Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | LEXINGTON REALTY TRUST | |
Entity Central Index Key | 910,108 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 239,983,245 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period Ended Date | Mar. 31, 2018 | |
LCIF [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | LEPERCQ CORPORATE INCOME FUND L.P. | |
Entity Central Index Key | 790,877 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period Ended Date | Mar. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Real estate, at cost | $ 3,792,977 | $ 3,936,459 |
Real estate - intangible assets | 564,947 | 599,091 |
Real estate, gross | 4,357,924 | 4,535,550 |
Less: accumulated depreciation and amortization | 1,179,078 | 1,225,650 |
Real estate, net | 3,178,846 | 3,309,900 |
Assets held for sale | 0 | 2,827 |
Cash and cash equivalents | 90,214 | 107,762 |
Restricted cash | 7,479 | 4,394 |
Investment in and advances to non-consolidated entities | 17,485 | 17,476 |
Deferred expenses, net | 30,098 | 31,693 |
Rent receivable – current | 5,878 | 5,450 |
Rent receivable – deferred | 56,038 | 52,769 |
Other assets | 25,958 | 20,749 |
Total assets | 3,411,996 | 3,553,020 |
Liabilities: | ||
Mortgages and notes payable, net | 682,994 | 689,810 |
Revolving credit facility borrowings | 100,000 | 160,000 |
Term loans payable, net | 596,957 | 596,663 |
Senior notes payable, net | 495,407 | 495,198 |
Trust preferred securities, net | 127,221 | 127,196 |
Dividends payable | 48,438 | 49,504 |
Accounts payable and other liabilities | 27,284 | 38,644 |
Accrued interest payable | 11,051 | 5,378 |
Deferred revenue - including below market leases, net | 32,130 | 33,182 |
Prepaid rent | 16,130 | 16,610 |
Total liabilities | 2,137,612 | 2,212,185 |
Commitments and contingencies | ||
Equity: | ||
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares: Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding | 94,016 | 94,016 |
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 239,972,103 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively | 24 | 24 |
Additional paid-in-capital | 2,811,213 | 2,818,520 |
Accumulated distributions in excess of net income | (1,647,804) | (1,589,724) |
Accumulated other comprehensive income | 1,311 | 1,065 |
Total shareholders’ equity | 1,258,760 | 1,323,901 |
Noncontrolling interests | 15,624 | 16,934 |
Total equity | 1,274,384 | 1,340,835 |
Total liabilities and equity | 3,411,996 | 3,553,020 |
LCIF [Member] | ||
Assets: | ||
Real estate, at cost | 750,146 | 794,242 |
Real estate - intangible assets | 108,126 | 116,861 |
Real estate, gross | 858,272 | 911,103 |
Less: accumulated depreciation and amortization | 212,793 | 233,121 |
Real estate, net | 645,479 | 677,982 |
Cash and cash equivalents | 12,077 | 50,900 |
Restricted cash | 1,890 | 932 |
Investment in and advances to non-consolidated entities | 5,941 | 6,477 |
Deferred expenses, net | 6,076 | 6,326 |
Rent receivable – current | 440 | 365 |
Rent receivable – deferred | 24,372 | 22,529 |
Other assets | 2,899 | 2,202 |
Total assets | 699,174 | 767,713 |
Liabilities: | ||
Mortgages and notes payable, net | 212,965 | 212,792 |
Co-borrower debt | 147,692 | 157,789 |
Related party advances, net | 2,476 | 2,422 |
Dividends payable | 14,952 | 14,952 |
Accounts payable and other liabilities | 2,880 | 8,748 |
Accrued interest payable | 680 | 691 |
Deferred revenue - including below market leases, net | 740 | 804 |
Prepaid rent | 3,596 | 3,233 |
Total liabilities | 385,981 | 401,431 |
Commitments and contingencies | ||
Equity: | ||
Partners' capital | 313,193 | 366,282 |
Total liabilities and equity | $ 699,174 | $ 767,713 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Equity: | ||
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Series C Cumulative Convertible Preferred, liquidation preference | $ 96,770 | $ 96,770 |
Series C Cumulative Convertible Preferred, shares issued (in shares) | 1,935,400 | 1,935,400 |
Series C Cumulative Convertible Preferred, shares outstanding (in shares) | 1,935,400 | 1,935,400 |
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common shares, shares issued (in shares) | 239,972,103 | 240,689,081 |
Common shares, outstanding (in shares) | 239,972,103 | 240,689,081 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Gross revenues: | ||
Rental | $ 94,522 | $ 88,654 |
Tenant reimbursements | 8,115 | 7,445 |
Total gross revenues | 102,637 | 96,099 |
Expense applicable to revenues: | ||
Depreciation and amortization | (46,537) | (42,891) |
Property operating | (11,477) | (12,116) |
General and administrative | (8,996) | (9,457) |
Non-operating income | 546 | 2,621 |
Interest and amortization expense | (20,331) | (19,725) |
Impairment charges and loan loss | (53,049) | (7,992) |
Gains on sales of properties | 22,774 | 34,193 |
Income (loss) before provision for income taxes and equity in earnings of non-consolidated entities | (14,433) | 40,732 |
Provision for income taxes | (503) | (422) |
Equity in earnings of non-consolidated entities | 113 | 1,910 |
Net income (loss) | (14,823) | 42,220 |
Less net (income) loss attributable to noncontrolling interests | 508 | (180) |
Net income (loss) attributable to Lexington Realty Trust shareholders | (14,315) | 42,040 |
Allocation to participating securities | (70) | (71) |
Net income (loss) attributable to common shareholders | $ (15,957) | $ 40,397 |
Net income (loss) attributable to common shareholders - per common share basic (in dollars per share) | $ (0.07) | $ 0.17 |
Weighted-average common shares outstanding – basic (in shares) | 238,072,081 | 237,179,526 |
Net income (loss) attributable to common shareholders – per common share diluted (in dollars per share) | $ (0.07) | $ 0.17 |
Weighted-average common shares outstanding – diluted (in shares) | 238,072,081 | 241,088,049 |
Series C [Member] | ||
Expense applicable to revenues: | ||
Dividends attributable to preferred shares – Series C | $ (1,572) | $ (1,572) |
LCIF [Member] | ||
Gross revenues: | ||
Rental | 19,943 | 17,308 |
Tenant reimbursements | 2,164 | 1,973 |
Total gross revenues | 22,107 | 19,281 |
Expense applicable to revenues: | ||
Depreciation and amortization | (8,872) | (9,172) |
Property operating | (3,114) | (3,557) |
General and administrative | (1,785) | (1,439) |
Non-operating income | 2 | 229 |
Interest and amortization expense | (5,012) | (3,407) |
Impairment charges and loan loss | (22,730) | (2,497) |
Gains on sales of properties | 930 | 0 |
Income (loss) before provision for income taxes and equity in earnings of non-consolidated entities | (18,474) | (562) |
Provision for income taxes | (12) | (8) |
Equity in earnings of non-consolidated entities | 252 | 100 |
Net income (loss) | $ (18,234) | $ (470) |
Net income (loss) per unit (in dollars per unit) | $ (0.23) | $ (0.01) |
Weighted-average units outstanding (in units) | 80,565,611 | 83,241,396 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (14,823) | $ 42,220 |
Other comprehensive income (loss): | ||
Change in unrealized gain on interest rate swaps, net | 246 | 1,292 |
Other comprehensive income | 246 | 1,292 |
Comprehensive income (loss) | (14,577) | 43,512 |
Comprehensive (income) loss attributable to noncontrolling interests | 508 | (180) |
Comprehensive income (loss) attributable to Lexington Realty Trust shareholders | $ (14,069) | $ 43,332 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Shares [Member] | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Distributions in Excess of Net Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interests [Member] |
Beginning Balance at Dec. 31, 2016 | $ 1,412,491 | $ 94,016 | $ 24 | $ 2,800,736 | $ (1,500,966) | $ (1,033) | $ 19,714 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares and deferred compensation amortization, net | 18,322 | 0 | 18,322 | ||||
Dividends/distributions | (44,331) | (43,291) | (1,040) | ||||
Net income (loss) | 42,220 | 42,040 | 180 | ||||
Other comprehensive income | 1,292 | 1,292 | |||||
Ending Balance at Mar. 31, 2017 | 1,429,994 | 94,016 | 24 | 2,819,058 | (1,502,217) | 259 | 18,854 |
Beginning Balance at Dec. 31, 2017 | 1,340,835 | 94,016 | 24 | 2,818,520 | (1,589,724) | 1,065 | 16,934 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares and deferred compensation amortization, net | 1,660 | 1,660 | |||||
Repurchase of common shares | (6,336) | (6,336) | |||||
Repurchase of common shares to settle tax obligations | (2,544) | (2,544) | |||||
Forfeiture of employee common shares | (78) | (87) | 9 | ||||
Dividends/distributions | (44,576) | (43,774) | (802) | ||||
Net income (loss) | (14,823) | (14,315) | (508) | ||||
Other comprehensive income | 246 | 246 | |||||
Ending Balance at Mar. 31, 2018 | $ 1,274,384 | $ 94,016 | $ 24 | $ 2,811,213 | $ (1,647,804) | $ 1,311 | $ 15,624 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | LCIF [Member] |
Beginning balance (in units) at Dec. 31, 2016 | 83,241,396 | |
Beginning balance at Dec. 31, 2016 | $ 387,623 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Changes in co-borrower debt allocation | 47,811 | |
Distributions | (16,916) | |
Net income (loss) | $ 42,220 | $ (470) |
Ending balance (in units) at Mar. 31, 2017 | 83,241,396 | |
Ending balance at Mar. 31, 2017 | $ 418,048 | |
Beginning balance (in units) at Dec. 31, 2017 | 80,565,611 | |
Beginning balance at Dec. 31, 2017 | $ 366,282 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Changes in co-borrower debt allocation | (19,903) | |
Distributions | (14,952) | |
Net income (loss) | $ (14,823) | $ (18,234) |
Ending balance (in units) at Mar. 31, 2018 | 3,223,000 | 80,565,611 |
Ending balance at Mar. 31, 2018 | $ 313,193 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net cash provided by operating activities: | $ 56,221 | $ 57,438 |
Cash flows from investing activities: | ||
Acquisition of real estate, including intangible assets | 0 | (48,250) |
Investment in real estate under construction | 0 | (42,298) |
Capital expenditures | (6,727) | (3,330) |
Net proceeds from sale of properties | 61,518 | 90,823 |
Net proceeds from sale of non-consolidated investment | 0 | 6,127 |
Principal payments received on loans receivable | 0 | 88,556 |
Investments in and advances to non-consolidated entities | 0 | (1,293) |
Distributions from non-consolidated entities in excess of accumulated earnings | 157 | 371 |
Increase in deferred leasing costs | (609) | (1,671) |
Change in real estate deposits, net | (3,102) | 12,229 |
Net cash provided by investing activities | 51,237 | 101,264 |
Cash flows from financing activities: | ||
Dividends to common and preferred shareholders | (44,840) | (42,836) |
Principal amortization payments | (7,494) | (7,913) |
Change in revolving credit facility borrowings, net | (60,000) | 0 |
Deferred financing costs | (32) | (11) |
Proceeds of mortgages and notes payable | 500 | 0 |
Cash distributions to noncontrolling interests | (802) | (1,040) |
Issuance of common shares, net of costs and repurchases to settle tax obligations | (2,917) | 16,168 |
Repurchase of common shares | (6,336) | 0 |
Net cash used in financing activities | (121,921) | (35,632) |
Change in cash, cash equivalents and restricted cash | (14,463) | 123,070 |
Cash, cash equivalents and restricted cash, at beginning of period | 112,156 | 117,779 |
Cash, cash equivalents and restricted cash, at end of period | 97,693 | 240,849 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents at beginning of period | 107,762 | 86,637 |
Cash and cash equivalents at end of period | 90,214 | 177,301 |
Restricted cash at beginning of period | 4,394 | 31,142 |
Restricted cash at end of period | 7,479 | 63,548 |
LCIF [Member] | ||
Net cash provided by operating activities: | 8,549 | 9,887 |
Cash flows from investing activities: | ||
Investment in real estate under construction | 0 | (8,761) |
Capital expenditures | (4,175) | (638) |
Net proceeds from sale of properties | 2,101 | 3,889 |
Investments in and advances to non-consolidated entities | 0 | (175) |
Distributions from non-consolidated entities in excess of accumulated earnings | 467 | 154 |
Increase in deferred leasing costs | (17) | (1) |
Change in real estate deposits, net | (14) | (2) |
Net cash provided by investing activities | (1,638) | (5,534) |
Cash flows from financing activities: | ||
Distributions to partners | (14,952) | (16,916) |
Principal amortization payments | (346) | (323) |
Co-borrower debt payments | (30,000) | 0 |
Deferred financing costs | (32) | 0 |
Proceeds of mortgages and notes payable | 500 | 0 |
Related party advances, net | 54 | 7,877 |
Net cash used in financing activities | (44,776) | (9,362) |
Change in cash, cash equivalents and restricted cash | (37,865) | (5,009) |
Cash, cash equivalents and restricted cash, at beginning of period | 51,832 | 53,576 |
Cash, cash equivalents and restricted cash, at end of period | 13,967 | 48,567 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents at beginning of period | 50,900 | 52,031 |
Cash and cash equivalents at end of period | 12,077 | 47,027 |
Restricted cash at beginning of period | 932 | 1,545 |
Restricted cash at end of period | $ 1,890 | $ 1,540 |
The Company and Financial State
The Company and Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
The Company and Financial Statement Presentation | The Company and Financial Statement Presentation Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a diversified portfolio of equity investments in single-tenant commercial properties. As of March 31, 2018 , the Company had ownership interests in approximately 170 consolidated real estate properties, located in 37 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries. The Company believes that it continues to be operated in a manner that enables it to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities. The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, and (4) investments in joint ventures. References to “OP units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate and distinct legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary 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 property owner subsidiary or any other 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 or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors. The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three months ended March 31, 2018 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 27, 2018 (“Annual Report”). Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP. The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. See the unaudited condensed consolidated financial statements of LCIF included within this Quarterly Report. The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of March 31, 2018 and December 31, 2017 , the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Real estate, net $ 650,084 $ 682,587 Total assets $ 698,201 $ 766,025 Mortgages and notes payable, net $ 212,965 $ 212,792 Total liabilities $ 220,940 $ 226,331 Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. Acquisition, Development and Construction Arrangements . The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. Reclassifications . Certain amounts included in the 2017 unaudited condensed consolidated financial statements have been reclassified to conform to the 2018 presentation. New Accounting Standards Adopted in 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. Restricted cash balances are now included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Restricted cash is comprised primarily of cash balances held in escrow by lenders. In addition, separate line items showing changes in restricted cash balances are now eliminated from the Company's consolidated statement of cash flows. These ASUs were effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted these ASUs effective January 1, 2018 on a retrospective basis. The effect of the adoption resulted in a $33,978 increase in cash provided by investing activities and an increase in cash used in financing activities of $1,572 for the three months ended March 31, 2017. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU was effective for reporting periods beginning after December 15, 2017. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018 on a prospective basis. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The new guidance was effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under previous GAAP. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the adoption of the ASU did not have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU was effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective approach. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements. Recently Issued Accounting Guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The Company expects the ASU to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components; however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption; however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Company expects to adopt this new guidance on January 1, 2019 and continues to evaluate the impact that this guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. |
LCIF [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
The Company and Financial Statement Presentation | The Partnership and Financial Statement Presentation Lepercq Corporate Income Fund L.P. (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Partnership”) was organized in 1986 as a limited partnership under the Delaware Revised Uniform Limited Partnership Act. The Partnership's sole general partner, Lex GP-1 Trust (the “General Partner”), is a wholly-owned subsidiary of Lexington Realty Trust (“Lexington”). The Partnership serves as an operating partnership subsidiary for Lexington. As of March 31, 2018 , Lexington, through Lex LP-1 Trust, a wholly-owned subsidiary, and the General Partner, owned approximately 96% of the outstanding units of the Partnership. As of March 31, 2018 , the Partnership had ownership interests in 31 consolidated real estate properties, located in 20 states. The properties in which the Partnership has an interest are leased to tenants in various industries. The assets and credit of each property owner subsidiary of the Partnership with a property subject to a mortgage loan are not available to creditors to satisfy the debt and the other obligations of any other person, including any other property owner subsidiary of the Partnership or any other 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 or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors. The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three months ended March 31, 2018 have been prepared by the Partnership in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Partnership's audited consolidated financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 27, 2018 (“Annual Report”). Basis of Presentation and Consolidation. The Partnership's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities that the Partnership does not control and entities that are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP. Earnings Per Unit . Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of operating partnership units, or OP units, outstanding during the period. There are no potential dilutive securities. Unit Redemptions . The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for shares of beneficial interests classified as common stock of Lexington, par value $0.0001 per share ("common shares"), on a one to approximately 1.13 basis, subject to future adjustments. These units are not mandatorily redeemable by the Partnership. As of March 31, 2018 , Lexington's common shares had a closing price of $7.87 per share. The estimated fair value of these units was $28,561 , assuming all outstanding limited partner units not held by Lexington were redeemed on such date. Allocation of Overhead Expenses . The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues. Distributions; Allocations of Income and Loss . As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss. The Partnership paid or accrued gross distributions of $14,952 ( $0.19 per weighted-average unit) and $16,916 ( $0.20 per weighted-average unit) to its partners during the three months ended March 31, 2018 and 2017 , respectively. Use of Estimates. The Partnership has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates. Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of such obligations as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Reclassifications . Certain amounts included in the 2017 unaudited condensed consolidated financial statements have been reclassified to conform to the 2018 presentation. New Accounting Standards Adopted in 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. Restricted cash balances are now included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Restricted cash is comprised primarily of cash balances held in escrows by lenders. In addition, separate line items showing changes in restricted cash balances are now eliminated from the Partnership's consolidated statement of cash flows. These ASUs were effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Partnership adopted these ASUs effective January 1, 2018 on a retrospective basis. The Partnership's adoption of this guidance did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU was effective for reporting periods beginning after December 15, 2017. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Partnership adopted this guidance effective January 1, 2018 on a prospective basis. The Partnership's adoption of this guidance did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The new guidance was effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under previous GAAP. The Partnership adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the adoption of the ASU did not have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective approach. The Partnership's adoption of this guidance did not have a material impact on its consolidated financial statements. Recently Issued Accounting Guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Partnership expects to adopt this new guidance on January 1, 2019 and continues to evaluate the impact that this guidance will have on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2018 and 2017 : Three Months ended March 31, 2018 2017 BASIC Net income (loss) attributable to common shareholders $ (15,957 ) $ 40,397 Weighted-average number of common shares outstanding - basic 238,072,081 237,179,526 Net income (loss) attributable to common shareholders - per common share basic $ (0.07 ) $ 0.17 DILUTED Net income (loss) attributable to common shareholders - basic $ (15,957 ) $ 40,397 Impact of assumed conversions — (19 ) Net income (loss) attributable to common shareholders $ (15,957 ) $ 40,378 Weighted-average common shares outstanding - basic 238,072,081 237,179,526 Effect of dilutive securities: Share options — 136,881 OP Units — 3,771,642 Weighted-average common shares outstanding - diluted 238,072,081 241,088,049 Net income (loss) attributable to common shareholders - per common share diluted $ (0.07 ) $ 0.17 For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods. |
Dispositions and Impairment
Dispositions and Impairment | 3 Months Ended |
Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Dispositions and Impairment | Dispositions and Impairment During the three months ended March 31, 2018 and 2017 , the Company disposed of its interests in various properties for an aggregate gross sale price of $62,675 and $92,756 , respectively, and recognized aggregate gains on sales of properties of $22,774 and $34,193 , respectively. As of March 31, 2018 , the Company had no properties classified as held for sale. At December 31, 2017 , the Company had one retail property classified as held for sale. Assets held for sale as of December 31, 2017 consisted of $2,827 of real estate, at cost. The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered. During the three months ended March 31, 2018 and 2017 , the Company recognized aggregate impairment charges on real estate properties of $53,049 and $2,698 , respectively. Included in the impairment charges recognized during the three months ended March 31, 2018 , are impairment charges of $17,906 recognized on an office property in Overland Park, Kansas, and $25,433 on an unencumbered office property in Memphis, Tennessee. The Overland Park, Kansas property is encumbered at March 31, 2018 by a $32,591 non-recourse mortgage loan, which is $19,366 in excess of the property's estimated fair value. In February 2017, the Company recognized a $5,294 loan loss on the assignment of a loan receivable secured by a hospital in Kennewick, Washington. |
LCIF [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Dispositions and Impairment | Dispositions and Impairment During the three months ended March 31, 2018 , the Partnership disposed of its interest in an industrial property for a gross sale price of $2,300 and recognized a gain on sale of $930 . During the three months ended March 31, 2017 , the Partnership sold its interest in a vacant office property for a gross sale price of $4,130 and recognized an impairment charge of $2,497 . The Partnership assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Partnership estimates that its cost will not be recovered. During the three months ended March 31, 2018 , the Partnership recognized aggregate impairment charges on real estate properties of $22,730 . Included in the impairment charges recognized during the three months ended March 31, 2018 , is an impairment charge of $17,906 recognized on an office property in Overland Park, Kansas. The office property is encumbered at March 31, 2018 by a $32,591 non-recourse mortgage loan, which is $19,366 in excess of the property's estimated fair value. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2018 and December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description March 31, 2018 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 1,311 $ — $ 1,311 $ — Impaired real estate assets* $ 75,207 $ — $ — $ 75,207 Balance Fair Value Measurements Using Description December 31, 2017 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 1,065 $ — $ 1,065 $ — Impaired real estate assets* $ 7,829 $ — $ — $ 7,829 *Represents a non-recurring fair value measurement, including assets held for sale. Fair value as of the date of impairment. The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of March 31, 2018 and December 31, 2017 . As of March 31, 2018 As of December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities Debt $ 2,002,579 $ 1,945,604 $ 2,068,867 $ 2,013,226 The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of March 31, 2018 and December 31, 2017 , the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps have been classified in Level 2 of the fair value hierarchy. The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated. The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates, except for the Company's senior notes payable. The Company determines the fair value of its senior notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low. Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts. Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable . The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments. |
LCIF [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Partnership's assets measured at fair value as of March 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description March 31, 2018 (Level 1) (Level 2) (Level 3) Impaired real estate assets* $ 17,594 $ — $ — $ 17,594 * Represents a non-recurring fair value measurement as of the date of impairment. The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of March 31, 2018 and December 31, 2017 : As of March 31, 2018 As of December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities Debt $ 360,657 $ 342,989 $ 370,581 $ 352,806 The Partnership estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Partnership may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Partnership has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Partnership under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated. The fair value of the Partnership's debt is primarily estimated utilizing Level 3 inputs by using an estimated discounted cash flow analysis, based upon estimates of market interest rates. Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts. Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable . The Partnership estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments. |
Investment in and Advances to N
Investment in and Advances to Non-Consolidated Entities | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Investment in and Advances to Non-Consolidated Entities | Investment in and Advances to Non-Consolidated Entities As of March 31, 2018 , the Company had ownership interests ranging from 15% to 25% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $96,299 at March 31, 2018 (the Company's proportionate share was $20,816 ). In addition, in 2017, the Company formed a non-consolidated joint venture with a developer to pursue industrial build-to-suit opportunities. The Company's initial contribution to this joint venture of $5,831 was used to acquire a 151 -acre parcel of developable land. In February 2017 , the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198 . The Company recognized a gain of $1,452 in connection with the sale, which is included in equity in earnings of non-consolidated entities. In addition, in February 2017, the Company collected $8,420 in full satisfaction of a loan to the other tenant-in-common. In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of March 31, 2018 , the Company had a 25% equity interest in the joint venture. The joint venture completed the project during 2016 for a total construction cost of $79,964 . The Company was contractually obligated to provide construction financing to the joint venture up to $56,686 . During 2017, the Company received $49,085 in full satisfaction of the construction financing from the proceeds of a $50,000 third-party financing. |
LCIF [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Investment in and Advances to Non-Consolidated Entities | Investments in and Advances to Non-Consolidated Entities In July 2014, the Partnership acquired a 1.0% interest in an office property in Philadelphia, Pennsylvania for $263 . The Partnership accounts for this investment under the cost basis of accounting. On September 1, 2012, the Partnership acquired a 2% equity interest in Net Lease Strategic Assets Fund L.P. (“NLS”) for cash of $189 and the issuance of 457,211 limited partner units to Lexington. The Partnership's carrying value in NLS at March 31, 2018 and December 31, 2017 was $5,639 and $6,175 , respectively. The Partnership recognized net income from NLS of $247 and $97 in equity in earnings from non-consolidated entities during the three months ended March 31, 2018 and 2017 , respectively. The Partnership contributed $175 to NLS during the three months ended March 31, 2017 . In addition, the Partnership received distributions of $783 and $250 from NLS during the three months ended March 31, 2018 and 2017 , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Instrument [Line Items] | |
Debt | Debt The Company had the following mortgages and notes payable outstanding as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Mortgages and notes payable $ 690,074 $ 697,068 Unamortized debt issuance costs (7,080 ) (7,258 ) $ 682,994 $ 689,810 Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at March 31, 2018 and December 31, 2017 and all mortgages and notes payables mature between 2018 and 2036 as of March 31, 2018 . The weighted-average interest rate was 4.6% at March 31, 2018 and December 31, 2017 . The Company had the following senior notes outstanding as of March 31, 2018 and December 31, 2017 : Issue Date March 31, 2018 December 31, 2017 Interest Rate Maturity Date Issue Price May 2014 $ 250,000 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 250,000 4.25 % June 2023 99.026 % 500,000 500,000 Unamortized discount (1,439 ) (1,507 ) Unamortized debt issuance cost (3,154 ) (3,295 ) $ 495,407 $ 495,198 Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. The Company has a $1,105,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000 . A summary of the significant terms are as follows: Current $505,000 Revolving Credit Facility (1) August 2019 LIBOR + 1.00% $300,000 Term Loan (2)(4) August 2020 LIBOR + 1.10% $300,000 Term Loan (3)(4) January 2021 LIBOR + 1.10% (1) Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% . At March 31, 2018 , the revolving credit facility had $100,000 borrowings outstanding and availability of $405,000 , subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings. (4) The aggregate unamortized debt issuance costs for the term loans were $3,043 and $3,337 as of March 31, 2018 and December 31, 2017 , respectively. The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at March 31, 2018 . During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at March 31, 2018 was 3.5% . As of March 31, 2018 and December 31, 2017 , there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,899 and $1,924 , respectively, of unamortized debt issuance costs. |
LCIF [Member] | |
Debt Instrument [Line Items] | |
Debt | Mortgages and Notes Payable and Co-Borrower Debt The Partnership had the following mortgages and notes payable outstanding as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Mortgages and notes payable $ 214,458 $ 214,303 Unamortized debt issuance costs (1,493 ) (1,511 ) $ 212,965 $ 212,792 Interest rates, including imputed rates, ranged from 4.0% to 6.5% at March 31, 2018 and December 31, 2017 , and the mortgages and notes payable mature between 2019 and 2033. The weighted-average interest rate at March 31, 2018 and December 31, 2017 was approximately 4.8% . Lexington, and the Partnership as co-borrower, have a $1,105,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, Lexington can increase the size of the amended facility to an aggregate $2,010,000 . A summary of the significant terms are as follows: Maturity Date Current $505,000 Revolving Credit Facility (1) August 2019 LIBOR + 1.00% $300,000 Term Loan (2) August 2020 LIBOR + 1.10% $300,000 Term Loan (3) January 2021 LIBOR + 1.10% (1) Maturity date can be extended to August 2020 at Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% . At March 31, 2018 , the revolving credit facility had $100,000 of borrowings outstanding and availability of $405,000 subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% . Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% . Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings. Lexington was in compliance with all applicable financial covenants contained in its corporate level debt agreements at March 31, 2018 . In accordance with the guidance of ASC 405-40, the Partnership, as it is a co-borrower with Lexington, recognizes a proportion of the outstanding amounts of the above-mentioned term loans and revolving credit facility as co-borrower debt in the accompanying unaudited condensed consolidated balances sheets. In accordance with the Partnership’s partnership agreement, the Partnership is allocated a portion of these debts based on gross rental revenues, which represents its agreed to obligation. The Partnership's allocated co-borrower debt was $147,692 and $157,789 as of March 31, 2018 and December 31, 2017 , respectively. Non-cash changes in co-borrower debt are recognized in partners’ capital in the accompanying unaudited condensed consolidated statements of changes in partners’ capital. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Risk Management Objective of Using Derivatives . The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings. Cash Flow Hedges of Interest Rate Risk . The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable-rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the three months ended March 31, 2018 and 2017 . As of March 31, 2018 , the Company has designated the interest-rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rate on $255,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the term loans. During the next 12 months, the Company estimates that an additional $1,311 will be reclassified as a decrease to interest expense. As of March 31, 2018 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 5 $255,000 The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 . As of March 31, 2018 As of December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 1,311 Other Assets $ 1,065 The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017 . Derivatives in Cash Flow Amount of Income Recognized in OCI on Derivatives (Effective Portion) March 31, Location of (Income) Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of (Income) Loss Reclassified from Accumulated OCI into Income (Effective Portion) March 31, Hedging Relationships 2018 2017 2018 2017 Interest Rate Swaps $ 494 $ 688 Interest expense $ (248 ) $ 604 The Company's agreements with swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of March 31, 2018 , the Company had not posted any collateral related to the agreements. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2018 | |
Concentration Risk [Line Items] | |
Concentration of Risk | Concentration of Risk The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the three months ended March 31, 2018 and 2017 , no single tenant represented greater than 10% of rental revenues. Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. |
LCIF [Member] | |
Concentration Risk [Line Items] | |
Concentration of Risk | Concentration of Risk Subject to the terms of the partnership agreement, the Partnership seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the three months ended March 31, 2018 and 2017 , the following tenants represented greater than 10% of rental revenues: 2018 2017 Preferred Freezer Services of Richland, LLC 16.5 % 19.0 % Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Partnership believes it mitigates this risk by investing in or through major financial institutions. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity | Equity Shareholders' Equity. During the three months ended March 31, 2017 , the Company issued 1,593,603 common shares under its At-The-Market offering program and generated aggregate gross proceeds of $17,362 . During the three months ended March 31, 2018 and 2017 , the Company granted common shares to certain employees as follows: Three Months ended March 31, 2018 2017 Performance Shares (1) Shares granted: Index - 1Q 331,025 106,706 Peer - 1Q 331,019 106,705 Grant date fair value per share: (2) Index - 1Q $5.81 $6.82 Peer - 1Q $5.37 $6.34 Non-Vested Common Shares: (3) Shares issued 237,570 237,560 Grant date fair value $2,190 $2,551 (1) The shares vest based on the Company's total shareholder return growth after a three -year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2018 , 116,926 of the 642,029 performance shares issued in 2015 vested. (2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model. (3) The shares vest ratably over a three -year service period. In addition, during the three months ended March 31, 2018 and 2017 , the Company issued 35,581 and 30,070 , respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $337 and $318 , respectively. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. During the three months ended March 31, 2018 , the Company repurchased and retired 795,775 common shares, at an average price of $7.94 per common share. No repurchases occurred during the three months ended March 31, 2017 . A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows: Three Months ended March 31, 2018 2017 Balance at beginning of period $ 1,065 $ (1,033 ) Other comprehensive income before reclassifications 494 688 Amounts of (income) loss reclassified from accumulated other comprehensive income (loss) to interest expense (248 ) 604 Balance at end of period $ 1,311 $ 259 Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments. As of March 31, 2018 , there were approximately 3,223,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transaction [Line Items] | |
Related Party Transactions | Related Party Transactions In connection with efforts to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provided that the Company would reimburse investors providing the funds for such financing if the following occurred: (1) the joint venture received such funds, (2) the USCIS denied the financing solely because the project was not permitted under the EB-5 visa program, and (3) the joint venture failed to return such funds. During 2017, USCIS approved the project, and the guaranty terminated by its terms. The joint venture is still pursuing the mezzanine financing. In addition, during 2017, the Company obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina owned by LCIF. In January 2018, the Company obtained an additional $500 of financing proceeds. The Company reimbursed the Chairman's affiliate approximately $105 for its expenses and paid a $128 structuring fee to the Chairman's affiliate. The loan may be increased to $12,000 upon certain events. There were no other related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report. |
LCIF [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transactions | Related Party Transactions The Partnership had the following related party transactions in addition to related party transactions discussed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report. The Partnership had outstanding net advances owed to Lexington of $2,476 and $2,422 as of March 31, 2018 and December 31, 2017 , respectively. The advances are payable on demand. Lexington earned distributions of $14,340 and $16,287 during the three months ended March 31, 2018 and 2017 , respectively. The Partnership was allocated interest expense by Lexington, in accordance with the partnership agreement, relating to certain lending facilities of $2,369 and $1,811 for the three months ended March 31, 2018 and 2017 , respectively. Lexington, on behalf of the General Partner, pays for certain general administrative and other costs on behalf of the Partnership from time to time. These costs are reimbursable by the Partnership. These costs were approximately $1,744 and $1,418 for the three months ended March 31, 2018 and 2017 , respectively. A Lexington affiliate provides property management services for certain Partnership properties. The Partnership recognized property operating expenses of $156 and $170 for the three months ended March 31, 2018 and 2017 , respectively, for aggregate fees charged by the affiliate. In addition, during 2017, the Partnership obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of Lexington's Chairman, who is also the holder of the most OP units other than Lexington, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina. In January 2018, the Partnership obtained an additional $500 of financing proceeds. The Partnership reimbursed the Chairman's affiliate approximately $105 for its expenses and paid the Chairman's affiliate a $128 structuring fee. The loan may be increased to $12,000 upon certain events. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Line Items] | |
Commitments and Contingencies | Commitments and Contingencies In addition to the commitments and contingencies disclosed elsewhere and previously disclosed, the Company has the following commitments and contingencies. The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries. The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion, but no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement. From time to time, the Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations. |
LCIF [Member] | |
Commitments and Contingencies [Line Items] | |
Commitments and Contingencies | Commitments and Contingencies In addition to the commitments and contingencies disclosed elsewhere, the Partnership has the following commitments and contingencies. The Partnership is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Partnership, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries. The Partnership and Lexington are parties to a funding agreement under which Lexington may be required to fund distributions made on account of OP units. Pursuant to the funding agreement, if the Partnership does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington is required to fund the shortfall. Payments under the agreement will be made in the form of loans to the Partnership and will bear interest at prevailing rates as determined by Lexington in its discretion, but no less than the applicable federal rate. The Partnership's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts had been advanced under this funding agreement. The Partnership has guaranteed $250,000 aggregate principal amount of 4.40% Senior Notes due 2024 (“2024 Senior Notes”) issued by Lexington at an issuance price of 99.883% of the principal amount and $250,000 aggregate principal amount of 4.25% Senior Notes due 2023 (“2023 Senior Notes”) issued by Lexington at an issuance price of 99.026% of the principal amount, collectively referred to as the Senior Notes. The Senior Notes are unsecured and pay interest semi-annually in arrears. Lexington may redeem the Senior Notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. From time to time, the Partnership is directly or indirectly involved in legal proceedings arising in the ordinary course of the Partnership's business. The Partnership believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Partnership's business, financial condition and results of operations. |
Supplemental Disclosure of Stat
Supplemental Disclosure of Statement of Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information In addition to disclosures discussed elsewhere, during the three months ended March 31, 2018 and 2017 , the Company paid $13,633 and $14,351 , respectively, for interest and $195 and $548 , respectively, for income taxes. |
LCIF [Member] | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information In addition to disclosures discussed elsewhere, during the three months ended March 31, 2018 and 2017 , the Partnership paid $4,821 and $3,869 , respectively, for interest and $27 and $45 , respectively, for income taxes. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to March 31, 2018 and in addition to disclosures elsewhere in the unaudited condensed consolidated financial statements, the Company: • acquired two industrial properties in Olive Branch, Mississippi for an aggregate cost of $92,512 , which were fully financed with borrowings under the revolving credit facility; and • obtained $25,850 non-recourse mortgage financing with a fixed rate of 5.4% , which matures in November 2032 and is secured by an industrial property in Warren, Michigan. |
The Company and Financial Sta22
The Company and Financial Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of presentation and consolidation | Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. |
Variable interest entity | The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP. The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. |
Use of estimates | Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. |
Fair value measurements | Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. |
Acquisition, development and construction arrangements | Acquisition, Development and Construction Arrangements . The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. |
Reclassifications | Reclassifications . Certain amounts included in the 2017 unaudited condensed consolidated financial statements have been reclassified to conform to the 2018 presentation. |
Recently issued accounting guidance | New Accounting Standards Adopted in 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. Restricted cash balances are now included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Restricted cash is comprised primarily of cash balances held in escrow by lenders. In addition, separate line items showing changes in restricted cash balances are now eliminated from the Company's consolidated statement of cash flows. These ASUs were effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted these ASUs effective January 1, 2018 on a retrospective basis. The effect of the adoption resulted in a $33,978 increase in cash provided by investing activities and an increase in cash used in financing activities of $1,572 for the three months ended March 31, 2017. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU was effective for reporting periods beginning after December 15, 2017. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018 on a prospective basis. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The new guidance was effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under previous GAAP. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the adoption of the ASU did not have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU was effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective approach. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements. Recently Issued Accounting Guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The Company expects the ASU to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components; however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption; however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Company expects to adopt this new guidance on January 1, 2019 and continues to evaluate the impact that this guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. |
LCIF [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of presentation and consolidation | Basis of Presentation and Consolidation. The Partnership's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities that the Partnership does not control and entities that are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP. |
Earnings per unit | Earnings Per Unit . Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of operating partnership units, or OP units, outstanding during the period. There are no potential dilutive securities. |
Unit redemptions | Unit Redemptions . The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for shares of beneficial interests classified as common stock of Lexington, par value $0.0001 per share ("common shares"), on a one to approximately 1.13 basis, subject to future adjustments. These units are not mandatorily redeemable by the Partnership. |
Allocation of overhead expenses | Allocation of Overhead Expenses . The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues. |
Distributions and allocations of income and loss | Distributions; Allocations of Income and Loss . As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss. |
Use of estimates | Use of Estimates. The Partnership has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates. |
Fair value measurements | Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. |
Acquisition, development and construction arrangements | Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. |
Co-borrower debt | Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of such obligations as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. |
Reclassifications | Reclassifications . Certain amounts included in the 2017 unaudited condensed consolidated financial statements have been reclassified to conform to the 2018 presentation. |
Recently issued accounting guidance | New Accounting Standards Adopted in 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. Restricted cash balances are now included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Restricted cash is comprised primarily of cash balances held in escrows by lenders. In addition, separate line items showing changes in restricted cash balances are now eliminated from the Partnership's consolidated statement of cash flows. These ASUs were effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Partnership adopted these ASUs effective January 1, 2018 on a retrospective basis. The Partnership's adoption of this guidance did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU was effective for reporting periods beginning after December 15, 2017. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Partnership adopted this guidance effective January 1, 2018 on a prospective basis. The Partnership's adoption of this guidance did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The new guidance was effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under previous GAAP. The Partnership adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the adoption of the ASU did not have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective approach. The Partnership's adoption of this guidance did not have a material impact on its consolidated financial statements. Recently Issued Accounting Guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Partnership expects to adopt this new guidance on January 1, 2019 and continues to evaluate the impact that this guidance will have on its consolidated financial statements. |
The Company and Financial Sta23
The Company and Financial Statement Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of Variable Interest Entities | Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Real estate, net $ 650,084 $ 682,587 Total assets $ 698,201 $ 766,025 Mortgages and notes payable, net $ 212,965 $ 212,792 Total liabilities $ 220,940 $ 226,331 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2018 and 2017 : Three Months ended March 31, 2018 2017 BASIC Net income (loss) attributable to common shareholders $ (15,957 ) $ 40,397 Weighted-average number of common shares outstanding - basic 238,072,081 237,179,526 Net income (loss) attributable to common shareholders - per common share basic $ (0.07 ) $ 0.17 DILUTED Net income (loss) attributable to common shareholders - basic $ (15,957 ) $ 40,397 Impact of assumed conversions — (19 ) Net income (loss) attributable to common shareholders $ (15,957 ) $ 40,378 Weighted-average common shares outstanding - basic 238,072,081 237,179,526 Effect of dilutive securities: Share options — 136,881 OP Units — 3,771,642 Weighted-average common shares outstanding - diluted 238,072,081 241,088,049 Net income (loss) attributable to common shareholders - per common share diluted $ (0.07 ) $ 0.17 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value Measurement Inputs | The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2018 and December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description March 31, 2018 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 1,311 $ — $ 1,311 $ — Impaired real estate assets* $ 75,207 $ — $ — $ 75,207 Balance Fair Value Measurements Using Description December 31, 2017 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 1,065 $ — $ 1,065 $ — Impaired real estate assets* $ 7,829 $ — $ — $ 7,829 *Represents a non-recurring fair value measurement, including assets held for sale. Fair value as of the date of impairment. |
Schedule of Carrying Amounts and Fair Value of Financial Instruments | The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of March 31, 2018 and December 31, 2017 . As of March 31, 2018 As of December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities Debt $ 2,002,579 $ 1,945,604 $ 2,068,867 $ 2,013,226 |
LCIF [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value Measurement Inputs | The following table presents the Partnership's assets measured at fair value as of March 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description March 31, 2018 (Level 1) (Level 2) (Level 3) Impaired real estate assets* $ 17,594 $ — $ — $ 17,594 * Represents a non-recurring fair value measurement as of the date of impairment. |
Schedule of Carrying Amounts and Fair Value of Financial Instruments | The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of March 31, 2018 and December 31, 2017 : As of March 31, 2018 As of December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities Debt $ 360,657 $ 342,989 $ 370,581 $ 352,806 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments | The Company had the following mortgages and notes payable outstanding as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Mortgages and notes payable $ 690,074 $ 697,068 Unamortized debt issuance costs (7,080 ) (7,258 ) $ 682,994 $ 689,810 |
Debt Instrument Redemption | The Company had the following senior notes outstanding as of March 31, 2018 and December 31, 2017 : Issue Date March 31, 2018 December 31, 2017 Interest Rate Maturity Date Issue Price May 2014 $ 250,000 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 250,000 4.25 % June 2023 99.026 % 500,000 500,000 Unamortized discount (1,439 ) (1,507 ) Unamortized debt issuance cost (3,154 ) (3,295 ) $ 495,407 $ 495,198 |
Schedule of Line of Credit Facilities | A summary of the significant terms are as follows: Current $505,000 Revolving Credit Facility (1) August 2019 LIBOR + 1.00% $300,000 Term Loan (2)(4) August 2020 LIBOR + 1.10% $300,000 Term Loan (3)(4) January 2021 LIBOR + 1.10% (1) Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% . At March 31, 2018 , the revolving credit facility had $100,000 borrowings outstanding and availability of $405,000 , subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings. (4) The aggregate unamortized debt issuance costs for the term loans were $3,043 and $3,337 as of March 31, 2018 and December 31, 2017 , respectively. |
LCIF [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments | The Partnership had the following mortgages and notes payable outstanding as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Mortgages and notes payable $ 214,458 $ 214,303 Unamortized debt issuance costs (1,493 ) (1,511 ) $ 212,965 $ 212,792 |
Schedule of Line of Credit Facilities | A summary of the significant terms are as follows: Maturity Date Current $505,000 Revolving Credit Facility (1) August 2019 LIBOR + 1.00% $300,000 Term Loan (2) August 2020 LIBOR + 1.10% $300,000 Term Loan (3) January 2021 LIBOR + 1.10% (1) Maturity date can be extended to August 2020 at Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% . At March 31, 2018 , the revolving credit facility had $100,000 of borrowings outstanding and availability of $405,000 subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% . Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% . Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings. |
Derivatives and Hedging Activ27
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges | As of March 31, 2018 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 5 $255,000 |
Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 . As of March 31, 2018 As of December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 1,311 Other Assets $ 1,065 |
Effect of the Company's Derivative Financial Instruments on the Statements of Operation | The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017 . Derivatives in Cash Flow Amount of Income Recognized in OCI on Derivatives (Effective Portion) March 31, Location of (Income) Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of (Income) Loss Reclassified from Accumulated OCI into Income (Effective Portion) March 31, Hedging Relationships 2018 2017 2018 2017 Interest Rate Swaps $ 494 $ 688 Interest expense $ (248 ) $ 604 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
LCIF [Member] | |
Concentration Risk [Line Items] | |
Schedule of Concentration of Risk | For the three months ended March 31, 2018 and 2017 , the following tenants represented greater than 10% of rental revenues: 2018 2017 Preferred Freezer Services of Richland, LLC 16.5 % 19.0 % |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Common Stock Granted | During the three months ended March 31, 2018 and 2017 , the Company granted common shares to certain employees as follows: Three Months ended March 31, 2018 2017 Performance Shares (1) Shares granted: Index - 1Q 331,025 106,706 Peer - 1Q 331,019 106,705 Grant date fair value per share: (2) Index - 1Q $5.81 $6.82 Peer - 1Q $5.37 $6.34 Non-Vested Common Shares: (3) Shares issued 237,570 237,560 Grant date fair value $2,190 $2,551 (1) The shares vest based on the Company's total shareholder return growth after a three -year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2018 , 116,926 of the 642,029 performance shares issued in 2015 vested. (2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model. (3) The shares vest ratably over a three -year service period. |
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows: Three Months ended March 31, 2018 2017 Balance at beginning of period $ 1,065 $ (1,033 ) Other comprehensive income before reclassifications 494 688 Amounts of (income) loss reclassified from accumulated other comprehensive income (loss) to interest expense (248 ) 604 Balance at end of period $ 1,311 $ 259 |
The Company and Financial Sta30
The Company and Financial Statement Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)stateProperty$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2017$ / shares | |
Variable Interest Entity [Line Items] | |||
Number of properties | Property | 170 | ||
Number of states in which entity has interests | state | 37 | ||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Partners capital equivalent in common shares | 1.13 | ||
Net cash provided by investing activities | $ 51,237 | $ 101,264 | |
Net cash provided by financing activities | $ (121,921) | (35,632) | |
Accounting Standards Update 2016-15 [Member] | |||
Variable Interest Entity [Line Items] | |||
Net cash provided by investing activities | 33,978 | ||
Net cash provided by financing activities | 1,572 | ||
LCIF [Member] | |||
Variable Interest Entity [Line Items] | |||
Percentage of outstanding units owned | 96.00% | ||
Number of properties | Property | 31 | ||
Number of states in which entity has interests | state | 20 | ||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Partners capital equivalent in common shares | 1.13 | ||
Distributions | $ 14,952 | $ 16,916 | |
Distribution per weighted average unit (in dollars per share) | $ / shares | $ 0.19 | $ 0.20 | |
Net cash provided by investing activities | $ (1,638) | $ (5,534) | |
Net cash provided by financing activities | $ (44,776) | $ (9,362) | |
LCIF [Member] | Limited Partner [Member] | |||
Variable Interest Entity [Line Items] | |||
Share price (in dollars per share) | $ / shares | $ 7.87 | ||
Equity, fair value disclosure, portion of limited partner | $ 28,561 | ||
Variable Interest Entity, Primary Beneficiary [Member] | LCIF [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership percentage | 96.00% |
The Company and Financial Sta31
The Company and Financial Statement Presentation - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Real estate, net | $ 3,178,846 | $ 3,309,900 |
Total assets | 3,411,996 | 3,553,020 |
Mortgages and notes payable, net | 682,994 | 689,810 |
Total liabilities | 2,137,612 | 2,212,185 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Real estate, net | 650,084 | 682,587 |
Total assets | 698,201 | 766,025 |
Mortgages and notes payable, net | 212,965 | 212,792 |
Total liabilities | $ 220,940 | $ 226,331 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
BASIC | ||
Net income (loss) attributable to common shareholders | $ (15,957) | $ 40,397 |
Weighted-average number of common shares outstanding - basic | 238,072,081 | 237,179,526 |
Income (loss) per common share: | ||
Net income (loss) attributable to common shares outstanding - basic (in dollars per share) | $ (0.07) | $ 0.17 |
DILUTED | ||
Impact of assumed conversions | $ 0 | $ (19) |
Net income (loss) attributable to common shareholders | $ (15,957) | $ 40,378 |
Effect of dilutive securities: | ||
Share options (in shares) | 0 | 136,881 |
OP Units (in shares) | 0 | 3,771,642 |
Weighted-average common shares outstanding (in shares) | 238,072,081 | 241,088,049 |
Income (loss) per common share: | ||
Net income (loss) attributable to common shareholders - per common share diluted (in dollars per share) | $ (0.07) | $ 0.17 |
Dispositions and Impairment - A
Dispositions and Impairment - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2017USD ($) | Mar. 31, 2018USD ($)property | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of properties | $ 61,518 | $ 90,823 | ||
Number of real estate properties held for sale | property | 0 | 1 | ||
Assets held for sale | $ 2,827 | |||
Real estate impairment charges | $ 53,049 | 2,698 | ||
Asset impairment charges | 53,049 | 7,992 | ||
Impairment losses related to real estate partnerships | $ 5,294 | |||
Overland Park, Kansas [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment charges | 17,906 | |||
Mortgage loans on real estate | 32,591 | |||
Amount in excess of fair value | 19,366 | |||
Memphis, Tennessee [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment charges | 25,433 | |||
Transferred Property [Member] | Office Building [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Aggregate gross disposition price | 62,675 | 92,756 | ||
Sold Properties [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of properties | 22,774 | 34,193 | ||
LCIF [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of properties | 2,101 | 3,889 | ||
Asset impairment charges | 22,730 | 2,497 | ||
LCIF [Member] | Overland Park, Kansas [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment charges | 17,906 | |||
Mortgage loans on real estate | 32,591 | |||
Amount in excess of fair value | 19,366 | |||
LCIF [Member] | Industrial Property [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of properties | 2,300 | |||
Loss (gain) on sale | $ (930) | |||
LCIF [Member] | Office Building [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of properties | 4,130 | |||
Loss (gain) on sale | $ 2,497 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | $ 1,311 | $ 1,065 |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 1,311 | 1,065 |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 75,207 | 7,829 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 75,207 | $ 7,829 |
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 17,594 | |
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 0 | |
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | 0 | |
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired real estate assets | $ 17,594 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - Fair Value Measurements Using Level 3 [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
Liabilities | ||
Carrying value of debt | $ 2,002,579 | $ 2,068,867 |
Carrying Amount [Member] | LCIF [Member] | ||
Liabilities | ||
Carrying value of debt | 360,657 | 370,581 |
Fair Value [Member] | ||
Liabilities | ||
Fair value of debt | 1,945,604 | 2,013,226 |
Fair Value [Member] | LCIF [Member] | ||
Liabilities | ||
Fair value of debt | $ 342,989 | $ 352,806 |
Investment in and Advances to36
Investment in and Advances to Non-Consolidated Entities (Details) | Sep. 01, 2012USD ($)shares | Feb. 28, 2017USD ($) | Jul. 31, 2014USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)a | Dec. 31, 2016USD ($) | Jan. 31, 2017 |
Investments in and Advances to Affiliates [Line Items] | ||||||||
Non-recourse debt | $ 96,299,000 | |||||||
Investment in joint venture | 0 | $ 1,293,000 | ||||||
Equity in earnings of non-consolidated entities | 113,000 | 1,910,000 | ||||||
Joint Venture [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Payments to acquire interest in joint venture | $ 5,831,000 | |||||||
Area of real estate property (in acres) | a | 151 | |||||||
Houston, TX [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Proceeds from divestiture of interest in joint venture | $ 49,085,000 | |||||||
Construction cost | $ 79,964,000 | |||||||
Maximum construction financing | $ 56,686,000 | |||||||
Houston, TX [Member] | Joint Venture [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Ownership percentage | 25.00% | |||||||
Lexington Realty Trust [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Non-recourse debt | $ 20,816,000 | |||||||
LCIF [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Investment in joint venture | 0 | 175,000 | ||||||
Equity in earnings of non-consolidated entities | 252,000 | 100,000 | ||||||
LCIF [Member] | Net Lease Strategic Assets Fund L.P. [Member] | Equity Method Investments [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Ownership percentage | 2.00% | |||||||
Investment in joint venture | $ 189,000 | |||||||
Limited partners' capital account, units issued (in units) | shares | 457,211 | |||||||
Partnership carrying value in NLS | 5,639,000 | 6,175,000 | ||||||
Equity in earnings of non-consolidated entities | 247,000 | 97,000 | ||||||
Contributions to equity method investment | 175,000 | |||||||
Distributions received | $ 783,000 | $ 250,000 | ||||||
LCIF [Member] | Office Building [Member] | Philadelphia, Pennsylvania [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Ownership percentage | 1.00% | |||||||
Investment in non-consolidated entity | $ 263,000 | |||||||
Joint Venture [Member] | Houston, TX [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Face amount of debt instrument | $ 50,000,000 | |||||||
Minimum [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Ownership percentage | 15.00% | |||||||
Maximum [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Ownership percentage | 25.00% | |||||||
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Ownership percentage | 40.00% | |||||||
Proceeds from divestiture of interest in joint venture | $ 6,198,000 | |||||||
Gain on sale of properties | 1,452,000 | |||||||
Proceeds from collection of loans receivable | $ 8,420,000 |
Debt - Schedule of Mortgages an
Debt - Schedule of Mortgages and Notes Payable (Details) - Mortgages and Notes Payable [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Mortgages and notes payable | $ 690,074 | $ 697,068 |
Unamortized debt issuance costs | (7,080) | (7,258) |
Long-term debt | 682,994 | 689,810 |
LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Mortgages and notes payable | 214,458 | 214,303 |
Unamortized debt issuance costs | (1,493) | (1,511) |
Long-term debt | $ 212,965 | $ 212,792 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 11 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2007 | |
LCIF [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 4.80% | 4.80% | ||
Co-borrower debt | $ 147,692,000 | $ 157,789,000 | ||
Minimum [Member] | LCIF [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.00% | 4.00% | ||
Maximum [Member] | LCIF [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.50% | 6.50% | ||
Mortgages and Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 4.60% | 4.60% | ||
Mortgages and Notes Payable [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.20% | 2.20% | ||
Mortgages and Notes Payable [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 7.80% | 7.80% | ||
Unsecured Debt [Member] | Unsecured Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,105,000,000 | |||
Maximum borrowing capacity with lender approval | 2,010,000,000 | |||
Unsecured Debt [Member] | Unsecured Credit Agreement [Member] | LCIF [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,105,000,000 | |||
Maximum borrowing capacity with lender approval | 2,010,000,000 | |||
6.804% Trust Preferred Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.804% | |||
Face amount of debt instrument | $ 200,000,000 | |||
Unamortized debt issuance costs | $ 1,899,000 | $ 1,924,000 | ||
Interest rate, effective percentage | 3.50% | |||
Principal amount outstanding | $ 129,120,000 | $ 129,120,000 | ||
6.804% Trust Preferred Securities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.70% |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes [Member] - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 500,000,000 | $ 500,000,000 |
Unamortized discount | (1,439,000) | (1,507,000) |
Unamortized debt issuance costs | (3,154,000) | (3,295,000) |
Long-term debt | 495,407,000 | 495,198,000 |
Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | 250,000,000 |
Stated interest rate | 4.40% | |
Percentage of issuance price | 99.883% | |
Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | $ 250,000,000 |
Stated interest rate | 4.25% | |
Percentage of issuance price | 99.026% |
Debt - Schedule of Credit Agree
Debt - Schedule of Credit Agreement Terms (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Revolving credit facility borrowings | $ 100,000,000 | $ 160,000,000 |
Remaining borrowing capacity | 405,000,000 | |
LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Remaining borrowing capacity | $ 405,000,000 | |
Weighted average interest rate | 4.80% | 4.80% |
Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 3,043,000 | $ 3,337,000 |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.85% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.85% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 505,000,000 | |
Basis spread on variable rate | 1.00% | |
Revolving credit facility borrowings | $ 100,000,000 | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 505,000,000 | |
Basis spread on variable rate | 1.00% | |
Revolving credit facility borrowings | $ 100,000,000 | |
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Basis spread on variable rate | 1.10% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Basis spread on variable rate | 1.10% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.09% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.09% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Basis spread on variable rate | 1.10% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Basis spread on variable rate | 1.10% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.42% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.42% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 255,000,000 | |
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member] | LCIF [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 255,000,000 |
Derivatives and Hedging Activ41
Derivatives and Hedging Activities (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Financial_Instrument | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | |||
Expected amount of derivative related interest to be reclassified to interest expense over the next 12 months | $ 1,311,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Derivative asset | 1,311,000 | $ 1,065,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 255,000,000 | ||
Number of derivative instruments held | Financial_Instrument | 5 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | |||
Derivative [Line Items] | |||
Amount of income (loss) recognized in OCI on derivatives (effective portion) | $ 494,000 | $ 688,000 | |
Amount of (income) loss reclassified from accumulated OCI into income (effective portion) | $ (248,000) | $ 604,000 |
Concentration of Risk (Details)
Concentration of Risk (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
LCIF [Member] | Tenant Concentration Risk [Member] | Preferred Freezer Services of Richland, LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.50% | 19.00% |
Equity - Additional Information
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($)shares | Jul. 31, 2015shares | |
Equity [Line Items] | |||
Proceeds from issuance of common shares | $ | $ (2,917) | $ 16,168 | |
Authorized amount (in shares) | 10,000,000 | ||
Treasury stock acquired (in shares) | 795,775 | 0 | |
Treasury stock acquired, average cost (in dollars per share) | $ / shares | $ 7.94 | ||
OP unit equivalent in common shares | 1.13 | ||
Partners' capital account (in units) | 3,223,000 | ||
Stock Compensation Plan [Member] | |||
Equity [Line Items] | |||
Shares granted (in shares) | 35,581 | 30,070 | |
Grant date fair value | $ | $ 337 | $ 318 | |
At The Market [Member] | |||
Equity [Line Items] | |||
Common shares issued during period (in shares) | 1,593,603 | ||
Proceeds from issuance of common shares | $ | $ 17,362 |
Equity - Schedule of Shares Iss
Equity - Schedule of Shares Issued (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2015 | |
Performance Shares [Member] | |||
Class of Stock [Line Items] | |||
Shares granted (in shares) | 642,029 | ||
Shares vested measurement period (in years) | 3 years | ||
Vested in period (in shares) | 116,926 | ||
Performance Shares [Member] | Index Performance Shares - 1Q [Member] | |||
Class of Stock [Line Items] | |||
Shares granted (in shares) | 331,025 | 106,706 | |
Grant date fair value per share (in dollars per share) | $ 5.81 | $ 6.82 | |
Performance Shares [Member] | Peer Performance Shares - 1Q [Member] | |||
Class of Stock [Line Items] | |||
Shares granted (in shares) | 331,019 | 106,705 | |
Grant date fair value per share (in dollars per share) | $ 5.37 | $ 6.34 | |
Restricted Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares granted (in shares) | 237,570 | 237,560 | |
Grant date fair value | $ 2,190 | $ 2,551 | |
Award requisite service period (in years) | 3 years |
Equity - Changes in Other Compr
Equity - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,340,835 | $ 1,412,491 |
Ending Balance | 1,274,384 | 1,429,994 |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 1,065 | (1,033) |
Ending Balance | 1,311 | 259 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other comprehensive income before reclassifications | 494 | 688 |
Amounts of (income) loss reclassified from accumulated other comprehensive income (loss) to interest expense | $ (248) | $ 604 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jan. 31, 2018 | |
LCIF [Member] | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expense | $ 1,744 | $ 1,418 | ||
Property operating expenses | 156 | 170 | ||
Lexington Realty Trust [Member] | LCIF [Member] | ||||
Related Party Transaction [Line Items] | ||||
Maximum amount to be distributed from (to) related party | (2,476) | $ (2,422) | ||
Unit distributions earned | 14,340 | 16,287 | ||
Interest expense | 2,369 | $ 1,811 | ||
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Notes payable, related party | 8,000 | $ 500 | ||
Notes payable, related party, potential maximum amount | 12,000 | |||
Affiliated Entity [Member] | LCIF [Member] | ||||
Related Party Transaction [Line Items] | ||||
Notes payable, related party | $ 500 | 8,000 | ||
Notes payable, related party, potential maximum amount | 12,000 | |||
Expense Reimbursement [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Property operating expenses | 105 | |||
Expense Reimbursement [Member] | Affiliated Entity [Member] | LCIF [Member] | ||||
Related Party Transaction [Line Items] | ||||
Property operating expenses | 105 | |||
Structuring Fee [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Property operating expenses | 128 | |||
Structuring Fee [Member] | Affiliated Entity [Member] | LCIF [Member] | ||||
Related Party Transaction [Line Items] | ||||
Property operating expenses | $ 128 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Senior Notes [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies [Line Items] | ||
Face amount of debt instrument | $ 500,000,000 | $ 500,000,000 |
Senior Notes Due 2024 [Member] | ||
Commitments and Contingencies [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | 250,000,000 |
Debt instrument, interest rate, stated percentage | 4.40% | |
Senior Notes Due 2023 [Member] | ||
Commitments and Contingencies [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | $ 250,000,000 |
Debt instrument, interest rate, stated percentage | 4.25% | |
LCIF [Member] | Senior Notes Due 2024 [Member] | ||
Commitments and Contingencies [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Debt instrument, interest rate, stated percentage | 4.40% | |
Debt instrument, redemption price, percentage | 99.883% | |
LCIF [Member] | Senior Notes Due 2023 [Member] | ||
Commitments and Contingencies [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Debt instrument, interest rate, stated percentage | 4.25% | |
Debt instrument, redemption price, percentage | 99.026% |
Supplemental Disclosure of St48
Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Interest paid | $ 13,633 | $ 14,351 |
Income taxes paid, net | 195 | 548 |
LCIF [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Interest paid | 4,821 | 3,869 |
Income taxes paid, net | $ 27 | $ 45 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 09, 2018USD ($)property | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Subsequent Event [Line Items] | |||
Payments to acquire real estate | $ 0 | $ 48,250 | |
Olive Branch, Mississippi [Member] | Industrial Property [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of real estate properties acquired | property | 2 | ||
Payments to acquire real estate | $ 92,512 | ||
Warren, Michigan | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Mortgage loans on real estate | $ 25,850 | ||
Stated interest rate | 5.40% | ||
LCIF [Member] | Warren, Michigan | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Mortgage loans on real estate | $ 25,850 | ||
Stated interest rate | 5.40% |