LXP has a unique opportunity given the quality of its portfolio and current undervaluation to drive strong long-term shareholder value. However, the current management team and Board has consistently failed to deliver.
LXP has a unique opportunity given the quality of its portfolio and current undervaluation to drive strong long-term shareholder value. However, the current management team and Board has consistently failed to deliver.
Consistent Underperformance
As a significant shareholder of LXP Industrial Trust, Land & Buildings believes the Company has meaningful opportunities in front of it. Transaction volume for the type of industrial warehouse assets that make up the bulk of LXP’s portfolio is set to reach a record level in 2021. Secular and cyclical drivers of demand signal that strong rent growth is on pace to continue, and record leasing and absorption levels have pushed vacancies to all-time lows. In short, LXP should be ideally positioned to take advantage of the perfect market to help it finally close the consistent discount between the Company’s net asset value and its share price.
Unfortunately, we are highly concerned by the state of LXP and believe urgent change is required.
We believe LXP’s actions reveal a Board that has:
The Path Forward
LXP has a unique opportunity given the quality of its portfolio and current undervaluation to drive strong long-term shareholder value. However, the current management team and Board has consistently failed to deliver.
There is an immediate need for the following, in our view:
It is clear to us that neither this management team nor Board have the track record or a plan for the shares to trade at the private market value of the real estate, which is substantially higher than the current share price. We believe the addition of truly independent, highly qualified candidates to the Board is essential to help close the gap to NAV and to ensure shareholders’ interests remain paramount in the boardroom.
Latest News
November 15, 2021
Letter to Shareholders
Land & Buildings, a significant shareholder of LXP Industrial Trust issued an open letter to LXP shareholders detailing why it believes new independent voices – selected with input from shareholders, not appointed by the incumbent trustees – are urgently needed in the boardroom to help the Company reverse its track record of consistent underperformance under the current Board and management team. To that end, Land & Buildings announced in the letter that it intends to nominate highly qualified candidates, including Land & Buildings’ Jonathan Litt, for election to the Lexington Board of Trustees at the upcoming 2022 Annual Meeting of Shareholders.