Recapitalization of $ 550 million of the special purpose industrial portfolio January 3, 2022
LXP INDUSTRIAL TRUST In the following presentation, the term âpro formaâ represents the adjustment of the information as at September 30, 2021 to reflect: – The recapitalization of 22 ad hoc industrial assets into a new joint venture – The reclassification of four assets – two assets in Light Manufacturing Warehouse / Distribution; an asset from Cold Storage to Other; and a Heavy Manufacturing to Other asset The recapitalization was completed on December 29, 2021. Please refer to our Q3 2021 quarterly supplemental information for a list of defined terms used in this presentation. This presentation contains certain forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties or other factors that may cause the actual results, performance or achievements of L XP Industrial Trust (âLXPâ) to differ materially from the results, performance or other expectations implied by such forward-looking statements. These factors include, without limitation, the factors and risks detailed in the documents filed by LXP with the Securities and Exchange Commission. Except as required by law, LXP makes no commitment to (1) publish the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the occurrence of unforeseen events or (2) update or supplement statements which become false as a result of subsequent events. Therefore, there can be no assurance that LXP’s expectations will be realized. Disclosure
LXP INDUSTRIAL TRUST 1 LXP Industrial Trust: a targeted portfolio of high quality single tenant warehouses / distribution warehouses As of 09/30/21 1 Warehouse / Distribution Cold Storage Pro Forma 09/30/21 102 warehouses / distribution warehouses well located in key logistics markets of the Sun Belt and Midwest Primarily single-tenant, Class A facilities Area: 48.8mm sf 22 single-tenant, net – leased, industrial assets used for manufacturing, assembly, l Cold storage, R&D, laboratory or others uses square footage: 6.7mm sf LXP Industrial Trust JV Special Purpose Industrial Light Manufacturing Heavy Manufacturing 81% 5% 6% 8% 1. Rent Percentage base for consolidated industrial properties held on 09/30/2021. Consolidated industrial portfolio
LXP INDUSTRIAL TRUST 2 Summary of the recapitalization transaction Financing of the transaction property â¢ On December 29, 2021, LXP Industrial Trust (âLXPâ) recapitalized a special purpose industrial portfolio of 22 properties composed mainly of assets of $ 550 million gross manufacturing through sale to a newly formed institutional joint venture (the âJoint Ventureâ) with a subsidiary of Davidson Kempner Capital Management LP â¢ The culmination of an extensive marketing process competitive started in May 2021 receives approximately $ 487 million in estimated net proceeds â¢ Net proceeds are expected to be used to meet line of credit borrowings and finance the acquisition and development of warehouse / distribution assets in markets mortgage loan targets secured by 21 assets â¢ Interest rate spread of 245 basis points on the guaranteed overnight rate (SOFR) at one month and one term e 2-year with three one-year extension options â¢ A transfer of ownership with an existing mortgage of $ 26 million â¢ The joint venture is 80% owned by an affiliate of Davidson Kempner Capital Management LP, LXP retaining an 20% stake â¢ Other $ 250 million pro-rated equity commitment from partners for future single-tenant and special-purpose industrial property acquisitions outside of LXP’s primary warehouse / distribution objective. â¢ LXP is entitled to charge acquisition, asset management, property management and leasing fees and participate in an interest incentive promoted 1. Cap rate based on annualized 3Q 2021 NOI.
LXP INDUSTRIAL TRUST 3 Benefits of the transaction for LXP Increase financial capacity for growth and reinvestment in warehouse / distribution assets on balance sheet Generates commission income to improve return on equity – acquisition, management costs asset, property management and rental – Additional benefits for LXP up to 20% retained and promoted interest – interest incentive Adds a source of committed capital to provide specialized industrial real estate financing solutions to Existing LXP tenants and merchant builder relationships Dramatically improves portfolio quality with emphasis on warehouses / distribution – Increases warehouse / distribution exposure to 93% of gross book value on a pro forma basis Capitalizes on underlying macroeconomic trend of de-globalization leading to increased layoffs in the supply chain ovisionning and the relocation of the means of production
LXP INDUSTRIAL TRUST Joint Venture Capitalized Value (Purchase Price / Business Costs) $ 550 Business Costs / Reserves 11 Existing Mortgage Debt (26) New Joint Venture Mortgage Debt (381) Joint Venture Equity $ 154 LXP Interest (20%) $ 1,31 Investing Partner Interest (80%) $ 123 $ 4 Joint Venture Capitalization / Sources and Uses Gross Recap Proceeds $ 550 Deemed Debt (26) Transaction Costs (6) Joint Venture Investment (31) Total – LXP Net cash proceeds $ 487 Line of credit payment $ 340 Reinvestment surplus 147 T ot al – LXP Uses of cash $ 487 Joint venture capitalization LXP Sources and uses of cash Leverage Debt / Gross assets 32.6% 31.9% Guaranteed debt / Gross assets 2.5% 1.8% Unencumbered NOI% 91.5% 92.7% Net debt / Adjusted EBITDA 5.4x 4.3x Amount of the structure of the joint venture (in millions of dollars) LXP Amount of net proceeds e n cash (in millions of dollars) LXP Use of cash (in millions of dollars) Impact on credit ratios Pro Forma 30/9/21 As of 30/09/21 1. Excludes any potential interest promoted.
LXP INDUSTRIAL TRUST 5 Significant improvement in portfolio quality with emphasis on warehouse / distribution 1. Breakdown of portfolio by gross book value. 74% YE 2015 1 Pro Forma 9/30/21 1 YE 2018 1 Warehouse / Distribution: ~ 16% Manufacturing, Cold Storage, Office & Others: ~ 84% Warehouse / Distribution: ~ 48% Manufacturing, Cold Storage, Office & Other : ~ 52% Warehouse / Distribution: ~ 93% Offices and others: ~ 7% Warehouses and distribution Refrigerated warehouses Heavy manufacturing Light manufacturing Offices and others
LXP INDUSTRIAL TRUST 6 Highlights of LXP Amazon’s pro forma industrial portfolio 8.4% Nissan 6.3% Kellogg 4.8% Undisclosed 3 3.5% Watco 3.4% FedEx 2.8% Wal-Mart 2, 8% Undisclosed 3 2.8% United 2.3% Mars Wrigley 2.3% Top 10 tenants 48.8mm square feet 102 properties 99.0% leased 2 6.7 years WALT 2.6% average annual increase 1 9.4 year average age of property Memphis, TN 9.3% Dallas / Ft. Worth, TX 7.0% Greenville / Spartanburg, SC 7.0% Houston, TX 6.3% Phoenix, AZ 6.3% Atlanta, GA 5.7% Cincinnati / Dayton, OH 5.1% Nashville, TN 4 , 3% Chicago, IL 4.3% Savannah, GA 3.2% Top 10 Markets Note: Statistics presented reflect the pro forma consolidated industrial portfolio. 1. For single tenant properties with escalators. 2. For the stabilized portfolio. 3. The lease restricts certain disclosures. % Base rent% Base rent
LXP INDUSTRIAL TRUST 7 Properties Selected from LXP’s Industrial Portfolio High Quality Warehouse and Distribution Facility Portfolio Phoenix AZ 160K Ball $ 6.14 2.25% Indianapolis IN Continental Tire Dallas / Ft. Worth TX Schluter Memphis TN McCormick Greenville / Spartanburg SC BMW Market Tenant SF Rent PSF Annual Escalator 1 2.1% $ 3.34 742 K 501 K $ 4.47 2.5% 408 K $ 4.89 2.0% 616 K $ 4.04 1.4% Note: The properties selected are representative of the pro forma consolidated industrial portfolio. 1. All escalators are annual with the exception of Ball, which is every two years at 4.5%.
LXP INDUSTRIAL TRUST 8 LXP offers a highly attractive, growth-ready investment opportunity platform with a focused portfolio, development pipeline and improved balance sheet and cost of capital 3 Leading Warehouse Portfolio / predominantly single-tenant distribution facilities in key logistics markets 1 Strong winds for the industry drive exceptional demand, occupancy and rental growth 2 A world-class management team with a history of building decisive value 4 A recently renewed and independent board of directors 5 A leading ESG program aligned with established frameworks 6
INDUSTRIAL TRUST LXP. appendix
LXP INDUSTRIAL TRUST Summary of Joint Venture Properties General Description of the Portfolio Financial Profile (in millions) Number of properties 22 square feet (SF) 6,719,210 WAVG Lease term (cash basis – years) 8% of the leased portfolio Rental income 100 % GAAP (YTD 9/30/2021) $ 30.5 NOI (YTD 30/09 // 2021) – GAAP $ 30.4 NOI (YTD 30/09 // 2021) – Cash $ 29.5 9
LXP INDUSTRIAL TRUST 10 List of Joint Venture Properties 318 Pappy Dunn Blvd. Anniston AL Anniston / Oxford, AL 276 782 2029 4801 North Park Dr. Opelika AL Columbus, GA 165 493 2042 1020 W. Airport Rd. Romeoville IL Chicago, IL 188 166 2031 301 Bill Bryan Blvd. Hopkinsville KY Nashville, TN 424 904 2025 730 North Black Branch Road. Elizabethtown KY Elizabethtown / Fort Knox, KY 167 770 2025 750 North Black Branch Road. Elizabethtown KY Elizabethtown / Fort Knox, KY 539 592 2025 4010 Airpark Dr. Owensboro KY Owensboro, KY 211 598 2025 10000 Business Blvd. Dry Ridge KY Cincinnati / Dayton, OH 336 350 2031 113 Wells St. North Berwick ME Portland / South Portland, ME 993 685 2024 26700 Bunert Rd. Warren MI Detroit, MI 260 243 2032 43955 Plymouth Oaks Blvd. Plymouth MI Detroit, MI 311.612 2024 904 Industrial Rd. Marshall MI West Michigan 246 508 2028 2880 Kenny Biggs Rd. Lumberton NC Lumberton, NC 423 280 2026 5670 Nicco Way North Las Vegas NV Las Vegas, NV 180 235 2034 10590 Hamilton Ave. Cincinnati OH Cincinnati / Dayton, OH 264 598 2027 590 Ecology Ln. Chester SC Charlotte, North Carolina 420 597 2025 50 Tyger River Dr Duncan SC Greenville / Spartanburg, SC 221 833 2027 120 Pkwy South East. Dr Franklin TN Nashville, TN 289 330 2023 900 Industrial Blvd. Crossville TN Crossville, TN 222 200 2033 13863 Industrial Rd. Houston Texas Houston, Texas 187 800 2035 7007 FM 362 Road. Brookshire TX Houston, TX 262 095 2035 901 East Bingen Point Way Bingen WA Bingen, WA 124 539 2024 Market Square Lease Expiration State City Address