LXP Industrial Trust (NYSE:LXP) Q2 2023 Earnings Call Transcript

Beth Boulerice: Exactly. That’s exactly what it is Jim. We’ve added in the TI amounts now.

James Kammert: Okay. Okay. I just want to make sure why the cost went up particularly on cotton but it sounding because the yield there is pretty attractive. And then actually it was just building off Mitch’s question similar slot. What is the typical, sort of, renewal notice requirement on the part of representative a seven-year lease how quickly or when do the tenants have to say prior to expiration to tell LXP what their intentions are? .

James Dudley: It’s typically 9 months to 12 months.

James Kammert: It’s typically. Okay. Helpful. Thank you.

James Dudley: Thanks, Jim.

Operator: Your next question comes from the line of Jon Petersen with Jefferies LLC. Please go ahead.

Jon Petersen: Hi. Good morning. Curious on the just looking at the renewals for next year. Are you seeing any change in tenant behavior on these lease renewals? Like are they coming to you as early as they have over the last couple of years to renewal, or are they kind of wait and see and — is there any change in the escalators that you guys are able to negotiate on renewals? And where does that stand right now?

James Dudley: Sure. It’s James again. It varies. We have some that are proactive and some that wait until the last minute. And in most circumstances we still have the upper hand. So we’re fine to wait. But the ones who are savvy, we want to make sure that they have the ability to renew and they’ll potentially give up the space by missing their window. So it’s typically as we kind of discussed so far conversations around that renewal window. And then from an escalator perspective, we continue to see escalators push towards 4% I would say on average across our markets and portfolio when we’re doing a mark-to-market, we’re also improving on the escalators on probably on average to 3.5% though in some cases we’ve gotten to 4%.

Jon Petersen: Okay. That’s helpful. That’s all from me. Thanks.

Operator: And there are no further questions at this time. I will turn the call to Will Eglin.

Will Eglin: We appreciate everyone joining our call this morning. And in summary, we continue to produce strong financial and operational performance, and are successfully executing on our strategy with progress in all areas of our business. We believe, we are poised for strong performance going forward and are excited to continue to producing great outcomes for our shareholders. Please visit our website or contact Heather Gentry, if you would like to receive our quarterly materials. And in addition as always, you may contact me or the other members of senior management with any questions. Thanks again for joining us.

Operator: This concludes today’s conference call. We thank you for joining. You may now disconnect your lines.