Ms. Laura Montross reports

BROOKFIELD AND CPP INVESTMENTS TO ACQUIRE LXP INDUSTRIAL TRUST IN $5.2 BILLION ALL-CASH TRANSACTION

Brookfield Asset Management Ltd., together with Canada Pension Plan Investment Board (CPP Investments), and LXP Industrial Trust have entered into a definitive merger agreement under which Brookfield and CPP Investments (collectively, buyer) will acquire LXP in an all-cash transaction valued at approximately $5.2-billion, including net debt and preferred equity.

LXP owns one of the largest portfolios of modern warehouse and logistics facilities in the United States, comprising approximately 53 million square feet across 108 properties in attractive industrial markets in the Sunbelt and Midwest. The portfolio is characterized by modern assets, strong occupancy and long-duration leases that generate durable cash flows and is well positioned to benefit from the demand for high-quality, well-located logistics properties.

Thomas W. Eglin Jr., chairman and chief executive officer of LXP, said: "This transaction is the culmination of the LXP team's successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio and implement our development program. The LXP board unanimously determined that this transaction with Brookfield and CPP Investments fully maximizes value for our shareholders."

"LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets," said Lowell Baron, chief executive officer of Brookfield Real Estate. "The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management. We're excited to partner with CPP Investments and build on LXP's strong foundation."

"The industrial sector, particularly in the U.S., continues to offer attractive long-term investment opportunities, supported by structural demand drivers including domestic manufacturing, evolving global supply chains and population growth across key Sunbelt markets," said Sophie van Oosterom, managing director, head of real estate, at CPP Investments. "We look forward to partnering with Brookfield and combining their operating expertise with a well-positioned portfolio to generate sustainable investment returns for the CPP fund in the interests of CPP contributors and beneficiaries."

Under the terms of the definitive merger agreement, LXP shareholders will receive $61.20 per share in cash, which represents a 12.3-per-cent premium to LXP's 30-day volume-weighted average price (VWAP) and 19.8-per-cent premium to LXP's 90-day VWAP, in each case for the period ended July 17, 2026.

Transaction details

The transaction has been unanimously approved by LXP's board of trustees and is expected to close in the fourth quarter of 2026, subject to approval by LXP's shareholders and satisfaction of other customary closing conditions. The transaction is not subject to a financing condition.

The definitive agreement includes a 40-day go-shop period expiring at 11:59 p.m. New York time on Aug. 28, 2026, during which time LXP, with the assistance of its advisers, may actively solicit and consider alternative acquisition proposals and engage in discussions with third parties. Subject to the terms and conditions of the definitive agreement, including notice and negotiation rights in favour of buyer, LXP may terminate the transaction and the definitive agreement to enter into a transaction that constitutes a superior proposal, subject to the payment of a termination fee.

There can be no assurance that the solicitation process will result in a superior proposal or that any other transaction will be approved or completed. LXP does not intend to disclose developments with respect to this solicitation process unless and until its board determines such disclosure is appropriate or otherwise required.

Under the terms of the definitive merger agreement, LXP has agreed to suspend payment of common share dividends until the earlier of the closing of the transaction or the termination of the definitive agreement.

Subject to and upon completion of the transaction, LXP's shares will no longer trade on the New York Stock Exchange and LXP will become a privately held company.

LXP's second quarter 2026 results

LXP intends to release its second quarter 2026 financial results as scheduled on July 29, 2026. In light of the pending transaction, LXP does not intend to continue hosting conference calls or webcasts to discuss its quarterly financial results.

Advisers

BofA Securities Inc. is acting as lead financial adviser, J.P. Morgan Securities LLC is acting as co-financial adviser and Hogan Lovells Cadwalader U.S. LLP is serving as legal adviser to LXP.

Citigroup Global Markets Inc. and Morgan Stanley & Co. LLP are serving as financial advisers, and Gibson, Dunn & Crutcher LLP and Thompson Hine LLP are serving as legal advisers to Brookfield and CPP Investments, with DLA Piper LLP serving as legal adviser to CPP Investments in connection with certain aspects of the transaction. Dechert LLP is acting as legal adviser to Citigroup Global Markets Inc. and Morgan Stanley & Co LLP.

About Brookfield Asset Management Ltd.

Brookfield Asset Management is a leading global alternative asset manager, headquartered in New York, with over $1-trillion of assets under management across infrastructure, energy, private equity, real estate and credit. The company invests client capital for the long term with a focus on real assets and essential service businesses that form the backbone of the global economy. The company offers a range of alternative investment products to investors around the world -- including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors. The company draws on Brookfield's heritage as an owner and operator to invest for value and generate strong returns for its clients, across economic cycles.

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPP Investments) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interests of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, CPP makes investments around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, Sao Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan at arm's length from governments. At March 31, 2026, the fund totalled $793.3-billion.

About LXP Industrial Trust

LXP is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

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