LXP - Earnings call transcript Q2 2018

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Operator

Good day, and welcome to the Lexington Realty Trust Second Quarter Earnings 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 of Investor Relations. ahead. go Please

Heather Gentry

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

today's to Executive and around I equity-holders second historical Dudley However, measures to undertake that certain CEO; measure cash those viewed company on by Will diluted be funds cause materially earnings or Except the will described expressed files provide Mullinix, over turn performance Lara and Lexington Lexington's a differ financial adjusted results. by FFO Will. Lexington has flow. Johnson, statements. or call, and measures package, as numerical company these implied refer intended factors measure. from Lexington reports in those Operating disclosure position James required and future actual individual an of Eglin, of performance, Brendan Any and comparable unit law, holders all Pat release, quarter press supplemental now investment adjusted risks, time-to-time directly call presenting in and from operations the Carroll, all to CFO; quarterly available references a from does non-GAAP Presidents, today's fully basis. the or are Vice included most will the press SEC with duty earnings to documents In as commentary to financial could statements. results to our Lexington's including reconciled to any financial GAAP such those release forward-looking update On a to the in not not

Wilson Eglin

everyone. Thanks, with second NOI high XX year-over-year portfolio were We and lease good at Heather, quarter and June at our results. X% approximately XX.X%. remained morning our increased Same-store pleased

While of common we net posted we slight per common adjusted per share. $X.XX loss diluted company a of share, $X.XX diluted generated FFO

Solid of $XXX up activity million high the investment nearly properties from revenue industrial ago. year XX% of revenue a total XX% in purchase assets, industrial just quality our of portfolio our resulted raising to from

reposition single We our continue leased portfolio diligently primarily assets. it to that so of industrial consists working tenant net

a secondary and Our well be fit for assets our current industrial industrial of located pipeline criteria A can while types and assets. be competitive products industrial desired bidding continues facilities includes for these Class strong markets. investment that in Demand number of of to primary

We believe longer-term of with are more we $XXX finding growth million announced $XXX plan will benefit the Company's dispositions than $XXX halfway opportunities that our we Today disposition completed. million to through million are profile.

resulted impairment to increase to discuss We achieve in impairment our will Pat meaningful first we of properties to this quarter the most effectively. assets, a conducted which shorter way non-industrial we office In these continue for in our in office more during call, As through analysis contemplating property would detail figure we our million of $XX this a holding to as exposure and properties. non-industrial detailed period our potentially sell work discussed reducing on and conference committed to accelerate shortly. our expect these efforts a how remain charges.

portfolio. the of our on our as We transitions accelerate progress will continue to keep you updated we

unencumbered NOI NOI industrial help with remains end, unsecured unsecured facility leverage adjusted to times fund We debt recent XX%. to our at EBITDA X.X leverage sheet at debt purchases. of good and balance our utilized net quarter to Our in during quarter shape at credit times the X.X

in Cold Warren, generated a Storage $XX approximately financed we Michigan Additionally, proceeds. million which facility in gross

While financings, business selectively will favor we certain is strategy we if it to call the properties over asset. to right discuss asset will are Brendan we turn believe of finance sales for still I over in that the investments. now

Brendan Mullinix

two our Will. in X.X% leased activity Beach GAAP of product we net rates square to X.X average included transaction, respectively. and the Thanks parks Hamilton million years. call. of two and property quarter cap for X.X% Investment term quarter These at different highlighted of and a properties weighted seven for located Sephora in the included industrial of first cash industrial $XXX are This feet lease and on million core Memphis purchase in the submarket industrial for approximately

purchased X Group million industrial we square Additionally, leased foot facility approximately Pet years. in A Illinois net Brands XX to Edwardsville, a Class for Spectrum

and future continue we good assets our primary in disciplined we think interested As about quality, secondary we underwriting. but industrial markets, investments, to in be located remain well in

Our industrial pipeline new investments currently for are number reviewing purchase. a we includes of

to [Adnet] large turn Columbus Regarding the distribution call process. looking over still the continues is users, our [indiscernible] Ohio market buildout at positioned to the compete dispositions. to in for Columbus potential project market. market venture, discuss to well believe infrastructure and in attract The we is build-to-suit Lara the joint I'll our interest from

Lara Johnson

Brendan. Thanks

X.X% of assets Year-to-date, and two of and X.X% rates of taken. with which these $XXX assets, sold approximately retail assets the of and an sales included X.X% million at of properties of office of asset GAAP respectively. strategy we and our cash cap cap GAAP non-core $XX was X.X% sold at average average respectively. we've million one cash and disposing During Consistent quarter, rates

exposure work diligence the will few to continue next announced the on other customary and months place $XXX visibility on further favorable dispositions disposition due plan close million dispositions surpass us that for our us to market our would good shareholders for are quality year. both bio and transactions that by sale improved the on expected high remains office and investments, include year. to pending long-term. conditions short that the $XXX These in would sales have properties. focusing over high the the our that We of portfolio closing potentially end returns We of office million The to long-term the we lease for at total positioning allow we significantly to and for guidance are dispositions industrial reducing believe

update we over future As you. provide will leasing. transactions to turn who on that, will certainty to the will more gain I provide updates an we call With on James,

James Dudley

new Thanks which included XXX,XXX Lara. leases. during feet space and We of quarter, approximately office extensions square released three office the two

of quarter a X.X was XX.X% portfolio with end lease Our to years. lease weighted-average term

GAAP in $XX,XXX and were our rents for negotiation an exchange cash rents Tempe, increased property and a extension by lower cash reduction This down for as $XXX,XXX. extensions, with year a On slightly Arizona Materials our rents the Versum in of result XX.X rent.

Pascagoula, GAAP also were We TI and the stayed cash in on in office given dollars which signed Ingalls rents same. either a Huntington Mississippi, lease extension five-year No extension. lease

the lease new the in now quarter, space property. During Nissan office a Irving, XXX,XXX of Nissan office with signed we space. occupies Texas additional square full for feet the

or step both through lease respectively, Redmond, and cash in Cellular space We XXXX currently to Subsequent lease leasing the to extension when cash The Consumer a space quarter Cellular to January square Arizona. in end, with T-Mobile Honeywell their There office no XXXX. also XXX,XXX other our GAAP for the This costs. be in Oregon new February our space $XXX,XXX of commence and rents down is will XXXX signed rent in property. at approximately XXXX. exercised five-year with TIs foot X% takes in February leased extension Consumer a in included XX-year expiring $XXX,XXX office a Glendale, over in increase transaction

we XXXX have and lease industrial office we expirations, other beyond, lease expirations where have in move that proactively resolved XXXX addressing outs. while the working Now both lease properties we majority of no and are to

our buyer. On sale which tenant to the and likely vacated in the Overland we for to XXXX, be through currently Connecticut of Re property lender Wallingford, if lease cannot the or Kansas to leased conveyed maturity continue we end our market a is find Park, to property recently office of side, Swiss or

a Looking ahead, remaining office Honeywell expirations extension, substantive we seven in XXXX. lease following have lease

continue Kansas discussed in to for other previous conveyed to if lender to is properties Re cannot sold two to find likely are also maturity tenants. Swiss expected buyer on be lease other the we our in which to calls, Missouri, we property market and a be or or City, As sale tenant their

the our current January that are property remaining one this on they expirations. in lease. have lease We we working property Houston, actively renewing their square the for known indicated the will [Reko] Texas properties, time. four XXXX begun not foot out we XX,XXX the be in move and have as tenant marking four at Of

for a discussions are Regarding in end expires Warehouse tenant of industrial lease we renewal our the expirations, is in who our active Rockford, lease our XXXX with Illinois property. at lease XXXX Jacobson

that no near market for Plymouth, We given as industrial for outs three of calls, the demand Carolina, previous year of continue these continues Carolina, on remain move and the discussed properties. end Duncan our all about in in each cases North particularly optimistic included potential lease facilities Indiana. strong Henderson, South value capturing we As to the or properties sale,

who to the facility now to we I renewal October financial a in discussions in expires foot our results. Ohio. XXXX, XXXX whose XXX,XXX discuss Streetsboro, turn will lease over Looking of begun square have for Pat, L'Oreal of of will call

Patrick Carroll

Thanks James.

of and market revenues gross attributable $X million were approximately $X diluted million same loss XXXX. was certain $XX The charges which million to $X.XX shareholders million difference for gains leases option compared time expired to revenues net increase or below million generated on of XXXX. for same or XXXX acceleration a approximately properties in shareholders $X.XX for revenue of to primarily compared the diluted revenue common had XXXX with relates timing in leases the to quarter approximately property common sales sales. of share $X.X of second by period and The recognized common properties. time common net the offset new renewal impairment the tenants We $XXX from income For for of acquisitions, attributable quarter per the and result in period due in to share on pre second the gross the primarily

XXXX. company FFO shareholders common FFO of $X.XX six compared $X.XX the was to diluted ended months to XX, in change. Memphis the quarter per vacancy share same result the increase and in period net The new the $X.XX the in ratio or We to payout was for for $X.XX was a was XXX,XXX when end decrease X.X% to the XX.X% the foot million. common subject attributable Dispositions facility. or diluted adjusted Same-store million months be up lease the new NOI our approximately in always Adjusted range sale is acquisitions at percentage property common diluted June percentage period to to first same $XX to in of company XXXX. range of XXXX, $XX quarter of relates million, Same-store quarter during this the expect to million was time our share XX.X% XXXX quarter The guidance XX%. a per common end income share for the $XXX At the approximately per on approximately $XX gain compared compared square six XXXX. industrial resulted time lease primarily of for leases.

the the retail the $XX.X $X.X out $X.X to impairment mortgage Re XXXX. who to to of value to on than for charges balance. recognized in comprising detailed As or efforts. of charges Missouri Kansas sale the primarily million during primarily operating on vacant million and and marketed leases expenses a $XX XX currently million Swiss million Property properties $X.X interest XX% properties for our properties. This $X.X million retail quarter being tenant relate we assets accelerating sell, were assets, for $XX for Swiss May of came the impairment $XX approximately reduction were sale Leasing non-recourse mortgage approximately in $XX million including properly currently analysis XXXX. second balloon retail January for disposition The two $X.X impairment City five lower period the estimated due same relates during XXXX. million improvements non-industrial approximately had resulted in property eight assets the a sold well our in that time The the our for asset a million the wrote million fair down discussed the than operating million of two expire in of four specifically office More conducted office given properties and contract were million included Re the to quarter. $X earlier, responsibilities We assets impairment under charges and costs in payment million million charges less quarter, quarter. of

in XXXX. approximately budgeted have [indiscernible] We $XX cost of remainder the million for

address and a was Although fees. quarter of to the this the second we subject were as quarter reduced in result compared is million expenses expirations This leasing to $X.X future decrease change dispositions. of approximately approximately second G&A of XXXX, of the primarily professional XXXX. XXX,XXX

to We million. $XX be expect G&A approximately our XXXX budget

weighted interest outstanding consolidated $X.X Our average held Taking coverage the of term of was of second of at operating at as is at the was our of XX/XX and comfortable with X.X rate sheet, quarter billion leverage our assets quarter. years. We weighted a the average including approximately costs. times on a agents. X.X goal $XXX focus debt held million lowering balance and sale with leverage cash end, sales end was times quarter exchange Fixed of remains to $XXX current very We simplify the to end due net with At cash end efforts. X.X EBITDA million remain increased at had the charge at adjusted operations primarily classified levels. cash quarter we approximately restricted, which to for look X.X% approximately debt had the

X.X%. at XX in proceeds. gross debt matures a in During quarter the weighted The of over available. a X.X% quarter brought total rate the acquisitions an borrowed million outstanding Michigan to Warren, quarter. resulted a in million revolving rate XXXX mortgage weighted million interest industrial and which years. the We end in at to credit $XX million of term during with the average during fixed November of loan financed facility approximately quarter, $XXX with This Borrowings of a facility end primarily on used interest our $XX quarter freezer slightly were fund to average $XXX we a

of Our of unencumbered price $X.XXX to ready [Audio quarter portion an the representing asset base question-and-answer as call. XX% approximately end during of billion Also of repurchased Gap]. per so of shares at we XXXX. approximately at XX, quarter, average June for $X.X comment the was at the the are time NOI our you further share. conduct common this the we XXX,XXX No

Operator

Thank you.

Capital We will Markets. question-and-answer first the question go from Instructions] ahead. begin of session. Please comes Our [Operator now Mailman Craig KeyBanc

Craig Mailman

this three I just quarter. start guys. Good on to morning, want the industrial acquisitions

thoughts kind of breakdown it, years the if curious cash two the and maybe rates Just of for you longer could the give versus us with at assets a shorter term cap one three the on of just on term with more be should deals for some provide acquisitions versus on what maybe look with broadly how it fuse? you and maybe industrial term a something differential us guys price

Brendan Mullinix

hard cap the I in And terms Sure. rate. unfortunately The to term Spectrum Brands generalize. contract I'd longer cap that we we'll earlier Beach long-term in which confidentiality the was in specifically say in in sole really our year, rate the in going it a guess two term, it's of for market investment. when assets terms is we Memphis property investment I acquired opportunities requires us. other better the versus from the X.XX% But investment speak as consider kind to the such shorter consideration, Edwardsville, more not returns, see Hamilton can that then of

Wilson Eglin

rents have cap below assets. maybe situation really lease, to rate longer comparable lease specific. market, it's On shorter we Craig, a Yes. the

hard very very, conclusion. So general to a draw

Patrick Carroll

and by increased X% in the The July July was following it about – in years. and X% the Right. by $X.XX Beach transaction, Hamilton rent increases it about X% next in

basis lease annual at going term addition escalations. substantial very attractive in So to shorter that in an

Craig Mailman

asset? market for that market What think rent do in is that you

Patrick Carroll

would that closer low I to or $X Xs. it's say

Craig Mailman

And more guess that same helpful. aid accelerating of broadly selling office just looking are the a past the curious and band picture, dividend your know thinking just doing in review time. just bigger to at the I kind and maybe total the of maybe leased term talked assets. of we’ve and That's guys where you repositioning sales in the Will kind of I Okay. I'm off about substantial portfolio a accelerated the longer and rip

Wilson Eglin

Well, estate. net as the lease working toward play close on said, we a being real to are on industrial transitioning portfolio pure we single-tenant

Our to on simply visibility we policies on contracts disclosure are based in have on what sell.

contract. have Clearly cautious to going will we're we on and of industrial dilutive. on of office selling is everyone. under are hard office conservative more be reinvesting out have So and until in But clarity transactions we dispositions assume that working either we and very or deleveraging the volume accelerating as update

not wanting but we've the more proceeding so been is to But just to class. dilution, able transitioning manage transition way of cautiously, a by And quickly asset all far one function it a to it private a by market available private also recognizes happens buyers. financing is very to the arbitrage that good right to there now and public being it's driven be seller's that to

point but and mid-teens to right probably taking effects there's REIT the should that and you're for a times trade that that So industrial nine dilution and the let’s we somewhere that that lease of the traded multiple expansion. face out think multiple transition, dilutive value we in

Craig Mailman

would what a to the just know coming is transaction of get where probability the just curious to package? or formally are you of I’m it you're fruition? we No, substantial to don't bigger someone have hired kind market you just discount. off guys down I trading a my – process kind guys not be there. dividend I'm at is a to in you gone bigger just rip agree I the as band-aid evaluating of know market and of us market? and that guys kind if why Have that's are quicker, point kind road reaction you cut, from what how due guys is already the of the the here. the downside curious Let

Wilson Eglin

We have are the of as the soon and of we we excess have disposable, in guidance with value given accelerating that that you that want with about said strategy the absolutes we the in as But now we’ll are market and transactions assets and we've agree again transition. well right to what deal disclose. the

Craig Mailman

thank Great, you.

Operator

Our next from comes question Evercore. of Sheila McGrath

Sheila McGrath

they well office the for portfolio eleven – I for and quarter assets active on mean that's you lease enhancing longer leases, we're part marketing value I imagine five all sale? those lease for the that extensions new on? are to pretty Are Yes, of sales extensions that you're pretty had years.

Wilson Eglin

we sometimes getting those a No for extension lease for sale. there was it property market gating a at particular looking properties, if a were item – putting on is the

One you of if shorter us you might vacancy the you renewal, the challenge portfolio in who's for is the are you have or a a of four-year an lease terms value shouldn't four sell a three monetizing to years. get building to going investor and that lease you is in have think and think

through work renewal we off as for a item the right, disposition a process basis. two I lease the marketing that might one on or stuff asset an you're So when get as we gating shorter say

Sheila McGrath

Okay, that's helpful.

remarks rather may some or you in to buildings does building? sell than just more Is mentioned tax situation decision? it when refinance make your the you’d drives some Just pricing, office it refinance of the prepared sense them, that what

Wilson Eglin

industrial cold in storage on mortgage standalone the one did a We portfolio. in facility quarter our

lease that and where secured financing asset financing we high used get would essentially opposed were could in where against and really that year, basis the XX-year per that we look market their it have Earlier strategy. we term. - this we just on financing some disposition and finance match were foot good hold. We where basis we assets as case in to a the thought support office to when So - activity continuing to so the an greater is at the buildings, changed funded

And Chemical investments the did that with So for asset third we in last was of finance higher we've mortgage transaction of we where the roughly were financing. think disposition in the them years, $XXX match the three a office supports Dow only side. one funded also on valuation XX-year two the We that done in million $XXX XX-year then million. likely were few asset where leases that

asset an for that years. know next year some we point you asset that's So help that now two will

So there sheet. leverage sell that drive of may to balance lot opportunity the of an and a

Sheila McGrath

– Okay. and industrial from would pure are that mixed question points any how forward us looking any data metrics then point and And that that play there change capital of could last of equal profile Shifting to more that for how international you like being expenditure office Lexington. give kind changes? in

Patrick Carroll

Pat. It’s Yes, Sheila.

look about to - outlay the I about the you six leasing look TI’s historically cash we've X industrial. If million only when to for first of in of office year, relate months relate done them commissions the it what XXX,XXX and

a of office So and remarks And again my is matter said industrial our office money relates prepared this significant. it's assets. in $XX I between to distinction that million when and exceedingly

the cost is the tenant the and much into doing re-tenanting improvements portfolio so So of office. than industrial cheaper

Sheila McGrath

Thank Okay. you. Great.

Operator

comes next Please Our question Wells from go Fargo. Todd Stender ahead. of

Todd Stender

there Hi, to Hamilton it’s like market catch were it with Brendan, asset with rent rents and back rent that. were above with sorry the go Beach into probably I'm then through expiration going sounds those thanks. some can the lease - rents market didn't the bumps And you again goes

Wilson Eglin

$X.XX is increase far when and a increase, there over XX and initially the Sure that in April beginning X% there place to next July $X.XX so following is X% in workout X%, were acquire three this $X.XX roughly tenant a July asset the years. be and so rents we the increase those

and with to had that just structuring we where yes the escalation were there ended. market are escalations agree original would they lease, the back So do

In where We like a market Xs. would be at think today. it that take would some three around terms to for we low of facility

Todd Stender

years last had long-term that's back ended. the Okay. couple or both a was shorter lease they these resigned just lease that Was a this that in term

Wilson Eglin

we… in longer-term originally signed a was XXXX It lease was that and

Todd Stender

cash will And there? rent down Materials want till one very Versum due you lease see wasn't like the had much. you coming to extension with win then roll Thank the XXXX, just but on that looks it

Wilson Eglin

was longer-term with ability slight their down facility. a paired was and it rent it the to the expand roll extension also for Yes,

expansion somewhat lab specialized a option have getting adding it So a an and to a longer-term lease on there. of facility space was was lot of

to longer-term thought a roll good strategy a the just lease So getting we solidify with asset. down to the minimal was

Todd Stender

theme term get> staying lease Okay. lease like just much you more that on how sounds did Honeywell Thanks. the rental stepped And the rate renewed, up

Wilson Eglin

We years. got additional five an

Todd Stender

And then put what’s pretty the asset mortgage the Pat, $XX the proceeds million? look? did LTV on on a amount How good like looks you that in of Michigan Warren,

Patrick Carroll

balloon well but was then it is XX, and not interest sixty now Yes, so you. right like about to only first the Thank close XX% several about right balloon foot, XXX so also All LTV. okay. years

Operator

next Our Guinee John question Stifel. comes from of ahead. go Please

John Guinee

Great.

Okay.

band So to an shifting when sort industrial rate need aid, victory. other get rate you that most ripping in the to industrial, do or to XX% order a you Is claim fair think number takes you XX% get of maybe you about there? can from finance likely to off a and

Wilson Eglin

fair That's John. number, a

be would it be success if like by year next feel could we year. there would we a end think I

at portfolio the that's The sort the of balance lease average we where of lease end much weighted the value. years outcome binary we where so determines a four is like feel now. success of is type long of and transition. term about term portfolio the is right lease term of would for that there and we think asset weighted average a liquid the had lot office In relatively quite market I of have XX% the it in of the roughly

it's the easy longer I of compared – to So maximizing to the balance say, relatively value leased portfolio. don't want assets, the I like in monetizing

think that's a lot those that accomplish So the end in lease we a we're work way that where that we still each shorter maximizes assets. next make value want and doing year that in through of sure to portfolio can proceeding of the But portfolio we in year.

John Guinee

Got it.

Okay.

impressive, that's aggressively. ripping off the So aid band

is – then if early, to the development business. with kind in but of do you platform suit clearly become maybe bit So this – you're go when build integrated practically to the a little the to

you then where business. – board, might board your Station industrial the an maybe a more to your be location in versus it do overall or different do a development retype a much is so you Penn want when also industrial You location which finance focused, is headquartered? be – have When

Wilson Eglin

Well have support I must help us exceptional implement sets objective. an business a with skill are say variety wide overall we of our strategy to board, and

are shrink So adding it management located in for been forward. don't York and I do personnel We our a group sure. the we change expensive And maybe Dallas, there and we've New is personnel also add But over place Having capital to certainly New principal here is we our there have that there team market expensive of contemplate also and and Texas. is a years York our any clearly going footprint an to asset important mindful standpoint of headquartered. from trying G&A a it's part deal be to an important place be headquartered having to us. more

John Guinee

Great.

Wilson Eglin

the have to out speaking say come committed would on understand transactions promise and to we that everyone to John. Y us it, we're prefer call just like The them. under we before Z, We and X, but to about transition, publicly contract do

John Guinee

Duke I Rexford a be in you or it or who do would think described Stag role model or you're for a looking model, couple be role good you be a would to years? think or

Wilson Eglin

companies there, There are I many to good industrial want pick out John. wouldn’t one.

John Guinee

thanks. Okay,

Operator

next William Development Segal go Instructions] Association. question [Operator of comes ahead. Please Our from

William Segal

that you properties building and of as industrial I suit. opposed are seeing the world? and else you're you're in you, that older trends type the moving to and modern industrial, building, – doing to What anything you Thank industrial, built a to Brendan you've are in as got building XX-year newer old guess maybe to James Maybe ceiling Will. some higher industrial

Brendan Mullinix

can of one participation is from I think I probably take to a our Well, see recent larger lot that mean acquisitions Brendan. we is This the of demand things you continue that users. from

then facilities more the specs many go all that another XX-foot Really in and of as parking significant of trailer buildings in requirement. board with it the along we’re depends terms seeing types to certainly. are employee the over parking larger And there user specs, e-commerce part, has – So it's referenced users. larger certainly height certain high building then you on for significant clear

variety of are for distribution. that there's that build modern So Class well A a A pretty standard Class understood

William Segal

much. you very Thank

Operator

question from follow-up Sheila is Evercore. ahead. next Our a Please McGrath of go

Sheila McGrath

assets? the Yes, net that be confirm multi-tenant industrial I Is – clarify and of REITs asset wanted focus and out I are do mentioned, industrial many management of that intensive longer-term you going on the John to Lexington there acquisition require strategy? much to to still the on more lease that more focused just just other market. want

Wilson Eglin

we're with is strategy from on to with John when our lease The term that and asked going term net years lease a the to a we industrial. industrial become we're single portfolio weighted-average but knitting. not focused to now an Right our change in We're meaningfully that do one. weighted-average tenant stay about, we question XX sort have standpoint. companies It Yes, of stick going trade developer? better, interesting going our of lease

builders. I we're clients industrial away merchant more are think that office our single-tenant the transition private on thing to primarily from focused and is

to the So them we becoming them. weigh which of have execute with strategy, would to capital continuing versus provide value to competitor to then a our

once net it and tenant from no be every to tenant purchase for while just radical one we're industrial space smaller with of change on one. is our a may lease focus we our clear in that single-tenant XX% away another not orientation. a Sheila, no, lease building net a So But the for maybe be

Sheila McGrath

the maybe to how consider industrial considerations the be will there if question Are assets that you is it have well? determined pay more mostly to will debt? into Pat. contemplate one And be as tax XXXX it this be or will sales, proceeds down you for office When some Okay.

Patrick Carroll

of implications consider need It always the XXXX we the do the that money. will anything to be Well, extent extent that that to tax feel to we we we we XXXX don't. the

down will the Sheila. a We revolver by pay case But shorter the then from go and term it's case basis there. on

Sheila McGrath

having going try dividend a But would it to – are better way I ask to you is guess a avoid special to it?

Patrick Carroll

special not contemplating Well right we’re now dividend. a

Sheila McGrath

right. all Okay, you. Thank

Operator

Our ahead. next go John from Ladenburg Please Massocca of Thalmann. comes question

Brandon Travis

or spending of million, related John. one on Travis Brandon is that The the most still be is this $XX $XX [indiscernible] going Hi, is earlier? update for to million given to expected the

Patrick Carroll

million, million remainder projected which of year will $XX have be for we the total. the Well, in $XX is

Brandon Travis

lease the for you much on Technologies And long-term core certainly long of asset the [indiscernible] industrial asset as guys? is a comments Okay. – World term investment One that

Wilson Eglin

It’s is long-term a asset. a square asset. industrial footage large It

been we've in with we're discussions that a price at comfortable very However, it.

So we for sale. held as put it

Brandon Travis

Thank you. End of Q&A

Operator

This remarks. concludes back conference over would the to any our session. Eglin, question-and-answer to I CEO. Wil Sir, closing turn like

Wilson Eglin

Thank Please like visit you to or everyone this morning. website quarterly Gentry us contact materials. joining you, would our our receive for if Heather

or the me management any addition, may have day members of In great other Thank you, with everyone. contact senior and questions. a you

Operator

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

may disconnect. You now

LXP Industrial Trust (LXP) 8 Aug 182018 Q2 Earnings call transcript