Brookfield and CPP Complete LXP Takeover at $61.20 per Share

Key Facts

Brookfield Asset Management and CPP Investments announced on November 2 that they had completed their acquisition of LXP Industrial Trust in a deal valued at about $5.2 billion, including net debt and preferred stock, according to Brookfield’s announcement. Under the deal, common shareholders received $61.20 in cash per share. LXP became a private company, and its shares ceased trading on the New York Stock Exchange upon completion. The all-cash acquisition was announced on July 20, with completion expected in the fourth quarter of 2026. The closing completes a deal that transfers a U.S. logistics real estate portfolio to two investors while ending the company’s public listing.

Lowell Baron, Brookfield’s chief executive of real estate, said the acquisition “reflects our conviction in the long-term fundamentals of the U.S. industrial sector.” CPP Investments’ head of real estate added that the deal adds a large portfolio of modern logistics properties to the fund’s U.S. real estate investments. According to Brookfield, LXP’s assets will be integrated into its global logistics platform, which comprises more than 850 properties in 20 countries. The platform has more than 255 million square feet of gross area, according to the completion announcement. LXP focused on Class A warehouses and distribution facilities in 12 target markets across the Sun Belt and Midwest, according to its filing.

As of September 30, LXP’s portfolio comprised about 107 properties in which the company held interests, spread across 13 U.S. states and totaling 51.8 million square feet of leasable area. Occupancy, based on net leasable area, was 97.0% on that date. On a same-property basis, occupancy rose to 97.0% from 96.6% in September 2025. Same-property net operating income also increased 2.6% in the third quarter of 2026 from the same period a year earlier. It grew 1.7% in the first nine months of the year, with the company attributing the increase mainly to higher base cash rents.

During the third quarter, the company signed second-generation new leases and extensions covering 4.2 million square feet. The associated base rents increased 42.8%, while base cash rents rose 34.3%. The company excluded leases with fixed-rate renewals and tenant improvement allowances from this comparison. These results show leasing and operating performance in the period before the deal closed, alongside the portfolio’s high occupancy rate. LXP, however, did not declare a third-quarter 2026 distribution on its common shares, compared with a distribution of $0.675 per share in the third quarter of 2025, according to its filing.

The deal consideration of $61.20 per share represented a 12.3% premium to the 30-day volume-weighted average price and a 19.8% premium to the 90-day average, for the periods ended July 17. The merger agreement allowed the company to solicit competing offers through August 28, 2026. Shortly before completion, LXP’s last listed closing price was $61.18 on October 30. After the deal closed, the shares no longer traded on the New York Stock Exchange, according to Brookfield. S&P Dow Jones Indices had announced that AWP would replace LXP in the S&P SmallCap 600 before trading opened on November 2.