LXP Industrial Trust

to withdraw your question, press star one again. Thank you. I will now turn the call over to Heather Gentry, Investor Relations. You may begin your conference.

Thank you, operator. Welcome to LXP Industrial Trust third quarter 2023 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 investor section and will be furnished to the SEC on a Form 8-K. 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. 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. Except as required by law, LXP does not undertake a duty to update any forward-looking statements. In the earnings press release and quarterly supplemental disclosure package, LXP has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure. Any references in these documents to adjusted company FFL refer to adjusted company funds from operations available to all equity holders and unit holders on a fully diluted basis. Operating performance measures of an individual investment are not intended to be viewed as presenting a numerical measure of LXC's historical or future financial performance, financial position, or cash flows. On today's call, Will Eglin, Chairman and CEO, Beth Bulleris, CFO, Brendan Mullenix, CIO, and Executive Vice President James Dudley will provide a recent business update and commentary on third quarter results. I will now turn the call over to Will.

Thanks, Heather. Good morning, everyone. We had a successful third quarter driven by meaningful progress on office sales, additional leasing in our development portfolio, rental increases, and further leverage reduction. Both our Philadelphia and New Jersey office assets were sold during the quarter for gross proceeds of approximately $48 million. The remaining office assets in Fort Mill, South Carolina are currently being marketed for sale. And as we've discussed previously, the Palo Alto, California ground lease will expire in December. We've nearly completed our office sales with the two Fort Mill properties representing just 0.2% of gross book value. Office sale proceeds were used to retire line balances, leaving our $600 million revolver fully available as of September 30th. Our net debt to adjusted EBITDA at quarter end was 6.2 times, a substantial reduction from 7.1 times in the third quarter of 2022. Leverage would have been 5.8 times net debt to adjusted EBITDA with the pro forma stabilization of our 2023 leased development projects. As rents grow and our spec development pipeline continues to lease up, leverage is expected to decline further. Disposition proceeds from remaining office sales and industrial assets outside of our target markets may be utilized to keep our revolver available further reduce leverage, and capitalize on new investment opportunities, particularly in the build-to-suit area. On the leasing front, we've leased 5.8 million square feet through the end of October. During the quarter, we made further progress in our spec development pipeline by leasing our 305,000-square-foot spec building in Greenville-Spartanburg at an estimated stabilized cash yield of 7.2%, excluding partner promotes. This brings year-to-date total spec development leasing to 1.9 million square feet at an average estimated stabilized cash yield of 7.5%, excluding partner promote. We continue to raise rents on second-generation new and renewal industrial leases with year-to-date leasing volume of 3.6 million square feet at attractive base and cash-based rental increases of approximately 39% and 24%, respectively. When excluding fixed renewals, base and cash-based rental increases were approximately 51% and 33%, respectively. Our average annual escalations are trending higher, with the average annual escalator for industrial leases signed in 2023 at 3.5%. This improved internal growth profile combined with marking rents to market continue to drive same-store industrial NOI growth which was 5% in the third quarter. This morning we announced that our Board of Trustees authorized an annualized dividend increase of 2 cents per share. The new declared common share dividend, which represents an increase of approximately 4% over the prior dividend, will be paid in the first quarter of 2024. Finally, we're pleased to have published our 2022 Corporate Responsibility Report. The report highlights enhancements made to our ESG and R program and our demonstrated commitment to transparency and disclosure utilizing established reporting frameworks, including SASB, TCFD, and GRI. We also improved our overall 2023 GRASB real estate assessment score and maintained our first place ranking among our peer group with an A in public disclosure. With that, I'll turn the call over to Brendan to discuss our investments in more detail.