LXP Industrial Trust (LXP) strengthened its balance sheet in recent quarters, using proceeds from asset sales to repay approximately $220 million of debt, which improved its S&P Global Ratings-adjusted debt to EBITDA to the low 5x area. Therefore, we revised our outlook on the company to positive from stable and affirmed our 'BBB-' issuer credit rating and 'BBB-' issue-level rating on its unsecured notes. The positive outlook reflects our expectation LXP's debt leverage will remain in the low 5x over the next two years, in line with management?s stated financial policies. We also forecast the operating performance of the company's net-leased industrial portfolio will remain sound over the same time frame despite facing some uncertainty from evolving U.S. tariff policies.
