Lexington

Dec 10, 2021

December 10, 2021 - Advertisement - Lexington Realty Trust stock is up more than 40% as of today, but hedge fund Land & Buildings says the REIT’s shares are still undervalued, and want two director seats. - Advertisement - Another setback may be in the real estate world. Jonathan Litt, founder and chief investment officer of hedge fund Land & Buildings Investment Management, began tracking Lexington Realty Trust (ticker: LXP) this fall, believing that the real estate investment trust’s shares were “materially undervalued.” were supposed. Shares currently trade at 5% of their capitalization rate. - Advertisement - Lexington lags behind peers such as Monmouth Real Estate (MNR), which traded at 4% of its cap rate last month when the REIT announced its sale to Industrial Logistics Properties Trust (ILPT). Litt has named himself and Donna Brandin, former chief financial officer of Equity Residential (EQR), to join the board of Lexington. Lexington’s long-serving CEO T. Replacing Wilson Eglin would also help, says Litt, who noted that funding from operations fell 60%, accumulating more than $800 million in losses under Eglin’s tenure. Lexington’s stock is already up more than 40% from the year before. But, Litt has argued, there may be opportunities to add to those gains by selling assets and returning capital to shareholders, or by outright sales of the company. Just last month, before agreeing to Industrial Logistics’ $4 billion bid, Monmouth reportedly had multiple bidders. Those companies may now be open to considering Lexington as an acquisition. Lexington declined to comment, but in an October letter to shareholders, the company acknowledged the “short-term costs” involved in its transition to a pure-play, single-tenant industrial REIT.