LXP Industrial Trust

your conference operator today. At this time, I would like to welcome everyone to the LXP Industrial Trust third quarter earnings call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Thank you. Now, I would like to turn the call over to Heather Gentry, Investor Relations. Please go ahead.

Thank you, Operator. Welcome to LXP Industrial Trust's third quarter 2025 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 8K. 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 FFO 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 LXP's historical or future financial performance, financial positions, or cash flows. On today's call, Will Eglin, Chairman and CEO, and Nathan Brunner, CFO, will provide a recent business update and commentary on third quarter results. Brendan Mullenix, CIO, and James Dudley, Executive Vice President and Director of Asset Management, will be available for the Q&A portion of this call. I will now turn the call over to Will.

Thanks, Heather, and good morning, everyone. We had a great third quarter highlighted by the transformative sale of our two vacant million square foot development projects in Central Florida and Indianapolis to a user buyer. This transaction was exceptionally impactful to our overall business, providing immediate earnings accretion while also materially reducing leverage. Two positive outcomes rarely achieved in tandem. The aggregate gross sale price of $175 million represented a 20% premium to the gross book value of the properties and is a superior outcome compared to leasing the assets. The transaction drove portfolio occupancy up 370 basis points, significantly decreased leverage to 5.2 times net debt to adjusted EBITDA from 5.8 times, and will generate an estimated 6% accretion to adjusted company FFO per share, reflecting the property operating cost savings and interest expense savings from debt reduction. The net proceeds from the sale of $151 million were used to repay $140 million of our 300 million, 6.75% senior notes due in 2028, pursuant to a cash tender offer that closed subsequent to quarter end, considerably improving our balance sheet and financial flexibility. We have now successfully leased or sold 98% of our development program. Our program has contributed to LXP having the youngest industrial portfolio in the public market with 15 facilities developed since 2019, totaling 9.1 million square feet at a weighted average estimated stabilized cash yield of 7.1%. Additionally, the two development property sales and a lease land sale completed late last year produce gains of $91 million or 54% over our cost of $170 million. Year-to-date sales volume totals $273 million with an average cash capitalization rate of 5.1% on stabilized assets. The investment sales market remains healthy and we are currently marketing approximately $115 million of assets for sale in our non-target markets for opportunistic reinvestment, which may include opportunities in our land bank. During the quarter, we further added to our target market exposure and acquired an approximately 157,000 square foot Class A industrial facility in the Atlanta market for $30 million to satisfy a 1031 exchange requirement. We continue to focus on our 12-market investment strategy in the Sun Belt and select lower Midwest states, which account for approximately 85% of our gross assets. Market fundamentals improved during the third quarter with our 12 target markets outperforming the broader market. We continue to see robust net absorption in our target markets, which accounted for roughly 33 million square feet of the overall U.S. net absorption of approximately 45 million square feet in the third quarter. Dallas, Houston, Phoenix, and Indianapolis were standouts, with net absorption of between 4 and 8 million square feet in each of these markets. Furthermore, Atlanta, Greenville-Spartanburg, Columbus, and Central Florida each experienced net absorption of over 2 million square feet. In addition to demand from large retailers and 3TLs, it's notable to highlight that manufacturing-related demand has been a meaningful contributor to demand in our markets, reflecting the significant onshoring investment across our geographic footprint. During the quarter, flight to quality continued with large corporate users driving the absorption into newer facilities, and we saw an increase in demand for larger spaces. We stand to benefit from both of these trends, given our portfolio is the newest in the industrial REIT space and our focus is on bulk logistics. U.S. vacancy held relatively steady, around 7%, primarily due to positive demand and a further decline in new completions. Construction starts remain below historical levels, with the construction pipeline in our 12 markets of approximately 88 million square feet down nearly 73% from the 2022 peak of approximately 330 million square feet. Today, we also announced that the Board of Trustees authorized an annualized dividend increase of 2 cents per share to an annualized rate of 56 cents per share on a pre-split basis. The newly declared common share dividend represents an increase of 3.7% over the prior dividend and will be paid in the first quarter of 2026. In summary, our company is in a great position. The sale of the development projects accelerated and de-risked several of our most critical operating objectives, resulting in meaningfully higher occupancy, lower leverage, and earnings accretion. We believe this outcome, combined with our high-quality young portfolio of primarily Class A assets in markets that are outperforming, consistent contractual rent growth, inexpensive rents in relation to market, above average tenant credit with an investment grade balance sheet, moderate payout ratio, and a land bank to be utilized for creative growth opportunities positions us well for success going forward. With that, Nathan will now discuss our financials, leasing, and balance sheet in more detail. Thanks, Will.