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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): November 6, 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 November 6, 2018, we issued a press release announcing our financial results for the quarter ended September 30, 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 November 6, 2018, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, Third Quarter 2018,” a copy of which is furnished herewith as Exhibit 99.1.

 

Also on November 6, 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

 

99.1Quarterly Supplemental Information, Third Quarter 2018.
99.2November 6, 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: November 6, 2018 By: /s/ Patrick Carroll
    Patrick Carroll
    Chief Financial Officer

 

  

 

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Section 2: EX-99.1 (EXHIBIT 99.1)

 

Exhibit 99.1

 

 

  

 

 

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

September 30, 2018

 

Table of Contents

 

Section   Page
     
Third Quarter 2018 Earnings Press Release   3
     
Portfolio Data    
Investment / Capital Recycling Summary   14
Financing Summary   15
Leasing Summary   16
Other Revenue Data   18
Portfolio Detail by Asset Class   20
Portfolio Composition   21
Components of Net Asset Value   22
Top Markets   23
Single-Tenant Office Markets   24
Tenant Industry Diversification   25
Top 10 Tenants or Guarantors   26
Lease Rollover Schedules – GAAP Basis   27
Property Leases and Vacancies   29
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 THIRD QUARTER 2018 RESULTS

 

New York, NY - November 6, 2018 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the third quarter ended September 30, 2018.

 

Third Quarter 2018 Highlights

 

Generated Net Income attributable to common shareholders of $216.2 million, or $0.90 per diluted common share.
Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $58.2 million, or $0.24 per diluted common share.
Disposed of 21 office assets to a newly-formed joint venture for an aggregate gross disposition price of $725.8 million and acquired a 20% interest in the joint venture for an aggregate cost of $53.7 million.
Sold seven additional non-industrial properties for an aggregate gross sale price of $113.7 million.
Acquired three industrial properties for an aggregate cost of $71.1 million.
Repurchased and retired 945,880 common shares at an average price of $8.08 per share.
Repaid $195 million, net under its unsecured revolving credit facility and repaid $151 million of its 2020 term loan.
Completed 867,000 square feet of new leases and lease extensions with portfolio 96.8% leased at quarter end.

 

Subsequent Events

 

Repaid $149 million of remaining balance of its 2020 term loan.
Repurchased and retired 2,681,215 common shares at an average price of $8.06 per share and increased repurchase authorization by 10.0 million common shares.
Sold an office property for a gross sale price of $16.0 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. GAAP net income is different than taxable income.

 

T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented, “Our repositioning efforts during the third quarter led to the successful disposition of $839 million of non-industrial assets, which included a $726 million office portfolio sold to a newly-formed joint venture. Disposition and reinvestment initiatives this year have increased industrial revenues to over 60% of our overall portfolio while significantly reducing our office exposure. During the quarter, we acquired $71 million of high-quality industrial assets, retired $346 million of corporate debt and repurchased and retired 0.9 million common shares. We are extremely pleased with our third quarter execution, and, as we look ahead, we remain committed to disposing of non-industrial assets so our portfolio consists of primarily single-tenant, net-leased industrial assets.”

 

3

 

 

FINANCIAL RESULTS

 

Revenues

 

For the quarter ended September 30, 2018, total gross revenues were $100.0 million, compared with total gross revenues of $97.7 million for the quarter ended September 30, 2017. The increase was primarily attributable to revenue generated from 2018 and 2017 property acquisitions and new leases, partially offset by property sales and lease expirations.

 

Net Income Attributable to Common Shareholders

 

For the quarter ended September 30, 2018, net income attributable to common shareholders was $216.2 million, or $0.90 per diluted share, compared with net income attributable to common shareholders for the quarter ended September 30, 2017 of $3.9 million, or $0.02 per diluted share. The change between periods relates primarily to the timing of gains on sales and impairments recognized on real estate, including the gains on sales of 21 office assets during the quarter ended September 30, 2018.

 

Adjusted Company FFO

 

For the quarter ended September 30, 2018, Lexington generated Adjusted Company FFO of $58.2 million, or $0.24 per diluted share, compared to Adjusted Company FFO for the quarter ended September 30, 2017 of $60.7 million, or $0.25 per diluted share.

 

Dividends/Distributions

 

As previously announced, during the third quarter of 2018, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended September 30, 2018 of $0.1775 per common share/unit, which was paid on October 15, 2018 to common shareholders/unitholders of record as of September 28, 2018. Lexington previously declared two cash dividends of $0.812 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarters ended September 30, 2018 and December 31, 2018 which are expected to be paid on November 15, 2018 and February 15, 2019, respectively, to Series C Preferred Shareholders of record as of October 31, 2018 and January 31, 2019, respectively.

 

TRANSACTION ACTIVITY

 

ACQUISITION TRANSACTIONS

 

Primary Tenant  Location  Sq. Ft.   Property Type  Initial Basis
($000)
   Approximate
Lease Term
(Yrs)
Wal-Mart  Spartanburg, SC   341,660   Industrial  $27,632   6
UNIS  Pasadena, TX   257,835   Industrial   23,868   5
Teasdale Foods  Carrollton, TX   356,855   Industrial   19,564   7
       956,350      $71,064    

 

The above were acquired at aggregate weighted-average GAAP and cash capitalization rates of 6.1% and 5.6%, respectively.

 

4

 

 

PROPERTY DISPOSITIONS

 

Primary Tenant  Location  Property Type  Gross
Disposition
Price
($000)
   Annualized
Net Income(1)
($000)
   Annualized
NOI(1)
($000)
   Month of
Disposition
  %
Leased
 
United HealthCare(2)  San Antonio, TX  Office  $27,650   $1,814   $2,149   July   100.0%
Kmart  Galesburg, IL  Other   100    294    11   July   100.0%
Encompass Health  Vineland, NJ  Other   20,200    1,173    1,176   July   100.0%
Gavilon Group  Omaha, NE  Office   46,250    3,309    2,998   August   100.0%
K-VA-T Food Stores  Chattanooga, TN  Other   1,100    103    130   August   100.0%
Nextel Communications  Hampton, VA  Office   10,375    548    1,162   August   100.0%
Orange Business Services  Herndon, VA  Office   8,000    1,060    1,867   August   100.0%
         $113,675   $8,301   $9,493         

 

JOINT VENTURE DISPOSITION - 21 PROPERTIES

 

Primary Tenant  Location  Property Type  Gross
Disposition
Price (1)
($000)
   Annualized
Net Income(1)
($000)
   Annualized
NOI(1)
($000)
   Month of
Disposition
  %
Leased
 
Various(3)  Various  Office  $725,800   $28,582   $58,967   August   98.6%

 

(1)Quarterly period prior to sale; excluding impairment charges, annualized.
(2)$3.2 million of the sale price placed into escrow to fund future tenant allowances.
(3)Properties sold/contributed to newly-formed joint venture. Lexington acquired a 20% interest in the joint venture for $53.7 million.

 

These dispositions resulted in aggregate gains on sales of $202.4 million.

 

LEASING 

 

   LEASE EXTENSIONS                  
                      
   Location      Primary Tenant(1)   Prior
Term
  Lease
Expiration Date
 Sq. Ft.  
   Office                    
1  Meridian   ID   T-Mobile   06/2019  06/2026   77,484  
2  Rockaway(2)   NJ   Atlantic Health   12/2029  12/2031   92,326  
3  Glendale   AZ   Honeywell   07/2019  07/2024   252,300  
4  Columbus   IN   Cummins   07/2019  07/2024   390,100  
4  Total office lease extensions                  812,210  

 

   NEW LEASES                
                    
   Location           Lease
Expiration Date
  Sq. Ft. 
   Office/Multi-Tenant                 
1  Arlington  TX  N/A     10/2021   4,979 
2  Houston  TX  Pulte Homes     09/2027   20,978 
3  Phoenix  AZ  Valor IT     07/2025   28,710 
3  Total new office leases               54,667 
                     
7  TOTAL NEW AND EXTENDED LEASES               866,877 

 

(1)Leases greater than 10,000 square feet.
(2)Property sold to newly-formed joint venture.

 

As of September 30, 2018, Lexington's portfolio was 96.8% leased.

 

5

 

 

BALANCE SHEET/CAPITAL MARKETS

 

In the third quarter of 2018, Lexington repurchased and retired 945,880 common shares at an average price of $8.08 per share under its repurchase authorization announced on July 2, 2015 in the amount of 10.0 million common shares. As of September 30, 2018, there were approximately 4.7 million common shares remaining to be repurchased under the authorization. Subsequent to quarter end, Lexington repurchased and retired 2,681,215 common shares at an average price of $8.06 per share bringing the total common shares repurchased in 2018 to 4,552,870 at an average price of $8.04 per share. In addition, subsequent to quarter end, Lexington's Board of Trustees increased the amount of common shares available for repurchase by 10.0 million common shares. As a result, there are 12,046,218 common shares available for repurchase as of November 6, 2018.

 

Also, in the third quarter, Lexington repaid $195 million, net, under its unsecured revolving credit facility and ended the quarter with no amounts outstanding. In addition, Lexington repaid $151 million of the 2020 term loan and satisfied an aggregate of $110.1 million of non-recourse mortgage debt, including debt encumbering assets sold to the newly-formed joint venture.

 

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 $0.90 to $0.92.

 

Additionally, Lexington now estimates that its Adjusted Company FFO for the year ended December 31, 2018 is expected to be within a range of $0.93 to $0.95 per diluted common share, which is an increase from its previous guidance of $0.92 to $0.94 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

 

THIRD QUARTER 2018 CONFERENCE CALL

 

Lexington will host a conference call today, November 6, 2018, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended September 30, 2018. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through February 5, 2019, 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 10125219. 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 industrial 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 September 30,   Nine months ended September 30, 
   2018   2017   2018   2017 
Gross revenues:                    
Rental  $91,815   $89,704   $283,986   $265,923 
Tenant reimbursements   8,143    7,985    24,102    23,549 
Total gross revenues   99,958    97,689    308,088    289,472 
Expense applicable to revenues:                    
Depreciation and amortization   (37,716)   (43,495)   (129,693)   (128,706)
Property operating   (10,678)   (11,694)   (33,061)   (36,784)
General and administrative   (7,482)   (7,963)   (23,899)   (25,561)
Litigation reserve       (2,050)       (2,050)
Non-operating income   766    1,005    1,666    4,997 
Interest and amortization expense   (21,159)   (18,887)   (63,224)   (57,828)
Debt satisfaction gains (charges), net   (2,228)   2,424    (2,228)   2,378 
Impairment charges and loan loss   (2,542)   (21,986)   (90,860)   (43,577)
Gains on sales of properties   202,371    10,645    239,577    55,078 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities   221,290    5,688    206,366    57,419 
Provision for income taxes   (444)   (375)   (1,326)   (1,174)
Equity in earnings (losses) of non-consolidated entities   4    283    192    (1,064)
Net income   220,850    5,596    205,232    55,181 
Less net income attributable to noncontrolling interests   (2,834)   (55)   (3,225)   (448)
Net income attributable to Lexington Realty Trust shareholders   218,016    5,541    202,007    54,733 
Dividends attributable to preferred shares – Series C   (1,573)   (1,573)   (4,718)   (4,718)
Allocation to participating securities   (253)   (52)   (279)   (183)
Net income attributable to common shareholders  $216,190   $3,916   $197,010   $49,832 
                     
Net income attributable to common shareholders - per common share basic  $0.91   $0.02   $0.83   $0.21 
Weighted-average common shares outstanding – basic   237,354,669    237,989,098    237,577,198    237,632,572 
                     
Net income attributable to common shareholders - per common share diluted  $0.90   $0.02   $0.83   $0.21 
Weighted-average common shares outstanding – diluted   246,058,298    241,702,715    241,660,588    241,442,227 

 

9

 

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   September 30, 2018   December 31, 2017 
Assets:          
Real estate, at cost  $3,005,959   $3,936,459 
Real estate - intangible assets   418,268    599,091 
    3,424,227    4,535,550 
Less: accumulated depreciation and amortization   934,096    1,225,650 
Real estate, net   2,490,131    3,309,900 
Assets held for sale   134,744    2,827 
Cash and cash equivalents   128,444    107,762 
Restricted cash   263,543    4,394 
Investment in and advances to non-consolidated entities   70,879    17,476 
Deferred expenses, net   15,211    31,693 
Rent receivable – current   3,584    5,450 
Rent receivable – deferred   54,551    52,769 
Other assets   10,853    20,749 
Total assets  $3,171,940   $3,553,020 
           
Liabilities and Equity:          
Liabilities:          
Mortgages and notes payable, net  $585,369   $689,810 
Revolving credit facility borrowings       160,000 
Term loans payable, net   447,099    596,663 
Senior notes payable, net   495,825    495,198 
Trust preferred securities, net   127,271    127,196 
Dividends payable   48,384    49,504 
Liabilities held for sale   1,446     
Accounts payable and other liabilities   29,239    38,644 
Accrued interest payable   10,234    5,378 
Deferred revenue - including below market leases, net   19,163    33,182 
Prepaid rent   10,909    16,610 
Total liabilities   1,774,939    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, 238,946,145 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively   24    24 
Additional paid-in-capital   2,803,581    2,818,520 
Accumulated distributions in excess of net income   (1,518,669)   (1,589,724)
Accumulated other comprehensive income   652    1,065 
Total shareholders’ equity   1,379,604    1,323,901 
Noncontrolling interests   17,397    16,934 
Total equity   1,397,001    1,340,835 
Total liabilities and equity  $3,171,940   $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   Nine Months Ended 
   September 30,   September 30, 
   2018   2017   2018   2017 
EARNINGS PER SHARE:                
                 
Basic:                    
Net income attributable to common shareholders  $216,190   $3,916   $197,010   $49,832 
                     
Weighted-average number of common shares outstanding - basic   237,354,669    237,989,098    237,577,198    237,632,572 
                     
Net income attributable to common shareholders - per common share basic  $0.91   $0.02   $0.83   $0.21 
                     
Diluted:                    
Net income attributable to common shareholders - basic  $216,190   $3,916   $197,010   $49,832 
Impact of assumed conversions   4,159    (173)   2,505    (192)
Net income attributable to common shareholders  $220,349   $3,743   $199,515   $49,640 
                     
Weighted-average common shares outstanding - basic   237,354,669    237,989,098    237,577,198    237,632,572 
Effect of dilutive securities:                    
Unvested share-based payment awards and options   382,956    66,748    463,922    95,788 
Preferred shares - Series C   4,710,570             
Operating partnership units   3,610,103    3,646,869    3,619,468    3,713,867 
Weighted-average common shares outstanding - diluted   246,058,298    241,702,715    241,660,588    241,442,227 
                     
Net income attributable to common shareholders - per common share diluted  $0.90   $0.02   $0.83   $0.21 

 

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   Nine Months Ended 
   September 30,   September 30, 
   2018   2017   2018   2017 
FUNDS FROM OPERATIONS:                    
Basic and Diluted:                    
Net income attributable to common shareholders  $216,190   $3,916   $197,010   $49,832 
Adjustments:                    
Depreciation and amortization   37,063    42,015    126,442    124,633 
Impairment charges - real estate, including non-consolidated entities   2,542    21,986    90,860    41,795 
Noncontrolling interests - OP units   2,586    (173)   2,506    (192)
Amortization of leasing commissions   653    1,480    3,251    4,073 
Joint venture and noncontrolling interest adjustment   980    259    1,496    864 
Gains on sales of properties, including non-consolidated entities and net of tax   (202,242)   (10,645)   (239,448)   (56,530)
FFO available to common shareholders and unitholders - basic   57,772    58,838    182,117    164,475 
Preferred dividends   1,573    1,573    4,718    4,718 
Amount allocated to participating securities   253    52    279    183 
FFO available to all equityholders and unitholders - diluted   59,598    60,463    187,114    169,376 
Litigation reserve       2,050        2,050 
Debt satisfaction charges, net   2,228    (2,424)   2,228    (2,378)
Loan loss               5,294 
Other(1)   (3,613)   612    (6,733)   1,100 
Adjusted Company FFO available to all equityholders and unitholders - diluted   58,213    60,701    182,609    175,442 
                     
FUNDS AVAILABLE FOR DISTRIBUTION:                    
Adjustments:                    
Straight-line adjustments   (5,367)   (4,002)   (16,246)   (12,552)
Lease incentives   404    515    1,459    1,456 
Amortization of above/below market leases   89    320    313    1,180 
Lease termination payments, net   (308)   (142)   (925)   (437)
Non-cash interest, net   1,031    795    3,355    1,447 
Non-cash charges, net   1,635    2,066    5,199    6,199 
Tenant improvements   (69)   (4,072)   (6,663)   (10,067)
Lease costs   (1,273)   (2,228)   (3,074)   (5,284)
Company Funds Available for Distribution  $54,355   $53,953   $166,027   $157,384 
                     
Per Common Share and Unit Amounts                    
Basic:                    
FFO  $0.24   $0.24   $0.76   $0.68 
                     
Diluted:                    
FFO  $0.24   $0.24   $0.76   $0.69 
Adjusted Company FFO  $0.24   $0.25   $0.74   $0.71 
                     
Basic:                    
Weighted-average common shares outstanding - basic EPS   237,354,669    237,989,098    237,577,198    237,632,572 
Operating partnership units(2)   3,610,103    3,646,869    3,619,468    3,713,867 
Weighted-average common shares outstanding - basic FFO   240,964,772    241,635,967    241,196,666    241,346,439 
                     
Diluted:                    
Weighted-average common shares outstanding - diluted EPS   246,058,298    241,702,715    241,660,588    241,442,227 
Unvested share-based payment awards and options       655,228        650,348 
Preferred shares - Series C       4,710,570    4,710,570    4,710,570 
Weighted-average common shares outstanding - diluted FFO   246,058,298    247,068,513    246,371,158    246,803,145 

 

(1)"Other" primarily consisted of the acceleration of below-market lease intangible accretion in 2018 and transaction related costs in 2017.
(2)Includes OP units other than OP units held by Lexington.

 

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)  $0.90   $0.92 
Depreciation and amortization   0.69    0.69 
Impact of capital transactions   (0.66)   (0.66)
Estimated Adjusted Company FFO per diluted common share  $0.93   $0.95 

 

(1)Assumes all convertible securities are dilutive.

 

13

 

 

LEXINGTON REALTY TRUST

2018 Third Quarter Investment / Capital Recycling Summary 

 

PROPERTY INVESTMENTS

 

   Primary Tenant 

 

Location

  Square Feet (Approx.)   Property Type  Initial Basis ($000)   Month Closed  Primary
Lease
Expiration
 
1  Wal-Mart  Spartanburg  SC   342,000   Industrial  $27,632   August  07/2024 
2  UNIS  Pasadena  TX   258,000   Industrial   23,868   August  08/2023 
3  Teasdale Foods  Carrollton  TX   357,000   Industrial   19,564   September  03/2025 
                              
                              
3  TOTAL PROPERTY INVESTMENTS        957,000      $71,064        

 

CAPITAL RECYCLING

 

PROPERTY DISPOSITIONS

 

  

   Primary Tenant  Location  Property Type  Gross
Disposition Price
($000)
   Annualized Net
Income ($000) (1)
   Annualized
NOI
($000)(1)(2)
   Month of
Disposition
  % Leased  Gross
Disposition
Price PSF
 
1  United HealthCare (3)  San Antonio  TX  Office  $27,650   $1,814   $2,149   July   100%  $194.04 
2  Kmart  Galesburg  IL  Other   100    294    11   July   100%   1.05 
3  Encompass Health  Vineland  NJ  Other   20,200    1,173    1,176   July   100%   514.16 
4  Gavilon Group  Omaha  NE  Office   46,250    3,309    2,998   August   100%   361.87 
5  K-VA-T Food Stores  Chattanooga  TN  Other   1,100    103    130   August   100%   26.11 
6  Nextel Communications  Hampton  VA  Office   10,375    548    1,162   August   100%   103.10 
7  Orange Business Services  Herndon  VA  Office   8,000    1,060    1,867   August   100%   60.32 
                                         
7  TOTAL PROPERTY DISPOSITIONS  $113,675   $8,301   $9,493              

 

JOINT VENTURE DISPOSITION - 21 PROPERTIES

 

 

 

   Primary Tenant  Location  Property Type  Gross
Disposition Price
($000)
   Annualized Net
Income ($000) (1)
   Annualized
NOI
($000)(1)(2)
   Month of
Disposition
  % Leased  Gross
Disposition
Price PSF
 
     Various (4)    Various       Office    $ 725,800     $ 28,582     $ 58,967     August   98.6 %   $ 189.83  

 

Footnotes

(1)Quarterly period prior to sale; excluding impairment charges, annualized.
(2)See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(3)$3.2 million of the sale price placed into escrow to fund potential future tenant allowances.
(4)Properties sold/contributed to newly-formed joint venture. Lexington acquired a 20% interest in the joint venture for $53.7 million.

 

14

 

 

LEXINGTON REALTY TRUST

2018 Third Quarter Financing Summary 

 

DEBT RETIRED 

 

Location  Primary Tenant  Property Type  Face /
Satisfaction
($000)
   Fixed Rate  Maturity
Date
Consolidated Mortgage Debt:                
Erwin, NY  Corning  Industrial  $6,708   5.910%  10/2018
Charlotte, NC (1)  AvidXchange  Office   37,400   5.298%  01/2033
Charlotte, NC (1)  AvidXchange  Office   8,500   5.000%  12/2022
Richmond, VA (1)  McGuireWoods  Office   57,500   5.191%  02/2031
                  
         $110,108       

 

CORPORATE LEVEL FINANCING         
   Quarterly Activity, Net
($000)
  Rate  Maturity Date
Revolving Credit Facility  $          195,000 satisfaction  LIBOR plus 100 bps  08/2019
2020 Term Loan  $          151,000 satisfaction  LIBOR plus 110 bps  08/2020

 

Footnotes

(1)Assumed by newly-formed joint venture.

 

15

 

 

LEXINGTON REALTY TRUST

2018 Third Quarter Leasing Summary

 

LEASE EXTENSIONS

 

    Tenant (3)  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)(2)
   Prior
Cash Rent
Per
Annum
($000)(2)
 
                                       
    Office                                         
                                              
1   T-Mobile   Meridian    ID   06/2019  06/2026   77,484   $1,439   $1,105   $1,356   $1,510 
2   Atlantic Health (4)   Rockaway    NJ   12/2029  12/2031   92,326    1,345    1,345    1,562    1,562 
3   Honeywell   Glendale    AZ   07/2019  07/2024   252,300    2,099    1,902    2,054    2,014 
4   Cummins   Columbus    IN   07/2019  07/2024   390,100    4,868    4,540    4,925    4,762 
                                              
4   Total office lease extensions                   812,210   $9,751   $8,892   $9,897   $9,848 
                                              
                 `                            
4   TOTAL EXTENDED LEASES                   812,210   $9,751   $8,892   $9,897   $9,848 

 

NEW LEASES

 

   Tenant (3)  Location   Lease
Expiration
 Date
  Sq. Ft.   New GAAP
Rent Per
Annum
($000)(1)
   New Cash
Rent Per
Annum
($000)(1)(2)
 
   Office / Multi-tenant Office                            
1  N/A   Arlington    TX   10/2021   4,979   $85   $85 
2  Pulte Homes   Houston    TX   09/2027   20,978    257    280 
3  Valor IT   Phoenix    AZ   07/2025   28,710    536    577 
                                
3  Total office new leases                54,667   $878   $942 
                                
3  TOTAL NEW LEASES                54,667   $878   $942 
                                
7  TOTAL NEW AND EXTENDED LEASES                866,877   $10,629   $10,839 

 

16

 

 

LEXINGTON REALTY TRUST

2018 Third Quarter Leasing Summary (Continued) 

 

NEW VACANCY (5)

 

Tenant  Location   Lease
Expiration
 Date
  Sq. Ft.   2017
GAAP
Rent
($000)
   2017
Cash Rent
($000)(2)
 
Industrial                       
Plastic Omnium  Duncan    SC   09/2018   221,833   $1,025   $1,025 

 

Footnotes

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

 

17

 

 

LEXINGTON REALTY TRUST

Other Revenue Data

9/30/2018

($000)

 

Other Revenue Data

 

   GAAP Rent 
Asset Class  Nine months ended 
   9/30/18 (1)(4)   9/30/18
Percentage
   9/30/17
Percentage
 
Industrial  $135,999    60.7%   41.9%
Office   75,661    33.7%   53.0%
Other               
Multi-tenant   8,370    3.7%   2.8%
Retail   2,203    1.0%   1.2%
Specialty   2,023    0.9%   1.1%
   $224,256    100.0%   100.0%

 

   GAAP Rent 
Credit Ratings (2)  Nine months ended 
   9/30/18 (1)(4)   9/30/18
Percentage
   9/30/17
Percentage
 
Investment Grade  $100,263    44.7%   39.4%
Non-Investment Grade   39,728    17.7%   15.9%
Unrated   84,265    37.6%   44.7%
   $224,256    100.0%   100.0%

 

Weighted-Average Lease Term - Cash Basis   As of 9/30/18    As of 9/30/17 
    8.5 years    9.1 years 

 

Rent Estimates for Current Assets

 

Year  GAAP (3)(4)   Cash (3)   Difference 
2018 - remaining  $75,736   $71,174   $(4,562)
2019   283,843    272,504    (11,339)

 

Footnotes

(1)Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.
(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 9/30/2018, and (3) no properties are sold or acquired after 9/30/2018.
(4)Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

 

18

 

 

LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

9/30/2018

($000)

 

Same-Store NOI (1)

 

   Nine months ended September 30, 
   2018   2017 
Total Cash Rent  $182,008   $181,482 
Tenant Reimbursements   12,611    10,848 
Property Operating Expenses   (20,891)   (19,366)
Same-Store NOI  $173,728   $172,964 
           
Change in Same-Store NOI   0.4%     

 

Same-Store Percent Leased (2)  As of 9/30/18   As of 9/30/17 
    95.6%   98.5%

 

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 nine months consolidated cash rents for single-tenant leases (properties greater than 70% leased) owned as of September 30, 2018. Excludes parking operations and rents from prior tenants.

 

19

 

 

LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

9/30/2018

($000, except square footage)

 

Asset Class  YE 2015   YE 2016   YE 2017   Q3 2018 
                 
Industrial                    
% of ABR (1)   30.5%   39.7%   43.6%   60.7%
LTL (5)   47.4%   50.8%   47.1%   41.6%
STL (6)   52.6%   49.2%   52.9%   58.4%
Leased   99.6%   99.9%   99.9%   99.9%
Wtd. Avg. Lease Term (2)   10.1    10.4    10.6    9.8 
Mortgage Debt  $292,293   $240,790   $193,529   $207,787 
% Investment Grade (1)   27.9%   26.2%   28.9%   36.2%
Square Feet   25,693,585    27,476,653    35,396,894    38,196,782 
                     
Office                    
% of ABR (1)   49.6%   52.9%   51.8%   33.7%
LTL (5)   23.2%   26.9%   30.1%   21.4%
STL (6)   76.8%   73.1%   69.9%   78.6%
Leased   99.6%   99.6%   99.2%   99.4%
Wtd. Avg. Lease Term (2)   7.2    7.2    7.7    5.9 
Mortgage Debt  $329,696   $490,948   $495,842   $375,942 
% Investment Grade (1)   48.0%   48.1%   52.0%   65.1%
Square Feet   12,847,877    11,569,940    10,881,264    5,886,614 
                     
Other                    
% of ABR (1)(7)   19.9%   7.4%   4.6%   5.6%
LTL (5)   74.7%   20.9%   26.1%   19.0%
STL (6)   25.3%   79.1%   73.9%   81.0%
Leased   64.7%   60.5%   81.8%   53.1%
Wtd. Avg. Lease Term (2)(3)   15.3    9.5    10.1    10.6 
Mortgage Debt  $269,336   $13,435   $7,697   $6,906 
% Investment Grade (1)   8.4%   16.0%   12.9%   14.2%
Square Feet   3,728,561    4,277,704    2,335,904    3,100,018 
                     
Loans Receivable  $95,871   $94,210   $-   $- 
Construction in progress (4)  $103,954   $111,771   $4,219   $1,212 

 

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.
(7)Excludes the acceleration of below-market lease intangible accretion on three Kmart assets in Q3 2018.

 

20

 

 

LEXINGTON REALTY TRUST

Portfolio Composition

9/30/2018

 

As a Percent of Gross Book Value (1)

 

 

Portfolio Composition (2) (3)

 

 

Footnotes

(1)Based on gross book value of real estate assets and real estate under construction as of 9/30/2018; excludes held for sale assets.
(2)Based on respective period GAAP rent, excluding termination income.
(3)Excludes the acceleration of below-market lease intangible accretion on three Kmart assets in Q3 2018.

 

21

 

 

LEXINGTON REALTY TRUST

Components of Net Asset Value

9/30/2018

($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 nine month net operating income (NOI) (1)    
Industrial  $121,180 
Office   63,994 
Other     
Multi-Tenant   2,188 
Specialty   1,629 
Retail   478 
Total Net Operating Income  $189,469 
      
Lexington's share of non-consolidated nine month NOI (1)     
NNN-OFFICE JV     
Office  $845 
OTHER JV     
Office  $323 
Other   1,363 
   $1,686 
Other income     
Advisory fees  $701 
      
      
In service assets not fairly valued by capitalized NOI method (1)     
Wholly-owned assets acquired in 2018  $204,554 
Wholly-owned assets less than 70% leased  $41,292 
      
Add other assets:     
Assets held for sale  $134,744 
Construction in progress   1,212 
Developable land   6,357 
Cash and cash equivalents   128,444 
Restricted cash   263,543 
Accounts receivable, net   3,584 
Other assets   10,853 
Total other assets  $548,737 
      
Liabilities:     
Corporate level debt (face amount)  $1,078,120 
Mortgages and notes payable (face amount)   590,635 
Dividends payable   48,384 
Liabilities held for sale   1,446 
Accounts payable, accrued expenses and other liabilities   50,382 
Preferred stock, at liquidation value   96,770 
Lexington's share of non-consolidated mortgages   110,430 
Total deductions  $1,976,167 
      
Common shares & OP units at 9/30/2018   242,556,248 

 

Footnotes

(1)NOI for the existing property portfolio at September 30, 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.

 

22

 

  

LEXINGTON REALTY TRUST

Top Markets

9/30/2018

 

   Core Based Statistical Area (2)  Percent of
GAAP Rent as of
9/30/18 (1)(4)
 
1  Houston-Sugar Land-Baytown, TX   10.1%
2  Memphis, TN-MS-AR   7.5%
3  Kansas City, MO-KS   5.1%
4  Detroit-Warren-Livonia, MI   4.6%
5  Kennewick-Pasco-Richland, WA   4.4%
6  New York-Northern New Jersey-Long Island, NY-NJ-PA   3.8%
7  Nashville-Davidson-Murfreesboro-Franklin, TN   3.2%
8  Dallas-Fort Worth-Arlington, TX   2.9%
9  Philadelphia-Camden-Wilmington, PA-NJ-DE-MD   2.7%
10  Atlanta-Sandy Springs-Marietta, GA   2.3%
11  San Jose-Sunnyvale-Santa Clara, CA   2.2%
12  Jackson, MS   2.1%
13  Indianapolis-Carmel, IN   1.6%
14  Phoenix-Mesa-Scottsdale, AZ   1.6%
15  Columbus, IN   1.5%
16  Greenville-Anderson-Mauldin, SC   1.5%
17  Champaign-Urbana, IL   1.4%
18  Columbus, OH   1.3%
19  Charlotte-Concord-Gastonia, NC-SC   1.3%
20  Jackson, TN   1.3%
   Total Top Markets (3)   62.7%

 

Footnotes

(1)Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.
(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.
(4)Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

 

23

 

 

LEXINGTON REALTY TRUST

Single-Tenant Office Markets (1)(2)

9/30/2018

 

 

Footnotes

(1)Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated single-tenant office properties owned as of 9/30/2018.
(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.

 

24

 

 

LEXINGTON REALTY TRUST

Tenant Industry Diversification (1)(2)

9/30/2018

 

 

 

Footnotes

(1)Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.
(2)Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

 

25

 

 

LEXINGTON REALTY TRUST

Top 10 Tenants or Guarantors

9/30/2018

 

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
9/30/2018
($000) (1)(4)
   Percent of
GAAP Rent as
of 9/30/2018
($000) (1) (2) (4)
 
The Dow Chemical Company   1    664,100    1.4%  $11,137    5.0%
Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)   1    456,412    1.0%   9,850    4.4%
Nissan North America, Inc.   2    2,971,000    6.3%   9,620    4.3%
FedEx Corporation / Federal Express Corporation   2    661,616    1.4%   9,111    4.1%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)   7    2,053,359    4.4%   7,456    3.3%
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation   2    476,123    1.0%   6,080    2.7%
United States of America   2    329,229    0.7%   6,028    2.7%
Undisclosed (3)   3    1,090,383    2.3%   5,355    2.4%
Watco Dock & Rail III, L.L.C. (Watco Companies, L.L.C.)   1    132,449    0.3%   5,080    2.3%
Xerox Corporation   1    202,000    0.4%   4,981    2.2%
    22    9,036,671    19.2%  $74,698    33.3%

 

Footnotes

(1)Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.
(2)Total shown may differ from detailed amounts due to rounding.
(3)Tenant is a domestic subsidiary of an international automaker.
(4)Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

 

26

 

 

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis

9/30/2018

($000)

 

Year  Number
of
Leases
Expiring
   GAAP
Rent as of
9/30/2018
   Percent of
GAAP Rent
as of
9/30/2018
   Percent of
GAAP Rent
as of
9/30/2017
 
2018 - remaining   4   $5,814    2.7%   3.4%
2019   15    18,255    8.5%   9.3%
2020   12    13,254    6.2%   5.2%
2021   14    17,539    8.2%   6.4%
2022   4    4,655    2.2%   3.8%
2023   9    7,332    3.4%   4.0%
2024   16    18,867    8.8%   5.7%
2025   12    10,622    5.0%   9.2%
2026   9    10,543    4.9%   5.5%
2027   11    23,867    11.1%   7.5%
Thereafter   35    83,634    39.0%   37.9%
                     
Total (1)   141   $214,382    100.0%     

 

 

Footnotes

(1)Total shown may differ from detailed amounts due to rounding and does not include multi-tenant properties, parking operations, lease termination income and the acceleration of below-market lease intangible accretion on three Kmart assets.

 

27

 

 

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Properties GAAP Basis

9/30/2018

($000)

 

Year  Number
of
Leases
Expiring
   GAAP
Rent as of
9/30/2018
   Percent of
GAAP
Rent
as of
9/30/2018
 
2018 - remaining   34   $6,734    3.0%
2019   24    18,782    8.5%
2020   19    13,376    6.1%
2021   20    19,844    9.0%
2022   4    4,655    2.1%
2023   10    7,332    3.3%
2024   18    19,178    8.7%
2025   15    11,989    5.4%
2026   9    10,543    4.8%
2027   12    23,867    10.8%
Thereafter   37    84,515    38.3%
                
Total (1)   202   $220,815    100.0%

 

 

Footnotes

(1)Total shown may differ from detailed amounts due to rounding and does not include parking operations, lease termination income and the acceleration of below-market lease intangible accretion on three Kmart assets.

 

28

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

 

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
9/30/2018
($000) (3)
    Cash
Rent
as of
9/30/2018
($000) (2)
    9/30/2018
Debt Balance
($000)
    Debt
Maturity
 
INDUSTRIAL PROPERTIES                                                                  
2018   12/31/2018   1133 Poplar Creek Rd.   Henderson     NC           Staples     196,946       652       665       -      -  
        2935 Van Vactor Dr.   Plymouth     IN           Bay Valley Foods     300,500       642       642       -      -  
        749 Southrock Dr.   Rockford     IL           Jacobson Warehouse     150,000       353       405       -      -  
2019   10/17/2019   10345 Philipp Pkwy.   Streetsboro     OH           L'Oreal USA     649,250       1,958       2,113       16,688      09/2019  
    12/31/2019   191 Arrowhead Dr.   Hebron     OH           Owens Corning     250,410       427       427       -      -  
        200 Arrowhead Dr.   Hebron     OH           Owens Corning     400,522       683       683       -      -  
        2415 US Hwy. 78 East   Moody     AL           Michelin     595,346       1,056       1,087       -      -  
2020   1/31/2020   101 Michelin Dr.   Laurens     SC           Michelin     1,164,000       2,586       2,586       -      -  
    5/31/2020   359 Gateway Dr.   Lavonia     GA           TI Automotive     133,221       714       900       6,740      12/2020  
    6/30/2020   1650-1654 Williams Rd.   Columbus     OH           ODW Logistics     772,450       1,008       1,010       -      -  
        3102 Queen Palm Dr.   Tampa     FL           Time     229,605       926       1,010       -      -  
    9/30/2020   3350 Miac Cove Rd.   Memphis     TN           Mimeo.com     107,400       314       336       -      -  
    12/19/2020   1901 Ragu Dr.   Owensboro     KY       6     Unilever     443,380       1,119       966       -      -  
    12/31/2020   2203 Sherrill Dr.   Statesville     NC           Geodis America     639,800       1,870       1,847       -      -  
2021   3/31/2021   2455 Premier Row   Orlando     FL           Walgreen Co.     205,016       589       381       -      -  
    5/31/2021   291 Park Center Dr.   Winchester     VA           Kraft Heinz     344,700       1,065       1,058       -      -  
    6/30/2021   11624 S. Distribution Cv.   Olive Branch     MS           Hamilton Beach     1,170,218       1,812       1,447       -      -  
    9/30/2021   3820 Micro Dr.   Millington     TN           Ingram Micro     701,819       1,359       1,405       -      -  
    10/25/2021   6938 Elm Valley Dr.   Kalamazoo     MI           Dana     150,945       1,310       1,520       -      -  
    11/30/2021   2880 Kenny Biggs Rd.   Lumberton     NC           Quickie Manufacturing     423,280       1,017       1,077       -      -  
    12/31/2021   3686 South Central Ave.   Rockford     IL           Pierce Packaging     93,000       237       237       -      -  
2022   3/31/2022   5417 Campus Dr.   Shreveport     LA           Tire Rack     257,849       1,007       1,052       -      -  
2023   2/28/2023   7670 Hacks Cross Rd.   Olive Branch     MS           MAHLE Industries     268,104       679       668       -      -  
    8/31/2023   10535 Red Bluff Rd.   Pasadena     TX           Unis     257,835       139       135       -      -  
    12/31/2023   120 Southeast Pkwy. Dr.   Franklin     TN           United Technologies     289,330       553       553       -      -  
2024   1/31/2024   1285 W. State Road 32   Lebanon     IN           Continental Tire     741,880       1,711       1,657       -      -  
    3/31/2024   1520 Lauderdale Memorial Hwy.   Cleveland     TN           General Electric     851,370       1,926       1,958       -      -  
    4/30/2024   113 Wells St.   North Berwick     ME           United Technologies     993,685       1,349       1,471       883     04/2019  
    5/31/2024   901 East Bingen Point Way   Bingen     WA           Boeing     124,539       1,977       1,951       -      -  
    7/31/2024   5795 North Blackstock Road   Spartanburg     SC           Wal-Mart     341,660       184       179       -      -  
    9/30/2024  

1621 Veterans Memorial

Pkwy. E

  Lafayette     IN           Caterpillar     309,400       911       903       -      -  

 

29

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018 

 

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
9/30/2018
($000) (3)
    Cash
Rent
as of
9/30/2018
($000) (2)
    9/30/2018
Debt Balance
($000)
    Debt
Maturity
 
2024   10/31/2024   43955 Plymouth Oaks Blvd.   Plymouth     MI           Tower Automotive     311,612       1,193       1,137       -      -  
        2115 East Belt Line Rd.   Carrollton     TX           L.E. Klein     58,202       12       9       -      -  
2025   3/31/2025   2115 East Belt Line Rd.   Carrollton     TX       13     Teasdale     298,653       66       53       -      -  
    6/30/2025   10000 Business Blvd.   Dry Ridge     KY           Dana     336,350       1,009       1,009       -      -  
        301 Bill Bryan Rd.   Hopkinsville     KY           Metalsa / Dana     424,904       1,266       1,266       -      -  
        4010 Airpark Dr.   Owensboro     KY           Metalsa / Dana     211,598       906       906       -      -  
        730 North Black Branch Rd.   Elizabethtown     KY           Metalsa / Dana     167,770       403       403       -      -  
        750 North Black Branch Rd.   Elizabethtown     KY           Metalsa / Dana     539,592       2,129       2,129       -      -  
    7/14/2025   590 Ecology Ln.   Chester     SC           Boral Limited     420,597       1,314       1,760       6,764      08/2025  
    7/31/2025   7005 Cochran Rd.   Glenwillow     OH           Royal Appliance     458,000       1,546       1,576       -      -  
    12/31/2025   1700 47th Ave North   Minneapolis     MN           Owens Corning     18,620       412       413       -      -  
2026   3/30/2026   121 Technology Dr.   Durham     NH       15     Heidelberg     500,500       1,903       2,479       -      -  
    3/31/2026   633 Garrett Pkwy.   Lewisburg     TN           Calsonic Kansei     310,000       971       901       -      -  
    6/30/2026   351 Chamber Dr.   Chillicothe     OH           Kitchen Collection     475,218       869       854       -      -  
    9/30/2026   900 Industrial Blvd.   Crossville     TN           Dana     222,200       433       433       -      -  
        3931 Lakeview Corporate Dr.   Edwardsville     IL           Amazon.com     769,500       2,015       1,905       -      -  
    10/31/2026   5001 Greenwood Rd.   Shreveport     LA           Libbey     646,000       1,624       1,645       -      -  
    11/30/2026   250 Rittenhouse Cir.   Bristol     PA           Estée Lauder     241,977       860       868       -      -  
        736 Addison Rd.   Erwin     NY           Corning     408,000       1,038       1,044       -      -  
2027   1/31/2027   27200 West 157th St.   New Century     KS           Amazon.com     446,500       930       801       -      -  
    2/28/2027   554 Nissan Pkwy.   Canton     MS           Nissan     1,466,000       4,700       4,507       -      -  
    4/30/2027   16407 Applewhite Rd.   San Antonio     TX       18     Undisclosed / HVAC     849,275       2,245       2,071       -      -  
        200 Sam Griffin Rd.   Smyrna     TN           Nissan     1,505,000       4,920       4,682       -     -  
    6/30/2027   1501 Nolan Ryan Expy.   Arlington     TX           Arrow Electronics     74,739       305       296       -      -  
    9/30/2027   1550 Hwy 302   Byhalia     MS           McCormick     615,600       1,843       1,310       -      -  
    10/31/2027   201 James Lawrence Rd.   Jackson     TN           Kellogg     1,062,055       2,958       2,766       -      -  
    12/31/2027   10590 Hamilton Ave.   Cincinnati     OH           Hillman Group     264,598       610       610       -      -  
2028   1/31/2028   490 Westridge Pkwy.   McDonough     GA           Georgia-Pacific     1,121,120       2,802       2,481       -      -  
    3/31/2028   29-01-Borden Ave./29-10 Hunters Point Ave.   Long Island City     NY           FedEx     140,330       3,851       3,756       40,862      03/2028  
    8/31/2028   1420 Greenwood Rd.   McDonough     GA           United States Cold Storage     296,972       1,627       1,601       -      -  
    9/30/2028   904 Industrial Rd.   Marshall     MI           Tenneco     246,508       512       631       -      -  

 

30

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018 

 

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
9/30/2018
($000) (3)
    Cash
Rent
as of
9/30/2018
($000) (2)
    9/30/2018
Debt Balance
($000)
    Debt
Maturity
 
2029   7/31/2029   8500 Nail Rd.   Olive Branch     MS           Sephora     716,080       1,307       852       -      -  
    11/24/2029   318 Pappy Dunn Blvd.   Anniston     AL           IAC Group     276,782       1,305       1,233       -      -  
2030   3/31/2030   549 Wingo Rd.   Byhalia     MS           Asics     855,878       3,291       3,066       -      -  
    5/31/2030   3301 Stagecoach Rd. NE   Thomson     GA           Hollander     208,000       697       650       -      -  
        4015 Lakeview Corporate Drive   Edwardsville     IL           Spectrum     1,017,780       917       720       -      -  
2031   10/31/2031   1020 W. Airport Rd.   Romeoville     IL           ARYZTA     188,166       2,690       2,530       -      -  
    12/18/2031   80 Tyson Dr.   Winchester     VA       16     Undisclosed / Automaker     400,400       1,776       1,550       -      -  
2032   4/30/2032   13930 Pike Rd.   Missouri City     TX           Vulcan     -       1,592       1,464       -      -  
    8/24/2032   16950 Pine Dr.   Romulus     MI       16     Undisclosed / Automaker     500,023       1,926       1,795       -     -  
    10/31/2032   27255 SW 95th Ave.   Wilsonville     OR           Pacific Natural Foods     508,277       2,340       1,933       -     -  
        26700 Bunert Road   Warren     MI           Lipari     260,243       2,912       2,572       25,850     11/2032  
2034   9/30/2034   5625 North Sloan Ln.   North Las Vegas     NV           Nicholas     180,235       1,917       1,703       -     -  
    10/31/2034   1001 Innovation Rd.   Rantoul     IL           Vista Outdoor     813,126       3,147       2,766       -     -  
2035   3/31/2035   13863 Industrial Rd.   Houston     TX           Spitzer     187,800       1,826       1,585       -     -  
        7007 F.M. 362 Rd.   Brookshire     TX           Spitzer     262,095       1,433       1,243       -     -  
    6/30/2035   111 West Oakview Pkwy.   Oak Creek     WI           Stella & Chewy's     164,007       1,574       1,406       -     -  
    8/31/2035   2800 Polar Way   Richland     WA       9     Preferred Freezer     456,412       9,850       8,440       110,000      01/2026  
    10/22/2035   2860 Clark St.   Detroit     MI       16     Undisclosed / Automaker     189,960       1,653       1,653       -     -  
2036   5/31/2036   671 Washburn Switch Rd.   Shelby     NC           Clearwater Paper     673,425       2,089       1,823       -     -  
    6/30/2036   100 Ryobi Drive   Anderson     SC       23     One World Technologies     1,327,022       3,335       2,819       -     -  
2037   3/31/2037   4005 E I-30   Grand Prairie     TX           O'Neal Industries     215,000       1,404       1,169       -     -  
2038   3/31/2038   13901/14035 Industrial Rd.   Houston     TX           Watco     132,449       5,080       4,349       -      -  
2042   5/31/2042   4801 North Park Dr.   Opelika     AL           Golden State Enterprises     165,493       2,533       1,978       -     -  
N/A   Vacancy   3350 Miac Cove Rd.   Memphis     TN           (Available for Lease)     32,679       -       -       -     -  
INDUSTRIAL TOTAL/WEIGHTED AVERAGE                       99.9% Leased     38,196,782     $ 135,999     $ 127,930     $ 207,787        

 

31

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018 

 

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
9/30/2018
($000) (3)
    Cash
Rent
as of
9/30/2018
($000) (2)
    9/30/2018
Debt Balance
($000)
    Debt
Maturity
 
OFFICE PROPERTIES                                                              
2018   12/22/2018   5200 Metcalf Ave.   Overland Park     KS           Swiss Re     320,198       4,167       4,152       32,297     05/2019  
2019   1/31/2019   820 Gears Rd.   Houston     TX           Ricoh     78,895       885       884       -      -  
    2/28/2019   10475 Crosspoint Blvd.   Indianapolis     IN           DMC Insurance     3,764       54       54       -      -  
    4/1/2019   9201 Stateline Rd.   Kansas City     MO           Swiss Re     155,925       1,913       1,913       15,388     05/2019  
    6/19/2019   3965 Airways Blvd.   Memphis     TN       23     Federal Express     521,286       5,260       5,326       -      -  
    10/31/2019   10475 Crosspoint Blvd.   Indianapolis     IN           John Wiley     123,047       1,701       1,758       -      -  
        9601 Renner Blvd.   Lenexa     KS           T-Mobile USA     77,484       857       1,137       8,265     12/2019  
    12/31/2019   2800 Waterford Lake Dr.   Midlothian     VA       22     Alstom Power     99,057       1,638       1,769       -      -  
2020   2/14/2020   5600 Broken Sound Blvd.   Boca Raton     FL           Oce - USA Holding     143,290       1,683       1,875       18,862     02/2020  
    5/31/2020   2401 Cherahala Blvd.   Knoxville     TN           CaremarkPCS     59,748       580       588       -      -  
    6/30/2020   3711 San Gabriel   Mission     TX           T-Mobile West     75,016       742       745       -      -  
    8/31/2020   133 First Park Dr.   Oakland     ME           T-Mobile USA     78,610       860       1,129       8,202     10/2020  
    9/30/2020   9200 South Park Center Loop   Orlando     FL       24     ECMC Group     59,927       852       893       -      -  
2021   1/31/2021   1701 Market St.   Philadelphia     PA           Morgan Lewis     289,432       3,223       3,378       -      -  
    3/31/2021   1701 Market St.   Philadelphia     PA           Car-Tel     1,220       47       47       -      -  
    6/30/2021   1415 Wyckoff Rd.   Wall     NJ           NJ Natural Gas     157,511       2,830       2,830       8,847     01/2021  
        2050 Roanoke Rd.   Westlake     TX           Charles Schwab     130,199       1,552       1,592       -        
    8/31/2021   3500 North Loop Rd.   McDonough     GA       11     TSYS     62,218       748       1,001       -      -  
    10/31/2021   1401 Nolan Ryan Expy.   Arlington     TX           Butler America Aerospace     4,979       -       -       -      -  
    11/30/2021   29 South Jefferson Rd.   Whippany     NJ           CAE     123,734       1,750       1,959       12,297     11/2021  
2022   5/30/2022   13651 McLearen Rd.   Herndon     VA           United States of America     159,644       2,353       2,415       -      -  
    7/31/2022   1440 E 15th St.   Tucson     AZ           CoxCom     28,591       421       421       -      -  
    10/31/2022   4455 American Way   Baton Rouge     LA           New Cingular Wireless     70,100       874       841       -      -  
2023   6/30/2023   420 Riverport Rd.   Kingsport     TN           Kingsport Power     42,770       141       233       -      -  

 

32

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018 

 

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
9/30/2018
($000) (3)
    Cash
Rent
as of
9/30/2018
($000) (2)
    9/30/2018
Debt Balance
($000)
    Debt
Maturity
 
2023   9/30/2023   1701 Market St.   Philadelphia     PA           CBC Restaurant     8,070       158       168       -      -  
    10/31/2023   3943 Denny Ave.   Pascagoula     MS           Huntington Ingalls     94,841       445       445       -      -  
    12/14/2023   3333 Coyote Hill Rd.   Palo Alto     CA           Xerox     202,000       4,981       5,303       33,624     12/2023  
2024   2/14/2024   1362 Celebration Blvd.   Florence     SC           MED3000     32,000       430       432       -      -  
    5/31/2024   3476 Stateview Blvd.   Fort Mill     SC           Wells Fargo     169,083       1,462       1,436       -      -  
        3480 Stateview Blvd.   Fort Mill     SC           Wells Fargo     169,218       1,519       1,437       -      -  
    7/15/2024   19019 North 59th Ave.   Glendale     AZ           Honeywell     252,300       1,469       1,489       -      -  
    7/31/2024   500 Jackson St.   Columbus     IN           Cummins     390,100       3,405       3,571       8,826     07/2019  
    8/31/2024   10475 Crosspoint Blvd.   Indianapolis     IN           HQ Global Workplaces     14,236       231       231       -        
    10/31/2024   1409 Centerpoint Blvd.   Knoxville     TN       23     Alstom Power     84,404       944       932       -      -  
2025   1/31/2025   1401 Nolan Ryan Expy.   Arlington     TX           Triumph Group     111,409       1,229       1,311       -      -  
    2/28/2025   1401 Nolan Ryan Expy.   Arlington     TX           Infotech Enterprise     13,590       153       158       -      -  
    5/31/2025   1701 Market St.   Philadelphia     PA           TruMark Financial     2,641       189       189       -      -  
2026   6/30/2026   3265 East Goldstone Dr.   Meridian     ID           T-Mobile USA     77,484       830       1,118       8,077     08/2019  
2027   1/31/2027   1701 Market St.   Philadelphia     PA           Drybar     1,975       106       79       -      -  
    10/31/2027   11201 Renner Blvd.   Lenexa     KS           United States of America     169,585       3,675       3,547       32,112     11/2027  
    11/30/2027   1700 Millrace Dr.   Eugene     OR       10, 23, 25     Oregon Research Institute     80,011       1,575       1,374       -      -  
2029   3/31/2029   2800 High Meadow Cir.   Auburn Hills     MI           Faurecia     278,000       2,660       2,461       -      -  
    7/31/2029   2999 Southwest 6th St.   Redmond     OR       12     T-Mobile USA / Consumer Cellular     77,260       1,101       1,337       -      -  
2033   12/31/2033   8555 South River Pkwy.   Tempe     AZ           Versum     95,133       1,327       914       -      -  
2036   10/31/2036   270 Abner Jackson Pkwy.   Lake Jackson     TX           Dow     664,100       11,137       9,279       189,145     10/2036  
N/A   N/A   1701 Market St.   Philadelphia     PA           Parking Operations     -       1,504       1,504       -      -  
    Vacancy   1701 Market St.   Philadelphia     PA           (Available for Lease)     699       -       -       -      -  
        1401 Nolan Ryan Expy.   Arlington     TX           (Available for Lease)     31,830       -       -       -      -  
OFFICE TOTAL/WEIGHTED AVERAGE                       99.4% Leased     5,886,614     $ 75,661     $ 75,655     $ 375,942        

 

33

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018 

 

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

9/30/2018
($000) (3)

   

Cash

Rent
as of

9/30/2018
($000) (2)

    9/30/2018
Debt Balance
($000)
    Debt
Maturity
 
OTHER PROPERTIES                                                                  
Retail                                                                  
2019   1/31/2019   12080 Carmel Mountain Rd.   San Diego     CA       17     Kmart     107,210       5,571       67       -      -  
        21082 Pioneer Plaza Dr.   Watertown     NY       17     Kmart     120,727       994       99       -      -  
        255 Northgate Dr.   Manteca     CA       17, 23     Kmart     107,489       1,941       105       -     -  
        97 Seneca Trail   Fairlea     WV           Kmart     90,933       262       69       -      -  
2023   2/28/2023   733 East Main St.   Jefferson     NC       23     Delhaize     34,555       117       120       -      -  
    7/1/2023   1053 Mineral Springs Rd.   Paris     TN           Kroger     31,170       119       119       -      -  
2024   3/31/2024   B.E.C. 45th St./Lee Blvd.   Lawton     OK           Safeway     30,757       144       139       -      -  
N/A   Vacancy   832 N. Westover Blvd .   Albany     GA           (Available for Lease)     45,554       -       -       -      -  
Specialty                                                                      
2029   1/31/2029   175 Holt Garrison Pkwy.   Danville     VA           Home Depot     -       162       195       -      -  
2048   12/31/2048   30 Light St.   Baltimore     MD           30 Charm City     -       224       224       -      -  
2055   1/31/2055   499 Derbyshire Dr.   Venice     FL           Littlestone Brotherhood     31,180       1,431       1,004       -      -  
2112   8/31/2112   201-215 N. Charles St.   Baltimore     MD           201 NC Leasehold     -       206       206       -      -  
Multi-tenant (4)(8)(14)                                                                  
    Various   50 Tyger River Dr.   Duncan     SC       11     Vacant     221,833       769       769       -     -  
    Various   100 Barnes Rd.   Wallingford     CT       11     Vacant     44,400       254       270       -     -  
    Various   11511 Luna Rd.   Farmers Branch     TX       4 (90%)     IBM     181,072       1,884       1,092       -     -  
    Various   1311 Broadfield Blvd.   Houston     TX       4 (49%)     Saipem     155,407       534       373       -     -  
    Various   13430 North Black Canyon Fwy.   Phoenix     AZ       4 (65%)     Multi-Tenant     138,940       786       1,028       -     -  
    Various   1460 Tobias Gadson Blvd.   Charleston     SC       4 (64%)     Vallen Distribution     50,247       295       295       6,906     02/2021  
    Various   2210 Enterprise Dr.   Florence     SC       4 (21%)     Caliber Funding     176,557       586       625       -     -  
    Various   3456 Meyers Ave.   Memphis     TN       11     Vacant     780,000       1,031       504       -     -  
    Various   6050 Dana Way   Antioch     TN       4 (97%)     Multi-Tenant     674,528       1,725       1,701       -     -  
    Various   King St./1042 Fort St. Mall   Honolulu     HI       4 (48%)     Multi-Tenant     77,459       506       506       -     -  
OTHER TOTAL/WEIGHTED AVERAGE                       53.1% Leased     3,100,018     $ 19,541     $ 9,510     $ 6,906        
                                                                       
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE                   96.8% Leased     47,183,414     $ 231,201     $ 213,095     $ 590,635        

 

34

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018 

 

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
9/30/2018
($000) (3)
   Cash
Rent
as of
9/30/2018
($000) (2)
   9/30/2018
Debt Balance
 ($000)
  

Debt

Maturity (21)

NON-CONSOLIDATED PROPERTIES                                            
NNN OFFICE JV PROPERTIES                                            
2022  12/31/2022  231 N. Martingale Rd.  Schaumburg   IL    7   Career Education Corporation   317,198    20%   396    394    362,800   09/2021
2023  2/28/2023  1315 West Century Dr.  Louisville   CO    7   Rogue Wave Software   20,000    20%   27    27    -   -
   3/31/2023  8900 Freeport Pkwy.  Irving   TX    7   Nissan   268,445    20%   360    325    -   -
2025  2/28/2025  6555 Sierra Dr.  Irving   TX    7   TXU   247,254    20%   326    271    -   -
   3/14/2025  601 & 701 Experian Pkwy.  Allen   TX    7   Experian Holdings   292,700    20%   278    264    -   -
   6/30/2025  2500 Patrick Henry Pkwy.  McDonough   GA    7   Georgia Power   111,911    20%   140    119    -   -
   9/30/2025  10001 Richmond Ave.  Houston   TX    7   Schlumberger   554,385    20%   541    481    -   -
   12/31/2025