Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate
investment trust focused on single-tenant real estate investments,
today announced results for the second quarter ended June 30,
2018.
Second Quarter 2018 Highlights
- Generated Net Loss attributable to common shareholders
of $3.3 million, or $(0.01) per diluted common share.
- Generated Adjusted Company Funds From Operations
available to all equityholders and unitholders - diluted (“Adjusted
Company FFO”) of $62.4 million, or $0.25 per diluted common
share.
- Acquired three industrial properties for an aggregate
cost of $136.8 million.
- Sold three non-industrial properties for an aggregate
of $65.6 million.
- Financed an industrial property generating initial
gross proceeds of $25.9 million.
- Repurchased and retired 130,000 common shares at an
average price of $7.87 per share.
- Borrowed $95.0 million, net, under its unsecured
revolving credit facility.
- Completed 331,000 square feet of new leases and lease
extensions with portfolio 97.3% leased at quarter
end.
Subsequent Events
- Sold three non-industrial properties for an aggregate
of $46.6 million.
Adjusted Company FFO is a non-GAAP financial
measure. It and certain other non-GAAP financial measures are
defined and reconciled later in this press release.
T. Wilson Eglin, Chief Executive Officer and
President of Lexington Realty Trust, commented, “To date, we have
added $137 million of new industrial assets to our portfolio and
disposed of $175 million of office and other non-core assets.
We remain committed to our business strategy of repositioning our
portfolio so that it consists primarily of single-tenant net-leased
industrial assets. Considerable progress has been made on
reducing our office exposure and we continue to focus on
accelerating our disposition efforts in this area of our
business.”
FINANCIAL RESULTS
Revenues
For the quarter ended June 30, 2018, total
gross revenues were $105.5 million, compared with total gross
revenues of $95.7 million for the quarter ended June 30, 2017.
The increase was primarily attributable to revenue generated from
2018 and 2017 property acquisitions and new leases, partially
offset by property sales and lease expirations.
Net Income (Loss) Attributable to Common
Shareholders
For the quarter ended June 30, 2018, net
loss attributable to common shareholders was $3.3 million, or
$(0.01) per diluted share, compared with net income attributable to
common shareholders for the quarter ended June 30, 2017 of
$5.5 million, or $0.02 per diluted share. The change between
periods relates primarily to the timing of gains on sales and
impairments recognized on real estate.
Adjusted Company FFO
For the quarter ended June 30, 2018,
Lexington generated Adjusted Company FFO of $62.4 million, or $0.25
per diluted share, compared to Adjusted Company FFO for the quarter
ended June 30, 2017 of $57.0 million, or $0.23 per diluted
share. The increase was primarily attributable to the items
discussed above under “Revenues”.
Dividends/Distributions
As previously announced, during the second
quarter of 2018, Lexington declared a regular quarterly common
share/unit dividend/distribution for the quarter ended
June 30, 2018 of $0.1775 per common share/unit, which was paid
on July 16, 2018 to common shareholders/unitholders of record as of
June 29, 2018. Lexington previously declared a cash dividend of
$0.8125 per share on its Series C Cumulative Convertible Preferred
Stock (“Series C Preferred”) for the quarter ended June 30, 2018,
which is expected to be paid on August 15, 2018 to Series C
Preferred Shareholders of record as of July 31, 2018.
TRANSACTION ACTIVITY
|
ACQUISITION TRANSACTIONS |
|
Tenant |
|
Location |
|
Sq. Ft. |
|
Property Type |
|
Initial Basis ($000) |
|
Approximate Lease Term (Yrs) |
| Sephora USA, Inc. |
|
Olive Branch, MS |
|
716,080 |
|
|
Industrial |
|
$ |
44,090 |
|
|
11 |
| Hamilton Beach Brands,
Inc. |
|
Olive Branch, MS |
|
1,170,218 |
|
|
Industrial |
|
48,575 |
|
|
3 |
| Spectrum Brands Pet
Group, Inc. |
|
Edwardsville, IL |
|
1,017,780 |
|
|
Industrial |
|
44,178 |
|
|
12 |
| |
|
|
|
2,904,078 |
|
|
|
|
$ |
136,843 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
The above were acquired at aggregate
weighted-average GAAP and cash capitalization rates of 7.3% and
5.8%, respectively.
|
PROPERTY DISPOSITIONS |
|
|
|
Primary Tenant |
|
Location |
|
Property Type |
|
Gross
DispositionPrice($000) |
|
Annualized Net Income (Loss)(1)
($000) |
|
AnnualizedNOI(1)($000) |
|
Month of Disposition |
|
% Leased |
| Vacant |
|
Lawrence, IN |
|
Other |
|
$ |
550 |
|
|
$ |
(200 |
) |
|
$ |
(185 |
) |
|
May |
|
0 |
% |
| Mighty Dollar, LLC |
|
Thomasville, NC |
|
Other |
|
600 |
|
|
66 |
|
|
86 |
|
|
June |
|
100 |
% |
| CopperPoint Mutual
Insurance Company |
|
Phoenix, AZ |
|
Office |
|
64,499 |
|
|
2,991 |
|
|
4,173 |
|
|
June |
|
100 |
% |
| |
|
|
|
|
|
$ |
65,649 |
|
|
$ |
2,857 |
|
|
$ |
4,074 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Quarterly period prior to sale annualized.
These dispositions resulted in aggregate gain on
sales of $14.4 million.
|
LEASING |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
LEASE EXTENSIONS |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Location |
|
Primary Tenant(1) |
PriorTerm |
|
LeaseExpiration Date |
|
Sq. Ft. |
| |
|
Office |
|
|
|
|
|
|
|
|
| 1 |
|
Pascagoula |
MS |
|
Huntington Ingalls
Incorporated |
|
10/2018 |
|
10/2023 |
|
94,841 |
|
| 2 |
|
Tempe |
AZ |
|
Versum Materials US,
LLC |
|
06/2022 |
|
12/2033 |
|
95,133 |
|
|
2 |
|
Total office lease extensions |
|
|
|
|
|
|
189,974 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
NEW
LEASES |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Location |
|
|
|
|
|
Lease Expiration Date |
|
Sq. Ft. |
| |
|
Office/Multi-Tenant |
|
|
|
|
|
|
|
|
| 1 |
|
Irving |
TX |
|
Nissan Motor Acceptance
Corporation |
|
|
|
03/2023 |
|
43,396 |
|
| 2 |
|
Redmond |
OR |
|
Consumer Cellular,
Incorporated |
|
|
|
07/2029 |
|
77,260 |
|
| 3 |
|
Phoenix |
AZ |
|
HealthPlanOne, LLC |
|
|
|
02/2024 |
|
20,164 |
|
|
3 |
|
Total new office leases |
|
|
|
|
|
|
|
140,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
|
TOTAL NEW AND EXTENDED LEASES |
|
|
|
|
|
|
|
330,794 |
|
(1) Leases greater than 10,000 square feet.
As of June 30, 2018, Lexington's portfolio
was 97.3% leased.
BALANCE SHEET/CAPITAL MARKETS
In the second quarter of 2018, Lexington
repurchased and retired 130,000 common shares at an average price
of $7.87 per share under its repurchase authorization announced on
July 2, 2015 in the amount of 10.0 million common shares. As of
June 30, 2018, there were approximately 5.7 million common
shares remaining to be repurchased under the authorization.
Also, in the second quarter, Lexington obtained
$25.9 million in non-recourse financing on an industrial property
in Warren, Michigan. The loan matures in November 2032, bears
interest at a fixed rate of 5.4% and is interest only through
November 2027.
2018 EARNINGS GUIDANCE
Lexington now estimates that its net income
attributable to common shareholders per diluted common share for
the year ended December 31, 2018 will be within an expected range
of $0.24 to $0.27. Lexington is reaffirming that its Adjusted
Company FFO for the year ended December 31, 2018 is expected to be
within a range of $0.95 to $0.98 per diluted common share. This
guidance is forward looking, excludes the impact of certain items
and is based on current expectations.
SECOND QUARTER 2018 CONFERENCE CALL
Lexington will host a conference call today,
August 8, 2018, at 8:30 a.m. Eastern Time, to discuss its results
for the quarter ended June 30, 2018. Interested parties may
participate in this conference call by dialing 1-844-825-9783
(U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada).
A replay of the call will be available through November 8, 2018, at
1-877-344-7529 (U.S.), 1-412-317-0088 (International) or
1-855-669-9658 (Canada), pin code for all replay numbers is
10122347. A link to a live webcast of the conference call is
available at www.lxp.com within the Investors section.
ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust (NYSE:LXP) is a publicly
traded real estate investment trust (REIT) that owns a diversified
portfolio of real estate assets consisting primarily of equity
investments in single-tenant net-leased commercial properties
across the United States. Lexington seeks to expand its portfolio
through build-to-suit transactions, sale-leaseback transactions and
other transactions, including acquisitions. For more information,
including Lexington's Quarterly Supplemental Information package,
or to follow Lexington on social media, visit www.lxp.com.
Contact:Investor or Media Inquiries for Lexington Realty
Trust:Heather Gentry, Senior Vice President of Investor
RelationsLexington Realty TrustPhone: (212) 692-7200 E-mail:
hgentry@lxp.com
This release contains certain forward-looking
statements which involve known and unknown risks, uncertainties or
other factors not under Lexington's control which may cause actual
results, performance or achievements of Lexington to be materially
different from the results, performance, or other expectations
implied by these forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, those discussed under the headings “Management's
Discussion and Analysis of Financial Condition and Results of
Operations” and “Risk Factors” in Lexington's periodic reports
filed with the Securities and Exchange Commission, including risks
related to: (1) the authorization by Lexington's Board of Trustees
of future dividend declarations, (2) Lexington's ability to achieve
its estimates of net income attributable to common shareholders and
Adjusted Company FFO for the year ending December 31, 2018, (3) the
successful consummation of any lease, acquisition, build-to-suit,
disposition, financing or other transaction, (4) the failure to
continue to qualify as a real estate investment trust, (5) changes
in general business and economic conditions, including the impact
of any legislation, (6) competition, (7) increases in real estate
construction costs, (8) changes in interest rates, (9) changes in
accessibility of debt and equity capital markets, and (10) future
impairment charges. Copies of the periodic reports Lexington files
with the Securities and Exchange Commission are available on
Lexington's web site at www.lxp.com. Forward-looking statements,
which are based on certain assumptions and describe Lexington's
future plans, strategies and expectations, are generally
identifiable by use of the words “believes,” “expects,” “intends,”
“anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,”
“will,” “will likely result,” “is optimistic,” “goal,” “objective”
or similar expressions. Except as required by law, Lexington
undertakes no obligation to publicly release the results of any
revisions to those forward-looking statements which may be made to
reflect events or circumstances after the occurrence of
unanticipated events. Accordingly, there is no assurance that
Lexington's expectations will be realized.
References to Lexington refer to Lexington
Realty Trust and its consolidated subsidiaries. All interests in
properties and loans are held, and all property operating
activities are conducted, through special purpose entities, which
are separate and distinct legal entities that maintain separate
books and records, but in some instances are consolidated for
financial statement purposes and/or disregarded for income tax
purposes. The assets and credit of each special purpose entity with
a property subject to a mortgage loan are not available to
creditors to satisfy the debt and other obligations of any other
person, including any other special purpose entity or affiliate.
Consolidated entities that are not property owner subsidiaries do
not directly own any of the assets of a property owner subsidiary
(or the general partner, member of managing member of such property
owner subsidiary), but merely hold partnership, membership or
beneficial interests therein which interests are subordinate to the
claims of the property owner subsidiary's (or its general
partner's, member's or managing member's) creditors.
Non-GAAP Financial Measures -
Definitions
Lexington has used non-GAAP financial measures
as defined by the Securities and Exchange Commission Regulation G
in this Quarterly Earnings Release and in other public
disclosures.
Lexington believes that the measures defined
below are helpful to investors in measuring our performance or that
of an individual investment. Since these measures exclude certain
items which are included in their respective most comparable
measures under generally accepted accounting principles (“GAAP”),
reliance on the measures has limitations; management compensates
for these limitations by using the measures simply as supplemental
measures that are weighed in balance with other GAAP measures.
These measures are not necessarily indications of our cash flow
available to fund cash needs. Additionally, they should not be used
as an alternative to the respective most comparable GAAP measures
when evaluating Lexington's financial performance or cash flow from
operating, investing or financing activities or liquidity.
Cash Rent: Cash Rent is calculated by making
adjustments to GAAP rent to remove the impact of GAAP required
adjustments to rental income such as adjustments for straight-line
rents relating to free rent periods and contractual rent increases.
Cash Rent excludes lease termination income. Lexington believes
Cash Rent provides a meaningful indication of an investment's
ability to fund cash needs.
Company Funds Available for Distribution
(“FAD”): FAD is calculated by making adjustments to Adjusted
Company FFO (see below) for (1) straight-line adjustments, (2)
lease incentive amortization, (3) amortization of above/below
market leases, (4) lease termination payments, net, (5) non-cash
interest, net, (6) non-cash charges, net, (7) cash paid for tenant
improvements, and (8) cash paid for lease costs. Although FAD may
not be comparable to that of other real estate investment trusts
(“REITs”), Lexington believes it provides a meaningful indication
of its ability to fund cash needs. FAD is a non-GAAP financial
measure and should not be viewed as an alternative measurement of
operating performance to net income, as an alternative to net cash
flows from operating activities or as a measure of liquidity.
Funds from Operations (“FFO”) and Adjusted
Company FFO: Lexington believes that Funds from Operations, or FFO,
which is a non-GAAP measure, is a widely recognized and appropriate
measure of the performance of an equity REIT. Lexington believes
FFO is frequently used by securities analysts, investors and other
interested parties in the evaluation of REITs, many of which
present FFO when reporting their results. FFO is intended to
exclude GAAP historical cost depreciation and amortization of real
estate and related assets, which assumes that the value of real
estate diminishes ratably over time. Historically, however, real
estate values have risen or fallen with market conditions. As a
result, FFO provides a performance measure that, when compared year
over year, reflects the impact to operations from trends in
occupancy rates, rental rates, operating costs, development
activities, interest costs and other matters without the inclusion
of depreciation and amortization, providing perspective that may
not necessarily be apparent from net income.
The National Association of Real Estate
Investment Trusts, or NAREIT, defines FFO as “net income (or loss)
computed in accordance with GAAP, excluding gains (or losses) from
sales of property, plus real estate depreciation and amortization
and after adjustments for non-consolidated partnerships and joint
ventures.” NAREIT clarified its computation of FFO to exclude
impairment charges on depreciable real estate owned directly or
indirectly. FFO does not represent cash generated from operating
activities in accordance with GAAP and is not indicative of cash
available to fund cash needs.
Lexington presents FFO available to common
shareholders and unitholders - basic and also presents FFO
available to all equityholders and unitholders - diluted on a
company-wide basis as if all securities that are convertible, at
the holder's option, into Lexington’s common shares, are converted
at the beginning of the period. Lexington also presents Adjusted
Company FFO available to all equityholders and unitholders -
diluted which adjusts FFO available to all equityholders and
unitholders - diluted for certain items which we believe are not
indicative of the operating results of Lexington's real estate
portfolio. Lexington believes this is an appropriate presentation
as it is frequently requested by security analysts, investors and
other interested parties. Since others do not calculate these
measures in a similar fashion, these measures may not be comparable
to similarly titled measures as reported by others. These measures
should not be considered as an alternative to net income as an
indicator of Lexington’s operating performance or as an alternative
to cash flow as a measure of liquidity.
GAAP and Cash Yield or Capitalization Rate: GAAP
and cash yields or capitalization rates are measures of operating
performance used to evaluate the individual performance of an
investment. These measures are estimates and are not presented or
intended to be viewed as a liquidity or performance measure that
present a numerical measure of Lexington's historical or future
financial performance, financial position or cash flows. The yield
or capitalization rate is calculated by dividing the annualized NOI
(as defined below, except GAAP rent adjustments are added back to
rental income to calculate GAAP yield or capitalization rate) the
investment is expected to generate (or has generated) divided by
the acquisition/completion cost (or sale) price.
Net Operating Income (“NOI”): NOI is a measure
of operating performance used to evaluate the individual
performance of an investment. This measure is not presented or
intended to be viewed as a liquidity or performance measure that
presents a numerical measure of Lexington's historical or future
financial performance, financial position or cash flows. Lexington
defines NOI as operating revenues (rental income (less GAAP rent
adjustments and lease termination income), tenant reimbursements
and other property income) less property operating expenses. Other
REITs may use different methodologies for calculating NOI, and
accordingly, Lexington's NOI may not be comparable to other
companies. Because NOI excludes general and administrative
expenses, interest expense, depreciation and amortization,
acquisition-related expenses, other nonproperty income and losses,
and gains and losses from property dispositions, it provides a
performance measure that, when compared year over year, reflects
the revenues and expenses directly associated with owning and
operating commercial real estate and the impact to operations from
trends in occupancy rates, rental rates, and operating costs,
providing a perspective on operations not immediately apparent from
net income. Lexington believes that net income is the most directly
comparable GAAP measure to NOI.
| |
| LEXINGTON REALTY TRUST AND CONSOLIDATED
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited and in thousands, except share and
per share data) |
| |
| |
Three months ended June 30, |
|
Six months ended June 30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Gross revenues: |
|
|
|
|
|
|
|
|
Rental |
$ |
97,649 |
|
|
$ |
87,565 |
|
|
$ |
192,171 |
|
|
$ |
176,219 |
|
| Tenant
reimbursements |
7,844 |
|
|
8,119 |
|
|
15,959 |
|
|
15,564 |
|
| Total
gross revenues |
105,493 |
|
|
95,684 |
|
|
208,130 |
|
|
191,783 |
|
| Expense applicable to
revenues: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
(45,440 |
) |
|
(42,320 |
) |
|
(91,977 |
) |
|
(85,211 |
) |
| Property
operating |
(10,906 |
) |
|
(12,974 |
) |
|
(22,383 |
) |
|
(25,090 |
) |
| General and
administrative |
(7,421 |
) |
|
(8,141 |
) |
|
(16,417 |
) |
|
(17,598 |
) |
| Non-operating
income |
354 |
|
|
1,371 |
|
|
900 |
|
|
3,992 |
|
| Interest and
amortization expense |
(21,734 |
) |
|
(19,216 |
) |
|
(42,065 |
) |
|
(38,941 |
) |
| Debt satisfaction
charges, net |
— |
|
|
(46 |
) |
|
— |
|
|
(46 |
) |
| Impairment charges and
loan loss |
(35,269 |
) |
|
(13,599 |
) |
|
(88,318 |
) |
|
(21,591 |
) |
| Gains on sales of
properties |
14,432 |
|
|
10,240 |
|
|
37,206 |
|
|
44,433 |
|
| Income (loss) before
provision for income taxes and equity in earnings (losses) of
non-consolidated entities |
(491 |
) |
|
10,999 |
|
|
(14,924 |
) |
|
51,731 |
|
| Provision for income
taxes |
(379 |
) |
|
(377 |
) |
|
(882 |
) |
|
(799 |
) |
| Equity in earnings
(losses) of non-consolidated entities |
75 |
|
|
(3,257 |
) |
|
188 |
|
|
(1,347 |
) |
| Net income (loss) |
(795 |
) |
|
7,365 |
|
|
(15,618 |
) |
|
49,585 |
|
| Less net
income attributable to noncontrolling interests |
(899 |
) |
|
(213 |
) |
|
(391 |
) |
|
(393 |
) |
| Net income (loss)
attributable to Lexington Realty Trust shareholders |
(1,694 |
) |
|
7,152 |
|
|
(16,009 |
) |
|
49,192 |
|
| Dividends attributable
to preferred shares – Series C |
(1,573 |
) |
|
(1,573 |
) |
|
(3,145 |
) |
|
(3,145 |
) |
| Allocation to
participating securities |
(60 |
) |
|
(60 |
) |
|
(130 |
) |
|
(131 |
) |
| Net income (loss)
attributable to common shareholders |
$ |
(3,327 |
) |
|
$ |
5,519 |
|
|
$ |
(19,284 |
) |
|
$ |
45,916 |
|
| |
|
|
|
|
|
|
|
| Net income (loss)
attributable to common shareholders - per common share basic |
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.19 |
|
| Weighted-average common
shares outstanding – basic |
237,312,726 |
|
|
237,720,198 |
|
|
237,690,306 |
|
|
237,451,355 |
|
| |
|
|
|
|
|
|
|
| Net income (loss)
attributable to common shareholders - per common share diluted |
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.19 |
|
| Weighted-average common
shares outstanding – diluted |
237,312,726 |
|
|
241,531,313 |
|
|
237,690,306 |
|
|
241,310,529 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| LEXINGTON REALTY TRUST AND CONSOLIDATED
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited and in thousands, except share and per
share data) |
| |
| |
June 30, 2018 |
|
December 31, 2017 |
|
Assets: |
|
|
|
| Real estate, at
cost |
$ |
3,650,121 |
|
|
$ |
3,936,459 |
|
| Real estate -
intangible assets |
523,097 |
|
|
599,091 |
|
| |
4,173,218 |
|
|
4,535,550 |
|
| Less: accumulated
depreciation and amortization |
1,139,865 |
|
|
1,225,650 |
|
| Real
estate, net |
3,033,353 |
|
|
3,309,900 |
|
| Assets held for
sale |
171,550 |
|
|
2,827 |
|
| Cash and cash
equivalents |
75,373 |
|
|
107,762 |
|
| Restricted cash |
71,564 |
|
|
4,394 |
|
| Investment in and
advances to non-consolidated entities |
17,199 |
|
|
17,476 |
|
| Deferred expenses,
net |
29,472 |
|
|
31,693 |
|
| Rent receivable –
current |
4,712 |
|
|
5,450 |
|
| Rent receivable –
deferred |
52,861 |
|
|
52,769 |
|
| Other assets |
20,107 |
|
|
20,749 |
|
| Total assets |
$ |
3,476,191 |
|
|
$ |
3,553,020 |
|
| |
|
|
|
| Liabilities and
Equity: |
|
|
|
| Liabilities: |
|
|
|
| Mortgages and notes
payable, net |
$ |
701,774 |
|
|
$ |
689,810 |
|
| Revolving credit
facility borrowings |
195,000 |
|
|
160,000 |
|
| Term loans payable,
net |
597,251 |
|
|
596,663 |
|
| Senior notes payable,
net |
495,616 |
|
|
495,198 |
|
| Trust preferred
securities, net |
127,246 |
|
|
127,196 |
|
| Dividends payable |
48,474 |
|
|
49,504 |
|
| Liabilities held for
sale |
2,333 |
|
|
— |
|
| Accounts payable and
other liabilities |
26,207 |
|
|
38,644 |
|
| Accrued interest
payable |
6,069 |
|
|
5,378 |
|
| Deferred revenue -
including below market leases, net |
33,736 |
|
|
33,182 |
|
| Prepaid rent |
13,189 |
|
|
16,610 |
|
| Total liabilities |
2,246,895 |
|
|
2,212,185 |
|
| |
|
|
|
| Commitments and
contingencies |
|
|
|
| Equity: |
|
|
|
| Preferred shares, par
value $0.0001 per share; authorized 100,000,000 shares: |
|
|
|
| Series C
Cumulative Convertible Preferred, liquidation preference $96,770;
1,935,400 shares issued and outstanding |
94,016 |
|
|
94,016 |
|
| Common shares, par
value $0.0001 per share; authorized 400,000,000 shares, 239,888,688
and 240,689,081 shares issued and outstanding in 2018 and 2017,
respectively |
24 |
|
|
24 |
|
| Additional
paid-in-capital |
2,811,981 |
|
|
2,818,520 |
|
| Accumulated
distributions in excess of net income |
(1,693,165 |
) |
|
(1,589,724 |
) |
| Accumulated other
comprehensive income |
1,098 |
|
|
1,065 |
|
| Total
shareholders’ equity |
1,213,954 |
|
|
1,323,901 |
|
| Noncontrolling
interests |
15,342 |
|
|
16,934 |
|
| Total
equity |
1,229,296 |
|
|
1,340,835 |
|
| Total liabilities and
equity |
$ |
3,476,191 |
|
|
$ |
3,553,020 |
|
| |
|
|
|
|
|
|
|
| LEXINGTON REALTY TRUST AND CONSOLIDATED
SUBSIDIARIES |
| EARNINGS PER SHARE |
| (Unaudited and in thousands, except share and per
share data) |
| |
| |
|
|
Three Months Ended |
|
Six Months Ended |
| |
|
|
June 30, |
|
June 30, |
| |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
| Net income
(loss) attributable to common shareholders |
|
$ |
(3,327 |
) |
|
$ |
5,519 |
|
|
$ |
(19,284 |
) |
|
$ |
45,916 |
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding - basic |
|
237,312,726 |
|
|
237,720,198 |
|
|
237,690,306 |
|
|
237,451,355 |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss) attributable to common shareholders - per
common share basic |
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
| Net income
(loss) attributable to common shareholders - basic |
|
$ |
(3,327 |
) |
|
$ |
5,519 |
|
|
$ |
(19,284 |
) |
|
$ |
45,916 |
|
| Impact of
assumed conversions |
|
— |
|
|
— |
|
|
— |
|
|
(19 |
) |
| Net income
(loss) attributable to common shareholders |
|
$ |
(3,327 |
) |
|
$ |
5,519 |
|
|
$ |
(19,284 |
) |
|
$ |
45,897 |
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
237,312,726 |
|
|
237,720,198 |
|
|
237,690,306 |
|
|
237,451,355 |
|
| Effect of
dilutive securities: |
|
|
|
|
|
|
|
|
| Share options |
|
— |
|
|
86,653 |
|
|
— |
|
|
111,252 |
|
| Operating partnership units |
|
— |
|
|
3,724,462 |
|
|
— |
|
|
3,747,922 |
|
|
Weighted-average common shares outstanding - diluted |
|
237,312,726 |
|
|
241,531,313 |
|
|
237,690,306 |
|
|
241,310,529 |
|
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to common shareholders - per
common share diluted |
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEXINGTON REALTY TRUST AND CONSOLIDATED
SUBSIDIARIES |
| ADJUSTED COMPANY FUNDS FROM OPERATIONS &
COMPANY FUNDS AVAILABLE FOR DISTRIBUTION |
| (Unaudited and in thousands, except share and per
share data) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
FUNDS FROM OPERATIONS: |
|
|
|
|
|
|
|
Basic and Diluted: |
|
|
|
|
|
|
|
|
| Net income
(loss) attributable to common shareholders |
|
$ |
(3,327 |
) |
|
$ |
5,519 |
|
|
$ |
(19,284 |
) |
|
$ |
45,916 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
| |
Depreciation and amortization |
|
44,225 |
|
|
41,076 |
|
|
89,379 |
|
|
82,618 |
|
| |
Impairment
charges - real estate |
|
35,269 |
|
|
17,111 |
|
|
88,318 |
|
|
19,809 |
|
| |
Noncontrolling interests - OP units |
|
649 |
|
|
— |
|
|
(80 |
) |
|
(19 |
) |
| |
Amortization of leasing commissions |
|
1,215 |
|
|
1,244 |
|
|
2,598 |
|
|
2,593 |
|
| |
Joint
venture and noncontrolling interest adjustment |
|
258 |
|
|
265 |
|
|
516 |
|
|
605 |
|
| |
Gains on
sales of properties, including non-consolidated entities |
|
(14,432 |
) |
|
(10,240 |
) |
|
(37,206 |
) |
|
(45,885 |
) |
| FFO
available to common shareholders and unitholders -
basic |
|
63,857 |
|
|
54,975 |
|
|
124,241 |
|
|
105,637 |
|
| |
Preferred
dividends |
|
1,573 |
|
|
1,573 |
|
|
3,145 |
|
|
3,145 |
|
| |
Amount
allocated to participating securities |
|
60 |
|
|
60 |
|
|
130 |
|
|
131 |
|
| FFO
available to all equityholders and unitholders -
diluted |
|
65,490 |
|
|
56,608 |
|
|
127,516 |
|
|
108,913 |
|
| |
Debt
satisfaction charges, net |
|
— |
|
|
46 |
|
|
— |
|
|
46 |
|
| |
Loan
loss |
|
— |
|
|
— |
|
|
— |
|
|
5,294 |
|
| |
Other(1) |
|
(3,120 |
) |
|
302 |
|
|
(3,120 |
) |
|
488 |
|
|
Adjusted Company FFO available to all equityholders and
unitholders - diluted |
|
62,370 |
|
|
56,956 |
|
|
124,396 |
|
|
114,741 |
|
| |
|
|
|
|
|
|
|
|
|
FUNDS AVAILABLE FOR DISTRIBUTION: |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
| |
Straight-line adjustments |
|
(6,013 |
) |
|
(5,641 |
) |
|
(10,879 |
) |
|
(8,550 |
) |
| |
Lease
incentives |
|
519 |
|
|
510 |
|
|
1,055 |
|
|
941 |
|
| |
Amortization of above/below market leases |
|
246 |
|
|
346 |
|
|
224 |
|
|
860 |
|
| |
Lease
termination payments, net |
|
(309 |
) |
|
(530 |
) |
|
(617 |
) |
|
(295 |
) |
| |
Non-cash
interest, net |
|
1,299 |
|
|
497 |
|
|
2,324 |
|
|
652 |
|
| |
Non-cash
charges, net |
|
1,625 |
|
|
1,987 |
|
|
3,564 |
|
|
4,133 |
|
| |
Tenant
improvements |
|
(662 |
) |
|
(4,233 |
) |
|
(6,594 |
) |
|
(5,995 |
) |
| |
Lease
costs |
|
(1,192 |
) |
|
(1,385 |
) |
|
(1,801 |
) |
|
(3,056 |
) |
|
Company Funds Available for Distribution |
|
$ |
57,883 |
|
|
$ |
48,507 |
|
|
$ |
111,672 |
|
|
$ |
103,431 |
|
| |
|
|
|
|
|
|
|
|
|
| Per
Common Share and Unit Amounts |
|
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
|
| |
FFO |
|
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.51 |
|
|
$ |
0.44 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
| |
FFO |
|
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.52 |
|
|
$ |
0.44 |
|
| |
Adjusted
Company FFO |
|
$ |
0.25 |
|
|
$ |
0.23 |
|
|
$ |
0.50 |
|
|
$ |
0.47 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
|
| |
Weighted-average common shares outstanding - basic EPS |
|
237,312,726 |
|
|
237,720,198 |
|
|
237,690,306 |
|
|
237,451,355 |
|
| |
Operating
partnership units(2) |
|
3,619,315 |
|
|
3,724,462 |
|
|
3,624,228 |
|
|
3,747,922 |
|
| |
Weighted-average common shares outstanding - basic FFO |
|
240,932,041 |
|
|
241,444,660 |
|
|
241,314,534 |
|
|
241,199,277 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
| |
Weighted-average common shares outstanding - diluted EPS |
|
237,312,726 |
|
|
241,531,313 |
|
|
237,690,306 |
|
|
241,310,529 |
|
| |
Operating
partnership units(2) |
|
3,619,315 |
|
|
— |
|
|
3,624,228 |
|
|
— |
|
| |
Unvested
share-based payment awards and options |
|
445,283 |
|
|
606,934 |
|
|
503,461 |
|
|
648,810 |
|
| |
Preferred
shares - Series C |
|
4,710,570 |
|
|
4,710,570 |
|
|
4,710,570 |
|
|
4,710,570 |
|
| |
Weighted-average common shares outstanding - diluted FFO |
|
246,087,894 |
|
|
246,848,817 |
|
|
246,528,565 |
|
|
246,669,909 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) "Other" primarily consisted of the acceleration of
below-market lease intangible accretion in 2018 and transaction
related costs in 2017.
(2) Includes OP units other than OP units held by Lexington.
| |
| LEXINGTON REALTY TRUST AND CONSOLIDATED
SUBSIDIARIES |
| RECONCILIATION OF NON-GAAP
MEASURES |
| |
|
|
|
| 2018 EARNINGS
GUIDANCE |
|
|
|
| |
Twelve Months EndedDecember 31, 2018 |
| |
Range |
| Estimated: |
|
|
|
| Net income attributable
to common shareholders per diluted common share(1) |
$ |
0.24 |
|
|
$ |
0.27 |
|
|
Depreciation and amortization |
0.73 |
|
|
0.73 |
|
| Impact of
capital transactions |
(0.02 |
) |
|
(0.02 |
) |
| Estimated Adjusted
Company FFO per diluted common share |
$ |
0.95 |
|
|
$ |
0.98 |
|
| |
|
|
|
|
|
|
|
(1) Assumes all convertible securities are
dilutive.
LXP Industrial (NYSE:LXP)
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From Aug 2024 to Sep 2024
LXP Industrial (NYSE:LXP)
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From Sep 2023 to Sep 2024
