LXP Industrial TrustLXP

LXP Industrial Trust Income Taxes Disclosure

10-KFiled Feb 12, 20263 min read
Income Taxes
The provision for income taxes relates primarily to the taxable income of the Company's TRSs. The earnings, other than those in TRSs, of the Company are not generally subject to federal income taxes at the Company level due to the REIT election made by the Company.
Income taxes have been provided for on the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities.
The Company's provision for income taxes for the years ended December 31, 2025, 2024 and 2023 is summarized as follows:
202520242023
Current:
Federal$— $— $— 
State and local(698)50 (774)
Deferred federal(1)77 71 
Total $(699)$127 $(703)

Net deferred tax asset of $165 and $166 are included in Other assets on the accompanying Consolidated Balance Sheets at December 31, 2025 and 2024, respectively. This net deferred tax asset relates primarily to a net operating loss carryforward.

As of December 31, 2025 and 2024, the Company had estimated net operating loss carry forward for income tax reporting purposes of $785 and $789, respectively.
The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:
202520242023
AmountPercentAmountPercentAmountPercent
Federal statutory income tax rate$(25,770)21.0 %$(9,636)21.0 %$(7,405)21.0 %
REIT income tax exemption25,769 (21.0)%9,713 (21.2)%7,476 (21.2)%
State and local taxes, net of federal benefit(162)0.1 %(170)0.4 %(236)0.7 %
Effective Tax Rate$(163)0.1 %$(93)0.2 %$(165)0.5 %
Franchise tax(536) N/A 220  N/A (538) N/A
Total $(699) N/A $127  N/A $(703) N/A

The Company's taxes paid for the years ended December 31, 2025, 2024 and 2023 is summarized as follows:
202520242023
Federal
$— $— $— 
State and local
Tennessee320 (369)397 
Texas223 212 206 
Ohio164 172 207 
Mississippi116 176 193 
North Carolina81 53 *
Massachusetts*18 *
Louisiana**(84)
Other19 12 32 
923274951
Foreign
— — — 
Total
$923 $274 $951 
* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.

A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2025, is as follows:
202520242023
Total dividends per share(1)
$2.70 $2.60 $2.50 
Ordinary income44.07 %55.65 %71.67 %
Qualifying dividend— %— %— %
Capital gain43.54 %41.58 %— %
Return of capital12.39 %2.77 %28.33 %
100.00 %100.00 %100.00 %
(1)Per share data has been adjusted for all periods presented to reflect the Reverse Split effective November 10, 2025. See Note 2, Summary of Significant Accounting Policies.
A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2025, is as follows:
202520242023
Total dividends per share(1)
$3.25 $3.25 $3.25 
Ordinary income50.30 %57.23 %100.00 %
Qualifying dividend— %— %— %
Capital gain49.70 %42.77 %— %
Return of capital— %— %— %
100.00 %100.00 %100.00 %
(1)Per share data has been adjusted for all periods presented to reflect the Reverse Split effective November 10, 2025. See Note 2, Summary of Significant Accounting Policies.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 24, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Mar 13, 2019
2017Feb 27, 2018
2016Mar 1, 2017
2015Feb 25, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

RevenueEarnings Per ShareFair ValueLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance