LXP - Earnings call transcript Q3 2017

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Operator

Good morning and welcome to the Lexington Realty Trust third quarter 2017 conference call and webcast. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Heather Gentry, Investor Relations. ahead. go Please

Heather Gentry

constitute disclosure Welcome in this XXXX a forward-looking operator. was Lexington conference of Trust our and Securities Realty this the statements results this Thank to available believes assumptions. Investors are call Certain X-K. to section reasonable and quarter on supplemental release the conference furnished expected and meaning at Form results within that on SEC and statements release that on may regarding webcast. the third the call Litigation made details morning of be quarter's www.lxp.com you, future website Reform both the package these events the The distributed during will XXXX. based earnings statements Private and are Act Lexington

position fully an of flow. a numerical measures or measure performance, factors a by future unitholders to materially In in funds financial from and cash statements. from law, historical and Lexington reports available the has duty these forward-looking intended non-GAAP those diluted any investment in earnings operations FFO to time package, holders expressed or to GAAP Lexington's supplemental those those release included to to could update presenting SEC or time basis. including references as disclosure undertake performance comparable such viewed statements. to does on and company that adjusted all all and documents Operating release, most not Lexington risks, from differ measures of Lexington financial in company cause be not individual as press results However, earnings measure. Lexington's are a Any press by today's the described financial directly refer to files the adjusted with certain reconciled required to Except implied equity actual

Financial Officer. to be to of remarks. our Executive conference executive other and Will, today's following Chief members on call group, turn questions Eglin, our Chief Pat, quarter management, now discuss available to call Will. Officer, will are Pat answer results third the prepared Will and over Carroll, me will Lexington's including Joining XXXX I transactions

Will Eglin

third Heather. thank call Thank, earnings joining webcast. and our and everyone XXXX you quarter for Good morning,

pleased quarter totaled per operations from the diluted third results. generated to of funds report we are company share quarter. per We and positive income common $X.XX Net common $X.XX adjusted share during

to and addition We our in to improvements results, of notably In subsequent business financial portfolio quality the million lead end the million plan positive added the continues to portfolio. execution to quarter, of at $XXX during acquired our the overall portfolio property industrial assets most $XXX September. to of significant industrial three a

the compared and disposed leases expenses. as during an feet We on operating our when the and XX% square recognizing feet of the of million have with quarters, a of bottoming CapEx then. we full past to quarter years. in quarter in supported exposure and and maturity average volume of Leasing to subsequently, our related another also reducing of incremental quarter result healthy of additional our further since X.X leasing of at quarter of a to primarily completed weighted XX.X% the Leverage $XX debt end risk unencumbered EBITDA. percentage X.X XXX,XXX quarter [ph] leased without shape sheet benefit as well of assets our increased non-core square a million I-XX the the third in of acquisition, portfolio fund Overall, a good remains few industrial line as balance assets

dividend FFO company increase we year, leading we of share. rate common $X.XX our result Given XXXX our visibility share. $X.XX range common guidance annual $X.XX within in of into announce are to the the remainder today the a of tightening volume, weighted XXXX as per adjusted better to $X.XX Also, our longer average a diluted term, acquisition from and per profile improving an risk lease

for build-to-suit and X.X% a the and industrial The rest the the of we to properties third a with investment have closer of year $XXX given the the take years these the Kellogg investments, in for proximity one real and all our Starting of leased Tennessee average grade Nissan, look bulk total Let’s of at rates XX the are at quarter X.X% was quality Interstate industrial million beyond. submarkets to purchase cap quarter, approximately cash we're thinking the acquired quarter I-XX the in These and four and GAAP of how during constructed and McCormick distribution industrial estate, portfolio and newly attributes respectively. locational Class of the that the assets facilities of XX. add volume were and credit close located completed excited warehouse within tenants. properties Mississippi portfolio, to brands. to We about the quality high A

Alabama, Caterpillar for facility Golden million a leased to Georgia the quarter, of distribution end for million. Pacific a the We and facility Subsequent Foods XX.X Indiana, industrial foot to also distribution in years. McDonough, $XX Lafayette, for State build-to-suit a in purchased Opelika, leased for square Georgia seven completed years to in leased $XX years we XXX,XXX to purchased XX

total and substantially our industrial X.X% GAAP have commitments XXXX once the additional expected of activity further by to We to would helped to these forward increase respectively. new two overall additions of million close rates revenues expect portfolio of portfolio expect the will both for million third quarter is cash acquisitions. industrial $XXX holdings year investment of We approximately are term. which and and commitments, forward XX% revenue of X.X% end $XX to X.X square shortly. at These cap million exposure an almost our all footage add lease to to quarter is industrial, in Including full recognized revenues weighted average and increase average

and in to transaction relationships assets evaluate our the have further either find area. our through industrial the demand acquire, holdings tightened pricing industrial to increasing leaseback continues market, and acquisition sale Strong purchase fundamentals primarily source new leverage new team in to our build-to-suit to in value the franchise opportunities. We project, a and continue of or

We industrial return intensive better given greater profile, space, and less shift long-term towards in its its favor capital continued and the trends. relevance continue attributes the it’s to e-commerce demographic

are Given available proceeds we and we cash our current from pipeline, a believe funding positioned dispositions, perspective. ample from credit, well

further successful operating lease quarter term and and XXXX. at asset October million $XX asset included have improve vacant wholly High sold and for in had Further, totaled million an of totaling quarter Moving office and with in plan industrial two million on we from while X.X% and quarter sales building million North and retail, the short Illinois X.X% in costs non-core assets of risk. XXXX announced simplify another and quality to completed Fishers, of portfolio of Sales raised cash Subsequent vacant building office the our approximately to X.X% our dispositions, $XX the reducing multi-tenanted portfolio, selling XX, leasing of million in and Lisle, consisted GAAP properties, expired $XX primarily an consisted leased Carolina date, dispositions respectively Point, office, building and cash cap $X building To rates of properties. of to an dispositions X.X% of whose bulk end, we we disposition owned $XXX have cap office non-consolidated which and and at an a GAAP rates Indiana. loan respectively. average

and of between expect of to now modest of million remainder volume next be to million sales sold disposition targeting We the repositioning. XXX and are portfolio for year complete of the current asset quarter fourth XXX our to end

on to lease in a we renewal to Cingular, XXXX with value down the for near lease respectively. and Turning quarter, Automotive, in and as were a Logistics industrial X% had extensions result to up a rents and we long by end. with Industrial New further, the up three rents were this which years, which X% we years for leasing, up X% quarter lease cash GAAP ODW basis XXX,XXX rents on expiration down of square cash with the and square order GAAP rents X% this Logistics rents of at rent exchange respectively. XX.X% Tenneco cash XX% included GAAP quarter, of property. and office in lowered Renewal additional Breaking lease leased and approximately foot renewal feet portfolio extension X.X overall term renewed leased and a the raised of Tenneco all XX North which GAAP volume were cash respectively our Carolina create and the Statesville, Subsequent lease Geodis cash majority The XX% basis. during and million X% flat in decreased in expirations.

and Branch, weighted lease Farmers approximately new Texas, term, Property XX% currently XX% we property at or a and expirations new online XX%. at lease lease lease since sale to the our signed sales, our of expirations tenant average continued office also Through multi-tenant investments occupancy our our lengthen in approximately property XXXX a renewals of leasing XXXX coming from beginning to increasing have year. addressed single through virtually X.X renewal all years. efforts, lease the of We

about XXXX X% remaining represent which We overall to only diligently to work of expirations, lease the continue address portfolio.

are its XXXX million balance. not with the the that XXXX the is of lease office the which the anticipate office in We sale. and event mortgage marketing There expirations. Re largest renew means in makes on tenant to is December risk value Swiss we the create lease expire up cannot Overland property, $XX mitigated lease do space or side, is our Kansas, in non-recourse a downside we for of On the loan will set in which of large excess Park, our the percentage lease

square for feet Pacific office the the out underway in their McDonough, are Wallingford and two we this remaining May, XXX,XXX Nissan for have Connecticut our Union will in be building. in lease. Current foot of Irving, properties square begun space marketing negotiations moving space Texas XX,XXX and XXXX currently Georgia. in Additionally, occupies

On majority and the of these explorations. pursuing industrial we leases no side, the actively until on expiring XX, XXXX September renewals are have

As relation properties and larger a square revenue whole, the portfolio. footage these in represent minimal to

both we lease owned venture the XXX,XXX a XX% retail, square and process of XX,XXX in marketing to Georgia Palm either Albany, a which square sale. Florida a in space Gander joint or our Mountain Gardens, interest on foot in XXX% includes foot Beach are Moving properties, for in space

lease about Buy being operations. Best and off revenues and our result, that Dollar X% Overall, retail outcomes are actively and to retail we material properties represent come of marketed believe our for properties Mighty sale. XXXX as both a not in Additionally, are do our leasing only

to increased of result a net the briefly sheet, Leverage EBITDA our balance remains the to to industrial primarily in I-XX fine shape. debt X.X purchase. as quarter, times during balance Moving sheet the portfolio

on borrowings two increased to overall credit continue connection Pat in which detail discuss with be loans, the we line will metrics and more In our our Our strong. purchase, shortly. term

our think during non-recourse expirations we of and summary, quarter, to office As quality our plan direction execute flexibility the industrial revolving sheet. obtain disposing will In pay lease on acquiring some we reduce of business be flexible addressing we maintain by balance mortgage facility. financings non-core about the high our a to to of the used and continued third credit our portfolio These investments, sheet, term to and simplify maintaining could balance successfully properties. specifically down proceeds future continue cost, near assets may

years potential valuation several carefully ago. same near term completion our long the a as and goals constructed of of growth remain forward, an we plan improved we started Looking

growth through call We the our now will and review I our results space, will act the the opportunities over rollover. term on who near Pat finishing financial attractive while lease of will turn disposition in that, continue in remainder managing plan detail. to multi-year more to the With industrial

Pat Carroll

XXXX. revenues primarily gross is or Thanks, million common common The by XXXX new of leases. morning, revenues the same sold common for generated net XX attributable XXXX the XXXX. were time or attributable compared per everyone. in XXX Good loss million, were from share, quarter City which investments per period and million income $XX and the to to acquisitions quarter for Will. land was partially lease revenues shareholders for $X.XX Net of expirations, sales, a time same Gross $X largely share in the and in the diluted $X.XX for we to with York compared property New million change period offset diluted XXXX

share. and other now income timing per a within to XXXX net $X.XX diluted composition to acquisitions for common among range to is Our is of of be sensitive factors. $X.XX guidance estimate expected and fully This sales the

GAAP quarter property period York adjusted related of sales. million or the common lining $XX During was we million common in rents City XX same investments, of about recognized of GAAP for place common per XXXX. the XXXX. million tenant of page for diluted we XXXX share supplement, straight charges gains New XX September Adjusted which generated to the leases in time both XXXX. FFO per X in of quarter, and by for in and during have to and land the compared a On company as rents of the impairment $X.XXX per quarter company $X.XX million cash of FFO XX sold The X.X of of share estimates we primarily diluted $X.XX the for million cash were or third XXXX twenty or quarter remainder rents. rents XX, excess in XXXX share of included result the at September of approximately the million,

move-outs. office releasing this expirations, reminder, or property lease properties, time with the the XXXX September our been third approximately XXX at Subsequent store for XXX scheduled leased million, XXXX million on XXXX due tenant and vacant Same to extensions both quarter. XXXX a was not a Same were of of tenant primarily compared property we ended sales quarter any end down in was at as Property in XX, those same the months to net results from XXXX space, operating operating September with compared the income XX, As XXXX XX.X% to move-outs. the second move-outs. vacant and of September lease assume result properties to acquisitions. line does million quarter, for XX, down which percentage same period the XXXX, two $XX sold store time of in XX.X% nine prior had period slightly same for

quarter, Additionally, line G&A with expenses million the for were second X quarter. in the

related X.XX to results merger. in a Newkirk exposure be The a quarter $XX under to from maximum The was expect million of carve-out claim fourth to third G&A of a mortgage the non-recourse assumed litigation settlement quarter. We comparable reserve guaranty guaranty the the million.

balance about sheet. let's talk the Now,

to maintain of balance of approximately the cash cash including had quarter restrictive. continue million interest the at classified the on debt of a consolidated had flexible as balance at of X.X%. We we XXX billion quarter, a weighted the end the sheet, outstanding We sheet. rate X.X end of At average

well of XX% to continued of rates is September As levered debt we schedule. maturity at XXXX, fixed XX, our and maintain a

I-XX facility. as debt our $XX drew a The both of loan respectively them is our we a bring million credit increased increased portfolio XXX balance fund our and the Our by the revolving quarter each to larger $XXX increase term to term on during to and $XX facility industrial of purchase million. of loans million amendment part credit we the to million

of of the facility facility the the In addition of increases, X.X a amendment X.X quarter of capacity loan adjusted to charge and times to million amount increased and overall the the term the approval quarter total revolving the to credit debt our to the compared $X XXX increases maximum end of lender XXX by times with million for second net at approximately leverage billion. the quarter X.X of was was times XXXX. the at Fixed end coverage EBITDA to

the As quarter. I-XX Will million during of portfolio debt rose leverage a the We industrial acquisition. of non-recourse earlier, mortgage the timing result mentioned satisfied XX as of

maturity of year. As non-recourse million but remainder mortgage had coming September we other balloon the currently XX, of due of default, mortgages XX in consolidated XXXX, the payments no

as XXXX. Our of was X.X approximately of base our unencumbered XX% XX, representing September approximately NOI asset billion,

the new the year. XX in which along credit our to with of lease mentioned million we XXX look million and we approximately sources lease during as TI of be our additional leasing will as To to available XX paid X and remainder $XXX We investment capital I was in paid million just used an for million costs as the This XXXX, investments. on outstanding XX, improvements September up expect date, million. commitments As in cash to tenant facility, fund costs quarter. increased we revolving approximately had and and costs

back over the I'll to Will. call Now, turn

Will Eglin

have comments Thanks, Pat. Operator, time. I at this no further

So for you the the we're question-and-answer of call. conduct portion to ready

Operator

come Evercore. The [Operator will Instructions] from question first McGrath of Sheila

Sheila McGrath

of was that's is mix goal. I there wonder has get the wondering portfolio ideal non-core industrial I up the would of sale could you percentage again, know I quickly. your gone what there Will, talk you which more and to if if a consider about assets

Will Eglin

Sheila. Sure,

versus the in good making of I more industrial toward progress portfolio think we’re office. having

properties office. will is the we next that we if through which more what refer office Some on can portfolio we secondarily, industrial; and at but now, we that retail that the has industrial, of the is -- depend proceeds think and portfolio we're I but think of what find which year, reinvest tenant in stuff a XX% any of selling the composition in of not year properties investments. sort big looking And Right the invest and end improvement. of as what to we're execute some plan office, some most like is XX% to next

So and me if were like of like to look it in to industrial right we the going favor to now. beyond seems is it portfolio to there, more more tilt continue seems

to net in standpoint, felt have in one-off we like a sell it's the assets of past, looked portfolio at from asset far series We but the dispositions transactions. value better been

Sheila McGrath

your the the us if on do quarter, than was fourth you typically this this will transactions less most much quarter quarter, how fourth it think you insight, active be I looking some has quarter could million. acquisition, quarter. wondering give for is is but then And XXX pipeline in

Will Eglin

close of close about in quarter. have million commitments we XX the fourth don't to anything that the else Yeah. to Right now, forward we and scheduled have are

last different a me thought forward from a that's funding it those that last had but good finish And but year, time, very will once up, investment year might finish So the are we're standpoint we of is constitute transactions, and our that it’s XXXX. we to probably to shortly. in possible quite something commitments at that seems we compared XXXX would and have XX forward to that at like activity million of probably this -- build-to-suit now right show that lot looking just posture finished, our

to see will have We comes. what

Sheila McGrath

from acquisitions, whole And the what contribute one the EBITDA the the the ticking up of to you net that debt quarter quick one, for net EBITDA last like. adjusted timing portfolio debt you EBITDA the mentioned would look to to if

Will Eglin

it be with would somewhat, It be be would sales burning but would it slightly change would slightly the the six. Sheila, but would be lower close to lower, it off, that it

Operator

The Jon next come question from Jefferies. will of Petersen

Jon Petersen

you cap heard On closed that. that, in did on the quarter, guys don’t I you provide the rate, I acquisitions the

Pat Carroll

X.X%.

Jon Petersen

Is GAAP or that cash?

Pat Carroll

cash. X.XX That’s on And I GAAP a basis. think

Will Eglin

comments the isn’t unfortunately, Our line on blurred out, at of X.XX. so phone a GAAP on X.XX, the been but have greatest basis the some acquisitions

Pat Carroll

[indiscernible] because so year it's industrial portfolio, the two, but had cap some X.X, prove rate about it on free quickly. pretty we was does X.XX rents,

Jon Petersen

feet of And square new is so subsequent guys in end you extended break you that and and what the is XXX,XXX stuff quarter. extended did leases, the of what guys new and to the did you did of out that

Will Eglin

building. lease in which we raised with Farmers was multi-tenant property Geodis. And good, big in was the The a a extended then was we Branch, have on Texas, at one occupancy that facility. a considerably lease so lease office That industrial three-year

Pat Carroll

XXX,XXX is is look of at about foot did it XX,XXX new. you the fourth in quarter, and square about the we that if extensions So XXX

Jon Petersen

move occupancy that assume outs, move you bump trending we occupancy, against little of any should so higher. had is a SO of or have kind we in kind

Will Eglin

one the I moveout it October - No, was XX that sold. a XXXX sold that property had hasn’t mean we

Jon Petersen

thoughts the give And then an FedEx expiration a office pretty one. on I could are there? but XXXX. lease in your you it's know big out, a it's update us ways What

Will Eglin

will in by building Federal to optimistic and We're the continued lead occupancy negotiations with those have continuing negotiations to Federal that we're Express. Express

Jon Petersen

that Getting timing something idea have would like completed? when of about

Will Eglin

making wouldn't good parties, I because it that involves just we progress. on think speculate we're want but to two

Jon Petersen

to about And upcoming on one decisions reform about - final impact actually in then year. asked their you're XQ to and XXXX, willingness of or curious volumes, that on and question kind in whether seeing and next sellers fourth just push things just they quarter want make if into Sheila tax buyers

Will Eglin

extremely you I to but out favorable preliminary, it are just think have on very seen mean proposals since just the to came we I volume. transaction it's haven't read, yet any and impact

Jon Petersen

dividend of keep the few to If doing I taxable say you could your consistent that’s chasing quarters kind income result is sneak every a that's of or of bumps in kind increase, that desire one more, would or so. more

Will Eglin

set taxable we've our income. Well, the upon based dividend

But the going return it's if distributions shareholders. up, where dividend So we is. income is to important so the taxable that's feel to also the

Operator

KeyBanc next The from Mailman come will question Markets. Craig Capital of

Craig Mailman

mark know GAAP On the look like on it roll what lease, I said Tenneco market down basis, cash was a to that you does though.

Pat Carroll

like Hold to on a about very its actually GAAP I supplement, in was prior from and Tenneco bump. a XXX,XXX. XXX,XXX second, The page. GAAP new GAAP It's it's is - the - the GAAP good have lease, it's the went the

Craig Mailman

heard guys I the for. then, didn't had was acquisitions Lafayette Will, year-to-date of think forward X.X the GAAP hear for of what And on you million that X.X commits you XQ. XX say on on is - number and I that or kind I

Will Eglin

For whole the year.

Craig Mailman

look year, fourth the what does it quarter? for The whole like

Will Eglin

a There's three three release. basis, basis. on GAAP on earnings page of the of commitment page on XX and forward It’s the cash X.X lay we supp on the the GAAP in transactions. and the X.X for out a supplemental page the rates X It’s cap

Craig Mailman

here your of stuck just looking rate going your program you seems equity, the I quarter. in kind guys industrial capital throwing of but of these bigger makes how guess debt blended the and just think it and of kind burning of as share, are so of is been just off of you're have harder how you do blended guess repositioning you're the of with on is guys on successful at year. guys like you that, just about GAAP stuff gets are the sourcing basis, that. sense, I cost capital X.X from pencil you and kind some kind then acquisitions about into at to picture, thinking cap this it source cost almost some heading away third that ’XX acquisitions,

Will Eglin

shareholders’ that into excess thinking and re-stimulating we're we're current suburban and on we're class. forward the right capital being our in now asset some in in from Well invested office buildings creating a better retail liquidity of multi-tenant And empty planning pipeline.

So our industrial. that's plan how we're higher thinking office about into now that a redeploy and out to price. improve our from the is capital that plan. lead share We principally should But capital of right of think cost game capital to

Craig Mailman

running you time then get how dispositions much are and have but earmarked. one should haven’t pro you are be thinking capacity you you where you one, know just done now versus debt. the and I that may may of more you and you you yet of funding of for may off clearing have guys line the ’XX, acquisitions when development you could the guys guidance guys capacity, that what about down And by what want you about but, last for and we here, the I guys to have issue use just you think think kind you given maybe where some how Pat, of guys forma earmarked

Pat Carroll

the availability to availability. on we because was that you million the out far the that's of Well, we - $XXX used with as select our that just, be by XXX amended why increased we the reasons the with obviously we limited three one didn't know, agreement, of want million a line of part amount pack,

that million million the we the dispositions XXX now available have be as line, financings do XXX to down through paid any we outstanding specific of and the September we about portfolio. right extent on have So will property in

Will Eglin

probably I X.X debt, we selling Craig, the were it’s X, if somewhere in area. ten-year think

Operator

The from next come from JPMorgan. will question Anthony Paolone

Anthony Paolone

deals X.X in guys did the you forward the the and pipeline quarter fourth quarter X.X. So cash were

to spot know you these where you this of little what like it stuff where as X-ish to Can look that a if cap of you cap call kind all at for would X have like does a to is rate and conversely you doing that kind what it are bit the are duration So about on talk pressure risk seems you XX-year deals. or that take days. get rate want you points a go

Will Eglin

haven't market much a seen much that there's and good in area. the sure case lot ten seemed to trading has lease Tony very for in the seven XX-year Well, in industrial a really we pricing. with our year and terms purchase be shorter of market, And market. that's

in we term been, those it So have was ago. build-to-suit a but can less leases longer them originate right is year build-to-suit, active now than

a of the X-cap investment had side probably without anything going office we're the area that it anything, or risk quarter of you in terms shorter that’s To have fixed full three-pack high looking close and things combined spectrum. of perhaps that But lease not puts pricing. specialized case area. the not construction, that credit the estate arguably facility So real the very term in this going X A-quality we're where we in achieve the grade, industrial risk not one storage secondary cold that real estate, on with sort long going primary. but portfolio - highly new markets There's at to not cap out market we in with that's on That led in a of basis duration. we're to

Anthony Paolone

looking to XXXX XQ. you that you million of forward think where $XXX out in sort about $XXX million mentioned to today, sales sit of just in if then we pipeline And the out gets cleaned

things kind you’re or about we and seller part to think net should least just of of next that year the So at or anticipate wise go timing how see that. earlier how

Will Eglin

think a year. to execute realistic take the right of disposition will I time plan that’s through next The assumption. end now

find now acquisition new promising. there's only right invest will property one that we property that from But January in. a think I to looks

So maybe work way a year. our mix of acquisitions next through and de-leveraging as we

Anthony Paolone

for there back can around Re And just you to it rents of terms tell and to of CapEx versus for of the into would be it graphics Swiss terms you kicking us in any building it that. the the keep put then where lender or kind anything to sense expiration need make is to

Will Eglin

James I of Head Dudley Asset here. I’ll ask Tony, think our Management is

So him share I’ll ask opinion. to his

James Dudley

challenge primary real that building the factor, is The the of factor. load

challenge. real the that's So

So in somewhere a us, square to be but the that a rate adjustment around for it us work be it net, get for with to $XX would footage would multi-tenant would need to order probably the building. that triple rental make to

Anthony Paolone

question, foot that on last was a then a specialized storage square can’t price you’re or the And cold per high the more on deal remember. that side, Golden State building, was

Will Eglin

a essentially It's facility. manufacturing

lease why year there. that's got So we XX

Operator

The next John from of will Stifel. question come Guinee

John Guinee

here got dividend low share X, So if that of to secondary share least equity to an durations oriented industrial have stock idea equity a that in issue from the to good X% XX. the issuing stock, repurchase Longer range kind you're above market as pay and income mostly you us above a a that at below $X XX. thought mode and Is at repurchase mode at a to looks brutal or least you shift is portfolio. in where the

Will Eglin

or shares comment where not on would would We we issue repurchase them. either,

John Guinee

Why not?

Will Eglin

value issuing shares to never if know higher. net existing to decision drive Well shareholders we're we lot asset with the on want. And a because whether a to discount likely repurchasing we how be the of those would do equity John value that conversely, shares, to has would wide issue behalf

And share wouldn't the that want right to under scenario. so I is price what indicate

John Guinee

you or million you this with preferred into in on sold Have in then up a preferred talked the I acquire XXX net to heard you'll that of That's you're XXX a like about schedule million. think maximum to year, debt to about I looks plan. terms mid-X.X Street And caused get maximum you in you EBITDA net presented have plus range. the board plus debt EBITDA to to this go about

Will Eglin

range lower average company terms the the quality the term, certainly and EBITDA, comfortable. debt and portfolio, of improved given In of profile credit X.X% net in CapEx the running is lease weighted X%,

in available function will a market. work have way we through but a acquisition towards shrinking what's leverage our be the We bias bit as part of a next of little that year, our of

John Guinee

The need presenting primarily where can if is as problem be, REIT. to is never shrink you get you yourself industrial leverage, though which a the you

You look Is really it? that a think. I to get up way to to fair lever at have there

Will Eglin

will comments equity toward thing to my mention from go our to one office capital being which I buildings reinvest did into we in able would a maybe Well, view extract in John, that our loan some the more to with portfolio mortgage market I leverage industrial next as in tell we of portfolio is, you, through push and office year. that value

John Guinee

your bifurcate present your portfolio to you Have office you about thought between your asset industrial leverage metrics specific and leverage? when

Will Eglin

at break supplemental With likely year-end two. the we’ll out the

John Guinee

So you’re essentially your increased doing lenders office portfolio. on sales to

Will Eglin

No.

Operator

Ladenburg come go Thalmann. Daniel The next Please Donlan question of ahead. will from

Unidentified Analyst

on This is [indiscernible] actually for Dan.

the So I expecting of remainder clarify million and did my you for [indiscernible]. say to XXXX question, you're TIs in that just wanted around XX LCs

Pat Carroll

It’s almost all TI.

Unidentified Analyst

given that combined is of… you of it’s number, leasing had I XX million mean Why kind commissions, in improvements

Pat Carroll

signed second we've that And quarter, cash work basis. a a the is leases basis, cash done. the the or being It's first in actually say it’s

Unidentified Analyst

So have visibility that that this number pretty at point that might you [indiscernible]. like is number good a solid

Pat Carroll

but face though, on But pushes we mean, it good if January, work number. a it yeah, Yeah, the let's tenant today what change. based feel we right expect do I it a doesn't could that’s now, very off to and

Unidentified Analyst

out how guiding assets. to, you’re to then that XXX of dispositions, much mean, XXXX million And XXX if I of vacant is you that look

Pat Carroll

disposition of leased held build-to-suits the doing plan. a to But sell Not right that what very now, we’ve our some going of there mean, a little years be or office will so. much, five so I to in trying lot for we're be XX% vacancy is we're

turnaround, can lock in have price, investments. get those to we a gains of want we capital out recycle and while we remaining our good So

Unidentified Analyst

And understanding of and the in kind of completely not fluid of vacant of up divested mean, it's XXXX would a as basically to I to a such bit multi-tenant be the end assets expect come by but… change leases going are assets you portfolio,

Will Eglin

still a we level to for to buildings shoot being them industrial high may pure-play and them. think about are traded the go are there we that few multi-tenant to and to want to want that I And as good we possible. not certainly in before to as think a assets haven't very that finish out be up want company have and office single portfolio there close we some we leasing let of. some a tenant It we may rush selling

Operator

McGrath question is The next from Evercore. a Sheila up of follow

Sheila McGrath

to that it next Just that look we CapEx sounds do this CapEx, trending mostly on is commissions leasing the similar If the like year. the next year we be this that TI and million. or year number year would to see start around office will be at roll lower XX

Will Eglin

to think, Sheila, that right is do. million And we XX always we right it could but change number. around I that's leasing based upon what the volume the all now, million XX feel

Operator

go will Associates question from ahead. Development come next Please of Inc. The [indiscernible]

Unidentified Analyst

I affected the in access the cetera. with area, anywhere exposure have regard. either Houston hurricanes, in directly we in the or Any our flooding wise throughout Mississippi properties know and that et southeast some of

Will Eglin

the properties the very came fared the had all. hurricane Portfolio All if well. has line that minor any in of damage, we were with that at out

Unidentified Analyst

over few course And of forward. competitive, helping getting industrial to build-to-suit mentioned get those the even it Are lastly finding or the you of warehousing more has of acquisition still have you sort competitive properties relationships are how moving us last or quarters, gotten.

Will Eglin

sure rates be at show to the opportunity and that marketplace able just up a seen invested. even at an often we I and lost property say relationship like have they're I where are cap next should look drive Well, and would help But last quite get who we've situations to the several competitive us bidders opportunities. a things our get lower lot the in capital feel transaction to

marketplace quite for a that's So competitive it's sure.

Operator

back the session. And Eglin concludes question-and-answer now closing to conference would this for turn over like any remarks. Will to that I

Will Eglin

Thanks again and morning. us continued We participation support. your appreciate everyone joining for this

like would senior our me always, you other again day information management everyone. a supplemental and of team or addition If find to in members company, have on contact additional may receive www.lxp.com. our And Gentry you our on the at Thanks website you please as the contact Heather can quarterly package, or great with any questions.

Operator

is today's now conference for The attending you presentation. Thank concluded.

You now day. a disconnect great your may Have lines.

LXP Industrial Trust (LXP) 7 Nov 172017 Q3 Earnings call transcript