T. Wilson Eglin, chairman and CEO of Lexington Realty Trust (NYSE: LXP), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.
Eglin said that Lexington began to transition its portfolio away from suburban office and toward industrial several years ago. At the beginning of 2018, the REIT’s portfolio was less than half industrial, but that percentage is now up to 72%, he said.
“We’ve had really good success selling down our office portfolio and finding good risk to take in the industrial area,” he said, noting that Lexington is focused on buying warehouse and distribution facilities.
Eglin said the REIT laid out a disposition program for 2019 of $400 million to $500 million of primarily office properties that will mostly be loaded in the back half of the year.
He also said that Lexington’s “natural footprint” is in the Southeast and the Midwest, and the company is looking at opportunities within those areas, including Phoenix.