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LXP Industrial Trust

LXP
51
REIT - Industrial · Real Estate
Price
$60.85
+2.34 (+4.00%)
Market Cap
$3.59B
Exchange
NYSE
Winston Score
51
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+1.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 57.5M (2021) → 58.6M (2025)

LXP Industrial Trust is a real estate investment trust (REIT) that owns and leases large industrial buildings across the United States. These properties include warehouses and distribution centers used by companies that need space to store and ship goods. LXP focuses specifically on single-tenant industrial properties, meaning one company typically rents an entire building.

LXP makes money by collecting rent from tenants who sign long-term leases, often lasting 10 years or more. The company operates primarily in Sun Belt markets like Texas, Georgia, and the Carolinas, where industrial demand has been growing. With a market cap of around $3.6 billion, LXP is a mid-sized player in a competitive sector that includes larger rivals like Prologis. The key growth driver is continued demand for warehouse and logistics space tied to e-commerce and supply chain reshoring, but rising interest rates and slowing leasing activity pose meaningful risks to property values and future rent growth.

Winston Score History

Score breakdown

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Quality

Gross Margin
80.5%
Premium pricing power — 80.5% gross margin
Operating Margin
13.9%
Healthy — 13.9% operating margin
ROCE
0.4%
Weak — 0.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-3.8%
Shrinking sales (-3.8% YoY)
EPS YoY
+51.3%
Earnings growing fast (51.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
201%
Turns 201% of profit into real cash
FCF Margin
46.9%
Converts sales into free cash efficiently (46.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.63
Moderate — manageable debt (0.63)
Interest Cover
0.85x
Dangerous — barely covers interest (0.8x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
40.6x
Pricey — P/E 40.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
-88.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
4.56%
Healthy income — 4.56% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+317.8%
Dividend growing fast (317.8% YoY)

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