LXP Industrial Trust Shareholders Approve $61.20-Per-Share Acquisition by Brookfield Asset Management and CPP Investments
WEST PALM BEACH, Fla. — Shareholders of LXP Industrial Trust (NYSE: LXP) approved the company's acquisition by Brookfield Asset Management (NYSE: BAM, TSX: BAM) and CPP Investments at a special meeting held Oct. 26, 2026, the company announced. Common shareholders will receive $61.20 in cash for each LXP common share, in a transaction valued at approximately $5.2 billion.
More than 99% of votes cast at the meeting were in favor of the merger, LXP said. The votes cast represented approximately 82% of the outstanding LXP common shares as of the record date.
Deal Terms and Closing Timeline for the LXP Industrial Trust Acquisition
The merger agreement was announced on July 20, 2026. Under its terms, common shareholders will receive $61.20 in cash per share. The transaction is expected to close on Nov. 2, 2026, subject to the satisfaction or waiver of the closing conditions in the merger agreement.
Upon closing, LXP's shares will no longer be listed on the New York Stock Exchange or any other public market. The company said the final voting results will be filed with the U.S. Securities and Exchange Commission as part of LXP's Form 10-Q for the quarter ended Sept. 30, 2026, after certification by LXP's inspector of election.
The $61.20 price represented a 12.3% premium to LXP's 30-day volume-weighted average price and a 19.8% premium to its 90-day volume-weighted average price as of July 17, 2026. It represented approximately a 4.6% premium to LXP's closing share price immediately before the transaction was announced. The approximately $5.2 billion transaction value includes LXP's net debt and preferred equity, making it larger than the equity purchase price alone.
LXP Portfolio and Operating Profile
LXP is a publicly traded real estate investment trust focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and Midwest. The company seeks to expand its portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.
As of June 30, 2026, LXP's stabilized portfolio was 97.4% leased, while same-store net operating income increased 0.5% year over year. During the second quarter, the company completed 2.3 million square feet of new and extended second-generation leases. Those transactions increased base rents by 43.1% and cash base rents by 26.2%, excluding two fixed-rate renewals.
On the balance sheet, LXP reported total consolidated debt of $1.4 billion, net debt to annualized adjusted EBITDA of 5.5 times, a weighted-average debt maturity of 4.5 years and a weighted-average interest rate of 3.6%.
Industrial Market Backdrop
The take-private comes as U.S. industrial fundamentals have shifted from the pandemic-era expansion. National industrial asking rents were essentially flat in the second quarter of 2026, with annual rent growth of 1.2%, as recently delivered space increased tenant choice and competition.
U.S. industrial vacancy reached 7.5% in the second quarter. Second-quarter net absorption totaled 44.4 million square feet, bringing the first-half total to 77.1 million square feet, approximately 30% below the pre-pandemic five-year average. First-half deliveries totaled 93 million square feet, while annual rent growth slowed to 1.3%, its lowest rate since 2012, according to Lee & Associates. Construction starts have declined, indicating that supply growth is beginning to moderate.
What the Transaction Means for Shareholders and Buyers
For LXP shareholders, the all-cash consideration provides a premium to recent trading levels and removes exposure to public-market price movements. For Brookfield Asset Management and CPP Investments, the acquisition provides control of a stabilized warehouse and distribution portfolio concentrated in Sunbelt and Midwest markets, at a point when development activity in the sector has slowed.
The transaction will remove LXP from the public markets once it closes. LXP's forward-looking statements note that the closing remains subject to conditions, and that risks include the possibility that a closing condition is not satisfied within the expected timeframe or at all, as well as outcomes of any legal proceedings related to the merger agreement.
Sources
More Corporate Updates
