LXP - Earnings call transcript Q3 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Lexington Realty Trust's Third Quarter 2019 Earnings Conference Call and Webcast. [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 Realty Webcast. Lexington Quarter Conference XXXX Welcome Trust's and Call to Third The and at this and distributed a be earnings was release SEC the morning Investors and are on on furnished to the X-K. quarterly available both our in website www.lxp.com Form section will supplemental release the 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 however, are press time statements files and based expressed described these certain that actual implied assumptions, included earnings factors SEC to such including reasonable today's in believes Lexington's those cause release or by results -- those from Lexington could with the Lexington risks, differ on to from those statements. time, reports in that and materially law, by does Lexington forward-looking a not any update duty required as Except to statements. undertake

supplemental in release not all Any Beth Will. results. & directly all numerical Lara on focused I CFO; intended press cash references earnings Mullinix, available non-GAAP the performance, adjusted an diluted CEO; refer call will historical financial Eglin, and to to quarter unitholders a be basis. of company flows. Will Brendan measure position Executive funds measures Dudley, equity turn Presidents, Johnson On are as to to Boulerice, will over fully presenting and comparable individual the or provide to viewed and financial third to a Chairman performance or Lexington's reconciled from Operating on Vice of future financial James In today's package, most operations now commentary these company adjusted the measures quarterly and investment Lexington FFO holders has measure. documents GAAP disclosure call,

Wilson Eglin

good and everyone. Heather, Thanks, morning,

like strong, business our with dispositions Lexington. would also quarter and plan, areas successful highlight to our the that are important execution leasing of had of to X current future business only all not quarter. themes and contributing investments, I a to growth key we results solid to in were Third but

leased First, industrial industrial represented Substantial we remain of the our net high-quality on primarily profile. progress single-tenant end, and exposure our last our centers. made gross few improving focused warehouse REIT quarter at been portfolio And over has XX% book value. committed to becoming years on investment a distribution

We expect a this potential range XX% the timing swing to the being year-end, number XX% with fourth of to sale Chemical by Dow increase of quarter factor to property acquisitions. our and of office the

an from XX, that to diversified REIT I'd industrial October to as effective being the majority our derived within of a also reclassified industrial like assets. of from Lexington suite MSCI is REIT indices highlight their revenue

quarter investment million, the has to will close robust by and nearly disposition to a we date, continue primary on including our $XXX to under with to closing year-end. focus and subsequent business been another approximately plan. Second, as activity Investment activity be $XXX million execute totals contract

investments, including the these During XX million million $XXX to were Portfolio we fund shares proceeds Industrial closed the capital of approximately program E-Commerce and $XXX net transactions primarily offering in new The million. proceeds equity mid-September. ATM common our through an quarter, of for used we on Three-Property issued

successful We disposition of date, end XXXX our our Freezer sales end $XXX of at have initial closing with very includes million range the the the exceeded plan which low to Preferred the of facility of quarter.

sold higher at rates. acquired sale for and $XXX modestly reinvestment This $XXX million property and for provided the well-priced XXXX facilities we it As in distribution into cap us capital substantial with million. a warehouse refresher, for

of Dow our or We does will approach we with $XXX be this are of may plan high or purchaser close. our closing cannot for potential although up if the sale exceed range when If end in Dow end a year, discussions facility, million. we Chemical this XXXX certain disposition

to few next acquisitions inclusive the targeting we of of of $XXX to will year for years, we Dow, noncore of with million book other office will million are to over increase approximately our assets, likely continue remainder XXXX. the remaining We Over $XXX our and sales XXXX. next value XX% exposure industrial of XXXX year-end believe along gross sales, by dispose through year-end

maintain balance to adjusted intend end we Third, moderate sheet at a X.Xx. debt to with low Net quarter EBITDA to strong leverage. was

due raise still an While we maintaining ongoing quarterly sales leverage fluctuate timing proceeds purchases, We majority have balance acquisitions by sheet disposition to of interest be expect of will in and the industrial to funded take flexibility. That depending XXXX. amounts price. will through investments our our for opportunity on of time evidence to modest we that time, share from the property capital said, equity are markets activities to

provide are building by to costs. growth, portfolio for our supported we operating capital income and and industrial consistent lower both cash appreciation flows Finally,

are from growth as forward, With commencing consistent announcement a with an as initiatives with fourth each to mind, beginning quarter the expect increasing $X.XX per positioned dividend per improved XXXX dividend the $X.XX Board approval, grow today's These reflected shareholders announcement. are that these valuation. objectives going as company this should continue to to we in annual well XXXX. our be modest as make share in to share share, whole significant performance to our dividend to that believe improvements we we overall financial annualized operational by Subject quarter begin paid evidenced morning's dividend have January and the up in $X.XX

increasing guidance revised We a of low range we are to $X.XX by also announced our morning $X.XX to per end share. of this $X.XX XXXX range the that

more specifically With that, investments. turn call the I'll to over Brendan to talk about

Brendan Mullinix

Will. Thanks,

A X.X%, warehouse closing Three-Property the is for average consisted $XXX quarter, GAAP strong cap we a division and activity is Cincinnati recognized acquisition feature of constructed and recently some million This but million of properties a X typical well new modern considered within so Walmart of market Blue for and market properties X.X%. works of Cincinnati. third market established of Mills. and located foot, square new years. Buffalo, a X% X.X have to a portfolio This has us, it subsidiary E-Commerce a tenants a cash lease users. range including product The specs, X X.X all have continue momentum portfolio facilities. time Hayneedle, rates distribution and of generation because from logistics respectively. Amazon, for brands, Annual warehouse for and were X.X% of to another e-commerce at on term newer guarantors front All escalations on during the Class weighted-average We General The represent

facilities park acquired we a about for more excited lower labor West This portfolio close we strong its to property additional within closed As continue of these is and a properties as as Class of are nearly A and close due the annual reached and the established third X position Coast industrial $XX investment-grade the higher-priced an warehouse I-XX X the part to This its aggregate located the quarter are active purpose, distribution located A submarket escalations of credit XXXX. most pool escalations portfolio, tenancy industrial Subsequent submarket Inland approximately to be Greenville-Spartanburg warehouse first an very with on industrial the property in market million. second Greer end, our on has good Class Port. some which a growth portfolio, of has added Phoenix's properties rental markets. But of facility, assets is both to rental at our cost tenants X.X%. to quarter general have in were prospects, a X-property we during attractive is Annual alternative portfolio to X.X%. to with a XX%.

and investment X.X%, date, To million weighted-average XXXX cash volume at of respectively. and estimated rates totals GAAP X.X% $XXX cap

have close or on We approximately quarter in $XXX this the first remaining accepted close second approximately of of to is XXXX. to million of which million industrial expected the scheduled $XXX with year, offers properties,

reviewing last selectively the And also are $XXX We of explore some industrial opportunities. million development to investments other quarter, speculative discussed we over as market. in continued

turn over the Lara to to call discuss now dispositions. I'll

Lara Johnson

Thanks, activity substantial of made progress included disposing Brendan. in contributed our Strong the in the disposition during we've XXXX assets plan. disposition quarter to

GAAP to and of storage Preferred million we $XXX asset retail respectively. of NOI facility. sales $XX.X sold the million. quarter, the properties rates included noncore remaining cold Annualized properties, Freezer The approximately cap office at During on consolidated $XXX was two was quarter extremely cash five the Pricing sold is weighted-average assets during properties. X% X.X%, these and which, attractive the on of X sales attributable million and

During and million the office we also quarter, satisfied approximately properties nonrecourse debt. $XXX nonconsolidated of X proceeds sold for of million $XX gross

an GAAP of of joint contract To consolidated at consolidated and or venture cash $XXX $XXX approximately $XXX million date, accepted have assets approximately properties respectively million properties. and of weighted-average and We cap with rates X%, currently X% million offer. under disposed we have either of of

these of are sales all close not to expected year. this Although

for assets other several market actively to continue we addition, In sale.

disposition sale Dow office Our Chemical our building. XXXX currently contemplates the plan of

interest of received we expression have We that are an considering. off-market

market intend this to a sale should However, to quarter likely more the we this property not pursuant later XXXX. year the interest of first in or materialize,

we to ahead, comparison front this moderate on year. pricing expect disposition will active Looking XXXX, although to in in the remain activity and we

These our being based now indicated, year-end $XXX left leased industrial approximately properties closer portfolio, dispose Will net our move to XXX% million As we target between on noncore to XXXX. what's REIT. office sales of to of in $XXX and of sell to even single-tenant us a will expect million

who on will I'll turn update to that, With over James the call provide leasing. an

James Dudley

majority the during the executed lease of million several leased. square We made up X.X which the Thanks, Lara. feet extensions quarter,

quarter XX.X%. portfolio Georgia. overall slight compared vacancy This decrease stayed lease is in small we fairly to consistent industrial primarily have XX.X% when to Thomson, at Our the at last due

expirations our Our year-to-date we leasing industrial healthy the deal couple million lease XX% next of while have around leased. is years. remaining XX%, work X.X we lease done coming is is and total feet, square great of a the office over portfolio portfolio have very at due The volume

was was positive out X stripping XX, when down vacancy, the ended X.X% Same-store it XXXX. NOI X.X%. months September And for a

same-store As rates earnings call, of or rental last our vacancy. is on continued function to a largely negative following NOI office extensions lease market marking indicated

continue improve Our same-store to profile we our exposure. should reduce office growth NOI as

our base leases with industrial September rent generated of escalations. XX% XX, XXXX, is of in As our cash rent from portfolio

September months expire On of two X to Laurens, the during the end executed quarter our facility for XXXX. for subsequent now in we extended South another X quarter, X.X the the renewals and foot then and lease to square Michelin industrial was at months lease million extended Carolina, side,

a in resulted X% moving we to Michelin rate. view be had this development positive We a rental as XXXX. in base current out very January would the as anticipated, This increase

of prospects currently number are the a space. We to pursuing backfill

a We X-year our tenant is facility at executed also extension at occupying feet multi-tenant that XX,XXX square a Antioch with Tennessee.

side, now will prepare costs, we at in to rental with rate for and the we office Texas for TI the same Mission, extended market X sale. the years T-Mobile On property no

our lease extended Lewis through we January Additionally, Morgan with XXXX.

that it our X-year office any property, and announced Lewis modestly moving allowances central the decrease office options term. after business be Morgan time extended building property. will is was building term, TI to out If abatements. of which The next will year lease a to The value recall, rent you us new and maximize during their lease then increase term achieved the provides the extended of without all potential district lease explore or extended

expirations occupied or XXXX remaining later We our by lease. or Wiley anticipated and year. this is office occupied Power by our X close of to Our sale closed being are Indiana Virginia Midlothian, sale currently expected our have property property, on formerly Indianapolis, Alstom addressed John through

quarter under in to XX executed just value the term also property the sub as for and former years debt a we'll over end, tenant Kansas balance. now with a look property market the lease sale extended nonrecourse our the supports We for to direct subsequent Lenexa,

the we Boca moving have lease Raton, remaining And Looking we this office end would over Holdings can value February XXXX. worst-case achieve ahead sale. scenario, the the Florida lease property unless be of conveyed out X be balance to the in Faurecia the expiration. will in debt XXXX, to in in the at USA term lender,

also or pursuing is X a being remaining but currently side, On Moody, buyer, lease. lease expiration have for marketed the industrial several XXXX sale we leasing Alabama we currently prospects. which prospective We have facility, are in our

compared have, to on in leases as discussions although cases, many warehouse active a industrial renewals Moving tenants with to push On mode higher a rents are are are been extended. and as we to lease are to renew closer expiration distribution XXXX office cases, leases the note, much not many as often users. to tend actual in expirations, positive office able their renewal lease we in defensive

leasing As in spreads X% evidenced rents. industrial square quarter, leases extended, both the base feet on X.X the third increased of and million cash-based on approximately

some, little good others too a while visibility specifically, remaining early expirations more on tell. Looking XXXX at we the to have are seven a bit

facility, five rent in logistics We Preliminary a renewal, renewing are we Time high-demand go case. quickly. releasing currently is negotiating for not Columbus, XXXX Ohio, we this Florida fairly begun and discussions in with but had and that June in be will expiration, our with Tampa, anticipate post market, lease for the a up their renewal ODW will and expect year Mars Atlanta facility

facility are who a Mimeo negotiating Tennessee our XXXX. Memphis, through We sale currently to occupies September

Geodis Quickly industrial Unilever North whose promising user touching we Kentucky both at and XXXX, both buyer have visibility in believe yet, we Carolina. Henderson, clear don't expire in Owensboro, are facility in don't Statesville, prospect For leases until but square a North have our Carolina, vacancies, on we renewals. likely foot very December quite XXX,XXX believe

market Thomson, we been vacated that vacancy this feedback Initial facility We are sale hopeful lease. Georgia resolved are our industrial quickly. also recently or will and has for positive, currently marking be

will the Beth, who turn discuss over call results. that, to financial With now I will

Beth Boulerice

Thanks, James.

the $XXX $X.XX per common income shareholders or For diluted share common million third diluted per attributable $XX to share. net FFO million common was or quarter, adjusted was company $X.XX and

adjusted the end, of to us in quarter million is quarter capital allowing revenues of quarter at Our revenues in ratio the third growth to opportunities. for expenses quarter, balance tenant of of XXX% REIT. changes was million represented Gross our our quarter. expenses million In third XXXX. our $XXX ample were portfolio transition in XX.X% retain the $XX reduction gross result million reinvest XX% sheet $XX.X This payout FFO were to net to primarily a compared the company to operating a and G&A $X.X lease and property $X.X third the reimbursements million industrial becoming were single-tenant expenses. operating approximately Property in from were quarter.

G&A $XX within We million. range XXXX a $XX be million of expect to to

for anticipate costs tenant always the year. remainder is change and a in of due the additional including $X within to subject variety third of of improvements of the and timing million quarter, the Leasing the we $X of million the costs range approximately million were improvements. and $X a to This factors, completion

of At sheet end, shape. remains balance had Our $XXX excellent approximately cash. including we cash, restricted quarter in million

our our balance and we under for have During fully revolver the quarter, repaid currently $XXX available revolver use. million

until have discussed As quarter's $XXX so call, extended debt meaningful million on also term we XXXX, no our recently we last due loan to XXXX.

to anticipate a quarter debt lower proceeds end markets previous sales of quite X.Xx our at quarter given X.Xx. to this was our fund in borrowings sales. EBITDA, needed at Leverage balance net capital the in timing posture. acquisitions, Attractive adjusted transactions bit compared to leverage depending We conservative asset lower on fluctuations the to contributed figure in sheet

more years. outstanding a at approximately debt represented X% end. of billion, of was a end and quarter NOI Unencumbered $X.X consolidated term with rate portfolio Our interest approximately overall of X.X at weighted-average than our XX% weighted-average quarter

which we quarter, during equity markets million offering, $XXX.X Will net XX generated executed capital a previously, share on included common mentioned of This million. transactions. the As X proceeds

raised proceeds issued shares million. of X common under which million $XX.X program, net also ATM our We

of now these be million estimated transactions, average share diluted common XXX to is As our result weighted a shares. current count

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

Wilson Eglin

Beth. the will turn conduct the who to over Thanks, the operator portion I of call the now call. question-and-answer will

Operator

[Operator Instructions].

Our first Sheila from of ISI. comes Evercore question McGrath

Sheila McGrath

you tenant if The confidence if XXXX remaining together. in the was which a wondering the that all Cincinnati. was in portfolio the could And in was negotiated in in your acquisitions the about that quarter of were I asset? X talk expires

Brendan Mullinix

was portfolio That transaction marketed it's correct. fully. Sheila, It a single Sure, is a transaction, was Brendan. that

away case. part, about Buffalo shorter Blue in In distribution that's the of facility do term, of occupies market, couple Blue they about that services, but Indiana. in likelihood a lease Buffalo other buildings In the the The miles Blue Buffalo service the renewal requirements. a building we good terms of feel for manufacturing in XX

Sheila McGrath

Health that X.X%, going we X% then of forward? you And And was a should rate. the out those JV, extend Did strong the sales out seemed think how great. venture sales about like leases on on and yield of Okay, at dispositions on asset Atlantic office assets? the very the -- cap look

Lara Johnson

Johnson. Okay. It's Lara

absolutely selected thought those You're that attractive the at market venture. right power properties formation had the for we By we of were design, very strongest sale immediately after sold rates. cap the the that

in joint are So sale the among portfolio, assets as Atlantic those Denver well assets to as the Health the venture strongest X of the tenant.

said, and going assets, I So have we those managing that pricing primed But some as on are to forward, extensions the enhance the those. lease salability achieve far venture will were been for market. which sold thus joint on

Sheila McGrath

at million, your think on for where the then And expenditures. us quarter to total And $X just that should does the us Beth, CapEx how will outlook of you company? same $X in industrial remind shifting XXXX you great. at? to put million year the just just line the Okay, fourth in magnitude capital to that can us how just of gave for show about we item improve profile

Beth Boulerice

Sheila. Sure,

year, will $XX improvement that will as get you're somewhere as costs down. ahead, we the come look to for office into tenant we lease the industrial, the $XX come But -- in For and million and of right, out the to figure XXXX. the million

further. $XX million should then As for TIs future, of in and that XXXX. the now, million projecting And lease and somewhere per costs $XX even we're between come number down

Operator

question Guinee is Stifel. from next The John of

John Guinee

Can you me? hear

Wilson Eglin

We can

Beth Boulerice

Yes.

John Guinee

Sheila offer or of questions. great did a -- job all answer my

notice curiosity, XX books, is is your I'm Baltimore? curiosity a still is Light. what why XX on One just before, questions. So I didn't X surprised that in Light

James Dudley

structure ground in lease the parking across below the XXX from own Light Street. street We interest an a

John Guinee

position? lease ground that Okay. continue own a would reason is -- there a to And you

James Dudley

case, joint asset. as We We venture. of view actually own don't XXX% In the a a investment. it very that it's secure

John Guinee

Okay.

roll out move slight their doubling of them to and you a be squeezing would really down, the curiosity, just rent know though opposed going out second, to Why Morgan they're in can't roll there go And Okay. they Lewis, even then X years. rent anywhere? down, rent a really as because

James Dudley

Yes, in it was option. renewal the the language

renewal a we of have small there's to very that, even clause market. portion arbitration kind down further. can potentially to the frankly, the in scary go a situation it's the option So as find it comps, ran an it of downtown And

risk, worked of as and the We So that there party to either settled also process. going of was Morgan that risk. kind expose comps was thought some it didn't opposed kind Lewis, there to we so risk there the were a on they thought number arbitration against was through

John Guinee

Great.

of Okay. some or And it me based dividend And X% should guidance be increase. XXXX, if I'm X, like then dividend covered. then maybe on like X.X% dividend annual just your wrong. looks two, why a CapEx correct more versus a for increase fairly your well X%

Brendan Mullinix

having Well, the And extremely forward going flow when going strong that And this bias a forward. is profile you're the we well extremely John, covered. we it reinvest right, cash coverage. to growth business the lot retained improve of toward and a resized dividend did earlier year, with in

at be X.X% faster lots $X.XX But growth. is twin sustainable inflation. very flow, a rate point combined growth, a think right, of dividend with I toward coverage are for We in revisit having, think we that's that. -- perpetuity. desirable and the objectives sustainable of I may now, retained characteristic. cash of think future And certainly With there a above So view that's where the in the strong

Operator

of Jon The Petersen question from next Jefferies. is

Jonathan Petersen

Freezer other of offset Preferred kind if with with acquisitions Great. on could will of other or talk maybe the were gains dispositions, in I all more or how to obviously from a about capital this specifically, the losses you of guess. the gains the you -- dividend maybe kind of I'm lot curious much Maybe just dividend. to be there's that of able some year's sale, on stick

Wilson Eglin

we've there's that fully our to via gain in so any XXXX been gains capital exchange, distribution year's Yes, able payout. defer not expecting this

Jonathan Petersen

think maybe the guess, is how through think a offering this that where self-funded think plus dispositions, prices our acquisitions the into NAV stock quarter, and about ATM your And I at, you issued next equity decent year to pretty be I amount we the somewhere consensus then issuance. of and -- $XX seemed additional through despite around share. as a

from you acquisitions If incremental with acquisitions funding that you be to forward, So equity that. the your we still premium Or get going a -- do dispositions? to mostly with can? expect funded business think holds, should from about you because proceeds

Wilson Eglin

year, to next the have relation see is I makes higher having easier. price we'll mean, what share in to growth set opportunity a Well, NAV right?

marketplace, been as So -- has anything, we if but competitive the said, Jon, rate a it's been cap trend compression. where

we're not we'll There's to look the at it has. that it's wait have equity balance to other at. at the premium, a There's now that proposition an if to we we're -- argument, trade to and the trading of utilizing companies that point want out net capacity but and that So have averse to. when of could better some lease certainly we sheet premiums you see, sympathetic than argument view let an play that trade and bigger if certainly

Jonathan Petersen

Okay. All And X right. maybe That's helpful. more. just then

maybe just been expectations. You buyer the what gap competitive market. talked about in today was and cap of it's I curious, Brendan, rate terms seller about between years if versus could you in talk for recent expectations the

Brendan Mullinix

gap. a seller market, a a market competitive be I to don't there it's know and good is in. that mean, it's I a very

process, what so really that's pricing a competitive ticks And in so...

Jonathan Petersen

on seller on an people Do to in acquirer find obviously the tend Because the you view guys that the valuations? GAAP? you have are do a you much and market, agree same pretty

Lara Johnson

Yes.

a we're asset selling of On type different obviously the front, disposition we're acquiring. than

the So quality think the the I nature of of the disposition is it circumstances the duration lease, credit side, a market, different I really tenancy. on it asset, dependent is think set of on of and the

with markets, get seller. more for assets. credit. as when There available it's or say, the tougher, side, But office the disposition needless shorter good even is space, the for reasonably capital leases more more to longer-term the remote a you assets nature a the easily we're given So There it's to demand not be strong selling. of generalized on and seems in those into terms

Operator

of is The Wells Fargo. Stender from next Todd question

Todd Stender

cap that portfolio, maybe coming really rate -- cash get to Brendan. right the Did back I blended industrial buildings in X.X%. Was then the a about for Cincinnati? And was a

Brendan Mullinix

rate X%. cap The was cash approximately

Todd Stender

got X%, it.

Okay. assets, different got they all triple so In those you've are leases, X net?

Brendan Mullinix

net. Correct. all They're

Todd Stender

then I comments. building, Michelin just And heard looking Okay. at your the

it now there's like And But market So a is. well consolidate rent extension Any into going how a they comments what to you sounds into to quarter, new going lease does think were do current to what then the maybe your compare XXXX. last color from Michelin's do? of the facility.

Brendan Mullinix

Yes, sure.

So I think the plan is still to consolidate it in Greer.

I that think just some The of facility it's out delayed. into them of facility, just been new logistics moving getting and time. the many taking tires a it's

to what We with were we are there tenant, move the Xs. push replacement building, if tenant. end to but a the we hopeful a If should that multi more now comparable rate up and the it see be we is need maybe tenanting in into able facility planning to single them some it rate in may The to time, September. out longer, pretty takes we're for they stay ultimately

Todd Stender

end of at you by a industrial the on guess, value when All do of your is going revenue we been you'll XXXX? year-end were you on think that XXXX, but right. then guys That's a kind basis gross helpful. comments I And had basis I look basis, be, on revenue where by book tracking think you a where to be

Brendan Mullinix

XX%. trails little to bit, a There's plus or and do book we'll minus value It so. continue

Todd Stender

Okay.

that getting and your you're office. you're secured your proceeds, with deleveraging certainly disposition away from off been then meeting paying Just finally, a piece, there's debt natural

on Where all to where debt -- year ultimately like do -- cost where are things good a your lobbying you better planning where to these rating So out? according a maybe you agency. be? next does Are of rating shake would you for

Brendan Mullinix

would going if happy an XXXX. in that important an more asset we're lobby quality think to opportunity for first, consideration better I think further I on rating said, S&P be Size That revisit office I standpoint. the out will and -- getting we'll ratings. there's help think and that of work will with further we're to ratings. would an from the industrial with overall into

Operator

question Next John from of Ladenburg Thalmann. is Massocca

John Massocca

$XXX say, you are years? of on kind especially a of remaining, of term, So XXXX, between that is expecting fairly disposition, NOI the in kind of planning of and outside that what like of million the dispositions you Chemical of which a the of Dow for kind now the end last the office, given let's given good coming opportunistic kind rate chunk are due, around remaining X lease say, let's sounds cap

Lara Johnson

is Right. It composition dispositions, but the and ultimate hoping set depend an of at John, this cap. obviously Lara Johnson. timing X will be of to on the we're

John Massocca

very from that given on there? you what can what limited kind And kind in there impact understanding you somewhat helpful. might litigation range be say of be Okay, then this, any expect can outcomes the that resolved? the if of around Will Cummins lease, it's we of

Beth Boulerice

This is Beth.

regarding As we are in it. say can litigation, we are limited we to what

collecting is not given it's behalf in the any rent we're We account. inherent a asset. of litigation the and rent on going Currently, record stage court the the into litigation, time. court this administrated in are early the on And not that the at uncertainty to revenue recording fact

Operator

Merrill Lynch. is next America of of The question Feldman Okay. Bank Jamie from

James Feldman

had of end leverage what talked as your but us remind target levels, kind the you go leverage within high staying you certain can -- you know of through would I be this about plan? your

Brendan Mullinix

of upper in And low the end be we that. to we're band Xx. quite thought obviously, Yes, relation of that around would sort the

James Feldman

the million, or Okay. yield to target and might what $XXX about $XXX on be thoughts And somewhere target assets the you said on then rate I as sell next year, those million you might be think cap between any and think assets?

Lara Johnson

Yes. This is Lara.

timing that pool, composition cap. but As an X we're and depend on before, of will be I ultimately hoping at mentioned the it to

James Feldman

cap? a an below be Could

Lara Johnson

Yes.

Operator

from Instructions]. [Operator is The of McGrath next question ISI. follow-up Sheila Evercore a

Sheila McGrath

Or long-term the building, -- reposition asset the Lewis what's to Morgan that, plan plan an invest office on more it's guess, even capital? you there? though do to I add

Lara Johnson

Sheila, Lara again. it's

working stages the are extension. strategy this, time have together Morgan on the we of Lewis for with early I and Obviously, and some James asset. we're in So exploring the

amount a We substantial capital. have invested of

in know, the you As asset.

even sale, exploring possibilities, really the possibilities. sale, we're different user leasing including So all investor an

asset So amount inbound there's we expected. interest the thus far of on significant a as

for So a to quarter next we'll spending so, or the implement. the formulating strategy be asset

Sheila McGrath

then on remind loan-to-value deleveraging Okay. selling you on that? And that us will Dow that a also that be disposition, by Chemical, the can I Am correct on event.

Brendan Mullinix

before the Yes. so. cost recall we that million with was And in million $XXX and construction $XXX The $XXX was leveraged out around facility million, is in debt it finished. proceeds that construction or

monetized all the flow that from So the cash essentially almost of lease.

is as we've interest, inbound mentioned, asset of -- have expression do we that probably we So but roughly an leveraged. XX%

of gets would And lot done, about So balance is sheet. after cash the off a a to debt honestly, the come year us. to the debt only flow sale extent $XXX,XXX service the

So it very would outcome. good a be

Sheila McGrath

Okay. you And touched on apologize if I already last question, this.

On are that's new plans asset, What the Georgia there and Thomson, tenant your vacancy. prospects? a

Wilson Eglin

Yes, open comes it, bit. up But that the just the We'd of very wants and open user building. we're it options all but initial and Chapter very a a to it. there. sure. first potential also sale reception user if we're has we've started to along for because been functional between for be It's XX Augusta a purchase to positive, a and hopeful lease things bankruptcy In hopeful. of kind Atlanta, We're tied gotten marketing

Sheila McGrath

the in-place in supplemental, cash about disclosed -- Were they rents Or the think? you market? what you do were that

Wilson Eglin

it a several dollars we fluctuate a use can ultimate is land there rent tenant, a the of tenant depending what market if warehouse guess, I is. so because a square bag we land per manufacturing or by foot, bit if on So it on little mixed depends

Operator

from Ladenburg Massocca Salmon. follow-up Next, of a John

John Massocca

potential kind there's about I Just you lot something long-term of of as preferred mean, you're been the a look do with kind I maybe some quick sheet mean, trust debt? a your side? debt Because some peers. a with the fixed of of take that of is out to how at balance sheet on balance question. refinancing thinking

Brendan Mullinix

No, and at LIBOR think piece to unlikely preferred plus for attractive duration its out. XXX. the pretty that take it paper of is we a be trust would We given us,

Operator

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

Wilson Eglin

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

Operator

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

now You disconnect. may

LXP Industrial Trust (LXP) 6 Nov 192019 Q3 Earnings call transcript