LXP Suspends Dividend, Posts Q2 Revenue Growth Amid $5.2B Buyout
LXP sits 60% above its 52-week low of $38.2.
Summary
LXP Industrial Trust reported Q2 revenue growth driven by acquisitions and strong leasing, with Adjusted FFO of $0.84 per share, up 5% year-over-year. The company also announced the immediate suspension of its common dividend, a direct consequence of the pending $5.2 billion all-cash acquisition by Brookfield and CPP Investments at $61.20 per share. This follows the July 20 announcement of the deal, which valued the REIT at a premium. The dividend halt and cessation of guidance are standard merger conditions, but the solid operating results—including a 43% rent increase on new leases—underscore the portfolio's strength. With the stock trading near the offer price, the key remaining catalyst is shareholder approval and deal closure, expected in the coming months.
At the time of this announcement, LXP was trading at $61.09 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $38.20 to $61.61. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.