J.P. Morgan cuts LXP Industrial Trust's PT on higher discount rate

LXP Industrial Trust

30/12/2022 12:02

** J.P. Morgan cuts PT on real estate investment trust
(REIT) LXP Industrial Trust  LXP.N  to $11 from $12; maintains
"neutral" rating 
    ** New PT is ~8% higher than stock's last close
        ** Brokerage cuts PT of LXP due to higher equity
discount rate, which is the interest rate used to determine the
present value of future cash flows; a higher discount rate
implies lower present value of future cash flows
  
    ** Still, discount rate applied to LXP is the lowest of
peers - brokerage 
    ** Adds co has completed its multi-year transition from an
office to industrial REIT, shedding off-office properties 
    ** Move to being an industrial REIT, despite being dilutive
to earnings, has been right, with lesser capital expenditure and
higher lease spreads - brokerage 
    ** Adds that process to sell co in 2022, though terminated,
could re-emerge anytime 
    ** As of last close, stock is down ~35% YTD 
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))