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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): May 8, 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 May 8, 2018, we issued a press release announcing our financial results for the quarter ended March 31, 2018. 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 May 8, 2018, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, First Quarter 2018,” a copy of which is furnished herewith as Exhibit 99.1.

 

Also on May 8, 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, First Quarter 2018.
   
99.2 May 8, 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: May 9, 2018 By: /s/ Patrick Carroll
    Patrick Carroll
    Chief Financial Officer

 

   

 

 

Exhibit Index

 

99.1 Quarterly Supplemental Information, First Quarter 2018.
   
99.2 May 8, 2018 Conference Call Transcript.

 

   

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

Exhibit 99.1

 

 

 

   

 

 

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

March 31, 2018

 

Table of Contents

 

Section   Page
     
First Quarter 2018 Earnings Press Release   3
     
Portfolio Data    
Capital Recycling Summary   14
Leasing Summary   15
Other Revenue Data   17
Portfolio Detail by Asset Class   19
Portfolio Composition   20
Components of Net Asset Value   21
Top Markets   22
Single-Tenant Office Markets   23
Tenant Industry Diversification   24
Top 10 Tenants or Guarantors   25
Lease Rollover Schedules – GAAP Basis   26
Property Leases and Vacancies   28
Select Credit Metrics Summary   36
Financial Covenants   37
Mortgages and Notes Payable   38
Debt Maturity Schedule   40
Selected Balance Sheet Account Data   41
Non-GAAP Measures – Definitions   42
Reconciliation of Non-GAAP Measures   44
Investor Information   48

 

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 FIRST QUARTER 2018 RESULTS

 

New York, NY - May 8, 2018 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the first quarter ended March 31, 2018.

 

First Quarter 2018 Highlights

 

Generated Net Loss attributable to common shareholders of $(16.0) million, or $(0.07) per diluted common share.
Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $62.0 million, or $0.25 per diluted common share.
Disposed of six properties for an aggregate of $62.7 million.
Repurchased and retired 795,775 common shares at an average price of $7.94 per share.
Repaid $60.0 million, net, on the revolving credit facility.
Completed 209,000 square feet of new leases and lease extensions with portfolio 97.2% leased at quarter end.

 

Subsequent Events

 

Acquired two industrial properties for an aggregate cost of $92.5 million.

 

Adjusted Company FFO is a non-GAAP financial measure. It and certain other non-GAAP financial measures are defined and reconciled later in this press release.

 

T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented, “In our continued effort to further reduce our suburban office exposure, we disposed of an aggregate of $62.7 million of primarily office assets during the first quarter.  Furthermore, we continue to explore ways to maximize value in our office portfolio and focus our investment strategy on single-tenant industrial assets.”

 

 3 

 

 

FINANCIAL RESULTS

 

Revenues

 

For the quarter ended March 31, 2018, total gross revenues were $102.6 million, compared with total gross revenues of $96.1 million for the quarter ended March 31, 2017. The increase was primarily attributable to revenue generated from 2017 property acquisitions and new leases, partially offset by property sales and lease expirations.

 

Net Income (Loss) Attributable to Common Shareholders

 

For the quarter ended March 31, 2018, net loss attributable to common shareholders was $(16.0) million, or $(0.07) per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2017 of $40.4 million, or $0.17 per diluted share. The change between periods relates primarily to the timing of gains on sales and impairments recognized on real estate.

 

Adjusted Company FFO

 

For the quarter ended March 31, 2018, Lexington generated Adjusted Company FFO of $62.0 million, or $0.25 per diluted share, compared to Adjusted Company FFO for the quarter ended March 31, 2017 of $57.8 million, or $0.23 per diluted share. The increase was primarily attributable to the items discussed above under “Revenues”.

 

Dividends/Distributions

 

As previously announced, during the first quarter of 2018, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March 31, 2018 of $0.1775 per common share/unit, which was paid on April 16, 2018 to common shareholders/unitholders of record as of March 29, 2018. Lexington also declared dividends of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for each of the quarters ended March 31, 2018 and June 30, 2018, which are expected to be paid on May 15, 2018 and August 15, 2018, respectively, to Series C Preferred Shareholders of record as of April 30, 2018 and July 31, 2018, respectively.

 

TRANSACTION ACTIVITY

 

PROPERTY DISPOSITIONS

 

Primary Tenant  Location  Property Type 

Gross

Disposition

Price

($000)

  

Annualized

Net Income(1)

($000)

  

Annualized

NOI(1)

($000)

  

Month of

Disposition

 

%

Leased

 
Kelsey-Hayes Company(2)  Livonia, MI  Office  $21,000   $1,144   $1,637   February   100%
Vacant  Canton, OH  Other   2,975    463    465   February   0%
Evans, Mechwart, Hambleton & Tillon, Inc.  Columbus, OH  Office   20,000    1,185    1,678   March   100%
Wipro Data Center and Cloud Services, Inc.  Omaha, NE  Office   16,400    765    1,167   March   100%
Autocam Corporation  Marshall, MI  Industrial   2,300    145    310   March   100%
         $62,675   $3,702   $5,257         

 

(1)Quarterly period prior to sale annualized. Net income excludes impairment charges, if any.
(2)Two properties.

 

These dispositions resulted in aggregate gains on sales of $22.8 million.

 

 4 

 

 

LEASING

 

During the first quarter of 2018, Lexington executed the following new and extended leases:

 

   LEASE EXTENSIONS       
                    
   Location  Primary Tenant(1) 

Prior

Term

 

Lease

Expiration Date

  Sq. Ft. 
   Industrial                 
1  Rockford  IL  Pierce Packaging Co.  12/2019  12/2021   93,000 
1  Total industrial lease extensions               93,000 
                     
   Office/Multi-Tenant                 
1-6  Philadelphia/Honolulu  PA/HI  N/A  2018  2018-2023   10,633 
6  Total office lease extensions               10,633 
                     
   Other                 
1  Lawton  OK  Associated Wholesale Grocers, Inc./Safeway, Inc.  03/2019  03/2024   30,757 
1  Total other lease extensions               30,757 
                     
8  Total lease extensions               134,390 

 

   NEW LEASES                
                    
   Location        Lease Expiration Date  Sq. Ft. 
   Office/Multi-Tenant             
1  McDonough  GA  Total System Services, Inc.    08/2021   62,218 
2  Honolulu  HI  N/A     01/2019   304 
3  Charleston  SC  South Carolina Department of Mental Health     07/2023   11,736 
3  Total new office leases               74,258 
                     
3  Total new leases               74,258 
                     
11  TOTAL NEW AND EXTENDED LEASES               208,648 

 

(1)Leases greater than 10,000 square feet.

 

As of March 31, 2018, Lexington's portfolio was 97.2% leased.

 

BALANCE SHEET/CAPITAL MARKETS

 

In the first quarter of 2018, Lexington repurchased and retired 795,775 common shares at an average price of $7.94 per share under its repurchase authorization announced on July 2, 2015 in the amount of 10.0 million common shares. As of March 31, 2018, there were approximately 5.8 million common shares remaining to be repurchased under the authorization.

 

 5 

 

 

2018 EARNINGS GUIDANCE

 

Lexington now estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2018 will be within an expected range of $0.54 to $0.57. Lexington is reaffirming that its Adjusted Company FFO for the year ended December 31, 2018 is expected to be within a range of $0.95 to $0.98 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

 

FIRST QUARTER 2018 CONFERENCE CALL

 

Lexington will host a conference call today, May 8, 2018, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2018. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through August 8, 2018, at 1-877-344-7529 (U.S.), 1-412-317-0088 (International) or 1-855-669-9658 (Canada), pin code for all replay numbers is 10119663. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

 

 6 

 

 

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 real estate investment trust, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

 

References to Lexington refer to Lexington Realty Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

 

 7 

 

 

Non-GAAP Financial Measures - Definitions

 

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures.

 

Lexington believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles (“GAAP”), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating Lexington's financial performance or cash flow from operating, investing or financing activities or liquidity.

 

Cash Rent: Cash Rent is calculated by making adjustments to GAAP rent to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents relating to free rent periods and contractual rent increases. Cash Rent excludes lease termination income. Lexington believes Cash Rent provides a meaningful indication of an investment's ability to fund cash needs.

 

Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash interest, net, (6) non-cash charges, net, (7) cash paid for tenant improvements, and (8) cash paid for lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), Lexington believes it provides a meaningful indication of its ability to fund cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

 

Funds from Operations (“FFO”) and Adjusted Company FFO: Lexington believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

 

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (or loss) computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for non-consolidated partnerships and joint ventures.” NAREIT clarified its computation of FFO to exclude impairment charges on depreciable real estate owned directly or indirectly. FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

 

Lexington presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into Lexington’s common shares, are converted at the beginning of the period. Lexington also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of Lexington's real estate portfolio. Lexington believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

 

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate (or has generated) divided by the acquisition/completion cost (or sale) price.

 

Net Operating Income (“NOI”): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), tenant reimbursements and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Lexington believes that net income is the most directly comparable GAAP measure to NOI.

 

# # #

 

 8 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

   Three months ended March 31, 
   2018   2017 
Gross revenues:          
Rental  $94,522   $88,654 
Tenant reimbursements   8,115    7,445 
Total gross revenues   102,637    96,099 
Expense applicable to revenues:          
Depreciation and amortization   (46,537)   (42,891)
Property operating   (11,477)   (12,116)
General and administrative   (8,996)   (9,457)
Non-operating income   546    2,621 
Interest and amortization expense   (20,331)   (19,725)
Impairment charges and loan loss   (53,049)   (7,992)
Gains on sales of properties   22,774    34,193 
Income (loss) before provision for income taxes and equity in earnings of non-consolidated entities   (14,433)   40,732 
Provision for income taxes   (503)   (422)
Equity in earnings of non-consolidated entities   113    1,910 
Net income (loss)   (14,823)   42,220 
Less net (income) loss attributable to noncontrolling interests   508    (180)
Net income (loss) attributable to Lexington Realty Trust shareholders   (14,315)   42,040 
Dividends attributable to preferred shares – Series C   (1,572)   (1,572)
Allocation to participating securities   (70)   (71)
Net income (loss) attributable to common shareholders  $(15,957)  $40,397 
           
Net income (loss) attributable to common shareholders - per common share basic  $(0.07)  $0.17 
Weighted-average common shares outstanding – basic   238,072,081    237,179,526 
           
Net income (loss) attributable to common shareholders - per common share diluted  $(0.07)  $0.17 
Weighted-average common shares outstanding – diluted   238,072,081    241,088,049 

 

 9 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   March 31, 2018   December 31, 2017 
Assets:          
Real estate, at cost  $3,792,977   $3,936,459 
Real estate - intangible assets   564,947    599,091 
    4,357,924    4,535,550 
Less: accumulated depreciation and amortization   1,179,078    1,225,650 
Real estate, net   3,178,846    3,309,900 
Assets held for sale       2,827 
Cash and cash equivalents   90,214    107,762 
Restricted cash   7,479    4,394 
Investment in and advances to non-consolidated entities   17,485    17,476 
Deferred expenses, net   30,098    31,693 
Rent receivable – current   5,878    5,450 
Rent receivable – deferred   56,038    52,769 
Other assets   25,958    20,749 
Total assets  $3,411,996   $3,553,020 
           
Liabilities and Equity:          
Liabilities:          
Mortgages and notes payable, net  $682,994   $689,810 
Revolving credit facility borrowings   100,000    160,000 
Term loans payable, net   596,957    596,663 
Senior notes payable, net   495,407    495,198 
Trust preferred securities, net   127,221    127,196 
Dividends payable   48,438    49,504 
Accounts payable and other liabilities   27,284    38,644 
Accrued interest payable   11,051    5,378 
Deferred revenue - including below market leases, net   32,130    33,182 
Prepaid rent   16,130    16,610 
Total liabilities   2,137,612    2,212,185 
           
Commitments and contingencies          
Equity:          
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:          
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding   94,016    94,016 
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 239,972,103 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively   24    24 
Additional paid-in-capital   2,811,213    2,818,520 
Accumulated distributions in excess of net income   (1,647,804)   (1,589,724)
Accumulated other comprehensive income   1,311    1,065 
Total shareholders’ equity   1,258,760    1,323,901 
Noncontrolling interests   15,624    16,934 
Total equity   1,274,384    1,340,835 
Total liabilities and equity  $3,411,996   $3,553,020 

 

 10 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)

 

   Three Months Ended 
   March 31, 
   2018   2017 
EARNINGS PER SHARE:          
           
Basic:          
Net income (loss) attributable to common shareholders  $(15,957)  $40,397 
           
Weighted-average number of common shares outstanding - basic   238,072,081    237,179,526 
           
Net income (loss) attributable to common shareholders - per common share basic  $(0.07)  $0.17 
           
Diluted:          
Net income (loss) attributable to common shareholders - basic  $(15,957)  $40,397 
Impact of assumed conversions       (19)
Net income (loss) attributable to common shareholders  $(15,957)  $40,378 
           
Weighted-average common shares outstanding - basic   238,072,081    237,179,526 
Effect of dilutive securities:          
Share options       136,881 
Operating Partnership Units       3,771,642 
Weighted-average common shares outstanding - diluted   238,072,081    241,088,049 
           
Net income (loss) attributable to common shareholders - per common share diluted  $(0.07)  $0.17 

 

 11 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION

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

 

 

   Three Months Ended
March 31,
 
   2018   2017 
FUNDS FROM OPERATIONS:          
Basic and Diluted:          
Net income (loss) attributable to common shareholders  $(15,957)  $40,397 
Adjustments:          
Depreciation and amortization   45,154    41,542 
Impairment charges - real estate   53,049    2,698 
Noncontrolling interests - OP units   (729)   (19)
Amortization of leasing commissions   1,383    1,349 
Joint venture and noncontrolling interest adjustment   258    340 
Gains on sales of properties, including non-consolidated entities   (22,774)   (35,645)
FFO available to common shareholders and unitholders - basic   60,384    50,662 
Preferred dividends   1,572    1,572 
Amount allocated to participating securities   70    71 
FFO available to all equityholders and unitholders - diluted   62,026    52,305 
Loan loss       5,294 
Transaction costs       186 
Adjusted Company FFO available to all equityholders and unitholders - diluted   62,026    57,785 
           
FUNDS AVAILABLE FOR DISTRIBUTION:          
Adjustments:          
Straight-line adjustments   (4,866)   (2,909)
Lease incentives   536    431 
Amortization of above/below market leases   (22)   514 
Lease termination payments, net   (308)   235 
Non-cash interest, net   1,025    155 
Non-cash charges, net   1,939    2,146 
Tenant improvements   (5,932)   (1,762)
Lease costs   (609)   (1,671)
Company Funds Available for Distribution  $53,789   $54,924 
           
Per Common Share and Unit Amounts          
Basic:          
FFO  $0.25   $0.21 
           
Diluted:          
FFO  $0.25   $0.21 
Adjusted Company FFO  $0.25   $0.23 
           
Basic:          
Weighted-average common shares outstanding - basic EPS   238,072,081    237,179,526 
Operating partnership units(1)   3,629,195    3,771,642 
Weighted-average common shares outstanding - basic FFO   241,701,276    240,951,168 
           
Diluted:          
Weighted-average common shares outstanding - diluted EPS   238,072,081    241,088,049 
Operating partnership units(1)   3,629,195     
Unvested share-based payment awards and options   562,084    691,936 
Preferred shares - Series C   4,710,570    4,710,570 
Weighted-average common shares outstanding - diluted FFO   246,973,930    246,490,555 

 

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

 

 12 

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

 

2018 EARNINGS GUIDANCE

 

  

Twelve Months Ended

December 31, 2018

 
   Range 
Estimated:          
Net income attributable to common shareholders per diluted common share(1)  $0.54   $0.57 
Depreciation and amortization   0.70    0.70 
Impact of capital transactions   (0.29)   (0.29)
Estimated Adjusted Company FFO per diluted common share  $0.95   $0.98 

 

(1)Assumes all convertible securities are dilutive.

 

 13 

 

 

LEXINGTON REALTY TRUST

2018 First Quarter Capital Recycling Summary

 

CAPITAL RECYCLING

 

PROPERTY DISPOSITIONS

 

   Primary Tenant  Location  Property Type  Gross
Sale Price
($000)
   Annualized
Net Income
($000) (1)
   Annualized
NOI
($000)(1)(2)
   Month of
Disposition
  % Leased   Gross Sale
Price PSF
 
                                    
1-2  Kelsey-Hayes Company (3)  Livonia  MI  Office  $21,000   $1,144   $1,637   February   100%  $116.52 
3  Vacant  Canton  OH  Other   2,975    463    465   February   0%   64.19 
4  Evans, Mechwart, Hambleton & Tilton, Inc.  Columbus  OH  Office   20,000    1,185    1,678   March   100%   190.83 
5  Wipro Data Center and Cloud Services, Inc.  Omaha  NE  Office   16,400    765    1,167   March   100%   192.49 
6  Autocam Corporation  Marshall  MI   Industrial   2,300    145    310   March   100%   39.18 
6  TOTAL PROPERTY DISPOSITIONS           $62,675   $3,702   $5,257              

 

Footnotes

(1)Quarterly period prior to sale annualized. Net income excludes impairment charges, if any.
(2)See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(3)Two properties.

 

 14 

 

 

LEXINGTON REALTY TRUST

2018 First Quarter Leasing Summary

LEASE EXTENSIONS

 

   Tenant (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)

 
   Industrial                                     
1  Pierce Packaging Co.  Rockford  IL  12/2019  12/2021   93,000   $326   $321   $326   $321 
                                         
1  Total industrial lease extensions               93,000   $326   $321   $326   $321 
                                         
   Office / Multi-Tenant Office                                     
1-6  N/A  Philadelphia / Honolulu  PA / HI  2018  2018 - 2023   10,633   $284   $252   $284   $265 
                                         
6  Total office lease extension               10,633   $284   $252   $284   $265 
                                         
            `                            
   Other                                     
1  Associated Wholesale Grocers, Inc. / Safeway, Inc.  Lawton  OK  03/2019  03/2024   30,757   $185   $189   $185   $185 
                                         
1  Total other lease extensions               30,757   $185   $189   $185   $185 
                                         
8  TOTAL EXTENDED LEASES               134,390   $795   $762   $795   $771 

 

NEW LEASES

 

   Tenant (4)  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  Total System Services Inc.  McDonough  GA    08/2021   62,218   $840   $840 
2  N/A  Honolulu  HI     01/2019   304    6    6 
3  South Carolina Department of Mental Health  Charleston  SC     07/2023   11,736    304    304 
                               
3  Total office new leases               74,258   $1,150   $1,150 
                               
3  TOTAL NEW LEASES               74,258   $1,150   $1,150 
                               
11  TOTAL NEW AND EXTENDED LEASES               208,648   $1,945   $1,945 

 

 15 

 

 

LEXINGTON REALTY TRUST 

2018 First Quarter Leasing Summary (Continued)

 

NEW VACANCY (2)

 

   Tenant  Location  Lease
Expiration
 Date
  Sq. Ft.   2017
GAAP
Rent
($000)
    2017
Cash Rent
($000)(3)
 
   Industrial                        
1  Sears, Roebuck and Co. / Sears Logistics Services  Memphis  TN  02/2027   780,000   $1,676   $1,592 

 

Footnotes

(1)Assumes three months rent from the later of 4/1/18 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.

 

 16 

 

 

LEXINGTON REALTY TRUST

Other Revenue Data

3/31/2018

($000)

 

Other Revenue Data

 

   GAAP  Rent 
Asset Class  Three months ended 
   3/31/18 (1)   3/31/18 
Percentage
   3/31/17
Percentage
 
Industrial  $45,114    48.3%   41.4%
Office   44,417    47.6%   52.2%
Other               
Multi-tenant   2,033    2.2%   3.1%
Specialty   964    1.0%   1.1%
Retail   790    0.9%   2.2%
   $93,318    100.0%   100.0%

 

   GAAP  Rent 
Credit Ratings  (2)  Three months ended 
  
3/31/18 (1)
   3/31/18
Percentage
   3/31/17
Percentage
 
Investment Grade  $39,242    42.0%   39.3%
Non-Investment Grade   13,976    15.0%   16.0%
Unrated   40,100    43.0%   44.7%
   $93,318    100.0%   100.0%

 

Weighted-Average Lease Term - Cash Basis   As of 3/31/18   As of 3/31/17
        8.9 years   8.8 years

 

Rent Estimates for Current Assets      

 

Year  GAAP  (3)   Cash  (3)   Difference 
2018 - remaining  $274,397   $260,193   $(14,204)
2019   338,857    328,159    (10,698)

 

Footnotes

 

(1)Three months ended 3/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2018.
(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 3/31/2018, and (3) no properties are sold or acquired after 3/31/2018.

 

 17 

 

 

LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

3/31/2018

($000)

 

Same-Store NOI (1)

 

   Three months ended March 31, 
   2018   2017 
Total Cash  Rent  $78,590   $78,604 
Tenant Reimbursements   7,590    6,933 
Property Operating Expenses   (10,732)   (10,226)
Same-Store NOI  $75,448   $75,311 
           
Change in Same-Store NOI   0.2%     
           

 

Same-Store Percent Leased (2)  As of 3/31/18   As of 3/31/17 
   96.5%   98.7%

 

Lease Escalation Data (3)

 

 

Footnotes

(1)NOI is on a consolidated cash basis for all consolidated properties except properties acquired and sold in 2018 and 2017. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(2)Excludes properties acquired or sold in 2018 and 2017.
(3)Based on three months consolidated cash rents for single-tenant leases (properties greater than 70% leased) owned as of March 31, 2018. Excludes parking operations and rents from prior tenants.

 

 18 

 

 

LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

3/31/2018

($000, except square footage)

 

Asset Class  YE 2015   YE 2016   YE 2017   Q1 2018 
                 
Industrial                    
% of ABR (1)   30.5%   39.7%   43.6%   48.3%
LTL (5)   47.4%   50.8%   47.1%   41.8%
STL (6)   52.6%   49.2%   52.9%   58.2%
Leased   99.6%   99.9%   99.9%   97.7%
Wtd. Avg. Lease Term (2)   10.1    10.4    10.6    10.4 
Mortgage Debt  $292,293   $240,790   $193,529   $192,003 
% Investment Grade (1)   27.9%   26.2%   28.9%   35.2%
Square Feet   25,693,585    27,476,653    35,396,894    35,338,187 
                     
Office                    
% of ABR (1)   49.6%   52.9%   51.8%   47.6%
LTL (5)   23.2%   26.9%   30.1%   31.8%
STL (6)   76.8%   73.1%   69.9%   68.2%
Leased   99.6%   99.6%   99.2%   99.1%
Wtd. Avg. Lease Term (2)   7.2    7.2    7.7    7.3 
Mortgage Debt  $329,696   $490,948   $495,842   $490,409 
% Investment Grade (1)   48.0%   48.1%   52.0%   51.5%
Square Feet   12,847,877    11,569,940    10,881,264    10,511,027 
                     
Other                    
% of ABR (1)   19.9%   7.4%   4.6%   4.1%
LTL (5)   74.7%   20.9%   26.1%   27.8%
STL (6)   25.3%   79.1%   73.9%   72.2%
Leased   64.7%   60.5%   81.8%   79.7%
Wtd. Avg. Lease Term (2)(3)   15.3    9.5    10.1    11.7 
Mortgage Debt  $269,336   $13,435   $7,697   $7,662 
% Investment Grade (1)   8.4%   16.0%   12.9%   12.8%
Square Feet   3,728,561    4,277,704    2,335,904    2,289,554 
                     
Loans Receivable  $95,871   $94,210   $-   $- 
Construction in progress (4)  $103,954   $111,771   $4,219   $2,730 

 

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.

 

 19 

 

 

LEXINGTON REALTY TRUST

Portfolio Composition

3/31/2018

 

 

 

 

Footnotes

(1)Based on gross book value of real estate assets and real estate under construction as of 3/31/2018; excludes held for sale assets.
(2)Based on respective period GAAP rent, excluding termination income.

 

 20 

 

 

LEXINGTON REALTY TRUST

Components of Net Asset Value

3/31/2018

($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 three month net operating income (NOI) (1)     
Industrial  $42,724 
Office   40,831 
Other     
Specialty   831 
Multi-Tenant   679 
Retail   186 
Total Net Operating Income  $85,251 
      
Lexington's share of non-consolidated three month NOI (1)     
Office  $108 
Other   454 
   $562 
Other income     
Advisory fees  $184 

 

 

 

In service assets not fairly valued by capitalized NOI method (1)    
Wholly-owned assets less than 70% leased  $38,203 
      
Add other assets:     
Construction in progress  $2,730 
Developable land   5,831 
Cash and cash equivalents   90,214 
Restricted cash   7,479 
Accounts receivable, net   5,878 
Other assets   25,958 
Total other assets  $138,090 
      
Liabilities:     
Corporate level debt (face amount)  $1,329,120 
Mortgages and notes payable (face amount)   690,074 
Dividends payable   48,438 
Accounts payable, accrued expenses and other liabilities   54,465 
Preferred stock, at liquidation value   96,770 
Lexington's share of non-consolidated mortgages   20,816 
Total deductions  $2,239,683 
      
Common shares & OP units at 3/31/2018   243,601,259 

 

Footnotes

(1)NOI for the existing property portfolio at March 31, 2018, 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 2018. 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.

 

 21 

 

 

LEXINGTON REALTY TRUST

Top Markets

3/31/2018

 

     Core Based Statistical Area (2)  Percent of
GAAP Rent as of
3/31/18 (1)
 
1  Houston-Sugar Land-Baytown, TX   10.1%
2  Memphis, TN-MS-AR   5.7%
3  Dallas-Fort Worth-Arlington, TX   5.6%
4  Kansas City, MO-KS   4.1%
5  Detroit-Warren-Livonia, MI   3.7%
6  Kennewick-Pasco-Richland, WA   3.5%
7  New York-Northern New Jersey-Long Island, NY-NJ-PA   3.3%
8  Richmond, VA   3.1%
9  Charlotte-Concord-Gastonia, NC-SC   2.7%
10  Nashville-Davidson—Murfreesboro—Franklin, TN   2.6%
11  Phoenix-Mesa-Scottsdale, AZ   2.6%
12  Atlanta-Sandy Springs-Marietta, GA   2.2%
13  Chicago-Naperville-Joliet, IL-IN-WI   2.2%
14  Philadelphia-Camden-Wilmington, PA-NJ-DE-MD   2.2%
15  Denver-Aurora, CO   2.2%
16  Las Vegas-Paradise, NV   1.8%
17  San Jose-Sunnyvale-Santa Clara, CA   1.8%
18  Jackson, MS   1.7%
19  Columbus, OH   1.5%
20  San Antonio, TX   1.3%
   Total Top Markets (3)   63.8%

 

Footnotes

(1)Three months ended 3/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2018.
(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.

 

 22 

 

 

LEXINGTON REALTY TRUST

Single-Tenant Office Markets (1)(2)

3/31/2018

 

 

 

Footnotes

(1)Three months ended 3/31/2018 GAAP rent, excluding termination income, recognized for consolidated single-tenant office properties owned as of 3/31/2018.
(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.

 

 23 

 

 

LEXINGTON REALTY TRUST

 

Tenant Industry Diversification (1)

3/31/2018

 

 

 

Footnotes

(1)Three months ended 3/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2018.

 

 24 

 

 

LEXINGTON REALTY TRUST

Top 10 Tenants or Guarantors

3/31/2018

 

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

3/31/2018

($000) (1)

  

Percent of

GAAP Rent

as of
3/31/2018
($000) (1) (2)

 
Nissan North America, Inc.   3    3,196,049    6.6%  $4,046    4.3%
The Dow Chemical Company   1    664,100    1.4%   3,713    4.0%
Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)   1    456,412    0.9%   3,283    3.5%
FedEx Corporation / Federal Express Corporation   2    661,616    1.4%   3,037    3.3%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)   7    2,053,359    4.3%   2,485    2.7%
United States of America   3    398,214    0.8%   2,386    2.6%
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation   2    476,123    1.0%   2,020    2.2%
McGuireWoods LLP   1    224,537    0.5%   1,796    1.9%
Undisclosed (3)   3    1,090,383    2.3%   1,785    1.9%
Watco Dock & Rail III, L.L.C. (Watco Companies, L.L.C.)   1    132,449    0.3%   1,693    1.8%
    24    9,353,242    19.4%  $26,244    28.1%

 

Footnotes

(1)Three months ended 3/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2018.
(2)Total shown may differ from detailed amounts due to rounding.
(3)Tenant is a domestic subsidiary of an international automaker.

 

 25 

 

 

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis

3/31/2018

($000)

 

Year  Number of
Leases
Expiring
   GAAP
Rent as of
3/31/2018
   Percent of
GAAP Rent
as of
3/31/2018
   Percent of
GAAP Rent
as of
3/31/2017
 
2018 - remaining   14   $3,298    3.7%   6.9%
2019   15    7,203    8.0%   9.5%
2020   13    4,837    5.4%   4.8%
2021   13    5,792    6.5%   6.5%
2022   6    3,146    3.5%   2.5%
2023   10    3,423    3.8%   4.0%
2024   13    5,090    5.7%   5.1%
2025   16    7,390    8.2%   9.6%
2026   11    3,849    4.3%   5.5%
2027   16    9,572    10.7%   7.7%
Thereafter   45    36,134    40.3%   35.1%
                     
Total (1)   172   $89,734    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.

 

 26 

 

 

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Properties GAAP Basis

3/31/2018

($000)

 

Year  Number of
Leases
Expiring
   GAAP
Rent as of
3/31/2018
   Percent of
GAAP Rent
as of
3/31/2018
 
2018 - remaining   45   $3,814    4.2%
2019   24    7,376    8.0%
2020   20    4,872    5.3%
2021   19    6,557    7.1%
2022   6    3,146    3.4%
2023   11    3,423    3.7%
2024   14    5,121    5.6%
2025   18    7,757    8.4%
2026   11    3,849    4.2%
2027   16    9,572    10.4%
Thereafter   47    36,397    39.6%
                
Total (1)   231   $91,884    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.

 

 27 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of

Lease

Expiration

 

Date of Lease

Expiration

  Property Location  City  State  Note   Primary Tenant or Guarantor (19) 

Sq. Ft.

Leased or

Available (1)

  

GAAP

Rent

as of

3/31/2018

($000) (3)

  

Cash

Rent

as of

3/31/2018

($000) (2)

  

3/31/2018

Debt Balance

($000)

   Debt
Maturity
INDUSTRIAL PROPERTIES                                     
2018  9/30/2018  50 Tyger River Dr.  Duncan  SC      Plastic Omnium   221,833    256    256    -   -
   12/31/2018  1133 Poplar Creek Rd.  Henderson  NC      Staples   196,946    217    222    -   -
      2935 Van Vactor Dr.  Plymouth  IN      Bay Valley Foods   300,500    214    214    -   -
      749 Southrock Dr.  Rockford  IL      Jacobson Warehouse   150,000    118    135    -   -
2019  10/17/2019  10345 Philipp Pkwy.  Streetsboro  OH      L'Oreal USA   649,250    653    704    16,867   09/2019
   12/31/2019  191 Arrowhead Dr.  Hebron  OH      Owens Corning   250,410    142    142    -   -
      200 Arrowhead Dr.  Hebron  OH      Owens Corning   400,522    227    227    -   -
      2415 US Hwy. 78 East  Moody  AL      Michelin   595,346    352    362    -   -
2020  1/31/2020  101 Michelin Dr.  Laurens  SC      Michelin   1,164,000    862    862    -   -
   5/31/2020  359 Gateway Dr.  Lavonia  GA      TI Automotive   133,221    238    300    6,920   12/2020
   6/30/2020  1650-1654 Williams Rd.  Columbus  OH      ODW Logistics   772,450    335    337    -   -
      3102 Queen Palm Dr.  Tampa  FL      Time   229,605    309    334    -   -
   9/30/2020  3350 Miac Cove Rd.  Memphis  TN      Mimeo.com   107,400    105    112    -   -
   12/19/2020  1901 Ragu Dr.  Owensboro  KY   6   Unilever   443,380    373    322    -   -
   12/31/2020  2203 Sherrill Dr.  Statesville  NC      Geodis America   639,800    623    616    -   -
2021  3/31/2021  2455 Premier Row  Orlando  FL      Walgreen Co.   205,016    196    127    -   -
   5/31/2021  291 Park Center Dr.  Winchester  VA      Kraft Heinz   344,700    355    348    -   -
   9/30/2021  3820 Micro Dr.  Millington  TN      Ingram Micro   701,819    453    469    -   -
   10/25/2021  6938 Elm Valley Dr.  Kalamazoo  MI      Dana   150,945    437    507    -   -
   11/30/2021  2880 Kenny Biggs Rd.  Lumberton  NC      Quickie Manufacturing   423,280    339    359    -   -
   12/31/2021  3686 South Central Ave.  Rockford  IL      Pierce Packaging   93,000    79    79    -   -
2022  3/31/2022  5417 Campus Dr.  Shreveport  LA      Tire Rack   257,849    336    351    -   -
2023  2/28/2023  7670 Hacks Cross Rd.  Olive Branch  MS      MAHLE Industries   268,104    226    221    -   -
   12/31/2023  120 Southeast Pkwy. Dr.  Franklin  TN      United Technologies   289,330    185    185    -   -
2024  1/31/2024  1285 W. State Road 32  Lebanon  IN      Continental Tire   741,880    570    488    -   -
   3/31/2024  1520 Lauderdale Memorial Hwy.  Cleveland  TN      General Electric   851,370    642    647    -   -
   4/30/2024  113 Wells St.  North Berwick  ME      United Technologies   993,685    450    491    1,626   04/2019
   5/31/2024  901 East Bingen Point Way  Bingen  WA      Boeing   124,539    659    647    -   -

 

 28 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of

Lease

Expiration

 

Date of Lease

Expiration

  Property Location  City  State  Note   Primary Tenant or Guarantor (19) 

Sq. Ft.

Leased or

Available (1)

  

GAAP

Rent

as of

3/31/2018

($000) (3)

  

Cash

Rent

as of

3/31/2018

($000) (2)

  

3/31/2018

Debt Balance

($000)

   Debt
Maturity
INDUSTRIAL PROPERTIES                                     
2024  9/30/2024  1621 Veterans Memorial Pkwy. E  Lafayette  IN      Caterpillar   309,400    304    301    -   -
   10/31/2024  43955 Plymouth Oaks Blvd.  Plymouth  MI      Tower Automotive   311,612    398    379    -   -
2025  6/30/2025  10000 Business Blvd.  Dry Ridge  KY      Dana   336,350    336    336    -   -
      301 Bill Bryan Rd.  Hopkinsville  KY      Metalsa / Dana   424,904    422    422    -   -
      4010 Airpark Dr.  Owensboro  KY      Metalsa / Dana   211,598    302    302    -   -
      730 North Black Branch Rd.  Elizabethtown  KY      Metalsa / Dana   167,770    134    134    -   -
      750 North Black Branch Rd.  Elizabethtown  KY      Metalsa / Dana   539,592    710    710    -   -
   7/14/2025  590 Ecology Ln.  Chester  SC      Boral Limited   420,597    435    583    7,144   08/2025
   7/31/2025  7005 Cochran Rd.  Glenwillow  OH      Royal Appliance   458,000    515    525    -   -
   12/31/2025  1700 47th Ave North  Minneapolis  MN      Owens Corning   18,620    138    138    -   -
2026  3/30/2026  121 Technology Dr.  Durham  NH   15   Heidelberg   500,500    634    2,303    -   -
   3/31/2026  633 Garrett Pkwy.  Lewisburg  TN      Calsonic Kansei   310,000    322    299    -   -
   6/30/2026  351 Chamber Dr.  Chillicothe  OH      Kitchen Collection   475,218    290    281    -   -
   9/30/2026  900 Industrial Blvd.  Crossville  TN      Dana   222,200    144    144    -   -
      3931 Lakeview Corporate Dr.  Edwardsville  IL      Amazon.com   769,500    671    635    -   -
   10/31/2026  5001 Greenwood Rd.  Shreveport  LA      Libbey   646,000    541    547    -   -
   11/30/2026  250 Rittenhouse Cir.  Bristol  PA      Estée Lauder   241,977    287    289    -   -
      736 Addison Rd.  Erwin  NY      Corning   408,000    346    348    6,873   10/2018
2027  1/31/2027  27200 West 157th St.  New Century  KS      Amazon.com   446,500    310    266    -   -
   2/28/2027  554 Nissan Pkwy.  Canton  MS      Nissan   1,466,000    1,550    1,476    -   -
   4/30/2027  16407 Applewhite Rd.  San Antonio  TX   18   Undisclosed / HVAC   849,275    749    683    -   -
      200 Sam Griffin Rd.  Smyrna  TN      Nissan   1,505,000    1,640    1,551    -   -
   6/30/2027  1501 Nolan Ryan Expy.  Arlington  TX      Arrow Electronics   74,739    101    98    -   -
   9/30/2027  1550 Hwy 302  Byhalia  MS      McCormick   615,600    609    429    -   -
   10/31/2027  201 James Lawrence Rd.  Jackson  TN      Kellogg   1,062,055    986    922    -   -
   12/31/2027  10590 Hamilton Ave.  Cincinnati  OH      Hillman Group   264,598    203    203    -   -
2028  1/31/2028  490 Westridge Pkwy.  McDonough  GA      Georgia-Pacific   1,121,120    934    790    -   -
   3/31/2028  29-01-Borden Ave./29-10 Hunters Point Ave.  Long Island City  NY      FedEx   140,330    1,284    1,193    42,573   03/2028

 

 29 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of

Lease

Expiration

 

Date of Lease

Expiration

  Property Location  City  State  Note   Primary Tenant or Guarantor (19) 

Sq. Ft.

Leased or

Available (1)

  

GAAP

Rent

as of

3/31/2018

($000) (3)

  

Cash

Rent

as of

3/31/2018

($000) (2)

  

3/31/2018

Debt Balance

($000)

   Debt
Maturity
INDUSTRIAL PROPERTIES                                     
2028  8/31/2028  1420 Greenwood Rd.  McDonough  GA      United States Cold Storage   296,972    542    532    -   -
   9/30/2028  904 Industrial Rd.  Marshall  MI      Tenneco   246,508    171    210    -   -
2029  11/24/2029  318 Pappy Dunn Blvd.  Anniston  AL      IAC Group   276,782    435    411    -   -
2030  3/31/2030  549 Wingo Rd.  Byhalia  MS      Asics   855,878    1,097    1,009    -   -
   5/31/2030  3301 Stagecoach Rd. NE  Thomson  GA      Hollander   208,000    232    215    -   -
2031  10/31/2031  1020 W. Airport Rd.  Romeoville  IL      ARYZTA   188,166    897    843    -   -
   12/18/2031  80 Tyson Dr.  Winchester  VA   16   Undisclosed / Automaker   400,400    592    517    -   -
2032  4/30/2032  13930 Pike Rd.  Missouri City  TX      Vulcan   -    531    483    -   -
   8/24/2032  16950 Pine Dr.  Romulus  MI   16   Undisclosed / Automaker   500,023    642    598    -   -
   10/31/2032  27255 SW 95th Ave.  Wilsonville  OR      Pacific Natural Foods   508,277    780    644    -   -
      26700 Bunert Road  Warren  MI      Lipari   260,243    971    857    -   -
2034  9/30/2034  5625 North Sloan Ln.  North Las Vegas  NV      Nicholas   180,235    639    568    -   -
   10/31/2034  1001 Innovation Rd.  Rantoul  IL      Vista Outdoor   813,126    1,049    922    -   -
2035  3/31/2035  13863 Industrial Rd.  Houston  TX      Spitzer   187,800    609    521    -   -
      7007 F.M. 362 Rd.  Brookshire  TX      Spitzer   262,095    478    409    -   -
   6/30/2035  111 West Oakview Pkwy.  Oak Creek  WI      Stella & Chewy's   164,007    525    466    -   -
   8/31/2035  2800 Polar Way  Richland  WA   9   Preferred Freezer   456,412    3,283    2,807    110,000   01/2026
   10/22/2035  2860 Clark St.  Detroit  MI   16   Undisclosed / Automaker   189,960    551    551    -   -
2036  5/31/2036  671 Washburn Switch Rd.  Shelby  NC      Clearwater Paper   673,425    696    602    -   -
   6/30/2036  100 Ryobi Drive  Anderson  SC      One World Technologies   1,327,022    1,112    933    -   -
2037  3/31/2037  4005 E I-30  Grand Prairie  TX      O'Neal Industries   215,000    468    384    -   -
2038  3/31/2038  13901/14035 Industrial Rd.  Houston  TX      Watco   132,449    1,693    1,431    -   -
2042  5/31/2042  4801 North Park Dr.  Opelika  AL      Golden State Enterprises   165,493    844    652    -   -
N/A  Vacancy  3456 Meyers Ave.  Memphis  TN   11   (Available for Lease)   780,000    1,031    504    -   -
      3350 Miac Cove Rd.  Memphis  TN      (Available for Lease)   32,679    -    -    -   -
INDUSTRIAL TOTAL/WEIGHTED AVERAGE             97.7% Leased   35,338,187   $45,114   $43,420   $192,003    

 

 30 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of Lease
Expiration
  Date of Lease 
Expiration
  Property Location  City  State  Note  Primary Tenant or Guarantor (19)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
3/31/2018
($000) (3)
   Cash
Rent
as of
3/31/2018
($000) (2)
   3/31/2018
Debt Balance
($000)
   Debt Maturity
OFFICE PROPERTIES                                   
2018  5/31/2018  8900 Freeport Pkwy.  Irving  TX  17  Pacific Union Financial   43,396    196    228    -   -
   6/30/2018  100 Barnes Rd.  Wallingford  CT    3M Company   44,400    127    135    -   -
   10/31/2018  3943 Denny Ave.  Pascagoula  MS    Huntington Ingalls   94,841    148    148    -   -
   12/22/2018  5200 Metcalf Ave.  Overland Park  KS    Swiss Re   320,198    1,395    1,387    32,591   05/2019
2019  1/31/2019  2999 Southwest 6th St.  Redmond  OR    T-Mobile USA   77,484    367    446    -   -
      820 Gears Rd.  Houston  TX    Ricoh   78,895    294    293    -   -
   2/28/2019  10475 Crosspoint Blvd.  Indianapolis  IN    DMC Insurance   3,764    18    18    -   -
   4/1/2019  9201 Stateline Rd.  Kansas City  MO    Swiss Re   155,925    625    625    15,557   05/2019
   6/19/2019  3965 Airways Blvd.  Memphis  TN    Federal Express   521,286    1,753    1,775    -   -
   6/30/2019  3265 East Goldstone Dr.  Meridian  ID    T-Mobile USA   77,484    276    370    8,311   08/2019
   7/15/2019  19019 North 59th Ave.  Glendale  AZ    Honeywell   252,300    475    494    -   -
   7/31/2019  500 Jackson St.  Columbus  IN    Cummins   390,100    1,135    1,190    11,092   07/2019
   10/31/2019  10475 Crosspoint Blvd.  Indianapolis  IN    John Wiley   123,416    567    586    -   -
      9601 Renner Blvd.  Lenexa  KS    T-Mobile USA   77,484    286    379    8,486   12/2019
2020  2/14/2020  5600 Broken Sound Blvd.  Boca Raton  FL    Oce - USA Holding   143,290    561    625    19,007   02/2020
   5/31/2020  2401 Cherahala Blvd.  Knoxville  TN    CaremarkPCS   59,748    193    194    -   -
   6/30/2020  3711 San Gabriel  Mission  TX     T-Mobile West   75,016    247    246    -   -
   7/31/2020  13775 McLearen Rd.  Herndon  VA  12  Equant   132,617    420    458    -   -
   8/31/2020  133 First Park Dr.  Oakland  ME    T-Mobile USA   78,610    287    375    8,327   10/2020
   9/30/2020  9200 South Park Center Loop  Orlando  FL    ECMC Group   59,927    284    298    -   -
2021  1/31/2021  1701 Market St.  Philadelphia  PA    Morgan Lewis   289,432    1,074    1,122    -   -
   3/31/2021  1701 Market St.  Philadelphia  PA    Car-Tel   1,220    16    16    -   -
   6/30/2021  1415 Wyckoff Rd.  Wall  NJ    NJ Natural Gas   157,511    944    944    10,409   01/2021
      2050 Roanoke Rd.  Westlake  TX    Charles Schwab   130,199    517    525    -   -
   8/31/2021  3500 North Loop Rd.  McDonough  GA  13  Litton Loan / TSYS   62,218    254    349    -   -
   11/30/2021  29 South Jefferson Rd.  Whippany  NJ    CAE   123,734    582    651    12,568   11/2021
   12/31/2021  2800 Waterford Lake Dr.  Midlothian  VA    Alstom Power   99,057    546    590    -   -

  

 31 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of Lease
Expiration
  Date of Lease 
Expiration
  Property Location  City  State  Note  Primary Tenant or Guarantor (19)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
3/31/2018
($000) (3)
   Cash
Rent
as of
3/31/2018
($000) (2)
   3/31/2018
Debt Balance
($000)
   Debt Maturity
OFFICE PROPERTIES                                   
2022  5/30/2022  13651 McLearen Rd.  Herndon  VA    United States of America   159,644    786    805    -   -
   6/30/2022  8555 South River Pkwy.  Tempe  AZ    Versum Materials   95,133    438    423    -   -
   7/31/2022  1440 E 15th St.  Tucson  AZ    CoxCom   28,591    140    140    -   -
   10/31/2022  4455 American Way  Baton Rouge  LA    New Cingular Wireless   70,100    291    280    -   -
   12/31/2022  231 N. Martingale Rd.  Schaumburg  IL    Career Education Corporation   317,198    1,155    1,144    -   -
2023  2/28/2023  1315 West Century Dr.  Louisville  CO    Rogue Wave Software   20,000    88    75    -   -
   3/31/2023  8900 Freeport Pkwy.  Irving  TX    Nissan   225,049    856    932    -   -
   6/30/2023  420 Riverport Rd.  Kingsport  TN    Kingsport Power   42,770    32    78    -   -
   8/31/2023  400 Butler Farm Rd.  Hampton  VA  7  Nextel / Wisconsin Physicians Service Insurance   100,632    251    265    -   -
   9/30/2023  1701 Market St.  Philadelphia  PA    CBC Restaurant   8,070    46    56    -   -
   12/14/2023  3333 Coyote Hill Rd.  Palo Alto  CA    Xerox   202,000    1,660    1,768    36,453   12/2023
2024  2/14/2024  1362 Celebration Blvd.  Florence  SC    MED3000   32,000    143    143    -   -
   5/31/2024  3476 Stateview Blvd.  Fort Mill  SC    Wells Fargo   169,083    487    479    -   -
      3480 Stateview Blvd.  Fort Mill  SC    Wells Fargo   169,218    506    479    -   -
   8/31/2024  10475 Crosspoint Blvd.  Indianapolis  IN    HQ Global Workplaces   14,236    77    77    -   -
   10/31/2024  1409 Centerpoint Blvd.  Knoxville  TN    Alstom Power   84,404    314    310    -   -
   11/30/2024  6200 Northwest Pkwy.  San Antonio  TX    United HealthCare   142,500    489    359    -   -
2025  1/31/2025  1401 Nolan Ryan Expy.  Arlington  TX    Triumph Group   111,409    420    448    -   -
   2/28/2025  6555 Sierra Dr.  Irving  TX    TXU   247,254    701    777    -   -
      1401 Nolan Ryan Expy.  Arlington  TX    Infotech Enterprise   13,590    51    52    -   -
   3/14/2025  601 & 701 Experian Pkwy.  Allen  TX    Experian Holdings   292,700    742    768    -   -
   5/31/2025  1701 Market St.  Philadelphia  PA    TruMark Financial   2,641    62    62    -   -
   6/30/2025  2500 Patrick Henry Pkwy.  McDonough  GA    Georgia Power   111,911    356    345    -   -
   9/30/2025  10001 Richmond Ave.  Houston  TX    Schlumberger   554,385    1,510    1,397    -   -
   12/31/2025  4001 International Pkwy.  Carrollton  TX    Motel 6   138,443    556    565    -   -
2026  3/31/2026  500 Olde Worthington Rd.  Westerville  OH    inVentiv Health   97,000    277    291    -   -
   4/30/2026  800 East Canal St.  Richmond  VA  5  Richmond Belly Ventures   2,568    20    20    -   -
   11/30/2026  500 Kinetic Dr.  Huntington  WV    Amazon.com   68,693    317    283    -   -

 

 32 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of Lease
Expiration
  Date of Lease 
Expiration
  Property Location  City  State  Note  Primary Tenant or Guarantor (19)  Sq.Ft.
Leased or
Available (1)
   GAAP
Rent
as of
3/31/2018
($000) (3)
   Cash
Rent
as of
3/31/2018
($000) (2)
   3/31/2018
Debt Balance
($000)
   Debt Maturity
OFFICE PROPERTIES                                   
2027  1/31/2027  1701 Market St.  Philadelphia  PA    Drybar   1,975    35    26    -   -
   2/28/2027  800 East Canal St.  Richmond  VA  5  Sumitomo   8,503    34    34    -   -
   4/30/2027  1315 West Century Dr.  Louisville  CO    GHX Ultimate Parent   86,877    322    314    -   -
   6/30/2027  3902 Gene Field Rd.  St. Joseph  MO    Boehringer Ingelheim USA   98,849    498    475    -   -
   7/6/2027  2221 Schrock Rd.  Columbus  OH    MS Consultants   42,290    160    155    -   -
   8/7/2027  25 Lakeview Dr.  Jessup  PA    TMG Health   150,000    625    527    -   -
   10/31/2027  11201 Renner Blvd.  Lenexa  KS    United States of America   169,585    1,225    1,182    32,848   11/2027
   11/30/2027  1700 Millrace Dr.  Eugene  OR  10  Oregon Research Institute   80,011    525    458    -   -
2028  4/30/2028  9655 Maroon Cir.  Englewood  CO    TriZetto   166,912    961    919    -   -
2029  1/31/2029  6226 West Sahara Ave.  Las Vegas  NV    Nevada Power   282,000    1,063    772    -   -
   3/31/2029  2800 High Meadow Cir.  Auburn Hills  MI    Faurecia   278,000    887    813    -   -
   12/31/2029  333 Mt. Hope Ave.  Rockaway  NJ    Atlantic Health   92,326    309    329    -   -
2030  8/31/2030  800 East Canal St.  Richmond  VA    McGuireWoods   224,537    1,796    1,702    57,500   02/2031
   9/30/2030  800 East Canal St.  Richmond  VA  5  The Riverstone Group   25,707    173    164    -   -
2031  1/10/2031  810 Gears Rd.  Houston  TX    United States of America   68,985    375    356    -   -
   3/1/2031  800 East Canal St.  Richmond  VA  5  Towne Bank   26,047    194    171    -   -
2032  4/30/2032  1210 AvidXchange Ln.  Charlotte  NC    AvidXchange   201,450    1,488    1,290    45,900   12/2022 & 01/2033
   10/31/2032  143 Diamond Ave.  Parachute  CO    Alenco   49,024    321    274    -   -
   12/31/2032  3030 North 3rd St.  Phoenix  AZ    CopperPoint Mutual Insurance   252,400    1,264    1,097    -   -
2033  3/31/2033  9201 East Dry Creek Rd.  Centennial  CO    Arrow Electronics   128,500    640    -    -   -
   11/30/2033  1331 Capitol Ave.  Omaha  NE    The Gavilon Group   127,810    828    750    -   -
2036  10/31/2036  270 Abner Jackson Pkwy.  Lake Jackson  TX    Dow   664,100    3,713    3,093    191,360   10/2036
2088  8/8/2088  800 East Canal St.  Richmond  VA  5  The City of Richmond, Virginia   -    103    103    -   -
N/A  N/A  1701 Market St.  Philadelphia  PA    Parking Operations   -    520    520    -   -
   Vacancy  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    -    -    -   -
      800 East Canal St.  Richmond  VA  5  (Available for Lease)   42,947    -    -    -   -
OFFICE TOTAL/WEIGHTED AVERAGE        99.1% Leased   10,511,027   $44,417   $42,812   $490,409    

 

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Property Leases and Vacancies - Consolidated Portfolio - 3/31/2018

 

Year of Lease
Expiration
  Date of Lease 
Expiration
  Property Location  City  State  Note  Primary Tenant or Guarantor
(19)
  Sq.Ft.
Leased or
Available (1)
   GAAP Rent
as of
3/31/2018
($000) (3)
   Cash Rent
as of 3/31/2018
($000) (2)
   3/31/2018
Debt Balance
($000)
   Debt Maturity
OTHER PROPERTIES                                
Retail                                         
2018  9/30/2018  835 Julian Ave.  Thomasville  NC    Mighty Dollar   23,767    21    21    -   -
   12/31/2018  1150 West Carl Sandburg Dr.  Galesburg  IL    Kmart   94,970    72    2    104   07/2018
      12080 Carmel Mountain Rd.  San Diego  CA    Kmart   107,210    188    3    118   07/2018
      21082 Pioneer Plaza Dr.  Watertown  NY    Kmart   120,727    120    4    174   07/2018
      255 Northgate Dr.  Manteca  CA    Kmart   107,489    139    4    185   07/2018
      97 Seneca Trail  Fairlea  WV    Kmart   90,933    87    3    122   07/2018
2019  6/30/2019  1600 East 23rd St.  Chattanooga  TN    K-VA-T   42,130    33    33    -   -
2023  2/28/2023  733 East Main St.  Jefferson  NC    Delhaize   34,555    39    40    -   -
   7/1/2023  1053 Mineral Springs Rd.  Paris  TN    Kroger   31,170    40    40    -   -
2024  3/31/2024  B.E.C. 45th St./Lee Blvd.  Lawton  OK    Safeway   30,757    51    46    -   -
N/A  Vacancy  5104 North Franklin Rd.  Lawrence  IN    (Available for Lease)   35,786    -    -    -   -
      832 N. Westover Blvd .  Albany  GA    (Available for Lease)   45,554    -    -    -   -
Specialty                                    -   -
2029  1/31/2029  175 Holt Garrison Pkwy.  Danville  VA    Home Depot   -    54    65    -   -
2043  2/28/2043  1237 W. Sherman Ave.  Vineland  NJ    Encompass Health   39,287    290    290    -   -
2048  12/31/2048  30 Light St.  Baltimore  MD    30 Charm City   -    75    75    -   -
2055  1/31/2055  499 Derbyshire Dr.  Venice  FL    Littlestone Brotherhood   31,180    477    333    -   -
2112  8/31/2112  201-215 N. Charles St.  Baltimore  MD    201 NC Leasehold   -    68    68    -   -
Multi-tenant (4)(8)(14)                              -   -
   Various  11511 Luna Rd.  Farmers Branch  TX  4 (90%)  IBM   181,072    642    303    -   -
   Various  1311 Broadfield Blvd.  Houston  TX  4 (35%)  Saipem   155,407    176    -    -   -
   Various  13430 North Black Canyon Fwy.  Phoenix  AZ  4 (65%)  Multi-Tenant   138,940    211    389    -   -
   Various  1460 Tobias Gadson Blvd.  Charleston  SC  4 (64%)  Vallen Distribution   50,076    97    97    6,959   02/2021
   Various  2210 Enterprise Dr.  Florence  SC  4 (21%)  Caliber Funding   176,557    173    192    -   -
   Various  6050 Dana Way  Antioch  TN  4 (97%)  Multi-Tenant   674,528    566    558    -   -
   Various  King St./1042 Fort St. Mall  Honolulu  HI  4 (48%)  Multi-Tenant   77,459    168    168    -   -
OTHER TOTAL/WEIGHTED AVERAGE        79.7% Leased   2,289,554   $3,787   $2,734   $7,662    
                                          
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE        97.2% Leased   48,138,768   $93,318   $88,966   $690,074    

 

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Property Leases and Vacancies - Non-consolidated Portfolio - 3/31/2018

 

Year of
Lease
Expiration
  Date of Lease
Expiration
  Property Location  City  State  Note  Primary Tenant or
Guarantor (19)
  Sq.Ft.
Leased or
Available (1)
   LXP %
Ownership
   GAAP
Rent
as of
3/31/2018
($000) (3)
   Cash
Rent
as of
3/31/2018
($000) (2)
   3/31/2018
Debt Balance
($000)
   Debt Maturity (21)
NON-CONSOLIDATED PROPERTIES                                     
2029  1/31/2029  18839 McKay Blvd.  Humble  TX    RehabCare Group   55,646    15%   683    638    13,799   05/2019
2033  10/31/2033  607 & 611 Lumsden Professional Ct.  Brandon  FL  20  BluePearl   8,500    15%   51    51    -   -
      4525 Ulmerton Rd.  Clearwater  FL  20  BluePearl   3,000    15%   31    31    -   -
      455 Abernathy Rd.  Atlanta  GA  20  BluePearl   32,000    15%   302    253    -   -
      820 Frontage Rd.  Northfield  IL  20  BluePearl   14,000    15%   120    120    -   -
      4126 Packard Rd.  Ann Arbor  MI  20  BluePearl   3,500    15%   14    14    -   -
      29080 Inkster Rd.  Southfield  MI  20  BluePearl   38,000    15%   318    284    18,791   11/2018
2036  8/31/2036  2203 North Westgreen Blvd.  Katy  TX    British Schools   274,000    25%   1,610    1,610    49,752   12/2022
N/A  Vacancy  100 Gander Way  Palm Beach Gardens  FL  22, 23  (Available for Lease)   120,000    25%   -    -    13,957   03/2018
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE        78.1% Leased   548,646        $3,129   $3,001   $96,299    

 

Footnotes

1Square footage leased or available.
2Three months ended 3/31/2018 cash rent. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
3Three months ended 3/31/2018 GAAP rent, excluding termination income.
4Percent represents % leased as of 3/31/2018.
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.
13Litton Loan Servicing LP lease expired 8/31/2018; however, new tenant (Total System Services Inc.) lease expires 8/31/2021.
14The multi-tenanted properties incurred approximately $0.9 million in operating expenses, net for the three months ended 3/31/2018.
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.
17Subsequent to 3/31/2018, Nissan Motor Acceptance Corporation leased the space through 3/31/2023.
18Lease restricts certain disclosures. Guarantor is investment grade.
19See Annual Report and other applicable disclosures for actual tenant names.
20All mortgage notes are cross-collateralized and cross-defaulted.
21Interest rates range from 3.7% to 5.1% at 3/31/2018.
22Tenant declared bankruptcy and rejected the lease.
23Loan is in default.

 

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LEXINGTON REALTY TRUST

Select Credit Metrics Summary (1)

 

   3/31/2018 
     
Adjusted Company FFO Payout Ratio   71.0%
      
Unencumbered Assets   $3.4 billion 
      
Unencumbered NOI   74.4%
      
(Debt + Preferred) / Gross Assets   45.4%
      
Debt/Gross Assets   43.3%
      
Secured Debt / Gross Assets   14.8%
      
Net Debt / Adjusted EBITDA   6.1x
      
(Net Debt + Preferred) / Adjusted EBITDA   6.5x
      
Credit Facilities Availability (2)   $405.0 million 
      
Unsecured Debt / Unencumbered NOI   5.6x

 

Footnotes

(1)See reconciliations of non-GAAP measures in this document. Lexington believes these credit metrics provide investors with additional information to evaluate its liquidity and performance.
(2)Subject to covenant compliance.

 

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LEXINGTON REALTY TRUST

FINANCIAL COVENANTS (1)

Corporate Level Debt

 

    Must be:   3/31/2018
Bank Loans:        
         
Maximum Leverage   < 60%   47.2%
Fixed Charge Coverage   > 1.5x   2.8x
Recourse Secured Indebtedness Ratio   < 10% cap value   0.0%
Secured Indebtedness Ratio   < 45%   16.9%
Unsecured Debt Service Coverage   > 2.0x   5.8x
Unencumbered Leverage   < 60%   38.2%
         
Bonds:        
         
Debt to Total Assets   < 60%   44.2%
Secured Debt to Total Assets   < 40%   15.1%
Debt Service Coverage   > 1.5x   4.1x
Unencumbered Assets to Unsecured Debt   > 150%   266.5%

 

Footnotes

(1)The following is a summary of the key financial covenants for Lexington's credit facility and term loans and senior notes, as defined and calculated per the terms of the credit facility and term loans and senior notes, as applicable. These calculations are presented to show Lexington's compliance with such covenants only and are not measures of Lexington's liquidity or performance.

 

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LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

3/31/2018

 

Property  Footnotes  Debt
Balance
($000)
   Interest
Rate
(%)
   Maturity (a)  Current