Riding The Wave Of Industrial Growth: Analyst Upgrades LXP Industrial

KeyBanc Capital Markets analyst Todd M. Thomas upgraded LXP Industrial Trust LXP to Overweight from Sector Weight with a price target of $12.
The analyst believes LXP's single-tenant, net lease industrial portfolio is doing well and expects steady future growth, with leasing spreads below 20% (around 33% of annualized base rate) scheduled to expire through 2026.
Also, Thomas expects development leasing to continue improving and support core growth.
However, the analyst sees the four non-core office assets (especially 1701 Market Street, Philadelphia) as an overhang, and projects disposition in the near term should benefit the company.
Thomas raised the estimate for FFO per share to $0.70 (from $0.69) vs. a consensus of $0.68 for 2023 on expected higher net operating income run-rate in the quarter.
The analyst reduced FFO per share estimate to $0.70 (from $0.71) versus a consensus of $0.71 for 2024 on projected dilution from non-core office asset sales.
Earlier this month, LXP reported Q1 2023 revenues of $85.1 million, beating the consensus of $81.3 million.
Price Action: LXP shares are trading higher by 1.73% at $9.99 on the last check Monday.

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