LXP - Earnings call transcript Q4 2018

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Operator

Good day, and welcome to the Lexington Realty Trust Fourth Quarter Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Heather Gentry, Investor Relations. Please go ahead.

Heather Gentry

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

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

Wilson Eglin

marking October milestone public as Lexington our good a celebrated morning, in Thanks a company. everyone. Heather, XXth and memorable anniversary

years, which transition been was Our extremely all net And of strategy single positive. to and number has we a we've us XXXX a REIT. being implemented recent industrial are tenant as believe in least refined pivotal for changes of we

are distribution next and acquisitions enthusiastic billion general gears, our to efforts. about purpose execution in our XX were centers. forward totaled the year fully the looking other years pleased exceeded the we continuing $XXX $X beyond. and repositioning prospects well-located engaged We and dispositions non-core year across our Shifting board last warehouse of and Office and are are for million with

to a increased result, total industrial the we end at book our from of exposure As gross XXXX. approximately value XX% of XX%

adding in we on as quality both have warehouse and secondary portfolio. concentrated high have grown primary markets distribution industrial our We assets

both now Furthermore, warehouse distribution and the basis top industrial US the million been located the XX% on and all which years, XX facilities. last XX added GAAP feet within revenue over have our cash current square portfolio most to the having has footage industrial is markets. in of of investors and market square among active portfolio industrial substantially of been product We the three the almost

well-capitalized tenant long-term single a industrial, quality, real fundamentals, As for strong sector with high in our appetite investor compelling remains real estate. estate a

marketplace, continue although landscape to attractive in opportunities find the competitive. We the remains industrial

office leasing in continuing more to and acquisition industrial our the by detail office this us staying of shortly. distribution market potential higher. user goal. e-commerce, and approximately favorable will discuss exceptionally sale sales is have that population within from or industrial trends million the number speaking, job flat. holdings. similar Brendan opportunities approximately emphasis There Supplementing growth. Generally the XXXX million the are assets of context a in buyer intend in opportunities quality principal development to XXXX upgrading closer are properties relatively with our active and assets main more about and Etna feet warehouse demand, X% we have transactions We in interest our Park disposition industrial markets plan which our more goal, acquiring saw X cash and in while move increasing to will call. project build-to-suit roughly primarily move to industrial on our market detail XX or will square disposition $XXX remain will has we talk sub completing cash near the of Lara in other well-priced arise our marketing to general selling for rent in Columbus, purpose later portfolio and non-core Ohio, of moderate Our To is $XXX and in rents million or supported office volume

addressed We discuss through will James about have currently leasing lease thirds later sale. has And continued or in in leasing for our be two to extensions to more been expected the this be efforts explorations. XXXX or is proactive call. on of rollover

asset share. the brought shareholder During price an between of flexibility share we the circumstances. at and X price view disconnect of useful tool in XXXX activity augment shares our repurchase of value our additional common the average X.X repurchase repurchased to total certain Board and shares average million per million volatility, in $X.XX November remains to approximately advantage took the price during authorization us approved share $X.XX quarter, The at to an million take a provided quarter. our advantage of market value share, XX net per share share under In of repurchase Trustees by which

our strong exceptionally sale recent levered during low is substantial us of Leverage X.X keep EBITDA. on fluctuate pay a portfolio year in leverage to but and net times comparison announced may quarters. purchases, we sheet expect fourth to the ended opportunity to sales been. depending debt to the office the debt of third We levels year both balance off the we the in ever adjusted in from timing September and Cash and years. has proceeds provided it amount the best arguably the Our

While needed opportunities be to as we capacity proceeds, future on and that funded largely flexibility will asset may from arise. capitalize have purchases sheet disposition balance

our industrial reinvestment Turning income. in selling release generated the non-core adjusted range dividend in share, reposition decline long-term earnings other cash provide our company to share, diluted and FFO flows morning capital XXXX of sales results, will connection share. and had setting line for board's of XXXX ratio FFO a Adjusted for company will company taxable was the is level we relation company share the considerably net certainty with year capital per interim was XXXX be we which $X.XX from going assets, new of income REIT common we to as our rate company common share. portfolio and the business. the adjusted forward. lease payout diluted in financial and prudent enhance of per FFO factoring per dilution to capital slightly projected and common in over FFO still all diluted also transition diluted to per announced tenant In $X.XX can the time office allows profile, which dividend opportunity believe adjusted free allow quarter, guidance. greater of reinvest better our fourth expect anticipated. with leasing be today, our In the dilution valuation. costs we announced of than $X.XX conservative We common new to The better expected approach diluted single is guidance our retained We per we to our cash $X.XX in net will This asset estimated a favorable growth for from which reflected dividend this for annual which earnings The more the to common in $X.XX is should in plenty after more rate into expenditures and flow. $X.XX

and we to and in net to earnings target us achieve construct. to portfolio our closer forward consistent asset value As look to We work required doing growth. move look the XXXX sustainable

dispose strategy non-core office Our attention with our designed value single on of business plan other industrial and focus been to tenant balancing assets case. every has desire to while in to our maximizing appropriate

results investments, the to and turn some spend We financial I'll detail. will more time over investments. discuss Brendon now reviewing to in call dispositions, leasing,

Brendan Mullinix

in totaled cap and period $XXX activity Will. Thanks, with purchase two facilities average of the warehouse investment for of one by on at year X.X% quarter fourth cash $XXX rent XXXX a and a the successful of completed million with our cash purchases. We X.X% the impacted free rate acquisitions these rates GAAP recent Including million. cap respectively,

included primary principal with aligned all located of and warehouse distribution quarter strategy Our purchases markets. quality XXXX owning acquisitions, business are well facilities in both fourth high secondary our

Class stalls, which and The XX Buffalo, growth. growing A last throughout submarkets. lighting $XX Mills. The facility well pet doors, clear trailer rental annual one is the XXX% for property truck fourth at food on we LED distributor located seven foot the producer square spoke XXX,XXX foot X.X% constructed attractive is and of closely $X.XX is industrial about more foot and quarter's dock closed facility per a square General quarter Looking Phoenix, to heights, newly million rate leased An division Blue average rental of we of years parking activity, courts. call. Arizona's fastest concrete facility within The on distribution includes handful features

for Richmond, transaction The facilities credit a market submarket critical use low tenants of market X annual of We for of tenants per property warehouse US industrial property $X.XX years. square within positive the the situated it's experiencing complex leased vacancy. including foot the general a four X.X% A of fundamentals flexibility plant. like with Richmond reasons including currently appeal the which bumps. Class This Virginia XX in a Philip for lease long-term proximity other acquired we to are by to and Additionally, close warehouse million future to us Morris rent tenancy, foot starting square host that consists in industrial mission the is

Class facility for Georgia, to a MSA of quarter five years as A located to in in years. total Following CALSTAR additional Footwear of foot two an the XXX,XXX included the for submarket foot LaCrosse the warehouse This square square well million. we seven facility aggregate $XX leased approximately as popular end, distribution facilities approximately Indianapolis, acquired for McDonough, leased XXX,XXX Atlanta

million on Kohl's January equates for XXXX the lease annually parcel. the for CPI. for $X.X The allocated an Ground a provides by The X% to ground million. cost escalates a venture of and at in deep relates Kohl's stores. XX As has joint Ohio from the million the X.X entered venture, long-term with into square the ground center parcel of our now foot joint build-to-suit acquired department quarter construction Kohl's we fulfillment a distribution of a commenced $XX.X of and purchase the during a option on greater lease land initial acre rent to purchase X% yield price it

we prefer X.X the and million While which still the was park. for as remains underway the $X.X excellent long-term million of our square recoups execution land the of retain feet development the and the it up consists is would the entire of develop. available investment, There park allow than to to to opportunity work a for investment initial more sell of site. infrastructure of industrial balance Phase to will currently the land II

hope interested continues, opportunity to As In have in yields. development tenants on we the as we're landlord. other our general, to may with where is ventures the development parcels future remaining like the this higher owner build and work produce out

agreed August connection premises fund expansion additional million Subsequent Freezer thereafter. We X.XX% at for facility The and square expansion of expansion will the Richland, its foot a to provide other of Preferred our transactions Preferred's Washington. with our being type price years locations. client foot we process the the completed XXXX. cold in exploring committed square Sales. approximately XXX,XXX In Initial to rent lease facility purchase Preferred five space similar for to $X the by Lamb be to to for freezer will escalate is cash Freezer Weston expansion to XXX,XXX existing storage in annually entire extend X% at the quarter, the worth are by

credit million $XX a Following subsidiary the rent and facility aggregate who to approximately was Weston the cash the of replace will for our expansion as X.XX% Sales Land Holdings will cost. of or ConAgra Lamb parent Weston company ConAgra total support. annual be

is expansion activity, future industrial expect in although be marketplace, of competitive. We opportunities our pricing there the this of remains to shortage the of In November completed the investment in context no year.

have we forward trends. by years Lara supported dispositions. that are includes South and to focus strong we the and of I'll investments a over fundamentals purchased Our Midwest to demographic markets and are what to where a We now pricing. turn that be presence this to pipeline healthy call other discuss tend have active market markets the number year with recent in with on comparable similar continued

Lara Johnson

cash to a Needless by gross say, the office generally sustainability stability flows weighted office billion $XX and efforts million very GAAP higher assets. with XX%, combined our X.X% Express of quarter office property $XXX Thanks, consisting of will approximately We allows million average our consolidated Brendan. The properties years and consisted its the volume to value and capital XXXX rounded industrial costs. just This annualized lease of represented and disposition exposure cap of XXXX, and we year average disposition dispositions in significantly us with from successful on $XXX the out on revenue NOI expect our growth term six X.X% benefit efforts Tennessee. continue assets, relative industrial of Federal sales a These execute of and Fourth to forward. and with overall rates our leasing of to increased including believe retail two to approximately this and totaled quarter year and only sales strategy. to will compared purchases to exposure remaining $X.X enhance flow, consistent repositioning of at basis. leasing primarily of three were In XX approximately book both million in our a respectively. totaling going approximately activity office Memphis, context cash robust million efforts business with we ago investment, decrease and cash

years. options while portfolio sales asset maximizing plan of to in coming Thereafter, non-core the our current will be remaining with value series the prudently is objective all considered, of sell a over individual the

a Chemical a plan of the and sale of mid along sales Our of Texas, a cap of we of of and Dow is mix Jackson, XXXX Lake than other entirety outcomes. market with potential XXXX which XXXX Complex of average our plan lease terms the short, this our sale pricing will contemplates portion in XXXX disposition plan. significant comparable our quarter affect represents disposition or fourth properties, long-term favorable rate. timing overall comprised But The timing conditions course of composition in be to the and of our to more and expect

minded strong from office if we capitalizing pricing. assets. mentioned earlier, But on selling principle efficiently industrial exceptionally focus and Will we As remain our open interest unique remains market on opportunities our benefit increased to can

XX% the For investment built plan this asset the quarter assets $XX majority instance, market. for of in the compositions, approximately in currently year properties of in XXXX, sold The we million cost to and first an industrial generate we to than being our either prepared up in on or gains sale could for the marketing are tenant basis. XXXX the market $XX more of timing XXXX our taxable million. Subject we are or to

special distribution. We to a will complete as gains defer to exchange alternative to an transactions endeavor those XXXX

ready disposition our transition. closer over and who turn We looking portfolio call the are moving for leasing. that update James to are on an on provide completing the front I'll another forward to With can busy to year

James Dudley

leased under We X.X million bringing feet volume approximately Laura. X fourth little square million leasing during Thanks, the quarter square to XXXX feet. a

in and saw of continue the respectively deal we role increase duration we included as X.X the a X% to purchases lease of last some and more Also, to as quarter, quarter. a and by compared Kansas We was Overland shorter release address approximately primarily activity quarter, rent and This Teasdale from the XX.X% portfolio The positive weighted last had property industrial Swiss quarter our for extended the fourth portfolio property X.X and We a lease were proactively vacancy. to quarter. expiration in fourth the term primarily decrease compared we X% see X% in assets. purchased non-renewals. XXXX. the GAAP to lease quarter grew result increase recently two extensions cash quarter of recently upcoming And cash Park, term at end. lease on good driven to during in years leased and Our by third to pleased this quarter years was discussed rents to average leased industrial industrial sale Foods. the

cash in by year a We seven increased property a extension foot Knoxville, XX,XXX Tennessee, through X% rent to for also office Caremark. lease square leased

renewed TI's, cash Following quarter Rockford, signed with also we rents Owens industrial Corning lease at their end, a Jacobson extension which we six XX%. year raised our and no in increases and properties costs. Warehouse for Illinois, property by rental in leases our or Ohio, quarter after at both transactions XXX,XXX Hebron, properties resulted cash with leasing foot at XXX,XXX square X% which in

remaining currently sales on working most cases. lease are XXXX we extensions our expirations, in For for

On a most a whose lease with expires lease sale but substantial long-term This down the in the this office previous of will support Lenexa, Quest roll likely side, we in in Diagnostics, in are context a October value a the help of rent, extension balance. T-Mobile Kansas, negotiating year. above from debt of will subtenant result lease

Alstom Power we with at expired contract under sold end our market lease for January. Virginia property, our Midlothian, Additionally, to and to the is building leases be Houston Ricoh or office continue whose of sale in

set are lease vacate October to proactively renew building. office in will their the a in They expected of Wiley, we our property This primary not sale. the to the side, have decided the year. expire Indianapolis, Indiana portion we or marketing lease lease Office XXX,XXX Finally, the on space tenant and this is for lease property. most of to had square John foot And likely

is facility foot in Moving on at a this Streetsboro, October. XXX,XXX continue extension work Ohio, lease expirations, to expire XXXX we on to square lease whose Industrial set our L'Oreal to with

vacate end facilities occupies of two XXXX terms in at to Finally December and the we January their Laurens, Moody, and in who South XXXX, respectively. lease Alabama Carolina expect Michelin

Although Greer, will industrial have Carolina, had be absorb processes in Laurens of in formally properties, which they're quite process bit the on square will new location. the not and footage already South of our indicated likely facilities. marketing they a at out, both The began they of have two moving facility we building the a activity

Moving will Swiss as lease Overland is during Kansas the Re sale foreclosure property and expectation quarter, our vacancies the in in the noted. expired with fourth office be previously conveyed on Park, to

currently with of Swiss value the a it lease negotiating As are balance. long-term executed subtenant. other the we above result property, it if We Re in would a relates to office debt believe the

of as North Carolina in Additionally, our expected when renew not their they Plymouth, the industrial tenants of Henderson, leases did two the quarter. fourth of Indiana properties the expired end at and

as percentage industrial represents impacted of While square overall vacancy footage portfolio has recent XXXX revenue. of it a our consolidated only occupancy, X% rental

continue the to In or turn now will most to properties by market encouraging industrial are sale results. cases, four our given hopeful continued we are We and call I for the financial Pat discuss lease. that users. will With industrial who positive seeing outcomes, demand for activity vacant over

Patrick Carroll

James. Thanks,

revenues XXXX. gross in property the venture same the quarter, million The decrease office joint for slightly time of $XX by period gross totaled mostly the with million fourth offset revenues For sales, to acquisitions. property $XXX notably compared was most sale, related

million will increased of which offset from which slight shareholder XXXX. an attributable market properties at shareholders full compared the $X.XX Full common a For year and common $XX company increase sales. accretion for expired, XXXX. per period $XX range per by and $XXX to for $XX sales of acceleration gross for share lease the renewal end for of activity, compared below net to $X.XX decrease sale. to to XXXX, for quarter change. option share attributable related in in fourth to per or common a certain activities. year common diluted $XX attributable share, the common leases of of FFO $X.XX primarily of $X.XX guidance Net driver fourth new $XXX decrease the XXXX. investment income The expected period $X.XX million attributable the provided the to to shareholders all income diluted diluted acquisition million full diluted Adjusted to diluted common of or always net tenants shareholders common was asset in the year The diluted million for was time or Net result million income or million calendar common same $XX million per attributable $XXX to was for share, range common common revenues or approximately disposition income The this for $X.XX was common million increase XXXX. to per leverage. and or share or share, year XXXX. to per per company We The $XXX FFO was diluted lower was compared common $X.XX to per million gains quarter was this million subject $X.XX share the common compared morning time $X.XX on $X.XX totaled share $XXX XXXX This share. primary diluted adjusted diluted or same per is

year and to We and range approximately office company to reflects The beginning the when of gain considerable $XX relate expenses store sale. is in today completed to sales. large the same compared and in in XXX to leased ends gains FFO also to X.X% vacant the our cap to The XX.X%, the previously impact dispositions $XXX lower rates, XXXX sales XXXX guidance resulted at vacancies. period full to fourth are full in aggregate slightly activity resulted XXXX downward. guidance $X.XX on announced range the was for differences and XXXX. disposition share. initial year-end million quarter was This of down to decrease This assumes acquisition volume, quarter in gains primarily and of compared Dispositions of attributable store transactions Same the discussed. time related quarter. was low year operating mostly five adjusted diluted XXXX At common re-leased. million properties our XXXX during compared million timing This third are in transaction or a year-end XXXX. not of NOI percentage purchases property the XXXX per and portfolio XX.X% of $X.XX sale also primary the guidance high Property same of end trend on

the quarter XXXX. expenses million, period operating million $X same than for fourth time roughly For the lower $XX in were

this responsibilities. $XX year for decrease dependent XXXX. quarter on $X were full tenanted including will of from full to year million, million to Estimated variety of vacant primarily XXXX. XXXX, Leasing compared costs a be to XXXX. operating costs $XX to decrease the which approximately was had improvements quarter, year year For million of to approximately in about properties $XX $X.X this when fourth professional number in full were and XXXX million bringing although The million expenses $XX reduced resulted further G&A the to TIs the year property We primarily multi related $X.X expense is in factors, compared expenses change office sales believe less from compared expenses approximately quarter, reduction full $X decrease G&A and the to and we tenant of million, leasing as simplify were transaction XXXXare this year the continue cost million. The through budgeted to for we for and fourth XXXX operations $XX.X the for subject fees. million, operating costs when sale and volumes. dispositions. a were million full lower trend

range within to is $XX million. $XX a G&A million estimate preliminary of of Our XXXX

we of at Now quarter $XXX moving balance cash. the end million to had on sheet,

low billion assets sales debt consolidated $XX million At X.X and quarter X.X of for term average to was in Fixed a coverage our was interest X.X X.X a efforts. had our and approximately held EBITDA also conjunction with net of debt times end. rate leverage approximately times sale adjusted We was at remained average weighted quarter approximately charge outstanding end with X% weighted years. as

applicable and in of narrow will the loan during remaining approximately million to Subsequent credit term term the our the term were to million revolver. February extended EBITDA and debt of We on reduced XXXX of revolving X.X operate the revolver for quarter end, quarter replaced non-recourse paid five net the credit times the agreement our mortgage on We XXXX. loans the XXX debt. within rates XXXX we expect we both a and to the our satisfied facility adjusted loans XXXX maturity band margin and

Before to but statement note expect XX delay flows. Will, within wanted standards is a due the the that in to SECs to two require call back The our I day anticipate I turn retrospective grace delay the file of XXXX cash the XX-K, XXXX filing of period. we to to accounting that adoption adjustment

that statement cash firms to presentation changes and we audit pending require in XXXX to is Given switched XXXX of the flows review.

a felt we of has While this in only it no it this items. as believe change cash time, our inform results we the prudent is at you on to impact XXXX operating presentation line the flow

Wilson Eglin

Thanks, Pat.

due Roskind, started an our Robert for month. Chairman remiss so, to that as employee doing our Robert talent and longtime in and organization, none forward. going XXXX not we're people have call be positions be so that here franchise success this in his depth retired interest management personal and of and mention us professional we talent the for in which opening would in Q&A, for our generosity, largely would courage to it's morning. tolerance Before and I development Further, much not us his last

a For call. that parties are inside to many so owe and and Robert, the we ready you outside hearty of question-and-answer other sincere portion reasons, all of conduct you. for thank the this Lexington, operator, and interested With

Operator

from session. Please at Oxford question question-and-answer Our comes Davidson. first Instructions] the begin D.A. now We'll you. [Operator go ahead. Barry Thank

Barry Oxford

at but from here, stock it's Will, you guys. price about in know you know buyback versus calculations set looks still thanks share your least when Great, in think attractive. buying small pretty I assets XXXX, here run my

those at So about you're share still decisions? table, you kind how sitting kind price beyond around of of that this making even do when buybacks think the

Wilson Eglin

meaningfully we use time, about last the proved so disconnected try during we patient is, mean value, the share volatility like powder from felt good and a million share our I have of very over there the and the where for our price was what quite and buyback philosophy shares was year dry market NAV. we price buyback think the to bit do market of in a several to our very each bottom that want if company, but is shares capital. XX the There to was from to year at times Yeah, us were of are active be meaningfully We times be were for the NAV keep very when decapitalize those we going of in good authorization. we're disconnected the

Barry Oxford

then the I And line item should we about guess, how joint controlling a accounting that venture question, thanks. think going forward? more great, not adjustment, micro an Great, interest question,

Patrick Carroll

the is NNM. the have Well, with venture we item that main on joint obviously,

of So this quarter was it. a full quarter

So good I think you think venture rate obviously, to joint properties sells could change could rate to from that, the that I it the run obviously use use, a because it's this of quarter. a but extent very run

Barry Oxford

Great, Thanks, thanks much. so guys. floor. yield the I'll

Wilson Eglin

Thanks Barry.

Operator

next of go Evercore comes question Our from Sheila McGrath ISI. ahead. Please

Sheila McGrath

prior cash up you years, how the this is now, expect about was to much outlook for year shaping this year and Yes. morning. Good wondering versus new if dividend the you could the expenditures industrial retain focus? talk with I how with policy capital

Wilson Eglin

that's guidance, going a million $XX $XX forward of standpoint take straight going to more look properties AFO of and a office transition million - tail to going rents were of million and be you XX from it as Sheila, our if - FFO the of off the are about CapEx that industrial assets. our we guidance million, excuse XX Hey, me at line this greatly about cash to year to

million in and and million taxable drastically dividend will years would $X the out anywhere in cash years at of down us significant going even I $XX the $X.XX TI amount income number XX from drop of that million setting that forward, the expect because to retain five a So drop the flow going that enable to a over in forward the period. year commitments of future

Sheila McGrath

delta industrial kind for you wondering acquisition development? talk today. industrial the And suit and so great. or capital about then mix acquisition in straight forward versus targeting could There's Okay, was rates will I be if much market deals much how of the cap

Brendan Mullinix

still lot sector. is out, Well, the highly capital of the there's competitive, market there a you remains chasing as pointed

I time stay fairly they think with were year. at our last will same expectation where that is cap that rates steady the

expect in would - to as did invest cap to we our So XXXX. continue we rates

put would five the most six and range active five half and between in us between that probably so a And of and anywhere and six.

Sheila McGrath

Okay, year-end XXXX. last in at you question, mix gross end great. by think the looks you What think do And of Will assets were that that XX% of you I mentioned like industrial.

Wilson Eglin

of of this a number outcome Sheila, because I for mean, hard derivative it's volume to year. peg so year-end specific is acquisition much that

popping year-end more we I down on a around And transition prices mentioned at be are way acquisitions industrial as those as think But there more to year, closed how have some our capitalizing that a minded we there, we and bit. this want on little about we of able as of but we make the a be as we'll we bit may focused that be Where industrial through to fast don't into said, think eye continuing function can sell I opportunities. things will, will make to sorts we're as are some find. many to what we transition, little that, more can. Lara clarity as properties slow opportunity good be perhaps

Sheila McGrath

Okay, great, thank you.

Operator

comes Mailman go question next ahead. Craig KeyBanc Our Capital of Please from Markets.

Craig Mailman

layered or this, 'XX, have a think have million XXX into missed XXX but of kind for guys I million apologies of guys do to disposed the how you the timing do what you guidance? kind Hey is

Lara Johnson

will year. those as a and the our scheduled a quarter, I weight Craig we - property, mentioned for dispositions, for one remainder This roll heavy throughout completed with we already fourth to complete the fourth is we've Chemical Dow to throughout Johnson, have year. of way the for the the those but by expect of those We'll the Lara and pipeline quarter, continue the candidate roll

Craig Mailman

guys into kind reset then recycle give too rate maybe cap as helpful. guys without act cushion you out running does And of kind sell I higher how lower mean, of that rate balancing of continue here. maybe issues the to into just some assets kind industrial on look much into many of how That's does you some here? cap XXXX that dividend to

Wilson Eglin

from with and associated the all can the still portfolio repositioning We dilution all coverage. sales ample have absorb

Craig Mailman

Okay. That's guys. for me. it Thanks,

Wilson Eglin

you. Thank

Operator

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

John Guinee

guidance. 'XX, little nice Great, sound other hey Does way? you us more 'XX on quarter think Pat, Give trending quarter is do or 'XX, 'XX, color by way. right, the by the a this quarter

Patrick Carroll

what expect Guidance is that's never those We've don't roll quarterly guidance. from real - we we the we upon timing don't dependent given give - but spikes, give quarterly I guidance we not and it's any John. that all sales don't how of out. and

John Guinee

Great, thank you.

Operator

go of comes question Petersen Jon from next Please Our ahead. Jefferies.

Jon Petersen

Great, thanks.

guys rates what's XXXX, So cap think XXXX a said bit dispositions, versus probably Dow Chemical XXXX expect you I down. on that driving in little the be Lara lower to is the sale think I

kind Dow guys I Chemical the us and cap are and of building? to don't cap just some the with out can the help rates around look Chemical sort what like break thinking might you get framework of maybe So on Dow what rate if you without know building

Lara Johnson

Sure.

on and because line to Dow trade efforts do complete, So but want we we we we and don't be want course, to we the we XXXX think don't impact on of think than will timing that depends give But do both ultimately we the think Dow. where this without and sales there. in with or guidance will better composition, the marketing

Jon Petersen

rate it. low be we quarters so cap cap we should three a to think by the way do the I guess answer about expecting Okay, over is then and be higher the expecting, rates should next disposition

Wilson Eglin

Yes, that's correct.

Jon Petersen

it into is rate to we there's into downside in throughout XXXX of quarter fourth talking time And the on lower that the more And we XXXX, you kind floor longer trending by and XXXX about the that a then a XXXX? Pat, term, I get guess little imply, G&A, you're think the G&A? probably a or does hit run then floor is bit if

Patrick Carroll

when always it a I be just I think living it a wouldn't fees costly of go business. and transition professional but should a - always it it's takes think you a floor more indicative there's of up, with the - slight to into a and less mean, way but increase, operate going it's say industrial, mean, forward. might be I plateau I I but cost it's Well,

Jon Petersen

Right.

Okay. much. very Thank you

Operator

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

Wilson Eglin

Gentry morning. contact Thanks, contact our and day. Heather operator. Please you our or like as receive questions. you to We any have a visit appreciate quarterly this great if website everyone joining materials. me of us other may with Thanks or management members would senior And the again in addition, always,

Operator

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

disconnect. may now You

LXP Industrial Trust (LXP) 27 Feb 192018 Q4 Earnings call transcript