LXP Fortifies Balance Sheet with $850 Million in Favorable Debt Deals

WEST PALM BEACH, FL – January 14, 2026 – LXP Industrial Trust (NYSE: LXP) has decisively strengthened its financial footing, announcing the closure of an $850 million refinancing package that extends its debt maturities and significantly lowers its borrowing costs. The deal, comprising a new $600 million senior unsecured revolving credit facility and a refinanced $250 million unsecured term loan, serves as a powerful endorsement of the company's strategic direction and the enduring appeal of the Class A industrial real estate sector.

This move provides the real estate investment trust (REIT) with enhanced financial flexibility and underscores strong lender confidence at a time of shifting macroeconomic currents. For LXP, which focuses on high-quality warehouse and distribution centers in the Sunbelt and lower Midwest, the transaction is the culmination of a disciplined, year-long effort to fortify its balance sheet.

A Strategic Financial Overhaul

The details of the new debt facilities reveal a significant improvement in LXP’s cost of capital. The $600 million revolving credit facility, which amends and restates a previous agreement, now carries an interest rate of the Secured Overnight Financing Rate (SOFR) plus just 77.5 basis points. This represents a substantial reduction from the SOFR plus 95 basis points under the former facility. The associated facility fee has also been trimmed from 20 to 15 basis points. This new facility matures in January 2030, with options to extend for an additional year.

Similarly, the refinanced $250 million unsecured term loan now bears interest at SOFR plus 85 basis points, a sharp decrease from the previous rate of SOFR plus 110 basis points. The term loan has an initial maturity of January 2029, with two one-year extension options available at LXP's discretion.

These terms are highly competitive, particularly when benchmarked against a market where unsecured debt pricing for REITs averaged approximately 6.5% in 2025. LXP’s ability to secure such favorable rates is a direct reflection of its robust financial health. The company's fixed-charge coverage ratio stood at an impressive 3.7x as of late 2025, far exceeding the typical 1.5x minimum covenant required in many REIT credit agreements.

Nathan Brunner, Chief Financial Officer of LXP, commented on the achievement in a statement. “The new debt facilities extend our debt maturity profile and reduce our interest costs, further strengthening our balance sheet and increasing our financial flexibility,” he said. “This builds on the balance sheet progress we achieved in 2025, including reducing leverage to approximately five times net debt to Adjusted EBITDA, as recognized by the recent action by S&P Global Ratings to revise LXP’s outlook to positive. We appreciate the ongoing support of our bank group and their continued confidence in LXP.”

Building on a Foundation of Prudence

The successful refinancing is not an isolated event but rather the capstone of a deliberate strategy executed throughout 2025. The company prioritized deleveraging and strengthening its financial metrics, a move that has clearly paid dividends. A key factor was the significant reduction in its leverage ratio, which S&P Global Ratings noted had fallen to 5.1x adjusted debt-to-EBITDA for the twelve months ending September 30, 2025, a marked improvement from 6.5x in the prior year.

This progress was fueled by proactive asset management. In 2025, LXP sold two vacant development projects for $175 million—a 20% premium over their book value—and strategically used the proceeds to pay down approximately $220 million of existing debt. This disciplined capital recycling, combined with healthy EBITDA growth from a largely fixed-rate debt structure, directly contributed to the improved financial profile.

The market’s recognition of this fiscal discipline was formalized on December 11, 2025, when S&P Global Ratings revised its outlook on LXP from 'stable' to 'positive,' while affirming its 'BBB-' credit rating. S&P cited the successful debt reduction and expressed confidence that LXP's management would maintain leverage in the low 5x range, signaling a stable and sound operating performance ahead.

A Vote of Confidence in Industrial Real Estate

Beyond LXP’s internal metrics, this financing deal also serves as a strong vote of confidence in the broader industrial real estate market, particularly for modern, high-quality assets. The sector continues to benefit from powerful secular tailwinds, including the relentless growth of e-commerce, which is projected to account for 25% of all retail sales by the end of 2025. This drives sustained demand for the very warehouse and distribution facilities that form the core of LXP’s portfolio.

A key trend shaping the market is a “flight to quality,” where tenants are increasingly prioritizing Class A facilities that can accommodate automation, support supply chain resiliency, and offer superior amenities. LXP is exceptionally well-positioned to capitalize on this trend, with 92% of its portfolio consisting of Class A assets.

Furthermore, the company’s geographic focus on 12 key markets across the Sunbelt and lower Midwest aligns with national growth patterns. These regions are experiencing population and employment growth at rates 2.3 and 1.7 times the national average, respectively. Ten of LXP's target markets rank in the top 15 nationally for net absorption of industrial space, indicating robust demand that outpaces supply in many areas.

Syndicate Strength Signals Deep Market Trust

The sheer breadth and quality of the banking syndicate behind the transaction further underscore the market’s trust in LXP's strategy and creditworthiness. The deal was led by a powerful trio of Joint Lead Arrangers: KeyBanc Capital Markets, Inc., Wells Fargo Securities, LLC, and Regions Capital Markets.

The participation extended deep into the financial industry, with Bank Of America, Citizens Bank, Mizuho Bank, JPMorgan Chase Bank, PNC Bank, TD Bank, and U.S. Bank National Association also playing significant roles. The involvement of such a diverse and reputable group of institutions is a telling indicator of broad-based confidence in LXP's management, its high-quality asset base, and its prospects for continued operational excellence.

This successful refinancing provides LXP not only with lower costs and a longer debt runway but also with the strategic agility to act on future opportunities. With a fortified balance sheet and access to low-cost capital, the company is well-equipped to pursue acquisitions, build-to-suit projects, and other growth initiatives within its target markets, ensuring it can continue to capitalize on the resilient demand for modern industrial real estate.