LXP Industrial Trust (LXP) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the LXP Industrial Trust second-quarter 2024 earnings conference call and webcast. (Operator instructions)

謝謝你的支持。我叫克里斯塔，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 LXP 工業信託 2024 年第二季財報電話會議和網路廣播。（操作員說明）

Thank you. I will now turn the conference over to Heather Gentry, Investor Relations. Please go ahead.

謝謝。我現在將會議交給投資者關係部門的 Heather Gentry。請繼續。

Thank you, operator. Welcome to LXP Industrial Trust second-quarter 2024 earnings conference call and webcast. The earnings release was distributed this morning and both the release and quarterly supplemental are available on our website in the Investors section and will be furnished to the SEC on a Form 8-K.

謝謝你，接線生。歡迎參加 LXP Industrial Trust 2024 年第二季財報電話會議和網路廣播。收益報告已於今天上午發布，該報告和季度補充報告均可在我們網站的「投資者」部分獲取，並將以 8-K 表格的形式提交給 SEC。

Certain statements made during this conference call regarding future events and expected results may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. LXP believes that these statements are based on reasonable assumptions.

本次電話會議期間所做的有關未來事件和預期結果的某些陳述可能構成 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。LXP 認為這些陳述是基於合理的假設。

However, certain factors and risks, including those included in today's earnings press release and those described in reports that LXP files with the SEC from time to time could cause LXP's actual results to differ materially from those expressed or implied by such statements.

然而，某些因素和風險，包括今天的收益新聞稿中包含的因素和風險，以及LXP 不時向SEC 提交的報告中描述的因素和風險，可能會導致LXP 的實際結果與此類聲明中明示或暗示的結果存在重大差異。

Except as required by law, LXP does not undertake a duty to update any forward-looking statements. In our earnings press release and quarterly supplemental disclosure package, LXP has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures. Any references in these documents to adjusted company FFO refer to adjusted company funds from operations available to all equity holders and unitholders on a fully diluted basis.

除法律要求外，LXP 不承擔更新任何前瞻性聲明的義務。在我們的收益新聞稿和季度補充揭露文件中，LXP 已將所有非 GAAP 財務指標與最直接可比較的 GAAP 指標進行了調整。這些文件中提及的調整後公司 FFO 是指在完全稀釋的基礎上向所有股權持有人和單位持有人提供的業務中調整後的公司資金。

Operating performance measures of an individual investments are not intended to be viewed as presenting a numerical measure of LXPs historical or future financial performance, financial position or cash flows.

單項投資的經營績效衡量指標不應被視為 LXP 歷史或未來財務表現、財務狀況或現金流量的數字衡量。

On today's call Will Eglin, Chairman and CEO; Beth Boulerice, CFO; Brendan Mullinix, CEO and Executive Vice President, James Dudley, will provide a recent business update and commentary on second quarter results. I will now turn the call over to, Will.

在今天的電話會議上，董事長兼執行長 Will Eglin 表示：貝絲‧鮑勒里斯 (Beth Boulerice)，財務長；執行長兼執行副總裁 James Dudley 布倫丹·穆里尼克斯 (Brendan Mullinix) 將提供最新業務更新和對第二季度業績的評論。我現在將把電話轉給威爾。

Thanks, Heather, and good morning, everyone. We have excellent second quarter results highlighted by robust leasing activity with continued success in raising rents and strong same-store NOI growth of 5%. Based on the leasing outcomes we've achieved to date, we're raising same-store NOI growth expectations to a new range of 4.5% to 5.5%.

謝謝希瑟，大家早安。我們第二季的業績表現出色，這得益於強勁的租賃活動、持續成功的租金上漲以及同店 NOI 強勁增長 5%。根據我們迄今為止所取得的租賃成果，我們將同店 NOI 成長預期提高到 4.5% 至 5.5% 的新範圍。

We're also pleased to report we've successfully completed our portfolio transformation with the sale of our two remaining consolidated office assets during the quarter positioning LXP as a pure play industrial REIT. Leasing activity picked up considerably in the second quarter with 2.7 million square feet leased at base and cash base rental increases of 44.5% and 44% respectively, excluding tenant improvement reimbursements on one expiring lease.

我們也很高興地報告，我們已經成功完成了投資組合轉型，在本季度出售了剩餘的兩項合併辦公資產，將 LXP 定位為純粹的工業房地產投資信託基金。第二季租賃活動大幅回升，基礎租賃面積為 270 萬平方英尺，現金基礎租金分別成長 44.5% 和 44%（不包括一項到期租約的租戶改善補償）。

We continued to achieve strong mark-to-market outcomes on expiring leases, which speaks to the high quality of our portfolio, 88% of which are class A facilities. Market conditions support annual rental increases in the 3% to 4% range. And on average, we obtained rental escalations of 3.6% on leases signed in the second quarter. Post quarter end, we leased an additional 96,000 square feet at attractive base and cash-based rent spreads of 28% and 35% respectively. Strong leasing activity continues, and we are in advanced negotiations on an additional 1.7 million square feet.

我們繼續在到期租約上取得強勁的按市值計價的結果，這證明了我們投資組合的高質量，其中 88% 是 A 級設施。市場狀況支持年租金成長 3% 至 4%。平均而言，我們在第二季簽署的租約中獲得了 3.6% 的租金上漲。季末後，我們以頗具吸引力的基礎租金和現金租金分別租出了 96,000 平方英尺，租金分別為 28% 和 35%。強勁的租賃活動仍在繼續，我們正在就額外的 170 萬平方英尺進行深入談判。

Moving to the balance sheet, we ended the quarter at 6.2 times net debt to adjusted EBITDA. We remain focused on moving towards the low end of our target leverage range of 5 to 6 times, and are confident we can reach this target through a combination of leasing vacancy and raising rents. In addition, we are exploring several asset sales in non-target markets that could accelerate leverage reduction or create liquidity for redeployment into new investments.

轉向資產負債表，本季結束時淨負債與調整後 EBITDA 的比值為 6.2 倍。我們仍然專注於向 5 至 6 倍目標槓桿範圍的低端邁進，並有信心透過租賃空置和提高租金相結合來實現這一目標。此外，我們正在探索非目標市場的多項資產出售，這些資產出售可以加速槓桿降低或為重新部署到新投資創造流動性。

Looking ahead, our focus is principally on taking advantage of the internal growth opportunities in our portfolio. We estimate that our current rents are approximately 24% below market through 2029 and we have a total of 4.1 million square feet available for lease. We also continue to explore external growth opportunities, including build-to-suit projects to the extent they fit within our target market strategy.

展望未來，我們的重點主要是利用我們投資組合中的內部成長機會。我們估計，到 2029 年，我們目前的租金比市場水準低約 24%，我們總共有 410 萬平方英尺可供租賃。我們也持續探索外部成長機會，包括適合我們目標市場策略的客製化專案。

Finally, we announced earlier this year that Nathan Brunner will be joining LXP as Executive Vice President of Capital Markets in September. He will transition into the CFO role effective March 1, 2025, when Beth shifts to an advisory role at LXP. Nathan's background speaks for itself with many successful years in investment banking, particularly in the industrial and net lease sectors, and he has deep corporate finance and M&A experience. We're very excited to have him join us and look forward to his contributions.

最後，我們在今年稍早宣布 Nathan Brunner 將於 9 月加入 LXP，擔任資本市場執行副總裁。他將於 2025 年 3 月 1 日起擔任財務官，屆時 Beth 將轉任 LXP 的顧問職位。Nathan 的背景不言而喻，他在投資銀行領域（特別是工業和淨租賃領域）擁有多年成功經驗，並且擁有深厚的企業融資和併購經驗。我們非常高興他加入我們並期待他的貢獻。

With that, I'll turn the call over to Brendan to discuss investment activity in more detail.

這樣，我將把電話轉給布倫丹，更詳細地討論投資活動。

Thanks, Will. During the quarter, we invested $35 million in our spec and build-to-suit projects. We have approximately $29 million left to fund in our remaining spec development projects, excluding any partner promotes and $36 million in our build-to-suit project.

謝謝，威爾。本季度，我們在規格和客製化項目上投資了 3500 萬美元。我們還有大約 2900 萬美元用於剩餘的規格開發項目，不包括任何合作夥伴的促銷活動，以及 3600 萬美元的客製化項目。

Turning to our development portfolio, we've leased approximately 60% of the square footage we've developed since adding this important growth avenue in 2019. On the remaining 3.7 million square feet left to lease, we continue to see activity with 1.3 million square feet currently in final negotiations. Our build-to-suit project in Greenville, Spartanburg is well underway, and we expect that project to complete near the end of the year.

談到我們的開發組合，自 2019 年增加這一重要的成長途徑以來，我們已經租賃了約 60% 的開發面積。對於剩餘的 370 萬平方英尺的租賃空間，我們繼續看到活動，其中 130 萬平方英尺目前正在進行最終談判。我們在斯巴達堡格林維爾的定制項目正在順利進行，我們預計該項目將在年底前完成。

We continue to explore other opportunities with the best prospects currently at our land bank in Phoenix. To Will's earlier point, we are evaluating several non-core market dispositions as a source of liquidity, particularly as prices for these types of assets has become more attractive. Potential proceeds from these asset sales could be used for deleveraging or build-to-suit opportunities, depending on what is the most accretive at the time.

我們繼續在鳳凰城的土地儲備中探索目前前景最好的其他機會。對於威爾先前的觀點，我們正在評估幾個非核心市場配置作為流動性來源，特別是在這些類型資產的價格變得更具吸引力的情況下。這些資產出售的潛在收益可用於去槓桿化或客製化機會，具體取決於當時最增值的是什麼。

With that, I'll turn the call over to James to discuss leasing.

這樣，我會將電話轉給詹姆斯討論租賃事宜。

Thanks, Brendan. The industrial leasing market showed signs of improvement in the second quarter, with net absorption up as demand accelerated and construction starts continue to decelerate. This was evident in our portfolio as well as we saw a pickup in leasing activity across our markets in the second quarter.

謝謝，布倫丹。第二季工業租賃市場出現改善跡象，隨著需求加速和開工持續放緩，淨吸收量上升。這在我們的投資組合中很明顯，而且我們看到第二季整個市場的租賃活動有所回升。

Leasing was strong during the quarter and included lease extensions for four 2024 expirations, one 2025 exploration, one 2026 exploration and a vacancy. To date, we marked we have marked 2024 expirations at 29%, excluding fixed rate renewals.

本季租賃業務表現強勁，包括四項 2024 年到期租賃、一項 2025 年勘探、一項 2026 年勘探和一項空置租賃。迄今為止，我們已將 2024 年到期率標記為 29%，不包括固定利率續約。

We anticipate raising rents on the 600,000 square feet of remaining 2024 expirations on average 20% to 30%. On last quarter's call, we discussed two leases in the Memphis market with 2024 expirations. Both were renewed in the second quarter, totaling approximately 1.6 million square feet. These are strong leasing outcomes, resulting in five year lease renewals at cash rental spreads for 29% and 25% with average lease bumps of 3.25%.

我們預計 2024 年剩餘到期的 60 萬平方英尺的租金將平均增加 20% 至 30%。在上個季度的電話會議上，我們討論了孟菲斯市場的兩份將於 2024 年到期的租約。兩者均於第二季進行了更新，總面積約為160萬平方英尺。這些都是強勁的租賃成果，導致五年租約續約，現金租金利差分別為 29% 和 25%，平均租賃漲幅為 3.25%。

We executed an early lease renewal on our 2025 expiration with Mars (Interpreted) Atlanta during the quarter, signing a 32 month extension with 4% annual bumps. The expiring rent had $4.68 per square foot in tenant improvement amortization. When excluding this amount, the renewal rent reflects a 63% increase in rent from $4.50 to $7.35 per square foot, including the loss of these TI reimbursements in the second quarter leasing numbers base and cash base rents still increased approximately 12% and 13% respectively.

本季度，我們與瑪氏 (Interpreted) 亞特蘭大公司在 2025 年到期時提前續租，簽訂了 32 個月的延期協議，每年增加 4%。到期租金的租戶改善攤銷為每平方英尺 4.68 美元。排除這筆金額後，續租租金反映了租金從每平方英尺4.50 美元增加到7.35 美元的63%，其中包括第二季度TI 報銷的損失，租賃數量基礎租金和現金基礎租金仍分別增長約12%和13% 。

The TI reimbursement burn off for this lease expiration has always been accounted for in our mark-to-market estimates. We don't have any similar leases in the portfolio where TI amortization has such a significant impact. Also, during the quarter, we signed a 10-year lease extension with 3% annual bumps at our 242,000 square foot industrial facility in the Philadelphia market. This was an early renewal on a 2026 expiration that resulted in an 85% cash rental increase over the prior rents.

我們在以市值計價的估算中始終考慮到了本次租賃到期所造成的 TI 補償消耗。我們的投資組合中沒有任何 TI 攤銷具有如此重大影響的類似租賃。此外，在本季度，我們在費城市場 242,000 平方英尺的工業設施上簽署了 10 年租約延期協議，每年上漲 3%。這是 2026 年到期的提前續約，導致現金租金比之前的租金增加了 85%。

Finally, we executed a new two year lease with 3.75% annual bumps at our vacant 118,000 square foot facility in the Memphis market. There was minimal downtime and getting the property leased up with a new rent per square foot, representing a 22% rental increase over the prior rent.

最後，我們在孟菲斯市場 118,000 平方英尺的空置設施上簽訂了一份新的兩年租約，年租金上漲 3.75%。停機時間極短，並以新的每平方英尺租金出租房產，比之前的租金增加了 22%。

With that, I'll turn the call over to Beth to discuss financial results.

這樣，我會將電話轉給貝絲，討論財務結果。

Thanks, James. Revenue in the second quarter was approximately $86 million, with property operating expenses of about $15 million, of which 90% was attributable to tenant reimbursements. Adjusted company FFO in the second quarter was $0.16 per diluted common share or approximately $47 million.

謝謝，詹姆斯。第二季營收約8,600萬美元，物業營運費用約1,500萬美元，其中90%歸因於租戶報銷。調整後的公司第二季 FFO 為每股稀釋普通股 0.16 美元，約 4,700 萬美元。

G&A was $9.2 million in the second quarter. As we mentioned on last quarter's call, we have been focused on operating efficiencies, which included shrinking our office footprint in New York as we transition some overhead costs to our Florida and Dallas offices. As part of our efforts to operate more efficiently and made possible by the successful completion of our portfolio repositioning, 2024 G&A will now include one-time charges of approximately $1.7 million associated with employee severance costs. These employee changes will result in annual cost savings of approximately $1.2 million moving forward.

第二季的一般管理費用為 920 萬美元。正如我們在上個季度的電話會議中所提到的，我們一直專注於營運效率，其中包括縮小我們在紐約的辦公室佔地面積，同時將一些管理費用轉移到佛羅裡達州和達拉斯辦事處。作為我們提高營運效率的努力的一部分，並透過成功完成投資組合重新定位而實現，2024 年的一般管理費用現在將包括與員工遣散費相關的約 170 萬美元的一次性費用。這些員工變動將導致每年節省約 120 萬美元的成本。

Further, in 2024, we will have approximately $1 million in expenses related to the CFO transition. As a result, our 2024 G&A is now expected to be within a range of $39 to $41 million. Our same-store portfolio was 99.4% leased at quarter end and same-store NOI increased 5% in the second quarter when compared to the same period in 2023.

此外，到 2024 年，我們將有大約 100 萬美元與 CFO 過渡相關的費用。因此，我們 2024 年的一般管理費用預計在 39 至 4,100 萬美元之間。截至季末，我們的同店投資組合出租率為 99.4%，與 2023 年同期相比，第二季同店 NOI 成長了 5%。

At quarter end, approximately 99% of our portfolio leases had escalations with an average annual rate of 2.7%. During the quarter, we fully repaid the $198.9 million of 4.4% 2024 senior notes at maturity with proceeds from the issuance of the 6.75% 2028 senior notes we completed last November. Our fixed rate debt percentage was approximately 92% at quarter end. As we've indicated previously, we expect 2025 interest expense to increase when the swaps on the term loan expire in January.

截至季末，我們約 99% 的投資組合租賃出現升級，年均升級率為 2.7%。本季度，我們利用去年 11 月完成發行 6.75% 2028 年優先票據的收益，全額償還了到期的 1.989 億美元 4.4% 2024 年優先票據。截至季末，我們的固定利率債務比例約為 92%。正如我們先前指出的，我們預計當定期貸款掉期在一月到期時，2025 年的利息支出將會增加。

We are considering other long-term fixed rate options or swapping some of this exposure later this year or early next year. We anticipate this additional interest expense to impact 2025 adjusted company FFO by approximately $0.02 per diluted common share based on the current (inaudible) forward curve. At quarter end, our total consolidated debt outstanding was approximately $1.6 billion with a weighted average interest rate of 3.81% and a weighted average term to maturity of 6 years. Finally, we ended the second quarter with our $600 million unsecured revolving credit facility fully available.

我們正在考慮其他長期固定利率選擇，或在今年稍後或明年初交換部分風險敞口。根據目前（聽不清楚）的遠期曲線，我們預計這筆額外利息支出將對 2025 年調整後的公司 FFO 造成每股稀釋普通股約 0.02 美元的影響。截至季末，我們的合併未償債務總額約為 16 億美元，加權平均利率為 3.81%，加權平均到期期限為 6 年。最後，我們在第二季末全面啟用了 6 億美元的無擔保循環信貸額度。

With that, I'll turn the call back over to the operator who will conduct the question and answer portion of this call.

這樣，我會將通話轉回給接線員，接線員將負責此通話的問答部分。

Thank you. We will now begin the question and answer session. (Operator instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Anthony Paolone, JPMorgan.

安東尼保隆，摩根大通。

Thank you. Good morning. First question is just wanted to get into the development leasing pipeline a bit more. I think you mentioned 1.7 million square feet of leasing in the pipeline. And just maybe can you go over again, how much of that you think relates to some of the developments that have been delivered already and just prospect of leasing up some of these large million square footers?

謝謝。早安.第一個問題只是想更了解開發租賃管道。我想你提到了 170 萬平方英尺的租賃計劃。也許您可以再回顧一下，您認為其中有多少與已經交付的一些開發項目有關，以及租賃這些大型百萬平方英尺中的一些的前景？

Hey, Tony, it's James. So just, I'll just run through the portfolio and kind of where we stand. So I think we've talked about Ocala for a while. We continue to be close on Ocala with a prospective tenant that would take the entire facility. We also have another identified tenant for our 250 inatena . And we think we're close on getting a deal done there. We responded to a couple of full building RFPs on our Indianapolis facility, and then we had a partial building users that's looking at our South Shore Tampa facility and then a couple of partial building users that have inquired about Greenville Spartanburg. So I would say we're in a good spot on Ocala and Columbus, right now and a little further away from having certainty on the others.

嘿，東尼，我是詹姆斯。所以，我將簡單介紹一下我們的投資組合以及我們的立場。我想我們已經談論奧卡拉有一段時間了。我們繼續與奧卡拉的潛在租戶保持密切關係，該租戶將佔用整個設施。我們的 250 inatena 還有另一個已確定的租戶。我們認為我們即將在那裡達成協議。我們回覆了印第安納波利斯工廠的幾個完整建築 RFP，然後我們有部分建築用戶正在查看我們的南岸坦帕工廠，然後有幾個部分建築用戶詢問了格林維爾斯巴達堡。所以我想說，我們現在在奧卡拉和哥倫布處於一個很好的位置，距離確定其他地方還有一點距離。

Okay. And just any comments on just where you think yields will end up on those given what you're seeing and where the rents being discussed are?

好的。鑑於您所看到的情況以及正在討論的租金在哪裡，您對您認為收益率最終會在哪裡有任何評論嗎？

Yes, we're maintaining the prior guidance of 6% to 6.5% that we have previously guided to.

是的，我們維持先前指導的 6% 至 6.5% 的指導。

Okay. And then just one other question. Maybe, Beth. I think your same-store NOI guidance was 4% to 5% previously. Just wondering if that's still kind of a number, if there's any changes there for the year?

好的。然後還有一個問題。也許吧，貝絲。我認為你們之前的同店 NOI 指導是 4% 到 5%。只是想知道這是否仍然是一個數字，今年是否有任何變化？

Yes, we've upped the guidance, Tony, to 4.5% to 5.5%

是的，托尼，我們已將指導提高至 4.5% 至 5.5%

Okay, great. Thank you.

好的，太好了。謝謝。

Thanks, Tony.

謝謝，托尼。

Todd Thomas, KeyBanc Capital Markets.

托馬斯 (Todd Thomas)，KeyBanc 資本市場。

Hi, thanks. First question, Beth, you mentioned the $39 to $41 million G&A guidance for '24. That's higher by $3 million, I believe from the prior G&A guidance. I just wanted to clarify is that all included in adjusted company FFO. It sounded like a portion was one-time in nature. I just wasn't sure I heard the comments there. Can you clarify?

你好，謝謝。第一個問題，Beth，您提到了 24 年 39 至 4100 萬美元的一般行政費用指導。我相信根據之前的 G&A 指導，這要高出 300 萬美元。我只是想澄清一下，所有這些都包含在調整後的公司 FFO 中。聽起來一部分本質上是一次性的。我只是不確定我聽到了那裡的評論。你能澄清一下嗎？

Yes. So the severance charges of $1.7 are going to be a one-time. So they won't be an adjusted company FFO.

是的。因此，1.7 美元的遣散費將是一次性的。所以他們不會是調整後的公司FFO。

Okay. But the balance (multiple speakers)

好的。但平衡（多個發言者）

The range we said last time was $36.5 to $38.5. So now we're saying $39 to $41. So it's not quite $3 million, but less than that.

我們上次說的範圍是 36.5 美元到 38.5 美元。所以現在我們說的是 39 美元到 41 美元。所以雖然不是 300 萬美元，但也比這個少。

Okay. But the offset then, so you took up the same store by 50 basis points. What else sort of change, what other assumptions should we think about as it pertains to the updated guidance and the low end coming up a penny?

好的。但隨後進行了抵消，因此您在同一家商店中的份額增加了 50 個基點。還有什麼類型的變化，我們應該考慮哪些其他假設，因為它涉及更新的指導和低端的一分錢？

It's really due to our leasing that we've done and the great outcomes that we've had in our spreads and being able to capture that GAAP rents. It's fairly them the motivator for that.

這實際上是由於我們所做的租賃以及我們在利差方面取得的巨大成果以及能夠捕獲公認會計原則租金。這無疑是他們的動力。

Okay. And then I just wanted to ask also about, there were a handful of, I think, known move outs that were included in the guidance in the budget for the year and the balance of '24. I think there was also some discussion around '25. You talked about a 3PL in South Carolina, around a 75,000 square foot warehouse, also a 58,000 square foot warehouse in Carrollton, Texas. Are those both still move outs? And is there anything else in '24 or '25 that you're aware of at this time?

好的。然後我還想問一下，我認為有一些已知的搬遷已包含在今年預算和 24 年預算的指導中。我認為 25 年左右也有一些討論。您談到了南卡羅來納州的 3PL，大約有 75,000 平方英尺的倉庫，以及德克薩斯州卡羅爾頓的 58,000 平方英尺的倉庫。這兩個人還搬出去嗎？您目前還知道 24 或 25 年還有其他事情嗎？

So those are the two that are in '24, and we have promising activity on both of them. So I'm hoping that there will be short-lived vacancies and the 58 maybe doesn't even become one because we replaced the tenant. And then we have one other 124, that's in the March 2025 lease expiration that we know the tenants moving out. Fortunately, it's a multi-tenant building and the tenant that's next door wants to expand. So also hopeful that we can minimize downtime there.

這就是 24 年的兩個項目，我們對這兩個項目都進行了有希望的活動。所以我希望會有短暫的空缺，而且 58 號也許不會成為一個空缺，因為我們更換了租戶。然後我們還有另外 124 個租戶，我們知道租戶在 2025 年 3 月租約到期時搬出去。幸運的是，這是一棟多租戶建築，隔壁的租戶想要擴建。因此我們也希望能夠最大限度地減少停機時間。

Okay. And just last one for me. The Cleveland asset that was sold subsequent to June 30. Can you just share some details on that sale, the disposition proceeds or any other details on that asset sale?

好的。對我來說只是最後一件。6 月 30 日後出售的克利夫蘭資產。您能否分享有關此次出售、處置收益或資產出售的任何其他細節的一些細節？

Sure. That was an asset that we had a known move-out coming, and we ended up selling it to a user for what we thought was a really good price. It's a cap rate of a little bit above 7%, which sounds high, but for a 1996 facility was 24 foot clear height, it was a really, a very good sale for us.

當然。這是我們已知會搬離的資產，我們最終以我們認為非常好的價格將其出售給用戶。上限率略高於 7%，這聽起來很高，但對於 1996 年的設施來說，其淨高為 24 英尺，這對我們來說確實是一次非常好的銷售。

Okay. All right. Thank you.

好的。好的。謝謝。

Mitch Germain, Citizens JMP.

米奇·傑曼 (Mitch Germain)，公民 JMP。

Thanks for taking my question. Can you provide me some perspective on the math between a build-to-suit versus what you're seeing in the acquisition market today?

感謝您提出我的問題。您能否向我提供一些關於量身定制與您在當今收購市場上看到的情況之間的數學觀點？

Sure. Build-to-suit, we're targeting a range of 6.5% to 7%, just depending upon what the escalation structures in term. And I would say in the existing market, something, a term is going to be in the high 5s to 6 kind of range.

當然。我們的目標範圍是 6.5% 到 7%，具體取決於升級結構。我想說的是，在現有市場中，某個術語將處於 5 到 6 左右的範圍內。

Okay. That's super helpful. And in thinking about dispositions, is it markets where you don't have as much scale or is it assets where either there is some capital or some no move out? What's kind of added in that bucket?

好的。這非常有幫助。在考慮配置時，是您沒有那麼大的規模的市場，還是有一些資本或沒有搬出的資產？那個桶子裡加了什麼？

It's really focused on markets where we don't have scale and don't plan to scale. So we're being opportunistic about harvesting value where we can. We think the disposition markets probably improved in our favor by 50 basis points from a cap rate perspective since fourth quarter last year. So we're in the market, doing some price discovery on a handful of buildings, and we're getting good response.

它實際上專注於我們沒有規模且不打算擴大規模的市場。因此，我們正在盡可能地收穫價值。我們認為，從去年第四季以來，從資本化率的角度來看，處置市場可能對我們有利地改善了 50 個基點。因此，我們在市場上對少數建築物進行了一些價格發現，並且得到了良好的反響。

That's super helpful. And last one for me, Beth. I apologize you get a lot of questions on G&A. I think you were just talking a little too quick for me. So just from your prepared remarks, can you just kind of, I recognize the severance and then you talked about some savings of $1.2 million and then I missed it. I think there's some additional fees for the CFO change. Can you just kind of go over that one more time, please?

這非常有幫助。最後一位是我，貝絲。很抱歉您收到了很多有關 G&A 的問題。我認為你對我來說有點太快了。因此，僅從您準備好的發言來看，您能不能說，我承認了遣散費，然後您談到了 120 萬美元的節省，然後我錯過了。我認為財務長的變動需要一些額外的費用。請您再講一次好嗎？

Yes. Sure, Mitch. No problem. Yes. So there's one-time of $1.7 for severance costs, that's one-time, so they won't be impacting our FFO, adjusted company FFO for 2024. But going into 2025, we anticipate that we're going to be saving about $1.2 million based on those changes. But and also for 2024, we are anticipating about $1 million for the CFO transition that will impact 2024.

是的。當然，米奇。沒問題。是的。因此，一次性遣散費為 1.7 美元，這是一次性的，因此它們不會影響我們的 FFO（調整後的公司 2024 年 FFO）。但進入 2025 年，我們預計這些變化將節省約 120 萬美元。但對於 2024 年，我們預計 CFO 過渡費用約為 100 萬美元，這將影響 2024 年。

Great. That's super helpful. Thank you so much, everyone.

偉大的。這非常有幫助。非常感謝大家。

Thanks.

謝謝。

Camille Bonner, Bank of America.

卡米爾·邦納，美國銀行。

Hi, good morning. So the team's done a lot to term out and manage the floating rate exposure. But as, Beth you highlighted in your opening remarks, interest expense will still be a drag to the bottom line earnings growth. And when you look at the pace of stabilizing your development assets, it seems like we're still a few quarters away, which implies further drag on 2025. So I'm wondering what your thoughts are on that and what you can do to improve this outlook while balancing potential dilution from your asset sales? Thank you

嗨，早安。因此，該團隊做了很多工作來確定和管理浮動利率風險。但正如貝絲在開場白中所強調的那樣，利息支出仍將拖累獲利成長。當你看看穩定開發資產的步伐時，你會發現我們似乎還需要幾個季度的時間，這意味著 2025 年會受到進一步的拖累。所以我想知道您對此有何想法，以及您可以採取哪些措施來改善這一前景，同時平衡資產出售帶來的潛在稀釋？謝謝

Well, we're exploring different opportunities for the term loan. Right now, it's at 2.72% with the swaps that are in place right now. We're looking at potentially some fixed rate, maybe a potential bond offering or swapping today for some of that exposure. We're also, potentially, we may pay down a portion of it as well. And so going forward, you're right. Interest expenses is going to be higher by about $0.02, as I mentioned in our remarks.

嗯，我們正在探索定期貸款的不同機會。目前，根據現有的掉期利率，利率為 2.72%。我們正在考慮潛在的固定利率，也許是潛在的債券發行或今天交換其中的一些曝險。我們也有可能支付其中的一部分。所以展望未來，你是對的。正如我在評論中提到的，利息支出將增加約 0.02 美元。

And as you explore those considerations in light of where your stock's trading today, which does seem much closer to NAV relative to peers. Just wondering how you're thinking about potential equity raises as a source of capital maybe to address capital requirement needs or investment opportunity?

當您根據您的股票今天的交易情況探索這些考慮因素時，相對於同行，您的股票似乎確實更接近資產淨值。只是想知道您如何考慮潛在的股權融資作為資金來源，也許可以滿足資本需求或投資機會？

Well, we are very pleased that the shares have performed well recently, but we're focused on what things that we can achieve that can improve the share value even more. And obviously, making more progress on stabilizing the development pipeline would be top of the list. So things are certainly better from a cost of capital standpoint. But our focus is on, as I said, working in the portfolio, producing better leasing outcomes and improving our valuation further.

嗯，我們很高興這些股票最近表現良好，但我們關注的是我們可以實現哪些目標，從而進一步提高股票價值。顯然，在穩定開發管道方面取得更多進展將是首要任務。因此，從資本成本的角度來看，情況肯定會更好。但正如我所說，我們的重點是在投資組合中開展工作，產生更好的租賃結果並進一步提高我們的估值。

Okay. So it doesn't sound like it ranks very high at this point. And finally, I just wanted to pick up on your point about LXP being positioned as a pure play industrial company. I believe you still have a small stake in a few office properties. So are you planning to also wind that down? And are those assets included in the disposition strategy you outlined?

好的。所以目前看來它的排名並不是很高。最後，我只是想談談您關於 LXP 被定位為純粹的工業公司的觀點。我相信您仍然持有一些辦公物業的少量股份。那你也打算停止這種做法嗎？這些資產是否包含在您概述的處置策略中？

Yes. That office joint venture has been basically in a liquidating mode since it was formed. So it shrunk a lot and still has a handful of buildings in it. And we are winding that down as quickly as the market supports.

是的。該合資辦公室自成立以來基本上一直處於清算狀態。所以它縮小了很多，但裡面仍然有一些建築物。我們將在市場支持的情況下盡快結束這一進程。

Okay, thank you.

好的，謝謝。

(Operator instructions)

（操作員說明）

Jim Kammert, Evercore ISI.

吉姆·卡默特，Evercore ISI。

Thank you. Good morning. I know, Will did I miss it? Did you quantify maybe the potential sales that you would consider in terms of dollars and maybe you don't want to tilt but your hand but a range of cap rates?The non-core assets that you are thinking.

謝謝。早安.我知道，威爾，我錯過了嗎？您是否量化了您可能會考慮的以美元為單位的潛在銷售額，也許您不想傾斜但您的手但有一系列上限利率？您正在考慮的資產。

No, I mean, I would think that what we have in the market right now is sort of more than $100 million, but less than $150 million.

不，我的意思是，我認為我們現在市場上的資產大約超過 1 億美元，但不到 1.5 億美元。

Okay.

好的。

And as Brendan was saying, cap rates for this sort of asset are arguably in the five and three quarters, the six area. That's sort of space which is better than it has been, and those cap rates are certainly lower than our floating rate borrowing costs right now, although over time, it's certainly possible that so far we go down.

正如布倫丹所說，此類資產的資本化率可以說是在第五和第三個季度，即第六個區域。這是一個比以前更好的空間，這些上限利率肯定低於我們現在的浮動利率借貸成本，儘管隨著時間的推移，到目前為止我們肯定有可能下降。

It's helpful. And then second question I saw for accounting. Beth, how much lease up is assumed on the recently completed deals, where I presume you're no longer capitalizing interest, but how much sort of drag is in that remaining 2024 guidance for those assets? Are you assuming any leasing at the low end assumes?

這很有幫助。然後我看到的第二個問題是關於會計的。Beth，最近完成的交易假設有多少租賃，我認為您不再將利息資本化，但這些資產的 2024 年剩餘指導有多大拖累？您是否假設有低端租賃假設？

The low end assumes no leasing at all, and the high end assumes a little bit in the fourth quarter.

低端假設根本沒有租賃，高端假設第四季有一點租賃。

So marginal. Okay. Thank you.

如此邊緣。好的。謝謝。

Jon Petersen, Jefferies.

喬恩彼得森，傑弗里斯。

Hey, good morning. On Ocala and Columbus, are you guys able to, can you give us like the annual run rate FFO upside from leasing those two properties? Like how should we think about quantifying that since that seems to be the most likely upside in the near term?

嘿，早安。在奧卡拉和哥倫布，你們能告訴我們租賃這兩處房產的年度運行率 FFO 的上升空間嗎？就像我們應該如何考慮量化這一點，因為這似乎是短期內最有可能的上行空間？

It's about $0.03.

大約是0.03美元。

Okay. And then on Ocala, because I think that's the one we've been talking about the longest here. Can you characterize how the negotiations have evolved there? Is it just waiting for the potential tenants to sign the dotted line? Or is there a lot of back and forth on terms and that's what's holding it up?

好的。然後是奧卡拉，因為我認為這是我們在這裡討論時間最長的一個。您能描述一下談判的進展嗎？難道只是等待潛在租戶在虛線上簽名嗎？還是因為條款上有很多來來回回而導致其停滯不前？

It's waiting on the tenant at this point. Their internal processes and incredibly long. And we're working through it, and we're trying to be patient, but hopefully we're going to have something done soon. And we've been saying that for a couple of months now, but it continues to move in the right direction just at a very slow pace.

目前正在等待租客。他們的內部流程又長得令人難以置信。我們正在努力解決這個問題，我們正在努力保持耐心，但希望我們能盡快完成一些事情。我們已經這麼說了幾個月了，但它繼續朝著正確的方向前進，只是速度非常緩慢。

Understood. That's helpful. Thank you.

明白了。這很有幫助。謝謝。

And that concludes our question and answer session. And I will now turn the conference back over to Will Eglinton for closing comments.

我們的問答環節到此結束。現在，我將把會議轉回威爾·埃格林頓（Will Eglinton）進行總結評論。

Well, thank you, everyone, for joining our call this morning. I hope you'll take the time to visit our website or contact Heather Gentry if you'd like to receive our quarterly materials. And in addition, as always, you may contact me or the other members of senior management with any questions. Thanks again.

好的，謝謝大家今天早上加入我們的電話會議。如果您想收到我們的季度資料，希望您花時間造訪我們的網站或聯絡 Heather Gentry。此外，與往常一樣，如果有任何問題，您可以聯繫我或其他高階管理層成員。再次感謝。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。