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Section 1: 8-K (FORM 8-K)

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

Current Report Pursuant

to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 27, 2018

 

   

LEXINGTON REALTY TRUST

   

(Exact name of registrant as specified in its charter)

 

Maryland   1-12386   13-3717318

(State or other jurisdiction

of incorporation)

  (Commission File Number)   (IRS Employer Identification No.)

 

One Penn Plaza, Suite 4015, New York, New York   10119-4015
(Address of principal executive offices)   (Zip Code)

 

   

(212) 692-7200

   

(Registrant's telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

 

 

 

Item 2.02.Results of Operations and Financial Condition.

 

On February 27, 2018, we issued a press release announcing our financial results for the quarter ended December 31, 2017. A copy of the press release is furnished herewith as part of Exhibit 99.1.

 

The information furnished pursuant to this “Item 2.02 - Results of Operations and Financial Condition”, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, which we refer to as the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.

 

Item 7.01.Regulation FD Disclosure.

 

On February 27, 2018, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, Fourth Quarter 2017,” a copy of which is furnished herewith as Exhibit 99.1.

 

Also on February 27, 2018, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.2.

 

The information furnished pursuant to this “Item 7.01 - Regulation FD Disclosure”, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing. Information contained on our web site is not incorporated by reference into this Current Report on Form 8-K.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)Exhibits

 

  99.1 Quarterly Supplemental Information, Fourth Quarter 2017.
  99.2 February 27, 2018 Conference Call Transcript.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Lexington Realty Trust
       
       
Date: February 28, 2018 By:  /s/ Patrick Carroll  
  Patrick Carroll
  Chief Financial Officer

 

 

 

 

Exhibit Index

 

99.1 Quarterly Supplemental Information, Fourth Quarter 2017.
99.2 February 27, 2018 Conference Call Transcript.

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

Exhibit 99.1

 

 

 

 

 

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

December 31, 2017

 

Table of Contents

 

Section   Page
     
Fourth Quarter 2017 Earnings Press Release   3
     
Portfolio Data    
Investment / Capital Recycling Summary   15
Financing Summary   16
Leasing Summary   17
Other Revenue Data   19
Portfolio Detail by Asset Class   21
Portfolio Composition   22
Components of Net Asset Value   23
Top Markets   24
Single-Tenant Office Markets   25
Tenant Industry Diversification   26
Top 10 Tenants or Guarantors   27
Lease Rollover Schedules – GAAP Basis   28
Property Leases and Vacancies – Consolidated Portfolio   30
Property Leases and Vacancies – Non-consolidated Portfolio   36
Select Credit Metrics Summary   37
Financial Covenants   38
Mortgages and Notes Payable   39
Debt Maturity Schedule   41
Selected Balance Sheet Account Data   42
Non-GAAP Measures – Definitions   43
Reconciliation of Non-GAAP Measures   45
Investor Information   49

 

This Quarterly Earnings Press Release and Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of Lexington Realty Trust (“Lexington”), which may cause actual results, performance or achievements of Lexington and its subsidiaries 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, but not limited to, risks related to: (1) the authorization of 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 available to all equityholders and unitholders – diluted for the year ending December 31, 2018, (3) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction on the terms described herein or at all, (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 new 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 revise those forward-looking statements to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized.

 

 

 

 

LEXINGTON REALTY TRUST

TRADED: NYSE: LXP

One Penn Plaza, Suite 4015

New York, NY 10119-4015

FOR IMMEDIATE RELEASE

 

LEXINGTON REALTY TRUST REPORTS FOURTH QUARTER 2017 RESULTS

 

New York, NY - February 27, 2018 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the fourth quarter and year ended December 31, 2017.

 

Fourth Quarter 2017 Highlights

 

Generated Net Income attributable to common shareholders of $29.2 million, or $0.12 per diluted common share.
Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $63.1 million, or $0.26 per diluted common share.
Acquired four industrial properties for an aggregate cost of $140.0 million.
Formed a joint venture which acquired a 151-acre parcel of developable land to pursue industrial build-to-suit opportunities.
Disposed of eight properties for an aggregate of $47.9 million.
Completed one million square feet of new leases and lease extensions with portfolio 98.9% leased at quarter end.
Collected $49.1 million in full satisfaction of a loan to a joint venture.
Financed an office property generating initial gross proceeds of $45.4 million.
Repaid $40.0 million on the revolving credit facility and retired an aggregate of $18.4 million of secured debt.
Increased the quarterly common share/unit dividend/distribution to $0.1775 per common share/unit.

 

Full Year 2017 Highlights

 

Generated Net Income attributable to common shareholders of $79.1 million, or $0.33 diluted common share.
Generated Adjusted Company FFO of $238.6 million, or $0.97 per diluted common share.
Acquired/completed 15 consolidated properties and the last building of the Lake Jackson, Texas build-to-suit project for an aggregate initial basis of $727.6 million.
Disposed of 34 consolidated properties for gross proceeds of $241.7 million.
Sold a non-consolidated interest in an office property for $6.2 million.
Completed 3.8 million square feet of new leases and lease extensions.
Retired an aggregate of $63.4 million of secured debt with a weighted-average fixed interest rate of 6.0% and obtained $45.4 million of secured debt with a weighted-average fixed interest rate of 5.2%.
Amended the revolving credit facility, together with the related term loans, increasing the capacity by $200.0 million.

 

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Collected an aggregate of $138.0 million in full satisfaction of three loan investments.
Issued 1.6 million common shares at an average gross price of $10.89 per share under its ATM offering program.

 

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 “We finished off the year strong with fourth quarter Adjusted Company FFO of $0.26 per diluted common share. During 2017, we raised $386 million by monetizing our loan portfolio and disposing of 34 properties while adding 15 properties to our portfolio for $728 million.  As a result, we have substantially upgraded the quality of our holdings, shrunk our office footprint and simplified our operations which we expect to lead to lower operating costs. Additionally, strong leasing volume, along with non-core assets sales, brought our overall portfolio to approximately 99% leased at year end.

 

The guidance we have initiated today in the range of $0.95 to $0.98 per share suggests that our operating results in 2018 will be comparable to 2017 even as we anticipate lengthening our average debt maturity, providing concessions on early lease extensions and continuing with our capital recycling activities.  We intend to use proceeds from financings and dispositions to reinvest into industrial acquisitions and build-to-suit opportunities and to pay down debt.”

 

FINANCIAL RESULTS

 

Revenues

 

For the quarter ended December 31, 2017, total gross revenues were $102.2 million, compared with total gross revenues of $95.3 million for the quarter ended December 31, 2016. The increase was primarily attributable to revenue generated from property acquisitions and new leases, partially offset by 2017 property sales and lease expirations.

 

Net Income Attributable to Common Shareholders

 

For the quarter ended December 31, 2017, net income attributable to common shareholders was $29.2 million, or $0.12 per diluted share, compared with net income attributable to common shareholders for the quarter ended December 31, 2016 of $14.4 million, or $0.06 per diluted share.

 

Adjusted Company FFO

 

For the quarter ended December 31, 2017, Lexington generated Adjusted Company FFO of $63.1 million, or $0.26 per diluted share, compared to Adjusted Company FFO for the quarter ended December 31, 2016 of $59.7 million, or $0.24 per diluted share.

 

Dividends/Distributions

 

As previously announced, during the fourth quarter of 2017, Lexington increased its quarterly common share/unit dividend/distribution to $0.1775 per common share/unit, which equates to an annualized dividend of $0.71 per common share/unit. The declared quarterly dividend/distribution was paid on January 16, 2018 to common shareholders/unitholders of record as of December 29, 2017. In addition, Lexington declared a dividend of $0.8125 per share on its Series C Preferred, which was paid February 15, 2018 to Series C Preferred Shareholders of record as of January 31, 2018.

 

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Transaction Activity

 

ACQUISITIONS

 

Primary Tenant (Guarantor)  Location  Sq. Ft.
(Approx.)
   Property Type  Initial Basis
($000)
   Approximate
Lease Term
(Yrs)
 
Caterpillar, Inc.  Lafayette, IN   309,000   Industrial  $17,450    7 
Undisclosed(1)  Romulus, MI   500,000   Industrial   38,893    15 
Lipari Foods Operating Company, LLC  Warren, MI   260,000   Industrial   46,955    15 
Undisclosed(1)  Winchester, VA   400,000   Industrial   36,700    14 
       1,469,000      $139,998      

 

1.Tenant is a domestic subsidiary of an international automaker.

 

Including fourth quarter acquisition activity, consolidated 2017 acquisition activity totaled $727.6 million at average GAAP and cash capitalization rates of 7.3% and 6.4%, respectively.

 

In December 2017, Lexington made an initial contribution of $5.8 million for a 90% interest in a newly-formed joint venture with a developer, which will pursue industrial build-to-suit opportunities. The joint venture acquired a parcel of developable land totaling 151 acres in a submarket of Columbus, Ohio.

 

PROPERTY DISPOSITIONS

 

Primary Tenant  Location  Property Type  Gross
Disposition
Price
($000)
   Annualized
Net Income(1)
($000)
   Annualized
NOI(1)
($000)
   Month of
Disposition
  %
Leased
 
National-Louis University(2)  Lisle, IL  Office  $9,120   $222   $1,813   October   100%
Vacant  High Point, NC  Multi-Tenant Industrial   10,000    508    1,134   October   0%
Vacant  Fisher, IN  Multi-Tenant Office   9,000    (371)   (371)  October   0%
Vacant(3)  Pine Bluff, AR  Office   43    311    386   October   0%
Food Lion, LLC/Delhaize America, Inc.  Staunton, VA  Other   1,688    158    166   November   100%
Entergy Arkansas, Inc.  Little Rock, AR  Office   3,100    182    237   December   100%
Time Customer Service, Inc.  Tampa, FL  Office   13,700    722    1,128   December   100%
Toys "R" Us, Inc./Toys "R" Us-Delaware, Inc.(4)  Tulsa, OK  Other   1,233    3    106   December   100%
         $47,884   $1,735   $4,599         

 

1.Quarterly period prior to sale, excluding impairment charges, annualized.
2.Conveyed to lender in a foreclosure sale.
3.Property was sold subject to a lease which expired October 31, 2017.
4.Tenant has declared bankruptcy.

 

Including fourth quarter disposition activity, consolidated 2017 property disposition volume totaled $241.7 million at average GAAP and cash capitalization rates of 7.5% and 7.7%, respectively.

 

LOAN INVESTMENTS

 

Lexington collected $49.1 million in full satisfaction of a loan made to a joint venture that owns a property in Katy, Texas. The joint venture satisfied the loan with proceeds from a new third-party non-recourse mortgage financing in the original principal amount of $50.0 million, which bears interest at an annual rate of 5.1% and matures in December 2022.

 

 5 

 

 

Leasing Activity

 

During the fourth quarter of 2017, Lexington executed the following new and extended leases:

 

   LEASE EXTENSIONS       
                 
   Location  Primary Tenant(1)  Prior
Term
  Lease
Expiration Date
  Sq. Ft. 
   Office/Multi-Tenant                  
1  Honolulu   HI  N/A  MTM  09/2018   1,900 
1  Total office lease extensions                1,900 
                      
   Industrial                  
1  Statesville   NC  Geodis Logistics LLC  12/2017  12/2020   639,800 
2  Franklin   TN  Essex Group, Inc.  12/2018  12/2023   289,330 
2  Total industrial lease extensions                929,130 
                      
3  Total lease extensions                931,030 

 

   NEW LEASES              
                  
   Location         Lease
Expiration Date
  Sq. Ft. 
   Office/Multi-Tenant                   
1  Farmers Branch   TX  Home Point Financial Corporation      09/2025   64,788 
2  Farmers Branch   TX  BBVA Dallas Creation Center, Inc.      07/2028   33,028 
2  Total new office leases                 97,816 
                       
2  Total new leases                 97,816 
                       
5  TOTAL NEW AND EXTENDED LEASES                 1,028,846 

 

1.Leases greater than 10,000 square feet.

 

As of December 31, 2017, Lexington's portfolio was 98.9% leased.

 

BALANCE SHEET/CAPITAL MARKETS

 

In the fourth quarter, Lexington obtained an aggregate of $45.4 million in non-recourse financing on an office property in Charlotte, North Carolina, consisting of a first mortgage loan and a mezzanine loan. The first mortgage loan in the original principal amount of $37.4 million has a 15-year term, bears interest at a fixed rate of 5.3% per annum and is interest only for the first 10 years. The mezzanine financing in the initial principal amount of $8.0 million has a five-year term, is interest only at a fixed rate of 5.0% per annum and may be increased to $12.0 million upon certain events.

 

Also, during the fourth quarter, Lexington repaid $40.0 million on its revolving credit facility and satisfied an aggregate of $18.4 million of non-recourse mortgage debt.

 

 6 

 

 

2018 EARNINGS GUIDANCE

 

Lexington 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 $0.76 to $0.79. Lexington estimates that its Adjusted Company FFO for the year ended December 31, 2018 will be within an expected 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.

 

FOURTH QUARTER 2017 CONFERENCE CALL

 

Lexington will host a conference call today, Tuesday, February 27, 2018, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2017. 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 May 27, 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 10116720. A live webcast of the conference call will be available at www.lxp.com within the Investors section.

 

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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 Relations

Lexington Realty Trust

Phone: (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 REIT, (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 has filed 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 or 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.

 

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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 Press 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 rent 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 estimated 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.

 

# # #

 

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except share and per share data)

 

   Three months ended December 31,   Twelve months ended December 31, 
   2017   2016   2017   2016 
Gross revenues:                    
Rental  $93,909   $87,261   $359,832   $398,065 
Tenant reimbursements   8,260    8,065    31,809    31,431 
Total gross revenues   102,169    95,326    391,641    429,496 
Expense applicable to revenues:                    
Depreciation and amortization   (45,262)   (41,361)   (173,968)   (166,048)
Property operating   (12,410)   (12,512)   (49,194)   (47,355)
General and administrative   (8,597)   (8,072)   (34,158)   (31,104)
Litigation settlement           (2,050)    
Non-operating income   5,381    3,543    10,378    13,043 
Interest and amortization expense   (20,055)   (19,459)   (77,883)   (88,032)
Debt satisfaction gains (charges), net   3,818    (157)   6,196    (975)
Impairment charges and loan losses   (1,419)   (24,332)   (44,996)   (100,236)
Gains on sales of properties   8,350    23,097    63,428    81,510 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities   31,975    16,073    89,394    90,299 
Provision for income taxes   (743)   (340)   (1,917)   (1,439)
Equity in earnings (losses) of non-consolidated entities   216    1,196    (848)   7,590 
Net income   31,448    16,929    86,629    96,450 
Less net income attributable to noncontrolling interests   (598)   (928)   (1,046)   (826)
Net income attributable to Lexington Realty Trust shareholders   30,850    16,001    85,583    95,624 
Dividends attributable to preferred shares – Series C   (1,572)   (1,572)   (6,290)   (6,290)
Allocation to participating securities   (43)   (38)   (226)   (225)
Net income attributable to common shareholders  $29,235   $14,391   $79,067   $89,109 
Net income attributable to common shareholders – per common share basic  $0.12   $0.06   $0.33   $0.38 
Weighted-average common shares outstanding – basic   238,131,814    235,066,967    237,758,408    233,633,058 
Net income attributable to common shareholders – per common share diluted  $0.12   $0.06   $0.33   $0.37 
Weighted-average common shares outstanding – diluted   241,821,194    235,204,568    241,537,837    237,679,031 

 

 10 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31,

(Unaudited and in thousands, except share and per share data)

 

   2017   2016 
Assets:          
Real estate, at cost  $3,936,459   $3,533,172 
Real estate - intangible assets   599,091    597,294 
Investments in real estate under construction       106,652 
    4,535,550    4,237,118 
Less: accumulated depreciation and amortization   1,225,650    1,208,792 
Real estate, net   3,309,900    3,028,326 
Assets held for sale   2,827    23,808 
Cash and cash equivalents   107,762    86,637 
Restricted cash   4,394    31,142 
Investment in and advances to non-consolidated entities   17,476    67,125 
Deferred expenses, net   31,693    33,360 
Loans receivable, net       94,210 
Rent receivable – current   5,450    7,516 
Rent receivable – deferred   52,769    31,455 
Other assets   20,749    37,888 
Total assets  $3,553,020   $3,441,467 
           
Liabilities and Equity:          
Liabilities:          
Mortgages and notes payable, net  $689,810   $738,047 
Revolving credit facility borrowings   160,000     
Term loans payable, net   596,663    501,093 
Senior notes payable, net   495,198    494,362 
Trust preferred securities, net   127,196    127,096 
Dividends payable   49,504    47,264 
Liabilities held for sale       191 
Accounts payable and other liabilities   38,644    59,601 
Accrued interest payable   5,378    6,704 
Deferred revenue - including below market leases, net   33,182    39,895 
Prepaid rent   16,610    14,723 
Total liabilities   2,212,185    2,028,976 
           
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, 240,689,081 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively   24    24 
Additional paid-in-capital   2,818,520    2,800,736 
Accumulated distributions in excess of net income   (1,589,724)   (1,500,966)
Accumulated other comprehensive income (loss)   1,065    (1,033)
Total shareholders’ equity   1,323,901    1,392,777 
Noncontrolling interests   16,934    19,714 
Total equity   1,340,835    1,412,491 
Total liabilities and equity  $3,553,020   $3,441,467 

 

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

(Unaudited and in thousands, except share and per share data)

 

   Three Months Ended
December 31,
   Twelve Months Ended
December 31,
 
   2017   2016   2017   2016 
EARNINGS PER SHARE:                    
                     
Basic:                    
Net income attributable to common shareholders  $29,235   $14,391   $79,067   $89,109 
                     
Weighted-average number of common shares outstanding - basic   238,131,814    235,066,967    237,758,408    233,633,058 
                     
Net income attributable to common shareholders - per common share basic  $0.12   $0.06   $0.33   $0.38 
                     
Diluted:                    
Net income attributable to common shareholders - basic  $29,235   $14,391   $79,067   $89,109 
Impact of assumed conversions   338        147    (159)
Income from continuing operations attributable to common shareholders  $29,573   $14,391   $79,214   $88,950 
                     
Weighted-average common shares outstanding - basic   238,131,814    235,066,967    237,758,408    233,633,058 
Effect of dilutive securities:                    
Share options   57,731    137,601    86,285    230,352 
Operating Partnership Units   3,631,649        3,693,144    3,815,621 
Weighted-average common shares outstanding - diluted   241,821,194    235,204,568    241,537,837    237,679,031 
                     
Net income attributable to common shareholders - per common share diluted  $0.12   $0.06   $0.33   $0.37 

 

 12 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

ADJUSTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION

(Unaudited and in thousands, except share and per share data)

 

   Three Months Ended
December 31,
   Twelve Months Ended
December 31,
 
   2017   2016   2017   2016 
FUNDS FROM OPERATIONS:                    
Basic and Diluted:                    
Net income attributable to common shareholders  $29,235   $14,391   $79,067   $89,109 
Adjustments:                    
Depreciation and amortization   44,050    39,840    168,683    159,363 
Impairment charges - real estate, including non-consolidated entities   1,419    24,332    43,214    100,236 
Noncontrolling interests - OP units   339    686    147    (159)
Amortization of leasing commissions   1,212    1,520    5,285    6,684 
Joint venture and noncontrolling interest adjustment   257    369    1,121    1,111 
Gains on sales of properties, including non-consolidated entities   (8,350)   (23,729)   (64,880)   (87,520)
Tax on sales of properties       2        52 
FFO available to common shareholders and unitholders - basic   68,162    57,411    232,637    268,876 
Preferred dividends   1,572    1,572    6,290    6,290 
Interest and amortization on 6.00% Convertible Notes               532 
Amount allocated to participating securities   43    38    226    225 
FFO available to all equityholders and unitholders - diluted   69,777    59,021    239,153    275,923 
Litigation reserve           2,050     
Debt satisfaction (gains) charges, net, including non-consolidated entities   (3,796)   157    (6,174)   975 
Impairment loss - loan receivable           5,294     
Unearned contingent acquisition consideration   (3,922)       (3,922)    
Transaction costs   1,071    508    2,171    837 
Adjusted Company FFO available to all equityholders and unitholders - diluted   63,130    59,686    238,572    277,735 
                     
FUNDS AVAILABLE FOR DISTRIBUTION:                    
Adjustments:                    
Straight-line rents   (7,232)   (2,051)   (19,784)   (37,748)
Lease incentives   513    417    1,969    1,673 
Amortization of above/below market leases   364    530    1,544    2,057 
Lease termination payments, net   (253)   (1,814)   (690)   (8,216)
Non-cash interest, net   1,018    (387)   2,465    (1,913)
Non-cash charges, net   2,119    2,092    8,318    8,998 
Tenant improvements   (1,136)   (665)   (11,203)   (1,957)
Lease costs   (1,242)   (393)   (6,526)   (6,558)
Company Funds Available for Distribution  $57,281   $57,415   $214,665   $234,071 
                     
Per Common Share and Unit Amounts                    
Basic:                    
FFO  $0.28   $0.24   $0.96   $1.13 
Diluted:                    
FFO  $0.28   $0.24   $0.97   $1.13 
Adjusted Company FFO  $0.26   $0.24   $0.97   $1.14 
                     
Weighted-Average Common Shares                    
Basic:                    
Weighted-average common shares outstanding - basic EPS   238,131,814    235,066,967    237,758,408    233,633,058 
Operating partnership units(1)   3,631,649    3,808,185    3,693,144    3,815,621 
Weighted-average common shares outstanding - basic FFO   241,763,463    238,875,152    241,451,552    237,448,679 
                     
Diluted:                    
Weighted-average common shares outstanding - diluted EPS   241,821,194    235,204,568    241,537,837    237,679,031 
Unvested share-based payment awards   713,351    674,053    666,127    549,049 
6.00% Convertible Guaranteed Notes               1,077,626 
Operating partnership units(1)       3,808,185         
Preferred shares - Series C   4,710,570    4,710,570    4,710,570    4,710,570 
Weighted-average common shares outstanding - diluted FFO   247,245,115    244,397,376    246,914,534    244,016,276 

 

(1)Includes OP units other than OP units held by Lexington.

 

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

 

2018 EARNINGS GUIDANCE

 

   Twelve Months Ended
December 31, 2018
 
   Range 
Estimated:          
Net income attributable to common shareholders per diluted common share(1)  $0.76   $0.79 
Depreciation and amortization   0.68    0.68 
Impact of capital transactions   (0.49)   (0.49)
Estimated Adjusted Company FFO per diluted common share  $0.95   $0.98 

 

(1)       Assumes all convertible securities are dilutive.

 

 14 

 

 

LEXINGTON REALTY TRUST

2017 Fourth Quarter Investment / Capital Recycling Summary

 

PROPERTY INVESTMENTS

 

   Primary Tenant  Location  Square Feet (Approx.)   Property Type  Initial Basis
($000)
   Month
Closed
  Primary Lease
Expiration
1  Caterpillar, Inc.  Lafayette   IN   309,000   Industrial  $17,450   October  09/2024
2  Undisclosed (1)  Romulus   MI   500,000   Industrial   38,893   November  08/2032
3  Lipari Foods Operating Company, LLC  Warren   MI   260,000   Industrial   46,955   November  10/2032
4  Undisclosed (1)  Winchester   VA   400,000   Industrial   36,700   December  12/2031
                              
4  TOTAL PROPERTY INVESTMENTS (2)          1,469,000      $139,998       

 

CAPITAL RECYCLING

 

   PROPERTY DISPOSITIONS                             
   Primary Tenant  Location  Property Type  Gross
Sale Price
($000)
   Annualized
Net Income
($000) (3)
   Annualized
NOI
($000)(3)(4)
   Month of
Disposition
  % Leased   Gross Sale
Price PSF
 
                                 
1  National-Louis University (5)  Lisle   IL   Office  $9,120   $222   $1,813   October   100%  $91.74 
2  Vacant  High Point   NC   Multi-tenant - Industrial   10,000    508    1,134   October   0%   40.84 
3  Vacant  Fishers   IN  Multi-tenant - Office   9,000    (371)   (371)  October   0%   46.63 
4  Vacant (6)  Pine Bluff   AR   Office   43    311    386   October   0%   1.58 
5  Food Lion, LLC / Delhaize America, Inc.  Staunton   VA  Other   1,688    158    166   November   100%   73.39 
6  Entergy Arkansas Inc.  Little Rock   AR  Office   3,100    182    237   December   100%   85.37 
7  Time Customer Service, Inc.  Tampa   FL  Office   13,700    722    1,128   December   100%   103.02 
8  Toys “R” Us, Inc. / Toys "R" Us-Delaware, Inc.(7)  Tulsa   OK  Other   1,233    3    106   December   100%   28.58 
8  TOTAL PROPERTY DISPOSITIONS            $47,884   $1,735   $4,599              

 

Footnotes

(1)Tenant is a domestic subsidiary of an international automaker.
(2)The above were acquired at aggregate weighted-average GAAP and cash capitalization rates of 7.2% and 6.5%, respectively. Lexington also made an initial contribution of $5.8 million for a 90% interest in a newly-formed joint venture with a developer.

(3)See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(4)Quarterly period prior to sale; excluding impairment charges, annualized.
(5)Conveyed to lender in a foreclosure sale.
(6)Property was sold subject to a lease which expired October 31, 2017.
(7)Tenant has declared bankruptcy.

 

 15 

 

 

LEXINGTON REALTY TRUST

2017 Fourth Quarter Financing Summary

 

DEBT RETIRED

 

   Location  Primary Tenant  Property Type  Face /
Satisfaction
($000)
   Fixed Rate   Maturity
Date
                     
   Consolidated Mortgage Debt:                   
1  Lisle, IL (1)  National-Louis University  Office  $9,120    6.500%  N/A
2  Orlando, FL  Zenith Education Group, Inc.  Office   9,309    5.722%  N/A
            $18,429         

 

PROPERTY LEVEL FINANCING

 

   Location  Primary Tenant  Property Type  Face /
Satisfaction
($000)
   Fixed Rate   Maturity
Date
   Consolidated Mortgage Debt:                   
1  Charlotte, NC  AvidXchange, Inc.  Office  $37,400    5.298%  01/2033
2  Charlotte, NC (2)  AvidXchange, Inc.  Office   8,000    5.000%  12/2022
            $45,400         
   Non-Consolidated Mortgage Debt:                   
1  Houston, TX (3)  British Schools of America, LLC  Other  $50,000    5.130%  12/2022

 

CORPORATE LEVEL FINANCING

 

    Quarterly Activity, Net ($000)
Revolving Credit Facility   $40,000 satisfaction

 

Footnotes:

(1)Property conveyed to lender in a foreclosure sale.
(2)May be increased to $12.0 million upon certain events.
(3)$49.1 million of proceeds were used to satisfy a loan from Lexington.

 

 16 

 

 

LEXINGTON REALTY TRUST

2017 Fourth Quarter Leasing Summary

 

LEASE EXTENSIONS

 

   Tenant (Guarantor) (4)  Location  Prior
Term
  Lease
Expiration
Date
  Sq. Ft.   New GAAP
Rent Per
Annum
($000)(1)
   Prior GAAP
Rent Per
Annum
($000)
   New Cash
Rent Per
Annum
($000)(1)(3)
   Prior Cash
Rent Per
Annum
($000)(3)
 
   Office / Multi-Tenant Office                                      
1  N/A  Honolulu   HI  MTM  09/2018   1,900   $37   $36   $37   $36 
                                          
1  Total office lease extension                1,900   $37   $36   $37   $36 
                                          
   Industrial                                      
1  Geodis Logistics LLC (Geodis America, Inc.)  Statesville   NC  12/2017  12/2020   639,800   $2,493   $1,916   $2,463   $2,154 
2  Essex Group, Inc. (United Technologies Corporation)  Franklin   TN  12/2018  12/2023   289,330    735    735    735    735 
                                          
2  Total industrial lease extensions                929,130   $3,228   $2,651   $3,198   $2,889 
             `                            
3  TOTAL EXTENDED LEASES                931,030   $3,265   $2,687   $3,235   $2,925 

 

NEW LEASES

 

   Tenant (Guarantor)  Location    Lease
Expiration
 Date
  Sq. Ft.   New GAAP
Rent Per
Annum
($000)(1)
   New Cash
Rent Per
Annum
($000)(1)(3)
  
   Office/Multi-Tenant Office                             
1  Home Point Financial Corporation (Home Point Capital Inc.)  Farmers Branch   TX    09/2025   64,788   $908   $1,004   
2  BBVA Dallas Creation Center, Inc. (BBVA Compass Bancshares, Inc.)  Farmers Branch   TX    07/2028   33,028    521    537   
                                 
2  Total office new leases               97,816   $1,429   $1,541   
                                 
2  TOTAL NEW LEASES               97,816   $1,429   $1,541   
                                 
5  TOTAL NEW AND EXTENDED LEASES               1,028,846   $4,694   $4,776   

 

 17 

 

 

LEXINGTON REALTY TRUST

2017 Fourth Quarter Leasing Summary (Continued)

 

LEASE NON-RENEWALS(2)

 

   Tenant  Location  Lease
Expiration
 Date
  Sq. Ft.   9 months 2017
GAAP Rent
($000)
   9 months 2017
Cash Rent
($000)(3)
 
   Office                         
1  CRG-Richmond Tenant, LLC  Richmond   VA  12/2017   42,947   $247   $247 
                             
1  TOTAL LEASE NON-RENEWALS                         

 

Footnotes

(1)Assumes twelve months rent from the later of 1/1/18 or lease commencement/extension, excluding free rent periods as applicable.
(2)Excludes multi-tenant properties and non-consolidated investments.
(3)See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(4)Leases greater than 10,000 square feet.

 

 18 

 

 

LEXINGTON REALTY TRUST

Other Revenue Data

12/31/2017

($000)

 

Other Revenue Data

 

   GAAP  Rent 
Asset Class  Twelve months ended 
   12/31/17 (1)   12/31/17
Percentage
   12/31/16
Percentage
 
Office  $179,939    51.8%   52.9%
Industrial   151,440    43.6%   39.7%
Other               
Multi-tenant   8,513    2.5%   3.8%
Retail   3,648    1.0%   2.5%
Specialty   3,843    1.1%   1.1%
   $347,383    100.0%   100.0%

 

   GAAP  Rent 
Credit Ratings  (2)  Twelve months ended 
   12/31/17 (1)   12/31/17
Percentage
   12/31/16
Percentage
 
Investment Grade  $139,336    40.1%   37.0%
Non-Investment Grade   53,825    15.5%   17.0%
Unrated   154,222    44.4%   46.0%
   $347,383    100.0%   100.0%

 

Weighted-Average Lease Term - Cash Basis As of 12/31/17   As of 12/31/16  
  9.1 years   8.6 years  

 

Rent Estimates for Current Assets

 

Year  GAAP  (3)   Cash  (3)   Difference 
2018  $372,105   $354,240   $(17,865)
2019   344,287    333,463    (10,824)

 

Footnotes

(1)Twelve months ended 12/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2017.
(2)Credit ratings are based upon either tenant, guarantor or parent. Generally, multi-tenant assets are included in unrated.
(3)Amounts assume (1) lease terms for non-cancellable periods only, (2) no new or renegotiated leases are entered into after 12/31/2017, and (3) no properties are sold or acquired after 12/31/2017.

 

 19 

 

 

LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

12/31/2017

($000)

 

Same-Store NOI (1)

 

   Twelve months ended December 31, 
   2017   2016   2015 
Total Cash  Rent  $251,384   $249,954   $248,539 
Tenant Reimbursements   22,134    22,811    23,930 
Property Operating Expenses   (34,697)   (33,346)   (37,469)
Same-Store NOI  $238,821   $239,419   $235,000 
                
Change in Same-Store NOI   (0.2)%   1.9%     

 

Same-Store Percent Leased (2)  As of 12/31/17   As of 12/31/16   As of 12/31/15 
   98.4%   98.7%   98.9%

 

Lease Escalation Data (3)

 

 

 

Footnotes

(1)NOI is on a consolidated cash basis for all consolidated properties except properties acquired and sold in 2017, 2016 and 2015. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(2)Excludes properties acquired or sold in 2017, 2016 and 2015.
(3)Based on twelve months consolidated cash rents for single-tenant leases (properties greater than 70% leased) owned as of December 31, 2017. Excludes parking operations and rents from prior tenants.

 

 20 

 

 

LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

12/31/2017

($000, except square footage)

 

Asset Class  YE 2015   YE 2016   YE 2017 
             
Office               
% of ABR (1)   49.6%   52.9%   51.8%
LTL (5)   23.2%   26.9%   30.1%
STL (6)   76.8%   73.1%   69.9%
Leased   99.6%   99.6%   99.2%
Wtd. Avg. Lease Term (2)   7.2    7.2    7.7 
Mortgage Debt  $329,696   $490,948   $495,842 
% Investment Grade (1)   48.0%   48.1%   52.0%
Square Feet   12,847,877    11,569,940    10,881,264 
                
Industrial               
% of ABR (1)   30.5%   39.7%   43.6%
LTL (5)   47.4%   50.8%   47.1%
STL (6)   52.6%   49.2%   52.9%
Leased   99.6%   99.9%   99.9%
Wtd. Avg. Lease Term (2)   10.1    10.4    10.6 
Mortgage Debt  $292,293   $240,790   $193,529 
% Investment Grade (1)   27.9%   26.2%   28.9%
Square Feet   25,693,585    27,476,653    35,396,894 
                
Other               
% of ABR (1)   19.9%   7.4%   4.6%
LTL (5)   74.7%   20.9%   26.1%
STL (6)   25.3%   79.1%   73.9%
Leased   64.7%   60.5%   81.8%
Wtd. Avg. Lease Term (2)(3)   15.3    9.5    10.1 
Mortgage Debt  $269,336   $13,435   $7,697 
% Investment Grade (1)   8.4%   16.0%   12.9%
Square Feet   3,728,561    4,277,704    2,335,904 
                
Loans Receivable  $95,871   $94,210   $- 
Construction in progress (4)  $103,954   $111,771   $4,219 

 

Footnotes

(1)Percentage of GAAP rent, excluding termination income, for consolidated properties owned as of each respective period.
(2)Cash basis.
(3)Cash basis adjusted to reflect NY land leases to the first purchase option date, as applicable.
(4)Includes development classified as real estate under construction on a consolidated basis.
(5)Long-term leases ("LTL") are defined as leases having a remaining term of ten years or longer.
(6)Short-term leases ("STL") are defined as leases having a remaining term of less than ten years.

 

 21 

 

 

LEXINGTON REALTY TRUST

Portfolio Composition

12/31/2017

 

 

 

 

 

Footnotes

(1)Based on gross book value of real estate assets and real estate under construction as of 12/31/2017; excludes held for sale assets.
(2)Based on respective period GAAP rent, excluding termination income.

 

 22 

 

 

LEXINGTON REALTY TRUST

Components of Net Asset Value

12/31/2017

($000)

 

The purpose of providing the following information is to enable readers to derive their own estimates of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation.

 

Consolidated properties twelve month net operating income (NOI) (1)     
Office  $163,974 
Industrial   128,253 
Other     
Multi-Tenant   4,033 
Retail   2,215 
Specialty   3,291 
Total Net Operating Income  $301,766 
      
Lexington's share of non-consolidated twelve month NOI (1)     
Office  $421 
Other   1,775 
   $2,196 
Other income     
Advisory fees  $1,049 

 

 

 

In service assets not fairly valued by capitalized NOI method (1)     
Wholly-owned assets less than 70% leased  $32,480 
Wholly-owned assets acquired in 2017 (2)  $645,212 
      
Add other assets:     
Assets held for sale  $2,827 
Construction in progress   4,219 
Cash and cash equivalents   107,762 
Restricted cash   4,394 
Accounts receivable, net   5,450 
Other assets   20,749 
Total other assets  $145,401 
      
Liabilities:     
Corporate level debt (face amount)  $1,389,120 
Mortgages and notes payable (face amount)   697,068 
Dividends payable   49,504 
Accounts payable, accrued expenses and other liabilities   60,632 
Preferred stock, at liquidation value   96,770 
Lexington's share of non-consolidated mortgages   20,886 
Total deductions  $2,313,980 
      
Common shares & OP units at 12/31/2017   244,318,237 

 

Footnotes

(1)NOI for the existing property portfolio at December 31, 2017, excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70% and assets acquired in 2017. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, Lexington's net book value has been used. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(2)Excludes Lake Jackson, TX, which is included in NOI above.

 

 23 

 

 

LEXINGTON REALTY TRUST

Top Markets

12/31/2017

 

   Core Based Statistical Area (2)  Percent of
GAAP Rent as of
12/31/17  (1)
 
1  Houston-Sugar Land-Baytown, TX   10.8%
2  Dallas-Fort Worth-Arlington, TX   5.2%
3  Memphis, TN-MS-AR   4.8%
4  Kansas City, MO-KS   4.3%
5  Kennewick-Pasco-Richland, WA   3.8%
6  New York-Northern New Jersey-Long Island, NY-NJ-PA   3.6%
7  Richmond, VA   3.3%
8  Phoenix-Mesa-Scottsdale, AZ   3.2%
9  Detroit-Warren-Livonia, MI   2.9%
10  Philadelphia-Camden-Wilmington, PA-NJ-DE-MD   2.5%
11  Chicago-Naperville-Joliet, IL-IN-WI   2.4%
12  Charlotte-Concord-Gastonia, NC-SC   2.3%
13  Denver-Aurora, CO   2.3%
14  Columbus, OH   2.1%
15  Las Vegas-Paradise, NV   2.0%
16  San Jose-Sunnyvale-Santa Clara, CA   1.9%
17  Jackson, MS   1.8%
18  Atlanta-Sandy Springs-Marietta, GA   1.8%
19  Washington-Arlington-Alexandria, DC-VA-MD-WV   1.4%
20  Nashville-Davidson—Murfreesboro—Franklin, TN   1.4%
   Total Top Markets (3)   63.7%

 

Footnotes

(1)Twelve months ended 12/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2017.
(2)A Core Based Statistical Area is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000.  These standards are used to replace the definitions of metropolitan areas that were defined in 1990.
(3)Total shown may differ from detailed amounts due to rounding.

 

 24 

 

 

LEXINGTON REALTY TRUST

Single-Tenant Office Markets (1)(2)

12/31/2017

 

 

Footnotes

(1)Twelve months ended 12/31/2017 GAAP rent, excluding termination income, recognized for consolidated single-tenant office properties owned as of 12/31/2017.
(2)A Core Based Statistical Area is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000. These standards are used to replace the definitions of metropolitan areas that were defined in 1990.

 

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LEXINGTON REALTY TRUST

Tenant Industry Diversification (1)

12/31/2017

 

 

Footnotes

(1)Twelve months ended 12/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2017.

 

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LEXINGTON REALTY TRUST

Top 10 Tenants or Guarantors

12/31/2017

 

Top 10 Tenants or Guarantors - GAAP Basis

 

Tenants or Guarantors  Number
of Leases
  Sq. Ft.
Leased
   Sq. Ft. Leased
as a Percent of
Consolidated
Portfolio (2)
   GAAP Rent
as of
12/31/2017
($000) (1)
   Percent of
GAAP Rent
as of
12/31/2017

($000) (1) (2)
 
The Dow Chemical Company  1   664,100    1.4%  $14,619    4.2%
Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)  1   456,412    0.9%   13,133    3.8%
FedEx Corporation / Federal Express Corporation  2   661,616    1.4%   12,148    3.5%
Nissan North America, Inc.  3   3,196,049    6.6%   11,338    3.3%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)  7   2,053,359    4.2%   9,941    2.9%
United States of America  3   398,214    0.8%   9,628    2.8%
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation  2   476,123    1.0%   7,889    2.3%
McGuireWoods LLP  1   224,537    0.5%   7,184    2.1%
Morgan, Lewis & Bockius LLP  1   289,432    0.6%   6,894    2.0%
Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC)  1   132,449    0.3%   6,773    1.9%
   22   8,552,291    17.6%  $99,547    28.7%

 

Footnotes

(1)Twelve months ended 12/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2017.
(2)Total shown may differ from detailed amounts due to rounding.

 

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LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis

12/31/2017

($000)

 

Year  Number of
Leases
Expiring
   GAAP
Rent as of
12/31/2017
   Percent of
GAAP Rent
as of
12/31/2017
   Percent of
GAAP Rent
as of
12/31/2016
 
2018   17   $14,698    4.4%   7.7%
2019   17    29,263    8.7%   9.5%
2020   13    18,888    5.6%   7.1%
2021   11    21,417    6.4%   6.7%
2022   6    12,607    3.8%   3.1%
2023   10    13,829    4.1%   4.0%
2024   13    19,642    5.8%   4.9%
2025   17    30,658    9.1%   10.0%
2026   12    17,101    5.1%   4.8%
2027   17    28,660    8.5%   7.6%
Thereafter   45    129,307    38.5%   30.1%
                     
Total (1)   178   $336,070    100.0%     

 

 

Footnotes

(1)Total shown may differ from detailed amounts due to rounding and does not include multi-tenant properties, parking operations and lease termination income.

 

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LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Properties GAAP Basis

12/31/2017

($000)

 

Year  Number of
Leases
Expiring
   GAAP
Rent as of
12/31/2017
   Percent of
GAAP Rent
as of
12/31/2017
 
2018   52   $16,765    4.9%
2019   25    30,844    9.0%
2020   18    19,030    5.5%
2021   17    24,476    7.1%
2022   6    12,607    3.7%
2023   10    13,829    4.0%
2024   15    19,843    5.8%
2025   19    31,068    9.0%
2026   12    17,101    5.0%
2027   17    28,660    8.3%
Thereafter   47    129,637    37.7%
                
Total (1)   238   $343,860    100.0%

 

 

Footnotes

(1)Total shown may differ from detailed amounts due to rounding and does not include parking operations and lease termination income.

 

 29 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
($000) (2)
   12/31/2017
Debt Balance
($000)
   Debt Maturity
OFFICE PROPERTIES                                
2018  5/31/2018  8900 Freeport Pkwy.  Irving  TX    Pacific Union Financial, LLC.   43,396    784    911    -   -
   6/30/2018  100 Barnes Rd.  Wallingford  CT    3M Company   44,400    507    528    -   -
   8/31/2018  3500 North Loop Rd.  McDonough  GA    Litton Loan Servicing LP   62,218    995    1,374    -   -
   9/30/2018  1701 Market St.  Philadelphia  PA    CBC Restaurant Corp.   8,070    211    224    -   -
   10/31/2018  3943 Denny Ave.  Pascagoula  MS    Huntington Ingalls Incorporated   94,841    593    593    -   -
   12/22/2018  5200 Metcalf Ave.  Overland Park  KS    Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation   320,198    5,406    5,374    32,828   05/2019
2019  1/31/2019  2999 Southwest 6th St.  Redmond  OR    VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.)   77,484    1,469    1,783    -   -
      820 Gears Rd.  Houston  TX    Ricoh USA, Inc.   78,895    1,154    1,141    -   -
   2/28/2019  10475 Crosspoint Blvd.  Indianapolis  IN    DMC Insurance Inc.   3,764    70    70    -   -
   4/1/2019  9201 Stateline Rd.  Kansas City  MO    Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation   155,925    2,483    2,483    15,618   05/2019
   6/19/2019  3965 Airways Blvd.  Memphis  TN    Federal Express Corporation   521,286    7,013    7,059    -   -
   6/30/2019  3265 East Goldstone Dr.  Meridian  ID    VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.)   77,484    1,105    1,466    8,428   08/2019
   7/15/2019  19019 North 59th Ave.  Glendale  AZ    Honeywell International Inc.   252,300    1,902    1,954    -   -
   7/31/2019  500 Jackson St.  Columbus  IN    Cummins Inc.   390,100    4,540    4,762    11,842   07/2019
   10/31/2019  10475 Crosspoint Blvd.  Indianapolis  IN    John Wiley & Sons, Inc.   123,416    2,268    2,319    -   -
      9601 Renner Blvd.  Lenexa  KS    VoiceStream PCS II Corporation (T-Mobile USA, Inc.)   77,484    1,142    1,492    8,631   12/2019
2020  2/14/2020  5600 Broken Sound Blvd.  Boca Raton  FL    Canon Solutions America, Inc. (Oce - USA Holding, Inc.)   143,290    2,244    2,500    19,088   02/2020
   5/31/2020  2401 Cherahala Blvd.  Knoxville  TN    AdvancePCS, Inc. / CaremarkPCS, L.L.C.   59,748    773    771    -   -
   6/30/2020  3711 San Gabriel  Mission  TX    VoiceStream PCS II Corporation /  T-Mobile West Corporation   75,016    989    973    -   -
   7/31/2020  13775 McLearen Rd.  Herndon  VA  12  Orange Business Services U.S., Inc. (Equant N.V.)   132,617    1,676    1,820    -   -
   8/31/2020  133 First Park Dr.  Oakland  ME    Omnipoint Holdings, Inc. (T-Mobile USA, Inc.)   78,610    1,147    1,482    8,370   10/2020
   9/30/2020  9200 South Park Center Loop  Orlando  FL    Zenith Education Group, Inc. (ECMC Group, Inc.)   59,927    1,136    1,173    -   -
2021  1/31/2021  1701 Market St.  Philadelphia  PA    Morgan, Lewis & Bockius LLP   289,432    4,298    4,432    -   -
   3/31/2021  1701 Market St.  Philadelphia  PA    Car-Tel Communications, Inc.   1,220    61    61    -   -
   6/30/2021  1415 Wyckoff Rd.  Wall  NJ    New Jersey Natural Gas Company   157,511    3,774    3,774    11,924   01/2021
      2050 Roanoke Rd.  Westlake  TX    Charles Schwab & Co., Inc.   130,199    1,647    1,677    -   -
   11/30/2021  29 South Jefferson Rd.  Whippany  NJ    CAE SimuFlite, Inc. (CAE INC.)   123,734    2,327    2,571    12,704   11/2021
   12/31/2021  2800 Waterford Lake Dr.  Midlothian  VA    Alstom Power, Inc.   99,057    2,184    2,306    -   -
2022  5/30/2022  13651 McLearen Rd.  Herndon  VA    United States of America   159,644    3,246    3,437    -   -
   6/30/2022  8555 South River Pkwy.  Tempe  AZ    Versum Materials US, LLC   95,133    1,750    1,674    -   -
   7/31/2022  1440 E 15th St.  Tucson  AZ    CoxCom, LLC   28,591    561    561    -   -
   10/31/2022  4455 American Way  Baton Rouge  LA    New Cingular Wireless PCS, LLC   70,100    1,087    1,104    -   -
   12/31/2022  231 N. Martingale Rd.  Schaumburg  IL    CEC Educational Services, LLC (Career Education Corporation)   317,198    4,621    4,485    -   -
2023  2/28/2023  1315 West Century Dr.  Louisville  CO    Rogue Wave Software, Inc.   20,000    347    294    -   -
   3/31/2023  8900 Freeport Pkwy.  Irving  TX    Nissan Motor Acceptance Corporation (Nissan North America, Inc.)   225,049    3,425    3,713    -   -
   6/30/2023  420 Riverport Rd.  Kingsport  TN    Kingsport Power Company   42,770    128    310    -   -
   8/31/2023  400 Butler Farm Rd.  Hampton  VA  7  Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) / Wisconsin Physicians Service Insurance Corp.   100,632    1,006    1,037    -   -
   12/14/2023  3333 Coyote Hill Rd.  Palo Alto  CA    Xerox Corporation   202,000    6,642    7,070    37,846   12/2023

 

 30 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
($000) (2)
   12/31/2017
Debt Balance
($000)
   Debt Maturity
OFFICE PROPERTIES                                
2024  2/14/2024  1362 Celebration Blvd.  Florence  SC    MED3000, Inc.   32,000    573    565    -   -
   5/31/2024  3476 Stateview Blvd.  Fort Mill  SC    Wells Fargo Bank, N.A.   169,083    1,950    1,877    -   -
      3480 Stateview Blvd.  Fort Mill  SC    Wells Fargo Bank, N.A.   169,218    2,026    1,878    -   -
   8/31/2024  10475 Crosspoint Blvd.  Indianapolis  IN    RGN-Indianapolis I, LLC (HQ Global Workplaces LLC)   14,236    302    302    -   -
   10/31/2024  1409 Centerpoint Blvd.  Knoxville  TN    Alstom Power, Inc.   84,404    1,255    1,199    -   -
   11/30/2024  6200 Northwest Pkwy.  San Antonio  TX    United HealthCare Services, Inc.   142,500    1,957    1,877    -   -
   12/31/2024  12000 & 12025 Tech Center Dr.  Livonia  MI  19  Kelsey-Hayes Company (ZF Friedrichshafen AG)   180,230    1,691    1,638    -   -
2025  1/31/2025  1401 Nolan Ryan Expy.  Arlington  TX    Triumph Aerostructures, LLC (Triumph Group, Inc.)   111,409    1,637    1,742    -   -
   2/28/2025  6555 Sierra Dr.  Irving  TX    TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC)   247,254    2,804    3,076    -   -
      1401 Nolan Ryan Expy.  Arlington  TX    Cyient, Inc. (Infotech Enterprise Limited)   13,590    203    210    -   -
   3/14/2025  601 & 701 Experian Pkwy.  Allen  TX    Experian Information Solutions, Inc. / TRW, Inc.(Experian Holdings, Inc.)   292,700    2,966    3,073    -   -
   5/31/2025  1701 Market St.  Philadelphia  PA    TruMark Financial Credit Union   2,641    247    247    -   -
   6/30/2025  2500 Patrick Henry Pkwy.  McDonough  GA    Georgia Power Company   111,911    1,422    1,358    -   -
   9/30/2025  10001 Richmond Ave.  Houston  TX    Schlumberger Holdings Corp.   554,385    6,038    5,465    -   -
   11/30/2025  11707 Miracle Hills Dr.  Omaha  NE    Wipro Data Center and Cloud Services, Inc. (Infocrossing, Inc.)   85,200    1,167    1,166    -   -
   12/31/2025  4001 International Pkwy.  Carrollton  TX    Motel 6 Operating, LP   138,443    2,226    2,194    -   -
2026  3/31/2026  500 Olde Worthington Rd.  Westerville  OH    InVentiv Communications, Inc.   97,000    1,109    1,147    -   -
   4/30/2026  800 East Canal St.  Richmond  VA    Richmond Belly Ventures, LLC (David Duke, Lauren Duke, Terrence Kee, Cara Kee and John Bokel)   2,568    77    77    -   -
   11/30/2026  500 Kinetic Dr.  Huntington  WV    AMZN WVCS LLC (Amazon.com, Inc.)   68,693    1,268    1,113    -   -
   12/29/2026  5500 New Albany Rd.  Columbus  OH    Evans, Mechwart, Hambleton & Tilton, Inc.   104,807    1,737    1,678    -   -
2027  1/31/2027  1701 Market St.  Philadelphia  PA    Drybar Holdings LLC   1,975    138    103    -   -
   2/28/2027  800 East Canal St.  Richmond  VA    Pacific Summit Energy LLC (Sumitomo Corporation of Americas)   8,503    93    93    -   -
   4/30/2027  1315 West Century Dr.  Louisville  CO    Global Healthcare Exchange, Inc. (GHX Ultimate Parent Corporation)   86,877    1,289    1,221    -   -
   6/30/2027  3902 Gene Field Rd.  St. Joseph  MO    Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation)   98,849    1,993    1,880    -   -
   7/6/2027  2221 Schrock Rd.  Columbus  OH    MS Consultants, Inc.   42,290    640    612    -   -
   8/7/2027  25 Lakeview Dr.  Jessup  PA    TMG Health, Inc.   150,000    2,501    2,084    -   -
   10/31/2027  11201 Renner Blvd.  Lenexa  KS    United States of America   169,585    4,883    4,424    33,212   11/2027
   11/30/2027  1700 Millrace Dr.  Eugene  OR  10  Oregon Research Institute / Educational Policy Improvement Center   80,011    2,093    1,784    -   -
2028  4/30/2028  9655 Maroon Cir.  Englewood  CO    TriZetto Corporation   166,912    3,844    3,655    -   -
2029  1/31/2029  6226 West Sahara Ave.  Las Vegas  NV    Nevada Power Company   282,000    4,253    3,089    -   -
   3/31/2029  2800 High Meadow Cir.  Auburn Hills  MI    Faurecia USA Holdings, Inc.   278,000    3,547    3,220    -   -
   12/31/2029  333 Mt. Hope Ave.  Rockaway  NJ    Atlantic Health System, Inc.   92,326    1,219    1,316    -   -
2030  8/31/2030  800 East Canal St.  Richmond  VA    McGuireWoods LLP   224,537    7,184    6,702    57,500   02/2031
   9/30/2030  800 East Canal St.  Richmond  VA    CCA Industries, Inc. (The Riverstone Group, LLC),   25,707    693    657    -   -
2031  1/10/2031  810 Gears Rd.  Houston  TX    United States of America   68,985    1,499    1,425    -   -
   3/1/2031  800 East Canal St.  Richmond  VA    Towne Bank   26,047    755    655    -   -
2032  4/30/2032  1210 AvidXchange Ln.  Charlotte  NC    AvidXchange, Inc.   201,450    4,017    3,484    45,400   12/2022 & 01/2033
   10/31/2032  143 Diamond Ave.  Parachute  CO    Encana Oil and Gas (USA) Inc. / Caerus Piceance LLC (Alenco Inc.)   49,024    1,284    1,094    -   -
   12/31/2032  3030 North 3rd St.  Phoenix  AZ    CopperPoint Mutual Insurance Company   252,400    5,056    4,261    -   -
2033  3/31/2033  9201 East Dry Creek Rd.  Centennial  CO    Arrow Electronics, Inc.   128,500    2,451    2,144    -   -
   11/30/2033  1331 Capitol Ave.  Omaha  NE    The Gavilon Group, LLC   127,810    3,311    2,945    -   -
2036  10/31/2036  270 Abner Jackson Pkwy.  Lake Jackson  TX    The Dow Chemical Company   664,100    14,619    12,170    192,451   10/2036
2088  8/8/2088  800 East Canal St.  Richmond  VA    The City of Richmond, Virginia   -    411    411    -   -
N/A  N/A  1701 Market St.  Philadelphia  PA    Parking Operations   -    2,596    2,596    -   -

 

 31 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
($000) (2)
   12/31/2017
Debt Balance
($000)
   Debt Maturity
OFFICE PROPERTIES                                   
N/A  Vacancy  800 East Canal St.  Richmond  VA  5, 11  (Available for Lease)   42,947    204    204    -   -
      1701 Market St.  Philadelphia  PA    (Available for Lease)   699    -    -    -   -
      810 Gears Rd.  Houston  TX    (Available for Lease)   9,910    -    -    -   -
      1401 Nolan Ryan Expy.  Arlington  TX    (Available for Lease)   36,809    -    -    -   -
OFFICE TOTAL/WEIGHTED AVERAGE           99.2% Leased   10,881,264   $179,939   $174,869   $495,842    

 

 32 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq. Ft.
Leased or
Available (1)
   GAAP
Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
 ($000) (2)
   12/31/2017
Debt Balance
($000)
   Debt Maturity
INDUSTRIAL PROPERTIES                                         
2018  9/30/2018  50 Tyger River Dr.  Duncan  SC    Plastic Omnium Auto Exteriors, LLC   221,833    1,025    1,025    -   -
   12/31/2018  1133 Poplar Creek Rd.  Henderson  NC    Staples, Inc.   196,946    865    886    -   -
      2935 Van Vactor Dr.  Plymouth  IN    Bay Valley Foods, LLC   300,500    841    841    -   -
      749 Southrock Dr.  Rockford  IL    Jacobson Warehouse Company, Inc. (Jacobson Distribution Company and Jacobson Transportation Company, Inc.)   150,000    471    533    -   -
2019  10/17/2019  10345 Philipp Pkwy.  Streetsboro  OH    L'Oreal USA S/D, Inc. (L’Oreal USA, Inc.)   649,250    2,611    2,817    16,931   09/2019
   12/31/2019  191 Arrowhead Dr.  Hebron  OH    Owens Corning Insulating Systems, LLC   250,410    564    564    -   -
      200 Arrowhead Dr.  Hebron  OH    Owens Corning Insulating Systems, LLC   400,522    903    903    -   -
      2415 US Hwy. 78 East  Moody  AL    Michelin North America, Inc.   595,346    1,408    1,422    -   -
      3686 South Central Ave.  Rockford  IL    Pierce Packaging Co.   93,000    312    312    -   -
2020  1/31/2020  101 Michelin Dr.  Laurens  SC    Michelin North America, Inc.   1,164,000    3,438    3,438    -   -
   5/31/2020  359 Gateway Dr.  Lavonia  GA    TI Group Automotive Systems, LLC (TI Automotive Ltd.)   133,221    952    1,200    7,010   12/2020
   6/30/2020  1650-1654 Williams Rd.  Columbus  OH    ODW Logistics, Inc. (Nessent Ltd. And Dist-Trans Co, LLC)   772,450    1,342    1,347    -   -
      3102 Queen Palm Dr.  Tampa  FL    Time Mailing Services LLC (Time Inc.)   229,605    1,234    1,325    -   -
   9/30/2020  3350 Miac Cove Rd.  Memphis  TN    Mimeo.com, Inc.   107,400    414    443    -   -
   12/19/2020  1901 Ragu Dr.  Owensboro  KY  6  Unilever Supply Chain, Inc. (Unilever United States, Inc.)   443,380    1,493    1,288    -   -
   12/31/2020  2203 Sherrill Dr.  Statesville  NC    Geodis Logistics LLC (Geodis America, Inc.)   639,800    2,050    1,683    -   -
2021  3/31/2021  2455 Premier Row  Orlando  FL    Walgreen Co. / Walgreen Eastern Co.   205,016    786    508    -   -
   5/31/2021  291 Park Center Dr.  Winchester  VA    Kraft Heinz Foods Company   344,700    1,422    1,382    -   -
   9/30/2021  3820 Micro Dr.  Millington  TN    Ingram Micro L.P. (Ingram Micro Inc.)   701,819    1,812    1,874    -   -
   10/25/2021  6938 Elm Valley Dr.  Kalamazoo  MI    Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited)   150,945    1,747    2,027    -   -
   11/30/2021  2880 Kenny Biggs Rd.  Lumberton  NC    Quickie Manufacturing Corporation   423,280    1,359    1,419    -   -
2022  3/31/2022  5417 Campus Dr.  Shreveport  LA    The Tire Rack, Inc.   257,849    1,342    1,371    -   -
2023  2/28/2023  7670 Hacks Cross Rd.  Olive Branch  MS    MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated)   268,104    906    880    -   -
   12/31/2023  120 Southeast Pkwy. Dr.  Franklin  TN    Essex Group, Inc. (United Technologies Corporation)   289,330    736    736    -   -
      1601 Pratt Ave.  Marshall  MI    Autocam Corporation (NN Inc.)   58,707    310    310    -   -
2024  1/31/2024  1285 W. State Road 32  Lebanon  IN    Continental Tire the Americas, LLC   741,880    1,996    1,039    -   -
   3/31/2024  1520 Lauderdale Memorial Hwy.  Cleveland  TN    General Electric Company   851,370    1,636    1,649    -   -
   4/30/2024  113 Wells St.  North Berwick  ME    United Technologies Corporation   993,685    1,798    1,962    1,992   04/2019
   5/31/2024  901 East Bingen Point Way  Bingen  WA    The Boeing Company   124,539    2,636    2,576    -   -
   9/30/2024  1621 Veterans Memorial Pkwy. E  Lafayette  IN    Caterpillar Inc.   309,400    291    288    -   -
   10/31/2024  43955 Plymouth Oaks Blvd.  Plymouth  MI    Tower Automotive Operations USA I, LLC  / Tower Automotive Products Inc. (Tower Automotive, Inc.)   311,612    1,531    1,459    -   -
2025  6/30/2025  10000 Business Blvd.  Dry Ridge  KY    Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited)   336,350    1,346    1,346    -   -
      301 Bill Bryan Rd.  Hopkinsville  KY    Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)   424,904    1,687    1,687    -   -
      4010 Airpark Dr.  Owensboro  KY    Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)   211,598    1,208    1,208    -   -
      730 North Black Branch Rd.  Elizabethtown  KY    Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)   167,770    537    537    -   -
      750 North Black Branch Rd.  Elizabethtown  KY    Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)   539,592    2,838    2,838    -   -
   7/14/2025  590 Ecology Ln.  Chester  SC    Boral Stone Products LLC (Boral Limited)   420,597    1,721    2,314    7,271   08/2025
   7/31/2025  7005 Cochran Rd.  Glenwillow  OH    Royal Appliance Mfg. Co.   458,000    2,061    2,101    -   -
   12/31/2025  1700 47th Ave North  Minneapolis  MN    Owens Corning Roofing and Asphalt, LLC   18,620    550    550    -   -
2026  3/30/2026  121 Technology Dr.  Durham  NH  15  Heidelberg Americas, Inc. (Heidelberger Druckmaschinen AG) / Goss International Americas, Inc. (Goss International Corporation)   500,500    2,537    2,479    -   -
   3/31/2026  633 Garrett Pkwy.  Lewisburg  TN    Calsonic Kansei North America, Inc.   310,000    1,293    1,200    -   -
   6/30/2026  351 Chamber Dr.  Chillicothe  OH    The Kitchen Collection, LLC   475,218    1,159    1,118    -   -
   9/30/2026  900 Industrial Blvd.  Crossville  TN    Dana Commercial Vehicle Products, LLC   222,200    578    578    -   -
      3931 Lakeview Corporate Dr.  Edwardsville  IL    AMAZON.COM.DEDC, LLC (Amazon.com, Inc.)   769,500    2,687    2,512    -   -
   10/31/2026  5001 Greenwood Rd.  Shreveport  LA    Libbey Glass Inc. (Libbey Inc.)   646,000    2,165    2,170    -   -
   11/30/2026  250 Rittenhouse Cir.  Bristol  PA    Northtec LLC (The Estée Lauder Companies Inc.)   241,977    1,146    1,136    -   -
      736 Addison Rd.  Erwin  NY    Corning Property Management Corporation   408,000    1,345    1,352    6,991   10/2018

 

 33 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq. Ft.
Leased or
Available (1)
   GAAP
Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
($000) (2)
   12/31/2017
Debt Balance
($000)
   Debt Maturity
INDUSTRIAL PROPERTIES                                   
2027  1/31/2027  27200 West 157th St.  New Century  KS    Amazon.com.ksdc, LLC (Amazon.com, Inc.)   446,500    1,053    893    -   -
   2/28/2027  3456 Meyers Ave.  Memphis  TN    Sears, Roebuck and Co. / Sears Logistics Services   780,000    1,676    1,592    -   -
      554 Nissan Pkwy.  Canton  MS    Nissan North America, Inc.   1,466,000    6,200    5,860    -   -
   4/30/2027  16407 Applewhite Rd.  San Antonio  TX  18  International Heating, Air-Conditioning and Refrigeration Solutions Company   849,275    1,514    1,380    -   -
      200 Sam Griffin Rd.  Smyrna  TN    Nissan North America, Inc.   1,505,000    1,713    1,619    -   -
   6/30/2027  1501 Nolan Ryan Expy.  Arlington  TX    Arrow Electronics, Inc.   74,739    406    215    -   -
   9/30/2027  1550 Hwy 302  Byhalia  MS    McCormick & Company, Inc.   615,600    625    430    -   -
   10/31/2027  201 James Lawrence Rd.  Jackson  TN    Kellogg Sales Company (Kellogg Company)   1,062,055    1,030    958    -   -
   12/31/2027  10590 Hamilton Ave.  Cincinnati  OH    The Hillman Group, Inc.   264,598    813    781    -   -
2028  1/31/2028  490 Westridge Pkwy.  McDonough  GA  17  Georgia-Pacific Consumer Products LP (Georgia-Pacific LLC)   1,121,120    1,556    1,133    -   -
   3/31/2028  29-01-Borden Ave./29-10 Hunters Point Ave.  Long Island City  NY    FedEx Ground Package System, Inc. (FedEx Corporation)   140,330    5,135    4,770    43,334   03/2028
   8/31/2028  1420 Greenwood Rd.  McDonough  GA    United States Cold Storage, Inc.   296,972    2,170    2,117    -   -
   9/30/2028  904 Industrial Rd.  Marshall  MI    Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.)   246,508    675    841    -   -
2029  11/24/2029  318 Pappy Dunn Blvd.  Anniston  AL    International Automotive Components Group North America, Inc.   276,782    1,739    1,622    -   -
2030  3/31/2030  549 Wingo Rd.  Byhalia  MS    Asics America Corporation (Asics Corporation)   855,878    4,388    4,014    -   -
   5/31/2030  3301 Stagecoach Rd. NE  Thomson  GA    Hollander Sleep Products, LLC  (Hollander Home Fashions Holdings)   208,000    929    856    -   -
2031  10/31/2031  1020 W. Airport Rd.  Romeoville  IL    ARYZTA LLC (ARYZTA AG)   188,166    3,552    3,313    -   -
   12/18/2031  80 Tyson Dr.  Winchester  VA  16  Undisclosed   400,400    70    61    -   -
2032  4/30/2032  13930 Pike Rd.  Missouri City  TX    Vulcan Construction Materials, LP (Vulcan Materials Company)   -    2,123    1,917    -   -
   8/24/2032  16950 Pine Dr.  Romulus  MI  16  Undisclosed   500,023    378    352    -   -
   10/31/2032  27255 SW 95th Ave.  Wilsonville  OR    Pacific Foods of Oregon, Inc. d/b/a Pacific Natural Foods   508,277    3,120    2,578    -   -
      26700 Bunert Road  Warren  MI    Lipari Foods Operating Company, LLC   260,243    572    505    -   -
2034  9/30/2034  5625 North Sloan Ln.  North Las Vegas  NV    Nicholas and Co., Inc.   180,235    2,557    2,238    -   -
   10/31/2034  1001 Innovation Rd.  Rantoul  IL    Bell Sports, Inc. (Vista Outdoor Inc.)   813,126    4,195    3,628    -   -
2035  3/31/2035  13863 Industrial Rd.  Houston  TX    Curtis Kelly, Inc. (Spitzer Industries, Inc.)   187,800    2,434    2,075    -   -
      7007 F.M. 362 Rd.  Brookshire  TX    Orizon Industries, Inc. (Spitzer Industries, Inc.)   262,095    1,910    1,628    -   -
   6/30/2035  111 West Oakview Pkwy.  Oak Creek  WI    Stella & Chewy's LLC   164,007    2,098    1,865    -   -
   8/31/2035  2800 Polar Way  Richland  WA  9  Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)   456,412    13,133    11,081    110,000   01/2026
   10/22/2035  2860 Clark St.  Detroit  MI  16  Undisclosed   189,960    2,203    2,204    -   -
2036  5/31/2036  671 Washburn Switch Rd.  Shelby  NC    Clearwater Paper Corporation   673,425    2,734    2,390    -   -
   6/30/2036  100 Ryobi Drive  Anderson  SC    One World Technologies, Inc. (Techtronic Industries Co. Ltd.)   1,327,022    4,446    3,697    -   -
2037  3/31/2037  4005 E I-30  Grand Prairie  TX    O'Neal Metals (Texas), L.P. (O'Neal Industries, Inc.)   215,000    988    812    -   -
2038  3/31/2038  13901/14035 Industrial Rd.  Houston  TX    Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC)   132,449    6,773    5,694    -   -
2042  5/31/2042  4801 North Park Dr.  Opelika  AL    Golden State Foods Corp. (Golden State Enterprises, Inc.)   165,493    1,443    1,739    -   -
N/A  Vacancy  3350 Miac Cove Rd.  Memphis  TN    (Available for Lease)   32,679    -    -    -   -
INDUSTRIAL TOTAL/WEIGHTED AVERAGE        99.9% Leased   35,396,894   $151,440   $141,491   $193,529    

 

 34 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
($000) (2)
   12/31/2017
Debt Balance
($000)
   Debt Maturity
OTHER PROPERTIES                                   
Retail                                         
2018  2/26/2018  4831 Whipple Ave., NW  Canton  OH  13  Best Buy Co., Inc.   46,350    465    465    -   -
   9/30/2018  835 Julian Ave.  Thomasville  NC    Mighty Dollar, LLC   23,767    82    82    -   -
   12/31/2018  1150 West Carl Sandburg Dr.  Galesburg  IL    Kmart Stores of Illinois LLC / Kmart Corporation   94,970    318    225    105   07/2018
      12080 Carmel Mountain Rd.  San Diego  CA    Sears, Roebuck and Co / Kmart Corporation   107,210    751    256    119   07/2018
      21082 Pioneer Plaza Dr.  Watertown  NY    Kmart Corporation   120,727    482    378    176   07/2018
      255 Northgate Dr.  Manteca  CA    Kmart Corporation   107,489    555    402    187   07/2018
      97 Seneca Trail  Fairlea  WV    Kmart Corporation   90,933    347    265    123   07/2018
2019  3/31/2019  B.E.C. 45th St./Lee Blvd.  Lawton  OK    Associated Wholesale Grocers, Inc. / Safeway, Inc.   30,757    189    185    -   -
   6/30/2019  1600 East 23rd St.  Chattanooga  TN    BI-LO, LLC / K-VA-T Food Stores, Inc.   42,130    130    130    -   -
2023  2/28/2023  733 East Main St.  Jefferson  NC    Food Lion, LLC / Delhaize America, Inc.   34,555    156    160    -   -
   7/1/2023  1053 Mineral Springs Rd.  Paris  TN    The Kroger Co.   31,170    173    159    -   -
Specialty                                    -   -
2029  1/31/2029  175 Holt Garrison Pkwy.  Danville  VA    Home Depot USA, Inc.   -    216    260    -   -
2043  2/28/2043  1237 W. Sherman Ave.  Vineland  NJ    HealthSouth Rehabilitation Hospital of South Jersey, LLC (HealthSouth Corporation)   39,287    1,150    1,150    -   -
2048  12/31/2048  30 Light St.  Baltimore  MD    30 Charm City, LLC   -    299    299    -   -
2055  1/31/2055  499 Derbyshire Dr.  Venice  FL    Littlestone Brotherhood LLC (Ralph Little)   31,180    1,908    1,313    -   -
2112  8/31/2112  201-215 N. Charles St.  Baltimore  MD    201 NC Leasehold LLC   -    270    270    -   -
Multi-tenant (4)(8)(14)                                    -   -
   Various  11511 Luna Rd.  Farmers Branch  TX  4 (97%)  International Business Machines Corporation   181,072    1,104    1,059    -   -
   Various  1311 Broadfield Blvd.  Houston  TX  4 (35%), 11  Saipem America, Inc. (Saipem S.p.A.)   155,407    810    485    -   -
   Various  13430 North Black Canyon Fwy.  Phoenix  AZ  4 (92%)  Multi-Tenant   138,940    2,328    2,493    -   -
   Various  1460 Tobias Gadson Blvd.  Charleston  SC  4 (41%)  Vallen Distribution, Inc.   50,076    384    384    6,987   02/2021
   Various  2210 Enterprise Dr.  Florence  SC  4 (21%)  Caliber Funding, LLC   176,557    691    761    -   -
   Various  5104 North Franklin Rd.  Lawrence  IN  4 (0%)  Available for lease   35,786    -    -    -   -
   Various  6050 Dana Way  Antioch  TN  4 (97%)  Multi-Tenant   674,528    2,300    2,255    -   -
   Various  832 N. Westover Blvd .  Albany  GA  4 (0%), 11  Available for lease   45,554    200    403    -   -
   Various  King St./1042 Fort St. Mall  Honolulu  HI  4 (48%)  Multi-Tenant   77,459    696    696    -   -
OTHER TOTAL/WEIGHTED AVERAGE           81.8% Leased   2,335,904   $16,004   $14,535   $7,697    
                                          
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE           98.9% Leased   48,614,062   $347,383   $330,895   $697,068    

 

Footnotes

1Square footage leased or available.
2Twelve months ended 12/31/2017 cash rent. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
3Twelve months ended 12/31/2017 GAAP rent, excluding termination income.
4Percent represents % leased as of 12/31/2017.
5Part of Richmond, Virginia property, which is primarily leased to McGuireWoods LLP.
6Lexington has a 71.1% interest in this property.
7Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) lease for 100,632 square feet expires 12/31/2019; however, 71,073 square feet is then leased to Wisconsin Physicians Service Insurance Corp. through 8/31/2023.
8Multi-tenant properties are properties less than 50% leased to a single tenant.
9ConAgra Foods, Inc. provides credit support.
10Educational Policy Improvement Center lease for 10,791 square feet expires 11/2019; however, space is then leased to Oregon Research Institute through 11/2027.
11Cash and GAAP rent amounts represent/include prior tenant.
1221,365 square feet is leased to 7/31/2025.
13Property classified as held for sale at 12/31/2017.
14The multi-tenanted properties incurred approximately $3.9 million in operating expenses, net for the twelve months ended 12/31/2017.
15Heidelberg Americas, Inc. lease expires 3/30/2021; however, new tenant (Goss International Americas, Inc.) lease expires 3/30/2026.
16Tenant is a domestic subsidiary of an international automaker.
17Square footage includes a 220,480 square foot expansion expected to be completed in 2018.
18Lease restricts certain disclosures. Guarantor is investment grade.
19Property sold subsequent to 12/31/2017.

 

 35 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Non-consolidated Portfolio - 12/31/2017

 

Year of Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant (Guarantor)  Sq.Ft.   LXP %
Ownership
   GAAP
 Rent
as of
12/31/2017
($000) (3)
   Cash
Rent
as of
12/31/2017
($000) (2)
   12/31/2017
Debt Balance
 ($000)
   Debt Maturity (4)
NON-CONSOLIDATED PROPERTIES                                        
2029  1/31/2029  18839 McKay Blvd.  Humble  TX    Triumph Rehabilitation Hospital of Northeast Houston, LLC (RehabCare Group, Inc.)   55,646    15%   2,733    2,507    13,855   05/2019
2033  10/31/2033  607 & 611 Lumsden Professional Ct.  Brandon  FL  1  BluePearl Holdings, LLC   8,500    15%   201    201    -   -
      4525 Ulmerton Rd.  Clearwater  FL  1  BluePearl Holdings, LLC   3,000    15%   120    120    -   -
      455 Abernathy Rd.  Atlanta  GA  1  BluePearl Holdings, LLC   32,000    15%   1,209