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

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

Current Report Pursuant

to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 27, 2019

 

LEXINGTON REALTY TRUST
(Exact name of registrant as specified in its charter)

  

Maryland 1-12386 13-3717318

(State or other jurisdiction

of incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

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

 

 (212) 692-7200

(Registrant's telephone number, including area code)

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Emerging growth company ¨

 

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

 

 

 

 

 

Item 2.02.Results of Operations and Financial Condition.

 

On February 27, 2019, we issued a press release announcing our financial results for the quarter ended December 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 February 27, 2019, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, Fourth Quarter 2018,” a copy of which is furnished herewith as Exhibit 99.1.

 

Also on February 27, 2019, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.2.

 

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

 

Item 9.01.Financial Statements and Exhibits.

 

(d)Exhibits

 

  99.1 Quarterly Supplemental Information, Fourth Quarter 2018.
     
  99.2 February 27, 2019 Conference Call Transcript.

 

 

 

 

SIGNATURES

 

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

 

  Lexington Realty Trust
     
Date: February 28, 2019 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

December 31, 2018

 

Table of Contents

 

Section   Page
     
Fourth Quarter 2018 Earnings Press Release   3
     
Portfolio Data    
Investment / Capital Recycling Summary   15
Financing Summary   16
Leasing Summary   17
Other Revenue Data   19
Portfolio Detail by Asset Class   21
Portfolio Composition   22
Components of Net Asset Value   23
Portfolio Concentration   24
Tenant Industry Diversification   27
Top 15 Tenants or Guarantors   29
Lease Rollover Schedules – GAAP Basis   30
Property Leases and Vacancies   32
Select Credit Metrics Summary   40
Financial Covenants   41
Mortgages and Notes Payable   42
Debt Maturity Schedule   43
Selected Balance Sheet Account Data   44
Non-GAAP Measures – Definitions   45
Reconciliation of Non-GAAP Measures   47
Investor Information   51

 

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, including dividend declarations to achieve a $0.41 per share annualized dividend, (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, 2019, (3) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction on the terms described herein or at all, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any new legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington’s web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington’s future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects,” may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to revise those forward-looking statements to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized.

 

 

 

 

 

LEXINGTON REALTY TRUST

TRADED: NYSE: LXP

ONE PENN PLAZA, SUITE 4015

NEW YORK, NY 10119-4015

 

FOR IMMEDIATE RELEASE

 

LEXINGTON REALTY TRUST REPORTS FOURTH QUARTER 2018 RESULTS

 

New York, NY - February 27, 2019 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the fourth quarter and year ended December 31, 2018.

 

Fourth Quarter 2018 Highlights 

 

·Generated Net Income attributable to common shareholders of $23.8 million, or $0.10 per diluted common share.
·Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $53.7 million, or $0.22 per diluted common share.
·Acquired two industrial properties for an aggregate cost of $107.7 million.
·Disposed of nine non-industrial properties for an aggregate gross sale price of $93.3 million.
·Repurchased and retired 4.0 million common shares at an average price of $8.07 per share and increased repurchase authorization by 10.0 million common shares.
·Repaid remaining 2020 term loan balance of $149.0 million.
·Completed 452,000 square feet of new leases and lease extensions.

 

Full Year 2018 Highlights

 

·Generated Net Income attributable to common shareholders of $220.8 million, or $0.93 per diluted common share.
·Generated Adjusted Company FFO of $236.3 million, or $0.96 per diluted common share.
·Increased total gross book value and total rental revenue attributable to industrial assets from 49.3% and 44.3%, respectively, to 71.1% and 65.4%, respectively.
·Acquired eight industrial properties for an aggregate cost of $315.6 million.
·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.
·Disposed of 25 additional consolidated properties for an aggregate gross sale price of $335.3 million.
·Repurchased and retired 5.9 million common shares at an average price of $8.05 per share.
·Repaid $160.0 million, net under its unsecured revolving credit facility and fully repaid its $300 million 2020 term loan.
·Retired an aggregate of $118.0 million in property non-recourse mortgage debt, including debt encumbering assets sold to the joint venture above.
·Completed 1.9 million square feet of new leases and lease extensions.

 

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.

 

3 

 

 

T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented “Through our targeted disposition and investment efforts in 2018,  we increased our industrial exposure to 71% of our total gross book value at year end compared to 49% at year-end 2017.  We were very active in our share buyback plan during the fourth quarter, bringing our total 2018 share repurchases to almost six million shares at an average price of $8.05 per share.

 

We remain focused on transitioning to a single-tenant net-leased industrial REIT, and our disposition plan contemplates the sale of primarily office and other non-core assets with this objective in mind. Proceeds from sales, available cash, and low leverage will provide further capital to fund industrial purchases and build-to-suit opportunities.

 

In connection with the repositioning of our portfolio and growth plans going forward, last year we announced that in 2019 we would revise our distribution policy in order to retain and reinvest as much of our cash flow as possible. We believe this is a prudent course which will enhance our earnings growth and net asset value per share over time. Accordingly, we announced today a new annualized dividend rate of $0.41 per common share.”

 

FINANCIAL RESULTS

 

Revenues

 

For the quarter ended December 31, 2018, total gross revenues were $87.3 million, compared with total gross revenues of $102.2 million for the quarter ended December 31, 2017. The decrease was primarily attributable to a decrease in revenue due to property sales, partially offset by 2018 and 2017 property acquisitions.

 

Net Income Attributable to Common Shareholders

 

For the quarter ended December 31, 2018, net income attributable to common shareholders was $23.8 million, or $0.10 per diluted share, compared with net income attributable to common shareholders for the quarter ended December 31, 2017 of $29.2 million, or $0.12 per diluted share.

 

Adjusted Company FFO

 

For the quarter ended December 31, 2018, Lexington generated Adjusted Company FFO of $53.7 million, or $0.22 per diluted share, compared to Adjusted Company FFO for the quarter ended December 31, 2017 of $63.1 million, or $0.26 per diluted share.

 

Dividends/Distributions

 

As previously announced, during the fourth quarter of 2018, Lexington declared its quarterly common share/unit dividend/distribution for the quarter ended December 31, 2018 of $0.1775 per common share/unit, which was paid on January 15, 2019 to common shareholders/unitholders of record as of December 31, 2018. Lexington previously declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended December 31, 2018, which was paid February 15, 2019 to Series C Preferred shareholders of record as of January 31, 2019.

 

Today, Lexington declared its quarterly common share/unit dividend/distribution for the quarter ended March 31, 2019 in the amount of $0.1025 per common share/unit, which will be paid on April 15, 2019 to common shareholders/unitholders of record as of March 29, 2019. Lexington previously declared a dividend of $0.8125 per share on its Series C Preferred for the quarter ended March 31, 2019, which will be paid on May 15, 2019, to Series C Preferred shareholders of record as of April 30, 2019.

 

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TRANSACTIONS

 

ACQUISITION TRANSACTIONS

 

Primary Tenant(1)   Location   Sq. Ft.
(Approx.)
    Property Type   Initial Basis
($000)
    Approximate
Lease Term 
(Yrs)
Blue Buffalo   Goodyear, AZ     540,349     Industrial   $ 41,372     7
Philip Morris   Chester, VA     1,034,470     Industrial     66,311     12
          1,574,819         $ 107,683      

 

  1. In addition, Lexington acquired a 57-acre parcel of land from a non-consolidated joint venture and leased the parcel to a tenant to develop an industrial property.

 

Including fourth quarter acquisition activity, consolidated 2018 acquisition activity totaled $315.6 million at average GAAP and cash capitalization rates of 6.5% and 5.3%, respectively.

 

PROPERTY DISPOSITIONS

 

Primary Tenant  Location  Property
Type
  Gross
Disposition
Price
($000)
   Annualized
Net Income
(Loss)(1)
($000)
   Annualized
NOI(1)
($000)
   Month of
Disposition
  %
Leased
 
Oregon Research Institute  Eugene, OR  Office  $16,000   $2,098   $1,832   October   100%
Alstom Power  Knoxville, TN  Office   16,000    1,262    1,249   November   100%
Vacant  Manteca, CA  Other   2,700    967    381   November   0%
Delhaize  Jefferson, NC  Other   1,550    156    160   December   100%
Vacant  Wallingford, CT  Office   1,050    (222)   (179)  December   0%
Vacant  Florence, SC  Office   1,838    (320)   325   December   0%
Kingsport Power  Kingsport, TN  Office   3,400    287    310   December   100%
Federal Express  Memphis, TN  Office   50,800    6,844    7,101   December   100%
         $93,338   $11,072   $11,179         

 

1.Quarterly period prior to sale, excluding impairment charges and accelerated below-market lease intangible accretion, annualized.

 

In addition, a vacant retail property in San Diego, California was transferred to its ground owner and Lexington received $4.3 million from the sale of a six-property non-consolidated office portfolio.

 

Including fourth quarter disposition activity, consolidated 2018 property disposition volume totaled $1.1 billion at average GAAP and cash capitalization rates of 8.9% and 8.4%, respectively.

 

As a result of 2018 transactions, Lexington's total gross book value attributable to industrial assets accounts for 71.1% of total consolidated real estate gross book value at December 31, 2018 compared to 49.3% at December 31, 2017. Rental revenue attributable to industrial assets increased to 65.4% of total consolidated rental revenue as of December 31, 2018 from 44.3% as of December 31, 2017.

 

5 

 

  

LEASING

 

During the fourth 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   Carrollton  TX  Teasdale  03/2025  12/2033   298,653 
1   Total industrial lease extensions           298,653 
                      
    Office                 
1   Knoxville  TN  CaremarkPCS  05/2020  05/2027   59,748 
2   Indianapolis  IN  N/A  02/2019  05/2019   3,764 
2   Total office lease extensions           63,512 
                      
3   Total lease extensions           362,165 
                      
    NEW LEASES                 
                      
    Location           Lease
Expiration Date
   Sq. Ft. 
    Office/Multi-Tenant             
1   Phoenix  AZ  Argosy Education     05/2024   27,470 
2   Farmers Branch  TX  N/A     04/2024   2,937 
3   Orlando  FL  CardWorks Servicing     09/2029   59,927 
3   Total new office leases           90,334 
                      
6   TOTAL NEW AND EXTENDED LEASES        452,499 

 

1.Leases greater than 10,000 square feet.

 

As of December 31, 2018, Lexington's portfolio was 95.1% leased.

 

BALANCE SHEET/CAPITAL MARKETS

 

During the fourth quarter, Lexington fully repaid the remaining $149.0 million outstanding on its 2020 term loan and satisfied $7.9 million of non-recourse debt.

 

Also in the fourth quarter, Lexington's Board of Trustees increased the amount of common shares available for repurchase under its repurchase authorization initially announced on July 2, 2015 by 10.0 million common shares. Lexington repurchased and retired 3,979,597 common shares at an average price of $8.07 per share, bringing the total 2018 repurchases to 5,851,252 common shares at an average price of $8.05 per share. Subsequent to December 31, 2018, Lexington repurchased and retired 441,581 common shares at an average price of $8.13 per share. As of February 27, 2019, there were 10,306,255 common shares available for repurchase.

 

Subsequent to December 31, 2018, Lexington replaced its revolving credit facility and the 2021 term loan with a new revolving credit facility and the continuation of the 2021 term loan, which extended the maturity of the revolving credit facility to February 2023 and reduced the applicable margin rates on the revolving credit facility and 2021 term loan.

 

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2019 EARNINGS GUIDANCE

 

Lexington estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2019 will be within an expected range of $1.36 to $1.40. Lexington estimates that its Adjusted Company FFO for the year ended December 31, 2019 will be within an expected range of $0.75 to $0.79 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

 

FOURTH QUARTER 2018 CONFERENCE CALL

 

Lexington will host a conference call today February 27, 2019, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended December 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 May 27, 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 10128738. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

 

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ABOUT LEXINGTON REALTY TRUST

 

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its 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, including dividend declarations to achieve a $0.41 per share annualized dividend, (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, 2019, (3) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (4) the failure to continue to qualify as a REIT, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington has filed with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

 

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

 

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Non-GAAP Financial Measures - Definitions

 

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

 

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

 

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

 

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

 

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

 

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

 

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

 

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

 

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

# # #

 

9 

 

  

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

   Three months ended December 31,   Twelve months ended December 31, 
   2018   2017   2018   2017 
Gross revenues:                    
Rental  $80,745   $93,909   $364,731   $359,832 
Tenant reimbursements   6,506    8,260    30,608    31,809 
Total gross revenues   87,251    102,169    395,339    391,641 
Expense applicable to revenues:                    
Depreciation and amortization   (38,498)   (45,262)   (168,191)   (173,968)
Property operating   (9,614)   (12,410)   (42,675)   (49,194)
General and administrative   (7,763)   (8,597)   (31,662)   (34,158)
Litigation settlement               (2,050)
Non-operating income   1,825    5,381    3,491    10,378 
Interest and amortization expense   (16,656)   (20,055)   (79,880)   (77,883)
Debt satisfaction gains (charges), net   (368)   3,818    (2,596)   6,196 
Impairment charges and loan losses   (4,953)   (1,419)   (95,813)   (44,996)
Gains on sales of properties   13,336    8,350    252,913    63,428 
Income before provision for income taxes and  equity in earnings (losses) of non-consolidated entities   24,560    31,975    230,926    89,394 
Provision for income taxes   (402)   (743)   (1,728)   (1,917)
Equity in earnings (losses) of non-consolidated entities   1,516    216    1,708    (848)
Net income   25,674    31,448    230,906    86,629 
Less net income attributable to noncontrolling interests   (266)   (598)   (3,491)   (1,046)
Net income attributable to Lexington Realty Trust shareholders   25,408    30,850    227,415    85,583 
Dividends attributable to preferred shares – Series C   (1,572)   (1,572)   (6,290)   (6,290)
Allocation to participating securities   (40)   (43)   (287)   (226)
Net income attributable to common shareholders  $23,796   $29,235   $220,838   $79,067 
Net income attributable to common shareholders – per common share basic  $0.10   $0.12   $0.93   $0.33 
Weighted-average common shares outstanding – basic   233,963,608    238,131,814    236,666,375    237,758,408 
Net income attributable to common shareholders – per common share diluted  $0.10   $0.12   $0.93   $0.33 
Weighted-average common shares outstanding – diluted   238,292,912    241,821,194    240,810,990    241,537,837 

 

10 

 

  

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31,

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

 

   2018   2017 
Assets:          
Real estate, at cost  $3,090,134   $3,936,459 
Real estate - intangible assets   419,612    599,091 
    3,509,746    4,535,550 
Less: accumulated depreciation and amortization   954,087    1,225,650 
Real estate, net   2,555,659    3,309,900 
Assets held for sale   63,868    2,827 
Cash and cash equivalents   168,750    107,762 
Restricted cash   8,497    4,394 
Investment in and advances to non-consolidated entities   66,183    17,476 
Deferred expenses, net   15,937    31,693 
Rent receivable – current   3,475    5,450 
Rent receivable – deferred   58,692    52,769 
Other assets   12,779    20,749 
Total assets  $2,953,840   $3,553,020 
           
Liabilities and Equity:          
Liabilities:          
Mortgages and notes payable, net  $570,420   $689,810 
Revolving credit facility borrowings       160,000 
Term loans payable, net   298,733    596,663 
Senior notes payable, net   496,034    495,198 
Trust preferred securities, net   127,296    127,196 
Dividends payable   48,774    49,504 
Liabilities held for sale   386     
Accounts payable and other liabilities   30,790    38,644 
Accrued interest payable   4,523    5,378 
Deferred revenue - including below market leases, net   20,531    33,182 
Prepaid rent   9,675    16,610 
Total liabilities   1,607,162    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, 235,008,554 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively   24    24 
Additional paid-in-capital   2,772,855    2,818,520 
Accumulated distributions in excess of net income   (1,537,100)   (1,589,724)
Accumulated other comprehensive income   76    1,065 
Total shareholders’ equity   1,329,871    1,323,901 
Noncontrolling interests   16,807    16,934 
Total equity   1,346,678    1,340,835 
Total liabilities and equity  $2,953,840   $3,553,020 

 

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

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

 

   Three Months Ended
December 31,
   Twelve Months Ended
December 31,
 
   2018   2017   2018   2017 
EARNINGS PER SHARE:                    
                     
Basic:                    
Net income attributable to common shareholders  $23,796   $29,235   $220,838   $79,067 
                     
Weighted-average common shares outstanding - basic   233,963,608    238,131,814    236,666,375    237,758,408 
                     
Net income attributable to common shareholders - per common share basic  $0.10   $0.12   $0.93   $0.33 
                     
Diluted:                    
Net income attributable to common shareholders - basic  $23,796   $29,235   $220,838   $79,067 
Impact of assumed conversions   21    338    2,528    147 
Income from continuing operations attributable to common shareholders  $23,817   $29,573   $223,366   $79,214 
                     
Weighted-average common shares outstanding - basic   233,963,608    238,131,814    236,666,375    237,758,408 
Effect of dilutive securities:                    
Unvested share-based payment awards and options   723,120    57,731    528,495    86,285 
Operating Partnership Units   3,606,184    3,631,649    3,616,120    3,693,144 
Weighted-average common shares outstanding - diluted   238,292,912    241,821,194    240,810,990    241,537,837 
                     
Net income attributable to common shareholders - per common share diluted  $0.10   $0.12   $0.93   $0.33 

 

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

ADJUSTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION

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

 

   Three Months Ended
December 31,
   Twelve Months Ended
December 31,
 
   2018   2017   2018   2017 
FUNDS FROM OPERATIONS:                    
Basic and Diluted:                    
Net income attributable to common shareholders  $23,796   $29,235   $220,838   $79,067 
Adjustments:                    
Depreciation and amortization   37,819    44,050    164,261    168,683 
Impairment charges - real estate, including non-consolidated entities   4,953    1,419    95,813    43,214 
Noncontrolling interests - OP units   22    339    2,528    147 
Amortization of leasing commissions   679    1,212    3,930    5,285 
Joint venture and noncontrolling interest adjustment   2,567    257    4,063    1,121 
Gains on sales of properties, including non-consolidated entities and net of tax   (14,821)   (8,350)   (254,269)   (64,880)
FFO available to common shareholders and unitholders - basic   55,015    68,162    237,164    232,637 
Preferred dividends   1,572    1,572    6,290    6,290 
Amount allocated to participating securities   40    43    287    226 
FFO available to all equityholders and unitholders - diluted   56,627    69,777    243,741    239,153 
Litigation reserve               2,050 
Debt satisfaction (gains) charges, net, including non-consolidated entities   368    (3,796)   2,596    (6,174)
Impairment loss - loan receivable               5,294 
Unearned contingent acquisition consideration       (3,922)       (3,922)
Other(1)   (3,305)   1,071    (10,038)   2,171 
Adjusted Company FFO available to all equityholders and unitholders - diluted   53,690    63,130    236,299    238,572 
                     
FUNDS AVAILABLE FOR DISTRIBUTION:                    
Adjustments:                    
Straight-line rents   (4,722)   (7,232)   (20,968)   (19,784)
Lease incentives   227    513    1,686    1,969 
Amortization of above/below market leases   (28)   364    285    1,544 
Lease termination payments, net   (309)   (253)   (1,234)   (690)
Non-cash interest, net   854    1,018    4,209    2,465 
Non-cash charges, net   1,611    2,119    6,810    8,318 
Tenant improvements   (1,608)   (1,136)   (8,271)   (11,203)
Lease costs   (1,448)   (1,242)   (4,522)   (6,526)
Joint venture and non-controlling interest adjustment   (449)       (505)    
Company Funds Available for Distribution  $47,818   $57,281   $213,789   $214,665 
                     
Per Common Share and Unit Amounts                    
Basic:                    
FFO  $0.23   $0.28   $0.99   $0.96 
Diluted:                    
FFO  $0.23   $0.28   $0.99   $0.97 
Adjusted Company FFO  $0.22   $0.26   $0.96   $0.97 
                     
Weighted-Average Common Shares                    
Basic:                    
Weighted-average common shares outstanding - basic EPS   233,963,608    238,131,814    236,666,375    237,758,408 
Operating partnership units(2)   3,606,184    3,631,649    3,616,120    3,693,144 
Weighted-average common shares outstanding - basic FFO   237,569,792    241,763,463    240,282,495    241,451,552 
                     
Diluted:                    
Weighted-average common shares outstanding - diluted EPS   238,292,912    241,821,194    240,810,990    241,537,837 
Unvested share-based payment awards       713,351        666,127 
Preferred shares - Series C   4,710,570    4,710,570    4,710,570    4,710,570 
Weighted-average common shares outstanding - diluted FFO   243,003,482    247,245,115    245,521,560    246,914,534 

 

(1)"Other" primarily consisted of the acceleration of below-market lease intangible accretion in 2018 and transaction related costs in 2017 and 2016.

 

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

 

13 

 

  

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

 

2019 EARNINGS GUIDANCE

 

   Twelve Months Ended
December 31, 2019
 
   Range 
Estimated:        
Net income attributable to common shareholders per diluted common share(1)  $1.36   $1.40 
Depreciation and amortization   0.56    0.56 
Impact of capital transactions   (1.17)   (1.17)
Estimated Adjusted Company FFO per diluted common share  $0.75   $0.79 

 

(1)Assumes all convertible securities are dilutive.

 

14 

 

 

LEXINGTON REALTY TRUST

2018 Fourth Quarter Investments / Capital Recycling Summary

 

PROPERTY INVESTMENTS      
                        
   Primary Tenant  Location  Square Feet (Approx.)   Property Type  Initial Basis ($000)   Month Closed 

Primary

Lease
Expiration

1  Blue Buffalo  Goodyear  AZ   540,000   Industrial  $41,372   November  04/2026
2  Philip Morris  Chester  VA   1,034,000   Industrial   66,311   December  06/2030
                             
2  TOTAL PROPERTY INVESTMENTS (1)   1,574,000      $107,683       

 

CAPITAL RECYCLING

 

               
PROPERTY DISPOSITIONS                             
   Primary Tenant  Location  Property Type  Gross
Disposition Price
($000)
   Annualized Net
Income (Loss)
($000) (2)
   Annualized
NOI
($000)(2)(3)
   Month of
Disposition
  % Leased   Gross
Disposition
Price PSF
 
1  Oregon Research Institute  Eugene OR  Office  $16,000   $2,098   $1,832   October   100%  $199.97 
2  Alstom Power  Knoxville TN  Office   16,000    1,262    1,249   November   100%   189.56 
3  Vacant (4)  Manteca CA  Other   2,700    967    381   November   0%   25.12 
4  Delhaize  Jefferson NC  Other   1,550    156    160   December   100%   44.86 
5  Vacant  Wallingford CT  Office   1,050    (222)   (179)  December   0%   23.65 
6  Vacant  Florence SC  Office   1,838    (320)   325   December   0%   10.41 
7  Kingsport Power  Kingsport TN  Office   3,400    287    310   December   100%   79.49 
8  Federal Express  Memphis TN  Office   50,800    6,844    7,101   December   100%   97.45 
                                        
8  TOTAL PROPERTY DISPOSITIONS  (5)  $93,338   $11,072   $11,179              

 

NON-CONSOLIDATED DISPOSITION                             
                                  
    Primary Tenant  Location  Property Type  Gross
Disposition Price
($000)
   Annualized Net
Income ($000) (2)
   Annualized
NOI
($000)(2)(3)
   Month of
Disposition
  % Leased   Gross
Disposition
Price PSF
 
6   BluePearl (6)  Various  Office  $46,100   $1,025   $2,870   December   100.0%  $465.66 

  

Footnotes

(1)In addition, Lexington acquired a 57-acre parcel of land from a non-consolidated joint venture and leased the parcel to a tenant to develop an industrial property.
(2)Quarterly period prior to sale; excluding impairment charges, annualized.
(3)See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(4)Annualized net income excludes the acceleration of below-market lease intangible accretion.
(5)Also, Lexington's property owner subsidiary transferred its leasehold interest in a vacant retail property in San Diego, CA to the ground owner.
(6)Lexington had a 15% interest in the joint venture and received $4.3 million in net proceeds at closing.

 

15 

 

 

LEXINGTON REALTY TRUST

2018 Fourth Quarter Financing Summary

 

DEBT RETIRED                
                 
Location  Primary Tenant  Property Type  Face /
Satisfaction
($000)
   Fixed Rate  Maturity
Date
                 
Consolidated Mortgage Debt                 
Meridian, ID  T-Mobile USA  Office  $7,892   6.010%  08/2019
Non-Consolidated Mortgage Debt (1)                 
Various  BluePearl  Office  $18,791   4.010%  11/2018
                  
CORPORATE LEVEL FINANCING (2)                 
                  
   Quarterly Activity
($000)
  Rate  Maturity Date       
2020 Term Loan (3)   $     149,000 satisfaction  LIBOR plus 110 bps   08/2020      

 

Footnotes

(1)Lexington had a 15% interest in the joint venture.
(2)In December 2018, Lexington amended its credit facility to remove its operating partnership, Lepercq Corporate Income Fund L.P. ("LCIF"), as a borrower.
(3)Fully satisfied.

 

16 

 

  

LEXINGTON REALTY TRUST

2018 Fourth 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)
 
   Industrial                                     
1  Teasdale  Carrollton  TX  03/2025  12/2033   298,653   $1,297   $1,180   $1,179   $1,131 
                                         
1  Total industrial lease extensions            298,653   $1,297   $1,180   $1,179   $1,131 
                                         
   Office                                     
                                         
1  CaremarkPCS  Knoxville  TN  05/2020  05/2027   59,748   $845   $773   $822   $807 
2  N/A  Indianapolis  IN  02/2019  05/2019   3,764    75    72    75    72 
                                         
2  Total office lease extensions            63,512   $920   $845   $897   $879 
                                         
3  TOTAL EXTENDED LEASES            362,165   $2,217   $2,025   $2,076   $2,010 

 

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  Argosy Education  Phoenix  AZ  05/2024  27,470   $494   $494 
2  N/A  Farmers Branch  TX  04/2024  2,937    46    47 
3  CardWorks  Orlando  FL  09/2029  59,927    881    1,019 
                           
3  Total office new leases           90,334   $1,421   $1,560 
                           
6  TOTAL NEW AND EXTENDED LEASES     452,499   $3,638   $3,636 

 

17 

 

 

LEXINGTON REALTY TRUST 2018

Fourth Quarter Leasing Summary (Continued)

 

NEW VACANCY (4)                     
   Former Tenant  Location  Lease
Expiration
 Date
  Sq. Ft.   2018 GAAP
Rent ($000)
    2018 Cash
Rent
($000)(2)
 
   Industrial                  
1  Staples  Henderson  NC  12/2018   196,946   $869   $886 
2  Bay Valley Foods  Plymouth  IN  12/2018   300,500    856    856 
2  Total industrial vacancy      497,446   $1,725   $1,742 
                            
   Office                  
1  Swiss Re  Overland Park  KS  12/2018   320,198   $5,419   $5,401 
1  Total office vacancy      320,198   $5,419   $5,401 
                            
   Other                  
1  Kmart (5)(6)  Watertown  NY  01/2019   120,727   $525   $112 
2  Kmart (5)   Fairlea  WV  01/2019   90,933    297    79 
2  Total other vacancy      211,660   $822   $191 
                            
5  TOTAL VACANCY      1,029,304   $7,966   $7,334 

  

Footnotes

(1)Assumes twelve months rent from the later of 1/1/19 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)Excludes multi-tenant properties, disposed properties and non-consolidated investments.
(5)Tenant declared bankruptcy in October 2018 and rejected the lease.
(6)Excludes the acceleration of below-market lease intangible accretion.

 

18 

 

 

LEXINGTON REALTY TRUST

Other Revenue Data

12/31/2018

($000)

 

Other Revenue Data

 

   GAAP  Rent 
Asset Class  Twelve months ended 
  
12/31/18 (1)(4)
   12/31/18
Percentage
  

12/31/17

Percentage (5)

 
Industrial  $187,904    65.4%   44.3%
Office   94,818    33.0%   53.3%
Other   4,605    1.6%   2.4%
   $287,327    100.0%   100.0%

 

   GAAP  Rent 
Credit Ratings  (2)  Twelve months ended 
  
12/31/18 (1)(4)
   12/31/18
Percentage
   12/31/17
Percentage
 
Investment Grade  $112,242    39.1%   40.1%
Non-Investment Grade   54,716    19.0%   15.5%
Unrated   120,369    41.9%   44.4%
   $287,327    100.0%   100.0%

 

Weighted-Average Lease Term - Cash Basis  As of 12/31/18  As of 12/31/17
   8.9 years  9.1 years

 

Rent Estimates for Current Assets
         
Year  GAAP  (3)   Cash  (3)   Difference 
2019  $284,640   $270,557   $(14,083)
2020   264,419    253,660    (10,759)

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2018.
(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 12/31/2018, and (3) no properties are sold or acquired after 12/31/2018.
(4)Excludes the acceleration of below-market lease intangible accretion on one Kmart asset.
(5)Multi-tenant properties reclassified to individual property types.

 

19 

 

  

LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

12/31/2018

($000)

 

Same-Store NOI (1)

 

   Twelve months ended December 31, 
   2018   2017   2016 
Total Cash Rent  $202,233   $202,690   $201,862 
Tenant Reimbursements   12,993    11,233    11,740 
Property Operating Expenses   (23,729)   (22,137)   (20,730)
Same-Store NOI  $191,497   $191,786   $192,872 
                
Change in Same-Store NOI   (0.2)%   (0.6)%     

 

Same-Store Percent Leased (2)  As of 12/31/18   As of 12/31/17   As of 12/31/16 
    92.1%   98.9%   99.1%

  

Lease Escalation Data (3)

 

 

Footnotes

(1)NOI is on a consolidated cash basis for all consolidated properties except properties acquired and sold in 2018, 2017 and 2016. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(2)Excludes properties acquired or sold in 2018, 2017 and 2016.
(3)Based on twelve months consolidated cash rents for single-tenant leases (properties greater than 70% leased) owned as of December 31, 2018. Excludes parking operations and rents from prior tenants.

 

20 

 

  

LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

12/31/2018

($000, except square footage)

 

Asset Class  YE 2016 (1)   YE 2017 (1)   YE 2018 
             
Industrial               
% of Cost (2)   42.2%   49.3%   71.1%
% of ABR (3)   40.8%   44.3%   65.4%
Leased   98.2%   99.9%   96.3%
Wtd. Avg. Lease Term (4)   10.3    10.5    9.6 
Mortgage Debt  $240,790   $193,529   $206,006 
% Investment Grade (3)   25.4%   28.4%   31.6%
Square Feet   28,908,037    36,071,422    41,447,962 
                
Office               
% of Cost (2)   53.6%   48.0%   27.2%
% of ABR (3)   55.4%   53.3%   33.0%
Leased   90.7%   96.8%   91.4%
Wtd. Avg. Lease Term (4)   7.0    7.5    6.5 
Mortgage Debt  $501,534   $502,829   $369,508 
% Investment Grade (3)   47.0%   51.1%   55.4%
Square Feet   13,032,223    11,583,316    5,683,808 
                
Other               
% of Cost (2)   4.2%   2.7%   1.7%
% of ABR (3)(5)   3.8%   2.4%   1.6%
Leased   97.2%   87.3%   30.0%
Wtd. Avg. Lease Term (4)   13.7    18.0    30.5 
Mortgage Debt  $2,849   $710   $- 
% Investment Grade (3)   16.8%   12.0%   9.4%
Square Feet   1,384,037    959,324    427,780 
                
Loans Receivable  $94,210   $-   $- 
Construction in progress (6)  $111,771   $4,219   $1,840 

 

Footnotes

(1)Multi-tenant properties reclassified to individual property types.
(2)Based on gross book value of real estate assets; excludes held for sale assets.
(3)Percentage of GAAP rent, excluding termination income, for consolidated properties owned as of each respective period.
(4)Cash basis.
(5)Excludes the acceleration of below-market lease intangible accretion on one Kmart asset in 2018.
(6)Includes development classified as real estate under construction on a consolidated basis.

 

21 

 

   

LEXINGTON REALTY TRUST

Portfolio Composition

12/31/2018

 

As a Percent of Gross Book Value (1)

 

Portfolio Composition (2)

 

Footnotes

(1)Based on gross book value of real estate assets as of 12/31/2018; excludes held for sale assets.
(2)Based on gross book value of real estate assets as of 12/31/2018, 12/31/2017 and 12/31/2016, as applicable and excludes held for sale assets.

 

22 

 

  

LEXINGTON REALTY TRUST

Components of Net Asset Value

12/31/2018

($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 twelve month net operating income (NOI) (1)     
Industrial  $161,342 
Office   78,557 
Other   2,522 
Total Net Operating Income  $242,421 
      
Lexington's share of non-consolidated twelve month NOI (1)     
NNN OFFICE JV     
Office (2)  $3,618 
OTHER JV     
Other  $1,828 
      
Other income     
Advisory fees  $1,632 
      
      
In service assets not fairly valued by capitalized NOI method (1)     
Wholly-owned assets acquired in 2018  $313,187 
Wholly-owned assets less than 70% leased  $53,925 
      
Add other assets:     
Assets held for sale  $63,868 
Construction in progress   1,840 
Developable land   4,975 
Cash and cash equivalents   168,750 
Restricted cash   8,497 
Accounts receivable   3,475 
Other assets   12,779 
Total other assets  $264,184 
      
Liabilities:     
Corporate level debt (face amount)  $929,120 
Mortgages and notes payable (face amount)   575,514 
Dividends payable   48,774 
Liabilities held for sale   386 
Accounts payable, accrued expenses and other liabilities   44,988 
Preferred stock, at liquidation value   96,770 
Lexington's share of non-consolidated mortgages   108,543 
Total deductions  $1,804,095 
      
Common shares & OP units at 12/31/2018   238,586,058 

 

Footnotes

(1)NOI for the existing property portfolio at December 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.
(2)NOI since acquisition in 3Q 2018.

 

23 

 

  

LEXINGTON REALTY TRUST

Consolidated Portfolio Concentration

12/31/2018

 

    Markets (2)  Percent of
GAAP Rent as of
12/31/18  (1)(4)
 
1   Houston, TX   10.6%
2   Memphis, TN   5.5%
3   Kansas City, MO   5.3%
4   Detroit, MI   4.8%
5   Kennewick, WA   4.6%
6   New York, NY   3.9%
7   Nashville, TN   3.3%
8   Dallas, TX   3.2%
9   Philadelphia, PA   2.8%
10   Atlanta, GA   2.4%
11   San Jose, CA   2.3%
12   Jackson, MS   2.2%
13   Phoenix, AZ   1.7%
14   Indianapolis, IN   1.7%
15   Columbus, IN   1.6%
16   St. Louis, MO   1.6%
17   Greenville, SC   1.5%
18   Champaign, IL   1.5%
19   Columbus, OH   1.4%
20   Charlotte, NC   1.4%
    Total Consolidated Portfolio Concentration (3)   63.3%

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2018.
(2)Markets are based on a Core Based Statistical Area, which 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 one Kmart asset.

 

24 

 

  

LEXINGTON REALTY TRUST

Portfolio Concentration - Industrial

12/31/2018

 

    Markets (2)  Percent of
GAAP Rent as of
12/31/18  (1)
 
1   Memphis, TN   8.4%
2   Houston, TX   7.3%
3   Kennewick, WA   7.0%
4   Detroit, MI   5.5%
5   Nashville, TN   5.1%
6   Jackson, MS   3.3%
7   Atlanta, GA   3.1%
8   New York, NY   2.7%
9   St. Louis, MO   2.4%
10   Greenville, SC   2.4%
11   Champaign, IL   2.2%
12   Columbus, OH   2.1%
13   Jackson, TN   2.1%
14   Winchester, VA   2.0%
15   Chicago, IL   1.9%
16   Shreveport, LA   1.9%
17   Greenville, SC   1.8%
18   Elizabethtown, KY   1.8%
19   Auburn, AL   1.7%
20   Portland, OR   1.7%
    Total Industrial Portfolio Concentration (3)   66.4%

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2018.
(2)Markets are based on a Core Based Statistical Area, which 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.

 

25 

 

  

LEXINGTON REALTY TRUST

Portfolio Concentration - Office

12/31/2018

 

     Markets (2)  Percent of
GAAP Rent as of
12/31/18  (1)
 
1    Houston, TX   17.7%
2    Kansas City, MO   14.8%
3    Philadelphia, PA   7.4%
4    San Jose, CA   7.0%
5    Dallas, TX   6.8%
6    New York, NY   6.4%
7    Phoenix, AZ   5.0%
8    Columbus, IN   4.9%
9    Charlotte, NC   4.2%
10    Detroit, MI   3.7%
11    Washington, DC   3.3%
12    Indianapolis, IN   2.8%
13    Miami, FL   2.4%
14    Richmond, VA   2.3%
15    Bend, OR   1.5%
16    Baton Rouge, LA   1.2%
17    Augusta, ME   1.2%
18    Boise City, ID   1.2%
19    McAllen, TX   1.0%
20    Orlando, FL   1.0%
     Total Office Portfolio Concentration (3)   95.9%

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2018.
(2)Markets are based on a Core Based Statistical Area, which 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.

 

26 

 

  

LEXINGTON REALTY TRUST

Tenant Industry Diversification - Industrial Assets (1)

12/31/2018

 

 

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2018.

 

27 

 

  

LEXINGTON REALTY TRUST

Tenant Industry Diversification - Office Assets (1)

12/31/2018

 

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 12/31/2018.

 

28 

 

 

LEXINGTON REALTY TRUST

Top 15 Tenants or Guarantors

12/31/2018

 

Top 15 Tenants or Guarantors - GAAP Basis

 

 

Tenants or Guarantors (5)

  Property Type  Lease Expirations  Number of
Leases
  Sq. Ft.
Leased
   Sq. Ft.
Leased as a
Percent of
Consolidated
Portfolio (2)(3)
   GAAP
Rent as of
12/31/2018
($000) (1)(4)
   Percent of
GAAP Rent as
of 12/31/2018
($000) (1)(2)(4)
 
Dow  Office  2036  1   664,100    1.5%  $14,850    5.3%
Preferred Freezer  Industrial  2035  1   456,412    1.0%   13,133    4.7%
Nissan  Industrial  2027  2   2,971,000    6.6%   12,810    4.6%
Dana  Industrial  2021-2026  7   2,053,359    4.5%   9,942    3.6%
United States of America  Office  2022 & 2027  2   329,229    0.7%   8,039    2.9%
Undisclosed (6)  Industrial  2031-2035  3   1,090,383    2.4%   7,138    2.6%
Watco  Industrial  2038  1   132,449    0.3%   6,773    2.4%
Xerox  Office  2023  1   202,000    0.4%   6,642    2.4%
Techtronic Industries (7)  Industrial  2025 & 2036  2   1,785,022    3.9%   6,507    2.3%
Morgan Lewis  Office  2021  1   289,432    0.6%   6,309    2.3%
T-Mobile USA  Office  2019-2029  5   385,854    0.9%   5,856    2.1%
Undisclosed (8)  Industrial  2023-2027  3   2,132,290    4.7%   5,528    2.0%
FedEx  Industrial  2028  1   140,330    0.3%   5,135    1.8%
Michelin  Industrial  2019 & 2020  2   1,759,346    3.9%   4,856    1.7%
General Electric (9)  Industrial/Office  2019 & 2024  2   950,427    2.1%   4,752    1.7%
         34   15,341,633    33.9%  $118,270    42.6%

 

Footnotes

(1)Twelve months ended 12/31/2018 GAAP rent, excluding vacant properties and termination income, recognized for consolidated properties owned as of 12/31/2018.
(2)Total shown may differ from detailed amounts due to rounding.
(3)Excludes vacant square feet.
(4)Excludes the acceleration of below-market lease intangible accretion on one Kmart asset.
(5)See Annual Report and other applicable disclosures for actual tenant names.
(6)Tenant is a domestic subsidiary of an international automaker.
(7)One property sold subsequent to 12/31/2018.
(8)Lease restricts certain disclosures. Guarantor is investment grade.
(9)One property held for sale at 12/31/2018.

  

29 

 

 

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Industrial Properties GAAP Basis

12/31/2018

($000)

 

Year  Number of
Leases
Expiring
   GAAP
Rent as of
12/31/2018
   Percent of
GAAP Rent
as of
12/31/2018
   Percent of
GAAP Rent
as of
12/31/2017
 
2019   6   $6,182    3.4%   3.9%
2020   9    11,520    6.2%   7.2%
2021   9    11,622    6.3%   5.5%
2022   1    1,343    0.7%   0.9%
2023   3    2,088    1.1%   1.3%
2024   9    12,888    7.0%   6.5%
2025   9    12,397    6.7%   8.0%
2026   9    13,248    7.2%   8.4%
2027   8    24,667    13.4%   9.8%
2028   4    11,755    6.4%   6.2%
Thereafter   25    76,669    41.6%   40.2%
                     
Total (1)   92   $184,379    100.0%     

 

 

Footnotes

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

 

30 

 

  

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Office Properties GAAP Basis

12/31/2018

($000)

 

Year  Number of
Leases
Expiring
   GAAP
Rent as of
12/31/2018
   Percent of
GAAP Rent
as of
12/31/2018
   Percent of
GAAP Rent
as of
12/31/2017
 
2019   7   $9,801    11.2%   13.4%
2020   3    4,380    5.0%   4.4%
2021   10    15,075    17.2%   8.7%
2022   3    4,861    5.6%   6.2%
2023   4    7,519    8.6%   6.3%
2024   9    11,709    13.4%   5.4%
2025   5    3,422    3.9%   10.3%
2026   1    1,109    1.3%   2.3%
2027   4    5,822    6.7%   7.5%
2028   2    1,187    1.4%   2.3%
Thereafter   5    22,622    25.9%   27.6%
                     
Total (1)   53   $87,507    100.0%     

 

 

Footnotes 

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

 

31 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2018 

 

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
12/31/2018
($000) (3)
   Cash
Rent
as of
12/31/2018
($000) (2)
   12/31/2018
Debt Balance
($000)
   Debt
Maturity
 
INDUSTRIAL PROPERTIES                               
Single-tenant                               
2019  MTM  749 Southrock Dr.  Rockford  IL  20  Jacobson Warehouse   150,000    471    540    -    - 
   10/17/2019  10345 Philipp Pkwy.  Streetsboro  OH    L'Oreal USA   649,250    2,611    2,817    16,565    09/2019
   12/31/2019  191 Arrowhead Dr.  Hebron  OH  22  Owens Corning   250,410    570    570    -    - 
      200 Arrowhead Dr.  Hebron  OH  22  Owens Corning   400,522    912    912    -    - 
      2415 US Hwy. 78 East  Moody  AL    Michelin   595,346    1,408    1,450    -    - 
2020  1/31/2020  101 Michelin Dr.  Laurens  SC    Michelin   1,164,000    3,448    3,448    -    - 
   5/31/2020  359 Gateway Dr.  Lavonia  GA    TI Automotive   133,221    952    1,200    6,647    12/2020
   6/30/2020  1650-1654 Williams Rd.  Columbus  OH    ODW Logistics   772,450    1,345    1,347    -    - 
      3102 Queen Palm Dr.  Tampa  FL    Time   229,605    1,234    1,351    -    - 
   9/30/2020  3350 Miac Cove Rd.  Memphis  TN    Mimeo.com   107,400    422    451    -    - 
   12/19/2020  1901 Ragu Dr.  Owensboro  KY  6  Unilever   443,380    1,493    1,288    -    - 
   12/31/2020  2203 Sherrill Dr.  Statesville  NC    Geodis America   639,800    2,493    2,463    -    - 
2021  3/31/2021  2455 Premier Row  Orlando  FL    Walgreen Co.   205,016    786    508    -    - 
   5/31/2021  291 Park Center Dr.  Winchester  VA    Kraft Heinz   344,700    1,421    1,416    -    - 
   6/30/2021  11624 S. Distribution Cv.  Olive Branch  MS    Hamilton Beach   1,170,218    2,760    2,222    -    - 
   9/30/2021  3820 Micro Dr.  Millington  TN    Ingram Micro   701,819    1,812    1,874    -    - 
   10/25/2021  6938 Elm Valley Dr.  Kalamazoo  MI    Dana   150,945    1,747    2,027    -    - 
   11/30/2021  2880 Kenny Biggs Rd.  Lumberton  NC    Quickie Manufacturing   423,280    1,356    1,437    -    - 
   12/31/2021  3686 South Central Ave.  Rockford  IL    Pierce Packaging   93,000    316    316    -    - 
2022  3/31/2022  5417 Campus Dr.  Shreveport  LA    Tire Rack   257,849    1,343    1,403    -    - 
2023  2/28/2023  7670 Hacks Cross Rd.  Olive Branch  MS    MAHLE Industries   268,104    906    891    -    - 
   8/31/2023  10535 Red Bluff Rd.  Pasadena  TX    Unis   257,835    446    435    -    - 
   12/31/2023  120 Southeast Pkwy. Dr.  Franklin  TN    United Technologies   289,330    736    736    -    - 
2024  1/31/2024  1285 W. State Road 32  Lebanon  IN    Continental Tire   741,880    2,281    2,241    -    - 
   3/31/2024  1520 Lauderdale Memorial Hwy.  Cleveland  TN    General Electric   851,370    2,568    2,614    -    - 
   4/30/2024  113 Wells St.  North Berwick  ME    United Technologies   993,685    1,798    1,962    381    04/2019
   5/31/2024  901 East Bingen Point Way  Bingen  WA    Boeing   124,539    2,636    2,606    -    - 
   7/31/2024  5795 North Blackstock Road  Spartanburg  SC    Wal-Mart   341,660    602    585    -    - 
   9/30/2024  1621 Veterans Memorial Pkwy. E  Lafayette  IN    Caterpillar   309,400    1,215    1,204    -    - 
   10/31/2024  43955 Plymouth Oaks Blvd.  Plymouth  MI    Tower Automotive   311,612    1,591    1,520    -    - 
      2115 East Belt Line Rd.  Carrollton  TX    L.E. Klein   58,202    69    52    -    - 
2025  6/30/2025  10000 Business Blvd.  Dry Ridge  KY    Dana   336,350    1,346    1,346    -    - 

 

32 

 

  

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2018 

 

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
12/31/2018
($000) (3)
   Cash
Rent
as of
12/31/2018
($000) (2)
   12/31/2018
Debt Balance
($000)
   Debt
Maturity
 
INDUSTRIAL PROPERTIES                               
2025  6/30/2025  4010 Airpark Dr.  Owensboro  KY    Metalsa / Dana   211,598    1,208    1,208    -    - 
      730 North Black Branch Rd.  Elizabethtown  KY    Metalsa / Dana   167,770    537    537    -    - 
      750 North Black Branch Rd.  Elizabethtown  KY    Metalsa / Dana   539,592    2,838    2,838    -    - 
      301 Bill Bryan Blvd.  Hopkinsville  KY    Metalsa / Dana   424,904    1,688    1,687    -    - 
   7/14/2025  590 Ecology Ln.  Chester  SC    Boral Limited   420,597    1,759    2,353    6,569    08/2025
   7/31/2025  7005 Cochran Rd.  Glenwillow  OH    Royal Appliance   458,000    2,061    2,101    -    - 
   12/31/2025  1700 47th Ave North  Minneapolis  MN    Owens Corning   18,620    550    550    -    - 
2026  3/30/2026  121 Technology Dr.  Durham  NH  15  Heidelberg   500,500    2,537    2,479    -    - 
   3/31/2026  633 Garrett Pkwy.  Lewisburg  TN    Calsonic Kansei   310,000    1,293    1,200    -    - 
   4/30/2026  16811 W. Commerce Dr.  Goodyear  AZ    Blue Buffalo   540,349    294    -    -    - 
   6/30/2026  351 Chamber Dr.  Chillicothe  OH    Kitchen Collection   475,218    1,159    1,141    -    - 
   9/30/2026  900 Industrial Blvd.  Crossville  TN    Dana   222,200    578    578    -    - 
      3931 Lakeview Corporate Dr.  Edwardsville  IL    Amazon.com   769,500    2,689    2,550    -    - 
   10/31/2026  5001 Greenwood Rd.  Shreveport  LA    Libbey   646,000    2,165    2,200    -    - 
   11/30/2026  250 Rittenhouse Cir.  Bristol  PA    Estée Lauder   241,977    1,146    1,159    -    - 
      736 Addison Rd.  Erwin  NY    Corning   408,000    1,387    1,394    -    - 
2027  1/31/2027  27200 West 157th St.  New Century  KS    Amazon.com   446,500    1,240    1,069    -    - 
   2/28/2027  554 Nissan Pkwy.  Canton  MS    Nissan   1,466,000    6,250    5,997    -    - 
   4/30/2027  16407 Applewhite Rd.  San Antonio  TX  18  Undisclosed / HVAC   849,275    2,994    2,767    -    - 
      200 Sam Griffin Rd.  Smyrna  TN    Nissan   1,505,000    6,560    6,251    -    - 
   6/30/2027  1501 Nolan Ryan Expy.  Arlington  TX    Arrow Electronics   74,739    406    396    -    - 
   9/30/2027  1550 Hwy 302  Byhalia  MS    McCormick   615,600    2,460    1,806    -    - 
   10/31/2027  201 James Lawrence Rd.  Jackson  TN    Kellogg   1,062,055    3,944    3,698    -    - 
   12/31/2027  10590 Hamilton Ave.  Cincinnati  OH    Hillman Group   264,598    813    813    -    - 
2028  1/31/2028  490 Westridge Pkwy.  McDonough  GA    Georgia-Pacific   1,121,120    3,735    3,326    -    - 
   3/31/2028  29-01-Borden Ave./29-10 Hunters Point Ave.  Long Island City  NY    FedEx   140,330    5,135    5,038    39,994    03/2028
   8/31/2028  1420 Greenwood Rd.  McDonough  GA    United States Cold Storage   296,972    2,170    2,138    -    - 
   9/30/2028  904 Industrial Rd.  Marshall  MI    Tenneco   246,508    715    816    -    - 
2029  7/31/2029  8500 Nail Rd.  Olive Branch  MS    Sephora   716,080    1,995    1,498    -    - 
   11/24/2029  318 Pappy Dunn Blvd.  Anniston  AL    IAC Group   276,782    1,740    1,646    -    - 
2030  3/31/2030  549 Wingo Rd.  Byhalia  MS    Asics   855,878    4,388    4,094    -    - 
   5/31/2030  3301 Stagecoach Rd. NE  Thomson  GA    Hollander   208,000    930    869    -    - 
      4015 Lakeview Corporate Drive  Edwardsville  IL    Spectrum   1,017,780    1,782    1,395    -    - 

  

33 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2018 

 

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
12/31/2018
($000) (3)
   Cash
Rent
as of
12/31/2018
($000) (2)
   12/31/2018
Debt Balance
($000)
   Debt
Maturity
 
INDUSTRIAL PROPERTIES                               
2030  6/30/2030  2601 Bermuda Hundred Rd.  Chester  VA    Philip Morris   1,034,470    213    203    -    - 
2031  10/31/2031  1020 W. Airport Rd.  Romeoville  IL    ARYZTA   188,166    3,594    3,386    -    - 
   12/18/2031  80 Tyson Dr.  Winchester  VA  16  Undisclosed / Automaker   400,400    2,368    2,068    -    - 
2032  4/30/2032  13930 Pike Rd.  Missouri City  TX    Vulcan   -    2,123    1,956    -    - 
   8/24/2032  16950 Pine Dr.  Romulus  MI  16  Undisclosed / Automaker   500,023    2,567    2,399    -    - 
   10/31/2032  27255 SW 95th Ave.  Wilsonville  OR    Pacific Natural Foods   508,277    3,119    2,593    -    - 
      26700 Bunert Road  Warren  MI    Lipari   260,243    3,883    3,439    25,850    11/2032
2033  12/31/2033  2115 East Belt Line Rd.  Carrollton  TX    Teasdale   298,653    372    305    -    - 
2034  9/30/2034  5625 North Sloan Ln.  North Las Vegas  NV    Nicholas   180,235    2,557    2,282    -    - 
   10/31/2034  1001 Innovation Rd.  Rantoul  IL    Vista Outdoor   813,126    4,195    3,700    -    - 
2035  3/31/2035  13863 Industrial Rd.  Houston  TX    Spitzer   187,800    2,435    2,116    -    - 
      7007 F.M. 362 Rd.  Brookshire  TX    Spitzer   262,095    1,910    1,661    -    - 
   6/30/2035  111 West Oakview Pkwy.  Oak Creek  WI    Stella & Chewy's   164,007    2,098    1,879    -    - 
   8/31/2035  2800 Polar Way  Richland  WA  9  Preferred Freezer   456,412    13,133    11,303    110,000    01/2026
   10/22/2035  2860 Clark St.  Detroit  MI  16  Undisclosed / Automaker   189,960    2,203    2,203    -    - 
2036  5/31/2036  671 Washburn Switch Rd.  Shelby  NC    Clearwater Paper   673,425    2,786    2,438    -    - 
   6/30/2036  100 Ryobi Drive  Anderson  SC  10, 21  One World Technologies   1,327,022    4,446    3,771    -    - 
2037  3/31/2037  4005 E I-30  Grand Prairie  TX    O'Neal  Industries   215,000    1,872    1,561    -    - 
2038  3/31/2038  13901/14035 Industrial Rd.  Houston  TX    Watco   132,449    6,773    5,808    -    - 
2042  5/31/2042  4801 North Park Dr.  Opelika  AL    Golden State Enterprises   165,493    3,187    2,495    -    - 
N/A  Vacancy  3350 Miac Cove Rd.  Memphis  TN    (Available for Lease)   32,679    -    -    -    - 
SINGLE TENANT INDUSTRIAL TOTAL         39,274,155   $182,074   $170,390   $206,006      
Multi-tenant / Vacancy (8)(14)                               
   Various  6050 Dana Way  Antioch  TN  4 (97%)  Multi-Tenant   674,528    2,305    2,277    -    - 
   Vacancy  50 Tyger River Dr.  Duncan  SC  11  (Available for Lease)   221,833    769    769    -    - 
   Vacancy  3456 Meyers Ave.  Memphis  TN  11  (Available for Lease)   780,000    1,031    504    -    - 
   Vacancy  2935 Van Vactor Dr.  Plymouth  IN  11  (Available for Lease)   300,500    856    856    -    - 
   Vacancy  1133 Poplar Creek Rd.  Henderson  NC  11  (Available for Lease)   196,946    869    886    -    - 
MULTI-TENANT/VACANCY INDUSTRIAL TOTAL         2,173,807   $5,830   $5,292   $-      
INDUSTRIAL TOTAL/WEIGHTED AVERAGE     96.3% Leased   41,447,962   $187,904   $175,682   $206,006      

 

34 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2018 

 

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

12/31/2018

($000) (3)

  

Cash

Rent

as of

12/31/2018

($000) (2)

  

12/31/2018

Debt Balance

($000)

   Debt Maturity 
OFFICE PROPERTIES                               
Single-tenant                               
2019  1/31/2019  820 Gears Rd.  Houston  TX    Ricoh   78,895    1,181    1,180    -    - 
   4/1/2019  9201 Stateline Rd.  Kansas City  MO    Swiss Re   155,925    2,558    2,558    15,272    05/2019
   5/31/2019  10475 Crosspoint Blvd.  Indianapolis  IN    DMC Insurance   3,764    72    72    -    - 
   10/31/2019  10475 Crosspoint Blvd.  Indianapolis  IN    John Wiley   123,047    2,269    2,350    -    - 
      9601 Renner Blvd.  Lenexa  KS    T-Mobile USA   77,484    1,142    1,522    8,153    12/2019
   12/31/2019  2800 Waterford Lake Dr.  Midlothian  VA  10  Alstom Power   99,057    2,184    2,359    -    - 
2020  2/14/2020  5600 Broken Sound Blvd.  Boca Raton  FL    Oce - USA Holding   143,290    2,244    2,500    18,785    02/2020
   6/30/2020  3711 San Gabriel  Mission  TX     T-Mobile West   75,016    989    997    -    - 
   8/31/2020  133 First Park Dr.  Oakland  ME    T-Mobile USA   78,610    1,147    1,512    8,138    10/2020
2021  1/31/2021  1701 Market St.  Philadelphia  PA    Morgan Lewis   289,432    4,299    4,505    -    - 
   3/31/2021  1701 Market St.  Philadelphia  PA    Prime Communications   1,220    62    62    -    - 
   6/30/2021  1415 Wyckoff Rd.  Wall  NJ    NJ Natural Gas   157,511    3,774    3,774    8,847    01/2021
      2050 Roanoke Rd.  Westlake  TX    Charles Schwab   130,199    2,069    2,134    -    - 
   8/31/2021  3500 North Loop Rd.  McDonough  GA  11  TSYS   62,218    958    1,211    -    - 
   10/31/2021  1401 Nolan Ryan Expy.  Arlington  TX    Butler America Aerospace   4,979    14    14    -    - 
   11/30/2021  29 South Jefferson Rd.  Whippany  NJ    CAE   123,734    2,332    2,555    12,156    11/2021
2022  5/30/2022  13651 McLearen Rd.  Herndon  VA    United States of America   159,644    3,135    3,220    -    - 
   7/31/2022  1440 E 15th St.  Tucson  AZ    CoxCom   28,591    561    561    -    - 
   10/31/2022  4455 American Way  Baton Rouge  LA    New Cingular Wireless   70,100    1,165    1,125    -    - 
2023  9/30/2023  1701 Market St.  Philadelphia  PA    CBC Restaurant   8,070    219    229    -    - 
   10/31/2023  3943 Denny Ave.  Pascagoula  MS    Huntington Ingalls   94,841    593    593    -    - 
   12/14/2023  3333 Coyote Hill Rd.  Palo Alto  CA    Xerox   202,000    6,642    7,070    32,188    12/2023
2024  2/14/2024  1362 Celebration Blvd.  Florence  SC    MED3000   32,000    573    576    -    - 
   5/31/2024  3476 Stateview Blvd.  Fort Mill  SC    Wells Fargo   169,083    1,960    1,914    -    - 

  

35 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2018 

 

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

12/31/2018

($000) (3)

  

Cash

Rent

as of

12/31/2018

($000) (2)

  

12/31/2018

Debt Balance

($000)

   Debt Maturity 
OFFICE PROPERTIES                               
2024  5/31/2024  3480 Stateview Blvd.  Fort Mill  SC    Wells Fargo   169,218    2,036    1,916    -    - 
   7/15/2024  19019 North 59th Ave.  Glendale  AZ    Honeywell   252,300    1,994    1,993    -    - 
   7/31/2024  500 Jackson St.  Columbus  IN    Cummins   390,100    4,637    4,762    7,301    07/2019
   8/31/2024  10475 Crosspoint Blvd.  Indianapolis  IN    HQ Global Workplaces   14,236    309    309    -    - 
2025  1/31/2025  1401 Nolan Ryan Expy.  Arlington  TX    Triumph Group   111,409    1,641    1,751    -    - 
   2/28/2025  1401 Nolan Ryan Expy.  Arlington  TX    Infotech Enterprise   13,590    204    211    -    - 
   5/31/2025  1701 Market St.  Philadelphia  PA    TruMark Financial   2,641    253    253    -    - 
2026  6/30/2026  3265 East Goldstone Dr.  Meridian  ID    T-Mobile USA   77,484    1,109    1,495    -    - 
2027  1/31/2027  1701 Market St.  Philadelphia  PA    Drybar   1,975    142    107    -    - 
   5/31/2027  2401 Cherahala Blvd.  Knoxville  TN    CaremarkPCS   59,748    776    785    -    - 
   10/31/2027  11201 Renner Blvd.  Lenexa  KS    United States of America   169,585    4,904    4,819    31,698    11/2027
2029  3/31/2029  2800 High Meadow Cir.  Auburn Hills  MI    Faurecia   278,000    3,547    3,285    -    - 
   7/31/2029  2999 Southwest 6th St.  Redmond  OR  12  T-Mobile USA / Consumer Cellular   77,260    1,469    1,783    -    - 
   9/30/2029  9200 South Park Center Loop  Orlando  FL  11  CardWorks   59,927    978    994    -    - 
2033  12/31/2033  8555 South River Pkwy.  Tempe  AZ    Versum   95,133    1,778    982    -    - 
2036  10/31/2036  270 Abner Jackson Pkwy.  Lake Jackson  TX    Dow   664,100    14,850    12,414    187,980    10/2036
N/A  N/A  1701 Market St.  Philadelphia  PA    Parking Operations   -    2,010    2,010    -    - 
   Vacancy  1701 Market St.  Philadelphia  PA    (Available for Lease)   699    -    -    -    - 
      1401 Nolan Ryan Expy.  Arlington  TX    (Available for Lease)   31,830    -    -    -    - 
SINGLE TENANT OFFICE TOTAL         4,837,945   $84,779   $84,462   $330,518      
Multi-tenant / Vacancy (8)(14)                               
   Vacancy  5200 Metcalf Ave.  Overland Park  KS  11  (Available for Lease)   320,198    5,419    5,401    32,112    05/2019
   Various  11511 Luna Rd.  Farmers Branch  TX  4 (92%)  IBM   181,072    2,503    1,608    -    - 
   Various  1311 Broadfield Blvd.  Houston  TX  4 (49%)  Saipem   155,407    710    557    -    - 
   Various  13430 North Black Canyon Fwy.  Phoenix  AZ  4 (85%)  Multi-Tenant   138,940    947    1,225    -    - 
   Various  1460 Tobias Gadson Blvd.  Charleston  SC  4 (64%)  Vallen Distribution   50,246    460    459    6,878    02/2021
MULTI-TENANT/VACANCY OFFICE TOTAL         845,863   $10,039   $9,250   $38,990      
OFFICE TOTAL/WEIGHTED AVERAGE     91.4% Leased   5,683,808   $94,818   $93,712   $369,508      

 

36 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2018 

 

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 12/31/2018
($000) (3)
   Cash Rent
as of 12/31/2018
($000) (2)
   12/31/2018
Debt Balance
($000)
   Debt Maturity 
OTHER PROPERTIES                               
Single-tenant                               
Retail                                           
2023  7/1/2023  1053 Mineral Springs Rd.  Paris  TN    Kroger   31,170    159    159    -    - 
2024  3/31/2024  B.E.C. 45th St./Lee Blvd.  Lawton  OK    Safeway   30,757    190    185    -    - 
Specialty                                           
2029  1/31/2029  175 Holt Garrison Pkwy.  Danville  VA    Home Depot   -    216    260    -    - 
2048  12/31/2048  30 Light St.  Baltimore  MD    30 Charm City   -    299    299    -    - 
2055  1/31/2055  499 Derbyshire Dr.  Venice  FL    Littlestone Brotherhood   31,180    1,908    1,339    -    - 
2067  12/31/2067  10201 Schuster Way  Pataskala  OH    Kohl's   -    57    26    -    - 
2112  8/31/2112  201-215 N. Charles St.  Baltimore  MD    201 NC Leasehold   -    283    283    -    - 
SINGLE TENANT OTHER TOTAL         93,107   $3,112   $2,551   $-      
Multi-tenant / Vacancy (8)(14)                               
   Vacancy  21082 Pioneer Plaza Dr.  Watertown  NY  11, 17  (Available for Lease)   120,727    1,354    112    -    - 
   Vacancy  97 Seneca Trail  Fairlea  WV  11  (Available for Lease)   90,933    297    79    -    - 
   Vacancy  832 N. Westover Blvd .  Albany  GA    (Available for Lease)   45,554    -    -    -    - 
   Various  King St./1042 Fort St. Mall  Honolulu  HI  4 (46%)  Multi-Tenant   77,459    671    671    -    - 
MULTI-TENANT/VACANCY OTHER TOTAL         334,673   $2,322   $862   $-      
OTHER TOTAL/WEIGHTED AVERAGE     30.0% Leased   427,780   $5,434   $3,413   $-      
                                            
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE     95.1% Leased   47,559,550   $288,156   $272,807   $575,514      

 

37 

 

 

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Non-consolidated Portfolio - 12/31/2018

 

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