One-glance verdict
Overvalued
$33.71 our estimate vs market $61.18
Wall Street consensus: $59.24 (75.8% higher than our fair-value estimate)
82% above our estimate, beyond the bull case
Fundamentals snapshot
LXP Industrial Trust
LXP · NYQ · Real Estate · REIT - Industrial
Current price
$61.18
52-week range
$44.17 - $61.61
Market cap
$3.61B
Balance sheet
Distressed
0.78x Concerning
Net debt $1.24B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 0.4% last year.
- Reward Returns 5.9% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Operating margin compressed from 14.6% to 13.1% over 3 years.
What this company does
LXP Industrial Trust
LXP Industrial Trust owns and rents out large warehouses and distribution centers in popular areas of the US. Their main income comes from the rent paid by businesses that use these buildings, and this steady rent income is important because it helps them consistently pay dividends (a portion of their profits) to investors.
How the company got here
LXP Industrial Trust, originally founded in 1993 as Lexington Corporate Properties Trust, has evolved significantly over the years. It began as a diversified real estate investment trust (REIT) with a portfolio that included substantial office holdings. However, starting around 2018, the company underwent a strategic repositioning to focus primarily on industrial real estate, specifically warehouse and distribution facilities. This pivot involved selling off non-core assets, like office buildings, and acquiring high-quality industrial properties. In 2022, the company rebranded to LXP Industrial Trust to reflect this sharpened focus on the industrial sector. This transformation has positioned LXP as a more specialized player in the logistics real estate market.
What it actually does
LXP Industrial Trust doesn't manufacture products; instead, it operates as a real estate investment trust (REIT). A REIT is a company that owns, operates, or finances income-producing real estate. LXP's core business involves acquiring, developing, owning, and leasing industrial properties, primarily large warehouse and distribution centers. These properties are leased to corporate tenants who use them for storing and distributing goods. Essentially, LXP provides the physical spaces that businesses need for their supply chain and logistics operations, generating revenue through rental income.
Industrial Real Estate Operations
LXP's primary business revolves around its portfolio of industrial real estate. This includes owning and operating modern, Class A warehouse and distribution facilities. These are typically large, single-tenant buildings located in key logistics hubs across the Sunbelt and lower Midwest regions of the United States. The company focuses on properties with attractive specifications, such as high ceilings and ample loading docks, to meet the demands of modern distribution networks. Revenue is generated by leasing these properties to corporate tenants on long-term contracts, providing a stable income stream.
Development and Build-to-Suit Projects
Beyond owning existing properties, LXP actively engages in the development of new industrial spaces. This includes 'build-to-suit' projects, where LXP constructs a facility specifically designed to meet the unique operational needs of a particular tenant. This strategy helps deepen relationships with existing tenants and can lead to attractive investment returns. LXP also undertakes selective speculative development, building properties in anticipation of future tenant demand in high-growth logistics markets.
Acquisitions and Capital Recycling
LXP employs a multi-channel investment strategy that includes acquiring existing properties and engaging in 'sale-leaseback' transactions. In a sale-leaseback, LXP buys a property from a company and then leases it back to that same company, allowing the original owner to free up capital while retaining use of the facility. The company also actively manages its portfolio by selling assets that no longer fit its strategic focus ('capital recycling') to reinvest in higher-quality or more strategically located properties.
What management is betting on now
LXP's management is focused on growing a high-quality portfolio of industrial warehouse and distribution properties in prime U.S. logistics markets. They prioritize location and asset quality, believing this will drive long-term performance and shareholder returns. The strategy aims to generate durable cash flow and increase the company's net asset value by concentrating on modern, functional industrial spaces. Management is also focused on executing development projects effectively and managing lease expirations to ensure continued growth and profitability in the dynamic industrial real estate sector.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$90.78M
Net income
$92.05M
Diluted EPS
1.54
Operating cash flow
$58.71M
Free cash flow
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Sources
Revenue
$88.11M
Net income
$55.00K
Diluted EPS
-0.03
Operating cash flow
$48.71M
Free cash flow
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Sources
Revenue
$85.95M
Net income
$-239.00K
Diluted EPS
-0.03
Operating cash flow
$37.46M
Free cash flow
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Sources
Revenue
$86.74M
Net income
$28.77M
Diluted EPS
1.55
Operating cash flow
$41.94M
Free cash flow
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Sources
Revenue
$86.90M
Net income
$36.28M
Diluted EPS
0.12
Operating cash flow
$63.50M
Free cash flow
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Sources
Revenue
$87.72M
Net income
$29.13M
Diluted EPS
0.09
Operating cash flow
$44.29M
Free cash flow
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Revenue
$88.86M
Net income
$18.98M
Diluted EPS
0.06
Operating cash flow
$38.99M
Free cash flow
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Sources
Revenue
$100.85M
Net income
$33.03M
Diluted EPS
0.11
Operating cash flow
$69.22M
Free cash flow
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Is it cheap or expensive?
Fair value $33.71 vs current price $61.18
Wall Street consensus is the average analyst price target: $59.24 (75.8% higher than our fair-value estimate).
Our most-likely fair value is $33.71 a share — about 44.9% below today's price of $61.18, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $1.2B. Interest coverage 0.8x.
Net debt
$1.24B
Interest coverage
0.78x
LXP Industrial Trust's profit covers its interest bill about 0.8 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
LXP
BASELINE
LXP Industrial Trust
Total debt $1.35B Interest coverage 0.78x This is the baseline the peer rows are being compared against.
Total debt $3.46B Interest coverage 2.42x +210% vs LXP Carries about 3.1x more debt cushion than LXP.
Total debt $2.66B Interest coverage 3.62x +364% vs LXP Carries about 4.6x more debt cushion than LXP.
Total debt $2.78B Interest coverage 3.63x +364% vs LXP Carries about 4.6x more debt cushion than LXP.
Total debt $1.85B Interest coverage 9.82x +1,157% vs LXP Carries about 12.6x more debt cushion than LXP.
Total debt $898.60M Interest coverage 5.86x +650% vs LXP Carries about 7.5x more debt cushion than LXP.
What you should know
The case for and against LXP
3 Rewards
1 Risk
Rewards
-
Revenue grew 0.4% last year.
-
Returns 5.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Operating margin compressed from 14.6% to 13.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.21x
Forward P/E
-3,059.00x
P/B
1.86x
P/S
10.26x
EV/EBITDA
20.91x
PEG ratio
3.15x
Profitability
How much profit each dollar creates
Gross margin
79.8%
Operating margin
13.1%
Net margin
34.3%
ROE
5.9%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
2.22x
Quick ratio
2.22x
Total debt
$1.35B
Total cash
$110.31M
Growth
How the business has been compounding
Revenue TTM
$351.59M
Revenue 5Y CAGR
0.4%
EPS TTM
1.96
EPS 5Y CAGR
-1.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$186.82M
Free CF TTM
$163.81M
FCF margin
46.6%
Dividend
Shareholder payout
Yield
4.6%
Payout ratio
107.7%
Last ex-div date
2026-06-30