Lexington Realty Trust (LXP) delivered a stunning second-quarter performance in 2025, far exceeding analyst expectations. The industrial property REIT reported earnings per share of $0.09, a remarkable turnaround from the projected $0.015 loss—beating forecasts by 700%. Revenue also outperformed, reaching $86.74 million, a 3.36% increase over estimates. The stock responded positively, rising 1.73% in pre-market trading to $8.21. A key driver was the portfolio’s record-high occupancy rate of 94.1%, up from 93.3% in Q1, fueled by leasing a 1.1-million-square-foot logistics facility to a global tenant, securing $6 million in annual base rent.
Debt Reduction and Upgraded Outlook
LXP continues to strengthen its balance sheet, reducing its net debt-to-adjusted EBITDA ratio to 5.8, down 0.4 points year-over-year. The company repurchased $28 million in preferred securities at a discount. For full-year 2025, LXP narrowed its adjusted FFO guidance to $0.62–$0.64 per share and anticipates year-end occupancy of 97–99%. With a 6.69% dividend yield and a Sunbelt-focused portfolio, LXP remains well-positioned to capitalize on manufacturing relocation trends.