LXP Industrial Trust
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
LXP$61.18+0.0%Stored close · as of Oct 30, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001444838-24-000116
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000910108-25-000020
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 92 previous paragraphs and 72 current paragraphs.
33 unchanged; 29 reworded; 10 added; 28 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
As of March 31, 2025, we had equity ownership interests in approximately 118 consolidated real estate properties, located in 16 states and containing approximately 57.3 million square feet of rentable space, which were approximately 93.3% leased based upon net rentable square feet.
Current report
First Quarter 2025 Transaction Summary.
Current report
•Commenced redevelopment of 250,000 square foot warehouse facility located in Richmond, VA.
Current report
Dispositions.
Current report
•Repaid $50.0 million of the $300.0 million term loan.
Current report
Financings. The following presents our outstanding unsecured debt obligations as of March 31, 2025:
Current report
(1) Spread includes a 10 basis point daily SOFR adjustment.
Current report
(2) Repaid $50.0 million of the Term Loan, resulting in a loss on debt satisfaction of $0.4 million. The SOFR portion of the interest rate was swapped to 4.31% per annum until January 31, 2027.
Current report
(3) Interest rate spread contains a 0.26% SOFR adjustment plus a spread of 170 basis points through maturity. $82.5 million is swapped at an average interest rate of 5.20% from October 30, 2024 to October 30, 2027. As of March 31, 2025, the weighted average interest rate of the Trust Preferred Securities was 5.58%, which includes the effect of the interest rate swaps.
Current report
The increase in general and administrative expense of $0.9 million was primarily due to the increase in employee compensation, corporate rent expense and a decrease in capitalized payroll.
Removed paragraphs (28)
Previous report
As of September 30, 2024, we had equity ownership interests in approximately 118 consolidated properties, located in 17 states and containing an aggregate of approximately 58.2 million square feet of space, approximately 93.2% of which was leased. During the nine months ended September 30, 2024, we disposed of our remaining office properties and our portfolio is 100% industrial.
Previous report
Third Quarter 2024 Transaction Summary.
Previous report
•Leased and placed into service a 250,020 square foot speculative development facility located in Columbus, Ohio.
Previous report
•Placed into service the remaining portion of a vacant facility containing approximately 81,000 square feet one year after the completion of base building construction.
Previous report
•Invested an aggregate of $27.5 million in development activities and $7.6 million in a value-add opportunity at the Orlando, Florida asset.
Previous report
•Entered into forward interest rate swap agreements to effectively fix the interest rate related to an aggregate of $250.0 million of the term loan at an average interest rate of 4.31% from January 31, 2025 to January 31, 2027.
Previous report
•Entered into forward interest rate swap agreements to effectively fix the interest rate related to an aggregate of $82.5 million of the Trust Preferred Securities at an average interest rate of 5.20% from October 30, 2024 to October 30, 2027.
Previous report
Capital Recycling:
Previous report
During the nine months ended September 30, 2024, we completed and placed in service the following assets:
Previous report
(1) During the third quarter of 2024, the remaining portion of the facility, representing 58% of the facility, was placed in service vacant one year after the completion of base building construction. During the fourth quarter of 2023, a 57,690 square foot portion of the facility, representing 42% of the facility, was occupied by a tenant and placed into service.
Previous report
Financings. The following senior notes were outstanding as of September 30, 2024:
Previous report
A summary of the maturity dates and interest rates of our unsecured credit agreement, as of September 30, 2024, are as follows:
Previous report
(2) The Term SOFR portion of the interest rate was swapped to obtain a current fixed-rate of 2.722% per annum, until January 31, 2025 and an aggregate amount of $250.0 million of the term loan is swapped to obtain an effective interest rate of 4.31% from January 31, 2025 to January 31, 2027.
Previous report
During 2007, we issued $200.0 million in Trust Preferred Securities, which bore interest at a fixed-rate of 6.804% through April 2017 and, thereafter, bears interest at a variable rate of three-month SOFR plus a 26 basis point adjustment plus 170 basis points. The interest rate on an aggregate amount of $82.5 million of the Trust Preferred Securities is swapped to obtain an effective interest rate of 5.20% from October 30, 2024 to October 30, 2027. These securities are (1) classified as liabilities, (2) due in 2037 and (3) currently redeemable by us. As of September 30, 2024, and 2023, there were $129.1 million of these securities outstanding.
Previous report
The decrease in other revenue of $0.6 million was primarily due to consent income recognized in 2023 and a decrease in parking income due to the sale of the Philadelphia, PA office property in 2023.
Previous report
The increase in general and administrative expense of $2.4 million was primarily due to severance expense incurred after the completion of our portfolio transformation during the three months ended September 30, 2024.
Previous report
The decrease in equity in earnings (losses) of non-consolidated entities of $1.2 million was primarily related to recognizing our share of gains on sale of one property from the NNN JV in 2023 in the amount of $1.0 million.
Previous report
Nine months ended September 30, 2024 compared with nine months ended September 30, 2023. The decrease in net income attributable to common shareholders of $4.3 million was primarily due to the items discussed below.
Previous report
The decrease in other revenue of $2.1 million was primarily due to a decrease in parking income due to the sale of the Philadelphia, PA office property in 2023.
Previous report
The increase in depreciation and amortization expense of $6.9 million was primarily due to properties completed and placed in service in 2023 and 2024.
Previous report
The increase in general and administrative expense of $2.9 million was primarily due to severance expense incurred after the completion of our portfolio transformation during the nine months ended September 30, 2024.
Previous report
The increase in interest and amortization expense of $18.1 million was primarily due to a $15.9 million increase related to the 2028 Senior Notes that were issued in November 2023. Additionally, capitalized interest decreased $5.2 million primarily due to less development activity in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. These amounts were offset by a $2.6 million decrease in interest expense related to the 2024 Senior Notes that were paid off in June 2024 at maturity.
Previous report
The decrease in impairment charges of $16.5 million was primarily related to impairment charges recognized on office properties during the nine months ended September 30, 2023. There were no impairment charges recognized during the nine months ended September 30, 2024.
Previous report
The increase in gains on sales of properties of $4.4 million was related to the timing of property dispositions.
Previous report
The decrease in equity in earnings (losses) of non-consolidated entities of $6.0 million was primarily due to recognizing our share of a gain on sale of property related to BSH Lessee L.P. in 2023 that resulted in an increase in equity in earnings of $4.8 million.
Previous report
(1) Transaction costs including costs associated with terminated investments, such as non-refundable deposits and legal costs.
Previous report
(2) Includes non-recurring expenses for severance expense.
Previous report
(3) Includes OP units other than OP units that were held by us.
Reworded paragraphs (29)
Previous wording
Unless stated otherwise or the context otherwise requires, when we use the terms the “Company,” the “Trust,” “LXP,” “we,” “our,” and “us,” we refer collectively to LXP Industrial Trust and its consolidated subsidiaries. All of the Company's interests are held, and all of the property operating activities are conducted through special purposes entities, which we refer to as property owner subsidiaries or lender subsidiaries and are separate and distinct legal entities, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. References herein to ‘‘this Quarterly Report” are to this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024. The results of operations contained herein for the three and nine months ended September 30, 2024 and 2023 are not necessarily indicative of the results that may be expected for a full year.
Current wording
Unless stated otherwise or the context otherwise requires, when we use the terms the “Company,” the “Trust,” “LXP,” “we,” “our,” and “us,” we refer collectively to LXP Industrial Trust and its consolidated subsidiaries. All of the Company's interests are held, and all of the property operating activities are conducted through special purposes entities, which we refer to as property owner subsidiaries or lender subsidiaries and are separate and distinct legal entities, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. References herein to ‘‘this Quarterly Report” are to this Quarterly Report on Form 10-Q for the three months ended March 31, 2025. The results of operations contained herein for the three months ended March 31, 2025 and 2024 are not necessarily indicative of the results that may be expected for a full year.
Previous wording
The following is a discussion and analysis of the unaudited condensed consolidated financial condition and results of operations of LXP Industrial Trust for the three and nine months ended September 30, 2024 and 2023, and significant factors that could affect its prospective financial condition and results of operations. This discussion should be read together with the accompanying unaudited condensed consolidated financial statements of the Company included herein and notes thereto and with the consolidated financial statements and notes thereto included in the Company's most recent Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on February 15, 2024, which we refer to as the Annual Report. Historical results may not be indicative of future performance.
Current wording
The following is a discussion and analysis of the unaudited condensed consolidated financial condition and results of operations of LXP Industrial Trust for the three months ended March 31, 2025 and 2024, and significant factors that could affect its prospective financial condition and results of operations. This discussion should be read together with the accompanying unaudited condensed consolidated financial statements of the Company included herein and notes thereto and with the consolidated financial statements and notes thereto included in the Company's most recent Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on February 13, 2025, which we refer to as the Annual Report. Historical results may not be indicative of future performance.
Previous wording
Our portfolio is primarily Class A real estate investments focused in our target markets within the Sunbelt and Midwest. We expect to grow in these markets by executing on our development pipeline and opportunistically acquiring facilities in these markets. However, increased financing costs continue to negatively impact transaction activity and development starts in our target markets and the markets where we own properties. Due to this, the current key drivers to growth in our revenue are leasing our vacant development properties and mark-to-market of our lease rollover.
Current wording
Our portfolio is primarily Class A warehouse and distribution real estate investments focused in our 12 target markets within the Sunbelt and lower Midwest. We expect to grow in these markets by executing on our development pipeline, including through build-to-suits, and opportunistically acquiring facilities in these markets, including through capital recycling. However, increased financing costs continue to negatively impact transaction activity and development starts in our target markets and the markets where we own properties. Due to this, the current key drivers to growth in our revenue are leasing our vacant development properties and mark-to-market of our lease rollover.
Previous wording
•Entered into a second generation new lease and lease extensions encompassing 0.5 million square feet. The average fixed rent on the second generation new lease and extended leases was $7.31 per square foot compared to the average fixed rent on these leases before extension of $5.29 per square foot. The weighted-average cost of tenant improvements and lease commissions was $3.25 per square foot for the second generation new lease and extended leases.
Current wording
•Entered into lease extensions encompassing 1.1 million square feet. The average fixed rent on extended leases was $7.85 per square foot compared to the average fixed rent on these leases before extension of $6.37 per square foot. The weighted-average cost of tenant improvements and lease commissions was $1.19 per square foot for the extended leases.
Previous wording
•Disposed of our interest in one facility for a gross sale price of $28.6 million in a non-target market.
Current wording
•Disposed of our interest in one facility for a gross sale price of $35.0 million in a non-target market.
Previous wording
Our critical accounting estimates are included in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to these estimates during the nine months ended September 30, 2024.
Current wording
Our critical accounting estimates are included in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to these estimates during the three months ended March 31, 2025.
Previous wording
At September 30, 2024, our secured debt was $56.9 million compared to $60.9 million at December 31, 2023. Our property owner subsidiaries do not have mortgage maturities with balloon payments due until 2031. With respect to mortgages encumbering properties where the expected lease rental revenues are sufficient to provide an estimated property value in excess of the mortgage balance, we believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand ($55.0 million at September 30, 2024), property sale proceeds and borrowing capacity on our unsecured credit facility ($600.0 million at September 30, 2024, subject to covenant compliance).
Current wording
At March 31, 2025, our secured debt was $53.6 million compared to $54.9 million at December 31, 2024. Our property owner subsidiaries do not have mortgage maturities with balloon payments due until 2031. With respect to mortgages encumbering properties where the expected lease rental revenues are sufficient to provide an estimated property value in excess of the mortgage balance, we believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand ($70.9 million at March 31, 2025), property sale proceeds and borrowing capacity on our unsecured credit facility ($600.0 million at March 31, 2025, subject to covenant compliance).
Previous wording
Cash flows from operations were $142.0 million for the nine months ended September 30, 2024 as compared to $153.5 million for the nine months ended September 30, 2023. The decrease was primarily related to an increase in interest expense, a decrease in distributions from non-consolidated entities and the payment of a lease concession to a tenant. The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on debt and payment of operating and general and administrative costs. We believe the net-lease structure of the leases encumbering a majority of the properties in which we have an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. The collection and timing of tenant rents are closely monitored by management as part of our cash management program.
Current wording
Cash flows from operations were $39.0 million for the three months ended March 31, 2025 as compared to $38.9 million for the three months ended March 31, 2024. The increase was primarily related to increased rental revenue related to acquired properties and placing development properties into service and the receipt of a lease termination fee, partially offset by a decrease in cash flow due to property sales and vacancies. The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on debt and payment of operating and general and administrative costs. We believe the net-lease structure of the leases encumbering a majority of the properties in which we have an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. The collection and timing of tenant rents are closely monitored by management as part of our cash management program.
Previous wording
Net cash provided by (used in) in investing activities totaled $64.4 million and $(46.5) million during the nine months ended September 30, 2024 and 2023, respectively. Cash provided by investing activities in 2024 related primarily to redeeming investments in held-to-maturity securities, proceeds from property sales and distributions received from non-consolidated entities, changes in real estate deposits, net, offset by acquisitions of real estate, investments in real estate under construction, capital expenditures, lease costs, and investments in non-consolidated entities. Cash used in investing activities in 2023 primarily related to investments in real estate under construction and capital expenditures, offset by net proceeds received from the disposition of real estate and distributions from non-consolidated entities.
Current wording
Net cash provided by (used in) in investing activities totaled $23.2 million and $(27.7) million during the three months ended March 31, 2025 and 2024, respectively. Cash provided by investing activities in 2025 related primarily to proceeds from a property sale, offset by investments in real estate under construction, capital expenditures, lease costs, investments in non-consolidated entities and changes in real estate deposits, net. Cash used in investing activities in 2024 related primarily to investments in real estate under construction, capital expenditures, lease costs, investments in non-consolidated entities and changes in real estate deposits, net, partially offset by distributions from non-consolidated entities in excess of accumulated earnings.
Previous wording
Net cash used in financing activities totaled $350.6 million and $125.9 million during the nine months ended September 30, 2024 and 2023, respectively. Cash used in financing activities in 2024 was primarily related to the repayment of the 4.40% Senior Notes due 2024, dividends, debt service payments and the purchase of noncontrolling interests, offset by contributions from noncontrolling interests.
Current wording
Net cash used in financing activities totaled $93.1 million and $47.2 million during the three months ended March 31, 2025 and 2024, respectively. Cash used in financing activities in 2025 was primarily related to the partial repayment of the Term Loan, dividends, and debt service payments, offset by contributions from noncontrolling interests.
Previous wording
We may sell up to $350.0 million common shares over the term of the program. We did not sell shares under the ATM program during the nine months ended September 30, 2024 and 2023, respectively.
Current wording
We may sell up to $350.0 million common shares over the term of the program. We did not sell shares under the ATM program during the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Share Repurchase Program. In August 2022, our Board of Trustees authorized the repurchase of an additional 10.0 million common shares under our share repurchase program with no expiration date. We did not repurchase any common shares during the nine months ended September 30, 2024 and 2023. At September 30, 2024, 6.9 million common shares remained available for repurchase under this authorization.
Current wording
Share Repurchase Program. In August 2022, our Board of Trustees authorized the repurchase of an additional 10.0 million common shares under our share repurchase program with no expiration date. We did not repurchase any common shares during the three months ended March 31, 2025 and 2024. At March 31, 2025, 6.9 million common shares remained available for repurchase under this authorization.
Previous wording
Dividends. Dividends paid to our common and preferred shareholders were $118.6 million and $114.0 million in the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Dividends. Dividends paid to our common and preferred shareholders were $41.0 million and $39.5 million in the three months ended March 31, 2025 and 2024, respectively.
Previous wording
We declared a quarterly dividend of $0.13 per common share during the nine months ended September 30, 2024, which is an increase of $0.005 per common share from the $0.125 per common share quarterly dividend declared during the nine months ended September 30, 2023.
Current wording
We declared a quarterly dividend of $0.135 per common share during the three months ended March 31, 2025, which is an increase of $0.005 per common share from the $0.13 per common share quarterly dividend declared during the three months ended March 31, 2024.
Previous wording
The senior notes are unsecured and requires interest payments semi-annually in arrears. We may redeem the senior notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the senior notes being redeemed plus a make-whole premium.
Current wording
The senior notes are unsecured and require interest payments semi-annually in arrears. We may redeem the senior notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the senior notes being redeemed plus a make-whole premium.
Previous wording
(1) Maturity date of the revolving credit facility can be extended to July 2027 at our option, subject to certain conditions. The interest rate includes a 0.10% adjustment. The interest rate spread ranges from SOFR plus 0.725% to 1.400%, and the revolving credit facility allows for further reductions upon the achievement of to-be-determined sustainability metrics. At September 30, 2024, we had no borrowings outstanding and availability of $600,000, subject to covenant compliance.
Current wording
We have 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%, and the revolving credit facility allows for further reductions upon the achievement of to-be-determined sustainability metrics. We had no borrowings under the $600,000 revolving credit facility as of March 31, 2025 and December 31, 2024.
Previous wording
As of September 30, 2024, the aggregate estimated total costs of our consolidated development projects included in investment in real estate under construction are $67.0 million. We expect to incur approximately $47.5 million of additional costs, excluding noncontrolling interests' share and potential developer incentive fees or partner buyouts, to fund all of the remaining costs for our consolidated development project commitments. However, the risks associated with development, including supply chain issues, could adversely impact our estimates. As of September 30, 2024, we had three consolidated and two non-consolidated subsidiaries that owned land parcels held for industrial development. We are unable to estimate the timing of any required fundings for potential development projects on these parcels.
Current wording
As of March 31, 2025, the aggregate amount of our consolidated development and redevelopment projects included in investment in real estate under construction are $17.5 million. We expect to incur approximately $41.0 million of additional costs, excluding noncontrolling interests' share and potential developer incentive fees or partner buyouts, to fund all of the remaining costs for our consolidated development project commitments, including vacation development projects placed in service. However, the risks associated with development, including supply chain issues, which may be exacerbated as a result of international trade conflicts associated with tariffs, could adversely impact our estimates. As of March 31, 2025, we had three consolidated and two non-consolidated subsidiaries that owned land parcels held for industrial development. We are unable to estimate the timing of any required fundings for potential development projects on these parcels.
Previous wording
Three months ended September 30, 2024 compared with three months ended September 30, 2023. The decrease in net income attributable to common shareholders of $6.4 million was primarily due to the items discussed below.
Current wording
Three months ended March 31, 2025 compared with three months ended March 31, 2024. The increase in net income attributable to common shareholders of $19.2 million was primarily due to the items discussed below.
Previous wording
The increase in rental revenue of $0.7 million was primarily due to an aggregate increase in rental revenue of $5.5 million primarily due to properties placed in service and leasing, partially offset by a decrease in rental revenue of $4.8 million due to property sales.
Current wording
The increase in rental revenue of $2.7 million was primarily due to an aggregate increase in rental revenue of $8.4 million primarily due to properties placed in service, acquisitions and leasing, partially offset by a decrease in rental revenue of $5.7 million due to property sales and vacancies.
Previous wording
The increase in depreciation and amortization expense of $2.8 million was primarily due to properties completed and placed in service in 2023 and 2024.
Current wording
The increase in depreciation and amortization expense of $3.0 million was primarily due to properties acquired and/or completed and placed in service.
Previous wording
The increase in non-operating income of $6.4 million was primarily due to an increase in interest income earned from investing in short-term investments.
Current wording
The decrease in non-operating income of $3.2 million was primarily due to a decrease in interest income earned from investing in short-term investments.
Previous wording
The increase in interest and amortization expense of $5.1 million was primarily due to a $5.3 million increase related to the 2028 Senior Notes that were issued in November 2023. Capitalized interest decreased $2.4 million primarily due to less development activity in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. These amounts were partially offset by a $2.2 million decrease in interest expense related to the 2024 Senior Notes that were paid off in June 2024 at maturity.
Current wording
The decrease in interest and amortization expense of $0.7 million was primarily due to a $2.2 million decrease in interest expense related to the 2024 Senior Notes that were repaid in full in 2024 and a decrease of $0.6 million related to the Trust Preferred Securities. These amounts were partially offset by a $0.4 million increase in interest expense related to the Term Loan and a decrease in capitalized interest of $1.7 million due to properties placed into service during 2024.
Previous wording
The increase in gains on sales of properties of $3.9 million was related to the timing of property dispositions.
Current wording
The increase in gain on sale of real estate of $24.6 million was related to the disposition of one property in 2025 and no dispositions in 2024.
Previous wording
The increase in net (income) loss attributable to noncontrolling interests of $1.0 million is primarily related to the recognition of the noncontrolling interests' share of operating losses related to development projects placed into service vacant during 2023 and 2024.
Current wording
The increase in net loss attributable to noncontrolling interests of $0.5 million is primarily related to the recognition of the noncontrolling interests' share of operating losses related to development projects placed into service vacant during 2024.
Previous wording
The following presents our consolidated same-store NOI, for the three and nine months ended September 30, 2024 and 2023 ($000's):
Current wording
The following presents our consolidated same-store NOI, for the three months ended March 31, 2025 and 2024 ($000's):
Previous wording
Our same-store NOI increased for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 by 5.4% and 5.0%, respectively, primarily due to an increase in cash base rents. As of each September 30, 2024 and 2023, our historical same-store square footage leased was 99.2%.
Current wording
Our same-store NOI increased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 by 5.2%, primarily due to an increase in cash base rents. As of March 31, 2025 and March 31, 2024, our historical same-store square footage leased was 99.2% and 98.9%, respectively.
Previous wording
We present FFO available to common shareholders and unitholders - basic and also present FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period. We also present Adjusted Company FFO available to all equityholders and unitholders - diluted, which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio and not comparable from period to period. We believe this is an appropriate presentation as it is frequently requested by securities analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.
Current wording
We present FFO available to common shareholders - basic and also present FFO available to all equityholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period. We also present Adjusted Company FFO available to all equityholders - diluted, which adjusts FFO available to all equityholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio and not comparable from period to period. We believe this is an appropriate presentation as it is frequently requested by securities analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.
Previous wording
The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for the three and nine months ended September 30, 2024 and 2023 (unaudited and dollars in thousands, except share and per share amounts):
Current wording
The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and Adjusted Company FFO available to all equityholders for the three months ended March 31, 2025 and 2024 (unaudited and dollars in thousands, except share and per share amounts):
Previous wording
As of September 30, 2024, we had investments in various real estate entities with varying structures. The real estate investments owned by our institutional joint ventures are generally financed with non-recourse debt. Non-recourse debt is generally defined as debt whereby the lenders' sole recourse with respect to borrower defaults is limited to the value of the assets collateralized by the debt. The lender generally does not have recourse against any other assets owned by the borrower or any of the members or partners of the borrower, except for certain specified exceptions listed in the particular loan documents. These exceptions generally relate to “bad boy” acts, including fraud, prohibited transfers and breaches of material representations, and environmental matters. We have guaranteed such obligations for certain of our non-consolidated entities with respect to $450.5 million of such non-recourse debt. We believe the likelihood of making any payments under such guaranties is remote and we generally have an agreement from each partner to reimburse us for its proportionate share of any liability related to a guarantee trigger unless such trigger is caused solely by us.
Current wording
As of March 31, 2025, we had investments in various real estate entities with varying structures. The real estate investments owned by our institutional joint ventures are generally financed with non-recourse debt. Non-recourse debt is generally defined as debt whereby the lenders' sole recourse with respect to borrower defaults is limited to the value of the assets collateralized by the debt. The lender generally does not have recourse against any other assets owned by the borrower or any of the members or partners of the borrower, except for certain specified exceptions listed in the particular loan documents. These exceptions generally relate to “bad boy” acts, including fraud, prohibited transfers and breaches of material representations, and environmental matters. We have guaranteed such obligations for certain of our non-consolidated entities with respect to $432.3 million of such non-recourse debt. We believe the likelihood of making any payments under such guaranties is remote and we generally have an agreement from each partner to reimburse us for its proportionate share of any liability related to a guarantee trigger unless such trigger is caused solely by us.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The increase in rental revenue of $2.2 million was primarily due to an aggregate increase of $18.1 million in rental revenue primarily due to properties placed in service and leasing, partially offset by a decrease of $16.0 million in rental revenue due to property sales.
Previous report — wording carried elsewhere
The increase in net (income) loss attributable to noncontrolling interests of $2.3 million is primarily related to the recognition of the noncontrolling interests' share of operating losses related to development projects placed into service vacant during 2023 and 2024.