LXP Industrial Trust: Evercore ISI maintains In-Line, PT raised to $11.

LXP Industrial Trust: Evercore ISI maintains In-Line, PT raised to $11.

Evercore ISI has upgraded its price target for LXP Industrial Trust (LXP) to $11, maintaining an in-line rating. The upgrade comes after the company recently completed the sale of two vacant development projects in Ocala, Florida, and Indianapolis, Indiana, generating a total of $175 million Property Sales and Debt Moves Could Be a Game Changer for LXP Industrial Trust (LXP)^[1]. This sale represents a 20% premium over the properties' gross book value as of June 2025, with approximately $151 million in net proceeds earmarked for debt repayment and general corporate purposes.

The sale proceeds, combined with a tender offer to repurchase $150 million of its 6.750% Notes due 2028, reflect management's intent to optimize the company's capital structure and improve financial flexibility. Evercore ISI believes these moves will enhance LXP's balance sheet and interest expense management, contributing to a more favorable investment outlook.

Despite the positive developments, Evercore ISI acknowledges the persistent risks associated with large, single-tenant vacancy and the need for consistent growth in net operating income. The company's near-term outlook points to $417.6 million in revenue and $3.1 million in earnings by 2028, assuming a 4.8% annual revenue growth rate and a sharp earnings decrease of $77.7 million from current earnings of $80.8 million Property Sales and Debt Moves Could Be a Game Changer for LXP Industrial Trust (LXP)^[1].

Investors should remain aware of the ongoing exposure to large, single-tenant vacancy risk and the potential impact on financial outcomes. However, the recent sales and debt tender may provide LXP with the necessary liquidity to navigate these challenges and support its long-term growth prospects.