LXP Industrial TrustLXP

LXP Industrial Trust Debt Disclosure

10-KFiled Feb 12, 20263 min read
Debt
The Company had the following mortgages and notes payable outstanding as of December 31, 2025 and 2024:
December 31, 2025December 31, 2024Interest RateMaturity Date
SECURED DEBT:
Mortgages:
Goodyear, AZ$38,610 $39,418 4.290 %
(1)
August 2031
Long Island City, NY11,336 16,097 3.500 %
(1)
March 2028
Principal balance outstanding49,946 55,515 
Unamortized debt issuance costs(405)(585)
Total Mortgages and notes payable, net$49,541 $54,930 
UNSECURED DEBT:
Term Loan$250,000 $300,000 
SOFR+1.10%
(2)(3)
January 2027
Senior Notes due 2028160,000 300,000 6.750 %
(4)
November 2028
Senior Notes due 2030
400,000 400,000 2.700 %September 2030
Senior Notes due 2031
400,000 400,000 2.375 %October 2031
Trust Preferred Securities100,995 129,120 
Three Month SOFR+1.96%
(5)(6)
April 2037
Principal balance outstanding$1,310,995 $1,529,120 
Unamortized debt discount(2,520)(3,731)
Unamortized debt issuance cost(6,616)(10,309)
Total unsecured debt, net$1,301,859 $1,515,080 
Total debt obligations
$1,351,400 $1,570,010 
(1)The weighted-average interest rate at December 31, 2025 and 2024 was approximately 4.1%.
(2)Spread includes a 0.10% daily SOFR adjustment.
(3)In March 2025, the Company repaid $50,000 of the Term Loan, resulting in a loss on debt satisfaction of $350. As of December 31, 2025, the SOFR portion of the interest rate was swapped for a fixed interest rate of 4.31% per annum until January 31, 2027.
(4)In October 2025, the Company completed a cash tender offer to repurchase $140,000 of the principal amount on the 6.750% notes due 2028, resulting in a loss on debt satisfaction of $12,602.
(5)Interest rate spread contains a 0.26% SOFR adjustment plus a spread of 1.70% through maturity. $82,500 is swapped at an average interest rate of 5.20% from October 30, 2024 to October 30, 2027. As of December 31, 2025, the weighted-average interest rate of the Trust Preferred Securities was 5.31%, which includes the effect of the interest rate swaps.
(6)In June 2025, the Company repurchased $28,125 of the Trust Preferred Securities for a cash payment of $26,940, including accrued interest of $215, which resulted in a gain on debt satisfaction, net of $1,143, including a write off of $257 in deferred financing costs. The Trust Preferred Securities, which are classified as debt, are redeemable by the Company.
The Company has an unsecured credit agreement with KeyBank National Association, as agent for a revolving credit facility of up to $600,000, subject to covenant compliance. The revolving credit facility matures in July 2026 and can be extended to July 2027, subject to certain conditions. The interest rate ranges from SOFR (plus a 0.10% index adjustment) plus an interest rate spread ranging from 0.725% to 1.400%. The Company had no borrowings under the $600,000 revolving credit facility as of December 31, 2025 and December 31, 2024.
The Company was compliant with all applicable financial covenants contained in its corporate-level debt agreements at December 31, 2025.
Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments.
Scheduled principal and balloon payments for the secured and unsecured debt for the next five years and thereafter are as follows:
Year ending December 31,Total
2026$5,773 
2027255,984 
2028162,223 
2029960 
2030401,002 
Thereafter534,999 
1,360,941 
Unamortized debt discount(2,520)
Unamortized debt issuance costs(7,021)
$1,351,400 
In addition, the Company capitalized $370, $3,884 and $11,059 of interest expense for the years ended 2025, 2024 and 2023, respectively.

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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