LXP Industrial Trust (NYSE: LXP)

Sector: Real Estate Industry: REIT - Industrial CIK: 0000910108
Market Cap 2.83 Bn
P/B 1.39
P/E 26.58
P/S 8.08
ROIC (Qtr) 18.65
Div Yield % 5.62
Rev 1y % (Qtr) -13.99
Total Debt (Qtr) 1.36 Bn
Debt/Equity (Qtr) 0.67
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About

LXP Industrial Trust (LXP), a Maryland-based real estate investment trust (REIT), operates in the real estate industry, with a specific focus on single-tenant warehouse/distribution real estate investments. As of December 31, 2023, LXP had equity ownership interests in approximately 115 consolidated real estate properties, located in 18 states and containing an aggregate of approximately 54.6 million square feet of space, with approximately 99.8% of the space leased. The company's main business activities revolve around growing its portfolio with...

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Investment thesis

Bull case

  • Operating cash flow of 188.72M provides exceptional 42.41x coverage of minority interest expenses 4.45M, showing strong core operations.
  • Strong tangible asset base of 3.54B provides 2.60x coverage of total debt 1.36B, indicating robust asset backing and low credit risk.
  • Tangible assets of 3.54B provide exceptional 1167.33x coverage of deferred revenue 3.03M, showing strong service capability backing.
  • Operating cash flow of 188.72M provides strong 62.28x coverage of deferred revenue 3.03M, indicating service delivery capability.
  • Cash position of 170.65M provides exceptional 38.35x coverage of minority interest expenses 4.45M, indicating strong liquidity.

Bear case

  • Operating cash flow of 188.72M barely covers its investment activities of 298.20M, with a coverage ratio of 0.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 188.72M provides thin coverage of dividend payments of (164.27M) with a -1.15 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 482.49M provides weak coverage of capital expenditures of (293.77M), with a -1.64 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 176.78M show weak coverage of depreciation charges of 204.57M, with a 0.86 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 188.72M barely covers operating expenses of (178000) with a -1060.20 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the REIT - Industrial
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PLD Prologis, Inc. 131.57 Bn 39.60 14.97 35.04 Bn
2 PSA Public Storage 52.97 Bn 33.41 10.98 10.25 Bn
3 EXR Extra Space Storage Inc. 15.99 Bn 113.72 34.08 13.66 Bn
4 LINE Lineage, Inc. 10.60 Bn -59.87 1.98 7.77 Bn
5 EGP Eastgroup Properties Inc 10.17 Bn 39.51 14.10 1.63 Bn
6 REXR Rexford Industrial Realty, Inc. 8.74 Bn 43.69 8.72 3.25 Bn
7 FR First Industrial Realty Trust Inc 7.95 Bn 32.11 10.93 2.57 Bn
8 STAG STAG Industrial, Inc. 7.19 Bn 26.29 8.50 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.16 1.14
EV to Cash from Ops. EV/CFO 21.75 24.26
EV to Debt EV to Debt 3.02 3.22
EV to EBIT EV/EBIT 23.22 50.75
EV to EBITDA EV/EBITDA 4.79 19.38
EV to Free Cash Flow [EV/FCF] EV/FCF 8.51 -0.63
EV to Market Cap EV to Market Cap 1.45 1.57
EV to Revenue EV/Rev 11.72 12.09
Price to Book Value [P/B] P/B 1.39 2.55
Price to Earnings [P/E] P/E 26.58 22.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.62 -0.46
Dividend Payout Ratio % Div Payout % (Qtr) 149.70 34.94
Dividend per Basic Share Div per Share (Qtr) 2.73 3.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 32.97 25.32
Interest Coverage Int. cover (Qtr) 2.81 3.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 372.01 -38.11
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 67.19 19.56
Dividend Growth (1y) % Div 1y % (Qtr) 3.81 41.56
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 58.00 27.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.34 9.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 59.43 22.14
EBT Growth (1y) % EBT 1y % (Qtr) 156.40 19.88
EPS Growth (1y) % EPS 1y % (Qtr) 180.00 14.36
FCF Growth (1y) % FCF 1y % (Qtr) 367.58 -604.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.10 3.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 0.14
Cash Payout Ratio Cash Payout (Qtr) -1.47 0.34
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.67 1.46
Interest Cover Ratio Int Coverage (Qtr) 2.81 3.92
Times Interest Earned Times Interest Earned (Qtr) 2.81 3.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 108.90 67.77
EBIT Margin % EBIT Margin % (Qtr) 50.48 40.11
EBT Margin % EBT Margin % (Qtr) 32.51 24.24
Gross Margin % Gross Margin % (Qtr) 174.50 76.41
Net Profit Margin % Net Margin % (Qtr) 30.40 22.54