KeyBanc reiterates Overweight rating on Lexington Realty Trust stock

Investing.com - KeyBanc maintained its Overweight rating and $10.00 price target on Lexington Realty Trust (NYSE:LXP) stock in a research note released Tuesday. According to InvestingPro data, analyst price targets for LXP range from $10.00 to $12.00, suggesting potential upside from current levels.

The firm cited potential leasing catalysts that could drive above-average earnings growth for the industrial REIT in 2026 and beyond, despite current sluggish conditions in the industrial leasing environment due to trade uncertainty, macroeconomic volatility, and supply/demand imbalances. The company maintains strong fundamentals with a healthy current ratio of 1.48 and revenue growth of 6.6% over the last twelve months.

KeyBanc highlighted approximately 2.5 million square feet of recently completed developments in lease-up, including two larger projects in Ocala, Florida, and Indianapolis, Indiana, expected to generate more than $16 million in annual base rent, translating to about $0.06 per share in funds from operations.

The research note mentioned management’s likely opportunistic approach to capital recycling and value extraction from its land bank exceeding 500 acres, while investors currently receive an above-average dividend yield of 6.9%, which is 280 basis points higher than both the subsector and REIT weighted average. InvestingPro data reveals the company has maintained dividend payments for 32 consecutive years and raised them for the past 5 years, demonstrating strong commitment to shareholder returns.Want deeper insights? InvestingPro subscribers have access to 8 additional key tips about LXP’s financial health and growth prospects.

According to KeyBanc, Lexington Realty Trust shares trade at approximately 39% discount to industrial REITs on 2025 adjusted funds from operations multiple and at an 8.0% implied capitalization rate, which the firm believes limits downside risk from current levels. InvestingPro’s Fair Value analysis suggests the stock is currently overvalued, though it maintains strong fundamentals with a gross profit margin of 82.7% and liquid assets exceeding short-term obligations.

In other recent news, LXP Industrial Trust reported strong financial results for the second quarter of 2025. The company achieved earnings per share (EPS) of $0.09, which was a substantial improvement over the forecasted loss of $0.015. Additionally, LXP Industrial Trust’s revenue reached $86.74 million, surpassing the projected $83.92 million. These figures highlight the company’s performance exceeding market expectations. While the stock showed a positive reaction in pre-market trading, the previous day’s decline is not a focus here. These developments reflect the company’s current financial health, as analyzed by various market observers. Investors may find these results significant as they consider the company’s future prospects.

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