Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period Ended Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-12386 | |
Entity Registrant Name | LXP INDUSTRIAL TRUST | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-3717318 | |
Entity Address, Address Line One | One Penn Plaza, Suite 4015 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10119-4015 | |
City Area Code | 212 | |
Local Phone Number | 692-7200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 279,894,989 | |
Entity Central Index Key | 0000910108 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock | |
Trading Symbol | LXP | |
Security Exchange Name | NYSE | |
Series C Cumulative Convertible Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share | |
Trading Symbol | LXPPRC | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Real estate, at cost | $ 3,631,514 | $ 3,583,978 |
Real estate - intangible assets | 332,646 | 341,403 |
Land held for development | 108,032 | 104,160 |
Investments in real estate under construction | 294,399 | 161,165 |
Real estate, gross | 4,366,591 | 4,190,706 |
Less: accumulated depreciation and amortization | 703,300 | 655,740 |
Real estate, net | 3,663,291 | 3,534,966 |
Assets held for sale | 114,546 | 82,586 |
Right-of-use assets, net | 25,994 | 27,966 |
Cash and cash equivalents | 49,817 | 190,926 |
Restricted cash | 109 | 101 |
Investments in non-consolidated entities | 59,132 | 74,559 |
Deferred expenses, net | 22,627 | 18,861 |
Rent receivable – current | 2,604 | 3,526 |
Rent receivable – deferred | 67,404 | 63,283 |
Investment in a sales-type lease | 28,013 | 0 |
Other assets | 20,883 | 8,784 |
Total assets | 4,054,420 | 4,005,558 |
Liabilities: | ||
Mortgages and notes payable, net | 77,651 | 83,092 |
Revolving credit facility borrowings | 120,000 | 0 |
Term loan payable, net | 298,698 | 298,446 |
Senior notes payable, net | 988,613 | 987,931 |
Trust preferred securities, net | 127,644 | 127,595 |
Dividends payable | 35,578 | 37,425 |
Liabilities held for sale | 5,095 | 3,468 |
Operating lease liabilities | 26,983 | 29,094 |
Accounts payable and other liabilities | 81,787 | 77,607 |
Accrued interest payable | 7,947 | 8,481 |
Deferred revenue - including below-market leases, net | 12,195 | 14,474 |
Prepaid rent | 12,579 | 14,717 |
Total liabilities | 1,794,770 | 1,682,330 |
Commitments and contingencies | ||
Equity: | ||
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding | 94,016 | 94,016 |
Common shares, par value $0.0001 per share; authorized 600,000,000 shares, 281,670,437 and 283,752,726 shares issued and outstanding in 2022 and 2021, respectively | 28 | 28 |
Additional paid-in-capital | 3,189,713 | 3,252,506 |
Accumulated distributions in excess of net income | (1,068,408) | (1,049,434) |
Accumulated other comprehensive income (loss) | 9,558 | (6,258) |
Total shareholders’ equity | 2,224,907 | 2,290,858 |
Noncontrolling interests | 34,743 | 32,370 |
Total equity | 2,259,650 | 2,323,228 |
Total liabilities and equity | $ 4,054,420 | $ 4,005,558 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Equity: | ||
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Series C Cumulative Convertible Preferred, liquidation preference | $ 96,770 | $ 96,770 |
Series C Cumulative Convertible Preferred, shares issued (in shares) | 1,935,400 | 1,935,400 |
Series C Cumulative Convertible Preferred, shares outstanding (in shares) | 1,935,400 | 1,935,400 |
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized shares (in shares) | 600,000,000 | |
Common shares, shares issued (in shares) | 281,670,437 | 283,752,726 |
Common shares, outstanding (in shares) | 281,670,437 | 283,752,726 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Gross revenues: | ||||
Rental revenue | $ 77,939 | $ 80,572 | $ 156,475 | $ 172,217 |
Total gross revenues | 79,775 | 81,541 | 160,053 | 174,098 |
Expense applicable to revenues: | ||||
Depreciation and amortization | (45,193) | (43,044) | (89,699) | (85,220) |
General and administrative | (9,296) | (7,912) | (20,033) | (16,332) |
Non-operating income | 79 | 4 | 111 | 481 |
Interest and amortization expense | (10,821) | (11,474) | (21,503) | (22,960) |
Impairment charges | (1,829) | 0 | (1,829) | 0 |
Gains on sales of properties | 27,855 | 66,726 | 28,110 | 88,645 |
Selling profit from sales-type lease | 9,314 | 0 | 9,314 | 0 |
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities | 36,182 | 74,215 | 36,206 | 116,152 |
Provision for income taxes | (263) | (344) | (680) | (716) |
Equity in earnings (losses) of non-consolidated entities | 5,619 | (84) | 16,920 | (174) |
Net income | 41,538 | 73,787 | 52,446 | 115,262 |
Less net income attributable to noncontrolling interests | (240) | (1,109) | (526) | (1,542) |
Net income attributable to LXP Industrial Trust shareholders | 41,298 | 72,678 | 51,920 | 113,720 |
Allocation to participating securities | (58) | (105) | (110) | (178) |
Net income attributable to common shareholders | $ 39,667 | $ 71,000 | $ 48,665 | $ 110,397 |
Net income attributable to common shareholders - per common share basic (in dollars per share) | $ 0.14 | $ 0.26 | $ 0.17 | $ 0.40 |
Weighted-average common shares outstanding – basic (in shares) | 283,568,078 | 275,568,868 | 283,604,072 | 275,493,019 |
Net income attributable to common shareholders – per common share diluted (in dollars per share) | $ 0.14 | $ 0.26 | $ 0.17 | $ 0.40 |
Weighted-average common shares outstanding – diluted (in shares) | 285,436,441 | 277,466,056 | 287,687,397 | 276,834,089 |
Series C | ||||
Expense applicable to revenues: | ||||
Dividends attributable to preferred shares – Series C | $ (1,573) | $ (1,573) | $ (3,145) | $ (3,145) |
Other revenue | ||||
Gross revenues: | ||||
Other revenue | 1,836 | 969 | 3,578 | 1,881 |
Property operating | ||||
Expense applicable to revenues: | ||||
Property operating | $ (13,702) | $ (11,626) | $ (28,318) | $ (22,560) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 41,538 | $ 73,787 | $ 52,446 | $ 115,262 |
Other comprehensive income: | ||||
Change in unrealized income on interest rate swaps, net | 3,550 | 576 | 15,816 | 5,922 |
Other comprehensive income | 3,550 | 576 | 15,816 | 5,922 |
Comprehensive income | 45,088 | 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 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Preferred Shares | Common Shares | Additional Paid-in-Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interests |
Beginning balance at Dec. 31, 2020 | $ 1,991,137,000 | $ 94,016,000 | $ 28,000 | $ 3,196,315,000 | $ (1,301,726,000) | $ (17,963,000) | $ 20,467,000 |
Beginning balance (in shares) at Dec. 31, 2020 | 1,935,400 | 277,152,450 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of partnership interest in real estate | 5,085,000 | 5,085,000 | |||||
Redemption of noncontrolling OP units for common (in shares) | 90,607 | ||||||
Redemption of noncontrolling OP units for common shares | 468,000 | (468,000) | |||||
Issuance of common shares and deferred compensation amortization, net | 2,942,000 | 2,942,000 | |||||
Issuance of common shares and deferred compensation amortization, net (in shares) | 926,947 | ||||||
Repurchase of common shares to settle tax obligations | (5,120,000) | (5,120,000) | |||||
Repurchase of common shares to settle tax obligations (in shares) | (499,638) | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | (10,264) | ||||||
Forfeiture of employee common shares | 2,000 | 2,000 | |||||
Dividends/distributions | (63,861,000) | (62,731,000) | (1,130,000) | ||||
Net income | 115,262,000 | 113,720,000 | 1,542,000 | ||||
Other comprehensive income | 5,922,000 | 5,922,000 | |||||
Reallocation of noncontrolling interests | 435,000 | (435,000) | |||||
Ending balance at Jun. 30, 2021 | 2,051,369,000 | $ 94,016,000 | $ 28,000 | 3,195,040,000 | (1,250,735,000) | (12,041,000) | 25,061,000 |
Ending balance (in shares) at Jun. 30, 2021 | 1,935,400 | 277,660,102 | |||||
Beginning balance at Mar. 31, 2021 | 2,005,326,000 | $ 94,016,000 | $ 28,000 | 3,193,023,000 | (1,292,051,000) | (12,617,000) | 22,927,000 |
Beginning balance (in shares) at Mar. 31, 2021 | 1,935,400 | 277,614,856 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of partnership interest in real estate | 2,373,000 | 2,373,000 | |||||
Redemption of noncontrolling OP units for common (in shares) | 30,491 | ||||||
Redemption of noncontrolling OP units for common shares | 157,000 | (157,000) | |||||
Issuance of common shares and deferred compensation amortization, net | 1,425,000 | 1,425,000 | |||||
Issuance of common shares and deferred compensation amortization, net (in shares) | 15,745 | ||||||
Forfeiture of employee common shares (in shares) | (990) | ||||||
Dividends/distributions | (32,118,000) | (31,362,000) | (756,000) | ||||
Net income | 73,787,000 | 72,678,000 | 1,109,000 | ||||
Other comprehensive income | 576,000 | 576,000 | |||||
Reallocation of noncontrolling interests | 435,000 | (435,000) | |||||
Ending balance at Jun. 30, 2021 | 2,051,369,000 | $ 94,016,000 | $ 28,000 | 3,195,040,000 | (1,250,735,000) | (12,041,000) | 25,061,000 |
Ending balance (in shares) at Jun. 30, 2021 | 1,935,400 | 277,660,102 | |||||
Beginning balance at Dec. 31, 2021 | 2,323,228,000 | $ 94,016,000 | $ 28,000 | 3,252,506,000 | (1,049,434,000) | (6,258,000) | 32,370,000 |
Beginning balance (in shares) at Dec. 31, 2021 | 1,935,400 | 283,752,726 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of partnership interest in real estate | 5,781,000 | 5,781,000 | |||||
Redemption of noncontrolling OP units for common (in shares) | 20,232 | ||||||
Redemption of noncontrolling OP units for common shares | 109,000 | (109,000) | |||||
Purchase of noncontrolling interest in consolidated joint venture | (27,958,000) | (25,058,000) | (2,900,000) | ||||
Issuance of common shares and deferred compensation amortization, net | 42,159,000 | $ 1,000 | 42,158,000 | ||||
Issuance of common shares and deferred compensation amortization, net (in shares) | 4,535,376 | ||||||
Stock Repurchased During Period, Value | (73,718,000) | $ (1,000) | (73,717,000) | ||||
Stock repurchased during period (in shares) | (6,098,026) | ||||||
Repurchase of common shares to settle tax obligations | (6,285,000) | (6,285,000) | |||||
Repurchase of common shares to settle tax obligations (in shares) | (410,958) | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | (128,913) | ||||||
Forfeiture of employee common shares | 8,000 | 8,000 | |||||
Dividends/distributions | (71,827,000) | (70,902,000) | (925,000) | ||||
Net income | 52,446,000 | 51,920,000 | 526,000 | ||||
Other comprehensive income | 15,816,000 | 15,816,000 | |||||
Ending balance at Jun. 30, 2022 | 2,259,650,000 | $ 94,016,000 | $ 28,000 | 3,189,713,000 | (1,068,408,000) | 9,558,000 | 34,743,000 |
Ending balance (in shares) at Jun. 30, 2022 | 1,935,400 | 281,670,437 | |||||
Beginning balance at Mar. 31, 2022 | 2,320,482,000 | $ 94,016,000 | $ 29,000 | 3,261,770,000 | (1,074,998,000) | 6,008,000 | 33,657,000 |
Beginning balance (in shares) at Mar. 31, 2022 | 1,935,400 | 287,871,649 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of partnership interest in real estate | 1,672,000 | 1,672,000 | |||||
Redemption of noncontrolling OP units for common (in shares) | 13,524 | ||||||
Redemption of noncontrolling OP units for common shares | 73,000 | (73,000) | |||||
Issuance of common shares and deferred compensation amortization, net | 1,587,000 | 1,587,000 | |||||
Issuance of common shares and deferred compensation amortization, net (in shares) | 12,203 | ||||||
Stock Repurchased During Period, Value | (73,718,000) | $ (1,000) | 73,717,000 | ||||
Stock repurchased during period (in shares) | (6,098,026) | ||||||
Forfeiture of employee common shares | 8,000 | 8,000 | |||||
Forfeiture of employee common shares (in shares) | (128,913) | ||||||
Dividends/distributions | (35,469,000) | (34,716,000) | (753,000) | ||||
Net income | 41,538,000 | 41,298,000 | 240,000 | ||||
Other comprehensive income | 3,550,000 | 3,550,000 | |||||
Ending balance at Jun. 30, 2022 | $ 2,259,650,000 | $ 94,016,000 | $ 28,000 | $ 3,189,713,000 | $ (1,068,408,000) | $ 9,558,000 | $ 34,743,000 |
Ending balance (in shares) at Jun. 30, 2022 | 1,935,400 | 281,670,437 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends/distributions (in dollars per share) | $ 0.12 | $ 0.1075 | $ 0.24 | $ 0.215 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities: | $ 95,207 | $ 108,687 |
Cash flows from investing activities: | ||
Acquisition of real estate, including intangible assets | (131,276) | (256,578) |
Investment in real estate under construction | (135,826) | (57,176) |
Capital expenditures | (15,798) | (2,918) |
Net proceeds from sale of properties | 54,523 | 180,133 |
Principal payments received on loans receivable | 14 | 0 |
Investments in non-consolidated entities | (178) | (758) |
Distributions from non-consolidated entities in excess of accumulated earnings | 15,609 | 2,991 |
Deferred leasing costs | (2,582) | (3,054) |
Change in real estate deposits, net | (1,598) | (2,957) |
Net cash used in investing activities | (217,112) | (140,317) |
Cash flows from financing activities: | ||
Dividends to common and preferred shareholders | (72,749) | (64,667) |
Principal amortization payments | (5,584) | (7,676) |
Revolving credit facility borrowings | 155,000 | 125,000 |
Revolving credit facility payments | (35,000) | 0 |
Cash contributions from noncontrolling interests | 5,781 | 4,596 |
Cash distributions to noncontrolling interests | (925) | (1,130) |
Purchase of noncontrolling interest | (27,958) | 0 |
Repurchases to settle tax obligations | (6,285) | (5,120) |
Issuance of common shares, net | 38,497 | (635) |
Repurchase of common shares | (69,973) | 0 |
Net cash provided by (used in) financing activities | (19,196) | 50,368 |
Change in cash, cash equivalents and restricted cash | (141,101) | 18,738 |
Less net decrease in cash classified within assets held for sale | 0 | (1,047) |
Cash, cash equivalents and restricted cash, at beginning of period | 191,027 | 179,421 |
Cash, cash equivalents and restricted cash, at end of period | 49,926 | 197,112 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents at beginning of period | 190,926 | 178,795 |
Restricted cash at beginning of period | 101 | 626 |
Cash and cash equivalents at end of period | 49,817 | 196,383 |
Restricted cash at end of period | $ 109 | $ 729 |
The Company and Financial State
The Company and Financial Statement Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Financial Statement Presentation | 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, the Company had ownership interests in approximately 121 consolidated real estate properties, located in 22 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 financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and six months ended June 30, 2022 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, 2021 filed with the SEC on February 24, 2022 (“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. As of June 30, 2022, the Company had interests in seven consolidated joint ventures with developers, consisting of five ongoing development projects and two 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 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, 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, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Real estate, net $ 920,275 $ 810,087 Total assets $ 985,437 $ 952,611 Total liabilities $ 56,723 $ 47,011 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 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 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 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 BASIC Net income attributable to common shareholders $ 39,667 $ 71,000 $ 48,665 $ 110,397 Weighted-average number of common shares outstanding - basic 283,568,078 275,568,868 283,604,072 275,493,019 Net income attributable to common shareholders - per common share basic $ 0.14 $ 0.26 $ 0.17 $ 0.40 DILUTED Net income attributable to common shareholders - basic $ 39,667 $ 71,000 $ 48,665 $ 110,397 Impact of assumed conversions 47 — 136 — Net income attributable to common shareholders $ 39,714 $ 71,000 $ 48,801 $ 110,397 Weighted-average common shares outstanding - basic 283,568,078 275,568,868 283,604,072 275,493,019 Effect of dilutive securities: Shares issuable under forward sales agreements 750,944 1,098,031 2,549,683 553,937 Unvested share-based payment awards 257,371 799,157 668,130 787,133 Operating partnership units 860,048 — 865,512 — Weighted-average common shares outstanding - diluted 285,436,441 277,466,056 287,687,397 276,834,089 Net income attributable to common shareholders - per common share diluted $ 0.14 $ 0.26 $ 0.17 $ 0.40 For per common share amounts, 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. |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate The Company acquired the following warehouse/distribution facilities during the six months ended June 30, 2022: Market Acquisition Date Initial Primary Land Building and Improvements Lease in-place Intangible Cincinnati/Dayton, OH (1) February 2022 $ 23,382 N/A $ 2,010 $ 21,372 $ — Cincinnati/Dayton, OH February 2022 48,660 04/2032 4,197 40,944 3,519 Phoenix, AZ April 2022 59,140 05/2037 5,366 50,281 3,493 $ 131,182 $ 11,573 $ 112,597 $ 7,012 (1) Subsequent to acquisition, property was fully leased for approximately nine years. 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, the details of the warehouse/distribution real estate under construction are as follows (in $000's, except square feet): Project (% owned) # of Buildings Market Estimated 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 6/30/2022 The Cubes at Etna East (95%) 1 Columbus, OH 1,074,840 $ 72,100 $ 52,136 $ 44,449 3Q 2022 — % Ocala (80%) 1 Central Florida 1,085,280 83,100 60,483 49,711 4Q 2022 — % Cotton 303 (93%) (3) 2 Phoenix, AZ 880,678 84,200 47,798 39,150 4Q 2022 45 % Mt. Comfort (80%) 1 Indianapolis, IN 1,053,360 65,500 38,598 29,581 4Q 2022 — % Smith Farms (90%) (4) 3 Greenville-Spartanburg, SC 2,194,820 170,400 85,704 60,704 4Q 2022 - 2Q 2023 36 % South Shore (100%) 2 Central Florida 270,885 40,500 9,680 9,367 2Q 2023 — % $ 515,800 $ 294,399 $ 232,962 (1) Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any. (2) Excludes noncontrolling interests' share. (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) Market Approx. 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, AZ 420 $ 101,227 $ 96,788 Mt. Comfort Phase II (80%) Indianapolis, IN 116 5,076 4,033 ATL Fairburn JV (100%) Atlanta, GA 14 $ 1,729 $ 1,727 550 $ 108,032 $ 102,548 (1) Excludes noncontrolling interests' share. |
Dispositions and Impairment
Dispositions and Impairment | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions and Impairment | Dispositions and Impairment During the six months ended June 30, 2022 and 2021, the Company disposed of its interests in various properties for an aggregate gross disposition price of $55,395 and $183,427, respectively, and recognized aggregate gains on sales of properties of $28,110 and $88,645, respectively. The Company had eight properties classified as held for sale at June 30, 2022 and December 31, 2021, respectively. Assets and liabilities of the held for sale properties as of June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 Assets: Real estate, at cost $ 202,810 $ 170,117 Real estate, intangible assets 14,492 9,454 Accumulated depreciation and amortization (107,393) (99,659) Deferred expenses, net 1,629 1,759 Other 3,008 915 $ 114,546 $ 82,586 Liabilities: Accounts payable and liabilities $ 2,004 $ 1,908 Deferred revenue 1,696 483 Prepaid rent 1,395 1,077 $ 5,095 $ 3,468 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | 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, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description June 30, 2022 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 9,558 $ — $ 9,558 $ — Impaired real estate assets (1) $ 1,684 $ — $ — $ 1,684 Balance Fair Value Measurements Using Description December 31, 2021 (Level 1) (Level 2) (Level 3) Interest rate swap liabilities $ (6,258) $ — $ (6,258) $ — Impaired real estate assets (2) $ 12,735 $ — $ — $ 12,735 (1) Represents non-recurring fair value measurement. The Company measured a $1,684 fair value of real estate assets based on a discounted cash flow analysis using a discount rate of 9.5% 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. (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 from 8.0% 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 fell 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 utilized 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, 2022 and December 31, 2021, 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, the interest rate swaps were 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, 2022 and December 31, 2021: As of June 30, 2022 As of December 31, 2021 Carrying Fair Value Carrying Fair Value Liabilities Debt $ 1,612,606 $ 1,436,263 $ 1,497,064 $ 1,491,868 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. The Company determines the fair value of its senior 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 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. |
Investments in Non-Consolidated
Investments in Non-Consolidated Entities | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Investments in Non-Consolidated Entities | Investments in Non-Consolidated Entities Below is a schedule of the Company's investments in non-consolidated entities: Percentage Ownership at Investment Balance as of Investment June 30, 2022 June 30, 2022 December 31, 2021 NNN MFG Cold JV L.P. ("MFG Cold JV") (1) 20% $ 28,851 $ 30,752 NNN Office JV L.P. ("NNN JV") (2) 20% 11,486 24,112 Etna Park 70 LLC (3) 90% 12,931 12,874 Etna Park East LLC (4) 90% 2,116 2,797 BSH Lessee L.P. (5) 25% 3,748 4,024 $ 59,132 $ 74,559 (1) MFG Cold JV is a joint venture formed in 2021 and owns special purpose industrial properties formerly owned by the Company. (2) NNN JV is a joint venture formed in 2018 and owns office properties formerly owned by the Company. (3) Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary. (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 three 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, 2022 2021 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 properties 114,481 — Impairment charges (21,067) — Debt satisfaction losses, net (7,474) — Interest expense (4,869) (5,981) Income (loss) from continuing operations 87,761 (728) Provision for income taxes (273) (53) Net income (loss) $ 87,488 $ (781) x |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company had the following mortgages and notes payable outstanding as of June 30, 2022 and December 31, 2021: June 30, 2022 December 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. The Company had the following senior notes outstanding as of June 30, 2022 and December 31, 2021: Issue Date June 30, 2022 December 31, 2021 Interest Rate Maturity Date Issue Price August 2021 $ 400,000 $ 400,000 2.375 % October 2031 99.758 % August 2020 400,000 400,000 2.70 % September 2030 99.233 % May 2014 198,932 198,932 4.40 % June 2024 99.883 % 998,932 998,932 Unamortized debt discount (3,441) (3,655) Unamortized debt issuance cost (6,878) (7,346) Senior notes payable, net $ 988,613 $ 987,931 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 a 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, are as follows: Maturity Date Current $600,000 Revolving Credit Facility (1) February 2023 LIBOR + 0.90% $300,000 Term Loan (2) January 2025 LIBOR + 1.00% (1) Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At June 30, 2022, the Company had $120,000 borrowings outstanding and availability of $480,000, subject to covenant compliance. (2) The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,302 and $1,554 as of June 30, 2022 and December 31, 2021, respectively. The Company was compliant with all applicable financial covenants contained in its corporate-level debt agreements at June 30, 2022. 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, 2022 was 2.986%. As of June 30, 2022 and December 31, 2021, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,476 and $1,525, respectively, of unamortized debt issuance costs. Capitalized interest recorded during the six months ended June 30, 2022 and 2021 was $2,839 and $1,396, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 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, 2022 and 2021. During July 2019, the Company entered into four interest rate swap agreements with its counterparties. The swaps were designated as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on its $300,000 LIBOR-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 will be reclassified as a decrease to interest expense if the swaps remain outstanding. Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 4 $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, 2022 As of December 31, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swaps Other Assets $ 9,558 Other Liabilities $ (6,258) 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, 2022 and 2021. Derivatives in Cash Flow Amount of Gain Amount of Loss Reclassified from Accumulated OCI into Income (1) June 30, Hedging Relationships 2022 2021 2022 2021 Interest Rate Swaps $ 13,895 $ 3,486 $ 1,921 $ 2,436 (1) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statement of operations. Total interest expense presented in the unaudited condensed consolidated statements of operations, which includes the effects of cash flow hedges, was $21,503 and $22,960 for the six months ended June 30, 2022 and 2021, respectively. |
Lease Accounting
Lease Accounting | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lease Accounting | Lease Accounting Lessor 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 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 Topic 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. 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. 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 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. Topic 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, 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. 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 classification of rental revenue for its operating leases for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended Classification June 30, 2022 June 30, 2021 June 30, 2022 June 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 comprised of tenant reimbursements. (2) Variable income contains termination income of $11,827 for the six months ended June 30, 2021. No termination fee revenue was recognized during the six months ended June 30, 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 Selling 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 are $371. Future fixed rental receipts for operating leases, assuming no new or re-negotiated leases as of June 30, 2022 were as follows: Six months ended June 30, Total 2022 - remainder $ 129,436 2023 260,344 2024 233,138 2025 213,063 2026 194,619 2027 160,120 Thereafter 607,377 Total $ 1,798,097 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. 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. The leases have remaining lease terms of up to 38 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 Topic 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. Supplemental information related to operating leases is as follows: Six Months Ended June 30, 2022 June 30, 2021 Weighted-average remaining lease term Operating leases (years) 9.5 11.3 Weighted-average discount rate Operating leases 4.0 % 4.1 % The components of lease expense for the six months ended June 30, 2022 and 2021 were as follows: Income Statement Classification Fixed Variable Total 2022: Property operating $ 1,771 $ — $ 1,771 General and administrative 767 42 809 Total $ 2,538 $ 42 $ 2,580 2021: Property operating $ 1,824 $ — $ 1,824 General and administrative 673 22 695 Total $ 2,497 $ 22 $ 2,519 The Company recognized sublease income of $1,660 and $1,713 for the six months ended June 30, 2022 and 2021, respectively. The following table shows the Company's maturity analysis of its operating lease liabilities as of June 30, 2022: Operating Leases 2022 - remainder $ 2,381 2023 5,290 2024 5,199 2025 5,204 2026 4,174 2027 3,673 Thereafter 7,501 Total lease payments $ 33,422 Less: Imputed interest (6,439) Present value of operating lease liabilities $ 26,983 |
Lease Accounting | Lease Accounting Lessor 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 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 Topic 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. 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. 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 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. Topic 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, 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. 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 classification of rental revenue for its operating leases for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended Classification June 30, 2022 June 30, 2021 June 30, 2022 June 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 comprised of tenant reimbursements. (2) Variable income contains termination income of $11,827 for the six months ended June 30, 2021. No termination fee revenue was recognized during the six months ended June 30, 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 Selling 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 are $371. Future fixed rental receipts for operating leases, assuming no new or re-negotiated leases as of June 30, 2022 were as follows: Six months ended June 30, Total 2022 - remainder $ 129,436 2023 260,344 2024 233,138 2025 213,063 2026 194,619 2027 160,120 Thereafter 607,377 Total $ 1,798,097 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. 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. The leases have remaining lease terms of up to 38 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 Topic 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. Supplemental information related to operating leases is as follows: Six Months Ended June 30, 2022 June 30, 2021 Weighted-average remaining lease term Operating leases (years) 9.5 11.3 Weighted-average discount rate Operating leases 4.0 % 4.1 % The components of lease expense for the six months ended June 30, 2022 and 2021 were as follows: Income Statement Classification Fixed Variable Total 2022: Property operating $ 1,771 $ — $ 1,771 General and administrative 767 42 809 Total $ 2,538 $ 42 $ 2,580 2021: Property operating $ 1,824 $ — $ 1,824 General and administrative 673 22 695 Total $ 2,497 $ 22 $ 2,519 The Company recognized sublease income of $1,660 and $1,713 for the six months ended June 30, 2022 and 2021, respectively. The following table shows the Company's maturity analysis of its operating lease liabilities as of June 30, 2022: Operating Leases 2022 - remainder $ 2,381 2023 5,290 2024 5,199 2025 5,204 2026 4,174 2027 3,673 Thereafter 7,501 Total lease payments $ 33,422 Less: Imputed interest (6,439) Present value of operating lease liabilities $ 26,983 |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the six months ended June 30, 2022 and 2021, 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. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | 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, 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. 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, 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, 2022 and 2021, the Company issued 25,297 and 27,565, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $357 and $300, respectively. Share Repurchase Program. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 in 2018. This share repurchase program has no expiration date. 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, 2,878,289 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 of unsettled repurchases as of June 30, 2022. 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. The shares have a dividend of $3.25 per share per annum and have a liquidation preference of $96,770. As of June 30, 2022, 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. 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, 2022 2021 Balance at beginning of period $ (6,258) $ (17,963) Other comprehensive income before reclassifications 13,895 3,486 Amounts of loss reclassified from accumulated other comprehensive income to interest expense 1,921 2,436 Balance at end of period $ 9,558 $ (12,041) 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. As of June 30, 2022, there were approximately 757,000 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 Six Months Ended June 30, 2022 2021 Net income attributable to LXP Industrial Trust shareholders $ 51,920 $ 113,720 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 units 109 468 Change from net income attributable to shareholders and transfers from noncontrolling interests $ 52,029 $ 114,623 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThere were no related party transactions other than those disclosed elsewhere in these unaudited condensed consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. As of June 30, 2022, the Company had six ongoing consolidated development projects and expects to incur approximately $143,939 and $95,229 in the remainder of 2022 and 2023, respectively, excluding noncontrolling interests' share, to substantially complete the construction of the projects. As of June 30, 2022, the Company has interests in various 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 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. |
Supplemental Disclosure of Stat
Supplemental Disclosure of Statement of Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information In addition to disclosures discussed elsewhere, during the six months ended June 30, 2022 and 2021, the Company paid $23,237 and $23,349, respectively, for interest and $952 and $1,008, respectively, for income taxes. During the six months ended June 30, 2022 and 2021, the Company had $43,551 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to June 30, 2022, the Company: • amended 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 three properties for an aggregate gross sales price of $91,950. |
The Company and Financial Sta_2
The Company and Financial Statement Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | 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. |
Variable Interest Entity | 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. |
Revenue Recognition | 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 | 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 |
Restricted Cash | Restricted Cash . Restricted cash is comprised primarily of cash balances held by lenders. |
Fair Value Measurements | 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. |
Cost Capitalization | 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 | Recently Issued Accounting Guidance . In March 2020, the 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. |
Lessor | Lessor 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 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 Topic 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. 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. 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 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. Topic 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, 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. 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. |
Lessee | 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. The leases have remaining lease terms of up to 38 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 Topic 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. |
The Company and Financial Sta_3
The Company and Financial Statement Presentation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | 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, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Real estate, net $ 920,275 $ 810,087 Total assets $ 985,437 $ 952,611 Total liabilities $ 56,723 $ 47,011 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | 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, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 BASIC Net income attributable to common shareholders $ 39,667 $ 71,000 $ 48,665 $ 110,397 Weighted-average number of common shares outstanding - basic 283,568,078 275,568,868 283,604,072 275,493,019 Net income attributable to common shareholders - per common share basic $ 0.14 $ 0.26 $ 0.17 $ 0.40 DILUTED Net income attributable to common shareholders - basic $ 39,667 $ 71,000 $ 48,665 $ 110,397 Impact of assumed conversions 47 — 136 — Net income attributable to common shareholders $ 39,714 $ 71,000 $ 48,801 $ 110,397 Weighted-average common shares outstanding - basic 283,568,078 275,568,868 283,604,072 275,493,019 Effect of dilutive securities: Shares issuable under forward sales agreements 750,944 1,098,031 2,549,683 553,937 Unvested share-based payment awards 257,371 799,157 668,130 787,133 Operating partnership units 860,048 — 865,512 — Weighted-average common shares outstanding - diluted 285,436,441 277,466,056 287,687,397 276,834,089 Net income attributable to common shareholders - per common share diluted $ 0.14 $ 0.26 $ 0.17 $ 0.40 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Acquired Properties | The Company acquired the following warehouse/distribution facilities during the six months ended June 30, 2022: Market Acquisition Date Initial Primary Land Building and Improvements Lease in-place Intangible Cincinnati/Dayton, OH (1) February 2022 $ 23,382 N/A $ 2,010 $ 21,372 $ — Cincinnati/Dayton, OH February 2022 48,660 04/2032 4,197 40,944 3,519 Phoenix, AZ April 2022 59,140 05/2037 5,366 50,281 3,493 $ 131,182 $ 11,573 $ 112,597 $ 7,012 (1) Subsequent to acquisition, property was fully leased for approximately nine years. |
Schedule of Real Estate Properties | As of June 30, 2022, the details of the warehouse/distribution real estate under construction are as follows (in $000's, except square feet): Project (% owned) # of Buildings Market Estimated 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 6/30/2022 The Cubes at Etna East (95%) 1 Columbus, OH 1,074,840 $ 72,100 $ 52,136 $ 44,449 3Q 2022 — % Ocala (80%) 1 Central Florida 1,085,280 83,100 60,483 49,711 4Q 2022 — % Cotton 303 (93%) (3) 2 Phoenix, AZ 880,678 84,200 47,798 39,150 4Q 2022 45 % Mt. Comfort (80%) 1 Indianapolis, IN 1,053,360 65,500 38,598 29,581 4Q 2022 — % Smith Farms (90%) (4) 3 Greenville-Spartanburg, SC 2,194,820 170,400 85,704 60,704 4Q 2022 - 2Q 2023 36 % South Shore (100%) 2 Central Florida 270,885 40,500 9,680 9,367 2Q 2023 — % $ 515,800 $ 294,399 $ 232,962 (1) Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote, if any. (2) Excludes noncontrolling interests' share. (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 details of the land held for development are as follows (in $000's, except acres): Project (% owned) Market Approx. 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, AZ 420 $ 101,227 $ 96,788 Mt. Comfort Phase II (80%) Indianapolis, IN 116 5,076 4,033 ATL Fairburn JV (100%) Atlanta, GA 14 $ 1,729 $ 1,727 550 $ 108,032 $ 102,548 (1) Excludes noncontrolling interests' share. |
Dispositions and Impairment (Ta
Dispositions and Impairment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Assets and liabilities of the held for sale properties as of June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 Assets: Real estate, at cost $ 202,810 $ 170,117 Real estate, intangible assets 14,492 9,454 Accumulated depreciation and amortization (107,393) (99,659) Deferred expenses, net 1,629 1,759 Other 3,008 915 $ 114,546 $ 82,586 Liabilities: Accounts payable and liabilities $ 2,004 $ 1,908 Deferred revenue 1,696 483 Prepaid rent 1,395 1,077 $ 5,095 $ 3,468 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Fair Value Measurement Inputs | 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, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description June 30, 2022 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 9,558 $ — $ 9,558 $ — Impaired real estate assets (1) $ 1,684 $ — $ — $ 1,684 Balance Fair Value Measurements Using Description December 31, 2021 (Level 1) (Level 2) (Level 3) Interest rate swap liabilities $ (6,258) $ — $ (6,258) $ — Impaired real estate assets (2) $ 12,735 $ — $ — $ 12,735 (1) Represents non-recurring fair value measurement. The Company measured a $1,684 fair value of real estate assets based on a discounted cash flow analysis using a discount rate of 9.5% 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. (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 from 8.0% 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. |
Schedule of Carrying Amounts and Fair Value of Financial Instruments | 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, 2022 and December 31, 2021: As of June 30, 2022 As of December 31, 2021 Carrying Fair Value Carrying Fair Value Liabilities Debt $ 1,612,606 $ 1,436,263 $ 1,497,064 $ 1,491,868 |
Investments in Non-Consolidat_2
Investments in Non-Consolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Investments in Non-consolidated Entities | Below is a schedule of the Company's investments in non-consolidated entities: Percentage Ownership at Investment Balance as of Investment June 30, 2022 June 30, 2022 December 31, 2021 NNN MFG Cold JV L.P. ("MFG Cold JV") (1) 20% $ 28,851 $ 30,752 NNN Office JV L.P. ("NNN JV") (2) 20% 11,486 24,112 Etna Park 70 LLC (3) 90% 12,931 12,874 Etna Park East LLC (4) 90% 2,116 2,797 BSH Lessee L.P. (5) 25% 3,748 4,024 $ 59,132 $ 74,559 (1) MFG Cold JV is a joint venture formed in 2021 and owns special purpose industrial properties formerly owned by the Company. (2) NNN JV is a joint venture formed in 2018 and owns office properties formerly owned by the Company. (3) Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary. (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. 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, 2022 2021 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 properties 114,481 — Impairment charges (21,067) — Debt satisfaction losses, net (7,474) — Interest expense (4,869) (5,981) Income (loss) from continuing operations 87,761 (728) Provision for income taxes (273) (53) Net income (loss) $ 87,488 $ (781) x |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company had the following mortgages and notes payable outstanding as of June 30, 2022 and December 31, 2021: June 30, 2022 December 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 |
Debt Instrument Redemption | The Company had the following senior notes outstanding as of June 30, 2022 and December 31, 2021: Issue Date June 30, 2022 December 31, 2021 Interest Rate Maturity Date Issue Price August 2021 $ 400,000 $ 400,000 2.375 % October 2031 99.758 % August 2020 400,000 400,000 2.70 % September 2030 99.233 % May 2014 198,932 198,932 4.40 % June 2024 99.883 % 998,932 998,932 Unamortized debt discount (3,441) (3,655) Unamortized debt issuance cost (6,878) (7,346) Senior notes payable, net $ 988,613 $ 987,931 |
Schedule of Line of Credit Facilities | The maturity dates and interest rates as of June 30, 2022, are as follows: Maturity Date Current $600,000 Revolving Credit Facility (1) February 2023 LIBOR + 0.90% $300,000 Term Loan (2) January 2025 LIBOR + 1.00% (1) Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At June 30, 2022, the Company had $120,000 borrowings outstanding and availability of $480,000, subject to covenant compliance. (2) The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,302 and $1,554 as of June 30, 2022 and December 31, 2021, respectively. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 4 $300,000 |
Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets | 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, 2022 As of December 31, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swaps Other Assets $ 9,558 Other Liabilities $ (6,258) |
Effect of the Company's Derivative Financial Instruments on the Statements of Operation | 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, 2022 and 2021. Derivatives in Cash Flow Amount of Gain Amount of Loss Reclassified from Accumulated OCI into Income (1) June 30, Hedging Relationships 2022 2021 2022 2021 Interest Rate Swaps $ 13,895 $ 3,486 $ 1,921 $ 2,436 (1) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statement of operations. |
Lease Accounting (Tables)
Lease Accounting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The following table presents the Company’s classification of rental revenue for its operating leases for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended Classification June 30, 2022 June 30, 2021 June 30, 2022 June 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 comprised of tenant reimbursements. (2) Variable income contains termination income of $11,827 for the six months ended June 30, 2021. No termination fee revenue was recognized during the six months ended June 30, 2022. The 2021 termination fee income primarily related to a tenant that terminated its lease at the Company's Durham, New Hampshire industrial property. |
Lessor, Operating Lease, Payments to be Received, Maturity | Future fixed rental receipts for operating leases, assuming no new or re-negotiated leases as of June 30, 2022 were as follows: Six months ended June 30, Total 2022 - remainder $ 129,436 2023 260,344 2024 233,138 2025 213,063 2026 194,619 2027 160,120 Thereafter 607,377 Total $ 1,798,097 |
Assets and Liabilities, Lessee | Supplemental information related to operating leases is as follows: Six Months Ended June 30, 2022 June 30, 2021 Weighted-average remaining lease term Operating leases (years) 9.5 11.3 Weighted-average discount rate Operating leases 4.0 % 4.1 % |
Lease, Cost | The components of lease expense for the six months ended June 30, 2022 and 2021 were as follows: Income Statement Classification Fixed Variable Total 2022: Property operating $ 1,771 $ — $ 1,771 General and administrative 767 42 809 Total $ 2,538 $ 42 $ 2,580 2021: Property operating $ 1,824 $ — $ 1,824 General and administrative 673 22 695 Total $ 2,497 $ 22 $ 2,519 |
Lessee, Operating Lease, Liability, Maturity | The following table shows the Company's maturity analysis of its operating lease liabilities as of June 30, 2022: Operating Leases 2022 - remainder $ 2,381 2023 5,290 2024 5,199 2025 5,204 2026 4,174 2027 3,673 Thereafter 7,501 Total lease payments $ 33,422 Less: Imputed interest (6,439) Present value of operating lease liabilities $ 26,983 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | 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, 2022 2021 Balance at beginning of period $ (6,258) $ (17,963) Other comprehensive income before reclassifications 13,895 3,486 Amounts of loss reclassified from accumulated other comprehensive income to interest expense 1,921 2,436 Balance at end of period $ 9,558 $ (12,041) |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests: Net Income Attributable to Six Months Ended June 30, 2022 2021 Net income attributable to LXP Industrial Trust shareholders $ 51,920 $ 113,720 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 units 109 468 Change from net income attributable to shareholders and transfers from noncontrolling interests $ 52,029 $ 114,623 |
The Company and Financial Sta_4
The Company and Financial Statement Presentation - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 state joint_venture property | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of properties | property | 121 |
Number of states in which entity has interests | state | 22 |
Joint Ventures with Developers | |
Variable Interest Entity [Line Items] | |
Number of joint ventures acquired | 7 |
Joint Ventures with Developers | On-Going Development Projects | |
Variable Interest Entity [Line Items] | |
Number of joint ventures acquired | 5 |
Joint Ventures with Developers | Land Joint Ventures | |
Variable Interest Entity [Line Items] | |
Number of joint ventures acquired | 2 |
Joint Ventures with Developers | Minimum | |
Variable Interest Entity [Line Items] | |
Joint venture, ownership percentage | 80% |
Joint Ventures with Developers | Maximum | |
Variable Interest Entity [Line Items] | |
Joint venture, ownership percentage | 95.50% |
LCIF | Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
VIE, ownership percentage | 99% |
The Company and Financial Sta_5
The Company and Financial Statement Presentation - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | May 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | |||
Real estate, net | $ 3,663,291 | $ 17,292 | $ 3,534,966 |
Total assets | 4,054,420 | 4,005,558 | |
Total liabilities | 1,794,770 | 1,682,330 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Real estate, net | 920,275 | 810,087 | |
Total assets | 985,437 | 952,611 | |
Total liabilities | $ 56,723 | $ 47,011 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
BASIC | ||||
Net income attributable to common shareholders | $ 39,667 | $ 71,000 | $ 48,665 | $ 110,397 |
Weighted-average common shares outstanding – basic (in shares) | 283,568,078 | 275,568,868 | 283,604,072 | 275,493,019 |
Net income attributable to common shares - per common share basic (in dollars per share) | $ 0.14 | $ 0.26 | $ 0.17 | $ 0.40 |
DILUTED | ||||
Impact of assumed conversions | $ 47 | $ 0 | $ 136 | $ 0 |
Net income attributable to common shareholders, diluted | $ 39,714 | $ 71,000 | $ 48,801 | $ 110,397 |
Effect of dilutive securities: | ||||
Shares issuable under forward sale agreements (in shares) | 750,944 | 1,098,031 | 2,549,683 | 553,937 |
Unvested share-based payment awards and options (in shares) | 257,371 | 799,157 | 668,130 | 787,133 |
Operating partnership units (in shares) | 860,048 | 0 | 865,512 | 0 |
Weighted-average common shares outstanding - diluted (in shares) | 285,436,441 | 277,466,056 | 287,687,397 | 276,834,089 |
Net income attributable to common shareholders - per common share diluted (in dollars per share) | $ 0.14 | $ 0.26 | $ 0.17 | $ 0.40 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Real Estate Acquisitions (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Real Estate [Line Items] | |
Initial Cost Basis | $ 131,182 |
Land | 11,573 |
Building and Improvements | 112,597 |
Lease in-place Intangible | 7,012 |
Cincinnati/Dayton, OH | Industrial Property | Cincinnati/Dayton, OH Industrial Property Lease Expiration Date Not Available | |
Real Estate [Line Items] | |
Initial Cost Basis | 23,382 |
Land | 2,010 |
Building and Improvements | 21,372 |
Lease in-place Intangible | $ 0 |
Real estate investment property, lease term | 9 years |
Cincinnati/Dayton, OH | Industrial Property | Cincinnati/Dayton, OH Industrial Property Expiring April 2032 | |
Real Estate [Line Items] | |
Initial Cost Basis | $ 48,660 |
Land | 4,197 |
Building and Improvements | 40,944 |
Lease in-place Intangible | 3,519 |
Phoenix, AZ | Industrial Property | Phoenix, AZ Expiring May 2037 | |
Real Estate [Line Items] | |
Initial Cost Basis | 59,140 |
Land | 5,366 |
Building and Improvements | 50,281 |
Lease in-place Intangible | $ 3,493 |
Investments in Real Estate - _2
Investments in Real Estate - Schedule of Real Estate Properties Under Construction (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) ft² building | Dec. 31, 2021 USD ($) | |
Real Estate [Line Items] | ||
GAAP Investment Balance as of 6/30/2022 | $ 294,399 | $ 161,165 |
Real Estate Investment | ||
Real Estate [Line Items] | ||
Estimated Project Cost(1) | 515,800 | |
GAAP Investment Balance as of 6/30/2022 | 294,399 | |
Amount Funded as of 6/30/2022 | $ 232,962 | |
Columbus, OH | The Cubes at Etna East | ||
Real Estate [Line Items] | ||
Project (% owned) | 95% | |
Columbus, OH | Real Estate Investment | The Cubes at Etna East | ||
Real Estate [Line Items] | ||
# of Buildings | building | 1 | |
Estimated Sq. Ft. | ft² | 1,074,840 | |
Estimated Project Cost(1) | $ 72,100 | |
GAAP Investment Balance as of 6/30/2022 | 52,136 | |
Amount Funded as of 6/30/2022 | $ 44,449 | |
% Leased as of 6/30/2022 | 0% | |
Central Florida | Ocala | ||
Real Estate [Line Items] | ||
Project (% owned) | 80% | |
Central Florida | South Shore | ||
Real Estate [Line Items] | ||
Project (% owned) | 100% | |
Central Florida | Real Estate Investment | Ocala | ||
Real Estate [Line Items] | ||
# of Buildings | building | 1 | |
Estimated Sq. Ft. | ft² | 1,085,280 | |
Estimated Project Cost(1) | $ 83,100 | |
GAAP Investment Balance as of 6/30/2022 | 60,483 | |
Amount Funded as of 6/30/2022 | $ 49,711 | |
% Leased as of 6/30/2022 | 0% | |
Central Florida | Real Estate Investment | South Shore | ||
Real Estate [Line Items] | ||
# of Buildings | building | 2 | |
Estimated Sq. Ft. | ft² | 270,885 | |
Estimated Project Cost(1) | $ 40,500 | |
GAAP Investment Balance as of 6/30/2022 | 9,680 | |
Amount Funded as of 6/30/2022 | $ 9,367 | |
% Leased as of 6/30/2022 | 0% | |
Phoenix, AZ | Cotton 303 | ||
Real Estate [Line Items] | ||
Project (% owned) | 93% | |
Phoenix, AZ | Real Estate Investment | Cotton 303 | ||
Real Estate [Line Items] | ||
# of Buildings | building | 2 | |
Estimated Sq. Ft. | ft² | 880,678 | |
Estimated Project Cost(1) | $ 84,200 | |
GAAP Investment Balance as of 6/30/2022 | 47,798 | |
Amount Funded as of 6/30/2022 | $ 39,150 | |
% Leased as of 6/30/2022 | 45% | |
Leased area | ft² | 392,278 | |
Real estate investment property, lease term | 10 years | |
Indianapolis, IN | Mt. Comfort | ||
Real Estate [Line Items] | ||
Project (% owned) | 80% | |
Indianapolis, IN | Real Estate Investment | Mt. Comfort | ||
Real Estate [Line Items] | ||
# of Buildings | building | 1 | |
Estimated Sq. Ft. | ft² | 1,053,360 | |
Estimated Project Cost(1) | $ 65,500 | |
GAAP Investment Balance as of 6/30/2022 | 38,598 | |
Amount Funded as of 6/30/2022 | $ 29,581 | |
% Leased as of 6/30/2022 | 0% | |
Greenville-Spartanburg, SC | Smith Farms | ||
Real Estate [Line Items] | ||
Project (% owned) | 90% | |
Greenville-Spartanburg, SC | Real Estate Investment | Smith Farms | ||
Real Estate [Line Items] | ||
# of Buildings | building | 3 | |
Estimated Sq. Ft. | ft² | 2,194,820 | |
Estimated Project Cost(1) | $ 170,400 | |
GAAP Investment Balance as of 6/30/2022 | 85,704 | |
Amount Funded as of 6/30/2022 | $ 60,704 | |
% Leased as of 6/30/2022 | 36% | |
Leased area | ft² | 797,936 | |
Real estate investment property, lease term | 12 years |
Investments in Real Estate - Na
Investments in Real Estate - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Real Estate [Abstract] | |||
Investments in real estate under construction | $ 294,399 | $ 161,165 | |
Capitalized interest | $ 2,800 | $ 1,141 | |
Fairburn JV | |||
Real Estate [Line Items] | |||
Additional ownership percentage purchased | 13% | ||
Payments to acquire interest in joint venture | $ 27,958 | ||
Noncontrolling interest in joint ventures | $ 25,058 |
Investments in Real Estate - _3
Investments in Real Estate - Schedule of Land Held for Development (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) a | Dec. 31, 2021 USD ($) | |
Real Estate [Line Items] | ||
Land held for development | $ 108,032 | $ 104,160 |
Real Estate Investment | ||
Real Estate [Line Items] | ||
Approx. Developable Acres | a | 550 | |
Land held for development | $ 108,032 | |
LXP Amount Funded | $ 102,548 | |
Reems & Olive | Phoenix, AZ | Real Estate Investment | ||
Real Estate [Line Items] | ||
Project (% owned) | 95.50% | |
Approx. Developable Acres | a | 420 | |
Land held for development | $ 101,227 | |
LXP Amount Funded | $ 96,788 | |
Mt. Comfort Phase II | Indianapolis, IN | Real Estate Investment | ||
Real Estate [Line Items] | ||
Project (% owned) | 80% | |
Approx. Developable Acres | a | 116 | |
Land held for development | $ 5,076 | |
LXP Amount Funded | $ 4,033 | |
Fairburn JV | Atlanta, GA | Real Estate Investment | ||
Real Estate [Line Items] | ||
Project (% owned) | 100% | |
Approx. Developable Acres | a | 14 | |
Land held for development | $ 1,729 | |
LXP Amount Funded | $ 1,727 |
Dispositions and Impairment - A
Dispositions and Impairment - Additional Information (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | Dec. 31, 2021 property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of real estate properties held for sale | property | 8 | 8 | |
Impairment of real estate | $ 1,829 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Aggregate gross disposition price | 55,395 | 183,427 | |
Gain on sale of properties | $ 28,110 | $ 88,645 |
Dispositions and Impairment - S
Dispositions and Impairment - Schedule of Properties Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Real estate, at cost | $ 202,810 | $ 170,117 |
Real estate, intangible assets | 14,492 | 9,454 |
Accumulated depreciation and amortization | (107,393) | (99,659) |
Deferred expenses, net | 1,629 | 1,759 |
Other | 3,008 | 915 |
Assets held for sale | 114,546 | 82,586 |
Liabilities: | ||
Accounts payable and liabilities | 2,004 | 1,908 |
Deferred revenue | 1,696 | 483 |
Prepaid rent | 1,395 | 1,077 |
Liabilities held for sale | $ 5,095 | $ 3,468 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, measurement input | 0.095 | |
Property held-for-sale, residual capitalization rate | 0.080 | |
Discount Rates | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, measurement input | 0.080 | |
Discount Rates | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, measurement input | 0.100 | |
Capitalization Rates | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, measurement input | 0.075 | |
Capitalization Rates | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, measurement input | 0.080 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | $ 9,558 | |
Interest rate swap liabilities | $ (6,258) | |
Fair Value, Recurring | (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | |
Interest rate swap liabilities | 0 | |
Fair Value, Recurring | (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 9,558 | |
Interest rate swap liabilities | (6,258) | |
Fair Value, Recurring | (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | |
Interest rate swap liabilities | 0 | |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 1,684 | 12,735 |
Fair Value, Nonrecurring | (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 0 | 0 |
Fair Value, Nonrecurring | (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 0 | 0 |
Fair Value, Nonrecurring | (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | $ 1,684 | $ 12,735 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - (Level 3) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Liabilities | ||
Fair value of debt | $ 1,436,263 | $ 1,491,868 |
Carrying Amount | ||
Liabilities | ||
Carrying value of debt | $ 1,612,606 | $ 1,497,064 |
Investments in Non-Consolidat_3
Investments in Non-Consolidated Entities - Schedule of Investment in Non-Consolidated Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment Balance as of | $ 59,132 | $ 74,559 |
NNN MFG Cold JV L.P. ("MFG Cold JV") | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage Ownership at | 20% | |
Investment Balance as of | $ 28,851 | 30,752 |
NNN Office JV L.P. ("NNN JV") | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage Ownership at | 20% | |
Investment Balance as of | $ 11,486 | 24,112 |
Etna Park 70 LLC | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage Ownership at | 90% | |
Investment Balance as of | $ 12,931 | 12,874 |
Etna Park East LLC | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage Ownership at | 90% | |
Investment Balance as of | $ 2,116 | 2,797 |
BSH Lessee L.P. | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage Ownership at | 25% | |
Investment Balance as of | $ 3,748 | $ 4,024 |
Investments in Non-Consolidat_4
Investments in Non-Consolidated Entities - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) asset | |
Investments in and Advances to Affiliates [Line Items] | |
Number of properties sold | asset | 3 |
NNN Office Joint Venture | |
Investments in and Advances to Affiliates [Line Items] | |
Proceeds from equity method investment, distribution | $ 28,147 |
NNN Office Joint Venture | Mortgages | |
Investments in and Advances to Affiliates [Line Items] | |
Non-recourse mortgage loan | 166,460 |
NNN Office Joint Venture Properties | NNN Office Joint Venture | |
Investments in and Advances to Affiliates [Line Items] | |
Aggregate gain on sale of properties | 114,481 |
Proceeds from property sales | 141,050 |
NNN Office Joint Venture Properties | NNN Office Joint Venture | Equity in Earnings | |
Investments in and Advances to Affiliates [Line Items] | |
Aggregate gain on sale of properties | $ 22,896 |
Investments in Non-Consolidat_5
Investments in Non-Consolidated Entities - Schedule of Operation Results of Nonconsolidated Investee (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Total gross revenues | $ 79,775 | $ 81,541 | $ 160,053 | $ 174,098 |
General and administrative | (9,296) | (7,912) | (20,033) | (16,332) |
Gains on sales of properties | 27,855 | 66,726 | 28,110 | 88,645 |
Impairment charges | (1,829) | 0 | (1,829) | 0 |
Interest expense | (10,821) | (11,474) | (21,503) | (22,960) |
Provision for income taxes | (263) | (344) | (680) | (716) |
Net income | $ 41,538 | $ 73,787 | 52,446 | 115,262 |
NNN Office Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
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 properties | 114,481 | 0 | ||
Impairment charges | (21,067) | 0 | ||
Debt satisfaction losses, net | (7,474) | 0 | ||
Interest expense | (4,869) | (5,981) | ||
Income (loss) from continuing operations | 87,761 | (728) | ||
Provision for income taxes | (273) | (53) | ||
Net income | $ 87,488 | $ (781) |
Debt - Schedule of Mortgages an
Debt - Schedule of Mortgages and Notes Payable (Details) - Mortgages and Notes Payable - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
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 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2007 | |
Debt Instrument [Line Items] | ||||
Capitalized interest | $ 2,839,000 | $ 1,396,000 | ||
Mortgages and Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 4% | 4% | ||
Trust Preferred Securities | 6.804% Trust Preferred Securities | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 200,000,000 | |||
Interest rate, effective percentage | 2.986% | |||
Principal amount outstanding | $ 129,120,000 | $ 129,120,000 | ||
Unamortized debt issuance costs | $ 1,476,000 | $ 1,525,000 | ||
Trust Preferred Securities | London Interbank Offered Rate (LIBOR) | 6.804% Trust Preferred Securities | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.70% | |||
Minimum | Mortgages and Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.50% | 3.50% | ||
Maximum | Mortgages and Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 4.30% | 4.30% |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Face amount of senior notes | $ 998,932 | $ 998,932 |
Unamortized debt discount | (3,441) | (3,655) |
Unamortized debt issuance costs | (6,878) | (7,346) |
Senior notes payable, net | 988,613 | 987,931 |
August 2021 | ||
Debt Instrument [Line Items] | ||
Face amount of senior notes | $ 400,000 | 400,000 |
Interest rate | 2.375% | |
Percentage of issuance price | 99.758% | |
August 2020 | ||
Debt Instrument [Line Items] | ||
Face amount of senior notes | $ 400,000 | 400,000 |
Interest rate | 2.70% | |
Percentage of issuance price | 99.233% | |
May 2014 | ||
Debt Instrument [Line Items] | ||
Face amount of senior notes | $ 198,932 | $ 198,932 |
Interest rate | 4.40% | |
Percentage of issuance price | 99.883% |
Debt - Schedule of Credit Agree
Debt - Schedule of Credit Agreement Terms (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Revolving credit facility borrowings | $ 120,000,000 | $ 0 |
Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 600,000,000 | |
Revolving credit facility borrowings | 120,000,000 | |
Remaining borrowing capacity | 480,000,000 | |
Unsecured Term Loan, Expiring January 2025 | Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Interest rate | 2.732% | |
Unamortized debt issuance costs | $ 1,302,000 | $ 1,554,000 |
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.775% | |
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.45% | |
London Interbank Offered Rate (LIBOR) | Unsecured Term Loan, Expiring January 2025 | Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2019 USD ($) instrument | |
Derivative [Line Items] | ||||||
Gain (loss) to be reclassified during next 12 months | $ 4,145 | $ 4,145 | ||||
Interest expense | 10,821 | $ 11,474 | 21,503 | $ 22,960 | ||
Interest Rate Swap | Designated as Hedging Instrument | Other Assets | ||||||
Derivative [Line Items] | ||||||
Derivative asset | $ 9,558 | 9,558 | ||||
Interest Rate Swap | Designated as Hedging Instrument | Other Liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative liability | $ (6,258) | |||||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Number of instruments | instrument | 4 | |||||
Notional amount | $ 300,000 | |||||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | Interest Expense | ||||||
Derivative [Line Items] | ||||||
Amount of gain (loss) recognized in OCI on derivatives | 13,895 | 3,486 | ||||
Amount of loss reclassified from accumulated OCI into income | $ 1,921 | $ 2,436 |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||||
Rent revenue reduced | $ 198 | $ 334 | ||||
Cost incurred, not incremental to the execution of a lease | $ 34 | 34 | ||||
Sublease income | 1,660 | 1,713 | ||||
Investment in a sales-type lease | $ 28,000 | 28,013 | 28,013 | $ 0 | ||
Real estate, net | 17,292 | 3,663,291 | 3,663,291 | 3,534,966 | ||
Deferred expenses, net | 619 | 22,627 | 22,627 | 18,861 | ||
Rent receivable – deferred | 775 | 67,404 | 67,404 | $ 63,283 | ||
Selling profit from sales-type lease | 9,314 | $ 9,314 | $ 0 | $ 9,314 | $ 0 | |
Remaining rent payments in addition to the purchase option price | $ 371 | |||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Remaining lease term (up to) | 38 years | 38 years |
Lease Accounting - Lease Income
Lease Accounting - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Fixed | $ 67,015 | $ 70,630 | $ 133,997 | $ 142,572 |
Variable | 10,924 | 9,942 | 22,478 | 29,645 |
Total | $ 77,939 | $ 80,572 | 156,475 | 172,217 |
Termination fee income | $ 0 | $ 11,827 |
Lease Accounting - Future Fixed
Lease Accounting - Future Fixed Rental Receipts (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 - remainder | $ 129,436 |
2023 | 260,344 |
2024 | 233,138 |
2025 | 213,063 |
2026 | 194,619 |
2027 | 160,120 |
Thereafter | 607,377 |
Total | $ 1,798,097 |
Lease Accounting - Supplemental
Lease Accounting - Supplemental Balance Sheet Information (Details) | Jun. 30, 2022 | Jun. 30, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term, operating leases (years) | 9 years 6 months | 11 years 3 months 18 days |
Weighted-average discount rate, operating leases | 4% | 4.10% |
Lease Accounting - Components o
Lease Accounting - Components of Lease Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Fixed | $ 2,538 | $ 2,497 |
Variable | 42 | 22 |
Total | 2,580 | 2,519 |
Property operating | ||
Lessee, Lease, Description [Line Items] | ||
Fixed | 1,771 | 1,824 |
Variable | 0 | 0 |
Total | 1,771 | 1,824 |
General and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Fixed | 767 | 673 |
Variable | 42 | 22 |
Total | $ 809 | $ 695 |
Lease Accounting - Operating Le
Lease Accounting - Operating Lease Liabilities Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 - remainder | $ 2,381 | |
2023 | 5,290 | |
2024 | 5,199 | |
2025 | 5,204 | |
2026 | 4,174 | |
2027 | 3,673 | |
Thereafter | 7,501 | |
Total lease payments | 33,422 | |
Less: Imputed interest | (6,439) | |
Present value of operating lease liabilities | $ 26,983 | $ 29,094 |
Equity - Additional Information
Equity - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2018 shares | Jul. 31, 2015 shares | |
Equity [Line Items] | ||||||
Authorized amount (in shares) | 10,000,000 | 10,000,000 | ||||
Stock repurchased and retired during period (in shares) | 6,098,026 | 6,098,026 | ||||
Stock repurchased and retired during period (in dollars per share) | $ / shares | $ 11.45 | $ 11.45 | ||||
Common shares repurchased (in shares) | 0 | 0 | ||||
Shares remaining available for repurchase (in shares) | 2,878,289 | 2,878,289 | ||||
Unsettled Repurchases | $ | $ 3,745,000 | $ 3,745,000 | ||||
Series C cumulative convertible preferred, shares outstanding (in shares) | 1,935,400 | 1,935,400 | 1,935,400 | |||
Series C cumulative convertible preferred, liquidation preference | $ | $ 96,770,000 | $ 96,770,000 | $ 96,770,000 | |||
OP unit equivalent in common shares | 1.13 | |||||
Partners' capital account (in units) | 757,000 | 757,000 | ||||
Series C Cumulative Convertible Preferred Stock | ||||||
Equity [Line Items] | ||||||
Series C cumulative convertible preferred, shares outstanding (in shares) | 1,935,400 | 1,935,400 | ||||
Preferred stock, dividend per annum (in dollars per share) | $ / shares | $ 3.25 | |||||
Series C cumulative convertible preferred, liquidation preference | $ | $ 96,770,000 | $ 96,770,000 | ||||
Convertible preferred stock, conversion ratio | 2.4339 | 2.4339 | ||||
Preferred stock conversion, threshold conversion price percentage (at least) | 1.25 | 1.25 | ||||
Forward Contracts | ||||||
Equity [Line Items] | ||||||
Number of shares sold (in shares) | 3,649,023 | |||||
Proceeds from sale of stock | $ | $ 38,492,000 | |||||
Share-based Payment Arrangement | ||||||
Equity [Line Items] | ||||||
Shares granted (in shares) | 25,297 | 27,565 | ||||
Grant date fair value | $ | $ 357,000 | $ 300,000 | ||||
At-The-Market Program | ||||||
Equity [Line Items] | ||||||
Sale of stock, authorized amount (up to) | $ | $ 350,000,000 | |||||
Common shares amount available for issuance | $ | $ 294,985,000 | 294,985,000 | ||||
Underwritten Offering | Forward Contracts | ||||||
Equity [Line Items] | ||||||
Number of shares to be settled on a forward basis (in shares) | 16,000,000 | |||||
Sale of stock (in dollars per share) | $ / shares | $ 12.11 | |||||
Shares to be settled on forward basis, aggregate value | $ | $ 183,392,000 | $ 183,392,000 |
Equity - Changes in Other Compr
Equity - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,323,228 | $ 1,991,137 |
Ending balance | 2,259,650 | 2,051,369 |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (6,258) | (17,963) |
Ending balance | 9,558 | (12,041) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other comprehensive income before reclassifications | 13,895 | 3,486 |
Amounts of loss reclassified from accumulated other comprehensive income to interest expense | $ 1,921 | $ 2,436 |
Equity - Effects of Changes in
Equity - Effects of Changes in Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||||
Net income attributable to LXP Industrial Trust shareholders | $ 41,298 | $ 72,678 | $ 51,920 | $ 113,720 |
Transfers from noncontrolling interests: | ||||
Increase in additional paid-in-capital for reallocation of noncontrolling interests | 0 | 435 | ||
Increase in additional paid-in-capital for redemption of noncontrolling OP units | 109 | 468 | ||
Change from net income attributable to shareholders and transfers from noncontrolling interests | $ 52,029 | $ 114,623 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Consolidated properties $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 project |
Real Estate Properties [Line Items] | |||
Number of development projects | project | 6 | ||
Forecast | |||
Real Estate Properties [Line Items] | |||
Real estate investment property, estimated cost | $ | $ 95,229 | $ 143,939 |
Supplemental Disclosure of St_2
Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Other Significant Noncash Transactions [Line Items] | ||
Interest paid | $ 23,237 | $ 23,349 |
Income taxes paid, net | 952 | 1,008 |
Noncash increase to real estate investments under construction | $ 43,551 | 8,998 |
Exercised lease extension options | ||
Other Significant Noncash Transactions [Line Items] | ||
Noncash increase to real estate investments under construction | 438 | |
RR Ocala 44, LLC | Non-cash increase in investments | ||
Other Significant Noncash Transactions [Line Items] | ||
Noncash increase to real estate investments under construction | 489 | |
Noncontrolling interest liability assumed | $ 489 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |
Jul. 01, 2022 USD ($) property $ / shares shares | Jun. 30, 2022 $ / shares shares | Jun. 30, 2022 $ / shares shares | |
Subsequent Event [Line Items] | |||
Stock repurchased and retired during period (in shares) | 6,098,026 | 6,098,026 | |
Stock repurchased and retired during period (in dollars per share) | $ / shares | $ 11.45 | $ 11.45 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock repurchased and retired during period (in shares) | 1,800,000 | ||
Stock repurchased and retired during period (in dollars per share) | $ / shares | $ 10.65 | ||
Increase in repurchase authorization | 10,000,000,000 | ||
Disposed properties | property | 3 | ||
Property, plant and equipment, disposals | $ | $ 91,950,000 | ||
Subsequent Event | Unsecured Term Loan | Maturity of July 2026 | |||
Subsequent Event [Line Items] | |||
Face amount of debt instrument | $ | $ 300,000,000 | ||
Interest rate | 2.722% |