You down with LXP (yeah, you know me)
Industrial net lease REIT LXP Industrial (NYSE: LXP) announced a definitive agreement to be taken private by the collective of Brookfield Asset Management (NYSE: BAM) and the Canada Pension Plan Investment Board in a $5.2 billion all-cash transaction. LXP focuses on class A warehouse and distribution investments in 12 target markets across the Sunbelt and lower Midwest.
The deal represents the largest of four completed or pending listed net lease REIT take-private or merger transactions in 2026 compared to zero IPOs or direct listings. The current trend is clear: private capital is outpacing public equity for assets.
The $61.20/share take-out price represents an 18.3x multiple on the midpoint of management’s most recent guidance for FY2026 adjusted company FFO (revised June 1st). Annualizing 1Q2026 NOI implies a mid 5s cap rate, although that includes the impact of vacant assets and development projects (which pushes the pro forma yield higher).
As of 1Q2026, LXP’s portfolio included 52.7 million sq. ft. across 108 properties. Top tenant concentrations include Amazon (6.5% of ABR), Nissan (4.9%), Black & Decker (3.6%), and Wal-Mart (3.3%). Total portfolio weighted average lease term remaining was 4.7 years with 1.8 million sq. ft. of vacancy.
Since the turn of the decade, LXP generated an annualized total return of 7.2%, just shy of its since inception (1994 listing) annualized total return of 7.5%.
Above average
Net lease non-traded REIT equity capital raise for July of $389 million slightly exceeded the monthly average from 1H2026. The Big 4 have raised $2.7 billion in first seven months of the year.
Note: Dollars in millions
Good for who?
Gladstone Commercial (Nasdaq: GOOD) announced a mid-year update noting “We continue to create shareholder value…” The stock price is down 40% since the start of 2020 with annualized total shareholder return essentially zero.
Announced activity included a $22.8 million acquisition of 154,000 sq. ft. Virginia industrial property leased to a subsidiary of Huntington Ingalls Industries, executed leases on nearly 1 million sq. ft. across 8 properties, and occupancy of 98.7%.
Deal sheet
-Broadstone Net Lease (NYSE: BNL) announced a new build-to-suit development project for a 112,000 sq. ft. advanced technology facility in Colorado. As partner in a joint venture, BNL’s total investment is estimated at $303 million. The project is subject to a 15-year triple-net lease with a Fortune 20 investment grade rated tenant. BNL’s 8.5% estimated cash cap rate is enhanced by the 3.0% annual rental increases within the lease. The development will be delivered as a powered shell with substantial completion and rent commencement anticipated by March 2027.
-ExchangeRight announced the full subscription of Net-Leased Portfolio 73 DST. The $90.7 million portfolio consists of 11 long-term net-leased properties with a weighted-average lease term of 13.8 years at inception, spanning across Colorado, Idaho, Kentucky, Wisconsin, New Jersey, and New York. Tenants include household names Tractor Supply Company, Hobby Lobby, Dollar General Market, BioLife Plasma Services, and Dollar General. The portfolio is capitalized with $40 million of non-recourse debt and offers a 5.0% annualized distribution rate paid monthly.
-MAG Capital Partners announced an $89 million portfolio disposition of six net leased industrial manufacturing properties totaling 1.4 million sq. ft. to Fundamental Income (now part of Starwood Property Trust; NYSE: STWD).
-Restaurant operator Cracker Barrel Old Country Store (Nasdaq: CBRL) announced the completion of a 26-restaurant sale/leaseback generating net proceeds of $77 million. The company signed triple net leases totaling $5.7 million in aggregate first year rent. A prolific user of sale/leaseback capital, CBRL monetized the real estate underlying 15, 64, and 62 restaurants in 2009, 2020, and 2021, respectively. Simultaneously, the restaurateur announced the sale of its Maple Street Biscuit Company business. Sometimes you have to risk it for the biscuit!
-PetMed Express (Nasdaq: PETS) announced a signed contract to sell its headquarters and distribution facility in Delray Beach, FL (410 & 420 South Congress Ave) to Redfearn Capital for $37 million. PETS will execute a 10-year triple-net leaseback for its 100,000 sq. ft. of occupied space at $15.25 per sq. ft. of first year rent (subject to 3.5% annual increases). In an odd twist, the parties used the Florida state REALTOR’s contract form to solidify the agreement:
Check…raise: Lightning 2Q26 earnings
NETSTREIT (NYSE: NTST) invested $299 million in 93 properties at a 7.4% cash yield. 30% of acquired annualized base rent sourced from investment grade rated tenants while the weighted average lease term remaining blended to 9.8 years. The company’s 15.4 million sq. ft. portfolio is 100.0% leased. Earnings and investment guidance were raised.
Essential Properties (NYSE: EPRT) invested $332 million in 103 properties at a 7.8% cash yield (16-year WALT). The company’s 2,483-property portfolio is 99.6% leased. The bottom range of earnings and investment guidance were raised.
Getty Realty (NYSE: GTY) invested $128 million at 7.4% cash yield including the acquisition of 35 properties for $118 million. The company’s 1,224-property portfolio is 99.8% occupied with a 10.3-year WALT. Earnings guidance was raised.
Alpine Income (NYSE: PINE) acquired 3 properties for $37 million (7.4% cap rate) and originated one $40 million loan (10% coupon). The company’s 128-property portfolio generates $50 million in annualized base rent and is 99.5% occupied.
