GATX Corporation Announces Modification to Its Lease Price Index (LPI) Calculation

GATX Corporation (NYSE:GATX) today announced a modified methodology for its Lease Price Index (LPI) calculation. This modification, accompanied by historical data dating back to the introduction of the LPI in 2008, is intended to provide investors and other constituents with a more complete representation of lease rate and lease term performance on renewals across GATX’s North American railcar fleet.

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LPI – Modified Methodology (Effective beginning 2023 second quarter) (Graphic: Business Wire)

The LPI is an internally generated business indicator that measures renewal activity for GATX’s North American railcar fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate. The average renewal lease term is reported in months and reflects the average renewal lease term in the LPI.

Under the previous methodology, the LPI calculation included a subset of the renewal activity during the reported quarter that were judged to be representative of GATX’s North American non-boxcar fleet, and those renewals were weighted by fleet composition. This methodology resulted in the exclusion of certain renewal transactions from the calculation. Since the introduction of the LPI in 2008, GATX’s North American railcar fleet has continually become more diversified, which warrants reporting the LPI in terms of the entire non-boxcar fleet, rather than a subset. The modified methodology aims to more consistently reflect actual trends in renewal lease rates and renewal lease terms across GATX’s North American non-boxcar fleet. Under the modified methodology, the LPI calculation will include all renewal activity based on a 12-month trailing average, and the renewals will be weighted by the count of all renewals during the reported period.

Beginning with the second quarter of 2023, GATX will report LPI based on the modified methodology and will retire the previous methodology. Annual historical LPI data on a comparable basis is provided in the charts and tables below. Quarterly historical LPI data on a comparable basis is available on GATX’s Investor Relations website.

Renewal Lease Rate Change of the LPI
	Modified Methodology (Effective 2Q 2023)	Previous Methodology