership interest in real estate190 — — — — — — — 190 
Redemption of noncontrolling OP units for common shares— — — 1,314 — — — (7)
Issuance of common shares and deferred compensation amortization, net2,307 — — 22,894 — 2,307 — — — 
Dividends/distributions ($0.125 per common share)(38,787)— — — — — (38,001)— (786)
Net income (loss)(7,780)— — — — — (8,048)— 268 
Other comprehensive income2,139 — — — — — — 2,139 — 
Company's share of other comprehensive loss of non-consolidated entities(108)— — — — — — (108)— 
Balance June 30, 2023$2,318,723 1,935,400 $94,016 292,581,929 $29 $3,322,499 $(1,151,924)$16,200 $37,903 

Three Months Ended June 30, 2021
Balance March 31, 2021$2,005,326 1,935,400 $94,016 277,614,856 $28 $3,193,023 $(1,292,051)$(12,617)$22,927 
Issuance of partnership interest in real estate2,373 — — — — — — — 2,373 
Redemption of noncontrolling OP units for common shares— — — 30,491 — 157 — — (157)
Issuance of common shares and deferred compensation amortization, net1,425 — — 15,745 — 1,425 — — — 
Forfeiture of employee common shares— — — (990)— — — — — 
Dividends/distributions ($0.1075 per common share)(32,118)— — — — — (31,362)— (756)
Net income73,787 — — — — — 72,678 — 1,109 
Other comprehensive income576 — — — — — — 576 — 
Reallocation of noncontrolling interests— — — — — 435 — — (435)
Balance June 30, 2021$2,051,369 1,935,400 $94,016 277,660,102 $28 $3,195,040 $(1,250,735)$(12,041)$25,061 

Three Months Ended June 30, 2022
Balance March 31, 2022$2,320,482 1,935,400 $94,016 287,871,649 $29 $3,261,770 $(1,074,998)$6,008 $33,657 
Issuance of partnership interest in real estate1,672 — — — — — — — 1,672 
Redemption of noncontrolling OP units for common shares— — — 13,524 — 73 — — (73)
Issuance of common shares and deferred compensation amortization, net1,587 — — 12,203 — 1,587 — — — 
Repurchase of common shares(73,718)— — (6,098,026)(1)(73,717)— — — 
Forfeiture of employee common shares— — (128,913)— — — — 
Dividends/distributions ($0.12 per common share)(35,469)— — — — — (34,716)— (753)
Net income41,538 — — — — — 41,298 — 240 
Other comprehensive income3,550 — — — — — — 3,550 — 
Balance June 30, 2022$2,259,650 1,935,400 $94,016 281,670,437 $28 $3,189,713 $(1,068,408)$9,558 $34,743 
LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited and in thousands, except share and per share data)
Six Months Ended June 30, 2022LXP Industrial Trust Shareholders
TotalNumber of Preferred SharesPreferred SharesNumber of Common SharesCommon SharesAdditional Paid-in-CapitalAccumulated Distributions in Excess of Net IncomeAccumulated Other Comprehensive Income/(Loss)Noncontrolling Interests
Balance December 31, 2021$2,323,228 1,935,400 $94,016 283,752,726 $28 $3,252,506 $(1,049,434)(6,258)32,370 
Issuance of partnership interest in real estate5,781 — — — — — — — 5,781 
Redemption of noncontrolling OP units for common shares— — — 20,232 — 109 — — (109)
Purchase of noncontrolling interest in consolidated joint venture(27,958)— — — — (25,058)— — (2,900)
Issuance of common shares and deferred compensation amortization, net42,159 — — 4,535,376 42,158 — — — 
Repurchase of common shares(73,718)— — (6,098,026)(1)(73,717)— — — 
Repurchase of common shares to settle tax obligations(6,285)— — (410,958)— (6,285)— — — 
Forfeiture of employee common shares— — (128,913)— — — — 
Dividends/distributions ($0.24 per common share)(71,827)— — — — — (70,902)— (925)
Net income52,446 — — — — — 51,920 — 526 
Other comprehensive income15,816 — — — — — — 15,816 — 
Balance June 30, 20222,259,650 1,935,400 $94,016 281,670,437 $28 $3,189,713 $(1,068,408)$9,558 $34,743 
LXP Industrial Trust Shareholders
Six Months Ended June 30, 2023TotalNumber of Preferred SharesPreferred SharesNumber of Common SharesCommon SharesAdditional Paid-in-CapitalAccumulated Distributions in Excess of Net IncomeAccumulated Other Comprehensive Income/(Loss)Noncontrolling Interests
Balance December 31, 2022$2,391,003 1,935,400 $94,016 291,719,310 $29 $3,320,087 $(1,079,087)$17,689 $38,269 
Issuance of partnership interest in real estate296 — — — — — — — 296 
Redemption of noncontrolling OP units for common shares— — — 4,886 — 25 — — (25)
Issuance of common shares and deferred compensation amortization, net4,463 — — 1,239,060 — 4,463 — — — 
Repurchase of common shares to settle tax obligations(2,076)— — (204,780)— (2,076)— — — 
Forfeiture of employee common shares— — — (176,547)— — — — — 
Dividends/distributions ($0.25 per common share)(77,009)— — — — (75,955)— (1,054)
Net income3,535 — — — — — 3,118 — 417 
Other comprehensive loss(1,051)— — — — — — (1,051)— 
Company's share of other comprehensive loss of non-consolidated entities(438)— — — — — — (438)— 
Balance June 30, 20232,318,723 1,935,400 $94,016 292,581,929 $29 $3,322,499 $(1,151,924)$16,200 $37,903 
Six Months Ended June 30, 2022
Balance December 31, 2021$2,323,228 1,935,400 $94,016 283,752,726 $28 $3,252,506 $(1,049,434)$(6,258)$32,370 
Issuance of partnership interest in real estate5,781 — — — — — — — 5,781 
Redemption of noncontrolling OP units for common shares— — — 20,232 — 109 — — (109)
Purchase of noncontrolling interest in consolidated joint venture(27,958)— — — — (25,058)— — (2,900)
Issuance of common shares and deferred compensation amortization, net42,159 — — 4,535,376 42,158 — — — 
Repurchase of common shares(73,718)— — (6,098,026)(1)(73,717)— — — 
Repurchase of common shares to settle tax obligations(6,285)— — (410,958)— (6,285)— — — 
Forfeiture of employee common shares— — (128,913)— — — — 
Dividends/distributions ($0.24 per common share)(71,827)— — — — — (70,902)— (925)
Net income52,446 — — — — — 51,920 — 526 
Other comprehensive income15,816 — — — — — — 15,816 — 
Balance June 30, 2022$2,259,650 1,935,400 $94,016 281,670,437 $28 $3,189,713 $(1,068,408)$9,558 $34,743 

Six Months Ended June 30, 2021
Balance December 31, 2020$1,991,137 1,935,400 $94,016 277,152,450 $28 $3,196,315 $(1,301,726)$(17,963)$20,467 
Issuance of partnership interest in real estate5,085 — — — — — — — 5,085 
Redemption of noncontrolling OP units for common shares— — — 90,607 — 468 — — (468)
Issuance of common shares and deferred compensation amortization, net2,942 — — 926,947 — 2,942 — — — 
Repurchase of common shares to settle tax obligations(5,120)— — (499,638)— (5,120)— — — 
Forfeiture of employee common shares— — (10,264)— — — — 
Dividends/distributions ($0.215 per common share)(63,861)— — — — — (62,731)— (1,130)
Net income115,262 — — — — — 113,720 — 1,542 
Other comprehensive income5,922 — — — — — — 5,922 — 
Reallocation of noncontrolling interests— — — — — 435 — — (435)
Balance June 30, 2021$2,051,369 1,935,400 $94,016 277,660,102 $28 $3,195,040 $(1,250,735)$(12,041)$25,061 
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
Six Months Ended June 30,Six Months Ended June 30,
20222021 20232022
Net cash provided by operating activities:Net cash provided by operating activities:$95,207 $108,687 Net cash provided by operating activities:$92,644 $95,207 
Cash flows from investing activities:Cash flows from investing activities:  Cash flows from investing activities:  
Acquisition of real estate, including intangible assetsAcquisition of real estate, including intangible assets(131,276)(256,578)Acquisition of real estate, including intangible assets— (131,276)
Investment in real estate under constructionInvestment in real estate under construction(135,826)(57,176)Investment in real estate under construction(62,650)(135,826)
Capital expendituresCapital expenditures(15,798)(2,918)Capital expenditures(7,910)(15,798)
Net proceeds from sale of propertiesNet proceeds from sale of properties54,523 180,133 Net proceeds from sale of properties27,338 54,523 
Principal payments received on loans receivable14 — 
Principal payments on loans receivablePrincipal payments on loans receivable1,462 14 
Investments in non-consolidated entitiesInvestments in non-consolidated entities(178)(758)Investments in non-consolidated entities(485)(178)
Distributions from non-consolidated entities in excess of accumulated earningsDistributions from non-consolidated entities in excess of accumulated earnings15,609 2,991 Distributions from non-consolidated entities in excess of accumulated earnings5,536 15,609 
Deferred leasing costsDeferred leasing costs(2,582)(3,054)Deferred leasing costs(1,808)(2,582)
Change in real estate deposits, netChange in real estate deposits, net(1,598)(2,957)Change in real estate deposits, net(364)(1,598)
Net cash used in investing activitiesNet cash used in investing activities(217,112)(140,317)Net cash used in investing activities(38,881)(217,112)
Cash flows from financing activities:Cash flows from financing activities:  Cash flows from financing activities:  
Dividends to common and preferred shareholdersDividends to common and preferred shareholders(72,749)(64,667)Dividends to common and preferred shareholders(76,112)(72,749)
Principal amortization paymentsPrincipal amortization payments(5,584)(7,676)Principal amortization payments(5,893)(5,584)
Revolving credit facility borrowingsRevolving credit facility borrowings155,000 125,000 Revolving credit facility borrowings50,000 155,000 
Revolving credit facility paymentsRevolving credit facility payments(35,000)— Revolving credit facility payments(50,000)(35,000)
Cash contributions from noncontrolling interestsCash contributions from noncontrolling interests5,781 4,596 Cash contributions from noncontrolling interests296 5,781 
Cash distributions to noncontrolling interestsCash distributions to noncontrolling interests(925)(1,130)Cash distributions to noncontrolling interests(1,054)(925)
Repurchases to settle tax obligationsRepurchases to settle tax obligations(2,076)(6,285)
Purchase of noncontrolling interestPurchase of noncontrolling interest(27,958)— Purchase of noncontrolling interest— (27,958)
Repurchases to settle tax obligations(6,285)(5,120)
Issuance of common shares, netIssuance of common shares, net38,497 (635)Issuance of common shares, net(145)38,497 
Repurchase of common sharesRepurchase of common shares(69,973)— Repurchase of common shares— (69,973)
Net cash provided by (used in) financing activities(19,196)50,368 
Net cash used in financing activitiesNet cash used in financing activities(84,984)(19,196)
Change in cash, cash equivalents and restricted cashChange in cash, cash equivalents and restricted cash(141,101)18,738 Change in cash, cash equivalents and restricted cash(31,221)(141,101)
Less net decrease in cash classified within assets held for sale— (1,047)
Cash, cash equivalents and restricted cash, at beginning of periodCash, cash equivalents and restricted cash, at beginning of period191,027 179,421 Cash, cash equivalents and restricted cash, at beginning of period54,506 191,027 
Cash, cash equivalents and restricted cash, at end of periodCash, cash equivalents and restricted cash, at end of period$49,926 $197,112 Cash, cash equivalents and restricted cash, at end of period$23,285 $49,926 
Reconciliation of cash, cash equivalents and restricted cash:Reconciliation of cash, cash equivalents and restricted cash:Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period$190,926 $178,795 Cash and cash equivalents at beginning of period$54,390 $190,926 
Restricted cash at beginning of periodRestricted cash at beginning of period101 626 Restricted cash at beginning of period116 101 
Cash, cash equivalents and restricted cash at beginning of periodCash, cash equivalents and restricted cash at beginning of period$191,027 $179,421 Cash, cash equivalents and restricted cash at beginning of period$54,506 $191,027 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$49,817 $196,383 Cash and cash equivalents at end of period$23,161 $49,817 
Restricted cash at end of periodRestricted cash at end of period109 729 Restricted cash at end of period124 109 
Cash, cash equivalents and restricted cash at end of periodCash, cash equivalents and restricted cash at end of period$49,926 $197,112 Cash, cash equivalents and restricted cash at end of period$23,285 $49,926 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(1) The Company and Financial Statement Presentation
LXP Industrial Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a portfolio of equity investments focused on single-tenant industrial properties.
As of June 30, 2022,2023, the Company had ownership interests in approximately 121116 consolidated real estate properties, located in 2220 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries.
The Company believes it has qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities.
The Company conducts its operations indirectly through (1) property owner subsidiaries, which are single purpose entities, (2) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (3) joint ventures. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary 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 property owner subsidiary or any other 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 or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.
The unaudited condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and six months ended June 30, 20222023 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 20212022 filed with the SEC on February 24, 202216, 2023 (“Annual Report”).
Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
As of June 30, 2022,2023, the Company had interests in 7seven consolidated joint ventures with developers, consisting of 5five ongoing development projects and 2two land joint ventures with ownership interests ranging from 80% to 95.5%. Each joint venture owns land parcels with the intention of developing industrial properties. The Company determined that the joint ventures are variable interest entities in accordance with the applicable accounting guidance. The Company concluded that it is the primary beneficiary in each of the joint ventures and as such, the joint ventures' operations are consolidated in the Company’s unaudited condensed consolidated financial statements.
In addition, the Company is the primary beneficiary of certain other VIEs as it has a controlling financial interest in these entities. Lepercq Corporate Income Fund L.P. ("LCIF") is a consolidated VIE and the Company, as of June 30, 2022,2023, had an approximate 99% ownership interest.
The assets of each VIE are only available to satisfy such VIE's respective liabilities. Below is a summary of selected financial data of the consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of June 30, 20222023 and December 31, 2021:2022:
June 30, 2022December 31, 2021June 30, 2023December 31, 2022
Real estate, netReal estate, net$920,275 $810,087 Real estate, net$1,032,057 $1,027,009 
Total assetsTotal assets$985,437 $952,611 Total assets$1,152,674 $1,125,558 
Total liabilitiesTotal liabilities$56,723 $47,011 Total liabilities$43,364 $40,200 
In addition, the Company acquires, from time to time, properties using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a "reverse 1031 exchange") and, as such, the properties are in the possession of an Exchange Accommodation Titleholder ("EAT") until the reverse 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the EAT's economic performance and can collapse the 1031 exchange structure at any time. The assets of the EAT primarily consist of leased property (net real estate and intangibles).
Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. The Company evaluates the collectability of its rental payments and recognizes revenue on a cash basis when the Company believes it is no longer probable that it will receive substantially all of the remaining lease payments. Renewal options in leases are excluded from the calculation of straight-line rent if the renewals are not reasonably certain. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the unaudited condensed consolidated balance sheets.
Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these unaudited condensed consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of current and deferred accounts receivable, and, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments, valuation of derivative financial instruments, valuation of awards granted under compensation plans, the determination of the incremental borrowing rate for leases where the Company is the lessee, the determination of the term and fair value of sales-type leases, the estimated credit losses for investments in sales-type leases and the useful lives of long-lived assets. Actual results could differ materially from those estimates.
Restricted Cash. Restricted cash is comprised primarily of cash balances held by lenders.
Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.
The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale contracts (Level 2 inputs) or recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under-estimates forecasted cash out flows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.
Cost Capitalization. The Company capitalizes interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use within investments in real estate under construction in the unaudited condensed consolidated balance sheets. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once construction has been completed on a vacant space, project costs are no longer capitalized.
Recently Issued Accounting Guidance. In March 2020, the FASBFinancial Accounting Standards Board ("FASB") issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of reference rate reform. The guidance in ASU 2020-04 is optional, applies for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and does not expect it to have a material impact on the financial statements.

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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
On July 5, 2022, the Company transitioned its benchmark interest rate for its term loan from LIBOR to the Secured Overnight Financing Rate, or SOFR. The Company adopted ASU 2020-04 and the adoption of this standard did not have an impact on the Company's unaudited condensed consolidated financial statements. The Company's Trust Preferred Securities transitioned from LIBOR to SOFR after June 30, 2023. The Company does not expect a material impact to the financial statements as a result of the transition.

(2)Earnings Per Share
A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company.
The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and six months ended June 30, 20222023 and 2021:2022:
Three Months Ended June 30,Six Months Ended June 30, Three Months Ended June 30,Six Months Ended June 30,
2022202120222021 2023202220232022
BASICBASIC  BASIC  
Net income attributable to common shareholders$39,667 $71,000 $48,665 $110,397 
Net income (loss) attributable to common shareholdersNet income (loss) attributable to common shareholders$(9,683)$39,667 $(161)$48,665 
Weighted-average number of common shares outstanding - basicWeighted-average number of common shares outstanding - basic283,568,078 275,568,868 283,604,072 275,493,019 Weighted-average number of common shares outstanding - basic290,186,934 283,568,078 290,134,015 283,604,072 
  
Net income attributable to common shareholders - per common share basic$0.14 $0.26 $0.17 $0.40 
Net income (loss) attributable to common shareholders - per common share basicNet income (loss) attributable to common shareholders - per common share basic$(0.03)$0.14 $— $0.17 
DILUTEDDILUTEDDILUTED
Net income attributable to common shareholders - basic$39,667 $71,000 $48,665 $110,397 
Net income (loss) attributable to common shareholders - basicNet income (loss) attributable to common shareholders - basic$(9,683)$39,667 $(161)$48,665 
Impact of assumed conversionsImpact of assumed conversions47 — 136 — Impact of assumed conversions(81)47 (77)136 
Net income attributable to common shareholders$39,714 $71,000 $48,801 $110,397 
Net income (loss) attributable to common shareholdersNet income (loss) attributable to common shareholders$(9,764)$39,714 $(238)$48,801 
Weighted-average common shares outstanding - basicWeighted-average common shares outstanding - basic283,568,078 275,568,868 283,604,072 275,493,019 Weighted-average common shares outstanding - basic290,186,934 283,568,078 290,134,015 283,604,072 
Effect of dilutive securities:Effect of dilutive securities:Effect of dilutive securities:
Unvested share-based payment awardsUnvested share-based payment awards— 257,371 — 668,130 
Shares issuable under forward sales agreementsShares issuable under forward sales agreements750,944 1,098,031 2,549,683 553,937 Shares issuable under forward sales agreements— 750,944 — 2,549,683 
Unvested share-based payment awards257,371 799,157 668,130 787,133 
Operating partnership unitsOperating partnership units860,048 — 865,512 — Operating partnership units828,603 860,048 830,335 865,512 
Weighted-average common shares outstanding - dilutedWeighted-average common shares outstanding - diluted285,436,441 277,466,056 287,687,397 276,834,089 Weighted-average common shares outstanding - diluted291,015,537 285,436,441 290,964,350 287,687,397 
Net income attributable to common shareholders - per common share diluted$0.14 $0.26 $0.17 $0.40 
Net income (loss) attributable to common shareholders - per common share dilutedNet income (loss) attributable to common shareholders - per common share diluted$(0.03)$0.14 $— $0.17 
For per common share amounts, generally all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Calculation of dilutive earnings requires certain potentially dilutive shares to be excluded when the inclusion of such shares would be anti-dilutive. The following table summarizes the potentially dilutive shares excluded from the dilutive earnings per share calculation as inclusion of such shares would be anti-dilutive:
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Unvested share-based payment awards135,172 10,140 131,522 34,762 
Preferred shares - Series C4,710,570 4,710,570 4,710,570 4,710,570 

(3)Investments in Real Estate
The Company acquiredcompleted and placed in service the following warehouse/distribution facilitiesfacility during the six months ended June 30, 2022:2023:
MarketAcquisition DateInitial
Cost
Basis
Primary
Lease
Expiration at Acquisition Date
LandBuilding and ImprovementsLease in-place Intangible
Cincinnati/Dayton, OH(1)
February 2022$23,382 N/A$2,010 $21,372 $— 
Cincinnati/Dayton, OHFebruary 202248,660 04/20324,197 40,944 3,519 
Phoenix, AZApril 202259,140 05/20375,366 50,281 3,493 
$131,182 $11,573 $112,597 $7,012 
MarketPlaced in Service DateInitial
Cost
Basis

Lease
Expiration Date
LandBuilding and Improvements
Phoenix, Arizona(1)
March 2023$37,118 08/2033$7,552 $29,566 
(1)    Subsequent to acquisition, property was fully leased for approximately nine years.Initial basis excludes certain remaining costs, including developer partner promote, if any.
In 2022, the Company purchased the remaining 13% of equity owned by a noncontrolling interest in the Fairburn, Georgia warehouse/distribution facility for $27,958. As the Company previously consolidated its interest in the joint venture which owned the property, the acquisition of the noncontrolling ownership interest was recorded as an equity transaction with the difference between the purchase price and carrying balance of $25,058 recorded as a reduction in additional paid-in-capital.
As of June 30, 2022,2023, the details of the warehouse/distribution real estate under constructiondevelopment arrangements outstanding are as follows (in $000's, except square feet):
Project (% owned)Project (% owned)# of BuildingsMarketEstimated Sq. Ft.
Estimated Project Cost(1)
GAAP Investment Balance as of 6/30/2022
LXP Amount Funded as of 6/30/2022(2)
Estimated Building Completion Date% Leased as of 6/30/2022Project (% owned)# of BuildingsMarketEstimated Sq. Ft.
Estimated Project Cost(1)
GAAP Investment Balance as of 6/30/2023(2)
LXP Amount Funded as of 6/30/2023(3)
Actual/Estimated Base Building Completion Date% Leased as of 6/30/2023Estimated Placed in Service Date
The Cubes at Etna East (95%)1Columbus, OH1,074,840 $72,100 $52,136 $44,449 3Q 2022— %
Development Projects Leased:Development Projects Leased:
ETNA Cubes(95%)ETNA Cubes(95%)1Columbus, OH1,074,840 $76,600 $63,370 $66,148 3Q 2022100 %4Q 2023
Cotton 303 (93%)(3)
Cotton 303 (93%)(3)
1Phoenix, AZ488,400 55,300 39,182 32,652 3Q 2023100 %1Q 2024
21,563,240 $131,900 $102,552 $98,800 
Development Projects Available for Lease:Development Projects Available for Lease:
Ocala (80%)Ocala (80%)1Central Florida1,085,280 83,100 60,483 49,711 4Q 2022— %Ocala (80%)1Central Florida1,085,280 $83,200 $77,209 $67,984 1Q 2023— %— 
Cotton 303 (93%)(3)
2Phoenix, AZ880,678 84,200 47,798 39,150 4Q 202245 %
Mt. Comfort (80%)Mt. Comfort (80%)1Indianapolis, IN1,053,360 65,500 38,598 29,581 4Q 2022— %Mt. Comfort (80%)1Indianapolis, IN1,053,360 65,900 63,790 55,312 1Q 2023— %— 
Smith Farms (90%)(4)
3Greenville-Spartanburg, SC2,194,820 170,400 85,704 60,704 4Q 2022 - 2Q 202336 %
Smith Farms (90%)Smith Farms (90%)2Greenville-Spartanburg, SC1,396,772 101,600 92,213 79,975 2Q 2023— %— 
South Shore (100%)South Shore (100%)2Central Florida270,885 40,500 9,680 9,367 2Q 2023— %South Shore (100%)2Central Florida270,885 42,500 36,578 30,313 2Q 2023 - 3Q 2023— %— 
$515,800 $294,399 $232,962 63,806,297 $293,200 $269,790 $233,584 
85,369,537 $425,100 $372,342 $332,384 
(1)    Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any.
(2)    Excludes noncontrolling interests' share.leasing costs.
(3)    Pre-leased 392,278 square foot facility subject to a 10-year lease commencing upon substantial completion of the facility.
(4)    Pre-leased 797,936 square foot facility subject to a 12-year lease commencing upon substantial completion of the facility.

As of June 30, 2022, the Company's aggregate investment in the development arrangements was $294,399, which included capitalized interest of $2,800 for the six months ended June 30, 2022 and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheet. For the six months ended June 30, 2021, capitalized interest for development arrangements was $1,141.
As of June 30, 2022, the details of the land held for development are as follows (in $000's, except acres):
Project (% owned)MarketApprox. Developable Acres
GAAP Investment Balance as of
 6/30/2022
LXP Amount Funded
as of
6/30/2022 (1)
Consolidated:
Reems & Olive (95.5%)Phoenix, AZ420$101,227 $96,788 
Mt. Comfort Phase II (80%)Indianapolis, IN1165,076 4,033 
ATL Fairburn JV (100%)Atlanta, GA14$1,729 $1,727 
550$108,032 $102,548 
(1)     Excludes noncontrolling interests' share.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
As of June 30, 2023, the Company's aggregate investment in development arrangements was $372,342, which included capitalized interest of $5,194 for the six months ended June 30, 2023 and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheet. For the six months ended June 30, 2022, capitalized interest for development arrangements was $2,800.
As of June 30, 2023, the details of the land held for industrial development are as follows (in $000's, except acres):
Project (% owned)MarketApprox. Developable Acres
GAAP Investment Balance as of
 6/30/2023
LXP Amount Funded
as of
6/30/2023 (1)
Reems & Olive (95.5%)Phoenix, AZ320$77,538 $74,177 
Mt. Comfort Phase II (80%)Indianapolis, IN1165,321 4,266 
ATL Fairburn JV (100%)Atlanta, GA141,732 1,737 
450$84,591 $80,180 
(1)    Excludes noncontrolling interests' share.

(4)Dispositions and Impairment
During the six months ended June 30, 20222023 and 2021,2022, the Company disposed of its interests in various properties for an aggregate gross disposition price of $55,395$27,910 and $183,427,$55,395, respectively, and recognized aggregate gains on sales of properties of $28,110$7,879 and $88,645,$28,110, respectively.
The Company had 8four and three properties classified as held for sale at June 30, 20222023 and December 31, 2021,2022, respectively. Assets and liabilities of the held for sale properties as ofat June 30, 20222023 and December 31, 20212022 consisted of the following:
June 30, 2022December 31, 2021June 30, 2023December 31, 2022
Assets:Assets:Assets:
Real estate, at costReal estate, at cost$202,810 $170,117 Real estate, at cost$59,918 $131,557 
Real estate, intangible assetsReal estate, intangible assets14,492 9,454 Real estate, intangible assets1,777 9,942 
Accumulated depreciation and amortizationAccumulated depreciation and amortization(107,393)(99,659)Accumulated depreciation and amortization(14,119)(76,205)
Deferred expenses, net1,629 1,759 
OtherOther3,008 915 Other2,068 1,140 
$114,546 $82,586 $49,644 $66,434 
Liabilities:Liabilities:Liabilities:
Accounts payable and liabilitiesAccounts payable and liabilities$2,004 $1,908 Accounts payable and liabilities$407 $637 
Deferred revenueDeferred revenue1,696 483 Deferred revenue241 143 
Prepaid rentPrepaid rent1,395 1,077 Prepaid rent1,055 370 
$5,095 $3,468 $1,703 $1,150 
The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset, the potential sale or transfer of the property in the near future and changes in economic conditions. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered.
During the six months ended June 30, 2022,2023, the Company recognized anaggregate impairment chargecharges of $16,490 due to potential property sales. The Company recognized impairment charges of $1,829 on real estate of $1,829during the six months ended June 30, 2022 due to vacancy at the property. During the six months ended
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2021, there were no impairment charges recorded.2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(5)Fair Value Measurements
The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 20222023 and December 31, 2021,2022, aggregated by the level in the fair value hierarchy within which those measurements fall:
BalanceFair Value Measurements Using BalanceFair Value Measurements Using
DescriptionDescriptionJune 30, 2022(Level 1)(Level 2)(Level 3)DescriptionJune 30, 2023(Level 1)(Level 2)(Level 3)
Interest rate swap assetsInterest rate swap assets$9,558 $— $9,558 $— Interest rate swap assets$15,268 $— $15,268 $— 
Impaired real estate assets(1)
Impaired real estate assets(1)
$1,684 $— $— $1,684 
Impaired real estate assets(1)
$34,315 $— $25,145 $9,170 
BalanceFair Value Measurements UsingBalanceFair Value Measurements Using
DescriptionDescriptionDecember 31, 2021(Level 1)(Level 2)(Level 3)DescriptionDecember 31, 2022(Level 1)(Level 2)(Level 3)
Interest rate swap liabilities$(6,258)$— $(6,258)$— 
Impaired real estate assets(2)
$12,735 $— $— $12,735 
Interest rate swap assetsInterest rate swap assets$16,318 $— $16,318 $— 
(1) Represents non-recurring fair value measurement. The Company measured a $1,684fair value is calculated as of the impairment date. The fair value of real estate assets$25,145 was based on an observable contract to sell the asset, less estimated costs to sell. The Company also estimated the fair value of $9,170 based on a discounted cash flow analysis using a discount rate of 9.5%10.0% and a residual capitalization rate of 8.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(2)    Represents non-recurring fair value measurement. The Company measured a $12,735 fair value of real estate assets based on a discounted cash flow analysis using a discount rate ranging from8.0% to 10.0% and a residual capitalization rate ranging from 7.5% to 8.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.

The majority of the inputs used to value the Company's interest rate swaps fellfall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizedutilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of June 30, 20222023 and December 31, 2021,2022, the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, theall interest rate swaps werehave been classified in Level 2 of the fair value hierarchy.
The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments, excluding held for sale assets, as of June 30, 20222023 and December 31, 2021:2022:
As of June 30, 2022As of December 31, 2021 As of June 30, 2023As of December 31, 2022
Carrying
Amount
Fair ValueCarrying
Amount
Fair Value Carrying
Amount
Fair ValueCarrying
Amount
Fair Value
AssetsAssets    
Investment in a sales-type lease, netInvestment in a sales-type lease, net$62,331 $63,840 $61,233 $60,984 
LiabilitiesLiabilities    Liabilities    
DebtDebt$1,612,606 $1,436,263 $1,497,064 $1,491,868 Debt$1,483,283 $1,289,776 $1,488,051 $1,293,239 

The fair value of the Company's investment in a sales-type lease, net is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis and an estimate of the unguaranteed residual value.
The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates, except for the Company's senior notes payable.rates. The Company determines the fair value of its senior notesSenior Notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low.
Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.
Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

(6)Investments in Non-Consolidated Entities
Below is a schedule of the Company's investments in non-consolidated entities:
Percentage Ownership atInvestment Balance as ofPercentage Ownership atInvestment Balance as ofEquity in earnings (losses) of non-consolidated entities
InvestmentInvestmentJune 30, 2022June 30, 2022December 31, 2021InvestmentJune 30, 2023June 30, 2023December 31, 2022June 30, 2023June 30, 2022
NNN MFG Cold JV L.P. ("MFG Cold JV")(1)NNN MFG Cold JV L.P. ("MFG Cold JV")(1)(1)20%$28,851 $30,752 NNN MFG Cold JV L.P. ("MFG Cold JV")(1)20%$22,617 $26,592 $(1,597)$(600)
NNN Office JV L.P. ("NNN JV")(2)NNN Office JV L.P. ("NNN JV")(2)(2)20%11,486 24,112 NNN Office JV L.P. ("NNN JV")(2)20%12,637 12,900 (263)17,521 
Etna Park 70 LLC(3)Etna Park 70 LLC(3)(3)90%12,931 12,874 Etna Park 70 LLC(3)90%13,333 12,975 (86)(49)
Etna Park East LLC(4)Etna Park East LLC(4)(4)90%2,116 2,797 Etna Park East LLC(4)90%2,096 2,126 (72)(48)
BSH Lessee L.P.(5)BSH Lessee L.P.(5)(5)25%3,748 4,024 BSH Lessee L.P.(5)25%— 3,613 4,608 96 
$59,132 $74,559 $50,683 $58,206 $2,590 $16,920 
(1)    MFG Cold JV is a joint venture formed in 2021 andthat owns special purpose industrial properties formerly owned by the Company.
(2)    NNN JV is a joint venture formed in 2018 andthat owns office properties formerly owned by the Company. During 2022, NNN JV sold three assets and the Company recognized its share of aggregate gains on sale of $22,896 within equity in earnings of non-consolidated entities within its unaudited condensed consolidated statements of operations.
(3)    Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The joint venture commenced development of a 250,000 square foot speculative development project for an estimated cost of $29,000. Subsequent to June 30, 2023, LXP entered into an agreement to fund all of the construction costs, inclusive of its partner's share, to complete the Etna Park 70 industrial facility.
(4)    Joint venture formed in 2019 with a developer entity to acquire a parcel of land.
(5)    A joint venture investment which sold its sole single-tenant, net-leased asset in January 2023 and the Company determined that it is notrecognized its share of the primary beneficiary.gain on sale of $4,791 within equity in earnings of non-consolidated entities within its unaudited condensed consolidated statements of operations.
The Company earns advisory fees from certain of these non-consolidated entities for services related to acquisitions, asset management and debt placement. Advisory fees earned from these non-consolidated investments for the six months ended June 30, 2023 and 2022 were $2,208 and $2,875, respectively.

(7)Debt
The Company had the following mortgages and notes payable outstanding as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Mortgages and notes payable$67,260 $73,154 
Unamortized debt issuance costs(907)(1,051)
Mortgage notes payable, net$66,353 $72,103 
Interest rates, including imputed rates on mortgages and notes payable, ranged from 3.5% to 4.3%, at June 30, 2023 and December 31, 2022, respectively, and all mortgages and notes payable mature between 2023 and 2031 as of June 30, 2023. The weighted-average interest rate at June 30, 2023 and December 31, 2022 was approximately 4.0%, respectively.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(4)    Joint venture formed in 2019 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.
(5)    A joint venture investment, which owns a single-tenant, net-leased asset.
During the six months ended June 30, 2022, NNN JV sold 3 assets and recognized aggregate gains of $114,481 and the Company recognized its share of the aggregate gains on the transactions of $22,896 within equity in earnings (losses) of non-consolidated entities in its unaudited condensed consolidated statement of operations. In conjunction with these property sales, NNN JV received net proceeds of $141,050 after the satisfaction of an aggregate of $166,460 of its non-recourse mortgage indebtedness. NNN JV distributed $28,147 of net proceeds to the Company as a result of the property sales.
The following is a summary of the results of operations of NNN JV for the six months ended June 30, 2022 and 2021:
Six months ended June 30,
20222021
Total gross revenues$27,070 $30,418 
Depreciation expense(14,392)(19,375)
Property operating(4,880)(4,689)
General and administrative(1,108)(1,101)
Gains on sales of properties114,481 — 
Impairment charges(21,067)— 
Debt satisfaction losses, net(7,474)— 
Interest expense(4,869)(5,981)
Income (loss) from continuing operations87,761 (728)
Provision for income taxes(273)(53)
Net income (loss)$87,488 $(781)
x

(7)Debt
The Company had the following mortgages and notes payable outstanding as of June 30, 2022 and December 31, 2021:
June 30, 2022December 31, 2021
Mortgages and notes payable$78,845 $84,429 
Unamortized debt issuance costs(1,194)(1,337)
Mortgages and notes payable, net$77,651 $83,092 
Interest rates, including imputed rates on mortgages and notes payable, ranged from 3.5% to 4.3%, at June 30, 2022 and December 31, 2021 and all mortgages and notes payables mature between 2023 and 2031 as of June 30, 2022. The weighted-average interest rate was approximately 4.0% at June 30, 2022 and December 31, 2021.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
The Company had the following senior notes outstanding as of June 30, 20222023 and December 31, 2021:2022:
Issue DateIssue DateJune 30, 2022December 31, 2021Interest RateMaturity DateIssue PriceIssue DateJune 30, 2023December 31, 2022Interest RateMaturity DateIssue Price
August 2021August 2021$400,000 $400,000 2.375 %October 203199.758 %August 2021$400,000 $400,000 2.375 %October 203199.758 %
August 2020August 2020400,000 400,000 2.70 %September 203099.233 %August 2020400,000 400,000 2.70 %September 203099.233 %
May 2014May 2014198,932 198,932 4.40 %June 202499.883 %May 2014198,932 198,932 4.40 %June 202499.883 %
998,932 998,932 998,932 998,932 
Unamortized debt discountUnamortized debt discount(3,441)(3,655)Unamortized debt discount(3,016)(3,228)
Unamortized debt issuance cost(6,878)(7,346)
Unamortized debt issuance costsUnamortized debt issuance costs(5,939)(6,409)
Senior notes payable, netSenior notes payable, net$988,613 $987,931 Senior notes payable, net$989,977 $989,295 
Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus aany potential make-whole premium.
The Company has an unsecured credit agreement with KeyBank National Association, as agent. The maturity dates and interest rates as of June 30, 2022,2023, are as follows:

Maturity Date
Current
Interest Rate
$600,000 Revolving Credit Facility(1)
February 2023July 2026LIBORSOFR + 0.90%0.85%
$300,000 Term Loan(2)
January 2025LIBORTerm SOFR + 1.00%
(1)    Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option.July 2027, subject to certain conditions. The interest rate ranges from LIBOR plus 0.775%0.725% to 1.45%.1.400%, and the revolving credit facility allows for further reductions upon the achievement of to-be-determined sustainability metrics. At June 30, 2022,2023, the Company had $120,000no borrowings outstanding and availability of $480,000,$600,000, subject to covenant compliance.
(2)    The LIBORTerm SOFR portion of the interest rate was swapped to obtain a current fixed rate of 2.732%2.722% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,302$791 and $1,554$1,041 as of June 30, 20222023 and December 31, 2021,2022, respectively.

The Company was compliant with all applicable financial covenants contained in its corporate-level debt agreements at June 30, 2022.2023.
During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option and bear interest at a variable rate of three-month LIBOR plus 170 basis points through maturity. The interest rate at June 30, 20222023 was 2.986%6.999%. As of June 30, 20222023 and December 31, 2021,2022, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,476$1,376 and $1,525,$1,426, respectively, of unamortized debt issuance costs. The variable rate transitioned from LIBOR to SOFR after June 30, 2023.
CapitalizedThe Company capitalized $5,436 and $2,839 of interest recorded duringexpense for the six months ended June 30, 20222023 and 2021 was $2,839 and $1,396,2022, respectively.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(8)    Derivatives and Hedging Activities
Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.
Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company did not incur any ineffectiveness during the six months ended June 30, 20222023 and 2021.2022.
During July 2019,2022, the Company entered into 4transitioned its four interest rate swap agreements with its counterparties.counterparties to a benchmark rate of Term SOFR. The swaps were designated as cash flow hedges of the risk ofin variability attributable to changes in the LIBORTerm SOFR swap rates on its $300,000 LIBOR-indexed variable-rateSOFR-indexed variable rate unsecured term loan. Accordingly, changes in fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. The swaps expire coterminous with the extended maturity of the term loan in January 2025. During the next 12 months, the Company estimates that an additional $4,145$10,664 will be reclassified as a decrease toin interest expense if the swaps remain outstanding.
Interest Rate DerivativeNumber of InstrumentsNotional
Interest Rate Swaps4$300,000
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 20212023, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Interest Rate DerivativeNumber of InstrumentsNotional
Interest Rate Swaps4$300,000
The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets:
As of June 30, 2022As of December 31, 2021 As of June 30, 2023As of December 31, 2022
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments
Derivatives designated as hedging instruments:Derivatives designated as hedging instruments:Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Interest Rate SwapsInterest Rate SwapsOther Assets$9,558 Other Liabilities$(6,258)Interest Rate SwapsOther Assets$15,268 Other Assets$16,318 
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
The table below presents the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the six months ended June 30, 20222023 and 2021.2022.
Derivatives in Cash FlowDerivatives in Cash FlowAmount of Gain
Recognized in OCI on Derivatives
June 30,
Amount of Loss
Reclassified from Accumulated OCI into Income(1)
June 30,
Derivatives in Cash FlowAmount of Gain
Recognized in OCI on Derivatives
June 30,
Amount of (Income) Loss
Reclassified from Accumulated OCI into Income(1)
June 30,
Hedging RelationshipsHedging Relationships2022202120222021Hedging Relationships2023202220232022
Interest Rate SwapsInterest Rate Swaps$13,895 $3,486 $1,921 $2,436 Interest Rate Swaps$3,668 $13,895 $(4,719)$1,921 
The Company's share of non-consolidated entity's interest rate capThe Company's share of non-consolidated entity's interest rate cap220 — (658)— 
TotalTotal$3,888 $13,895 $(5,377)$1,921 
(1)    Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statementstatements of operations.
Total interest expense presented in the unaudited condensed consolidated statements of operations, in which includes the effects of cash flow hedges are recorded was $21,503$21,537 and $22,960$21,503 for the six months ended June 30, 20222023 and 2021,2022, respectively.
The Company's agreements with the swap derivativesderivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of June 30, 2022,2023, the Company had not posted any collateral related to the agreements.

(9)    Lease Accounting
Lessor
Operating Leases.The Company’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred.
Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of the lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before.
Accounting guidance under TopicASC 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectible, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease was accounted for on a cash basis.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
There were no write offs for the six months ended June 30, 2023. During the six months ended June 30, 2022, and 2021, the Company did not write off any deferred rent receivable as a reduction of rental revenue.
Certain tenants have been experiencing financial difficulties as a result of the current economic conditions. During the six months ended June 30, 2022 and 2021, the Company wrote off an aggregate of $198, and $334, respectively, accounts receivable, net, relating to certain tenants suffering from the current economic conditions.
The Company elected that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service included within rental revenue is CAM services provided as part of the Company’s real estate leases. TopicASC 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. For the six months ended June 30, 2023, the Company incurred no costs that were not incremental to the execution of leases. For the six months ended June 30, 2022, the Company incurred $34 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company did not incur any costs that were not incremental to the execution of leases in 2021.leases.
The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.
The following table presents the Company’s classificationSales-Type Leases. As of rental revenue for its operating leases for the three and six months ended June 30, 20222023, the Company had one lease that qualified as a sales-type lease.
The Company has one ground lease for a 100-acre industrial development land parcel located in the Phoenix, Arizona market that is classified as a sales-type lease. At the commencement date of the lease, the Company evaluated the lease classification and 2021:
Three Months EndedSix Months Ended
ClassificationJune 30, 2022June 30, 2021June 30, 2022June 30, 2021
Fixed$67,015 $70,630 $133,997 $142,572 
Variable(1)(2)
10,924 9,942 22,478 29,645 
Total$77,939 $80,572 $156,475 $172,217 
(1)    Primarily comprisedclassified the lease as a sales-type lease. The lease contains a purchase option in the amount of tenant reimbursements.
(2)    Variable income contains termination income$20.00 per land square foot starting on the second anniversary date of $11,827 forthe lease and ending on the third anniversary date. The Company determined that the purchase option is not reasonably certain of being exercised. The lease met the sales-type lease criteria because the present value of the lease payments was equal to substantially all of the fair value of the underlying asset on the lease commencement date. For the six months ended June 30, 2021. No termination fee2023, the interest income earned from sales-type leases of $3,681 is included in rental revenue was recognized duringin the six months ended June 30,unaudited condensed consolidated statements of operations. The Company earned no interest income from sales-type leases in 2022. The 2021 termination fee income primarily related to a tenant that terminated its lease at the Company's Durham, New Hampshire industrial property.

In May 2022, one of the Company's tenants exercised the purchase option for $28,000 in its operating lease with a sale date of August 2022. The purchase option was not reasonably certain to be exercised at lease inception, resulting in a modification of the operating lease. As a result of this modification to the lease, the Company re-evaluated the lease classification and classified the lease as a sales-type lease. The Company recorded $28,000 in Investment in a sales-type lease and derecognized $17,292 from Real estate, net, $619 from Deferred expenses and $775 from Rent receivable-deferred on its unaudited condensed consolidated balance sheet. The Company recognized $9,314 in Sellingselling profit from sales-type leases in its unaudited condensed consolidated statements of operations for the six months ended June 30, 2022. The remaining rent payments under the lease in 2022 in addition to the purchase option price arewas $371.
Rental Revenue Classification. The following table presents the Company’s classification of rental revenue for its operating leases and sales-type lease for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Fixed$69,049 $67,015 $137,136 $133,997 
Sales-type lease income1,848 — 3,681 — 
Variable(1)
14,168 10,924 27,665 22,478 
Total$85,065 $77,939 $168,482 $156,475 
(1)    Primarily comprised of tenant reimbursements.

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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Future fixed rental receipts for operating and sales-type leases, assuming no new or re-negotiated leases as of June 30, 20222023 were as follows:
Six months ended June 30,Total
2022 - remainder$129,436 
2023260,344 
2024233,138 
2025213,063 
2026194,619 
2027160,120 
Thereafter607,377 
Total$1,798,097 

OperatingSales-Type
2023 - remainder$133,883 $2,614 
2024251,719 5,263 
2025234,071 5,473 
2026214,826 5,692 
2027178,132 5,920 
2028147,865 6,156 
Thereafter500,591 733,006 
Total$1,661,087 $764,124 
Difference between undiscounted cash flow and present value(701,731)
Investment in a sales-type lease$62,393 
The above minimum lease payments do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases, unless such payments are reasonably certain to be received.
Certain leases allow for the tenant to terminate the lease if the property is deemed obsolete, as defined, and upon payment of a termination fee to the landlord, as stipulated in the lease. In addition, certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price.
Lessee
The Company, as lessee, has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of June 30, 2022.2023. The leases have remaining lease terms of up to 3837 years. Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred.
The accounting guidance under TopicASC 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate.
The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease.
The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Supplemental information related to operating leases is as follows:
Six Months Ended
June 30, 2023June 30, 2022
Weighted-average remaining lease term
Operating leases (years)9.29.5
Weighted-average discount rate
Operating leases4.1 %4.0 %
The components of lease expense for the six months ended June 30, 2023 and 2022 were as follows:
Income Statement ClassificationFixedVariableTotal
2023:
Property operating$1,771 $$1,778 
General and administrative767 151 918 
Total$2,538 $158 $2,696 
2022:
Property operating$1,771 $— $1,771 
General and administrative767 42 809 
Total$2,538 $42 $2,580 
The Company recognized sublease income of $1,660 for the six months ended June 30, 2023 and 2022, respectively.
The following table shows the Company's maturity analysis of its operating lease liabilities as of June 30, 2023:
Operating Leases
2023 - remainder$2,501 
20245,199 
20255,204 
20264,174 
20273,673 
20281,061 
Thereafter6,440 
Total lease payments$28,252 
Less: Imputed interest(5,447)
Present value of lease liabilities$22,805 
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 20222023 and 20212022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Supplemental information
(10)Allowance for Credit Loss
As of June 30, 2023, the Company had a $62 credit loss allowance resulting from an investment in a sales-type lease. There were no allowances for credit losses in 2022. The activity for the credit loss allowance related to operating leasesthe sales-type lease is as follows:
Six Months Ended
June 30, 2022June 30, 2021
Weighted-average remaining lease term
Operating leases (years)9.511.3
Weighted-average discount rate
Operating leases4.0 %4.1 %
For the Six Months Ended June 30, 2023
Balance at Beginning of PeriodWrite-OffsGeneral AllowanceBalance at End of Period
Allowance for credit loss$93 $— $(31)$62 

The componentsAs of lease expense for the six months ended June 30, 20222023, the lessee in the sales-type lease remains current on their obligations to the Company and, 2021 were as follows:

Income Statement ClassificationFixedVariableTotal
2022:
Property operating$1,771 $— $1,771 
General and administrative767 42 809 
Total$2,538 $42 $2,580 
2021:
Property operating$1,824 $— $1,824 
General and administrative673 22 695 
Total$2,497 $22 $2,519 
The Company recognized sublease income of $1,660 and $1,713 fortherefore, the six months ended June 30, 2022 and 2021, respectively.investment is not on non-accrual status.
The following table showsdetails the Company's maturity analysis of its operatinginvestment in a sales-type lease liabilities as of June 30, 2022:2023:
Operating Leases
2022 - remainder$2,381 
20235,290 
20245,199 
20255,204 
20264,174 
20273,673 
Thereafter7,501 
Total lease payments$33,422 
Less: Imputed interest(6,439)
Present value of operating lease liabilities$26,983 
As of June 30, 2023
Amortized costAllowanceNet InvestmentAllowance as a % of Amortized Cost
Investment in a sales-type lease$62,393 $(62)$62,331 0.10 %

(10)(11)Concentration of Risk
The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties in target markets, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the six months ended June 30, 20222023 and 2021,2022, no single tenant represented greater than 10% of rental revenues.
Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(11)(12)Equity
Shareholders' Equity:
At-The-Market Offering Program. The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares, including through forward sales contracts.
During the six months ended June 30, 2023 and 2022, the Company did not sell shares under the ATM program.
During the six months ended June 30, 2022, the Company issued 3,649,023 common shares previously sold on a forward basis in the first quarter of 2021 on the maturity date of the contracts and received $38,492 of net proceeds. No shares were sold on a forward basis during the six months ended June 30, 2023.

During 2021, the Company amended the terms of its ATM offering program, under which the Company may, from time to time, sell up to $350,000 of common shares over the term of the program. As of June 30, 2022,2023, common shares with an aggregate value of $294,985 remain available for issuance under the ATM program.

Underwritten equity offerings. During 2021, the Company entered into forward sales contracts for the sale of 16,000,000 common shares at a public offering price of $12.11 per common share in an underwritten equity offering that have not yet settled. The forward sales contracts mature in December 2022, subject to the Company's rights to elect cash or net share settlement. As of June 30, 2022, the forward sales contracts had an aggregate settlement price of $183,392, which is subject to adjustment in accordance with the forward sales contracts.

Stock Based Compensation. During the six months ended June 30, 20222023 and 2021,2022, the Company issued 25,29746,440 and 27,565,25,297, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $480 and $357, respectively.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and $300, respectively.2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Share Repurchase Program. In July 2015,August 2022, the Company's Board of Trustees authorized the repurchase of up to an additional 10,000,000 common shares and increased this authorization by 10,000,000 in 2018. Thisunder the Company's share repurchase program, haswhich does not have an expiration date. There were no expiration date.common shares repurchased during the six months ended June 30, 2023. During the six months ended June 30, 2022, 6,098,026 common shares were repurchased and retired for an average price of $11.45 per share. There were no common shares repurchased during the six months ended June 30, 2021. As of June 30, 2022, 2,878,2892023, 6,874,241 common shares remain available for repurchase under this authorization. The Company records a liability for repurchases that have not yet been settled as of the period end. There were $3,745 ofno unsettled repurchases as of June 30, 2022.2023.

Series C Preferred Stock. The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) outstanding at June 30, 2022.2023. The shares have a dividend of $3.25 per share per annum, and have a liquidation preference of $96,770.$96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of June 30, 2022,2023, each share was convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds.

If certain fundamental changes occur, holders may require the Company, in certain circumstances, to repurchase all or part of their shares of Series C Preferred. In addition, upon the occurrence of certain fundamental changes, the Company will, under certain circumstances, increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the shares of Series C Preferred becoming convertible into shares of the public acquiring or surviving company.
The Company may, at the Company's option, cause shares of Series C Preferred to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company's common shares equals or exceeds 125% of the then prevailing conversion price of the Series C Preferred.
Holders of shares of Series C Preferred generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters and under certain other circumstances. Upon conversion, the Company may choose to deliver the conversion value to investors in cash, common shares, or a combination of cash and common shares.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:
Six Months Ended June 30,Six Months Ended June 30,
2022202120232022
Balance at beginning of periodBalance at beginning of period$(6,258)$(17,963)Balance at beginning of period$17,689 $(6,258)
Other comprehensive income before reclassificationsOther comprehensive income before reclassifications13,895 3,486 Other comprehensive income before reclassifications3,888 13,895 
Amounts of loss reclassified from accumulated other comprehensive income to interest expense1,921 2,436 
Amounts of income (loss) reclassified from accumulated other comprehensive income (loss) to interest expenseAmounts of income (loss) reclassified from accumulated other comprehensive income (loss) to interest expense(5,377)1,921 
Balance at end of periodBalance at end of period$9,558 $(12,041)Balance at end of period$16,200 $9,558 
Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued limited partner interests in LCIF (“OP units”) as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments.
During the six months ended June 30, 2023 and 2022, 4,886 and 20,232 common shares, respectively, were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $25 and $109, respectively.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
As of June 30, 2022,2023, there were approximately 757,000735,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference.
The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests:
Net Income Attributable to
Shareholders and Transfers from Noncontrolling Interests
Net Income Attributable to
Shareholders and Transfers from Noncontrolling Interests
Six Months Ended June 30,Six Months Ended June 30,
20222021 20232022
Net income attributable to LXP Industrial Trust shareholdersNet income attributable to LXP Industrial Trust shareholders$51,920 $113,720 Net income attributable to LXP Industrial Trust shareholders$3,118 $51,920 
Transfers from noncontrolling interests:Transfers from noncontrolling interests:Transfers from noncontrolling interests:
Increase in additional paid-in-capital for reallocation of noncontrolling interests— 435 
Increase in additional paid-in-capital for redemption of noncontrolling OP unitsIncrease in additional paid-in-capital for redemption of noncontrolling OP units109 468 Increase in additional paid-in-capital for redemption of noncontrolling OP units25 109 
Change from net income attributable to shareholders and transfers from noncontrolling interestsChange from net income attributable to shareholders and transfers from noncontrolling interests$52,029 $114,623 Change from net income attributable to shareholders and transfers from noncontrolling interests$3,143 $52,029 


(12)(13)Related Party Transactions
There were no related party transactions other than those disclosed elsewhere in these unaudited condensed consolidated financial statements.

(13)(14)Commitments and Contingencies
In addition to the commitments and contingencies disclosed elsewhere, the Company has the following commitments and contingencies.
The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022 and 2021
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
As of June 30, 2022,2023, the Company had 6six ongoing consolidated development projects and expects to incur approximately $143,939 and $95,229 in$77,000 of costs during the remainder of 2022 and 2023, respectively, excluding noncontrolling interests' share, to substantially complete the construction and estimated tenant improvements and leasing costs of such projects. Etna Park 70, LLC, a joint venture that the projects.Company has a 90% ownership interest, commenced construction of industrial facility estimated to cost $29,000. As of June 30, 2022,2023, the Company has interests in various industrial land parcels held for development. The Company is unable to estimate the timing of any required funding for the potential development projects on these parcels.
The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, LXP Industrial Trust will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion but, no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement.
From time to time, the Company is directly or indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations.
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LXP INDUSTRIAL TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023 and 2022
(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(14)(15)Supplemental Disclosure of Statement of Cash Flow Information
In addition to disclosures discussed elsewhere, during the six months ended June 30, 20222023 and 2021,2022, the Company paid $23,237$25,780 and $23,349,$23,237, respectively, for interest and $952$757 and $1,008,$952, respectively, for income taxes.
During the six months ended June 30, 20222023 and 2021,2022, the Company had $43,551accrued additions for capital projects of $34,884 and $8,998 respectively, of accrued non-cash assets in investments in real estate under construction.
During the six months ended June 30, 2021, the Company renewed a lease that resulted in a non-cash increase of $438 to the related operating lease liability and right of use asset.
During the six months ended June 30, 2021, the acquisition of the interests in RR Ocala 44, LLC joint venture not already owned by the Company included a $489 non-cash increase to investments in real estate under construction and the noncontrolling interest because a member of the joint venture made a non-cash contribution of the land in exchange for its ownership interest in the joint venture.

$50,591, respectively.

(15)(16)Subsequent Events
Subsequent to June 30, 2022,2023, the Company:
amended- acquired a newly-constructed, vacant warehouse/distribution facility containing 124,450 square feet, located in the Dallas, Texas market for a cost of $14,930; and,
- borrowed $50,000 net, on its unsecured revolving credit facility, which extended the maturity of the revolving credit facility to July 2026 and reduced the applicable margin rates on the revolving credit facility. Loans under the facility that were indexed to LIBOR were amended to be indexed to SOFR. In addition, $300,000 of LIBOR swaps were transitioned to SOFR, resulting in a new fixed rate of 2.722% on the Company's $300,000 term loan;
repurchased and retired 1,800,000 common shares for an average price of $10.65 per share and the Company's Board of Trustees increased the repurchase authorization by 10,000,000 shares; and
disposed of 3 properties for an aggregate gross sales price of $91,950.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Introduction

WhenUnless stated otherwise or the context otherwise requires, when we use the terms the “Company,” the “Trust,” “LXP,” “we,” “our,” and “us,” we refer collectively to LXP Industrial Trust and its consolidated subsidiaries. All of the Company's interests are held, and all of the property operating activities are conducted through special purposes entities, which we refer to as property owner subsidiaries or lender subsidiaries and are separate and distinct legal entities, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. References herein to ‘‘this Quarterly Report” are to this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2022.2023. The results of operations contained herein for the three and six months ended June 30, 20222023 and 20212022 are not necessarily indicative of the results that may be expected for a full year.

When we use the term “REIT,” we mean real estate investment trust. All references to 20222023 and 2021,2022, refer to the periods ending June 30, 20222023 and 2021,2022, respectively and our fiscal year ended December 31, 2021.

2022.
When we use the term “GAAP,” we mean United States generally accepted accounting principles in effect from time to time.

When we use the term “common shares,” we mean our shares of beneficial interest par value $0.0001, classified as common stock. When we use the term “Series C Preferred Shares,” we mean our beneficial interest classified as 6.50% Series C Cumulative Convertible Preferred Stock.

When we use the term “base rent,” we mean GAAP rental revenue and ancillary income, excluding billed tenant reimbursements and lease termination income.

When we use “Stabilized Portfolio,” we mean all real estate properties other than acquired or developed properties that have not achieved 90% occupancy within one-year of acquisition or substantial completion. Non-stabilized, substantially completed development projects are classified within investments in real estate under construction.
The following is a discussion and analysis of the unaudited condensed consolidated financial condition and results of operations of LXP Industrial Trust for the three and six months ended June 30, 20222023 and 2021,2022, and significant factors that could affect its prospective financial condition and results of operations. This discussion should be read together with the accompanying unaudited condensed consolidated financial statements of the Company included herein and notes thereto and with the consolidated financial statements and notes thereto included in the Company's most recent Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on February 24, 2022,16, 2023, which we refer to as the Annual Report. Historical results may not be indicative of future performance.

Forward-Looking Statements. This Quarterly Report, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our 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” or similar expressions. Readers should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performances or achievements. In particular, among the factors that could cause actual results, performances or achievements to differ materially from current expectations, strategies or plans include, among others, those risks discussed below in “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and under the headings “Risk Factors” in this Quarterly Report and under “Risk Factors” in Part I, Item A and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Annual Report and other periodic reports filed by the Company with the SEC. Except as required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Accordingly, there is no assurance that our expectations will be realized.

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Overview
As of June 30, 2022,2023, we had equity ownership interests in approximately 121116 consolidated real estate properties, located in 2220 states and containing an aggregate of approximately 55.054.2 million square feet of space, approximately 98.9%99.5% of which was leased.
Since December 31, 2015 through June 30, 2022, we transitioned our portfolio from approximately 16% warehouse/distribution assets to approximately 99% warehouse/distribution assets. As of June 30, 2022,2023, our portfolio consisted of 110109 warehouse/distribution facilities and 11seven other properties.
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On February 8, 2022, we announced that Our warehouse/distribution portfolio is primarily focused in our Board of Trustees initiated a review oftarget markets within the Sunbelt and Midwest. We expect to grow these markets by executing on our strategic alternatives. On April 8, 2022, we announced that our Board of Trustees suspended the review of strategic alternatives.

development pipeline and opportunistically acquiring facilities in these markets.
Second Quarter 20222023 Transaction Summary.

The following summarizes our significant transactions during the three months ended June 30, 2022.2023.
Leasing Activity:
During the second quarter of 2022, we enteredEntered into new and extended leases and lease extensions encompassing 0.92.0 million square feet.feet, including leasing two speculative development projects containing an aggregate of 1.6 million square feet, located in the Columbus, Ohio and Phoenix, Arizona markets. The average fixed rent on these extendedthe new leases was $4.75 per square foot compared to the average fixed rent on these leases before extension of $4.00$7.27 per square foot. The weighted-average cost of tenant improvements and lease commissions was $1.24 per square foot for extended leases and $5.22$15.71 per square foot for new first generation leases.
Investments:
Acquired an industrial propertyCompleted construction of the core and shell for three warehouse/distribution facilities containing 1.5 million square feet in the Phoenix, AZ market for $59.1 million.
Commenced development of two warehouse/distribution facilities in the Tampa, FL market.Greenville-Spartanburg, South Carolina and Central Florida markets.
Invested $52.6an aggregate of $27.1 million in development activities, including $23.4 million in six ongoing development projects, which amount excludes our joint venture partners' share.projects.
Capital Recycling:
Disposed of our interest in two industrial warehouse/distribution properties and one office property for an aggregate gross sales price of $55.1 million.
NNN Office JV L.P. disposed of an office property for a gross sales price of $149.1 million and satisfied $57.5 million of non-recourse debt. We own 20% of the joint venture and we received aggregate proceeds of $16.6 million.
Debt:
Borrowed $120.0 million, net, on our revolving credit facility.
Equity:
Repurchased and retired 6.1 million common shares for an aggregate weighted-average cost of $11.45 per share.
AcquisitionAcquisition/Development Activity:

During the six months ended June 30, 2022,2023, we acquiredcompleted and placed in service the following warehouse/distribution assets, inclusive ofasset:
MarketSquare FeetInitial Capitalized Cost
(millions)
Placed in Service DateApproximate Lease Term
(years)
% Leased
Phoenix, Arizona392,278$37.1 March 202310.0100%
Increased financing costs have slowed transaction activity and development starts in our target markets and the acquisition referenced above:
MarketSquare FeetInitial Capitalized Cost
(millions)
Date AcquiredApproximate Lease Term
(years)
% Leased at Acquisition
Cincinnati/Dayton, OH(1)
232,500$23.4 February 2022N/A— %
Cincinnati/Dayton, OH544,32048.7 February 202210100 %
Phoenix, AZ268,87259.1 April 202215100 %
1,045,692$131.2 
(1)    Subsequentmarkets where we own properties. Proceeds from our dispositions are expected to acquisition, property was fully leased for approximately nine years.

Development Activity:be used to fund our development obligations and reduce leverage.
As of June 30, 2022,2023, we had six consolidated development projects in process with an aggregate estimated total cost of $515.8$425.0 million. We anticipate our remaining funding obligation to substantially complete the construction and estimated tenant improvements and leasing costs of these six projects, exclusive of our joint venture partners' share, to be approximately $239.2$77.0 million. However, the risks associated with development, including supply chain issues, could adversely impact our estimates.
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Critical Accounting Estimates
In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our unaudited condensed consolidated financial statements. A summary of our significant accounting policies which are important to the portrayal of our financial condition and results of operations is set forth in (1) Note 2 to our audited consolidated financial statements, which are included in “Financial Statements and Supplementary Data” in Part II, Item 8 of the Annual Report and (2) Note 2 to our unaudited condensed consolidated financial statements contained in this Quarterly Report.
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Acquisition of Real Estate. Primarily all of our acquisitions of real estate assets and liabilities are accounted for as asset acquisitions. As such, the purchase prices of acquired tangible and intangible assets and liabilities are recorded and allocated at fair value on a relative basis. The recorded allocations of tangible assets are based on the “as-if-vacant” value using estimated cash flow projections of the properties acquired which incorporates discount, capitalization and interest rates as well as available comparable market information. Allocations of intangible assets includes management’s estimates of current market rents and leasing costs.
We use considerable judgement in our estimates of cash flow projections, discount, capitalization and interest rates, fair market lease rates, carrying costs during hypothetical expected lease-up periods and costs to execute similar leases. While our methodology for purchase price allocation did not change during the six months ended June 30, 2022,2023, the real estate market is fluid and our assumptions are based on information currently available in the market at the time of acquisition. Significant increases or decreases in these key estimates, particularly with regards to cash flow projections and discount and capitalization rates, would result in a significantly lower or higher fair value measurement of the real estate assets being acquired.
Revenue Recognition. We enter into agreements with tenants that convey the right to control the use of identified space at our properties in exchange for rental revenue. These agreements meet the criteria for recognition as leases under Accounting Standards Codification (“ASC”) 842, Leases. Lease classification tests require significant estimates and judgments by management in its application. Upon lease commencement or lease modification, we assess the lease classification to determine whether the lease should be classified as a direct financing, sales-type or operating lease. The determination of lease classification requires the calculation of the rate implicit in the lease, which is driven by significant estimates, including the estimation of both the value assigned to the property components on the lease commencement date or upon acquisition and the estimation of the unguaranteed residual value of such components at the end of the lease term. The determination of the lease term also requires judgement because the probability of purchase options and renewals have to be analyzed to conclude if they are reasonably certain of being exercised. If the lease component is determined to be a direct financing or sales-type lease, revenue is recognized over the life of the lease using the rate implicit in the lease.
Most of our leases are operating leases. We recognize operating lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. We commence revenue recognition when possession or control of the space is turned over to the tenant.
We evaluate the collectability of our rental payments and recognize revenue on a cash basis when we believe it is no longer probable that we will receive substantially all of the remaining lease payments. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our unaudited condensed consolidated statements of operations.
Impairment of Real Estate. We record impairments of our real estate assets classified as held for use when triggering events dictate that an asset may be impaired. An impairment is recorded when the carrying amount of the asset exceeds the sum of its undiscounted future operating and residual cash flows. The impairment recorded is the difference between estimated fair value of the asset and the carrying amount. We record impairments of our real estate assets classified as held for sale at the lower of the carrying amount or estimated fair value using the estimated or contracted sales price less costs to sell. Any real estate assets recorded at fair value on a non-recurring basis as a result of our impairment analysis are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers’ opinions of value and/or terms of definitive sales contracts. Additionally, the analysis includes considerable judgement in our estimates of hold periods, projected cash flows and discount and capitalization rates. Significant increases or decreases in any of these inputs, particularly with regards to cash flow projections and discount and capitalization rates, would result in a significantly lower or higher fair value measurement of the real estate assets being assessed.
We will record an impairment charge related to our investments, including investments in non-consolidated entities, if we determine the fair value of the investments are less than their carrying value and such impairment is other-than-temporary. We evaluate whether events or changes in circumstances indicate that the carrying amount of our investments may not be recoverable. Our evaluation of changes in economic or operating conditions and whether an impairment is other-than-temporary may include developing estimates of fair value, forecasted cash flows or operating income before depreciation and amortization. We estimate undiscounted cash flows and fair value using observable and unobservable data such as operating income, hold periods, estimated capitalization and discount rates, or relevant market multiples, leasing prospects and local market information and whether certain impairments are other-than-temporary.

Allowance for Credit Losses.
“ASC 326, Financial Instruments-Credit Losses” (“ASC 326”) requires that we measure and record current expected credit losses for our sales-type lease. We have elected to use a discounted cash flow model to estimate the allowance for credit losses. This model requires us to develop cash flows which project estimated credit losses over the life of the lease and discount these cash flows at the asset’s effective interest rate. We then record an allowance equal to the difference between the amortized cost basis of the asset and the present value of the expected credit loss cash flows.
Expected losses within our cash flows are determined by estimating the probability of default of our tenant and their parent guarantors over the term of the lease. We evaluate the collectability of our investment in a sales-type lease based various
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probability weighted default scenarios that include, but are not limited to, current payment status, the financial strength of our tenant and its parent guarantors, current economic conditions and 20 years of historical information on corporate defaults for entities with similar credit. Estimates in the discounted cash flow model are highly subjective. We have engaged a nationally recognized data analytics firm to assist us with estimating the probability of default of our tenant and their parent guarantor.
We regularly evaluate the extent and impact of any credit deterioration that could affect performance and the value of our investment in a sales-type lease, as well as the financial and operating capability of the tenant. We also evaluate the tenant’s competency in managing and operating the secured property and consider the overall economic environment, real estate sector and geographic sub-market in which the secured property is located. If a tenant's credit deteriorates and it defaults under the terms of the sales-type lease, we put the lease in non-accrual status until it is determined that all payments under the lease are probable of being collected. The criteria evaluated to determine when a lease is in non-accrual status is subjective.

Liquidity and Capital Resources
Cash Flows. We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with applicable REIT requirements in both the short-term and long-term, however, our cash flow from operations may be negatively affected in the near term if we experience tenant defaults as a result of the effects of the current economic condition.conditions. In addition, we anticipate that cash on hand, borrowings under our unsecured revolving credit facility, capital recycling proceeds, issuances of equity, mortgage proceeds and other debt, as well as other available alternatives, will provide the necessary capital required by our business.
At June 30, 2022,2023, our property owner subsidiaries do not have mortgage maturities with balloon payments due until 2031. In addition, certain of our subsidiaries are obligated to fund the construction of our development projects and we sometimes guaranty these obligations. We believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand ($49.823.2 million at June 30, 2022)2023), property sale proceeds and borrowing capacity under our unsecured revolving credit facility ($480.0600.0 million at June 30, 2022,2023, subject to covenant compliance), unsettled forward common share sale contracts, and future cash flows from operations..
Cash flows from operations were $92.6 million for the six months ended June 30, 2023 as compared to $95.2 million for the six months ended June 30, 2022 as compared to $108.7 million for the six months ended June 30, 2021.2022. The decrease was primarily related to property sales, and a decrease in termination fee income, partially offset by the impact of cash flow generated from acquiring properties.properties and stabilizing development assets. The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on mortgage debt and payment of operating and general and administrative costs. We believe the net-lease structure of the leases encumbering a majority of the properties in which we have an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. The collection and timing of tenant rents are closely monitored by management as part of our cash management program.
Net cash used in investing activities totaled $217.1$38.9 million and $140.3$217.1 million during the six months ended June 30, 20222023 and 2021,2022, respectively. Cash used in investing activities in 2023 related primarily to acquisitions of real estate, investments in real estate under construction, capital expenditures, lease costs, investments in non-consolidated entities and changes in real estate deposits, net. Cash provided by investing activities primarily related to net proceeds received from the disposition of real estate and distributions from non-consolidated entities. During the six months ended June 30, 2022, cash used in investing activities included additional acquisition and development activity when compared to 2023.
Net cash provided by (used in)used in financing activities totaled ($19.2)$85.0 million and $50.4$19.2 million during the six months ended June 30, 20222023 and 2021,2022, respectively. Cash provided by financing activities primarily related to the issuances of common shares and cash contributions from noncontrolling interests. Cash used in financing activities in 2023 was primarily related to dividend and debt service payments. Cash used in financing activities in 2022 was primarily related to the repurchase of common shares,stock, the purchase of a noncontrolling interest and dividend and debt service payments.payments, offset by common stock issuances and revolving credit facility borrowings.
Common Share Issuances:
At-The-Market Offering Program.Program. We maintain an At-The-Market offering program ("ATM program") under which the Companywe can issue common shares, including through forward sales contracts.

We did not sell shares under the ATM program during the six months ended June 30, 2023 and June 30, 2022, respectively.

During the six months ended June 30, 2022, we settled 3.6 million common shares previously sold in 2021 on a forward basis on the maturity date of the contractscontract and received $38.5 million of net proceeds. ThereNo shares were nosold on a forward share settlementsbasis during the six months ended June 30, 2021. All forward sales contracts under our ATM program have been settled as of June 30, 2022.2023.

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In February 2021, we amended the terms of our ATM offering program, under which we may, from time to time, sell up to $350.0 million common shares over the term of the program. As of June 30, 2022,2023, common shares with an aggregate value of $295.0 million remain available for issuance under the ATM program.

Underwritten Equity Offerings. In May 2021, we entered into forward sales contracts for the sale of 16,000,000 common shares at a public offering price of $12.11 per common share in an underwritten equity offering that have not yet settled. The forward sales contracts mature in December 2022, subject to our right to elect cash or net share settlement. As of June 30, 2022, the forward sales contracts had an aggregate settlement price of $183.4 million, which is subject to adjustment in accordance with the forward sales contracts.

The volatility in the capital markets primarily resulting from the effects of the current economic conditions may negatively affect our ability to access the capital markets through our ATM program and other offerings.
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Share Repurchase Program. During 2015,2022, our Board of Trustees authorized the repurchase of an additional 10.0 million common shares and increased this authorization by 10.0 million common shares in 2018. Theunder our share repurchase program doeswith no expiration date. We did not expire.repurchase any common shares during the six months ended June 30, 2023. During the six months ended June 30, 2022, we repurchased and retired approximately 6.1 million common shares at an average price of $11.45 per share. We did not repurchase any common shares during the six months ending June 30, 2021. Approximately 2.96.9 million common shares remained available for repurchase under the current authorization as of June 30, 2022.2023. We, have continued to, and in the future, may repurchase our common shares in the context of our overall capital plan and to the extent we believe market volatility offers prudent investment opportunities based on our common share price versus net asset value per share.

Dividends. Dividends paid to our common and preferred shareholders were $72.7$76.1 million and $64.7$72.7 million in the six months ended June 30, 20222023 and 2021,2022, respectively.
We declared a quarterly dividend of $0.12$0.125 per common share during the threesix months ended June 30, 2022,2023, which is an increase of $0.005 per common share from the $0.1075$0.12 per common share quarterly dividend declared during the threesix months ended June 30, 2021.2022.
UPREIT Structure.Operating Partnership. As of June 30, 2022, 0.82023, 0.7 million units of limited partner interests, or OP units, in our operating partnership, LCIF, were outstanding not including OP units held by us. Assuming all outstanding OP units not held by us were redeemed on such date, the estimated fair value of such OP units was $9.2$8.1 million based on our closing price of $10.74$9.75 per common share as of June 30, 20222023 and a redemption factor of approximately 1.13 common shares per OP unit.
Financings. The following senior notes were outstanding as of June 30, 2022:2023:
Issue DateIssue DateFace Amount ($000)Interest RateMaturity DateIssue PriceIssue DateFace Amount (millions)Interest RateMaturity DateIssue Price
August 2021August 2021$400,000 2.375 %October 203199.758 %August 2021$400.0 2.375 %October 203199.758 %
August 2020August 2020400,000 2.70 %September 203099.233 %August 2020400.0 2.70 %September 203099.233 %
May 2014May 2014198,932 4.40 %June 202499.883 %May 2014198.9 4.40 %June 202499.883 %
$998,932 
Senior note payableSenior note payable$998.9 
Each series of senior notes is unsecured and requires payment of interest semi-annually in arrears. We may redeem the notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the Senior Notessenior notes being redeemed plus aany potential make-whole premium.
A summary of the maturity dates and interest rates of our unsecured credit agreement, as of June 30, 2022,2023, are as follows:

Maturity Date
Current
Interest Rate
$600.0 Million Revolving Credit Facility(1)
February 2023July 2026LIBORSOFR + 0.90%0.85%
$300.0 Million Term Loan(2)
January 2025LIBORTerm SOFR + 1.00%
(1)    Maturity date of the revolving credit facility can be extended to February 2024July 2027 at our option.option, subject to certain conditions. The interest rate ranges from LIBORSOFR plus 0.775%0.725% to 1.45%1.40%. At June 30, 2022,2023, we had $120.0 millionno borrowings outstanding and availability of $480.0$600.0 million, subject to covenant compliance.
(2)    The LIBORTerm SOFR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum.2.722%.

As of June 30, 2022,2023, we were compliant with all applicable financial covenants contained in our corporate-level debt agreements.

Contractual Obligations



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Development Costs
As of June 30, 2022,2023, we had six ongoing consolidated development projects and expect to incur approximately $143.9 million and $95.2$77.0 million of costs induring the remainder of 2022 and 2023, respectively, excluding noncontrolling interests' share, to substantially complete the construction of such projects. Etna Park 70, LLC, a joint venture that the Company has a 90% ownership interest, commenced construction of industrial facility estimated to cost $29.0 million. As of June 30, 2022,2023, we had interests in variousthree consolidated and two non-consolidated subsidiaries that owned land parcels held for industrial development. We are unable to estimate the timing of any required funding for potential development projects on these parcels.

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Results of Operations
Three months ended June 30, 20222023 compared with three months ended June 30, 20212022. The decrease in net income (loss) attributable to common shareholders of $31.3$49.4 million was primarily due to the items discussed below.
The decreaseincrease in total gross revenues of $1.8$7.3 million was primarily due to an increase of $3.9 million in base rental revenue and a $3.2 million increase in tenant reimbursement income primarily due to acquisitions, properties placed in service and leasing, partially offset by a decrease in termination income of $0.9 million recognized during the three months ended June 30, 2021. In addition,rental revenue due to property sales, including the recapitalization of our special purpose industrial portfolio now owned in a non-consolidated joint venture, contributed to the decrease, which was partially offset by revenue from recently acquired properties and an increase in advisory fees.sales.
The increase in depreciation and amortization expense of $2.1$0.8 million was primarily due to acquisition activity.properties acquired and/or completed and placed in service subsequent to June 30, 2022.
The increase in property operating expense of $2.1$2.0 million was primarily due to an increase in operating expense responsibilities at certain properties.
The increase in general and administrative expenses of $1.4 million was primarily due to an increase of $0.8 million in costs incurred related to the Board of Trustees strategic alternatives review and consulting costs related to shareholder activism. The remaining $0.6 million increase is primarily payroll expense, trustee fees and business insurance.
The decrease in interest and amortization expense of $0.7 million related primarily to a $1.0$1.8 million increase in capitalized interest related to increasedour on-going development. The decrease was partiallyAdditionally, interest expense decreased $0.3 million related to secured debt outstanding. These decreases were offset by $0.3a $1.4 million increase in interest expense related to increased unsecured debt outstanding and increased interest rates on our variable-rate unsecured debt during the three months ended June 30, 20222023 compared to the three months ended June 30, 2021.2022.
The increase in impairment charges of $1.8$11.1 million was primarily related to a predominantly vacant property. There were nothe timing of impairment charges recognized on certain properties. The impairments in 2021.2023 were taken on office assets primarily due to potential sales.
The decrease in gains on sales of properties of $38.9$27.9 million was related to the timing of property dispositions.
The increase in equity in earnings (losses) of non-consolidated entities of $5.7 million was primarily due to recognizing our share of gains on sale of one property from the NNN Office JV L.P. in 2022 in the amount of $11.6 million with no property sales at our non-consolidated entities in 2021. The increase was primarily offset by recognizing our share of impairment charges and losses on debt satisfaction related to NNN Office JV L.P. in 2022 in the amount of $4.2 million and $1.5 million, respectively.
The increasedecrease in selling profit from sales-type lease of $9.3 million is due to a tenant exercising its purchase option resulting in a change in lease classification from an operating lease to a sales-type lease in 2022 with no comparable transaction in 2021.2023.
The decrease in net income attributable to noncontrolling interestsequity in earnings (losses) of $0.9non-consolidated entities of $6.6 million was primarily attributabledue to a decrease in third-party OP unitholders and timingrecognizing our share of gains recognized on sale of one property from the NNN Office JV L.P. in 2022 in the amount of $11.6 million with no property sales at our non-consolidated entities in 2023. The decrease was primarily offset by recognizing our share of properties by LCIF.impairment charges and losses on debt satisfaction related to NNN Office JV L.P. in 2022 in the amount of $4.2 million and $1.5 million, respectively, with no similar transactions in 2023.
Six months ended June 30, 20222023 compared with six months ended June 30, 20212022. The decrease in net income (loss) attributable to common shareholders of $61.7$48.8 million was primarily due to the items discussed below.
The decreaseincrease in total gross revenues of $14.0$12.1 million was primarily due to an increase of $6.8 million in base rental revenue and a decrease$5.2 million increase in terminationtenant reimbursement income of $11.8 million recognized during the six months ended June 30, 2021. In addition, property sales, including the recapitalization of our special purpose industrial portfolio now ownedprimarily due to acquisitions, properties placed in a non-consolidated joint venture, contributed to the decrease, which wasservice and leasing, partially offset by revenue from recently acquired properties and an increase in advisory fees.property sales.
The increase in depreciation and amortization expense of $4.5$2.0 million was primarily due to acquisition activity.properties acquired and/or completed and placed in service subsequent to January 1, 2022.
The increase in property operating expense of $5.8$2.7 million was primarily due to an increase in operating expense responsibilities at certain properties.
The increasedecrease of $1.8 million in general and administrative expenses of $3.7 million wasexpense is primarily duerelated to an increasea decrease of $1.9 million in costs incurred related to the Board of Trustees' strategic alternatives review and consulting costs related to shareholder activism. The remaining $1.2 million increase is primarily payroll expense.
The decreaseactivism in interest and amortization expense of $1.5 million related primarily to a $1.4 million increase in capitalized interest2022. There were no consulting costs incurred related to increased development.shareholder activism during the six months ended June 30, 2023.
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The increase in impairment charges of $1.8$14.7 million was primarily related to a predominantly vacant property. There were nothe timing of impairment charges recognized on certain properties. The impairments in 2021.2023 were taken on office assets primarily due to potential sales.
The decrease in gains on sales of properties of $60.5$20.2 million was related to the timing of property dispositions.
The increase in equity in earnings (losses) of non-consolidated entities of $17.1 million was primarily due to recognizing our share of gains on sale of three properties from the NNN Office JV L.P. in 2022 in the amount of $22.9 million with no property sales at our non-consolidated entities in 2021. The increase was primarily offset by recognizing our share of impairment charges and losses on debt satisfaction related to the NNN Office JV L.P. in 2022 in the amount of $4.2 million and $1.5 million, respectively.
The increasedecrease in selling profit from sales-type lease of $9.3 million is due to a tenant in our industrial portfolio exercising its purchase option resulting in a change in lease classification from an operating lease to a sales-type lease in 2022 with no comparable transaction in 2021.2023.
The decrease in net income attributable to noncontrolling interestsequity in earnings (losses) of $1.0non-consolidated entities of $14.3 million was primarily attributabledue to a decrease in third-party OP unitholders and the timing of gains recognized onproperty sales of properties by LCIF.within our non-consolidated entities.
Same-Store Results
Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for the entirety of two comparable reporting periods. We define NOI as operating revenues (rental income (less non-cash GAAP rent adjustments, non-cash income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. As same-store NOI excludes the change in NOI from acquired and disposed of properties, 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 same-store NOI may not be comparable to other REITs. Management believes that same-store NOI is a useful supplemental measure of our operating performance. However, same-store NOI should not be viewed as an alternative measure of our financial performance since it does not reflect the operations of our 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 our properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations. We believe that net income is the most directly comparable GAAP measure to same-store NOI.
The following presents our consolidated same-store NOI, for the three and six months ended June 30, 20222023 and 20212022 ($000's):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Total cash base rent$54,637 $52,640 $107,708 $103,765 
Tenant reimbursements9,141 8,940 18,599 17,647 
Property operating expenses(10,755)(10,178)(21,978)(19,899)
Same-store NOI$53,023 $51,402 $104,329 $101,513 

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Total cash base rent$62,350 $59,194 $121,357 $115,936 
Tenant reimbursements13,526 10,961 25,759 22,096 
Property operating expenses(14,291)(11,818)(27,162)(23,907)
Same-store NOI$61,585 $58,337 $119,954 $114,125 
Our reported same-store NOI increased for the three and six months of 2021ended June 30, 2023 compared to the three and six months ofended June 30, 2022 by 3.2%5.6% and 2.8%5.1%, respectively, primarily due to an increase in occupancy and cash base rents. As of June 30, 2023 and 2022, and 2021, our historical same-store square footageproperties were 99.8% leased, was 99.3% and 98.5%, respectively.

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Below is a reconciliation of net income (loss) to same-store NOI for periods presented ($000's):

Three Months Ended June 30,Six Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,
20222021202220212023202220232022
Net income$41,538 $73,787 $52,446 $115,262 
Net income (loss)Net income (loss)$(7,780)$41,538 $3,535 $52,446 
Interest and amortization expenseInterest and amortization expense10,821 11,474 21,503 22,960 Interest and amortization expense10,144 10,821 21,537 21,503 
Provision for income taxesProvision for income taxes263 344 680 716 Provision for income taxes210 263 426 680 
Depreciation and amortizationDepreciation and amortization45,193 43,044 89,699 85,220 Depreciation and amortization45,993 45,193 91,734 89,699 
General and administrativeGeneral and administrative9,296 7,912 20,033 16,332 General and administrative9,010 9,296 18,252 20,033 
Transaction costsTransaction costs(34)130 55 141 Transaction costs— (34)55 
Non-operating/advisory fee incomeNon-operating/advisory fee income(1,503)(744)(2,986)(1,974)Non-operating/advisory fee income(1,143)(1,503)(2,545)(2,986)
Gains on sales of propertiesGains on sales of properties(27,855)(66,726)(28,110)(88,645)Gains on sales of properties— (27,855)(7,879)(28,110)
Impairment chargesImpairment charges1,829 — 1,829 — Impairment charges12,967 1,829 16,490 1,829 
Selling profit from sales-type leaseSelling profit from sales-type lease(9,314)— (9,314)— Selling profit from sales-type lease— (9,314)— (9,314)
Equity in (earnings) losses of non-consolidated entitiesEquity in (earnings) losses of non-consolidated entities(5,619)84 (16,920)174 Equity in (earnings) losses of non-consolidated entities1,014 (5,619)(2,590)(16,920)
Lease termination income, net— (886)— (11,827)
Straight-line adjustmentsStraight-line adjustments(3,313)(2,930)(6,815)(4,950)Straight-line adjustments(2,638)(3,313)(5,725)(6,815)
Lease incentivesLease incentives129 194 263 413 Lease incentives109 129 205 263 
Amortization of above/below market leasesAmortization of above/below market leases(481)(437)(961)(897)Amortization of above/below market leases(449)(481)(898)(961)
Sales-type lease interest income(13)— (13)— 
Sales-types lease adjustmentsSales-types lease adjustments(651)(13)(1,098)(13)
NOINOI60,937 65,246 121,389 132,925 NOI66,786 60,937 131,448 121,389 
Less NOI:Less NOI:Less NOI:
Acquisitions, development and dispositions(7,914)(13,844)(17,060)(31,412)
Acquisitions, developments and dispositionsAcquisitions, developments and dispositions(5,201)(2,600)(11,494)(7,264)
Same-Store NOISame-Store NOI$53,023 $51,402 $104,329 $101,513 Same-Store NOI$61,585 $58,337 $119,954 $114,125 


Funds From Operations
We believe 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. We believe 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 the 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.
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We present FFO available to common shareholders and unitholders - basic and also present FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period. We also present Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio. We believe 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 our operating performance or as an alternative to cash flow as a measure of liquidity.
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The following presents a reconciliation of net income (loss) attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for the three and six months ended June 30, 20222023 and 20212022 (unaudited and dollars in thousands, except share and per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021Three Months Ended June 30,Six Months Ended June 30,
FUNDS FROM OPERATIONS:FUNDS FROM OPERATIONS:FUNDS FROM OPERATIONS:2023202220232022
Basic and Diluted:Basic and Diluted:Basic and Diluted:
Net income attributable to common shareholders$39,667 $71,000 $48,665 $110,397 
Net income (loss) attributable to common shareholdersNet income (loss) attributable to common shareholders$(9,683)$39,667 $(161)$48,665 
Adjustments:Adjustments:Adjustments:
Depreciation and amortization44,523 42,312 88,373 83,790 
Impairment charges - real estate, including our share of non-consolidated entities6,043 — 6,043 — 
Depreciation and amortization - real estateDepreciation and amortization - real estate45,028 44,523 89,888 88,373 
Impairment charges - real estateImpairment charges - real estate12,967 6,043 16,490 6,043 
Noncontrolling interests - OP unitsNoncontrolling interests - OP units47 912 136 1,151 Noncontrolling interests - OP units(81)47 (78)136 
Amortization of leasing commissionsAmortization of leasing commissions670 732 1,326 1,430 Amortization of leasing commissions965 670 1,846 1,326 
Joint venture and noncontrolling interest adjustmentJoint venture and noncontrolling interest adjustment2,823 2,114 5,973 4,229 Joint venture and noncontrolling interest adjustment1,929 2,823 4,329 5,973 
Gains on sales of properties, including our share of non-consolidated entities, net of tax(39,435)(66,726)(50,961)(88,645)
Gains on sales of properties, including our share of non-consolidated entitiesGains on sales of properties, including our share of non-consolidated entities— (39,435)(12,654)(50,961)
FFO available to common shareholders and unitholders - basicFFO available to common shareholders and unitholders - basic54,338 50,344 99,555 112,352 FFO available to common shareholders and unitholders - basic51,125 54,338 99,660 99,555 
Preferred dividendsPreferred dividends1,573 1,573 3,145 3,145 Preferred dividends1,573 1,573 3,145 3,145 
Amount allocated to participating securitiesAmount allocated to participating securities58 105 110 178 Amount allocated to participating securities62 58 134 110 
FFO available to all equityholders and unitholders - dilutedFFO available to all equityholders and unitholders - diluted55,969 52,022 102,810 115,675 FFO available to all equityholders and unitholders - diluted52,760 55,969 102,939 102,810 
Selling profit from sales-type lease(1)
Selling profit from sales-type lease(1)
(9,314)— (9,314)— 
Selling profit from sales-type lease(1)
— (9,314)— (9,314)
Non-recurring costs(2)
719 130 1,989 141 
Allowance for credit lossesAllowance for credit losses(110)— (31)— 
Transaction costs(2)
Transaction costs(2)
— (34)55 
Debt satisfaction losses, net, including our share of non-consolidated entitiesDebt satisfaction losses, net, including our share of non-consolidated entities1,495 — 1,495 — Debt satisfaction losses, net, including our share of non-consolidated entities— 1,495 — 1,495 
Other non-recurring costs(3)
Other non-recurring costs(3)
— 753 — 1,934 
Noncontrolling interest adjustmentsNoncontrolling interest adjustments— — 
Adjusted Company FFO available to all equityholders and unitholders - dilutedAdjusted Company FFO available to all equityholders and unitholders - diluted$48,869 $52,152 $96,980 $115,816 Adjusted Company FFO available to all equityholders and unitholders - diluted$52,655 $48,869 $102,913 $96,980 
Per Common Share and Unit AmountsPer Common Share and Unit AmountsPer Common Share and Unit Amounts
Basic:Basic:Basic:
FFOFFO$0.19 $0.18 $0.35 $0.40 FFO$0.18 $0.19 $0.34 $0.35 
Diluted:Diluted:Diluted:
FFOFFO$0.19 $0.18 $0.35 $0.41  FFO$0.18 $0.19 $0.35 $0.35 
Adjusted Company FFOAdjusted Company FFO$0.17 $0.18 $0.33 $0.41 Adjusted Company FFO$0.18 $0.17 $0.35 $0.33 
Weighted-Average Common Shares:Weighted-Average Common Shares:Weighted-Average Common Shares:
Basic:Basic:Basic:
Weighted-average common shares outstanding - basic EPSWeighted-average common shares outstanding - basic EPS283,568,078 275,568,868 283,604,072 275,493,019 Weighted-average common shares outstanding - basic EPS290,186,934 283,568,078 290,134,015 283,604,072 
Operating partnership units(3)(4)
Operating partnership units(3)(4)
860,048 2,793,718 865,512 2,822,907 
Operating partnership units(3)(4)
828,603 860,048 830,335 865,512 
Weighted-average common shares outstanding - basic FFOWeighted-average common shares outstanding - basic FFO284,428,126 278,362,586 284,469,584 278,315,926 Weighted-average common shares outstanding - basic FFO291,015,537 284,428,126 290,964,350 284,469,584 
Diluted:Diluted:Diluted:
Weighted-average common shares outstanding - diluted EPSWeighted-average common shares outstanding - diluted EPS285,436,441 277,466,056 287,687,397 276,834,089 Weighted-average common shares outstanding - diluted EPS291,015,537 285,436,441 290,964,350 287,687,397 
Operating partnership units(3)
— 2,793,718 — 2,822,907 
Unvested share-based payment awardsUnvested share-based payment awards10,140 44,489 34,762 26,808 Unvested share-based payment awards135,172 10,140 131,522 34,762 
Preferred shares - Series CPreferred shares - Series C4,710,570 4,710,570 4,710,570 4,710,570 Preferred shares - Series C4,710,570 4,710,570 4,710,570 4,710,570 
Weighted-average common shares outstanding - diluted FFOWeighted-average common shares outstanding - diluted FFO290,157,151 285,014,833 292,432,729 284,394,374 Weighted-average common shares outstanding - diluted FFO295,861,279 290,157,151 295,806,442 292,432,729 
(1) Gain recognized upon exercise of the tenant's purchase option in the lease.
(2) Includes transaction,costs related to entering into a sales-type lease and other investments costs.
(3) Includes strategic alternatives and costs related to shareholder activism.
(3)(4) Includes all OP units other than OP units held by us.
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Off-Balance Sheet Arrangements
As of June 30, 2022,2023, we had investments in various real estate entities with varying structures. The real estate investments owned by these entitiesour institutional joint ventures are generally financed with non-recourse debt. Non-recourse debt is generally defined as debt whereby the lenders' sole recourse with respect to borrower defaults is limited to the value of the assets collateralized by the debt. The lender generally does not have recourse against any other assets owned by the borrower or any of the members or partners of the borrower, except for certain specified exceptions listed in the particular loan documents. These exceptions generally relate to "bad boy" acts, including fraud, prohibited transfers and breaches of material representations.representations, and environmental matters. We have guaranteed such obligations for certain of our non-consolidated entities with respect to $608.9$503.9 million of such non-recourse debt. We believe the likelihood of making any payments under such guaranties is remote and we generally have an agreement from each partner to reimburse us for its proportionate share of any liability related to a guarantee trigger unless such trigger is caused solely by us.
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ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK

Our exposure to market risk relates primarily to our variable-rate indebtedness not subject to interest rate swaps and our fixed-rate debt. Our consolidated aggregate principal variable-rate indebtedness not subject to interest rate swaps was $129.1 million and $249.1 million, and $254.1 millionrespectively, at each of June 30, 20222023 and 2021,2022, which represented 15.3%8.6% and 17.3%15.3%, respectively, of our aggregate principal consolidated indebtedness. During the three months ended June 30, 20222023 and 2021,2022, our variable-rate indebtedness had a weighted-average interest rate of 2.3%6.7% and 1.9%2.3%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for the three months ended June 30, 20222023 and 20212022 would have increased by $0.6$0.5 million and $0.3$0.6 million, respectively. During the six months ended June 30, 20222023 and 2021,2022, our variable-rate indebtedness had a weighted-average interest rate wasof 6.5% and 2.2% and 1.9%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for the six months ended June 30, 20222023 and 20212022 would have increased by $0.9$1.0 million and $0.7$0.9 million, respectively. At each of June 30, 20222023 and 2021,2022, our aggregate principal consolidated fixed-rate debt was $1.4 billion, and $1.2 billion, respectively, which represented 84.7%91.4% and 82.7%84.7%, respectively, of our aggregate principal indebtedness.

For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties. Accordingly, we derive or estimate fair values using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved. However, the determination of estimated cash flows may be subjective and imprecise. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values, especially given the volatility of the current economic environment. The following fair value was determined using the interest rates that we believe our outstanding fixed-rate indebtedness would warrant as of June 30, 2022.2023. We believe the fair value is indicative of the interest rate environment as of June 30, 2022,2023, but this amount does not take into consideration the effects of subsequent interest rate fluctuations. Accordingly, we estimate that the fair value of our fixed-rate indebtedness was $1.2 billion as of June 30, 2022.2023.

Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, we manage our exposure to fluctuations in market interest rates through the use of fixed-rate debt instruments to the extent that reasonably favorable rates are obtainable with such arrangements. We may enter into derivative financial instruments such as interest rate swaps or caps to mitigate our interest rate risk on a related financial instrument or to effectively lock the interest rate on a portion of our variable-rate debt. As of June 30, 2022,2023, we had four interest rate swap agreements (see noteNote 8 to our unaudited condensed consolidated financial statements contained in this Quarterly Report).

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as such terms are defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report to determine if such controls and procedures were effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management, including each of our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures were effective as of June 30, 2022.

2023.
Changes in Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this Quarterly Report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls. Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.
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PART II - OTHER INFORMATION
ITEM 1.Legal Proceedings.
From time to time, we are directly and indirectly involved in legal proceedings arising in the ordinary course of our business, including claims by lenders under non-recourse carve-out guarantees. We believe, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on our business, financial condition and results of operations.

ITEM 1A.Risk Factors.
There have been no material changes in our risk factors from those disclosed in the Annual Report.

ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds.
The following table summarizes repurchases of our common shares/OP units during the three months ended June 30, 20222023 pursuant to publicly announced repurchase plans (1):

Period(a)
Total Number of Shares/Units Purchased
(b)
Average Price Paid for Share/Unit
(c)
Total Number of Shares/Units Purchased as Part of Publicly Announced Plans or Programs (1)
(d)
Maximum Number of Shares/Units That May Yet Be Purchased Under the Plans or Programs (1)
April 1 - 30, 20221,238,427 $13.41 1,238,427 7,737,888 
May 1 - 31, 20221,692,088 $11.22 1,692,088 6,045,800 
June 1 - 30, 2022 (2)
3,167,511 $10.82 3,167,511 2,878,289 
Second quarter 20226,098,026 $11.45 6,098,026 2,878,289 
Period(a)
Total Number of Shares/Units Purchased
(b)
Average Price Paid for Share/Unit
(c)
Total Number of Shares/Units Purchased as Part of Publicly Announced Plans or Programs (1)
(d)
Maximum Number of Shares/Units That May Yet Be Purchased Under the Plans or Programs (1)
April 1 - 30, 2023— $— — 6,874,241 
May 1 - 31, 2023— $— — 6,874,241 
June 1 - 30, 2023— $— — 6,874,241 
Second quarter 2023— $— — 6,874,241 

(1)    Share repurchase authorization of an additional 10.0 million common shares announced on November 2, 2018,August 4, 2022, which has no expiration data.
(2)    Excludes 350,000 common shares that were purchased in June 2022 that were settled in July 2022.


date.
ITEM 3.Defaults Upon Senior Securities - not applicable.
ITEM 4.Mine Safety Disclosures - not applicable.
ITEM 5.Other Information - not applicable.
During the three months ended June 30, 2023, no trustee or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.


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ITEM 6.Exhibits.
Exhibit No.   Description
     
  
  
  
  
  
  
  
  
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101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (2, 5)
101.SCHInline XBRL Taxonomy Extension Schema (2, 5)
101.CALInline XBRL Taxonomy Extension Calculation Linkbase (2, 5)
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document (2, 5)
101.LABInline XBRL Taxonomy Extension Label Linkbase Document (2, 5)
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document (2, 5)

(1)    Incorporated by reference.
(2)    Filed herewith.
(3)    Furnished herewith. This exhibit shall not be deemed "filed"“filed” for purposes of Section 11 or 12 of the Securities Act of 1933, as amended (the "Securities Act"“Securities Act”), or Section 18 of the Securities Exchanges Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of those sections, and shall not be part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing or document.
(4)    Management contract or compensatory plan or arrangement.
(5)    The following materials from this Quarterly Report on Form 10-Q for the period ended June 30, 20222023 are formatted in Inline XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Balance Sheets of the Company; (ii) Unaudited Condensed Consolidated Statements of Operations of the Company; (iii) Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) of the Company; (iv) Unaudited Condensed Consolidated Statements of Changes in Equity of the Company; (v) Unaudited Condensed Consolidated Statements of Cash Flows of the Company; and (vi) Notes to Unaudited Condensed Consolidated Financial Statements of the Company, detailed tagged.
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 LXP Industrial Trust
   
Date:August 4, 20222, 2023By:/s/ T. Wilson Eglin
  T. Wilson Eglin
  
Chief Executive Officer and President
(principal executive officer)
   
Date:August 4, 20222, 2023By:/s/ Beth Boulerice
  Beth Boulerice
  
Chief Financial Officer, Executive Vice President and Treasurer
(principal financial officer)




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