LXP Industrial Trust

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 six months ended June 30, 2024. The results of operations contained herein for the three and six months ended June 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 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.

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 six months ended June 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 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.

Previous wording

As of June 30, 2024, we had equity ownership interests in approximately 117 consolidated warehouse/distribution facilities, located in 17 states and containing an aggregate of approximately 58.2 million square feet of space, approximately 93.5% of which was leased. During the three months ended June 30, 2024, we disposed of our remaining office properties and our portfolio is 100% industrial.

Current wording

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 wording

The following summarizes our significant transactions during the three months ended June 30, 2024.

Current wording

The following summarizes our transactions during the three months ended September 30, 2024.

Previous wording

•Entered into a new lease and lease extensions encompassing 2.7 million square feet. The average fixed rent on the second generation new leases and extended leases was $5.22 per square foot compared to the average fixed rent on these leases before extension of $4.66 per square foot or $3.61 per square foot, excluding tenant improvement reimbursements as part of the expiring fixed rent in one lease. The weighted-average cost of tenant improvements and lease commissions was $2.15 per square foot for second generation new and extended leases.

Current 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.

Previous wording

•Two vacant warehouse/distribution facilities containing an aggregate of 1.2 million square feet were placed in service one year after the completion of base building construction.

Current wording

•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 wording

•Invested an aggregate of $34.7 million in development activities.

Current wording

•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 wording

During the six months ended June 30, 2024, we completed and placed in service the following warehouse/distribution assets:

Current wording

During the nine months ended September 30, 2024, we completed and placed in service the following assets:

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 six months ended June 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, 2023. There have been no material changes to these estimates during the nine months ended September 30, 2024.

Previous wording

At June 30, 2024, our secured debt was $58.2 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 ($48.7 million at June 30, 2024), property sale proceeds and borrowing capacity on our unsecured credit facility ($600.0 million at June 30, 2024, subject to covenant compliance).

Current 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).

Previous wording

Cash flows from operations were $77.4 million for the six months ended June 30, 2024 as compared to $92.6 million for the six months ended June 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 $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.

Previous wording

Net cash provided by (used in) in investing activities totaled $82.1 million and $(38.9) million during the six months ended June 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, 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 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 $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.

Previous wording

Net cash used in financing activities totaled $310.0 million and $85.0 million during the six months ended June 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 $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.

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 six months ended June 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 nine months ended September 30, 2024 and 2023, 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 six months ended June 30, 2024 and 2023. At June 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 nine months ended September 30, 2024 and 2023. At September 30, 2024, 6.9 million common shares remained available for repurchase under this authorization.

Previous wording

Dividends. Dividends paid to our common and preferred shareholders were $79.1 million and $76.1 million in the six months ended June 30, 2024 and 2023, respectively.

Current 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.

Previous wording

We declared a quarterly dividend of $0.13 per common share during the six months ended June 30, 2024, which is an increase of $0.005 per common share from the $0.125 per common share quarterly dividend declared during the six months ended June 30, 2023.

Current 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.

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 1.40%. At June 30, 2024, we had no borrowings outstanding and availability of $600.0 million, subject to covenant compliance.

Current 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.

Previous wording

(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.

Current wording

(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 wording

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. These securities are (1) classified as liabilities, (2) due in 2037 and (3) currently redeemable by us. As of June 30, 2024, and 2023, there were $129.1 million of these securities outstanding.

Current wording

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 wording

As of June 30, 2024, the aggregate estimated total costs of our consolidated development projects included in investment in real estate under construction are $117.3 million. We expect to incur approximately $65.6 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 June 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 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.

Previous wording

Three months ended June 30, 2024 compared with three months ended June 30, 2023. The increase in net income attributable to common shareholders of $13.5 million was primarily due to the items discussed below.

Current 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.

Previous wording

The increase in rental revenues of $1.5 million was primarily due to an aggregate increase of $13.4 million in base rental revenue and tenant reimbursement income primarily due to properties placed in service and leasing, partially offset by a decrease of $12.0 million in rental revenue due to property sales.

Current 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.

Previous wording

The decrease in other revenue of $1.0 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.

Current wording

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 wording

The increase in depreciation and amortization expense of $2.4 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 $2.8 million was primarily due to properties completed and placed in service in 2023 and 2024.

Previous wording

The increase in interest and amortization expense of $7.5 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 $2.6 million primarily due to less development activity in the three months ended June 30, 2024 compared to the three months ended June 30, 2023. These amounts were partially offset by a $0.4 million decrease in interest expense related to the 2024 Senior Notes that were paid off in June 2024 at maturity.

Current 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.

Previous wording

The increase in gains on sales of properties of $8.4 million was related to the timing of property dispositions.

Current wording

The increase in gains on sales of properties of $3.9 million was related to the timing of property dispositions.

Previous wording

Six months ended June 30, 2024 compared with six months ended June 30, 2023. The decrease in net income (loss) attributable to common shareholders of $2.0 million was primarily due to the items discussed below.

Current wording

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 wording

The decrease in other revenue of $1.6 million was primarily due to a decrease in parking income due to the sale of the Philadelphia, PA office property in 2023.

Current wording

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 wording

The increase in depreciation and amortization expense of $4.1 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 $6.9 million was primarily due to properties completed and placed in service in 2023 and 2024.

Previous wording

The increase in non-operating income of $2.6 million was primarily due to an increase in interest income earned from investing in short-term investments.

Current 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.

Previous wording

The increase in interest and amortization expense of $13.1 million was primarily due to a $10.6 million increase related to the 2028 Senior Notes that were issued in November 2023. Additionally, capitalized interest decreased $2.7 million primarily due to less development activity in the six months ended June 30, 2024 compared to the six months ended June 30, 2023. These amounts were offset by a $0.4 million decrease in interest expense related to the 2024 Senior Notes that were paid off in June 2024 at maturity.

Current wording

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 wording

The decrease in impairment charges of $16.5 million was primarily related to impairment charges recognized on office properties during the six months ended June 30, 2023. There were no impairment charges recognized during the six months ended June 30, 2024.

Current wording

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 wording

The decrease in equity in earnings (losses) of non-consolidated entities of $4.9 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.

Current wording

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 wording

Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for the entirety of the two comparable reporting periods. We define NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating same-store NOI, and accordingly same-store NOI may not be comparable to other REITs. Management believes that same-store NOI is a useful supplemental measure of our operating performance because same-store NOI excludes the change in NOI from acquired and disposed of properties and it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. However, same-store NOI should not be viewed as an alternative measure of our financial performance since it does not reflect the operations of our entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations. We believe that net income is the most directly comparable GAAP measure to same-store NOI.

Current wording

Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned, stabilized and included in our portfolio for the entirety of the two comparable reporting periods. We define NOI as operating revenues (rental income (less GAAP rent adjustments, non-cash income related to sales-type leases and lease termination income, net), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating same-store NOI, and accordingly same-store NOI may not be comparable to other REITs. Management believes that same-store NOI is a useful supplemental measure of our operating performance because same-store NOI excludes the change in NOI from acquired, expanded and disposed of properties and it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. However, same-store NOI should not be viewed as an alternative measure of our financial performance since it does not reflect the operations of our entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations. We believe that net income is the most directly comparable GAAP measure to same-store NOI.

Previous wording

The following presents our consolidated same-store NOI, for the three and six months ended June 30, 2024 and 2023 ($000's):

Current wording

The following presents our consolidated same-store NOI, for the three and nine months ended September 30, 2024 and 2023 ($000's):

Previous wording

Our same-store NOI increased for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 by 5.0% and 5.1%, respectively, primarily due to an increase in cash base rents. As of June 30, 2024 and 2023, our historical same-store square footage leased was 99.4% and 99.5%, respectively.

Current 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%.

Previous wording

Below is a reconciliation of net income (loss) to same-store NOI for periods presented ($000's):

Current wording

Below is a reconciliation of net income to same-store NOI for periods presented ($000's):

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. 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 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.

Previous wording

The following presents a reconciliation of net income (loss) 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 six months ended June 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 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):