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UNDER
THE SECURITIES ACT OF 1933
Maryland | 6784 | 13-371318 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
Suite 4015
New York, New York 10119-4015
(212) 692-7200
(Address, including zip code, and telephone number, including area code,
of Registrant’s principal executive offices)
T. Wilson Eglin
Chief Executive Officer and President
Lexington Realty Trust
One Penn Plaza
Suite 4015
New York, New York 10119-4015
(212) 692-7200
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
With copies to:
Mark Schonberger, Esq.
Paul, Hastings, Janofsky & Walker LLP
75 East 55th Street
New York, New York 10022
(212) 318-6000
Large accelerated filerþ | Accelerated filero | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting companyo |
Proposed Maximum | |||||||||||||||||
Title of each class of securities | Amount to Be | Aggregate | Amount of | ||||||||||||||
to be registered | Registered | Offering Price (1)(2) | Registration Fee (3) | ||||||||||||||
Shares of beneficial interest classified as common stock, par value $0.0001 per share | 6,393,266 | $ | 21,289,575.78 | $ | 836.68 | ||||||||||||
(1) | This number is based on 6,393,266 units of limited partner interests of The Lexington Master Limited Partnership outstanding as of November 24, 2008 and not held by Lexington Realty Trust. |
(2) | The registration fee has been computed pursuant to Rule 457(c) and Rule 457(f)(1) under the Securities Act of 1933, as amended, solely for the purpose of calculating the registration fee based on the average high and low prices for shares of Lexington Realty Trust’s common shares as reported on the New York Stock Exchange on November 21, 2008 ($3.33 per share) multiplied by the maximum number of units of limited partner interests of The Lexington Master Limited Partnership that may be exchanged for the securities being registered. |
(3) | Calculated in accordance with Rule 457(o) under the Securities Act of 1933, as amended. |
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The information contained in this proxy statement/prospectus is not complete and may be changed. We may not sell these securities offered by this proxy statement/prospectus until the registration statement filed with the Securities and Exchange Commission is effective. This proxy statement/prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities in any state where an offer or solicitation is not permitted.
THE LEXINGTON MASTER LIMITED PARTNERSHIP
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TO BE HELD ON DECEMBER 29, 2008
(1) | To consider and vote on the approval of the Agreement and Plan of Merger, dated as of November 24, 2008, by and among Lexington Realty Trust and The Lexington Master Limited Partnership, a copy of which is attached as Annex A to the accompanying proxy statement/prospectus and the transactions contemplated thereby, including the merger of The Lexington Master Limited Partnership with and into Lexington Realty Trust; and | ||
(2) | To transact such other business as may properly come before the special meeting or any adjournments or postponements of the special meeting. |
Secretary
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EX-5.1: OPINION OF VENABLE LLP | ||||||||
EX-8.1: OPINION OF PAUL, HASTINGS, JANOFSKY & WALKER LLP | ||||||||
EX-23.1: CONSENT OF KPMG LLP | ||||||||
EX-23.2: CONSENT OF DELOITTE & TOUCHE LLP | ||||||||
EX-99.1: FORM OF PROXY |
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(1) | To consider and vote on the approval of the merger agreement and the transactions contemplated thereby, including the MLP merger; and | ||
(2) | To transact such other business as may properly come before the special meeting or any adjournments or postponements of the special meeting. |
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(1) | To consider and vote on the approval of the merger agreement and the transactions contemplated thereby, including the MLP merger; and | ||
(2) | To transact such other business as may properly come before the special meeting or any adjournments or postponements of the special meeting. |
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Years Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2008 | 2007 | ||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||||||||||||||
Total gross revenues | $ | 431,747 | $ | 186,693 | $ | 162,383 | $ | 109,901 | $ | 73,999 | $ | 340,632 | $ | 304,099 | ||||||||||||||
Expenses applicable to revenues | (297,139 | ) | (106,796 | ) | (81,645 | ) | (37,581 | ) | (24,568 | ) | (252,400 | ) | (206,767 | ) | ||||||||||||||
Interest and amortization expense | (163,628 | ) | (65,097 | ) | (56,177 | ) | (36,448 | ) | (25,609 | ) | (120,519 | ) | (114,747 | ) | ||||||||||||||
Income (loss) from continuing operations | (10,783 | ) | (7,909 | ) | 17,606 | 27,021 | 15,873 | 15,235 | 1,272 | |||||||||||||||||||
Total discontinued operations | 87,634 | 15,662 | 15,089 | 17,786 | 17,776 | 4,585 | 44,345 | |||||||||||||||||||||
Net income | 76,851 | 7,753 | 32,695 | 44,807 | 33,649 | 19,820 | 45,617 | |||||||||||||||||||||
Net income (loss) allocable to common shareholders | 50,118 | (8,682 | ) | 16,260 | 37,862 | 30,257 | 5,211 | 25,919 | ||||||||||||||||||||
Income (loss) from continuing operations per common share — basic | (0.58 | ) | (0.47 | ) | 0.03 | 0.43 | 0.37 | 0.01 | (0.28 | ) | ||||||||||||||||||
Income (loss) from continuing operations per common share — diluted | (0.58 | ) | (0.47 | ) | 0.03 | 0.41 | 0.36 | (0.14 | ) | (0.28 | ) | |||||||||||||||||
Income from discontinued operations per common share — basic | 1.35 | 0.30 | 0.30 | 0.38 | 0.52 | 0.07 | 0.67 | |||||||||||||||||||||
Income from discontinued operations per common share — diluted | 1.35 | 0.30 | 0.30 | 0.39 | 0.52 | 0.07 | 0.67 | |||||||||||||||||||||
Net income (loss) per common share — basic | 0.77 | (0.17 | ) | 0.33 | 0.81 | 0.89 | 0.08 | 0.39 | ||||||||||||||||||||
Net income (loss) per common share — diluted | 0.77 | (0.17 | ) | 0.33 | 0.80 | 0.88 | (0.07 | ) | 0.39 |
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Years Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2008 | 2007 | ||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||||||||||||||
Cash dividends declared per common share | $ | 3.60 | $ | 2.0575 | $ | 1.445 | $ | 1.41 | $ | 1.355 | $ | 0.99 | $ | 1.125 | ||||||||||||||
Net cash provided by operating activities | 287,651 | 108,020 | 105,457 | 90,736 | 68,883 | 187,412 | 235,893 | |||||||||||||||||||||
Net cash provided by (used in) investing activities | (31,490 | ) | (154,080 | ) | (643,777 | ) | (202,425 | ) | (295,621 | ) | 200,751 | (316,419 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | 38,973 | 483 | 444,878 | 242,723 | 228,986 | (692,230 | ) | 224,041 | ||||||||||||||||||||
Real estate assets, net | 3,729,266 | 3,475,073 | 1,651,200 | 1,240,479 | 1,001,772 | 3,396,790 | 4,257,884 | |||||||||||||||||||||
Investments in non-consolidated entities | 226,476 | 247,045 | 191,146 | 132,738 | 69,225 | 205,021 | 173,742 | |||||||||||||||||||||
Total assets | 5,265,163 | 4,624,857 | 2,160,232 | 1,697,086 | 1,207,441 | 4,294,332 | 5,667,491 | |||||||||||||||||||||
Mortgages, notes payable and credit facility, including discontinued operations | 3,047,550 | 2,132,661 | 1,170,560 | 765,909 | 551,385 | 2,481,575 | 3,320,264 | |||||||||||||||||||||
Shareholders’ equity | 939,071 | 1,122,444 | 891,310 | 847,290 | 579,848 | 924,002 | 1,110,607 | |||||||||||||||||||||
Preferred share liquidation preference | 389,000 | 234,000 | 234,000 | 214,000 | 79,000 | 363,915 | 389,000 |
Years Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2008 | 2007 | ||||||||||||||||||||||
(in thousands, except per unit data) | (in thousands, except per unit data) | |||||||||||||||||||||||||||
Operating Data | ||||||||||||||||||||||||||||
Total gross revenues | $ | 207,804 | $ | 160,306 | $ | 144,879 | $ | 147,816 | $ | 161,492 | $ | 186,158 | $ | 143,879 | ||||||||||||||
Income from continuing operations | 85,232 | 32,735 | 24,437 | 44,641 | 51,021 | 2,429 | 72,530 | |||||||||||||||||||||
Net income | 151,450 | 129,342 | 49,295 | 137,808 | 145,164 | 39,551 | 109,947 | |||||||||||||||||||||
Net income per unit (1) (2) | 2.71 | 2.51 | 1.23 | 3.60 | 3.78 | 0.56 | 2.01 | |||||||||||||||||||||
Cash distributions per unit (1) (2) | 3.60 | 2.06 | 1.33 | 1.20 | 0.91 | 0.99 | 1.13 | |||||||||||||||||||||
Weighted average units outstanding (1) (2) | 55,923 | 51,519 | 40,081 | 38,311 | 38,381 | 70,923 | 54,742 | |||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||||||||
Real estate investments, at cost | 1,829,478 | 1,452,851 | 1,457,603 | 1,578,182 | 1,655,430 | 1,790,167 | 1,859,791 | |||||||||||||||||||||
Real estate investments, net of accumulated depreciation | 1,409,819 | 977,625 | 913,518 | 1,032,797 | 1,129,237 | 1,363,809 | 1,377,390 | |||||||||||||||||||||
Total assets | 2,342,944 | 1,396,272 | 1,306,953 | 1,237,129 | 1,384,094 | 1,924,087 | 2,123,901 | |||||||||||||||||||||
Total debt | 1,446,622 | 838,734 | 770,786 | 907,339 | 1,104,231 | 1,250,103 | 1,407,322 | |||||||||||||||||||||
Partners’ equity | 564,401 | 491,474 | 461,184 | 203,785 | 98,864 | 562,352 | 616,348 |
(1) | Adjusted to reflect the 7.5801 to 1 unit split of the outstanding units on November 7, 2005. | |
(2) | Adjusted to reflect the 0.80 to 1 unit split of outstanding units on December 31, 2006. |
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Pro Forma Combined | ||||||||
(Unaudited, dollars in thousands) | ||||||||
Year ended | Nine months ended | |||||||
December 31, 2007 | September 30, 2008 | |||||||
Total gross revenues | $ | 431,747 | $ | 340,632 | ||||
Interest and amortization expense | (163,628 | ) | (120,519 | ) | ||||
Loss from continuing operations | (13,376 | ) | (67 | ) | ||||
Loss from continuing operations per common share — basic | (0.40 | ) | (0.15 | ) | ||||
Loss from continuing operations per common share — diluted | (0.40 | ) | (0.15 | ) | ||||
Real estate assets, net | 3,396,790 | |||||||
Investments in non-consolidated entities | 205,021 | |||||||
Total assets | 4,294,332 | |||||||
Mortgages and notes payable | 2,052,955 | |||||||
Shareholders’ equity | 1,453,094 |
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Nine Months Ended | Year Ended | |||||||
September 30, 2008 | December 31, 2007 | |||||||
Lexington Trust — Historical | ||||||||
Income (loss) from continuing operations per common share — basic | $ | 0.01 | $ | (0.58 | ) | |||
Loss from continuing operations per common share — diluted | $ | (0.14 | ) | $ | (0.58 | ) | ||
Book value per share at period end | $ | 14.07 | $ | 15.38 | ||||
The Partnership — Historical | ||||||||
Income per basic unit from continuing operations | $ | 0.04 | $ | 1.53 | ||||
Income per diluted unit from continuing operations | $ | 0.04 | $ | 1.53 | ||||
Book value per unit at period end | $ | 7.81 | $ | 8.25 | ||||
Unaudited Pro Forma Combined | ||||||||
Loss from continuing operations per common share — basic | $ | (0.15 | ) | $ | (0.40 | ) | ||
Loss from continuing operations per common share — diluted | $ | (0.15 | ) | $ | (0.40 | ) | ||
Book value per share at period end | $ | 14.57 | N/A |
Common Shares | MLP Units | |||||||||||||||||||||||
High | Low | Dividends | High | Low | Distributions | |||||||||||||||||||
2007 | ||||||||||||||||||||||||
First Quarter | $ | 22.42 | $ | 20.02 | $ | 0.5975 | — | — | $ | 0.5625 | (1) | |||||||||||||
Second Quarter | $ | 21.65 | $ | 20.38 | $ | 0.375 | — | — | $ | 0.375 | ||||||||||||||
Third Quarter | $ | 21.54 | $ | 18.78 | $ | 0.375 | — | — | $ | 0.375 | ||||||||||||||
Fourth Quarter | $ | 20.90 | $ | 14.52 | $ | 0.375 | — | — | $ | 0.375 | ||||||||||||||
2008 | ||||||||||||||||||||||||
First Quarter | $ | 16.11 | $ | 12.40 | $ | 2.475 | — | — | $ | 2.475 | ||||||||||||||
Second Quarter | $ | 15.77 | $ | 13.55 | $ | 0.33 | — | — | $ | 0.33 | ||||||||||||||
Third Quarter | $ | 17.24 | $ | 11.82 | $ | 0.33 | — | — | $ | 0.33 | ||||||||||||||
Fourth Quarter | $ | 16.85 | $ | 2.99 | $ | 0.33 | $ | 0.33 | ||||||||||||||||
(through November 21, 2008) |
(1) | Represents final distribution by the Partnership (then known as The Newkirk Master Limited Partnership) prior to Lexington Trust’s merger with Newkirk Realty Trust, Inc. |
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• | Administrative Cost Savings— The MLP merger is expected to result in administrative and operational economies of scale and cost savings for the benefit of both holders of MLP Units and holders of Common Shares. The Partnership is required to file periodic reports with the SEC because of the number of holders of MLP Units and the value of the Partnership’s assets. As a result, the Partnership has separate financial and tax accounting, reporting and disclosure requirements, which are estimated to cost in excess of $1.0 million annually. These requirements are different from and in addition to those required for Lexington Trust and its other subsidiaries, including its three other operating partnerships. | ||
• | Tax Consequences— The MLP merger will be a taxable transaction for the holders of MLP Units. No “tax protection” agreements were entered into between the Partnership or the General Partner, on the one hand, and any limited partner on the other hand, that expired after January 15, 2004. Section 7.6.B of the Partnership Agreement provides that the General Partner is under no obligation to give priority to the separate interests of the limited partners (including, without limitation, the tax consequences to limited partners) in deciding whether to cause the Partnership to take (or decline to take) any actions. The General Partner believes that the tax consequences to the limited partners will be mitigated by Common Shares trading at historic lows. In addition, U.S. federal tax rates on capital gains are currently scheduled to increase for taxable years beginning after December 31, 2010. It is possible that Congress could increase such rates sooner. | ||
• | Liquidity for Limited Partners— Except for certain transfers to family members and charitable organizations, holders of MLP Units may not transfer their MLP Units without the General Partner’s consent. However, holders of MLP Units have the right to tender their MLP Units for redemption by the MLP at certain times, as specified in the Partnership Agreement. Lexington Trust’s Common Shares issued in exchange for MLP Units upon a redemption or pursuant to the MLP merger will be freely transferable as registered securities under the Securities Act. Lexington Trust’s Common Shares are listed on the NYSE under the symbol “LXP”. Therefore, when a holder of MLP Units receives Common Shares upon a redemption or in the MLP merger he or she will have the same liquidity. | ||
• | Avoidance of Conflicts of Interest— Lexington Trust and its other operating partnerships conduct businesses similar to that of the Partnership. The conduct of these businesses and the allocation of business opportunities and investments between the Partnership and Lexington Trust’s other subsidiaries, may give rise to conflicts of interests. In addition, there are complexities in allocating resources and costs for overhead, personnel and other matters between the Partnership and Lexington Trust and its other subsidiaries. These conflict situations will be eliminated through the MLP merger. |
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• | Greater Capital Resources— While the General Partner believes that cash flows from operations will continue to provide adequate capital to fund the Partnership’s operating and administrative expenses, regular debt service obligations and all distribution payments in accordance with Lexington Trust’s REIT requirements in both the short-term and long-term, Lexington Trust, as a publicly traded company, has access to greater capital resources. | ||
• | Future Investment Opportunities— Lexington Trust’s greater capital resources will also enable it to take advantage of investment opportunities, which will further diversify the investment risk. | ||
• | Elimination of dependency on Lexington Trust and its personnel— The Partnership is not self-administered or self-managed and is dependent upon Lexington Trust and its personnel whose continued service is not guaranteed. The Partnership’s inability to continue to retain the services of Lexington Trust and its personnel or the Partnership’s loss of any of their services could adversely impact the Partnership’s operations. The MLP merger would ensure the continued service of Lexington Trust and its personnel because Lexington Trust is a self-administered and self-managed real estate investment trust. |
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• | existence, good standing, authority and compliance with law; | ||
• | authority to enter into the MLP merger agreement and related agreements and to consummate the MLP merger; | ||
• | no conflicts, required filings or consents; | ||
• | neither the merger agreement nor the consummation of the MLP merger will breach organizational documents or material agreements; | ||
• | neither the merger agreement nor the consummation of the MLP merger requires any governmental consents; | ||
• | no material undisclosed liabilities; | ||
• | compliance with requirements of governmental authorities; and | ||
• | tax matters, including qualification as a REIT and tax protection agreements. |
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One Penn Plaza, Suite 4015
New York, NY 10119-4015
212-692-7200
Attention: Investor Relations
AGREEMENT, THE MLP MERGER AND THE RELATED TRANSACTIONS
• | Stepped up basis. Upon consummation of the MLP merger, Lexington Trust will receive a stepped-up tax basis on its additional investment in the Partnership’s assets to the extent of the MLP Units it acquires in the MLP merger. | ||
• | Intercompany advances. The Partnership advanced $39.4 million, net, to Lexington Trust as of September 30, 2008. The advances are payable on demand and bear interest at the rate charged by KeyBank N.A. under the Partnership’s $225.0 million original principal amount secured term loan |
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originated in June 2007. This inter-company advance will be extinguished upon the consummation of the MLP merger, but Lexington Trust will assume all of the Partnership’s indebtedness, including the KeyBank N.A. secured term loan. | |||
• | Reimbursement to Lexington Trust. Lexington Trust pays for certain general, administrative and other costs on the Partnership’s behalf from time to time. These costs are reimbursable by the Partnership. These costs were approximately $8.7 million for the nine months ended September 30, 2008. The Partnership owed $3.1 million of these costs to Lexington Trust as of September 30, 2008. The reimbursement obligation will be extinguished upon consummation of the MLP merger. | ||
• | Management fees. Lexington Realty Advisors, Inc., a taxable REIT subsidiary of Lexington Trust, earned management fees of approximately $0.2 million during the nine months ended September 30, 2008 for managing four consolidated properties. Lexington Realty Advisors, Inc. also earned a fee of $0.6 million during the nine months ended September 30, 2008 under the management agreement with NLS. |
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• | any person who beneficially owns ten percent or more of the voting power of the trust’s shares; or | ||
• | an affiliate or associate of the trust who, at any time within the two-year period prior to the date in question, was the beneficial owner of ten percent or more of the voting power of the then outstanding voting shares of the trust. |
• | eighty percent of the votes entitled to be cast by holders of outstanding voting shares of the trust; and | ||
• | two-thirds of the votes entitled to be cast by holders of voting shares of the trust other than shares held by the interested shareholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested shareholder. |
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• | one-tenth or more but less than one-third; | ||
• | one-third or more but less than a majority; or | ||
• | a majority or more of all voting power. |
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• | officers or employees of the Maryland REIT; | ||
• | persons seeking to acquire control of the Maryland REIT; | ||
• | trustees, officers, affiliates or associates of any person seeking to acquire control; or | ||
• | nominated or designated as trustees by a person seeking to acquire control. |
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EXCHANGE OF MLP UNITS
• | may require registration of the MLP Units under federal or state securities laws, | ||
• | may cause Lexington Trust to fail to comply with the REIT rules under the Code, or | ||
• | may cause the Partnership to be treated as a publicly traded partnership under the Code. |
• | on the Partnership’s behalf, accept additional capital contributions from existing partners or other persons, | ||
• | cause the Partnership to borrow funds from a financial institution or other person, | ||
• | borrow such funds from a lending institution or other person and subsequently lend such funds to the Partnership, or | ||
• | directly lend funds to the Partnership. |
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• | for fewer than 500 MLP Units or, if a limited partner holds fewer than 500 MLP Units, all of the MLP Units held by such limited partner; or | ||
• | if the general partner determines that allowing such redemption may cause the Partnership to be treated as a publicly traded partnership. |
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• | expenses relating to Lexington Trust’s ownership and management of the Partnership; | ||
• | the management fees owing to any advisors, and the fees or compensation owing to directors, officers and employees; and | ||
• | the expense of the Partnership’s being a public company. |
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• | add to its obligations or surrender its rights, as general partner, under the Partnership Agreement for the benefit of the limited partners; | ||
• | reflect the issuance of additional MLP Units or the admission, substitution, termination or withdrawal of partners in accordance with the Partnership Agreement; | ||
• | reflect inconsequential changes, cure any ambiguity, correct or supplement any provision not inconsistent with law or another provision of the Partnership Agreement, or make other changes concerning matters under the Partnership Agreement not otherwise inconsistent with the law or the Partnership Agreement; | ||
• | satisfy requirements or guidelines under federal or state law; | ||
• | reflect changes that are reasonably necessary for Lexington Trust, as parent of the general partner, to satisfy the REIT requirements or reflect the transfer of partnership interests from it, as the parent of the general partner, to its subsidiary; | ||
• | modify the manner in which capital accounts are computed but only to the extent set forth in the Partnership Agreement in order to comply with the requirements of the Code and the Treasury regulations promulgated thereunder; or | ||
• | issue additional MLP Units. |
• | the act or omission of the indemnitee was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active and deliberate dishonesty, | ||
• | the indemnitee actually received an improper personal benefit in money, property or services, or |
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• | in the case of any criminal proceeding, the indemnitee had reasonable cause to believe that the act or omission was unlawful. |
• | the General Partner’s bankruptcy or dissolution or withdrawal (unless the limited partners elect to continue the Partnership) or a decree of judicial dissolution under Delaware law; | ||
• | the sale or other disposition of all or substantially all of the Partnership’s assets; or | ||
• | the redemption of all MLP Units (other than those held by Lexington Trust or its subsidiaries). |
THE PARTNERSHIP | LEXINGTON TRUST | |
FORM OF ORGANIZATION AND ASSETS OWNED | ||
The Partnership is organized as a Delaware limited partnership. The Partnership owns interests (directly and indirectly through subsidiaries) in properties and assets. | Lexington Trust is a Maryland statutory real estate investment trust. Lexington Trust believes that it has operated so as to qualify as a REIT under the Code, commencing with the Partnership’s taxable year ended December 31, 1993, and intends to continue to so operate. Lexington Trust’s indirect interest in its operating partnerships, including the Partnership, gives Lexington Trust an indirect investment in the properties owned by its operating partnerships. In addition, Lexington Trust owns (either directly or indirectly through interests in subsidiaries other than its operating partnerships) interests in other properties and assets. |
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THE PARTNERSHIP | LEXINGTON TRUST | |
LENGTH OF INVESTMENT | ||
The Partnership has a perpetual term, unless sooner dissolved and terminated. | Lexington Trust has a perpetual term and intends to continue its operations for an indefinite time period. |
PURPOSE AND PERMITTED INVESTMENTS | ||
The Partnership’s purpose is to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the Delaware Act, provided that such business is to be conducted in such a manner that permits Lexington Trust to be qualified as a REIT unless Lexington Trust ceases to qualify as a REIT for reasons other than the conduct of the Partnership’s business. The Partnership may not take, or refrain from taking, any action which, in the judgment of Lexington Trust, in its sole and absolute discretion, (i) could adversely affect Lexington Trust’s ability to continue to qualify as a REIT, (ii) could subject Lexington Trust to any additional taxes under any Section 857 or Section 4981, or any other section of the Code, or (iii) could violate any law or regulation of any governmental body (unless such action, or inaction, is specifically consented to by Lexington Trust in writing). | Lexington Trust’s purposes are to engage in the real estate business and lawful activities incidental thereto, and to engage in any lawful act or activity for which real estate investment trusts may be organized under the applicable laws of the State of Maryland. Lexington Trust is permitted by the Partnership Agreement to engage in activities not related to the Partnership’s business, including activities in direct or indirect competition with the Partnership, and may own assets other than its interests in the Partnership, and such other assets necessary to carry out the Partnership’s responsibilities under the Partnership Agreement, and the LXP declaration. In addition, Lexington Trust has no obligation to present opportunities to the Partnership and the holders of MLP Units have no rights by virtue of the Partnership Agreement in any of Lexington Trust’s outside business ventures. |
ADDITIONAL EQUITY | ||
The Partnership is authorized to issue MLP Units and other partnership interests (including partnership interests of different series or classes that may be senior to MLP Units) as determined by the General Partner in its sole discretion. | The LXP board may cause Lexington Trust to issue, in its discretion, additional equity securities consisting of Common Shares and/or preferred shares. However, the total number of shares issued may not exceed the authorized number of capital shares set forth in the LXP declaration. The proceeds of equity capital raised by Lexington Trust are not required to be contributed to the Partnership; provided, however, that if Lexington Trust desires to increase its ownership of MLP Units, it may only do so by contributing the proceeds of equity capital raised by it. |
BORROWING POLICIES | ||
The Partnership has no restrictions on borrowings, and the General Partner has full power and authority to borrow money on the Partnership’s behalf. | Neither the LXP declaration nor the LXP bylaws impose any restrictions on its ability to borrow money. Lexington Trust is not required to incur its indebtedness through the Partnership. |
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THE PARTNERSHIP | LEXINGTON TRUST | |
OTHER INVESTMENT RESTRICTIONS | ||
Other than restrictions precluding investments by the Partnership that would adversely affect Lexington Trust’s qualification as a REIT, there are no restrictions upon the Partnership’s authority to enter into certain transactions, including among others, making investments, lending the Partnership’s funds, or reinvesting the Partnership’s cash flow and net sale or refinancing proceeds, except that, without the consent of the holders of a majority of the outstanding MLP Units (other than the MLP Units held by Lexington Trust), the General Partner may not utilize any of the Partnership’s asset except (i) to reimburse Lexington Trust under the Partnership Agreement, (ii) to make distributions under the Partnership Agreement, or (iii) to acquire assets or make loans for the Partnership’s exclusive benefit, with certain exceptions. | Neither the LXP declaration nor the LXP bylaws impose any restrictions upon the types of investments made by Lexington Trust. However, contractual obligations may inhibit Lexington Trust’s ability to invest in certain asset types. |
MANAGEMENT CONTROL | ||
All management powers over the Partnership’s business and affairs are vested in the General Partner, and no limited partner has any right to participate in or exercise control or management power over the Partnership’s business and affairs. See “—Voting Rights —Vote Required to Dissolve The Partnership or Lexington Trust” below. The General Partner may not be removed by the limited partners with or without cause. | The LXP board has exclusive control over Lexington Trust’s business and affairs subject only to the restrictions in the LXP declaration and the LXP bylaws. The LXP board consists of 10 trustees, which number may be increased or decreased by vote of at least a majority of the entire LXP board pursuant to the LXP bylaws. The trustees are elected at each annual meeting of Lexington Trust’s shareholders. The policies adopted by the LXP board may be altered or eliminated without a vote of the shareholders. Accordingly, except for their vote in the elections of trustees, shareholders have no control over Lexington Trust’s ordinary business policies. |
DUTIES | ||
Under Delaware law, except as provided in the Partnership Agreement, the General Partner is accountable to the Partnership as a fiduciary and, consequently, is required to exercise good faith and integrity in all of its dealings with respect to the Partnership’s affairs. The General Partner has agreed to use reasonable efforts to allocate “excess non-recourse liabilities” in a manner that will avoid or minimize any potential recapture tax liability of the partners. | Under Maryland law, Lexington Trust’s trustees must perform their duties in good faith, in a manner that they reasonably believe to be in Lexington Trust’s best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. Trustees who act in such a manner generally will not be liable to Lexington Trust for monetary damages arising from their activities. |
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THE PARTNERSHIP | LEXINGTON TRUST | |
MANAGEMENT LIABILITY AND INDEMNIFICATION | ||
Under Delaware law, the General Partner has liability for the payment of the Partnership’s obligations and debts unless limitations upon such liability are stated in the document or instrument evidencing the obligation. Under the Partnership Agreement, the Partnership agreed to indemnify the General Partner and Lexington Trust, and any director, trustee or officer of the Partnership, Lexington Trust or the majority limited partner, to the fullest extent permitted under the Delaware Act. The reasonable expenses incurred by an indemnitee may be reimbursed by the Partnership in advance of the final disposition of the proceeding upon receipt by the Partnership of a written affirmation by such indemnitee of his, her or its good faith belief that the standard of conduct necessary for indemnification has been met and a written undertaking by such indemnitee to repay the amount if it is ultimately determined that such standard was not met. | Under the LXP declaration, the liability of Lexington Trust’s trustees and officers to Lexington Trust and its shareholders for money damages is limited to the fullest extent permitted under Maryland law. Under the LXP declaration, Lexington Trust is required to indemnify its trustees and officers to the fullest extent permitted under Maryland law and to indemnify its other employees and agents to such extent as authorized by the LXP board or the LXP bylaws, but only to the extent permitted under applicable law. | |
ANTI-TAKEOVER PROVISIONS | ||
Except in limited circumstances (see “—Voting Rights” below), the General Partner has exclusive management power over the Partnership’s business and affairs. The General Partner may not be removed by the limited partners. Without the consent of the General Partner, a transferee will not be (i) admitted to the Partnership as a substituted limited partner or (ii) entitled to the same rights as a substituted limited partner. | The LXP declaration and the LXP bylaws contain a number of provisions that may have the effect of delaying or discouraging an unsolicited proposal for the acquisition of Lexington Trust or the removal of incumbent management. These provisions include, among others: (1) authorized capital shares that may be issued as preferred shares in the discretion of the LXP board, with superior voting rights to the common shares; (2) a requirement that trustees may be removed only for cause and then only by the affirmative vote of the holders of at least 80% of the combined voting power of all classes of shares of beneficial interest entitled to vote in the election of trustees; and (3) provisions designed to, among other things, avoid concentration of share ownership in a manner that would jeopardize Lexington Trust’s status as a REIT under the Code. | |
Furthermore, under Maryland law, “business combinations” between a Maryland real estate investment trust and an interested shareholder or an affiliate of an interested shareholder are prohibited for five years after the most recent date on which the interested shareholder becomes an interested shareholder. See “Certain Provisions of Maryland Law and the LXP Declaration and the LXP Bylaws – Maryland Law,” elsewhere in this proxy statement/prospectus. |
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THE PARTNERSHIP | LEXINGTON TRUST | |
VOTING RIGHTS | ||
All decisions relating to the Partnership’s operation and management are made by the General Partner. See “Description of the MLP Units” elsewhere in this proxy statement/prospectus. As of the date of this proxy statement/prospectus, Lexington Trust held, through Lex GP-1 and Lex LP-1, the General Partner interest and 91.1% of the MLP Units. As MLP Units are redeemed under the Partnership Agreement or exchanged in the MLP merger, Lexington Trust’s percentage ownership in the Partnership will increase. | Lexington Trust is managed and controlled by a board of trustees presently consisting of 10 members. Each trustee is elected by the shareholders at annual meetings of Lexington Trust’s shareholders. Maryland law requires that certain major corporate transactions, including most amendments to the LXP declaration, may not be consummated without the approval of shareholders as set forth below. All Common Shares have one vote, and the LXP declaration permits the LXP board to classify and issue preferred shares in one or more series having voting power which may differ from that of the Common Shares. See “Description of Common Shares” elsewhere in this proxy statement/prospectus. |
A. AMENDMENT OF THE PARTNERSHIP AGREEMENT OR THE LXP DECLARATION. | ||
Generally, the General Partner may not amend the Partnership Agreement without the consent of the holders of the majority of the MLP Units, except the General Partner may, without the consent of the limited partners, amend the Partnership Agreement as to certain ministerial matters and to cure ambiguities. | Amendments to the LXP declaration must be advised by the LXP board and approved generally by at least a majority of the votes entitled to be cast on that matter at a meeting of shareholders. Amendments to certain provisions on termination require the affirmative vote of two-thirds of the votes entitled to be cast and amendments to certain provisions in the LXP declaration relating to amendments to the LXP declaration or the LXP bylaws, relating to the LXP board or relating to obligations under written instruments, require the affirmative vote of 80% of the votes entitled to be cast. In addition, the LXP declaration may be amended by a two-thirds majority of its trustees, without shareholder approval, in order to preserve its qualification as a REIT under the Code. | |
B. VOTE REQUIRED TO DISSOLVE OR TERMINATE THE MLP OR THE PARTNERSHIP. | ||
The Partnership may be dissolved upon the occurrence of certain events, none of which require the consent of the limited partners. | Lexington Trust may be terminated only upon the affirmative vote of the holders of two-thirds of the outstanding shares entitled to vote thereon. |
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THE PARTNERSHIP | LEXINGTON TRUST | |
C. VOTE REQUIRED TO SELL ASSETS OR MERGE. | ||
Under the Partnership Agreement, the sale, exchange, transfer or other disposition of all or substantially all of the Partnership’s assets does not require the consent the limited partners. However, a merger or consolidation of the Partnership pursuant to which the MLP Units are converted or exchanged for securities of another entity requires the consent of a majority in interest of the limited partners, except under certain circumstances. These circumstances include the MLP merger where MLP Units are being exchanged for securities with preferences, rights and privileges not materially inferior to the preferences, rights and privileges of Common Shares. | Under Maryland law and the LXP declaration, the sale of all or substantially all of Lexington Trust’s assets, or a merger or consolidation of Lexington Trust, requires the approval of the LXP board and generally requires the approval of the holders of a majority of the outstanding shares entitled to vote thereon. No approval of the shareholders is required for the sale of less than all or substantially all of Lexington Trust’s assets. |
The General Partner does not receive any compensation for its services as the General Partner. As partners in the Partnership, however, Lex GP-1 and Lex LP-1 have the same right to allocations and distributions as the Partnership’s other partners. In addition, the Partnership will reimburse the General Partner (and Lexington Trust) for certain expenses incurred relating to the management of the Partnership. | Lexington Trust’s non-employee trustees and officers receive compensation for their services. |
Under the Partnership Agreement and applicable state law, the liability of limited partners for the Partnership’s debts and obligations is generally limited to the amount of their investment in the Partnership. | Under Maryland law, Lexington Trust’s shareholders are generally not personally liable for its debts or obligations. |
The MLP Units constitute equity interests in the Partnership. Generally, unitholders are allocated and distributed amounts in accordance with their respective percentage interest in the Partnership, from time to time, but not less than semi-annually, as determined in the manner provided in the Partnership Agreement and subject to certain restrictions and exceptions for certain limited partners. The Partnership generally intends to retain and reinvest proceeds of the sale of property or excess refinancing proceeds in the Partnership’s business. | Common Shares constitute equity interests in Lexington Trust. Lexington Trust is entitled to receive its pro rata share of distributions made by the Partnership with respect to the MLP Units held by it, and by its other direct subsidiaries. Each holder of Common Shares will be entitled to its pro rata share of any dividends or distributions paid with respect to the Common Shares. The dividends payable to holders of Common Shares are not fixed in amount and are only paid if, when and as authorized by the LXP board and declared by Lexington Trust. In order to continue to qualify as a REIT, Lexington Trust generally must distribute at least 90% of its net taxable income (excluding capital gains), and any taxable income (including capital gains) not distributed will be subject to corporate income tax. |
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THE PARTNERSHIP | LEXINGTON TRUST | |
POTENTIAL DILUTION OF RIGHTS | ||
The General Partner is authorized, in its sole discretion and without limited partner approval, to cause the Partnership to issue additional the MLP Units and other equity securities for any partnership purpose at any time to the limited partners or to other persons (including the General Partner or Lexington Trust under certain circumstances set forth in the Partnership Agreement). | The LXP board may authorize Lexington Trust to issue, in its discretion, additional shares, and has the authority to cause Lexington Trust to issue from authorized capital a variety of other equity securities with such powers, preferences and rights as it may designate at the time. The issuance of either additional Common Shares or other similar equity securities may result in the dilution of the interests of the shareholders. |
Holders of MLP Units may not transfer their MLP Units without the General Partner’s consent. Without the consent of the General Partner, a transferee will not be (i) admitted to the MLP as a substituted limited partner or (ii) entitled to the same rights as a substituted limited partner. Limited partners have the right to tender their MLP Units for redemption by the Partnership at certain times, as specified in the Partnership Agreement. See “The Partnership’s Second Amended and Restated Partnership Agreement; Redemption Rights Under the Partnership Agreement” elsewhere in this proxy statement/prospectus. | The Common Shares are generally freely transferable as registered securities under the Securities Act. Common Shares are listed on the New York Stock Exchange. The breadth and strength of this secondary market will depend, among other things, upon the number of shares outstanding, Lexington Trust’s financial results and prospects, the general interest in Lexington Trust and other real estate investments, and the Partnership’s dividend yield compared to that of other debt and equity securities. |
The Partnership is not subject to federal income taxes. Instead, each unitholder includes its allocable share of the Partnership’s taxable income or loss in determining its individual federal income tax liability. The maximum federal income tax rate for individuals under current law is 35%. A unitholder’s share of income and loss generated by the Partnership generally is subject to the “passive activity” limitations. Under the “passive activity” rules, income and loss from the Partnership that are considered “passive income” generally can be offset against income and loss from other investments that constitute “passive activities.” Cash distributions from the Partnership are not taxable to a unitholder except to the extent such distributions exceed such unitholder’s basis in its interest in the Partnership (which will include such holder’s allocable share of the Partnership’s taxable income and nonrecourse debt). Each year, unitholders will receive a Schedule K-1 containing detailed tax information for inclusion in preparing their federal income tax returns. | Lexington Trust has elected to be taxed as a REIT. So long as Lexington Trust qualifies as a REIT, it will be permitted to deduct distributions paid to it shareholders, which effectively will reduce the “double taxation” that typically results when a corporation earns income and distributes that income to its shareholders in the form of dividends. A qualified REIT, however, is subject to federal income tax on income that is not distributed and also may be subject to federal income and excise taxes in certain circumstances. The maximum federal income tax rate for corporations under current law is 35%. Dividends paid by Lexington Trust will be treated as “portfolio” income and cannot be offset with losses from “passive activities.” The maximum federal income tax rate for individuals under current law is 35%. Distributions made by Lexington Trust to its taxable domestic shareholders out of current or accumulated earnings and profits will be taken into account by them as ordinary income. Distributions that are designated as capital gain dividends generally will be taxed as long-term capital gain, subject to certain limitations, but generally would not be eligible for certain recently-enacted reduced rates. Distributions in excess of current or accumulated earnings and profits |
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THE PARTNERSHIP | LEXINGTON TRUST | |
Unitholders are required, in some cases, to file state income tax returns and/or pay state income taxes in the states in which the Partnership owns property, even if they are not residents of those states. | will be treated as a non-taxable return of basis to the extent of a shareholder’s adjusted basis in its common shares, with the excess taxed as capital gain. | |
Each year, shareholders will receive an IRS Form 1099 used by corporations to report dividends paid to their shareholders. | ||
Shareholders who are individuals generally will not be required to file state income tax returns and/or pay state income taxes outside of their state of residence with respect to Lexington Trust’s operations and distributions. Lexington Trust may be required to pay state income taxes in certain states. | ||
Please see “United States Federal Income Tax Consolidations,” below. |
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• | First, Lexington Trust will be taxed at regular corporate rates on any undistributed REIT taxable income, including undistributed net capital gains. | ||
• | Second, under certain circumstances, Lexington Trust may be subject to the “alternative minimum tax” on its items of tax preference. | ||
• | Third, if Lexington Trust has (a) net income from the sale or other disposition of “foreclosure property,” which is, in general, property acquired on foreclosure or otherwise on default on a loan secured by such real property or a lease of such property, which is held primarily for sale to customers in the ordinary course of business or (b) other nonqualifying income from foreclosure property, it will be subject to tax at the highest corporate rate on such income. |
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• | Fourth, if Lexington Trust has net income from prohibited transactions such income will be subject to a 100% tax. Prohibited transactions are, in general, certain sales or other dispositions of property held primarily for sale to customers in the ordinary course of business other than foreclosure property. | ||
• | Fifth, if Lexington Trust should fail to satisfy the 75% gross income test or the 95% gross income test (as discussed below), but nonetheless maintain its qualification as a REIT because certain other requirements have been met, it will be subject to a 100% tax on an amount equal to (a) the gross income attributable to the greater of the amount by which it fails the 75% gross income test or the amount by which 95% (90% for taxable years ending on or prior to December 31, 2004) of its gross income exceeds the amount of income qualifying under the 95% gross income test multiplied by (b) a fraction intended to reflect its profitability. | ||
• | Sixth, if Lexington Trust should fail to satisfy the asset tests (as discussed below) but nonetheless maintain its qualification as a REIT because certain other requirements have been met and it does not qualify for a de minimis exception, it may be subject to a tax that would be the greater of (a) $50,000; or (b) an amount determined by multiplying the highest rate of tax for corporations by the net income generated by the assets for the period beginning on the first date of the failure and ending on the day it disposes of the nonqualifying assets (or otherwise satisfies the requirements for maintaining REIT qualification). | ||
• | Seventh, if Lexington Trust should fail to satisfy one or more requirements for REIT qualification, other than the 95% and 75% gross income tests and other than the asset tests, but nonetheless maintains its qualification as a REIT because certain other requirements have been met, it may be subject to a $50,000 penalty for each failure. | ||
• | Eighth, if Lexington Trust should fail to distribute during each calendar year at least the sum of (a) 85% of its REIT ordinary income for such year, (b) 95% of its REIT capital gain net income for such year, and (c) any undistributed taxable income from prior periods, Lexington Trust would be subject to a nondeductible 4% excise tax on the excess of such required distribution over the amounts actually distributed. | ||
• | Ninth, if Lexington Trust acquires any asset from a C corporation (i.e., a corporation generally subject to full corporate level tax) in a transaction in which the basis of the asset in its hands is determined by reference to the basis of the asset (or any other property) in the hands of the C corporation and it does not elect to be taxed at the time of the acquisition, it would be subject to tax at the highest corporate rate if it disposes of such asset during the ten-year period beginning on the date that it acquired that asset, to the extent of such property’s “built-in gain” (the excess of the fair market value of such property at the time of its acquisition over the adjusted basis of such property at such time) (we refer to this tax as the “Built-in Gains Tax”). | ||
• | Tenth, Lexington Trust will incur a 100% excise tax on transactions with a taxable REIT subsidiary that are not conducted on an arm’s-length basis. | ||
• | Finally, if Lexington Trust owns a residual interest in a real estate mortgage investment conduit, or “REMIC,” it will be taxable at the highest corporate rate on the portion of any excess inclusion income that it derives from the REMIC residual interests equal to the percentage of its shares that is held in record name by “disqualified organizations.” Similar rules apply if Lexington Trust owns an equity interest in a taxable mortgage pool. A “disqualified organization” includes the United States, any state or political subdivision thereof, any foreign government or international organization, any agency or instrumentality of any of the foregoing, any rural electrical or telephone cooperative and any tax-exempt organization (other than a farmer’s cooperative described in Section 521 of the Code) that is exempt from income taxation and from the unrelated business taxable income provisions of the Code. However, to the extent that Lexington Trust owns a REMIC residual interest or a taxable mortgage pool through a taxable REIT subsidiary, it will not be subject to this tax. See the heading “Requirements for Qualification” below. |
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o | substantially all of the assets consist of debt obligations or interests in debt obligations; | ||
o | more than 50% of those debt obligations are real estate mortgage loans or interests in real estate mortgage loans as of specified testing dates; | ||
o | the entity has issued debt obligations that have two or more maturities; and | ||
o | the payments required to be made by the entity on its debt obligations “bear a relationship” to the payments to be received by the entity on the debt obligations that it holds as assets. |
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Percent of | ||||||||
Name and Address of Beneficial Owner | Number of Units | Total Units | ||||||
Lexington Realty Trust (1) | 65,633,979 | 91.1 | % |
(1) | Beneficially owned through Lex LP-1 Trust, its wholly-owned subsidiary. The address for Lexington Trust is One Penn Plaza, Suite 4015, New York, NY 10119-4015. |
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100 F Street, N.E., Room 1580
Washington, D.C. 20549
1-800-732-0330
Description | Period | Annex Page Number | ||
Lexington Trust Filings (File No. 1-12386): | ||||
Annual Report on Form 10-K | Year ended December 31, 2007, | B-1 | ||
Quarterly Reports on Form 10-Q | Quarter ended September 30, 2008 | B-127 | ||
Current Reports on Form 8-K | June 25, 2008 | B-166 | ||
September 30, 2008 | B-181 | |||
Definitive Proxy Statement on Schedule 14A | May 20, 2008 | B-246 | ||
The LXP Declaration | — | B-293 | ||
The LXP Bylaws | — | B-344 | ||
Partnership Filings (File No. 0-50268): | ||||
Annual Report on Form 10-K | Year ended December 31, 2007, | C-1 | ||
Quarterly Reports on Form 10-Q | Quarter ended September 30, 2008 | C-99 | ||
The Partnership Agreement | — | C-136 |
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One Penn Plaza, Suite 4015
New York, New York 10119-4015
Attention: Investor Relations
Telephone: (212) 692-7200
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• | statements relating to the anticipated cost savings expected to result from the MLP merger; | ||
• | statements regarding other perceived benefits expected to result from the MLP merger; | ||
• | statements with respect to various actions to be taken or requirements to be met in connection with completing the MLP merger; and | ||
• | statements relating to revenue, income and operations of the combined company after the MLP merger is completed. |
• | cost savings expected from the MLP merger may not be fully realized; | ||
• | revenue of the combined company following the MLP merger may be lower than expected; | ||
• | general economic conditions, either internationally or nationally or in the jurisdictions in which Lexington Trust or the Partnership are doing business, may be less favorable than expected; | ||
• | legislative or regulatory changes, including changes in environmental regulation, may adversely affect the businesses in which Lexington Trust and the Partnership are engaged; | ||
• | there may be environmental risks and liability under federal, state and foreign environmental laws and regulations; and | ||
• | changes may occur in the securities or capital markets. |
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INDEX TO UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
Page | ||||
Introduction | F-2 | |||
F-3 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 |
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F-2
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Unaudited Pro Forma Condensed Consolidated Balance Sheet
September 30, 2008
(dollars in thousands)
Lexington | Pro Forma | |||||||||||
Trust | Merger | Pro Forma | ||||||||||
(historical) | Adjustments | Adjusted | ||||||||||
Assets | ||||||||||||
Real estate at cost, net | $ | 3,396,790 | $ | — | $ | 3,396,790 | ||||||
Properties held for sale – discontinued operations | 8,408 | — | 8,408 | |||||||||
Intangible assets, net | 375,212 | — | 375,212 | |||||||||
Cash and cash equivalents | 108,039 | — | 108,039 | |||||||||
Investment in non-consolidated entities | 205,021 | — | 205,021 | |||||||||
Deferred expenses, net | 37,329 | — | 37,329 | |||||||||
Notes receivable | 68,631 | — | 68,631 | |||||||||
Restricted cash | 27,481 | — | 27,481 | |||||||||
Rent receivable – current | 16,630 | — | 16,630 | |||||||||
Rent receivable – deferred | 16,967 | — | 16,967 | |||||||||
Other assets | 33,824 | — | 33,824 | |||||||||
Total assets | $ | 4,294,332 | $ | — | $ | 4,294,332 | ||||||
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Unaudited Pro Forma Condensed Consolidated Balance Sheet (continued)
September 30, 2008
(dollars in thousands)
Lexington | Pro Forma | |||||||||||
Trust | Merger | Pro Forma | ||||||||||
(historical) | Adjustments | Adjusted | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Mortgages and notes payable | $ | 2,052,955 | $ | — | $ | 2,052,955 | ||||||
Exchangeable notes payable | 299,500 | — | 299,500 | |||||||||
Trust preferred securities | 129,120 | — | 129,120 | |||||||||
Contract rights payable | 14,435 | — | 14,435 | |||||||||
Dividends payable | 28,297 | — | 28,297 | |||||||||
Liabilities — discontinued operations | 902 | — | 902 | |||||||||
Accounts payable and other liabilities | 33,974 | — | 33,974 | |||||||||
Accrued interest payable | 10,822 | — | 10,822 | |||||||||
Deferred revenue – below market leases, net | 155,134 | — | 155,134 | |||||||||
Prepaid rent | 20,352 | — | 20,352 | |||||||||
Total liabilities | 2,745,491 | — | 2,745,491 | |||||||||
Minority interests | 624,839 | (529,092 | ) (B) | 95,747 | ||||||||
Shareholders’ equity (C) | 924,002 | 529,092 | (A) | 1,453,094 | ||||||||
Total liabilities and shareholders’ equity | $ | 4,294,332 | $ | — | $ | 4,294,332 | ||||||
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Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet
September 30, 2008
(dollars in thousands, except share data)
(A) | Shareholders’ equity | |||||
Minority interest related to MLP Units – book value | $ | 529,092 | ||||
(B) | Minority interests | |||||
Minority interest related to MLP Units – book value | $ | (529,092 | ) | |||
(C) | Common Shares issued and outstanding |
Lexington Trust | Pro Forma Merger | Pro Forma | ||||||
(historical) | Adjustments | Adjusted | ||||||
65,666,569 | 34,043,454 | 99,710,023 |
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Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended December 31, 2007
(dollars in thousands, except share and per share data)
Lexington | Pro Forma | |||||||||||
Trust | Merger | Pro Forma | ||||||||||
(historical) | Adjustments | Adjusted | ||||||||||
Gross revenues: | ||||||||||||
Rental | $ | 385,898 | $ | — | $ | 385,898 | ||||||
Advisory and incentive fees | 13,567 | — | 13,567 | |||||||||
Tenant reimbursements | 32,282 | — | 32,282 | |||||||||
Total gross revenues | 431,747 | — | 431,747 | |||||||||
Expenses applicable to revenues: | ||||||||||||
Depreciation and amortization | (236,044 | ) | — | (236,044 | ) | |||||||
Property operating | (61,095 | ) | — | (61,095 | ) | |||||||
General and administrative | (39,389 | ) | — | (39,389 | ) | |||||||
Impairment charges | (15,500 | ) | — | (15,500 | ) | |||||||
Non-operating income | 10,726 | — | 10,726 | |||||||||
Interest and amortization expense | (163,628 | ) | — | (163,628 | ) | |||||||
Debt satisfaction charges, net | (1,209 | ) | — | (1,209 | ) | |||||||
Loss before provision for income taxes, minority interests, equity in earnings of non-consolidated entities, gains on sale of properties-affiliates and discontinued operations | (74,392 | ) | — | (74,392 | ) | |||||||
Provision for income taxes | (3,374 | ) | — | (3,374 | ) | |||||||
Minority interests | 2,652 | (2,593 | ) (A) | 59 | ||||||||
Equity in earnings of non-consolidated entities | 46,467 | — | 46,467 | |||||||||
Gains on sale of properties-affiliates | 17,864 | — | 17,864 | |||||||||
Loss from continuing operations | $ | (10,783 | ) | $ | (2,593 | ) | $ | (13,376 | ) | |||
Loss from continuing operations per common share — basic | $ | (0.58 | ) | $ | — | $ | (0.40 | ) | ||||
Loss from continuing operations per common share — diluted | $ | (0.58 | ) | $ | — | $ | (0.40 | ) | ||||
Weighted average shares outstanding — basic | 64,910,123 | 34,530,028 | (B) | 99,440,151 | ||||||||
Weighted average shares outstanding — diluted | 64,910,123 | 34,530,028 | (B) | 99,440,151 |
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Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended December 31, 2007
(dollars in thousands, except share data)
(A) | Minority Interests | |||||
Adjustments for minority interest partners’ share of loss of the Partnership for the year ended December 31, 2007. | $ | (2,593 | ) | |||
(B) | Weighted Average Shares Outstanding – Basic and Diluted | |||||
Minority interest’s weighted average MLP Units | 34,530,028 | |||||
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Unaudited Pro Forma Condensed Consolidated Statement of Operations
Nine months ended September 30, 2008
(dollars in thousands, except share and per share data)
Lexington | Pro Forma | |||||||||||
Trust | Merger | Pro Forma | ||||||||||
(historical) | Adjustments | Adjusted | ||||||||||
Gross revenues: | ||||||||||||
Rental | $ | 308,382 | $ | — | $ | 308,382 | ||||||
Advisory and incentive fees | 1,072 | — | 1,072 | |||||||||
Tenant reimbursements | 31,178 | — | 31,178 | |||||||||
Total gross revenues | $ | 340,632 | — | $ | 340,632 | |||||||
Expenses applicable to revenues: | ||||||||||||
Depreciation and amortization | (191,596 | ) | — | (191,596 | ) | |||||||
Property operating | (60,804 | ) | — | (60,804 | ) | |||||||
General and administrative | (25,468 | ) | — | (25,468 | ) | |||||||
Non-operating income | 22,599 | — | 22,599 | |||||||||
Interest and amortization expense | (120,519 | ) | — | (120,519 | ) | |||||||
Debt satisfaction gains, net | 39,020 | — | 39,020 | |||||||||
Gains on sale of properties-affiliates | 31,806 | — | 31,806 | |||||||||
Income before provision for income taxes, minority interests, equity in losses of non-consolidated entities and discontinued operations | 35,670 | — | 35,670 | |||||||||
Provision for income taxes | (2,636 | ) | — | (2,636 | ) | |||||||
Minority interests | 5,372 | (15,302 | ) (A) | (9,930 | ) | |||||||
Equity in losses of non-consolidated entities | (23,171 | ) | — | (23,171 | ) | |||||||
Income (loss) from continuing operations | $ | 15,235 | $ | (15,302 | ) | $ | (67 | ) | ||||
Income (loss) from continuing operations per common share — basic | $ | 0.01 | $ | — | $ | (0.15 | ) | |||||
Loss from continuing operations per common share — diluted | $ | (0.14 | ) | $ | — | $ | (0.15 | ) | ||||
Weighted average shares outstanding — basic | 61,485,277 | 34,138,662 | (B) | 95,623,939 | ||||||||
Weighted average shares outstanding — diluted | 101,789,804 | (6,165,865 | ) (C) | 95,623,939 |
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Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations
Nine months ended September 30, 2008
(dollars in thousands, except share data)
(A) | Minority interests | |||||
Adjustments for minority interest partners’ share of loss of the Partnership for the nine months ended September 30, 2008. | $ | (15,302 | ) | |||
(B) | Weighted Average Shares Outstanding — Basic | |||||
Minority interest’s weighted average MLP Units | 34,138,662 | |||||
(C) | Weighted Average Shares Outstanding — Diluted | |||||
Adjustment to historical weighted average shares outstanding | (6,165,865 | ) | ||||
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Table of Contents
Page | ||||
ARTICLE I DEFINITIONS | A-2 | |||
SECTION 1.01. Definitions | A-2 | |||
ARTICLE II THE MERGER | A-3 | |||
SECTION 2.01. MLP Merger | A-3 | |||
SECTION 2.02. Declaration of Trust | A-4 | |||
SECTION 2.03. By-laws | A-4 | |||
SECTION 2.04. Trustees and Officers of the Surviving Entity | A-4 | |||
SECTION 2.05. Effective Time | A-4 | |||
SECTION 2.06. Closing | A-4 | |||
ARTICLE III EFFECT OF THE MERGER | A-5 | |||
SECTION 3.01. Conversion of MLP Units | A-5 | |||
SECTION 3.02. Surrender and Payment | A-5 | |||
SECTION 3.03. Withholding Rights | A-5 | |||
SECTION 3.04. Appraisal Rights | A-6 | |||
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY | A-6 | |||
SECTION 4.01. Existence; Good Standing; Authority; Compliance with Law | A-6 | |||
SECTION 4.02. Authority Relative to this Agreement | A-6 | |||
SECTION 4.03. No Conflict; Required Filings and Consents | A-7 | |||
SECTION 4.04. Compliance | A-8 | |||
SECTION 4.05. SEC Filings; Financial Statements | A-8 | |||
SECTION 4.06. Absence of Certain Changes or Events | A-8 | |||
SECTION 4.07. Taxes | A-8 | |||
SECTION 4.08. Brokers | A-9 | |||
SECTION 4.09. Compliance with Laws | A-9 | |||
SECTION 4.10. No Other Representations or Warranties | A-9 | |||
ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE MLP | A-9 | |||
SECTION 5.01. Existence; Good Standing; Authority; Compliance with Law | A-9 | |||
SECTION 5.02. Authority Relative to this Agreement | A-10 | |||
SECTION 5.03. No Conflict; Required Filings and Consents | A-10 | |||
SECTION 5.04. Compliance | A-11 | |||
SECTION 5.05. SEC Filings; Financial Statements | A-11 |
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Page | ||||
SECTION 5.06. Absence of Certain Changes or Events | A-11 | |||
SECTION 5.07. Taxes | A-11 | |||
SECTION 5.08. Brokers | A-12 | |||
SECTION 5.09. Compliance with Laws | A-12 | |||
SECTION 5.10. No Other Representations or Warranties | A-12 | |||
ARTICLE VI CONDUCT OF BUSINESS PENDING THE CLOSING | A-12 | |||
SECTION 6.01. Conduct of Business by the Company | A-12 | |||
SECTION 6.02. Conduct of Business by the MLP | A-13 | |||
ARTICLE VII ADDITIONAL AGREEMENTS | A-13 | |||
SECTION 7.01. MLP Special Meeting | A-13 | |||
SECTION 7.02. MLP Merger Proxy Statement | A-13 | |||
SECTION 7.03. Reasonable Best Efforts | A-14 | |||
SECTION 7.04. Transfer Taxes | A-14 | |||
ARTICLE VIII CONDITIONS | A-14 | |||
SECTION 8.01. Conditions to the Obligations of Each Party | A-14 | |||
SECTION 8.02. Conditions to the Obligations of the MLP | A-15 | |||
SECTION 8.03. Conditions to the Obligations of the Company | A-15 | |||
ARTICLE IX TERMINATION | A-16 | |||
SECTION 9.01. Termination | A-16 | |||
SECTION 9.02. Effect of Termination | A-16 | |||
SECTION 9.03. Fees and Expenses | A-17 | |||
ARTICLE X GENERAL PROVISIONS | A-17 | |||
SECTION 10.01. Non-Survival of Representations and Warranties | A-17 | |||
SECTION 10.02. Notices | A-17 | |||
SECTION 10.03. Severability | A-17 | |||
SECTION 10.04. Amendment | A-18 | |||
SECTION 10.05. Entire Agreement; Assignment | A-18 | |||
SECTION 10.06. Parties in Interest | A-18 | |||
SECTION 10.07. Specific Performance | A-18 | |||
SECTION 10.08. Governing Law | A-18 | |||
SECTION 10.09. Waiver of Jury Trial | A-19 | |||
SECTION 10.10. Headings | A-19 | |||
SECTION 10.11. Counterparts | A-19 | |||
SECTION 10.12. Mutual Drafting | A-19 |
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A-1
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A-5
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COMPANY
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One Penn Plaza
Suite 4015
New York, NY 10119-4015
Fax No: (212) 594-6600
Attn: General Partner
One Penn Plaza, Suite 4015
New York, New York 10119-4015
Fax: (212) 594-6600
Attention: General Counsel
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THE LEXINGTON MASTER LIMITED PARTNERSHIP | ||||||
By: Lex GP-1 Trust, its sole general partner | ||||||
By | /s/ Brendan P. Mullinix | |||||
Title: Executive Vice President | ||||||
LEXINGTON REALTY TRUST | ||||||
By | /s/ Natasha Roberts | |||||
Title: Executive Vice President |
A-20
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þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2007 | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Maryland (State or other jurisdiction of incorporation or organization) One Penn Plaza, Suite 4015 | 13-3717318 (I.R.S. Employer Identification No.) | |
New York, NY (Address of principal executive offices) | 10119-4015 (Zip Code) |
Title of Each Class | Name of Each Exchange on which Registered | |||
Common Shares of beneficial interests, par value $0.0001 | New York Stock Exchange | |||
8.05% Series B Cumulative Redeemable Preferred Stock, par value $0.0001 | New York Stock Exchange | |||
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 | New York Stock Exchange | |||
7.55% Series D Cumulative Redeemable Preferred Stock, par value $0.0001 | New York Stock Exchange |
Item of | ||||||||
Form 10-K | Description | Page | ||||||
PART I | ||||||||
1 | Business | 1 | ||||||
1A. | Risk Factors | 8 | ||||||
1B. | Unresolved Staff Comments | 21 | ||||||
2. | Properties | 21 | ||||||
3. | Legal Proceedings | 34 | ||||||
4. | Submission of Matters to a Vote of Security Holders | 34 | ||||||
PART II | ||||||||
5. | Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities | 36 | ||||||
6. | Selected Financial Data | 39 | ||||||
7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 40 | ||||||
7A. | Quantitative and Qualitative Disclosures about Market Risk | 58 | ||||||
8. | Financial Statements and Supplementary Data | 60 | ||||||
9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 112 | ||||||
9A. | Controls and Procedures | 112 | ||||||
9B. | Other Information | 112 | ||||||
PART III | ||||||||
10. | Trustees and Executive Officers of the Registrant | 112 | ||||||
11. | Executive Compensation | 112 | ||||||
12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 112 | ||||||
13. | Certain Relationships and Related Transactions | 113 | ||||||
14. | Principal Accountant Fees and Services | 113 | ||||||
PART IV | ||||||||
15. | Exhibits and Financial Statement Schedules | 113 | ||||||
Signatures | 120 |
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Item 1. | Business |
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• | A wholly-owned portfolio of core office assets; | |
• | A wholly-owned portfolio of core warehouse/distribution assets; | |
• | A continuing 50% interest in a co-investment program that invests in senior and subordinated debt interests secured by both net leased and multi-tenanted real estate collateral; | |
• | A minority interest in a co-investment program that invests in specialty single tenant real estate assets; and | |
• | Equity securities in other net lease companies owned either individually or through an interest in one or more joint ventures or co-investment programs. |
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• | acquired all of the outstanding interests not otherwise owned by us in Triple Net Investment Company LLC, one of our co-investment programs, which resulted in us becoming the sole owner of the co-investment program’s 15 primarily single tenant net leased properties; | |
• | acquired all of the outstanding interests not otherwise owned by us in Lexington Acquiport Company, LLC and Lexington Acquiport Company II, LLC, two of our co-investment programs, which resulted in us becoming the sole owner of the co-investment program’s 26 primarily single tenant net leased properties; | |
• | terminated Lexington/Lion Venture L.P., one of our co-investment programs, and were distributed seven primarily single tenant net leased properties owned by the co-investment program; | |
• | announced a disposition program, whereby we began marketing non-core assets for sale; and | |
• | formed a co-investment program, Net Lease Strategic Assets Fund LP, which we refer to as NLS, with a subsidiary of Inland American Real Estate Trust, Inc., which has acquired 30 assets previously owned by us and which, in addition, is under contract to acquire an additional 13 assets currently owned by us and may invest in “core plus” net leased assets, such as manufacturing assets, call centers and other specialty assets. |
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Item 1A. | Risk Factors |
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Year | Balloon Payments | |
2008 | $31.8 million | |
2009 | $282.4 million | |
2010 | $118.2 million | |
2011 | $140.6 million | |
2012 | $633.8 million |
Balloon Payments - our | ||||||||
Proportionate | ||||||||
Year | Balloon Payments | Share | ||||||
2008 | $ 87 | .8 million | $ 43 | .9 million | ||||
2009 | $357 | .7 million | $176 | .3 million | ||||
2010 | $ — | $ — | ||||||
2011 | $ 2 | .1 million | $ 1 | .0 million | ||||
2012 | $ 81 | .8 million | $ 40 | .3 million |
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• | the discovery of previously unknown environmental conditions; | |
• | changes in law; | |
• | activities of tenants; or | |
• | activities relating to properties in the vicinity of our properties. |
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Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
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PROPERTY CHART
OFFICE
Primary | Net | |||||||||||||||
Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Leases Expiration | Leased | ||||||||||
12209 W. Markham St. | Little Rock | AR | Entergy Arkansas, Inc. | 36,311 | 10/31/2010 | 100 | % | |||||||||
19019 N. 59th Ave | Glendale | AZ | Honeywell, Inc. | 252,300 | 7/15/2011 | 100 | % | |||||||||
2211 S. 47th St. | Phoenix | AZ | Avnet, Inc. | 176,402 | 11/14/2012 | 100 | % | |||||||||
13430 N. Black Canyon Freeway | Phoenix | AZ | Bull HN Information Systems, Inc. | 138,940 | 10/31/2010 | 80 | % | |||||||||
8555 S. River Pwy | Tempe | AZ | ASM Lithography, Inc. (ASM Lithography Holding N.V.) | 95,133 | 6/30/2013 | 100 | % | |||||||||
2005 E. Technology Circle | Tempe | AZ | (i) Structure, LLC (Infocrossing, Inc.) | 60,000 | 12/31/2025 | 100 | % | |||||||||
275 S. Valencia Ave | Brea | CA | Bank of America NT & SA | 637,503 | 6/30/2012 | 100 | % | |||||||||
2230 E. Imperial Hwy. 1 | El Segundo | CA | Raytheon Company/Direct TV, Inc. | 184,636 | 12/31/2013 | 100 | % | |||||||||
2200 & 2222 E. Imperial Hwy. 3 | El Segundo | CA | Raytheon Company | 184,636 | 12/31/2018 | 100 | % | |||||||||
2200 & 2222 E. Imperial Hwy. 2 | El Segundo | CA | Raytheon Company | 959,000 | 12/31/2008 | 100 | % | |||||||||
17770 Cartwright Rd | Irvine | CA | Associates First Capital Corporation | 136,180 | 8/31/2008 | 100 | % | |||||||||
26210 & 26220 Enterprise Court | Lake Forest | CA | Apria Healthcare, Inc. (Apria Healthcare Group, Inc.) | 100,012 | 1/31/2012 | 100 | % | |||||||||
1500 Hughes Way | Long Beach | CA | Raytheon Company | 490,054 | 12/31/2008 | 100 | % | |||||||||
27016 Media Center Dr. | Los Angeles | CA | Playboy Enterprises, Inc. | 83,252 | 11/7/2012 | 100 | % | |||||||||
5724 W. Las Positas Blvd. | Pleasanton | CA | NK Leasehold | 40,914 | 11/30/2009 | 100 | % | |||||||||
255 California St. | San Francisco | CA | Multi-tenanted | 169,846 | Various | 92 | % | |||||||||
599 Ygnacio Valley Rd | Walnut Creek | CA | Vacant | 54,528 | None | 0 | % | |||||||||
5550 Tech Center Dr. | Colorado Springs | CO | Federal Express Corporation | 61,690 | 4/30/2009 | 100 | % | |||||||||
1110 Bayfield Dr. | Colorado Springs | CO | Honeywell International, Inc. | 166,575 | 11/30/2013 | 100 | % | |||||||||
9201 E. Dry Creek Rd | Centennial | CO | The Shaw Group, Inc. | 128,500 | 9/30/2017 | 100 | % | |||||||||
3940 S. Teller St. | Lakewood | CO | Travelers Express, Inc | 68,165 | 3/31/2012 | 100 | % | |||||||||
10 John St. | Clinton | CT | Unilever Supply Chain, Inc. (Unilever United States, Inc.) | 41,188 | 12/19/2008 | 100 | % | |||||||||
200 Executive Blvd. S | Southington | CT | Hartford Fire Insurance Company | 153,364 | 12/31/2012 | 100 | % | |||||||||
100 Barnes Rd | Wallingford | CT | 3M Company | 44,400 | 12/31/2010 | 100 | % | |||||||||
5600 Broken Sound Blvd. | Boca Raton | FL | Océ Printing Systems USA, Inc. (Oce-USA Holding, Inc.) | 136,789 | 2/14/2020 | 100 | % | |||||||||
12600 Gateway Blvd. | Fort Meyers | FL | Gartner, Inc. | 62,400 | 1/31/2013 | 100 | % | |||||||||
600 Business Center Dr. | Lake Mary | FL | JP Morgan Chase Bank | 125,155 | 9/30/2009 | 100 | % | |||||||||
550 Business Center Dr. | Lake Mary | FL | JP Morgan Chase Bank | 125,920 | 9/30/2009 | 100 | % | |||||||||
6277 Sea Harbor Dr. | Orlando | FL | Harcourt Brace & Company (Reed Elsevier, Inc.) | 355,840 | 3/31/2009 | 100 | % | |||||||||
Sandlake Rd./Kirkman Rd | Orlando | FL | Honeywell, Inc. | 184,000 | 4/30/2013 | 100 | % | |||||||||
9200 S. Park Center Loop | Orlando | FL | Corinthian Colleges, Inc. | 59,927 | 9/30/2013 | 100 | % | |||||||||
4200 RCA Blvd. | Palm Beach Gardens | FL | The Wackenhut Corporation | 114,518 | 2/28/2011 | 100 | % | |||||||||
10419 N. 30th St. | Tampa | FL | Time Customer Service, Inc. (Time, Inc.) | 132,981 | 6/30/2020 | 100 | % |
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Primary | Net | |||||||||||||||
Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Leases Expiration | Leased | ||||||||||
6303 Barfield Rd | Atlanta | GA | International Business Machines Corporation (Internet Security Systems, Inc.) | 238,600 | 5/31/2013 | 100 | % | |||||||||
859 Mount Vernon Hwy | Atlanta | GA | International Business Machines Corporation (Internet Security Systems, Inc.) | 50,400 | 5/31/2013 | 100 | % | |||||||||
4000 Johns Creek Pwy | Suwanee | GA | Kraft Foods N.A., Inc. | 87,219 | 1/31/2012 | 100 | % | |||||||||
160 Clairemont Ave | Decatur | GA | Multi-tenanted | 121,686 | 12/31/2007 | 24 | % | |||||||||
King St. | Honolulu | HI | Multi-tenanted | 236,545 | Various | 93 | % | |||||||||
1275 N.W. 128th St. | Clive | IA | Principal Life Insurance Company | 61,180 | 1/31/2012 | 100 | % | |||||||||
101 E. Erie St. | Chicago | IL | FCB Worldwide, Inc. (Interpublic Group of Companies, Inc.) | 227,569 | 3/15/2014 | 100 | % | |||||||||
850 & 950 Warrenville Rd | Lisle | IL | National Louis University | 99,329 | 12/31/2019 | 100 | % | |||||||||
500 Jackson St. | Columbus | IN | Cummins Engine Company, Inc. | 390,100 | 7/31/2019 | 100 | % | |||||||||
10300 Kincaid Dr. | Fishers | IN | Bank One Indiana, N.A. | 193,000 | 10/31/2009 | 100 | % | |||||||||
5757 Decatur Blvd. | Indianapolis | IN | Allstate Insurance Company | 89,956 | 8/31/2012 | 100 | % | |||||||||
10475 Crosspoint Blvd. | Fishers | IN | John Wiley & Sons, Inc. | 141,047 | 10/31/2019 | 100 | % | |||||||||
2300 Litton Lane | Hebron | KY | AGC Automotive Americas Company (AFG Industries, Inc.) | 80,441 | 8/31/2012 | 58 | % | |||||||||
5200 Metcalf Ave | Overland Park | KS | Employers Reinsurance Corporation | 291,168 | 12/22/2018 | 100 | % | |||||||||
4455 American Way | Baton Rouge | LA | Bell South Mobility, Inc. | 70,100 | 10/31/2012 | 100 | % | |||||||||
147 Milk St. | Boston | MA | Harvard Vanguard Medical Association | 52,337 | 5/31/2012 | 100 | % | |||||||||
33 Commercial St. | Foxboro | MA | Invensys Systems, Inc. (Siebe, Inc.) | 164,689 | 7/1/2015 | 100 | % | |||||||||
70 Mechanic St. | Foxboro | MA | Invensys Systems, Inc. (Siebe, Inc.) | 251,914 | 6/30/2014 | 100 | % | |||||||||
100 Light St. | Baltimore | MD | St. Paul Fire and Marine Insurance Company | 530,000 | 9/30/2009 | 100 | % | |||||||||
27404 Drake Rd | Farmington Hills | MI | Vacant | 108,499 | None | 0 | % | |||||||||
3701 Corporate Dr. | Farmington Hills | MI | Temic Automotive of North America, Inc. | 119,829 | 12/31/2016 | 100 | % | |||||||||
26555 Northwestern Hwy | Southfield | MI | Federal-Mogul Corporation | 187,163 | 1/31/2015 | 100 | % | |||||||||
3165 McKelvey Rd | Bridgeton | MO | BJC Health System | 52,994 | 3/31/2013 | 100 | % | |||||||||
9201 Stateline Rd | Kansas City | MO | Employers Reinsurance Corporation | 155,925 | 4/1/2019 | 100 | % | |||||||||
200 Lucent Lane | Cary | NC | Lucent Technologies, Inc. | 124,944 | 9/30/2011 | 100 | % | |||||||||
11707 Miracle Hills Dr. | Omaha | NE | (i) Structure, LLC (Infocrossing, Inc.) | 85,200 | 11/30/2025 | 100 | % | |||||||||
700 US Hwy. Route202-206 | Bridgewater | NJ | Biovail Pharmaceuticals, Inc. (Biovail Corporation) | 115,558 | 10/31/2014 | 100 | % | |||||||||
200 Milik St. | Carteret | NJ | Pathmark Stores, Inc. | 149,100 | 12/31/2011 | 100 | % | |||||||||
288 N. BRd. St. | Elizabeth | NJ | Bank of America | 30,000 | 8/31/2013 | 100 | % | |||||||||
389 & 399 Interpace Hwy | Parsippany | NJ | Sanofi-aventis U.S., Inc. (Aventis, Inc. & Aventis Pharma Holding GmbH) | 340,240 | 1/31/2010 | 100 | % | |||||||||
656 Plainsboro Rd | Plainsboro | NJ | Bank of America | 4,060 | 8/31/2013 | 100 | % | |||||||||
333 Mount Hope Ave | Rockaway | NJ | BASF Corporation | 95,500 | 9/30/2014 | 100 | % |
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Primary | Net | |||||||||||||||
Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Leases Expiration | Leased | ||||||||||
1415 Wyckoff Rd | Wall | NJ | New Jersey Natural Gas Company | 157,511 | 6/30/2021 | 100 | % | |||||||||
29 S. Jefferson Rd | Whippany | NJ | CAE SimuFlite, Inc. | 76,383 | 11/30/2021 | 100 | % | |||||||||
6226 W. Sahara Ave | Las Vegas | NV | Nevada Power Company | 282,000 | 1/31/2014 | 100 | % | |||||||||
180 S. Clinton St. | Rochester | NY | Frontier Corporation | 226,000 | 12/31/2014 | 100 | % | |||||||||
5550 Britton Pwy | Hilliard | OH | BMW Financial Services NA, LLC | 220,966 | 2/28/2021 | 100 | % | |||||||||
2000 Eastman Dr. | Milford | OH | Siemens Product Lifestyle Management Software, Inc. | 221,215 | 4/30/2011 | 100 | % | |||||||||
500 Olde Worthington Rd | Westerville | OH | InVentiv Communications, Inc. | 97,000 | 9/30/2015 | 100 | % | |||||||||
4848 129th E. Ave | Tulsa | OK | Metris Direct, Inc. (Metris Companies, Inc.) | 101,100 | 1/31/2010 | 100 | % | |||||||||
180 Rittenhouse Circle | Bristol | PA | Jones Apparel Group, Inc. | 96,000 | 7/31/2013 | 100 | % | |||||||||
250 Rittenhouse Circle | Bristol | PA | Jones Apparel Group, Inc. | 255,019 | 3/25/2008 | 100 | % | |||||||||
275 Technology Dr. | Canonsburg | PA | ANSYS, Inc. | 107,872 | 12/31/2014 | 100 | % | |||||||||
2550 Interstate Dr. | Harrisburg | PA | New Cingular Wireless PCS, LLC | 81,859 | 12/13/2013 | 100 | % | |||||||||
1701 Market St. | Philadelphia | PA | Morgan, Lewis & Bockius, LLC | 307,775 | 1/31/2014 | 100 | % | |||||||||
1460 Tobias Gadsen Blvd. | Charleston | SC | Hagemeyer North America, Inc. | 50,076 | 7/8/2020 | 100 | % | |||||||||
2210 Enterprise Dr. | Florence | SC | Washington Mutual Home Loans, Inc. | 177,747 | 6/30/2013 | 100 | % | |||||||||
3476 Stateview Blvd. | Fort Mill | SC | Wells Fargo Home Mortgage, Inc. | 169,083 | 1/30/2013 | 100 | % | |||||||||
2480 Stateview Blvd. | Fort Mill | SC | Wells Fargo Bank, N.A. | 169,218 | 5/31/2014 | 100 | % | |||||||||
Nijborg 15 | 3927 DA Renswoude | The Netherlands | AS Watson (Health & Beauty Continental Europe) | 17,610 | 12/20/2011 | 100 | % | |||||||||
Nijborg 17 | 3927 DA Renswoude | The Netherlands | AS Watson (Health & Beauty Continental Europe) | 114,195 | 6/14/2018 | 100 | % | |||||||||
207 Mockingbird Lane | Johnson City | TN | Sun Trust Bank | 63,800 | 11/30/2011 | 100 | % | |||||||||
1409 Centerpoint Blvd. | Knoxville | TN | Alstom Power, Inc. | 84,404 | 10/31/2014 | 100 | % | |||||||||
104 & 110 S. Front St. | Memphis | TN | Hnedak Bobo Group, Inc. | 37,229 | 10/31/2016 | 100 | % | |||||||||
3965 Airways Blvd. | Memphis | TN | Federal Express Corporation | 521,286 | 6/19/2019 | 100 | % | |||||||||
800 Ridgelake Blvd. | Memphis | TN | The Kroger Company | 75,000 | 7/1/2013 | 100 | % | |||||||||
601 & 701 Experian Pwy | Allen | TX | Experian Information Solutions, Inc. (TRW, Inc.) | 292,700 | 10/15/2010 | 100 | % | |||||||||
1401 & 1501 Nolan Ryan Pwy | Arlington | TX | Siemens Dematic Postal Automation, LP | 236,547 | 1/31/2014 | 100 | % | |||||||||
3535 Calder Ave | Beaumont | TX | Texas State Bank | 49,689 | 12/31/2012 | 100 | % | |||||||||
350 Pine St. | Beaumont | TX | Multi-tenanted | 425,198 | Various | 58 | % | |||||||||
1900 L. Don Dodson Dr. | Bedford | TX | Transamerica Life Insurance Company | 202,493 | 4/30/2019 | 29 | % | |||||||||
4201 Marsh Lane | Carrollton | TX | Carlson Restaurants Worldwide, Inc. (Carlson Companies, Inc.) | 130,000 | 11/30/2018 | 100 | % | |||||||||
4001 International Pwy | Carrollton | TX | Motel 6 Operating, LP (Accor S.A.) | 138,443 | 7/31/2015 | 100 | % | |||||||||
555 Dividend Dr. | Coppell | TX | Brinks, Inc. | 101,844 | 4/30/2017 | 100 | % | |||||||||
1600 Viceroy Dr. | Dallas | TX | TFC Services, Inc. (Freeman Decorating Company) | 249,452 | 1/31/2019 | 63 | % | |||||||||
6301 Gaston Ave | Dallas | TX | Multi-tenanted | 173,855 | Various | 62 | % | |||||||||
11511 Luna Rd | Farmers Branch | TX | Haggar Clothing Company (Texas Holding Clothing Corp. & Haggar Corp.) | 180,507 | 4/30/2016 | 100 | % |
B-24
Table of Contents
Primary | Net | |||||||||||||||
Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Leases Expiration | Leased | ||||||||||
1200 Jupiter Rd | Garland | TX | Raytheon Company | 278,759 | 5/31/2011 | 100 | % | |||||||||
10001 Richmond Ave | Houston | TX | Baker Hughes, Inc. | 554,385 | 9/27/2015 | 100 | % | |||||||||
15375 Memorial Dr. | Houston | TX | BP America Production Company | 327,325 | 9/15/2009 | 100 | % | |||||||||
810 & 820 Gears Rd | Houston | TX | IKON Office Solutions, Inc. | 157,790 | 1/31/2013 | 100 | % | |||||||||
2529 W. Thorn Dr. | Houston | TX | Baker Hughes, Inc. | 65,500 | 9/27/2015 | 100 | % | |||||||||
16676 Northchase Dr. | Houston | TX | Anadarko Petroleum Corporation | 101,111 | 7/31/2014 | 100 | % | |||||||||
1311 BRd.field Blvd. | Houston | TX | Transocean Offshore Deepwater Drilling, Inc. (Transocean Sedco Forex, Inc.) | 155,991 | 3/31/2011 | 100 | % | |||||||||
6555 Sierra Dr. | Irving | TX | TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC) | 247,254 | 3/31/2023 | 100 | % | |||||||||
8900 Freeport Pwy | Irving | TX | Nissan Motor Acceptance Corporation (Nissan North America, Inc.) | 268,445 | 3/31/2013 | 100 | % | |||||||||
6200 Northwest Pwy | San Antonio | TX | PacifiCare Health Systems, Inc. | 142,500 | 11/30/2010 | 100 | % | |||||||||
12645 W. Airport Rd | Sugar Land | TX | Baker Hughes, Inc. | 165,836 | 9/27/2015 | 100 | % | |||||||||
11555 University Blvd. | Sugar Land | TX | KS Management Services, LLP (St. Luke’s Episcopal Health System Corporation) | 72,683 | 11/30/2020 | 100 | % | |||||||||
2050 Roanoke Rd | Westlake | TX | DaimlerChrysler Financial Services Americas, LLC | 130,290 | 12/31/2011 | 100 | % | |||||||||
100 E. Shore Dr. | Glen Allen | VA | Multi-tenanted | 67,508 | Various | 94 | % | |||||||||
120 E. Shore Dr. | Glen Allen | VA | Capital One Services, Inc. | 77,045 | 3/31/2010 | 100 | % | |||||||||
130 E. Shore Dr. | Glen Allen | VA | Capital One Services, Inc. | 79,675 | 2/10/2010 | 100 | % | |||||||||
400 Butler Farm Rd | Hampton | VA | Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) | 100,632 | 12/31/2009 | 100 | % | |||||||||
421 Butler Farm Rd | Hampton | VA | Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) | 56,515 | 1/14/2010 | 100 | % | |||||||||
13651 McLearen Rd | Herndon | VA | Boeing Service Company (The Boeing Company) | 159,664 | 5/30/2008 | 100 | % | |||||||||
13775 McLearen Rd | Herndon | VA | Equant, Inc. (Equant N.V.) | 125,293 | 4/30/2015 | 100 | % | |||||||||
2800 Waterford Lake Dr. | Richmond | VA | Alstom Power, Inc. | 99,057 | 10/31/2014 | 100 | % | |||||||||
9950 Mayland Dr. | Richmond | VA | Circuit City Stores, Inc. | 288,000 | 2/28/2010 | 100 | % | |||||||||
5150 220th Ave | Issaquah | WA | OSI Systems, Inc. (Instrumentarium Corporation) | 106,944 | 12/14/2014 | 100 | % | |||||||||
22011 S.E. 51st St. | Issaquah | WA | OSI Systems, Inc. (Instrumentarium Corporation) | 95,600 | 12/14/2014 | 100 | % | |||||||||
848 Main St. & 849 Front St. | Evanston | WY | Multi-tenanted | 29,500 | Various | 74 | % | |||||||||
295 Chipeta Way | Salt Lake City | UT | Northwest Pipeline Corporation | 295,000 | 9/30/2009 | 100 | % | |||||||||
Office Total | 20,846,729 | |||||||||||||||
B-25
Table of Contents
PROPERTY CHART
INDUSTRIAL
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
Moody Commuter & Tech Park | Moody | AL | CEVA Logistics U.S., Inc. (TNT Holdings B.V.) | 595,346 | 1/2/2014 | 100 | % | |||||||||
1665 Hughes Way | Long Beach | CA | Raytheon Company | 200,541 | 12/31/2008 | 100 | % | |||||||||
3333 Coyote Hill Road | Palo Alto | CA | Xerox Corporation | 202,000 | 12/13/2013 | 100 | % | |||||||||
2455 Premier Drive | Orlando | FL | Walgreen Company | 205,016 | 3/31/2011 | 100 | % | |||||||||
3102 Queen Palm Drive | Tampa | FL | Time Customer Service, Inc. (Time, Inc.) | 229,605 | 6/30/2020 | 100 | % | |||||||||
1420 Greenwood Road | McDonough | GA | Atlas Cold Storage America, LLC | 296,972 | 10/31/2017 | 100 | % | |||||||||
7500 Chavenelle Road | Dubuque | IA | The McGraw-Hill Companies, Inc. | 330,988 | 6/30/2017 | 100 | % | |||||||||
3600 Southgate Drive | Danville | IL | Sygma Network, Inc. (Sysco Corporation) | 149,500 | 10/31/2015 | 100 | % | |||||||||
749 Southrock Drive | Rockford | IL | Jacobson Warehouse Company, Inc. (Jacobson Transportation Company, Inc.) | 150,000 | 12/31/2015 | 100 | % | |||||||||
3686 S. Central Avenue | Rockford | IL | Jacobson Warehouse Company, Inc. (Jacobson Transportation Company, Inc.) | 90,000 | 12/31/2014 | 100 | % | |||||||||
10000 Business Boulevard | Dry Ridge | KY | Dana Corporation | 336,350 | 6/30/2025 | 100 | % | |||||||||
730 N. Black Branch Road | Elizabethtown | KY | Dana Corporation | 167,770 | 6/30/2025 | 100 | % | |||||||||
750 N. Black Branch Road | Elizabethtown | KY | Dana Corporation | 539,592 | 6/30/2025 | 100 | % | |||||||||
301 Bill Bryan Road | Hopkinsville | KY | Dana Corporation | 424,904 | 6/30/2025 | 100 | % | |||||||||
4010 Airpark Drive | Owensboro | KY | Dana Corporation | 211,598 | 6/30/2025 | 100 | % | |||||||||
1901 Ragu Drive | Owensboro | KY | Unilever Supply Chain, Inc. (Unilever United States, Inc.) | 443,380 | 12/19/2020 | 100 | % | |||||||||
7150 Exchequer Drive | Baton Rouge | LA | Corporate Express Office Products, Inc. (Buhrmann NV) | 79,086 | 10/31/2013 | 100 | % | |||||||||
5001 Greenwood Road | Shreveport | LA | Libbey Glass, Inc. | 646,000 | 10/30/2026 | 100 | % | |||||||||
N. Wells Road | North Berwick | ME | United Technologies Corporation | 820,868 | 12/31/2010 | 100 | % | |||||||||
4425 Purks Road | Auburn Hills | MI | Vacant | 183,717 | None | 0 | % | |||||||||
6938 Elm Valley Drive | Kalamazoo | MI | Dana Corporation | 150,945 | 10/25/2021 | 100 | % | |||||||||
904 Industrial Road | Marshall | MI | Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.) | 195,640 | 8/17/2010 | 100 | % | |||||||||
1601 Pratt Avenue | Marshall | MI | Joseph Campbell Company | 53,600 | 9/30/2011 | 100 | % | |||||||||
43955 Plymouth Oaks Boulevard | Plymouth | MI | Tower Automotive Operations USA I, LLC (Tower (Tower Automotive Holdings I, LLC) | 290,133 | 10/31/2012 | 100 | % | |||||||||
46600 Port Street | Plymouth | MI | Vacant | 134,160 | None | 0 | % | |||||||||
7111 Crabb Road | Temperance | MI | CEVA Logistics U.S., Inc. (TNT Holdings B.V.) | 752,000 | 8/4/2012 | 100 | % | |||||||||
7670 Hacks Cross Road | Olive Branch | MS | MAHLE Clevite, Inc. (MAHLE Industries, Inc,) | 268,104 | 2/28/2016 | 100 | % | |||||||||
1133 Poplar Creek Road | Henderson | NC | Corporate Express Office Products, Inc. (Buhrmann NV) | 196,946 | 1/31/2014 | 100 | % | |||||||||
250 Swathmore Avenue | High Point | NC | Steelcase, Inc. | 244,851 | 9/30/2017 | 100 | % | |||||||||
2880 Kenny Biggs Road | Lumberton | NC | Quickie Manufacturing Corporation | 423,280 | 11/30/2021 | 100 | % | |||||||||
2203 Sherrill Drive | Statesville | NC | LA-Z-Boy Greensboro, Inc. (LA-Z-Boy, Inc.) | 639,600 | 4/30/2010 | 100 | % | |||||||||
121 Technology Drive | Durham | NH | Heidelberg Web Systems, Inc. | 500,500 | 3/30/2021 | 100 | % | |||||||||
1109 Commerce Boulevard | Swedesboro | NJ | Linens’n Things, Inc. | 262,644 | 12/31/2008 | 100 | % |
B-26
Table of Contents
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
75 North Street | Saugerties | NY | Rotron, Inc. (EG&G) | 52,000 | 12/31/2009 | 100 | % | |||||||||
10590 Hamilton Avenue | Cincinnati | OH | The Hillman Group, Inc. | 247,088 | 8/31/2016 | 100 | % | |||||||||
1650 & 1654 Williams Road | Columbus | OH | ODW Logistics, Inc. | 772,450 | 6/30/2018 | 100 | % | |||||||||
191 Arrowhead Drive | Hebron | OH | Owens Corning Insulating Systems, LLC | 250,450 | 4/13/2008 | 41 | % | |||||||||
200 Arrowhead Drive | Hebron | OH | Owens Corning Insulating Systems, LLC | 401,260 | 5/31/2009 | 100 | % | |||||||||
7005 Cochran Road | Glenwillow | OH | Royal Appliance Manufacturing Company | 458,000 | 7/31/2015 | 100 | % | |||||||||
10345 Philipp Parkway | Streetsboro | OH | L’Oreal USA, Inc. | 649,250 | 10/17/2019 | 100 | % | |||||||||
245 Salem Church Road | Mechanicsburg | PA | Exel Logistics, Inc. (NFC plc) | 252,000 | 12/31/2012 | 100 | % | |||||||||
6 Doughten Road | New Kingston | PA | Carolina Logistics Services | 330,000 | Month to month | 51 | % | |||||||||
34 East Main Street | New Kingston | PA | Quaker Sales and Distribution, Inc. | 179,200 | 2/29/2008 | 100 | % | |||||||||
159 Farley Drive | Dillon | SC | Harbor Freight Tools USA, Inc. (Central Purchasing, Inc.) | 1,010,859 | 12/31/2021 | 100 | % | |||||||||
50 Tyger River Drive | Duncan | SC | Plastic Omnium Exteriors, LLC | 218,382 | 5/31/2017 | 100 | % | |||||||||
101 Michelin Drive | Laurens | SC | CEVA Logistics U.S., Inc. (TNT Holdings B.V.) | 1,164,000 | 8/4/2012 | 100 | % | |||||||||
6050 Dana Way | Antioch | TN | W.M. Wright Company | 677,400 | 3/31/2021 | 50 | % | |||||||||
477 Distribution Parkway | Collierville | TN | Federal Express Corporation | 120,000 | 5/31/2021 | 100 | % | |||||||||
900 Industrial Boulevard | Crossville | TN | Dana Corporation | 222,200 | 9/30/2016 | 100 | % | |||||||||
120 S.E. Parkway Drive | Franklin | TN | Essex Group, Inc. (United Technologies Corporation) | 289,330 | 12/31/2013 | 100 | % | |||||||||
187 Spicer Drive | Gordonsville | TN | Dana Corporation | 148,000 | 8/31/2012 | 100 | % | |||||||||
3350 Miac Cove Road | Memphis | TN | Mimeo.com, Inc. | 141,359 | 9/30/2020 | 84 | % | |||||||||
3456 Meyers Avenue | Memphis | TN | Sears, Roebuck & Company | 780,000 | 2/28/2017 | 100 | % | |||||||||
3820 Micro Drive | Millington | TN | Ingram Micro, LP (Ingram Micro, Inc.) | 701,819 | 9/25/2011 | 100 | % | |||||||||
9110 Grogans Mill Road | Houston | TX | Baker Hughes, Inc. | 275,750 | 9/27/2015 | 100 | % | |||||||||
19500 Bulverde Road | San Antonio | TX | Harcourt Brace & Company (Reed Elsevier, Inc.) | 559,258 | 3/31/2016 | 100 | % | |||||||||
2425 Highway 77 N | Waxahachie | TX | James Hardie Building Products, Inc. (James Hardie N.V.) | 425,816 | 3/31/2020 | 100 | % | |||||||||
291 Park Center Drive | Winchester | VA | Kraft Foods North America, Inc. | 344,700 | 5/31/2011 | 100 | % | |||||||||
Industrial Total | 21,086,207 | |||||||||||||||
B-27
Table of Contents
PROPERTY CHART
RETAIL/OTHER
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
302 Coxcreek Parkway | Florence | AL | The Kroger Company | 42,130 | 7/1/2013 | 100 | % | |||||||||
5544 Atlanta Highway | Montgomery | AL | Vacant | 60,698 | None | 0 | % | |||||||||
Bisbee Naco Highway & Highway 92 | Bisbee | AZ | Safeway Stores, Inc. | 30,181 | 3/31/2009 | 100 | % | |||||||||
10415 Grande Avenue | Sun City | AZ | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 10,000 | 4/30/2012 | 100 | % | |||||||||
Grant Road & Craycroft Road | Tucson | AZ | Safeway Stores, Inc. | 37,268 | 3/31/2009 | 100 | % | |||||||||
Old Mamoth Road & Meridian Boulevard | Mammoth Lakes | CA | Safeway Stores, Inc. | 44,425 | 5/31/2012 | 100 | % | |||||||||
255 Northgate Drive | Manteca | CA | Kmart Corporation | 107,489 | 12/31/2018 | 100 | % | |||||||||
12080 Carmel Mountain Road | San Diego | CA | Kmart Corporation | 107,210 | 12/31/2018 | 100 | % | |||||||||
12000 East Mississippi Ave | Aurora | CO | Safeway Stores, Inc. | 24,000 | 5/31/2012 | 100 | % | |||||||||
Kipling Street & Bowles Avenue | Littleton | CO | Vacant | 29,360 | None | 0 | % | |||||||||
10340 U.S. 19 | Port Richey | FL | Kingswere Furniture | 53,820 | 11/30/2017 | 100 | % | |||||||||
2010 Apalachee Parkway | Tallahassee | FL | Kohl’s Department Stores, Inc. | 102,381 | 1/31/2028 | 100 | % | |||||||||
2223 N. Druid Hills Road | Atlanta | GA | Bank South, N.A. (Bank of America Corporation) | 6,260 | 12/31/2009 | 100 | % | |||||||||
956 Ponce de Leon Avenue | Atlanta | GA | Bank South, N.A. (Bank of America Corporation) | 3,900 | 12/31/2009 | 100 | % | |||||||||
4545 Chamblee-Dunwoody Road | Chamblee | GA | Bank South, N.A. (Bank of America Corporation) | 4,565 | 12/31/2009 | 100 | % | |||||||||
201 W. Main Street | Cumming | GA | Bank South, N.A. (Bank of America Corporation) | 14,208 | 12/31/2009 | 100 | % | |||||||||
3468 Georgia Highway 120 | Duluth | GA | Bank South, N.A. (Bank of America Corporation) | 9,300 | 12/31/2009 | 100 | % | |||||||||
1066 Main Street | Forest Park | GA | Bank South, N.A. (Bank of America Corporation) | 14,859 | 12/31/2009 | 100 | % | |||||||||
825 Southway Drive Boulevard | Jonesboro | GA | Bank South, N.A. (Bank of America Corporation) | 4,894 | 12/31/2009 | 100 | % | |||||||||
1698 Mountain Industrial | Stone Mountain | GA | Bank South, N.A. (Bank of America Corporation) | 5,704 | 12/31/2009 | 100 | % | |||||||||
Fort Street Mall, King Street | Honolulu | HI | Macy’s Department Stores, Inc. | 85,610 | 9/30/2009 | 100 | % | |||||||||
1150 W. Carl Sandburg Drive | Galesburg | IL | Kmart Corporation | 94,970 | 12/31/2018 | 100 | % | |||||||||
928 First Avenue | Rock Falls | IL | Rock Falls Country Market, LLC (Rock Island Country Market, LLC) | 27,650 | 9/30/2011 | 100 | % | |||||||||
502 E. Carmel Drive | Carmel | IN | Marsh Supermarkets, Inc. | 38,567 | 10/31/2013 | 100 | % | |||||||||
5104 N. Franklin Road | Lawrence | IN | Marsh Supermarkets, Inc. | 28,721 | 10/31/2013 | 100 | % | |||||||||
205 Homer Road | Minden | LA | Safeway Stores, Inc. | 35,000 | 11/30/2012 | 100 | % | |||||||||
7200 Cradle Rock Way | Columbia | MD | GFS Realty, Inc. | 57,209 | 12/31/2008 | 100 | % | |||||||||
9580 Livingston Road | Oxon Hill | MD | GFS Realty, Inc. (Giant Food, Inc.) | 107,337 | 2/28/2014 | 100 | % | |||||||||
2401 Wooton Parkway | Rockville | MD | GFS Realty, Inc. (Giant Food, Inc.) | 51,682 | 4/30/2017 | 100 | % | |||||||||
24th Street W. & St. John’s Avenue | Billings | MT | Safeway Stores, Inc. | 40,800 | 5/31/2010 | 100 | % | |||||||||
35400 Cowan Road | Westland | MI | Sam’s Real Estate Business Trust | 101,402 | 1/31/2009 | 100 | % | |||||||||
Little Rock Road & | ||||||||||||||||
Tuckaseegee Road | Charlotte | NC | Food Lion, Inc. | 33,640 | 10/31/2013 | 100 | % | |||||||||
Brown Mill Road & US 601 | Concord | NC | Food Lion, Inc. | 32,259 | 10/31/2013 | 100 | % |
B-28
Table of Contents
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
104 Branchwood Shopping Center | Jacksonville | NC | Food Lion, Inc. | 23,000 | 2/28/2013 | 100 | % | |||||||||
US 221 & Hospital Road | Jefferson | NC | Food Lion, Inc. | 23,000 | 2/28/2013 | 100 | % | |||||||||
291 Talbert Boulevard | Lexington | NC | Food Lion, Inc. | 23,000 | 2/28/2013 | 100 | % | |||||||||
835 Julian Avenue | Thomasville | NC | Food Lion, Inc. | 21,000 | 10/31/2008 | 100 | % | |||||||||
10 South Avenue | Garwood | NJ | Pathmark Stores, Inc. | 52,000 | 5/31/2011 | 100 | % | |||||||||
900 S. Canal Street | Carlsbad | NM | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 10,000 | 4/30/2012 | 100 | % | |||||||||
130 Midland Avenue | Portchester | NY | Pathmark Stores, Inc. | 59,000 | 10/31/2013 | 100 | % | |||||||||
21082 Pioneer Plaza Drive | Watertown | NY | Kmart Corporation | 120,727 | 12/31/2018 | 100 | % | |||||||||
4733 Hills and Dales Road | Canton | OH | Bally’s Total Fitness of the Midwest (Bally’s Health & Tennis Corporation) | 37,214 | 12/31/2009 | 100 | % | |||||||||
4831 Whipple Avenue N.W | Canton | OH | Best Buy Company, Inc. | 46,350 | 2/26/2018 | 100 | % | |||||||||
1084 E. Second Street | Franklin | OH | Marsh Supermarkets, Inc. | 29,119 | 10/31/2013 | 100 | % | |||||||||
5350 Leavitt Road | Lorain | OH | Kmart Corporation | 193,193 | 12/31/2018 | 100 | % | |||||||||
N.E.C. 45th Street & Lee Boulevard | Lawton | OK | Safeway Stores, Inc. | 30,757 | 3/31/2009 | 100 | % | |||||||||
6910 S. Memorial Highway | Tulsa | OK | Toys “R” Us, Inc. | 43,123 | 5/31/2011 | 100 | % | |||||||||
12535 S.E. 82nd Avenue | Clackamas | OR | Toys “R” Us, Inc. | 42,842 | 5/31/2011 | 100 | % | |||||||||
1642 Williams Avenue | Grants Pass | OR | Safeway Stores, Inc. | 33,770 | 3/31/2009 | 100 | % | |||||||||
559 N. Main Street | Doylestown | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
25 E. Main Street | Lansdale | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
1055 W. Baltimore Pike | Lima | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
4947 N. Broad Street | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
2001-03 Broad Street | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
6201 N. 5th Street | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
7323-29 Frankford Avenue | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
15 S. 52nd Street | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
10650 Bustleton Avenue | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
1025 W. Lehigh Avenue | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
2014 Cottman Avenue | Philadelphia | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
4160 Monument Road | Philadelphia | PA | Pathmark Stores, Inc. | 50,000 | 11/30/2010 | 100 | % | |||||||||
15 Newton — Richboro Road | Richboro | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
363 W. Lancaster Avenue | Wayne | PA | Citizens Bank of Pennsylvania | 3,800 | 8/31/2018 | 100 | % | |||||||||
South Carolina 52/52 Bypass | Moncks Corner | SC | Food Lion, Inc. | 23,000 | 2/28/2013 | 100 | % | |||||||||
1000 U.S. Highway 17 | North Myrtle Beach | SC | Food Lion, Inc. | 43,021 | 10/31/2008 | 100 | % | |||||||||
399 Peach Wood Centre Drive | Spartanburg | SC | Best Buy Company, Inc. | 45,800 | 2/26/2018 | 100 | % | |||||||||
1600 E. 23rd Street | Chattanooga | TN | The Kroger Company | 42,130 | 7/1/2008 | 100 | % | |||||||||
1053 Mineral Springs Road | Paris | TN | The Kroger Company | 31,170 | 7/1/2013 | 100 | % | |||||||||
3040 Josey Lane | Carrollton | TX | Ong’s Family, Inc. | 61,000 | 1/31/2021 | 100 | % | |||||||||
4121 S. Port Avenue | Corpus Christi | TX | Cafeteria Operators, LP (Furr’s Restaurant Group, Inc.) | 10,000 | 4/30/2012 | 100 | % | |||||||||
1610 S. Westmoreland Avenue | Dallas | TX | Malone’s Food Stores | 68,024 | 3/31/2017 | 100 | % | |||||||||
119 N. Balboa Road | El Paso | TX | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 10,000 | 4/30/2012 | 100 | % | |||||||||
3451 Alta Mesa Boulevard | Fort Worth | TX | Safeway Stores, Inc. | 44,000 | 5/31/2012 | 100 | % | |||||||||
101 W. Buckingham Road | Garland | TX | Minyard Foods | 40,000 | 11/30/2012 | 100 | % | |||||||||
1415 Highway 377 E. | Granbury | TX | Safeway Stores, Inc. | 35,000 | 11/30/2012 | 100 | % | |||||||||
2500 E. Carrier Parkway | Grand Prairie | TX | Safeway Stores, Inc. | 49,349 | 3/31/2009 | 100 | % | |||||||||
4811 Wesley Street | Greenville | TX | Safeway Stores, Inc. | 48,427 | 5/31/2011 | 100 | % |
B-29
Table of Contents
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
120 S. Waco Street | Hillsboro | TX | Safeway Stores, Inc. | 35,000 | 11/30/2012 | 100 | % | |||||||||
13133 Steubner Avenue | Houston | TX | The Kroger Company | 52,200 | 12/29/2011 | 100 | % | |||||||||
5402 4th Street | Lubbock | TX | Vacant | 53,820 | None | 0 | % | |||||||||
901 W. Expressway 83 | McAllen | TX | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 10,000 | 4/30/2012 | 100 | % | |||||||||
402 E. Crestwood Drive | Victoria | TX | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 10,000 | 4/30/2012 | 100 | % | |||||||||
9400 South 755 E | Sandy | UT | Vacant | 41,612 | None | 0 | % | |||||||||
3211 W. Beverly Street | Staunton | VA | Food Lion, Inc. | 23,000 | 2/28/2013 | 100 | % | |||||||||
9803 Edmonds Way | Edmonds | WA | PCC Natural Markets | 34,459 | 8/31/2028 | 100 | % | |||||||||
224th Street & Meridian Avenue | Graham | WA | Safeway Stores, Inc. | 44,718 | 3/31/2009 | 100 | % | |||||||||
18601 Alderwood Mall Boulevard | Lynnwood | WA | Toys “R” Us, Inc. | 43,105 | 5/31/2011 | 100 | % | |||||||||
400 E. Meridian Avenue | Milton | WA | Safeway Stores, Inc. | 44,718 | 3/31/2009 | 100 | % | |||||||||
1700 State Route 160 | Port Orchard | WA | Save-A-Lot, Ltd. | 27,968 | 1/31/2015 | 57 | % | |||||||||
228th Avenue N.E. | Redmond | WA | Safeway Stores, Inc. | 44,718 | 3/31/2009 | 100 | % | |||||||||
4512 N. Market Street | Spokane | WA | Safeway Stores, Inc | 38,905 | 3/31/2009 | 100 | % | |||||||||
3711 Gateway Drive | Eau Claire | WI | Kohl’s Deptartment Stores, Inc. | 76,164 | 1/25/2015 | 100 | % | |||||||||
97 Seneca Trail | Fairlea | WV | Kmart Corporation | 90,933 | 12/31/2018 | 100 | % | |||||||||
3621 E. Lincoln Way | Cheyenne | WY | Vacant | 31,420 | None | 0 | % | |||||||||
Retail/Other Subtotal | 3,588,655 | |||||||||||||||
Grand Total | 45,521,591 | |||||||||||||||
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NON-CONSOLIDATED PROPERTY
CHART
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
OFFICE | ||||||||||||||||
5201 W. Barraque Street | Pine Bluff | AR | Entergy Services, Inc. | 27,189 | 10/31/2010 | 100 | % | |||||||||
Route 64 W. & Junction 333 | Russellville | AR | Entergy Gulf States | 191,950 | 5/9/2008 | 100 | % | |||||||||
1440 E. 15th Street | Tucson | AZ | Cox Communications, Inc. | 28,591 | 9/30/2016 | 100 | % | |||||||||
3500 N. Coop Court | McDonough | GA | Litton Loan Servicing, LP & Credit - Based Asset and Securitzation, LLC | 62,000 | 8/31/2018 | 100 | % | |||||||||
2500 Patrick Henry Parkway | McDonough | GA | Georgia Power Company | 111,911 | 6/30/2015 | 100 | % | |||||||||
3265 E. Goldstone Drive | Meridian | ID | Voicestream PCS II Corporation (T-Mobile USA, Inc.) | 77,484 | 6/28/2019 | 100 | % | |||||||||
101 E. Washington Boulevard | Fort Wayne | IN | American Electric Power | 348,452 | 10/31/2016 | 100 | % | |||||||||
9601 Renner Boulevard | Lenexa | KS | Voicestream PCS II Corporation (T-Mobile USA, Inc.) | 77,484 | 10/31/2019 | 100 | % | |||||||||
First Park Drive | Oakland | ME | Omnipoint Holdings, Inc. (T-Mobile USA, Inc.) | 78,610 | 8/31/2020 | 100 | % | |||||||||
12000 &12025 Tech Center Drive | Livonia | MI | Kelsey-Hayes Company (TRW Automotive, Inc.) | 180,230 | 4/30/2014 | 100 | % | |||||||||
3943 Denny Avenue | Pascagoula | MS | Northrop Grumman Systems Corporation | 94,841 | 10/14/2008 | 100 | % | |||||||||
3201 Quail Springs Parkway | Oklahoma City | OK | AT& T Wireless Services, Inc. | 128,500 | 11/30/2010 | 100 | % | |||||||||
2999 SW 6th Street | Redmond | OR | Voice Stream PCS I LLC (T-Mobile USA, Inc.) | 77,484 | 1/31/2019 | 100 | % | |||||||||
265 Lehigh Street | Allentown | PA | Wachovia Bank N.A. | 71,230 | 10/31/2010 | 100 | % | |||||||||
17 Technology Circle | Columbia | SC | Blue Cross Blue Shield of South Carolina, Inc. | 456,304 | 9/30/2009 | 100 | % | |||||||||
420 Riverport Road | Kingport | TN | American Electric Power | 42,770 | 6/30/2013 | 100 | % | |||||||||
1600 Eberhardt Road | Temple | TX | Nextel of Texas | 108,800 | 1/31/2016 | 100 | % | |||||||||
26410 McDonald Road | Houston | TX | Montgomery County Management Company, LLC | 41,000 | 10/31/2019 | 100 | % | |||||||||
3711 San Gabriel | Mission | TX | Voice Stream PCS II Corporation (T-Mobile USA, Inc.) | 75,016 | 6/30/2015 | 100 | % | |||||||||
6455 State Hwy 303 N.E | Bremerton | WA | Nextel West Corporation | 60,200 | 5/14/2016 | 100 | % | |||||||||
Office Total | 2,340,046 | |||||||||||||||
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NON-CONSOLIDATED PROPERTY
CHART
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
INDUSTRIAL | ||||||||||||||||
109 Stevens Street | Jacksonville | FL | Unisource Worldwide, Inc. | 168,800 | 9/30/2009 | 100 | % | |||||||||
359 Gateway Drive | Livonia | GA | TI Group Automotive Systems, LLC | 133,221 | 5/31/2020 | 100 | % | |||||||||
3600 Army Post Road | Des Moines | IA | EDS Information Services, LLC (Electronic Data Systems Corporation) | 405,000 | 4/30/2012 | 100 | % | |||||||||
2935 Van Vactor Way | Plymouth | IN | Bay Valley Foods, LLC | 300,500 | 6/30/2015 | 100 | % | |||||||||
1901 49th Avenue | Minneapolis | MN | Owens Corning Roofing and Asphalt, LLC | 18,620 | 6/30/2015 | 100 | % | |||||||||
324 Industrial Park Road | Franklin | NC | SKF USA, Inc. | 72,868 | 12/31/2014 | 100 | % | |||||||||
736 Addison Road | Erwin | NY | Corning, Inc. | 408,000 | 11/30/2016 | 100 | % | |||||||||
590 Ecology Lane | Chester | SC | Owens Corning | 420,597 | 7/14/2025 | 100 | % | |||||||||
2401 Cherahala Boulevard | Knoxville | TN | Advance PCS, Inc. | 59,748 | 5/31/2013 | 100 | % | |||||||||
2424 Alpine Road | Eau Claire | WI | Silver Spring Gardens, Inc. (Huntsinger Farms, Inc.) | 159,000 | 2/28/2027 | 100 | % | |||||||||
Industrial Total | 2,146,354 | |||||||||||||||
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NON-CONSOLIDATED PROPERTY
CHART
Net | ||||||||||||||||
Primary Tenant | Rentable | Current Term | Percent | |||||||||||||
Property Location | City | State | (Guarantor) | Square Feet | Lease Expiration | Leased | ||||||||||
RETAIL/OTHER | ||||||||||||||||
101 Creger Drive | Ft. Collins | CO | Lithia Motors | 10,000 | 5/31/2012 | 100 | % | |||||||||
11411 N. Kelly Avenue | Oklahoma City | OK | American Golf Corporation | 13,924 | 12/31/2017 | 100 | % | |||||||||
25500 State Highway 249 | Tomball | TX | Parkway Chevrolet, Inc. | 77,076 | 8/31/2026 | 100 | % | |||||||||
1321 Commerce Street | Dallas | TX | Adolphus Associates (Met Life) | 498,122 | 6/15/2009 | 100 | % | |||||||||
Retail/Other Total | 599,122 | |||||||||||||||
Grand Total | 5,085,522 | |||||||||||||||
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Item 3. | Legal Proceedings |
Item 4. | Submission of Matters to a Vote of Security Holders |
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Name | Business Experience | |
Michael L. Ashner Age 55 | Mr. Ashner served as Chairman and the Chief Executive Officer of Newkirk until consummation of the Merger, a position he held since June 2005. On December 31, 2006, Mr. Ashner was appointed as our Executive Chairman and Director of Strategic Acquisitions. Mr. Ashner also serves as a trustee and the Chairman and Chief Executive Officer of Winthrop Realty Trust, positions he has held since January 2004. Mr. Ashner is a member of the Investment Committee of Concord appointed by the administrative manager of Concord. Since 1996 he has also served as the Chief Executive Officer of Winthrop Realty Partners, L.P., which we refer to as Winthrop, a real estate investment and management company. Mr. Ashner devotes the business time to us as is reasonably required to perform his duties. Mr. Ashner served as a director and Chief Executive Officer of Shelbourne Properties I, Inc., Shelbourne Properties II, Inc. and Shelbourne Properties III, Inc., three real estate investment trusts, from August 2002 until their liquidation in April 2004. Mr. Ashner also serves on the board of directors of NBTY, Inc., a manufacturer and distributor of nutritional supplements. | |
E. Robert Roskind Age 62 | Mr. Roskind became Co-Vice Chairman on December 31, 2006, and served as our Chairman from October 1993 to December 31, 2006 and our Co-Chief Executive Officer from October 1993 to January 2003. Mr. Roskind is a member of the Investment Committee of Concord appointed by us. He founded The LCP Group, L.P., a real estate advisory firm, in 1973 and has been its Chairman since 1976. Mr. Roskind also serves as Chairman of Crescent Hotels and Resorts, as a member of the Board of Directors of LCP Investment Corporation, a Japanese real estate investment trust listed on the Tokyo Stock Exchange, and as a member of the Board of Directors of LCP Reit Advisors, the external advisor to LCP Investment Corporation, each of which is an affiliate of the LCP Group L.P. Mr. Roskind spends approximately 25% of his business time on the affairs of The LCP Group L.P. and its affiliates; however, Mr. Roskind prioritizes his business time to address our needs ahead of The LCP Group L.P. | |
Richard J. Rouse Age 62 | Mr. Rouse became Co-Vice Chairman on December 31, 2006, served, and continues to serve as our Chief Investment Officer since January 2003 and as one of our trustees since October 1993. He served as our President from October 1993 to April 1996, was our Co-Chief Executive Officer from October 1993 until January 2003, and since April 1996 served as our Vice Chairman. | |
T. Wilson Eglin Age 43 | Mr. Eglin has served as our Chief Executive Officer since January 2003, our Chief Operating Officer since October 1993, our President since April 1996 and as a trustee since May 1994. He served as one of our Executive Vice Presidents from October 1993 to April 1996. Mr. Eglin is a member of the Investment Committee of Concord appointed by us. | |
Patrick Carroll Age 44 | Mr. Carroll has served as our Chief Financial Officer since May 1998, our Treasurer since January 1999 and one of our Executive Vice Presidents since January 2003. Prior to joining us, Mr. Carroll was, from 1986 to 1998, in the real estate practice of Coopers & Lybrand L.L.P., a public accounting firm that was one of the predecessors of Pricewaterhouse Coopers LLP. | |
Paul R. Wood Age 47 | Mr. Wood has served as one of our Vice Presidents, and our Chief Accounting Officer and Secretary since October 1993. |
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Item 5. | Market For The Registrant’s Common Equity, Related Shareholder Matters And Issuer Purchases of Equity Securities |
For the Quarters Ended: | High | Low | ||||||
December 31, 2007 | $ | 20.90 | $ | 14.52 | ||||
September 30, 2007 | 21.54 | 18.78 | ||||||
June 30, 2007 | 21.65 | 20.38 | ||||||
March 31, 2007 | 22.42 | 20.02 | ||||||
December 31, 2006 | 22.73 | 20.40 | ||||||
September 30, 2006 | 21.90 | 19.53 | ||||||
June 30, 2006 | 22.15 | 19.87 | ||||||
March 31, 2006 | 22.90 | 19.64 |
Quarters Ended | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
March 31, | $ | 0.5975 | $ | 0.365 | $ | 0.360 | $ | 0.350 | $ | 0.335 | ||||||||||
June 30, | $ | 0.375 | $ | 0.365 | $ | 0.360 | $ | 0.350 | $ | 0.335 | ||||||||||
September 30, | $ | 0.375 | $ | 0.365 | $ | 0.360 | $ | 0.350 | $ | 0.335 | ||||||||||
December 31, | $ | 0.375 | $ | 0.365 | $ | 0.360 | $ | 0.350 | $ | 0.335 |
2007 | 2006 | 2005 | ||||||||||
Total dividends per share | $ | 2.93342(1 | ) | $ | 1.46 | $ | 1.44 | |||||
Ordinary income | 42.36 | % | 68.89 | % | 87.29 | % | ||||||
15% rate — qualifying dividend | 2.50 | 0.77 | 1.04 | |||||||||
15% rate gain | 35.62 | 7.97 | 8.72 | |||||||||
25% rate gain | 19.52 | 5.13 | 2.95 | |||||||||
Return of capital | — | 17.24 | — | |||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||
(1) | Includes the special dividend of $0.2325 paid in January 2007 and a portion of the special dividend of $2.10 paid in January 2008. Of the total dividend paid in January 2008, $1.21092 is allocated to 2007 and $1.26408 is allocated to 2008. |
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2007 | 2006 | 2005 | ||||||||||
Ordinary income | 42.36 | % | 83.24 | % | 87.29 | % | ||||||
15% rate — qualifying dividend | 2.50 | 0.93 | 1.04 | |||||||||
15% rate gain | 35.62 | 9.63 | 8.72 | |||||||||
25% rate gain | 19.52 | 6.20 | 2.95 | |||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||
2007 | 2006 | 2005 | ||||||||||
Ordinary income | 42.36 | % | 83.24 | % | 87.29 | % | ||||||
15% rate — qualifying dividend | 2.50 | 0.93 | 1.04 | |||||||||
15% rate gain | 35.62 | 9.63 | 8.72 | |||||||||
25% rate gain | 19.52 | 6.20 | 2.95 | |||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||
2007 | ||||
Ordinary income | 42.36 | % | ||
15% rate — qualifying dividend | 2.50 | |||
15% rate gain | 35.62 | |||
25% rate gain | 19.52 | |||
100.00 | % | |||
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Number of Securities | ||||||||||||
Remaining Available for | ||||||||||||
Number of Securities | Future Issuance Under | |||||||||||
to be Issued Upon | Weighted-Average | Equity Compensation | ||||||||||
Exercise of | Exercise Price of | Plans (Excluding | ||||||||||
Outstanding Options, | Outstanding Options, | Securities Reflected in | ||||||||||
Plan Category | Warrants and Rights | Warrants and Rights | Column (a)) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | 0 | $ | 0 | 4,999,422 | ||||||||
Equity compensation plans not approved by security holders | 0 | 0 | — | |||||||||
Total | 0 | $ | 0 | 4,999,422 | ||||||||
Total Number of | Maximum Number of | |||||||||||||||
Shares/Units | Shares That May Yet | |||||||||||||||
Total Number of | Average Price | Purchased as Part of | Be Purchased Under | |||||||||||||
Shares/Units | Paid per | Publicly Announced | the Plans or | |||||||||||||
Period | Purchased | Share/Unit ($) | Plans or Programs | Programs | ||||||||||||
October 1 — 31, 2007 | 32,392 | 20.05 | 32,392 | 3,374,440 | ||||||||||||
November 1 — 30, 2007 | 1,277,810 | 18.02 | 1,277,810 | 2,096,630 | ||||||||||||
December 1 — 31, 2007 | 1,326,648 | 17.39 | 1,326,648 | 5,769,982 | ||||||||||||
Fourth Quarter 2007 | 2,636,850 | 17.72 | 2,636,850 | 5,769,982 | ||||||||||||
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Item 6. | Selected Financial Data |
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Total gross revenues | $ | 431,747 | $ | 186,693 | $ | 162,383 | $ | 109,901 | $ | 73,999 | ||||||||||
Expenses applicable to revenues | (297,139 | ) | (106,796 | ) | (81,645 | ) | (37,581 | ) | (24,568 | ) | ||||||||||
Interest and amortization expense | (163,628 | ) | (65,097 | ) | (56,177 | ) | (36,448 | ) | (25,609 | ) | ||||||||||
Income (loss) from continuing operations | (10,783 | ) | (7,909 | ) | 17,606 | 27,021 | 15,873 | |||||||||||||
Total discontinued operations | 87,634 | 15,662 | 15,089 | 17,786 | 17,776 | |||||||||||||||
Net income | 76,851 | 7,753 | 32,695 | 44,807 | 33,649 | |||||||||||||||
Net income (loss) allocable to common shareholders | 50,118 | (8,682 | ) | 16,260 | 37,862 | 30,257 | ||||||||||||||
Income (loss) from continuing operations per common share — basic | (0.58 | ) | (0.47 | ) | 0.03 | 0.43 | 0.37 | |||||||||||||
Income from continuing operations per common share — diluted | (0.58 | ) | (0.47 | ) | 0.03 | 0.41 | 0.36 | |||||||||||||
Income from discontinued operations — basic | 1.35 | 0.30 | 0.30 | 0.38 | 0.52 | |||||||||||||||
Income from discontinued operations — diluted | 1.35 | 0.30 | 0.30 | 0.39 | 0.52 | |||||||||||||||
Net income (loss) per common share — basic | 0.77 | (0.17 | ) | 0.33 | 0.81 | 0.89 | ||||||||||||||
Net income (loss) per common share — diluted | 0.77 | (0.17 | ) | 0.33 | 0.80 | 0.88 | ||||||||||||||
Cash dividends declared per common share | 3.60 | 2.0575 | 1.445 | 1.410 | 1.355 | |||||||||||||||
Net cash provided by operating activities | 287,651 | 108,020 | 105,457 | 90,736 | 68,883 | |||||||||||||||
Net cash used in investing activities | (31,490 | ) | (154,080 | ) | (643,777 | ) | (202,425 | ) | (295,621 | ) | ||||||||||
Net cash provided by financing activities | 38,973 | 483 | 444,878 | 242,723 | 228,986 | |||||||||||||||
Ratio of earnings to combined fixed charges and preferred dividends | N/A | N/A | 1.15 | 1.47 | 1.52 | |||||||||||||||
Real estate assets, net | 3,715,447 | 3,471,027 | 1,641,927 | 1,227,262 | 1,001,772 | |||||||||||||||
Investments in non-consolidated entities | 226,476 | 247,045 | 191,146 | 132,738 | 69,225 | |||||||||||||||
Total assets | 5,265,163 | 4,624,857 | 2,160,232 | 1,697,086 | 1,207,411 | |||||||||||||||
Mortgages, notes payable and credit facility, including discontinued operations | 3,047,550 | 2,132,661 | 1,170,560 | 765,909 | 551,385 | |||||||||||||||
Shareholders’ equity | 939,071 | 1,122,444 | 891,310 | 847,290 | 579,848 | |||||||||||||||
Preferred share liquidation preference | 389,000 | 234,000 | 234,000 | 214,000 | 79,000 |
N/A — Ratio is below 1.0, deficit of $84,014 and $6,503 exists at December 31, 2007 and 2006, respectively. |
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Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2013 and | ||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total | ||||||||||||||||||||||
Notes payable(2)(3) | $ | 100,083 | $ | 339,552 | $ | 164,550 | $ | 184,059 | $ | 677,991 | $ | 1,581,315 | $ | 3,047,550 | ||||||||||||||
Contract rights payable | — | 229 | 491 | 540 | 593 | 11,591 | 13,444 | |||||||||||||||||||||
Purchase obligations | — | — | — | — | — | — | — | |||||||||||||||||||||
Tenant incentives | 8,445 | 10,000 | — | — | — | — | 18,445 | |||||||||||||||||||||
Operating lease obligations(1) | 4,431 | 3,858 | 3,631 | 3,235 | 2,830 | 16,720 | 34,705 | |||||||||||||||||||||
$ | 112,959 | $ | 353,639 | $ | 168,672 | $ | 187,834 | $ | 681,414 | $ | 1,609,626 | $ | 3,114,144 | |||||||||||||||
(1) | Includes ground lease payments and office rent. Amounts disclosed through 2008 include rent for our principal executive office which is fixed through 2008 and adjusted to fair market value as determined at January 2009. Therefore, the amounts for 2009 and thereafter do not include principal executive office rent. In addition certain ground lease payments due under bond leases allow for a right of offset between the lease obligation and the debt service and accordingly are not included. | |
(2) | We have $1.5 million in outstanding letters of credit. | |
(3) | Includes balloon payments. |
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CDO Loan Assets and Loan Securities — December 31, 2007 | CDO Notes — December 31, 2007 | |||||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||||
Par Value of | Average | Averaged | Outstanding | Average | ||||||||||||||||||||||||
Date | CDO | Interest | Life | CDO | Interest | Stated | Retained | |||||||||||||||||||||
Closed | Collateral(3) | Rate | (Years) | Notes(1) | Rate | Maturity | Interest(2) | |||||||||||||||||||||
12/21/2006 | $ | 464,601 | 6.70 | % | 4.29 | $ | 376,650 | 5.37 | % | 12/2016 | $ | 88,350 |
(1) | Includes only notes held by third parties. | |
(2) | Concord’s potential economic loss is limited to the retained interest of its investment in CDO-1, of which the MLP would bear 50% of such loss. | |
(3) | Consists of loan assets with a par value of $338,681 and loan securities with a par value of $125,920. |
Industry | % of Face Amount | |||
Office | 44.22 | % | ||
Hospitality | 30.54 | % | ||
Multi-family | 8.62 | % | ||
Industrial | 7.09 | % | ||
Mixed Use | 5.10 | % | ||
Retail | 4.43 | % | ||
100 | % | |||
Fixed Rate: | Floating Rate: | |||||||||||||||||||
Carrying | Allocation by | Average | Average Spread | |||||||||||||||||
Value(1) | Par Value | Investment Type | Yield | over LIBOR(2) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Whole loans, floating rate | $ | 20,000 | $ | 20,000 | 4.31 | % | — | 195 bps | ||||||||||||
Whole loans, fixed rate | 20,900 | 20,900 | 4.50 | % | 6.56 | % | — | |||||||||||||
Subordinate interests in whole loans, floating rate | 108,766 | 108,864 | 23.43 | % | — | 244 bps | ||||||||||||||
Subordinate interests in whole loans, fixed rate | 24,567 | 27,619 | 5.95 | % | 7.46 | % | — | |||||||||||||
Mezzanine loans, floating rate | 81,419 | 81,410 | 17.52 | % | — | 270 bps | ||||||||||||||
Mezzanine loans, fixed rate | 77,669 | 79,888 | 17.19 | % | 5.92 | % | — | |||||||||||||
Loan securities, floating rate | 100,955 | 103,428 | 22.26 | % | — | 189 bps | ||||||||||||||
Loan securities, floating rate | 18,448 | 22,492 | 4.84 | % | 5.97 | % | — | |||||||||||||
Total/Average | $ | 452,724 | $ | 464,601 | 100 | % | 6.30 | % | 230 bps | |||||||||||
(1) | Net of scheduled amortization payments and prepayments, unamortized fees and discounts. | |
(2) | Spreads over an index other than LIBOR have been adjusted to a LIBOR based equivalent. |
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Number of Loan | ||||||||||||
Year of Maturity | Assets Maturing | Carrying Value | % of Total | |||||||||
(In thousands) | ||||||||||||
2008 | 7 | $ | 140,183 | 42.06 | % | |||||||
2009 | 2 | 34,584 | 10.38 | % | ||||||||
2010 | 4 | 46,465 | 13.94 | % | ||||||||
2011 | 1 | 20,900 | 6.27 | % | ||||||||
2012 | 1 | 5,017 | 1.50 | % | ||||||||
Thereafter | 7 | 86,172 | 25.85 | % | ||||||||
Total | 22 | $ | 333,321 | 100 | % | |||||||
Weighted average maturity is 3.45 years(1) |
(1) | The calculation of weighted average maturity is based upon the remaining initial term and does not take into account any maturity extension periods or the ability to prepay the investment after a negotiated lock-out period, which may be available to the borrower. |
Gross Unrealized | Impairment | Carrying | ||||||||||||||||||
Description | Par Value | Loss | Loss | Value | ||||||||||||||||
Floating rate | $ | 22,492 | $ | (321 | ) | $ | (1,601 | ) | $ | 18,448 | ||||||||||
Fixed rate | 103,428 | (2,355 | ) | — | 100,955 | |||||||||||||||
Total | $ | 125,920 | $ | (2,676 | ) | $ | (1,601 | ) | $ | 119,403 | ||||||||||
Rating | Par Value | Percentage | ||||||
(In thousands) | ||||||||
BBB+ | $ | 9,000 | 7.15 | % | ||||
BBB | 2,151 | 1.71 | % | |||||
BBB- | 44,384 | 35.25 | % | |||||
BB+ | 33,392 | 26.52 | % | |||||
BB | 18,500 | 14.69 | % | |||||
B+ | 7,000 | 5.56 | % | |||||
Not rated | 11,493 | 9.12 | % | |||||
Total | $ | 125,920 | 100 | % | ||||
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Fixed Rate: | Floating Rate: | |||||||||||||||||||
Allocation by | Average | Average Spread | ||||||||||||||||||
Carrying Value(1) | Par Value | Investment Type | Yield | over LIBOR(2) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Whole loans, floating rate | $ | 136,260 | $ | 136,260 | 19 | % | — | 218 bps | ||||||||||||
Whole loans, fixed rate | 6,300 | 6,300 | 1 | % | 6.40 | % | — | |||||||||||||
Subordinate interests in whole loans, floating rate | 163,077 | 163,908 | 23 | % | — | 223 bps | ||||||||||||||
Subordinate interests in whole loans, fixed rate | 14,196 | 15,750 | 2 | % | 8.63 | % | — | |||||||||||||
Mezzanine loans, floating rate | 230,852 | 236,436 | 33 | % | — | 222 bps | ||||||||||||||
Mezzanine loans, fixed rate | 68,028 | 71,718 | 10 | % | 7.45 | % | — | |||||||||||||
Loan securities, floating rate | 43,260 | 56,400 | 8 | % | — | 143 bps | ||||||||||||||
Loan securities, fixed rate | 25,411 | 27,084 | 4 | % | 6.68 | % | — | |||||||||||||
Total/Average | $ | 687,384 | $ | 713,856 | 100 | % | 7.38 | % | 214 bps | |||||||||||
(1) | Net of scheduled amortization payments and prepayments, unamortized fees and discounts. | |
(2) | Spreads over an index other than LIBOR have been adjusted to a LIBOR based equivalent. |
Number of Loan | ||||||||||||
Year of Maturity | Assets Maturing | Carrying Value | % of Total | |||||||||
(In thousands) | ||||||||||||
2008 | 9 | $ | 185,500 | 30.0 | % | |||||||
2009 | 9 | 134,052 | 21.7 | % | ||||||||
2010 | 3 | 81,903 | 13.2 | % | ||||||||
2011 | 1 | 6,300 | 1.0 | % | ||||||||
2012 | 3 | 72,968 | 11.8 | % | ||||||||
Thereafter | 8 | 137,990 | 22.3 | % | ||||||||
Total | 33 | $ | 618,713 | 100 | % | |||||||
Weighted average maturity is 2.72 years(1) |
(1) | The calculation of weighted average maturity is based upon the remaining initial term and does not take into account any maturity extension periods or the ability to prepay the investment after a negotiated lock-out period, which may be available to the borrower. |
B-56
Table of Contents
Gross Unrealized | Impairment | Carrying | ||||||||||||||
Description | Par Value | Loss | Loss | Value | ||||||||||||
Floating rate | $ | 56,400 | $ | (3,487 | ) | $ | (9,427 | ) | $ | 43,260 | ||||||
Fixed rate | 27,084 | (1,673 | ) | — | 25,411 | |||||||||||
Total | $ | 83,484 | $ | (5,160 | ) | $ | (9,427 | ) | $ | 68,671 | ||||||
Rating | Par Value | Percentage | ||||||
AA- | $ | 1,381 | 1.65 | % | ||||
A- | 1,966 | 2.36 | % | |||||
BBB+ | 25,094 | 30.06 | % | |||||
BBB | 15,833 | 18.97 | % | |||||
BBB- | 30,392 | 36.40 | % | |||||
BB+ | 5,000 | 5.99 | % | |||||
Not rated | 3,818 | 4.57 | % | |||||
Total | $ | 83,484 | 100 | % | ||||
Industry | % of Par Value | |||
Office | 46.4 | % | ||
Hospitality | 41.7 | % | ||
Multi-family | 6.4 | % | ||
Mixed Use | 5.3 | % | ||
Industrial | 0.2 | % | ||
100 | % | |||
B-57
Table of Contents
Maximum | Carrying Value of | |||||||||||||||||||
Outstanding | Outstanding | Interest Rate — | Maturity | Assets | ||||||||||||||||
Counterparty | Balance | Balance | LIBOR Plus(5) | Date | Securing Facility | |||||||||||||||
Greenwich(1) | $ | 39,079 | $ | 39,079 | 100 bps | 12/08 | $ | 55,827 | ||||||||||||
Greenwich(1) | 59,613 | 59,613 | 100 bps | 12/12 | 70,146 | |||||||||||||||
Column(1) | 16,414 | 16,414 | 100 bps | 3/09 | (3) | 25,270 | ||||||||||||||
Column(2) | 350,000 | 308,508 | 85-135 bps(4 | ) | 3/09 | 412,561 | ||||||||||||||
Bear Stearns(2) | 150,000 | 48,710 | 85-115 bps(4 | ) | 11/08 | 82,258 |
(1) | Repurchase facilities cover specific loan assets and may not be used for any other loan assets. | |
(2) | Repurchase facilities may be used for multiple loan assets and loan securities subject to the repurchase counterparty’s consent. Repurchase counterparties have advised that no additional advance will be made except, if at all, in connection with loans assets or debt securities acquired for the repurchase counterparty. | |
(3) | May be extended for up to three one-year extensions. | |
(4) | Interest rate is based on type of loan asset or loan security for which financing is provided. Weighted average at December 31, 2007 on the Column repurchase facility was 5.8% and on the Bear Stearns repurchase facility was 5.5% | |
(5) | Concord has entered into interest rate swaps with a total national amount of $203.3 million as of December 31, 2007 to manage exposure to interest rate movements affecting interest payments on certain variable-rate obligations. |
Item 7A. | Quantitative and Qualitative Disclosure about Market Risk |
B-58
Table of Contents
OVER FINANCIAL REPORTING
B-59
Item 8. | Financial Statements and Supplementary Data |
AND CONSOLIDATED SUBSIDIARIES
INDEX
Page | ||||
Reports of Independent Registered Public Accounting Firm | 61 | |||
Consolidated Balance Sheets as of December 31, 2007 and 2006 | 63 | |||
Consolidated Statements of Operations for the years ended December 31, 2007, 2006 and 2005 | 64 | |||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2007, 2006 and 2005 | 65 | |||
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2007, 2006 and 2005 | 66 | |||
Consolidated Statements of Cash Flows for the years ended December 31, 2007, 2006 and 2005 | 67 | |||
Notes to Consolidated Financial Statements | 68-101 | |||
Financial Statement Schedule | ||||
Schedule III — Real Estate and Accumulated Depreciation | 102-111 |
B-60
Table of Contents
B-61
Table of Contents
B-62
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
($000 except per share amounts)
Years ended December 31,
2007 | 2006 | |||||||
ASSETS | ||||||||
Real estate, at cost: | ||||||||
Buildings and building improvements | $ | 3,388,421 | $ | 3,107,234 | ||||
Land and land estates | 694,020 | 625,717 | ||||||
Land improvements | 893 | 2,044 | ||||||
Fixtures and equipment | 11,944 | 12,161 | ||||||
4,095,278 | 3,747,156 | |||||||
Less: accumulated depreciation | 379,831 | 276,129 | ||||||
3,715,447 | 3,471,027 | |||||||
Properties held for sale — discontinued operations | 150,907 | 69,612 | ||||||
Intangible assets (net of accumulated amortization of $181,190 in 2007 and $33,724 in 2006) | 516,698 | 468,244 | ||||||
Investment in and advances to non-consolidated entities | 226,476 | 247,045 | ||||||
Cash and cash equivalents | 412,106 | 97,547 | ||||||
Investment in marketable equity securities (cost of $2,647 in 2007 and $31,247 in 2006) | 2,609 | 32,036 | ||||||
Deferred expenses (net of accumulated amortization of $12,154 in 2007 and $6,834 in 2006) | 42,040 | 16,084 | ||||||
Rent receivable — current | 25,289 | 43,283 | ||||||
Rent receivable — deferred | 15,303 | 29,410 | ||||||
Notes receivable | 69,775 | 50,534 | ||||||
Other assets, net | 88,513 | 100,035 | ||||||
$ | 5,265,163 | $ | 4,624,857 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Mortgages and notes payable | $ | 2,312,422 | $ | 2,126,810 | ||||
Exchangable notes payable | 450,000 | — | ||||||
Trust notes payable | 200,000 | — | ||||||
Contract rights payable | 13,444 | 12,231 | ||||||
Liabilities — discontinued operations | 119,093 | 6,064 | ||||||
Accounts payable and other liabilities | 49,442 | 25,877 | ||||||
Accrued interest payable | 23,507 | 10,818 | ||||||
Dividends payable | 158,168 | 44,948 | ||||||
Prepaid rent | 16,764 | 10,109 | ||||||
Deferred revenue (net of accretion of $14,076 in 2007 and $1,029 in 2006) | 217,389 | 362,815 | ||||||
3,560,229 | 2,599,672 | |||||||
Minority interests | 765,863 | 902,741 | ||||||
4,326,092 | 3,502,413 | |||||||
Commitments and contingencies (Notes 8, 9, 11, 12, 14, & 16) | ||||||||
Shareholders’ equity: | ||||||||
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares; | ||||||||
Series B Cumulative Redeemable Preferred, liquidation preference, $79,000, 3,160,000 shares issued and outstanding | 76,315 | 76,315 | ||||||
Series C Cumulative Convertible Preferred, liquidation preference $155,000; 3,100,000 shares issued and outstanding | 150,589 | 150,589 | ||||||
Series D Cumulative Convertible Preferred, liquidation preference $155,000; 6,200,000 shares issued and outstanding in 2007 | 149,774 | — | ||||||
Special Voting Preferred Share, par value $0.0001 per share; authorized and issued 1 share in 2007 and 2006 | — | — | ||||||
Common shares, par value $0.0001 per share, authorized 400,000,000 shares, 61,064,334 and 69,051,781 shares issued and outstanding in 2007 and 2006, respectively | 6 | 7 | ||||||
Additionalpaid-in-capital | 1,033,332 | 1,188,900 | ||||||
Accumulated distributions in excess of net income | (468,167 | ) | (294,640 | ) | ||||
Accumulated other comprehensive income (loss) | (2,778 | ) | 1,273 | |||||
Total shareholders’ equity | 939,071 | 1,122,444 | ||||||
$ | 5,265,163 | $ | 4,624,857 | |||||
B-63
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
($000 except per share amounts)
Years ended December 31,
2007 | 2006 | 2005 | ||||||||||
Gross revenues: | ||||||||||||
Rental | $ | 385,898 | $ | 165,275 | $ | 146,848 | ||||||
Advisory and incentive fees | 13,567 | 4,555 | 5,365 | |||||||||
Tenant reimbursements | 32,282 | 16,863 | 10,170 | |||||||||
Total gross revenues | 431,747 | 186,693 | 162,383 | |||||||||
Expense applicable to revenues: | ||||||||||||
Depreciation and amortization | (236,044 | ) | (75,849 | ) | (61,004 | ) | ||||||
Property operating | (61,095 | ) | (30,947 | ) | (20,641 | ) | ||||||
General and administrative | (39,389 | ) | (35,514 | ) | (17,554 | ) | ||||||
Impairment charges | (15,500 | ) | (7,221 | ) | — | |||||||
Non-operating income | 10,726 | 8,913 | 1,502 | |||||||||
Interest and amortization expense | (163,628 | ) | (65,097 | ) | (56,177 | ) | ||||||
Debt satisfaction gains (charges), net | (1,209 | ) | 7,228 | 4,409 | ||||||||
Income (loss) before benefit (provision) for income taxes, minority interests, equity in earnings of non-consolidated entities, gains on sale of properties-affiliates and discontinued operations | (74,392 | ) | (11,794 | ) | 12,918 | |||||||
Benefit (provision) for income taxes | (3,374 | ) | 238 | 150 | ||||||||
Minority interests | 2,652 | (601 | ) | (1,694 | ) | |||||||
Equity in earnings of non-consolidated entities | 46,467 | 4,248 | 6,232 | |||||||||
Gains on sale of properties-affiliates | 17,864 | — | — | |||||||||
Income (loss) from continuing operations | (10,783 | ) | (7,909 | ) | 17,606 | |||||||
Discontinued operations | ||||||||||||
Income from discontinued operations | 29,561 | 14,459 | 17,593 | |||||||||
Provision for income taxes | (3,327 | ) | (73 | ) | — | |||||||
Debt satisfaction (charges) gains | (7,950 | ) | 4,492 | (731 | ) | |||||||
Gains on sales of properties | 92,878 | 22,866 | 12,291 | |||||||||
Impairment charges | (1,670 | ) | (28,209 | ) | (13,006 | ) | ||||||
Minority interests share of (income) loss | (21,858 | ) | 2,127 | (1,058 | ) | |||||||
Total discontinued operations | 87,634 | 15,662 | 15,089 | |||||||||
Net income | 76,851 | 7,753 | 32,695 | |||||||||
Dividends attributable to preferred shares — Series B | (6,360 | ) | (6,360 | ) | (6,360 | ) | ||||||
Dividends attributable to preferred shares — Series C | (10,075 | ) | (10,075 | ) | (10,075 | ) | ||||||
Dividends attributable to preferred shares — Series D | (10,298 | ) | — | — | ||||||||
Net income (loss) allocable to common shareholders | $ | 50,118 | $ | (8,682 | ) | $ | 16,260 | |||||
Income (loss) per common share — basic: | ||||||||||||
Income (loss) from continuing operations | $ | (0.58 | ) | $ | (0.47 | ) | $ | 0.03 | ||||
Income from discontinued operations | 1.35 | 0.30 | 0.30 | |||||||||
Net income (loss) | $ | 0.77 | $ | (0.17 | ) | $ | 0.33 | |||||
Weighted average common shares outstanding — basic | 64,910,123 | 52,163,569 | 49,835,773 | |||||||||
Income (loss) per common share — diluted: | ||||||||||||
Income (loss) from continuing operations | $ | (0.58 | ) | $ | (0.47 | ) | $ | 0.03 | ||||
Income from discontinued operations | 1.35 | 0.30 | 0.30 | |||||||||
Net income (loss) | $ | 0.77 | $ | (0.17 | ) | $ | 0.33 | |||||
Weighted average common shares outstanding — diluted | 64,910,123 | 52,163,569 | 49,902,649 | |||||||||
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AND CONSOLIDATED SUBSIDIARIES
($000)
Years ended December 31,
2007 | 2006 | 2005 | ||||||||||
Net income | $ | 76,851 | $ | 7,753 | $ | 32,695 | ||||||
Change in other comprehensive income: | ||||||||||||
Unrealized gain (loss) in marketable equity securities | (896 | ) | 789 | — | ||||||||
Unrealized gain in foreign currency translation | 371 | 484 | — | |||||||||
Unrealized loss on investments in non-consolidated entities | (3,526 | ) | — | — | ||||||||
Other comprehensive income (loss) | (4,051 | ) | 1,273 | — | ||||||||
Comprehensive income | $ | 72,800 | $ | 9,026 | $ | 32,695 | ||||||
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AND CONSOLIDATED SUBSIDIARIES
($000 except per share amounts)
Years ended December 31,
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||
Number of | Number of | Additional | Deferred | Distributions | Other | Total | ||||||||||||||||||||||||||||||
Preferred | Common | Paid-in | Compensation, | In Excess of | Comprehensive | Shareholders’ | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Net | Net Income | Income (Loss) | Equity | ||||||||||||||||||||||||||||
Balance at December 31, 2004 | 5,860,000 | $ | 207,441 | 48,621,273 | $ | 5 | $ | 766,882 | $ | (8,692 | ) | $ | (118,346 | ) | $ | — | $ | 847,290 | ||||||||||||||||||
Net income | — | — | — | — | — | — | 32,695 | — | 32,695 | |||||||||||||||||||||||||||
Dividends — common shareholders | — | — | — | — | — | — | (72,617 | ) | — | (72,617 | ) | |||||||||||||||||||||||||
Dividends — preferred shareholders | — | — | — | — | — | — | (14,494 | ) | — | (14,494 | ) | |||||||||||||||||||||||||
Issuance of common shares, net | — | — | 3,534,582 | — | 81,682 | (5,575 | ) | — | — | 76,107 | ||||||||||||||||||||||||||
Issuance of preferred shares, net | 400,000 | 19,463 | — | — | — | — | — | — | 19,463 | |||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | 2,866 | — | — | 2,866 | |||||||||||||||||||||||||||
Balance at December 31, 2005 | 6,260,000 | 226,904 | 52,155,855 | 5 | 848,564 | (11,401 | ) | (172,762 | ) | — | 891,310 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 7,753 | — | 7,753 | |||||||||||||||||||||||||||
Adoption of new accounting principle (Note 2) | — | — | — | — | (11,401 | ) | 11,401 | — | — | — | ||||||||||||||||||||||||||
Dividends — common shareholders | — | — | — | — | — | — | (109,088 | ) | — | (109,088 | ) | |||||||||||||||||||||||||
Dividends — preferred shareholders | — | — | — | — | — | — | (20,543 | ) | — | (20,543 | ) | |||||||||||||||||||||||||
Issuance of common shares, net | — | — | 16,895,926 | 2 | 351,737 | — | — | — | 351,739 | |||||||||||||||||||||||||||
Issuance of special voting preferred | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | 1,273 | 1,273 | |||||||||||||||||||||||||||
Balance at December 31, 2006 | 6,260,001 | 226,904 | 69,051,781 | 7 | 1,188,900 | — | (294,640 | ) | 1,273 | 1,122,444 | ||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 76,851 | — | 76,851 | |||||||||||||||||||||||||||
Dividends — common shareholders | — | — | — | — | — | — | (223,746 | ) | — | (223,746 | ) | |||||||||||||||||||||||||
Dividends — preferred shareholders | — | — | — | — | — | — | (26,733 | ) | — | (26,733 | ) | |||||||||||||||||||||||||
Issuance of common shares, net | — | — | 1,608,369 | — | 34,554 | — | 101 | — | 34,655 | |||||||||||||||||||||||||||
Repurchase of common shares | — | — | (9,595,816 | ) | (1 | ) | (190,122 | ) | — | — | — | (190,123 | ) | |||||||||||||||||||||||
Issuance of preferred shares, net | 6,200,000 | 149,774 | — | — | — | — | — | — | 149,774 | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (4,051 | ) | (4,051 | ) | |||||||||||||||||||||||||
Balance at December 31, 2007 | 12,460,001 | $ | 376,678 | 61,064,334 | $ | 6 | $ | 1,033,332 | $ | — | $ | (468,167 | ) | $ | (2,778 | ) | $ | 939,071 | ||||||||||||||||||
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Table of Contents
AND CONSOLIDATED SUBSIDIARIES
($000 except per share amounts)
Years ended December 31,
2007 | 2006 | 2005 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 76,851 | $ | 7,753 | $ | 32,695 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of effects from acquisitions: | ||||||||||||
Depreciation and amortization | 253,535 | 84,734 | 73,034 | |||||||||
Minority interests | 19,206 | (2,842 | ) | 2,165 | ||||||||
Gains on sales of properties | (110,742 | ) | (21,549 | ) | (11,578 | ) | ||||||
Debt satisfaction charges (gains), net | 2,250 | (14,761 | ) | (4,536 | ) | |||||||
Impairment charges | 17,170 | 35,430 | 12,879 | |||||||||
Straight-line rents | 16,151 | (4,923 | ) | (3,447 | ) | |||||||
Other non-cash charges | 16,774 | 17,233 | 4,196 | |||||||||
Equity in earnings of non-consolidated entities | (46,474 | ) | (4,186 | ) | (6,220 | ) | ||||||
Distributions of accumulated earnings from non-consolidated entities | 7,930 | 8,058 | 7,561 | |||||||||
Deferred tax assets | 2,358 | (738 | ) | (466 | ) | |||||||
Increase (decrease) in accounts payable and other liabilities | 4,999 | 1,999 | (788 | ) | ||||||||
Change in rent receivable and prepaid rent, net | 12,378 | (3,521 | ) | 2,790 | ||||||||
Increase in accrued interest payable | 15,193 | 1,383 | 235 | |||||||||
Other adjustments, net | 72 | 3,950 | (3,063 | ) | ||||||||
Net cash provided by operating activities | 287,651 | 108,020 | 105,457 | |||||||||
Cash flows from investing activities: | ||||||||||||
Net proceeds from sales/transfers of properties | 423,634 | 76,627 | 96,685 | |||||||||
Net proceeds from sales of properties-affiliates | 126,628 | — | — | |||||||||
Cash paid relating to Merger | — | (12,395 | ) | — | ||||||||
Investments in real estate properties and intangible assets | (163,746 | ) | (173,661 | ) | (759,656 | ) | ||||||
Investments in and advances to non-consolidated entities | (97,942 | ) | (9,865 | ) | (41,943 | ) | ||||||
Acquisition of interest in certain non-consolidated entities | (366,614 | ) | — | — | ||||||||
Acquisition of additional interest in LSAC | (24,199 | ) | (42,619 | ) | — | |||||||
Collection of notes from affiliate | — | 8,300 | 45,800 | |||||||||
Issuance of notes receivable to affiliate | — | (8,300 | ) | — | ||||||||
Principal payments received on loans receivable | 8,499 | — | — | |||||||||
Collection of notes | — | — | 3,488 | |||||||||
Real estate deposits | 1,756 | 359 | 1,579 | |||||||||
Investment in notes receivable | — | (11,144 | ) | — | ||||||||
Proceeds from the sale of marketable equity securities | 29,462 | — | — | |||||||||
Investment in marketable equity securities | (723 | ) | (5,019 | ) | — | |||||||
Distribution from non-consolidated entities in excess of accumulated earnings | 9,457 | 19,640 | 17,202 | |||||||||
Increase in deferred leasing costs | (5,713 | ) | (1,737 | ) | (2,919 | ) | ||||||
Change in escrow deposits and restricted cash | 28,011 | 5,734 | (4,013 | ) | ||||||||
Net cash used in investing activities | (31,490 | ) | (154,080 | ) | (643,777 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds of mortgages and notes payable | 246,965 | 147,045 | 516,520 | |||||||||
Change in credit facility borrowing, net | (65,194 | ) | 65,194 | — | ||||||||
Dividends to common and preferred shareholders | (137,259 | ) | (93,681 | ) | (87,111 | ) | ||||||
Dividend reinvestment plan proceeds | 5,652 | 12,525 | 13,815 | |||||||||
Principal payments on debt, excluding normal amortization | (665,124 | ) | (82,010 | ) | (50,936 | ) | ||||||
Principal amortization payments | (73,351 | ) | (28,966 | ) | (25,313 | ) | ||||||
Debt deposits | — | 291 | 1,334 | |||||||||
Proceeds from term loan | 225,000 | — | — | |||||||||
Proceeds from trust preferred notes | 200,000 | — | — | |||||||||
Proceeds from exchangeable notes | 450,000 | — | — | |||||||||
Issuance of common/preferred shares | 149,898 | 272 | 80,671 | |||||||||
Repurchase of common shares | (190,123 | ) | (11,159 | ) | — | |||||||
Contributions from minority partners | — | 810 | 9,412 | |||||||||
Cash distributions to minority partners | (84,858 | ) | (8,554 | ) | (7,028 | ) | ||||||
Increase in deferred financing costs | (18,707 | ) | (1,169 | ) | (6,403 | ) | ||||||
Purchases of partnership units | (3,926 | ) | (115 | ) | (83 | ) | ||||||
Net cash provided by financing activities | 38,973 | 483 | 444,878 | |||||||||
Cash acquired in co-investment program acquisition | 20,867 | — | — | |||||||||
Cash associated with sale of interest in entity | (1,442 | ) | — | — | ||||||||
Cash attributable to newly consolidated entity | — | 31,985 | — | |||||||||
Cash attributable to Merger | — | 57,624 | — | |||||||||
Change in cash and cash equivalents | 314,559 | 44,032 | (93,442 | ) | ||||||||
Cash and cash equivalents, beginning of year | 97,547 | 53,515 | 146,957 | |||||||||
Cash and cash equivalents, end of year | $ | 412,106 | $ | 97,547 | $ | 53,515 | ||||||
B-67
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements
($000 except per share/unit amounts)
(1) | The Company |
• | a wholly-owned portfolio of core office assets; | |
• | a wholly-owned portfolio of core warehouse/distribution assets; |
B-68
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
• | a continuing 50% interest in a co-investment program that invests in senior and subordinated debt interests secured by both net leased and multi-tenanted real estate collateral; | |
• | a minority interest in a co-investment program that invests in specialty single tenant real estate assets; and | |
• | equity securities in other net lease companies owned either individually or through an interest in one or more joint ventures or co-investment program. |
• | acquired all of the outstanding interests not otherwise owned by the Company in Triple Net Investment Company LLC, one of the Company’s co-investment programs, which resulted in the Company becoming the sole owner of the co-investment program’s 15 primarily single tenant net leased properties; | |
• | acquired all of the outstanding interests not otherwise owned by the Company in Lexington Acquiport Company, LLC and Lexington Acquiport Company II, LLC, two of the Company’s co-investment programs, which resulted in the Company becoming the sole owner of the co-investment program’s 26 primarily single tenant net leased properties; | |
• | terminated Lexington/Lion Venture L.P., one of its co-investment programs, and was distributed seven primarily single tenant net leased properties owned by the co-investment program; | |
• | announced a disposition program, whereby the Company began marketing non-core assets for sale; and | |
• | formed a co-investment program with a subsidiary of Inland American Real Estate Trust, Inc., which acquired 30 assets previously owned by the Company, and which, in addition is under contract to acquire an additional 13 assets currently owned by the Company and may invest in “core plus” net leased assets, such as manufacturing assets, call centers and other specialty assets. |
(2) | Summary of Significant Accounting Policies |
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Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-70
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Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-71
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-72
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-73
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Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-74
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-75
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
2007 | 2006 | 2005 | ||||||||||
Total dividends per share | $ | 2.93342 | (i) | $ | 1.46 | $ | 1.44 | |||||
Ordinary income | 42.36 | % | 68.89 | % | 87.29 | % | ||||||
15% rate — qualifying dividend | 2.50 | 0.77 | 1.04 | |||||||||
15% rate gain | 35.62 | 7.97 | 8.72 | |||||||||
25% rate gain | 19.52 | 5.13 | 2.95 | |||||||||
Return of capital | — | 17.24 | — | |||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||
(i) | Includes the special dividend of $0.2325 paid in January 2007 and a portion of the special dividend of $2.10 paid in January 2008. Of the total dividend paid in January 2008, $1.21092 is allocated to 2007 and $1.26408 is allocated to 2008. |
2007 | 2006 | 2005 | ||||||||||
Total dividends per share | $ | 2.0125 | $ | 2.0125 | $ | 2.0125 | ||||||
Ordinary income | 42.36 | % | 83.24 | % | 87.29 | % | ||||||
15% rate — qualifying dividend | 2.50 | 0.93 | 1.04 | |||||||||
15% rate gain | 35.62 | 9.63 | 8.72 | |||||||||
25% rate gain | 19.52 | 6.20 | 2.95 | |||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||
2007 | 2006 | 2005 | ||||||||||
Total dividends per share | $ | 3.25 | $ | 3.25 | $ | 2.624 | ||||||
Ordinary income | 42.36 | % | 83.24 | % | 87.29 | % | ||||||
15% rate — qualifying dividend | 2.50 | 0.93 | 1.04 | |||||||||
15% rate gain | 35.62 | 9.63 | 8.72 | |||||||||
25% rate gain | 19.52 | 6.20 | 2.95 | |||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||
B-76
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
2007 | ||||
Total dividends per share | $ | 1.662 | ||
Ordinary income | 42.36 | % | ||
15% rate — qualifying dividend | 2.50 | |||
15% rate gain | 35.62 | |||
25% rate gain | 19.52 | |||
100.00 | % | |||
B-77
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
2005 | ||||
Net income allocable to common shareholders, as reported — basic | $ | 16,260 | ||
Add: Stock based employee compensation expense included in reported net income | — | |||
Deduct: Total stock based employee compensation expense determined under fair value based method for all awards | 6 | |||
Pro forma net income — basic | $ | 16,254 | ||
Net income per share — basic | ||||
Basic — as reported | $ | 0.33 | ||
Basic — pro forma | $ | 0.33 | ||
Net income allocable to common shareholders, as reported — diluted | $ | 16,260 | ||
Add: Stock based employee compensation expense included in reported net income | — | |||
Deduct: Total stock based employee compensation expense determined under fair value based method for all awards | 6 | |||
Pro forma net income — diluted | $ | 16,254 | ||
Net income per share — diluted | ||||
Diluted — as reported | $ | 0.33 | ||
Diluted — pro forma | $ | 0.33 | ||
B-78
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(3) | Earnings Per Share |
2007 | 2006 | 2005 | ||||||||||
BASIC | ||||||||||||
Income (loss) from continuing operations | $ | (10,783 | ) | $ | (7,909 | ) | $ | 17,606 | ||||
Less — dividends attributable to preferred shares | (26,733 | ) | (16,435 | ) | (16,435 | ) | ||||||
Income (loss) attributable to common shareholders from continuing operations | (37,516 | ) | (24,344 | ) | 1,171 | |||||||
Total discontinued operations | 87,634 | 15,662 | 15,089 | |||||||||
Net income (loss) attributable to common shareholders | $ | 50,118 | $ | (8,682 | ) | $ | 16,260 | |||||
Weighted average number of common shares outstanding | 64,910,123 | 52,163,569 | 49,835,773 | |||||||||
Income (loss) per common share — basic: | ||||||||||||
Income (loss) from continuing operations | $ | (0.58 | ) | $ | (0.47 | ) | $ | 0.03 | ||||
Income from discontinued operations | 1.35 | 0.30 | 0.30 | |||||||||
Net income (loss) | $ | 0.77 | $ | (0.17 | ) | $ | 0.33 | |||||
DILUTED | ||||||||||||
Income (loss) attributable to common shareholders from continuing operations — basic | $ | (37,516 | ) | $ | (24,344 | ) | $ | 1,171 | ||||
Add — incremental income attributable to assumed conversion of dilutive interests | — | — | — | |||||||||
Income (loss) attributable to common shareholders from continuing operations | (37,516 | ) | (24,344 | ) | 1,171 | |||||||
Income from discontinued operations | 87,634 | 15,662 | 15,089 | |||||||||
Net income (loss) attributable to common shareholders | $ | 50,118 | $ | (8,682 | ) | $ | 16,260 | |||||
Weighted average number of shares used in calculation of basic earnings per share | 64,910,123 | 52,163,569 | 49,835,773 | |||||||||
Add — incremental shares representing: | ||||||||||||
Shares issuable upon exercise of employee share options | — | — | 66,876 | |||||||||
Weighted average number of shares used in calculation of diluted earnings per common share | 64,910,123 | 52,163,569 | 49,902,649 | |||||||||
Income (loss) per common share — diluted: | ||||||||||||
Income (loss) from continuing operations | $ | (0.58 | ) | $ | (0.47 | ) | $ | 0.03 | ||||
Income from discontinued operations | 1.35 | 0.30 | 0.30 | |||||||||
Net income (loss) | $ | 0.77 | $ | (0.17 | ) | $ | 0.33 | |||||
B-79
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(4) | Investments in Real Estate and Intangible Assets |
B-80
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Weighted | ||||||||
Average | ||||||||
Costs | Life (yrs) | |||||||
Lease origination costs | $ | 165,885 | 8.9 | |||||
Customer relationships | 117,636 | 7.0 | ||||||
Above — market leases | 22,560 | 7.0 | ||||||
$ | 306,081 | |||||||
2007 | 2006 | |||||||
Lease origination costs | $ | 404,820 | $ | 301,449 | ||||
Customer relationships | 178,716 | 93,323 | ||||||
Above-market leases | 114,352 | 107,196 | ||||||
$ | 697,888 | $ | 501,968 | |||||
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(5) | Newkirk Merger |
Fair value of common shares issued | $ | 332,050 | ||
Merger costs | 13,537 | |||
Purchase price, net of assumed liabilities and minority interests | 345,587 | |||
Fair value of liabilities assumed, including debt and minority interest | 2,049,801 | |||
Purchase price | $ | 2,395,388 | ||
B-82
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Total real estate assets, including intangibles | $ | 2,081,704 | ||
Investment in and advances to non-consolidated entities | 99,396 | |||
Cash and cash equivalents | 57,624 | |||
Accounts receivable | 46,905 | |||
Restricted cash | 39,640 | |||
Marketable equity securities | 25,760 | |||
Other assets | 44,359 | |||
Total assets acquired | 2,395,388 | |||
Less: | ||||
Debt assumed | 838,735 | |||
Minority interest | 833,608 | |||
Below market leases | 356,788 | |||
Accounts payable, accrued expenses and other liabilities assumed | 20,670 | |||
Purchase price, net of assumed liabilities and minority interest | $ | 345,587 | ||
Weighted Average | ||||||||
Cost | Useful Life (yrs) | |||||||
Lease origination costs | $ | 175,658 | 13.1 | |||||
Customer relationships | 57,543 | 7.2 | ||||||
Above-market leases | 85,511 | 3.2 | ||||||
$ | 318,712 | |||||||
Year Ending | ||||||||
December 31, | ||||||||
2006 | 2005 | |||||||
Total gross revenues | $ | 376,659 | $ | 346,080 | ||||
Income (loss) from continuing operations | 586 | (3,163 | ) | |||||
Net income | 34,967 | 15,338 | ||||||
Net income (loss) per common share — basic | 0.27 | (0.02 | ) | |||||
Net income (loss) per common share — diluted | 0.27 | (0.02 | ) |
(6) | Discontinued Operations and Assets Held For Sale |
B-83
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Year Ending December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Total gross revenues | $ | 53,613 | $ | 32,599 | $ | 42,057 | ||||||
Pre-tax income, including gains on sales | $ | 90,961 | $ | 15,735 | $ | 15,089 |
Year Ended | ||||
December 31, | Total | |||
2008 | $ | 759 | ||
2009 | 987 | |||
2010 | 1,230 | |||
2011 | 1,299 | |||
2012 | 1,371 | |||
Thereafter | 79,482 | |||
$ | 85,128 | |||
B-84
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(7) | Notes Receivable |
(8) | Investment in Non-Consolidated Entities |
2007 | 2006 | 2005 | ||||||||||
Gross rental revenues | $ | 21,883 | $ | 51,425 | $ | 42,362 | ||||||
Depreciation and amortization | (9,349 | ) | (21,895 | ) | (18,508 | ) | ||||||
Interest expense | (6,669 | ) | (15,657 | ) | (13,619 | ) | ||||||
Property operating and other | (5,272 | ) | (12,461 | ) | (8,227 | ) | ||||||
Income before gain on sale | $ | 593 | $ | 1,412 | $ | 2,008 | ||||||
B-85
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
As of 12/31/07 | As of 12/31/06 | |||||||
Investments | $ | 1,140,108 | $ | 450,870 | ||||
Cash, including restricted cash | 19,094 | 148,261 | ||||||
Warehouse debt facilities obligations | 472,324 | 43,893 | ||||||
Collateralized debt obligations | 376,650 | 376,650 | ||||||
Members’ equity | 310,922 | 186,515 |
For the Year | ||||
Ended 12/31/07 | ||||
Interest and other income | $ | 68,453 | ||
Interest expense | (41,675 | ) | ||
Impairment charge | (11,028 | ) | ||
Other expenses and minority interests | (5,554 | ) | ||
Net income | 10,196 | |||
Other comprehensive loss (unrealized loss on investments and swaps) | (16,780 | ) | ||
Comprehensive loss | $ | (6,584 | ) | |
B-86
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
As of 12/31/07 | ||||
Real estate, including intangibles | $ | 405,834 | ||
Cash | 1,884 | |||
Mortgages payable | 171,556 |
For the Period | ||||
12/20/07 to 12/31/07 | ||||
Gross rental revenues | $ | 951 | ||
Expenses | (352 | ) | ||
Net income | $ | 599 | ||
B-87
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(9) | Mortgages and Notes Payable and Contract Rights Payable |
B-88
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Year ending | ||||
December 31, | Total | |||
2008 | $ | — | ||
2009 | 229 | |||
2010 | 491 | |||
2011 | 540 | |||
2012 | 593 | |||
Thereafter | 11,591 | |||
$ | 13,444 | |||
Years ending | ||||
December 31, | Total | |||
2008 | $ | 99,324 | ||
2009 | 338,565 | |||
2010 | 163,319 | |||
2011 | 182,760 | |||
2012 | 226,621 | |||
Thereafter | 1,301,833 | |||
$ | 2,312,422 | |||
(10) | Exchangeable Notes and Trust Notes Payable |
B-89
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Year ending | ||||
December 31, | Total | |||
2008 | $ | — | ||
2009 | — | |||
2010 | — | |||
2011 | — | |||
2012 | 450,000 | (1) | ||
Thereafter | 200,000 | |||
$ | 650,000 | |||
(1) | Although the exchangeable guaranteed notes mature in 2037, the notes can be put to the Company in 2012. |
(11) | Leases |
Years ending | ||||
December 31, | Total | |||
2008 | $ | 422,579 | ||
2009 | 359,495 | |||
2010 | 308,388 | |||
2011 | 286,200 | |||
2012 | 254,431 | |||
Thereafter | 983,308 | |||
$ | 2,614,401 | |||
B-90
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Years ending | ||||
December 31, | Total | |||
2008 | $ | 3,744 | ||
2009 | 3,768 | |||
2010 | 3,538 | |||
2011 | 3,140 | |||
2012 | 2,806 | |||
Thereafter | 16,720 | |||
$ | 33,716 | |||
(12) | Minority Interests |
B-91
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(13) | Preferred and Common Shares |
B-92
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(14) | Benefit Plans |
B-93
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Weighted-Average | ||||||||
Number of | Exercise Price | |||||||
Shares | Per Share | |||||||
Balance at December 31, 2004 | $ | 176,330 | $ | 14.70 | ||||
Granted | — | — | ||||||
Exercised | (133,830 | ) | 14.71 | |||||
Forfeited | (2,000 | ) | 13.66 | |||||
Expired | — | — | ||||||
Balance at December 31, 2005 | 40,500 | 14.71 | ||||||
Granted | — | — | ||||||
Exercised | (20,500 | ) | 14.15 | |||||
Forfeited | (2,000 | ) | 15.50 | |||||
Expired | (1,500 | ) | 11.82 | |||||
Balance at December 31, 2006 | 16,500 | 15.56 | ||||||
Granted | — | — | ||||||
Exercised | (15,500 | ) | 15.56 | |||||
Forfeited | — | — | ||||||
Expired | (1,000 | ) | 15.50 | |||||
Balance at December 31, 2007 | $ | — | $ | — | ||||
Number of | Weighted-Average | |||||||
Shares | Value Per Share | |||||||
Balance at December 31, 2006 | 654,761 | $ | 21.52 | |||||
Granted | — | — | ||||||
Forfeited | (8,430 | ) | 21.99 | |||||
Vested | (224,608 | ) | 20.48 | |||||
Balance at December 31, 2007 | 421,723 | $ | 22.06 | |||||
B-94
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
B-95
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(15) | Income Taxes |
2007 | 2006 | 2005 | ||||||||||
Current: | ||||||||||||
Federal | $ | (928 | ) | $ | (139 | ) | $ | (222 | ) | |||
State and local | (2,679 | ) | (331 | ) | (93 | ) | ||||||
NOL utilized | 799 | — | — | |||||||||
Deferred: | ||||||||||||
Federal | (407 | ) | 561 | 358 | ||||||||
State and local | (159 | ) | 147 | 107 | ||||||||
$ | (3,374 | ) | $ | 238 | $ | 150 | ||||||
2007 | 2006 | 2005 | ||||||||||
Federal benefit at statutory tax rate (34)% | $ | 488 | $ | 548 | $ | 96 | ||||||
State and local taxes, net of Federal benefit | 4 | 86 | 24 | |||||||||
Other | (3,866 | ) | (396 | ) | 30 | |||||||
$ | (3,374 | ) | $ | 238 | $ | 150 | ||||||
B-96
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(16) | Commitments and Contingencies |
B-97
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(17) | Related Party Transactions |
B-98
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(18) | Fair Market Value of Financial Instruments |
(19) | Concentration of Risk |
(20) | Supplemental Disclosure of Statement of Cash Flow Information |
B-99
Table of Contents
AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
Real estate | $ | 106,112 | ||
Cash | $ | 31,985 | ||
Other assets | $ | 23,476 | ||
Mortgage payable | $ | 72,057 | ||
Other liabilities | $ | 1,341 |
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AND CONSOLIDATED SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
($000 except per share/unit amounts)
(21) | Unaudited Quarterly Financial Data |
2007 | ||||||||||||||||
3/31/2007 | 6/30/2007 | 9/30/2007 | 12/31/2007 | |||||||||||||
Total gross revenues(1) | $ | 81,943 | $ | 109,510 | $ | 118,032 | $ | 122,262 | ||||||||
Net income | $ | 2,215 | $ | 28,939 | $ | 14,463 | $ | 31,234 | ||||||||
Net income (loss) allocable to common shareholders — basic | $ | (3,416 | ) | $ | 21,906 | $ | 7,429 | $ | 24,199 | |||||||
Net income (loss) allocable to common shareholders — per share: | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | 0.34 | $ | 0.12 | $ | 0.39 | |||||||
Diluted | $ | (0.05 | ) | $ | 0.34 | $ | 0.12 | $ | 0.39 |
2006 | ||||||||||||||||
3/31/2006 | 6/30/2006 | 9/30/2006 | 12/31/2006 | |||||||||||||
Total gross revenues(1) | $ | 46,367 | $ | 44,209 | $ | 46,216 | $ | 49,901 | ||||||||
Net income (loss) | $ | 6,078 | $ | 25,520 | $ | (17,596 | ) | $ | (6,249 | ) | ||||||
Net income (loss) allocable to common shareholders — basic | $ | 1,969 | $ | 21,411 | $ | (21,704 | ) | $ | (10,358 | ) | ||||||
Net income (loss) allocable to common shareholders — per share: | ||||||||||||||||
Basic | $ | 0.04 | $ | 0.41 | $ | (0.42 | ) | $ | (0.20 | ) | ||||||
Diluted | $ | 0.04 | $ | 0.41 | $ | (0.42 | ) | $ | (0.20 | ) |
(1) | All periods have been adjusted to reflect the impact of properties sold during the years ended December 31, 2007 and 2006, and properties classified as held for sale, which are reflected in discontinued operations in the Consolidated Statements of Income. |
(22) | Subsequent Events |
• | Sold two properties, which are classified as held for sale at December 31, 2007, for an aggregate sales price of $6,060; | |
• | Repurchased approximately 963,000 common shares for $13,998 or $14.53 per share; and | |
• | Repurchased $89,500 face amount of the 5.45% exchangeable guaranteed notes for $78,503, including accrued interest. |
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Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000)
Initial cost to Company and Gross Amount at which carried at End of Year(A)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
R&D | Glendale, AZ | $ | 14,084 | $ | 4,996 | $ | 24,392 | $ | 29,388 | $ | 14,557 | Nov-86 | 1985 | 12 & 40 | ||||||||||||||||
Industrial | Marshall, MI | 0 | 40 | 900 | 940 | 526 | Aug-87 | 1979 | 12, 20 & 40 | |||||||||||||||||||||
Industrial | Marshall, MI | 0 | 129 | 3,836 | 3,965 | 1,992 | Aug-87 | 1968/1972 | 12, 20, 22 & 40 | |||||||||||||||||||||
Office/Warehouse | Tampa, FL | 7,941 | 1,900 | 9,854 | 11,754 | 4,758 | Nov-87 | 1986 | 28, 30 & 40 | |||||||||||||||||||||
Office/Warehouse | Memphis, TN | *** | 1,053 | 11,538 | 12,591 | 9,566 | Feb-88 | 1987 | 8 &15 | |||||||||||||||||||||
Office | Tampa, FL | 5,741 | 2,160 | 7,127 | 9,287 | 4,234 | Jul-88 | 1986 | 10, 24, 26, 31, & 40 | |||||||||||||||||||||
Retail | Oxon Hill, MD | 0 | 403 | 2,765 | 3,168 | 1,616 | Aug-95 | 1976 | 18.21 & 24 | |||||||||||||||||||||
Retail | Rockville, MD | 0 | 0 | 1,784 | 1,784 | 1,041 | Aug-95 | 1977 | 20 & 22 | |||||||||||||||||||||
Retail/Health Club | Canton, OH | 427 | 602 | 3,819 | 4,421 | 1,145 | Dec-95 | 1987 | 40 | |||||||||||||||||||||
Office | Salt Lake City, UT | 4,712 | 0 | 55,404 | 55,404 | 24,821 | May-96 | 1982 | 26 | |||||||||||||||||||||
Retail | Honolulu, HI | *** | 0 | 11,147 | 11,147 | 9,458 | Dec-96 | 1980 | 5 | |||||||||||||||||||||
Retail | Tulsa, OK | 0 | 447 | 2,432 | 2,879 | 1,492 | Dec-96 | 1981 | 14 & 24 | |||||||||||||||||||||
Retail | Clackamas, OR | 0 | 523 | 2,847 | 3,370 | 1,747 | Dec-96 | 1981 | 14 & 24 | |||||||||||||||||||||
Retail | Lynwood, WA | 0 | 488 | 2,658 | 3,146 | 1,631 | Dec-96 | 1981 | 14 & 24 | |||||||||||||||||||||
Warehouse | New Kingston, PA | 3,230 | 674 | 5,360 | 6,034 | 1,446 | Mar-97 | 1981 | 40 | |||||||||||||||||||||
Warehouse | Mechanicsburg, PA | 5,005 | 1,012 | 8,039 | 9,051 | 2,169 | Mar-97 | 1985 | 40 | |||||||||||||||||||||
Warehouse | New Kingston, PA | 6,780 | 1,380 | 10,963 | 12,343 | 2,958 | Mar-97 | 1989 | 40 | |||||||||||||||||||||
Office | Dallas, TX | 0 | 3,582 | 37,246 | 40,828 | 8,563 | Sep-97 | 1981 | 40 | |||||||||||||||||||||
Office | Decatur, GA | 6,106 | 975 | 14,252 | 15,227 | 3,438 | Dec-97 | 1983 | 40 | |||||||||||||||||||||
Office | Richmond, VA | 15,745 | 0 | 27,282 | 27,282 | 8,460 | Dec-97 | 1990 | 32.25 | |||||||||||||||||||||
Office | Hebron, OH | *** | 1,063 | 4,271 | 5,334 | 645 | Dec-97 | 2000 | 40 | |||||||||||||||||||||
Office/Warehouse | Bristol, PA | 9,262 | 2,508 | 10,915 | 13,423 | 2,446 | Mar-98 | 1982 | 40 | |||||||||||||||||||||
Office | Hebron, KY | 0 | 1,615 | 7,958 | 9,573 | 1,830 | Mar-98 | 1987 | 6, 12 & 40 | |||||||||||||||||||||
Office | Palm Beach Gardens, FL | 10,536 | 3,578 | 14,848 | 18,426 | 3,435 | May-98 | 1996 | 40 | |||||||||||||||||||||
Industrial | Auburn Hills, MI | 6,590 | 2,788 | 6,648 | 9,436 | 2,638 | Jul-98 | 1989/1998 | 40 | |||||||||||||||||||||
Warehouse/Distribution | Baton Rouge, LA | 1,581 | 685 | 3,316 | 4,001 | 764 | Oct-98 | 1998 | 9 & 40 | |||||||||||||||||||||
Office | Herndon, VA | 18,041 | 5,127 | 20,730 | 25,857 | 4,135 | Dec-99 | 1987 | 40 | |||||||||||||||||||||
Office | Bristol, PA | 5,442 | 1,073 | 7,709 | 8,782 | 1,550 | Dec-99 | 1998 | 40 | |||||||||||||||||||||
Office | Hampton, VA | 6,984 | 2,333 | 9,352 | 11,685 | 1,431 | Mar-00 | 1999 | 40 | |||||||||||||||||||||
Office | Phoenix, AZ | 18,807 | 4,666 | 19,966 | 24,632 | 3,689 | May-00 | 1997 | 6 & 40 | |||||||||||||||||||||
Industrial | Danville, IL | 6,161 | 1,796 | 7,182 | 8,978 | 1,266 | Dec-00 | 2000 | 40 | |||||||||||||||||||||
Retail | Eau Claire, WI | 1,583 | 860 | 3,441 | 4,301 | 527 | Nov-01 | 1994 | 40 | |||||||||||||||||||||
Retail | Canton, OH | 2,993 | 884 | 3,534 | 4,418 | 541 | Nov-01 | 1995 | 40 | |||||||||||||||||||||
Industrial | Plymouth, MI | 4,442 | 1,533 | 6,130 | 7,663 | 939 | Nov-01 | 1996 | 40 | |||||||||||||||||||||
Retail | Spartanburg, SC | 2,486 | 834 | 3,334 | 4,168 | 510 | Nov-01 | 1996 | 40 | |||||||||||||||||||||
Industrial | Henderson, NC | 4,007 | 1,488 | 5,953 | 7,441 | 912 | Nov-01 | 1998 | 40 | |||||||||||||||||||||
Office | Hampton, VA | 4,283 | 1,353 | 5,441 | 6,794 | 1,060 | Nov-01 | 2000 | 40 | |||||||||||||||||||||
Retail | Westland, MI | 1,087 | 1,444 | 5,777 | 7,221 | 884 | Nov-01 | 1987/1997 | 40 | |||||||||||||||||||||
Office | Phoenix, AZ | *** | 2,287 | 20,584 | 22,871 | 2,009 | Nov-01 | 1995/1994 | 20 & 40 | |||||||||||||||||||||
Industrial | Hebron, OH | *** | 1,681 | 6,779 | 8,460 | 1,038 | Dec-01 | 1999 | 5 & 40 | |||||||||||||||||||||
Industrial | Dillon, SC | 22,950 | 3,223 | 26,054 | 29,277 | 3,254 | Dec-01 | 2001/2005 | 22 & 40 | |||||||||||||||||||||
Office | Lake Forest, CA | 10,352 | 3,442 | 13,769 | 17,211 | 1,994 | Mar-02 | 2001 | 40 | |||||||||||||||||||||
Office | Fort Mill, SC | 10,903 | 3,601 | 14,404 | 18,005 | 1,815 | Dec-02 | 2002 | 40 | |||||||||||||||||||||
Office | Boca Raton, FL | 20,400 | 4,290 | 17,160 | 21,450 | 2,091 | Feb-03 | 1983/2002 | 40 |
B-102
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Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Industrial | Dubuque, IA | 10,597 | 2,052 | 8,443 | 10,495 | 955 | Jul-03 | 2002 | 12 & 40 | |||||||||||||||||||||
Office | Wallingford, CT | 3,371 | 1,049 | 4,198 | 5,247 | 424 | Dec-03 | 1978/1985 | 40 | |||||||||||||||||||||
Industrial | Waxahachie, TX | 0 | 652 | 13,045 | 13,697 | 3,709 | Dec-03 | 1996/1997 | 10, 16 & 40 | |||||||||||||||||||||
Office | Wall Township, NJ | 29,430 | 8,985 | 26,961 | 35,946 | 4,160 | Jan-04 | 1983 | 22 & 40 | |||||||||||||||||||||
Industrial | Moody, AL | 7,241 | 654 | 9,943 | 10,597 | 2,024 | Feb-04 | 2004 | 10, 15 & 40 | |||||||||||||||||||||
Industrial | Houston, TX | 24,498 | 13,894 | 14,488 | 28,382 | 1,358 | Mar-04 | 1992 | 40 | |||||||||||||||||||||
Office | Sugar Land, TX | 15,670 | 1,834 | 16,536 | 18,370 | 1,550 | Mar-04 | 1997 | 40 | |||||||||||||||||||||
Office | Houston, TX | 6,948 | 644 | 7,424 | 8,068 | 696 | Mar-04 | 1981/1999 | 40 | |||||||||||||||||||||
Office | Florence, SC | 8,678 | 3,235 | 12,941 | 16,176 | 1,920 | May-04 | 1998 | 40 | |||||||||||||||||||||
Office | Clive, IA | 5,784 | 2,761 | 7,453 | 10,214 | 1,590 | Jun-04 | 2003 | 12, 13 & 40 | |||||||||||||||||||||
Office | Carrollton, TX | 13,921 | 2,487 | 18,157 | 20,644 | 2,379 | Jun-04 | 2003 | 19 & 40 | |||||||||||||||||||||
Industrial | High Point, NC | 8,146 | 1,330 | 11,183 | 12,513 | 1,718 | Jul-04 | 2002 | 18 & 40 | |||||||||||||||||||||
Office | Southfield, MI | *** | 0 | 12,124 | 12,124 | 2,707 | Jul-04 | 1963/1965 | 7, 16 & 40 | |||||||||||||||||||||
Industrial | San Antonio, TX | 28,671 | 2,482 | 38,535 | 41,017 | 6,416 | Jul-04 | 2001 | 17 & 40 | |||||||||||||||||||||
Office | Fort Mill, SC | 20,238 | 1,798 | 25,192 | 26,990 | 4,497 | Nov-04 | 2004 | 15 & 40 | |||||||||||||||||||||
Office/R&D | Foxboro, MA | 14,091 | 1,586 | 18,245 | 19,831 | 2,971 | Nov-04 | 1965/1988 | 15 & 40 |
B-103
Table of Contents
Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Office | Foxboro, MA | 18,351 | 2,231 | 25,653 | 27,884 | 3,952 | Dec-04 | 1982 | 16 & 40 | |||||||||||||||||||||
Industrial | Olive Branch, MS | 0 | 198 | 10,276 | 10,474 | 2,234 | Dec-04 | 1989 | 8, 15 & 40 | |||||||||||||||||||||
Office | Los Angeles, CA | 11,235 | 5,110 | 10,911 | 16,021 | 1,952 | Dec-04 | 2000 | 13 & 40 | |||||||||||||||||||||
Industrial | Knoxville, TN | 7,628 | 1,079 | 10,762 | 11,841 | 1,598 | Mar-05 | 2001 | 14 & 40 | |||||||||||||||||||||
Office | Tempe, AZ | 13,336 | 0 | 14,564 | 14,564 | 2,285 | Apr-05 | 1998 | 13 & 40 | |||||||||||||||||||||
Office | Farmington Hills, MI | 0 | 3,400 | 6,040 | 9,440 | 2,333 | Apr-05 | 1999 | 22 & 40 | |||||||||||||||||||||
Industrial | Kalamazoo, MI | 17,243 | 960 | 17,714 | 18,674 | 1,867 | Apr-05 | 1999 | 22 & 40 | |||||||||||||||||||||
Industrial | Millington, TN | 17,427 | 723 | 19,119 | 19,842 | 2,549 | Apr-05 | 1997 | 16 & 40 | |||||||||||||||||||||
Office | Fort Meyers, FL | 8,912 | 1,820 | 10,198 | 12,018 | 1,644 | Apr-05 | 1997 | 13 & 40 | |||||||||||||||||||||
Office | Harrisburg, PA | 8,968 | 900 | 10,526 | 11,426 | 2,406 | Apr-05 | 1998 | 9 & 40 | |||||||||||||||||||||
Office | Indianapolis, IN | 12,881 | 1,700 | 16,448 | 18,148 | 3,422 | Apr-05 | 1999 | 10 & 40 | |||||||||||||||||||||
Office | Tulsa, OK | 7,509 | 2,126 | 8,493 | 10,619 | 1,727 | Apr-05 | 2000 | 11 & 40 | |||||||||||||||||||||
Office | Houston, TX | 17,261 | 3,750 | 21,149 | 24,899 | 3,410 | Apr-05 | 2000 | 13 & 40 | |||||||||||||||||||||
Office | Houston, TX | 16,589 | 800 | 22,538 | 23,338 | 4,152 | Apr-05 | 2000 | 11 & 40 | |||||||||||||||||||||
Office | San Antonio, TX | 12,784 | 2,800 | 14,587 | 17,387 | 2,761 | Apr-05 | 2000 | 11 & 40 | |||||||||||||||||||||
Office | Richmond, VA | 10,373 | 1,100 | 11,919 | 13,019 | 1,725 | Apr-05 | 2000 | 15 & 40 | |||||||||||||||||||||
Office | Suwannee, GA | 11,325 | 3,200 | 10,903 | 14,103 | 1,885 | Apr-05 | 2001 | 12 & 40 | |||||||||||||||||||||
Office | Indianapolis, IN | 9,419 | 1,360 | 13,067 | 14,427 | 2,160 | Apr-05 | 2002 | 12 & 40 | |||||||||||||||||||||
Office | Lakewood, CO | 8,493 | 1,400 | 8,653 | 10,053 | 1,478 | Apr-05 | 2002 | 12 & 40 | |||||||||||||||||||||
Office | Atlanta, GA | 44,228 | 4,600 | 55,333 | 59,933 | 8,715 | Apr-05 | 2003 | 13 & 40 | |||||||||||||||||||||
Office | Houston, TX | 12,955 | 1,500 | 14,581 | 16,081 | 2,146 | Apr-05 | 2003 | 14 & 40 | |||||||||||||||||||||
Office | Allen, TX | 30,582 | 7,600 | 35,343 | 42,943 | 6,759 | Apr-05 | 1981/1983 | 11 & 40 | |||||||||||||||||||||
Office | Philadelphia, PA | 48,727 | 13,209 | 50,744 | 63,953 | 7,284 | Jun-05 | 1957 | 10, 14, 15 & 40 | |||||||||||||||||||||
Industrial | Dry Ridge, KY | 7,112 | 560 | 12,553 | 13,113 | 1,091 | Jun-05 | 1988 | 25 & 40 | |||||||||||||||||||||
Industrial | Elizabethtown, KY | 2,994 | 352 | 4,862 | 5,214 | 422 | Jun-05 | 2001 | 25 & 40 | |||||||||||||||||||||
Industrial | Elizabethtown, KY | 15,874 | 890 | 26,868 | 27,758 | 2,334 | Jun-05 | 1995/2001 | 25 & 40 | |||||||||||||||||||||
Industrial | Owensboro, KY | 6,346 | 393 | 11,956 | 12,349 | 1,011 | Jun-05 | 1998/2000 | 25 & 40 | |||||||||||||||||||||
Industrial | Hopkinsville, KY | 9,304 | 631 | 16,154 | 16,785 | 1,355 | Jun-05 | Various | 25 & 40 | |||||||||||||||||||||
Office | Southington, CT | 13,456 | 3,240 | 25,339 | 28,579 | 11,828 | Nov-05 | 1983 | 12, 28 & 40 | |||||||||||||||||||||
Office | Omaha, NE | 8,802 | 2,566 | 8,324 | 10,890 | 538 | Nov-05 | 1995 | 20 & 40 |
B-104
Table of Contents
Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||
Office | Sugarland, TX | 9,742 | 2,725 | 10,027 | 12,752 | 878 | Nov-05 | 2004 | 20 & 40 | |||||||||||||||||||
Office | Tempe, AZ | 8,313 | 0 | 9,443 | 9,443 | 586 | Dec-05 | 1998 | 30 & 40 | |||||||||||||||||||
Industrial | Collierville, TN | *** | 714 | 2,455 | 3,169 | 204 | Dec-05 | 2005 | 20 & 40 | |||||||||||||||||||
Industrial | Crossville, TN | 0 | 545 | 6,999 | 7,544 | 692 | Jan-06 | 1989/2006 | 17 & 40 | |||||||||||||||||||
Office | Renswoude, Netherlands | 39,178 | 2,913 | 26,403 | 29,316 | 2,386 | Jan-06 | 1994/2003 | 17 & 40 | |||||||||||||||||||
Office | Memphis, TN | 3,951 | 464 | 4,467 | 4,931 | 207 | Nov-06 | 1888 | 20 & 40 | |||||||||||||||||||
Office | Charleston, SC | 7,350 | 1,189 | 8,724 | 9,913 | 427 | Nov-06 | 2006 | 40 | |||||||||||||||||||
Office | Hanover, NJ | 16,627 | 4,063 | 19,711 | 23,774 | 913 | Nov-06 | 2006 | 20 & 40 | |||||||||||||||||||
Office | Hilliard, OH | 28,960 | 3,214 | 29,028 | 32,242 | 1,405 | Dec-06 | 2006 | 40 | |||||||||||||||||||
Retail, Office, Garage | Honolulu, HI | *** | 21,094 | 13,163 | 34,257 | 326 | Dec-06 | 1917/1980 | 40 | |||||||||||||||||||
Industrial | Long Beach, CA | 5,902 | 6,230 | 7,802 | 14,032 | 386 | Dec-06 | 1981 | 40 | |||||||||||||||||||
Industrial | Palo Alto, CA | *** | 12,398 | 16,977 | 29,375 | 2,224 | Dec-06 | 1974 | 40 | |||||||||||||||||||
Industrial | Orlando, FL | *** | 1,030 | 10,869 | 11,899 | 306 | Dec-06 | 1981 | 40 | |||||||||||||||||||
Industrial | McDonough, GA | 23,000 | 2,463 | 24,291 | 26,754 | 585 | Dec-06 | 2000 | 40 | |||||||||||||||||||
Industrial | Rockford, IL | 4,278 | 509 | 5,289 | 5,798 | 145 | Dec-06 | 1992 | 40 | |||||||||||||||||||
Industrial | Rockford Central, IL | 2,622 | 371 | 2,573 | 2,944 | 76 | Dec-06 | 1998 | 40 | |||||||||||||||||||
Industrial | Owensboro, KY | 4,666 | 819 | 2,439 | 3,258 | 159 | Dec-06 | 1975 | 40 | |||||||||||||||||||
Industrial | North Berwick, ME | *** | 1,383 | 31,817 | 33,200 | 820 | Dec-06 | 1965 | 40 | |||||||||||||||||||
Industrial | Lumberton, NC | *** | 405 | 12,049 | 12,454 | 387 | Dec-06 | 1998 | 40 | |||||||||||||||||||
Industrial | Statesville, NC | 14,100 | 891 | 16,494 | 17,385 | 638 | Dec-06 | 1999 | 40 | |||||||||||||||||||
Industrial | Saugerties, NY | 0 | 508 | 2,837 | 3,345 | 73 | Dec-06 | 1979 | 40 | |||||||||||||||||||
Industrial | Cincinnati, OH | *** | 1,009 | 7,007 | 8,016 | 212 | Dec-06 | 1991 | 40 | |||||||||||||||||||
Industrial | Columbus, OH | *** | 1,990 | 10,580 | 12,570 | 348 | Dec-06 | 1973 | 40 | |||||||||||||||||||
Industrial | N. Myrtle Beach, SC | *** | 1,481 | 2,078 | 3,559 | 91 | Dec-06 | 1983 | 40 | |||||||||||||||||||
Industrial | Franklin, TN | 0 | 964 | 8,783 | 9,747 | 449 | Dec-06 | 1970 | 40 | |||||||||||||||||||
Industrial | Memphis, TN | 0 | 1,553 | 12,326 | 13,879 | 379 | Dec-06 | 1973 | 40 | |||||||||||||||||||
Industrial | Garland, TX | 0 | 2,606 | 20,452 | 23,058 | 434 | Dec-06 | 1980 | 40 | |||||||||||||||||||
Land | Baltimore, MD | 0 | 4,571 | 0 | 4,571 | 0 | Dec-06 | N/A | N/A | |||||||||||||||||||
Office | Little Rock, AR | *** | 1,353 | 2,260 | 3,613 | 68 | Dec-06 | 1980 | 40 | |||||||||||||||||||
Office | Irvine, CA | 4,079 | 4,758 | 36,262 | 41,020 | 930 | Dec-06 | 1983 | 40 |
B-105
Table of Contents
Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Office | Long Beach, CA | 15,923 | 19,672 | 67,478 | 87,150 | 2,501 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Office | Pleasanton, CA | 4,414 | 2,671 | 2,839 | 5,510 | 276 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Office | San Francisco, CA | 22,455 | 14,539 | 36,505 | 51,044 | 932 | Dec-06 | 1959 | 40 | |||||||||||||||||||||
Office | Walnut Creek,, CA | *** | 4,214 | 13,803 | 18,017 | 374 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Office | Colorado Springs, CO | *** | 1,018 | 2,459 | 3,477 | 109 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Office | Clinton, CT | 721 | 285 | 4,044 | 4,329 | 112 | Dec-06 | 1971 | 40 | |||||||||||||||||||||
Office | Orlando, FL | *** | 586 | 35,012 | 35,598 | 908 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Office | Orlando, FL | *** | 11,498 | 33,671 | 45,169 | 1,874 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Office | Lisle, IL | 10,450 | 3,236 | 13,667 | 16,903 | 451 | Dec-06 | 1985 | 40 | |||||||||||||||||||||
Office | Columbus, IN | 42,800 | 235 | 45,729 | 45,964 | 941 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Office | Baltimore, MD | *** | 16,959 | 78,959 | 95,918 | 2,572 | Dec-06 | 1973 | 40 | |||||||||||||||||||||
Office | Bridgeton, MO | *** | 1,016 | 4,469 | 5,485 | 151 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Office | Bridgewater, NJ | 14,805 | 4,738 | 27,331 | 32,069 | 724 | Dec-06 | 1986 | 40 | |||||||||||||||||||||
Office | Carteret, NJ | 0 | 3,834 | 16,653 | 20,487 | 621 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Office | Elizabeth, NJ | *** | 1,324 | 6,484 | 7,808 | 164 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Office | Plainsboro, NJ | 0 | 383 | 176 | 559 | 25 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Office | Rockaway, NJ | 14,900 | 4,646 | 20,428 | 25,074 | 648 | Dec-06 | 2002 | 40 | |||||||||||||||||||||
Office | Las Vegas, NV | 52,782 | 8,824 | 53,164 | 61,988 | 1,359 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Office | Rochester, NY | 18,800 | 645 | 25,892 | 26,537 | 702 | Dec-06 | 1988 | 40 | |||||||||||||||||||||
Office | Glenwillow, OH | 17,000 | 2,228 | 24,530 | 26,758 | 668 | Dec-06 | 1996 | 40 | |||||||||||||||||||||
Office | Johnson City, TN | *** | 1,214 | 7,568 | 8,782 | 212 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Office | Memphis, TN | *** | 1,353 | 8,124 | 9,477 | 241 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Office | Memphis, TN | 76,800 | 5,291 | 97,032 | 102,323 | 2,527 | Dec-06 | 1985 | 40 | |||||||||||||||||||||
Office | Beaumont, TX | 0 | 456 | 3,454 | 3,910 | 106 | Dec-06 | 1978 | 40 | |||||||||||||||||||||
Office | Beaumont, TX | *** | 0 | 22,988 | 22,988 | 1,900 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Office | Bedford, TX | *** | 1,983 | 6,486 | 8,469 | 124 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Office | Dallas, TX | *** | 4,042 | 18,104 | 22,146 | 522 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Other | Sun City, AZ | 0 | 2,154 | 2,775 | 4,929 | 71 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Other | Carlsbad, NM | 0 | 918 | 775 | 1,693 | 25 | Dec-06 | 1980 | 40 |
B-106
Table of Contents
Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Other | Corpus Christi, TX | 0 | 987 | 974 | 1,961 | 26 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Other | El Paso, TX | 0 | 220 | 1,749 | 1,969 | 45 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Other | McAllen, TX | 0 | 606 | 1,257 | 1,863 | 33 | Dec-06 | 2004 | 40 | |||||||||||||||||||||
Other | Victoria, TX | 0 | 300 | 1,149 | 1,449 | 30 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Retail | Florence, AL | *** | 796 | 3,747 | 4,543 | 114 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Montgomery, AL | 0 | 730 | 3,255 | 3,985 | 148 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Bisbee, AZ | 0 | 478 | 2,426 | 2,904 | 73 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Tucson, AZ | 0 | 1,459 | 3,596 | 5,055 | 128 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Mammoth Lakes, CA | 0 | 6,279 | 2,761 | 9,040 | 228 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Aurora, CO | 0 | 1,224 | 1,431 | 2,655 | 77 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Retail | Port Richey, FL | 0 | 2,214 | 2,656 | 4,870 | 101 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Tallahassee, FL | 0 | 0 | 3,700 | 3,700 | 92 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Atlanta, GA | 0 | 1,014 | 269 | 1,283 | 36 | Dec-06 | 1972 | 40 | |||||||||||||||||||||
Retail | Atlanta, GA | 0 | 870 | 187 | 1,057 | 28 | Dec-06 | 1975 | 40 | |||||||||||||||||||||
Retail | Chamblee, GA | 0 | 770 | 186 | 956 | 32 | Dec-06 | 1972 | 40 | |||||||||||||||||||||
Retail | Cumming, GA | 0 | 1,558 | 1,368 | 2,926 | 76 | Dec-06 | 1968 | 40 | |||||||||||||||||||||
Retail | Duluth, GA | 0 | 660 | 1,014 | 1,674 | 45 | Dec-06 | 1971 | 40 | |||||||||||||||||||||
Retail | Forest Park, GA | 0 | 668 | 1,242 | 1,910 | 54 | Dec-06 | 1969 | 40 | |||||||||||||||||||||
Retail | Jonesboro, GA | 0 | 778 | 146 | 924 | 25 | Dec-06 | 1971 | 40 | |||||||||||||||||||||
Retail | Stone Mountain, GA | 0 | 672 | 276 | 948 | 26 | Dec-06 | 1973 | 40 | |||||||||||||||||||||
Retail | Rock Falls, IL | *** | 135 | 702 | 837 | 41 | Dec-06 | 1991 | 40 | |||||||||||||||||||||
Retail | Lawrence, IN | 0 | 404 | 1,737 | 2,141 | 49 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Minden, LA | 0 | 334 | 4,888 | 5,222 | 123 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Columbia, MD | 942 | 4,297 | 3,664 | 7,961 | 99 | Dec-06 | 1979 | 40 | |||||||||||||||||||||
Retail | Billings, MT | 0 | 506 | 3,062 | 3,568 | 110 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Retail | Charlotte, NC | *** | 606 | 2,561 | 3,167 | 64 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Concord, NC | *** | 685 | 943 | 1,628 | 48 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Jacksonville, NC | 0 | 1,151 | 221 | 1,372 | 35 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Jefferson, NC | 0 | 71 | 884 | 955 | 23 | Dec-06 | 1979 | 40 | |||||||||||||||||||||
Retail | Lexington, NC | 0 | 832 | 1,429 | 2,261 | 37 | Dec-06 | 1983 | 40 |
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Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Retail | Thomasville, NC | *** | 610 | 1,854 | 2,464 | 47 | Dec-06 | 1998 | 40 | |||||||||||||||||||||
Retail | Garwood, NJ | 95 | 3,920 | 8,052 | 11,972 | 259 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Portchester, NY | 0 | 7,086 | 9,313 | 16,399 | 468 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Cincinnati, OH | 0 | 0 | 0 | 0 | 0 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Franklin, OH | 0 | 1,089 | 1,699 | 2,788 | 43 | Dec-06 | 1961 | 40 | |||||||||||||||||||||
Retail | Lawton, OK | 0 | 663 | 1,288 | 1,951 | 50 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Grants Pass, OR | 0 | 1,894 | 1,470 | 3,364 | 84 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Doylestown, PA | 0 | 980 | 589 | 1,569 | 22 | Dec-06 | 1976 | 40 | |||||||||||||||||||||
Retail | Lansdale, PA | 0 | 488 | 85 | 573 | 10 | Dec-06 | 1966 | 40 | |||||||||||||||||||||
Retail | Lima, PA | 0 | 1,011 | 656 | 1,667 | 23 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 92 | 771 | 863 | 28 | Dec-06 | 1920 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 122 | 973 | 1,095 | 36 | Dec-06 | 1920 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 106 | 485 | 591 | 14 | Dec-06 | 1975 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 165 | 1,362 | 1,527 | 50 | Dec-06 | 1960 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 92 | 791 | 883 | 36 | Dec-06 | 1921 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 629 | 459 | 1,088 | 29 | Dec-06 | 1970 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 114 | 551 | 665 | 24 | Dec-06 | 1922 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 267 | 963 | 1,230 | 38 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Philadelphia, PA | 0 | 2,548 | 8,370 | 10,918 | 319 | Dec-06 | 1980 | 40 | |||||||||||||||||||||
Retail | Richboro, PA | 0 | 686 | 649 | 1,335 | 23 | Dec-06 | 1976 | 40 | |||||||||||||||||||||
Retail | Wayne, PA | 0 | 1,877 | 503 | 2,380 | 25 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Moncks Corner, SC | 0 | 13 | 1,510 | 1,523 | 41 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Chattanooga, TN | *** | 550 | 1,241 | 1,791 | 53 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Paris, TN | *** | 247 | 547 | 794 | 21 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Carrollton, TX | 0 | 2,262 | 1,085 | 3,347 | 73 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Dallas, TX | 0 | 1,637 | 5,381 | 7,018 | 209 | Dec-06 | 1960 | 40 | |||||||||||||||||||||
Retail | Fort Worth, TX | 0 | 1,003 | 3,304 | 4,307 | 128 | Dec-06 | 1985 | 40 | |||||||||||||||||||||
Retail | Garland, TX | *** | 763 | 3,448 | 4,211 | 586 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Granbury, TX | 0 | 1,131 | 3,986 | 5,117 | 129 | Dec-06 | 1982 | 40 |
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Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Retail | Grand Prairie, TX | 0 | 1,132 | 4,754 | 5,886 | 150 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Greenville, TX | 0 | 562 | 2,743 | 3,305 | 84 | Dec-06 | 1985 | 40 | |||||||||||||||||||||
Retail | Hillsboro, TX | 0 | 139 | 1,581 | 1,720 | 44 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Houston, TX | 0 | 1,336 | 5,183 | 6,519 | 167 | Dec-06 | 1982 | 40 | |||||||||||||||||||||
Retail | Lubbock, TX | *** | 417 | 1,783 | 2,200 | 55 | Dec-06 | 1978 | 40 | |||||||||||||||||||||
Retail | Sandy, UT | *** | 1,505 | 3,375 | 4,880 | 145 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Retail | Staunton, VA | 0 | 1,028 | 325 | 1,353 | 37 | Dec-06 | 1971 | 40 | |||||||||||||||||||||
Retail | Edmonds, WA | 0 | 0 | 2,600 | 2,600 | 65 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Retail | Graham, WA | 0 | 2,195 | 4,478 | 6,673 | 168 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Milton, WA | 0 | 1,941 | 5,310 | 7,251 | 183 | Dec-06 | 1989 | 40 | |||||||||||||||||||||
Retail | Port Orchard, WA | 0 | 2,167 | 1,293 | 3,460 | 96 | Dec-06 | 1983 | 40 | |||||||||||||||||||||
Retail | Redmond, WA | 0 | 4,654 | 5,355 | 10,009 | 252 | Dec-06 | 1985 | 40 | |||||||||||||||||||||
Retail | Spokane, WA | 0 | 449 | 3,070 | 3,519 | 89 | Dec-06 | 1984 | 40 | |||||||||||||||||||||
Retail | Cheyenne, WY | *** | 956 | 1,974 | 2,930 | 49 | Dec-06 | 1981 | 40 | |||||||||||||||||||||
Office | Evanston, WY | *** | 362 | 2,554 | 2,916 | 73 | Dec-06 | 1975 | 40 | |||||||||||||||||||||
Office | Orlando, FL | 9,975 | 3,538 | 9,019 | 12,557 | 557 | Jan-07 | 2003 | 12 & 40 | |||||||||||||||||||||
Office | Boston, MA | *** | 3,814 | 14,728 | 18,542 | 291 | Mar-07 | 1910 | 40 | |||||||||||||||||||||
Office | Coppell, TX | 14,400 | 2,470 | 12,793 | 15,263 | 253 | Mar-07 | 2002 | 40 | |||||||||||||||||||||
Industrial | Shreveport, LA | 19,000 | 860 | 21,840 | 22,700 | 432 | Mar-07 | 2006 | 40 | |||||||||||||||||||||
Office | Westlake, TX | 18,981 | 2,361 | 22,396 | 24,757 | 1,547 | May-07 | 2007 | 40 | |||||||||||||||||||||
Industrial | Antioch, TN | 14,781 | 5,568 | 16,609 | 22,177 | 1,097 | May-07 | 1983 | 14-40 | |||||||||||||||||||||
Office | Canonsburg, PA | 9,070 | 1,055 | 10,910 | 11,965 | 756 | May-07 | 1997 | 8-40 | |||||||||||||||||||||
Retail | Galesburg, IL | 1,307 | 560 | 2,366 | 2,926 | 123 | May-07 | 1992 | 12-40 | |||||||||||||||||||||
Retail | Lewisburg, WV | 1,538 | 501 | 1,985 | 2,486 | 54 | May-07 | 1993 | 12-40 | |||||||||||||||||||||
Retail | Lorain, OH | 3,297 | 1,893 | 7,025 | 8,918 | 254 | May-07 | 1993 | 23-40 | |||||||||||||||||||||
Retail | Manteca, CA | 2,329 | 2,082 | 6,464 | 8,546 | 232 | May-07 | 1993 | 23-40 | |||||||||||||||||||||
Retail | San Diego, CA | 1,484 | 0 | 13,310 | 13,310 | 258 | May-07 | 1993 | 23-40 | |||||||||||||||||||||
Retail | Watertown, NY | 2,190 | 386 | 5,162 | 5,548 | 217 | May-07 | 1993 | 23-40 | |||||||||||||||||||||
Office | Irving, TX | 39,580 | 7,476 | 42,692 | 50,168 | 2,964 | May-07 | 1999 | 6-40 |
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Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
Accumulated | ||||||||||||||||||||||||||||||
Buildings | Depreciation | Useful life computing | ||||||||||||||||||||||||||||
Land, Improvements | and | and | Date | Date | depreciation in latest | |||||||||||||||||||||||||
Description | Location | Encumbrances | and Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statements (years) | |||||||||||||||||||||
Office | Baton Rouge, LA | 6,461 | 1,252 | 10,244 | 11,496 | 644 | May-07 | 1997 | 6 & 40 | |||||||||||||||||||||
Office | Centenial, CO | 15,322 | 4,851 | 15,187 | 20,038 | 1,107 | May-07 | 2001 | 10-40 | |||||||||||||||||||||
Office | Westerville, OH | 0 | 2,085 | 9,265 | 11,350 | 210 | May-07 | 2000 | 40 | |||||||||||||||||||||
Office | Overland Park, KS | 37,465 | 4,769 | 41,956 | 46,725 | 1,815 | Jun-07 | 1980 | 12 & 40 | |||||||||||||||||||||
Office | Carrollton, TX | 20,246 | 3,427 | 22,050 | 25,477 | 1,020 | Jun-07 | 2003 | 8 & 40 | |||||||||||||||||||||
Industrial | Durham, NH | 19,273 | 3,464 | 18,094 | 21,558 | 833 | Jun-07 | 1986 | 40 | |||||||||||||||||||||
Office | Dallas, TX | 18,563 | 3,984 | 27,308 | 31,292 | 1,084 | Jun-07 | 2002 | 40 | |||||||||||||||||||||
Office | Farmington Hills, MI | 19,616 | 4,876 | 21,115 | 25,991 | 1,811 | Jun-07 | 1999 | 10-40 | |||||||||||||||||||||
Office | Arlington, TX | 20,860 | 4,424 | 22,826 | 27,250 | 1,637 | Jun-07 | 2003 | 7-40 | |||||||||||||||||||||
Office | Kansas City, MO | 17,876 | 2,433 | 20,154 | 22,587 | 864 | Jun-07 | 1980 | 12-40 | |||||||||||||||||||||
Industrial | Streetsboro, OH | 19,462 | 2,441 | 22,171 | 24,612 | 1,064 | Jun-07 | 2004 | 12-40 | |||||||||||||||||||||
Office | Issaquah, WA | 31,588 | 5,126 | 13,554 | 18,680 | 917 | Jun-07 | 1987 | 8-40 | |||||||||||||||||||||
Office | Issaquah, WA | 0 | 6,268 | 16,058 | 22,326 | 1,043 | Jun-07 | 1987 | 8-40 | |||||||||||||||||||||
Office | Houston, TX | 19,663 | 12,835 | 26,690 | 39,525 | 2,395 | Jun-07 | 2000 | 2-40 | |||||||||||||||||||||
Industrial | Plymouth, MI | 11,847 | 2,296 | 13,398 | 15,694 | 1,202 | Jun-07 | 1996 | 40 | |||||||||||||||||||||
Industrial | Temperance, MI | 10,909 | 3,040 | 14,738 | 17,778 | 828 | Jun-07 | 1980 | 40 | |||||||||||||||||||||
Industrial | Logan, NJ | 7,318 | 1,825 | 10,776 | 12,601 | 416 | Jun-07 | 1998 | 40 | |||||||||||||||||||||
Industrial | Laurens, SC | 16,240 | 5,552 | 20,886 | 26,438 | 1,220 | Jun-07 | 1991 | 40 | |||||||||||||||||||||
Industrial | Winchester, VA | 10,606 | 3,823 | 12,226 | 16,049 | 848 | Jun-07 | 2001 | 40 | |||||||||||||||||||||
Office | Colorado Springs, CO | 11,381 | 2,748 | 12,554 | 15,302 | 652 | Jun-07 | 1980 | 40 | |||||||||||||||||||||
Office | Lake Mary, FL | 13,079 | 4,535 | 13,950 | 18,485 | 1,248 | Jun-07 | 1997 | 40 | |||||||||||||||||||||
Office | Lake Mary, FL | 13,040 | 4,438 | 13,716 | 18,154 | 1,220 | Jun-07 | 1999 | 40 | |||||||||||||||||||||
Office | Chicago, IL | 28,975 | 5,155 | 45,904 | 51,059 | 3,013 | Jun-07 | 1986 | 40 | |||||||||||||||||||||
Office | Fishers, IN | 14,283 | 2,808 | 18,661 | 21,469 | 1,570 | Jun-07 | 1999 | 40 | |||||||||||||||||||||
Office | Cary, NC | 12,589 | 5,342 | 14,866 | 20,208 | 1,034 | Jun-07 | 1999 | 40 | |||||||||||||||||||||
Office | Parisppany, NJ | 40,151 | 7,478 | 84,051 | 91,529 | 5,272 | Jun-07 | 2000 | 40 | |||||||||||||||||||||
Office | Milford, OH | 16,220 | 3,124 | 15,396 | 18,520 | 1,637 | Jun-07 | 1991 | 40 | |||||||||||||||||||||
Office | Irving , TX | 26,408 | 4,889 | 22,806 | 27,695 | 2,536 | Jun-07 | 1999 | 40 | |||||||||||||||||||||
Office | Glen Allen, VA | 19,485 | 2,361 | 28,504 | 30,865 | 2,222 | Jun-07 | 1998 | 40 | |||||||||||||||||||||
Office | Herndon, VA | 11,930 | 9,409 | 12,853 | 22,262 | 1,034 | Jun-07 | 1987 | 40 | |||||||||||||||||||||
Industrial | Duncan, SC | 0 | 884 | 7,944 | 8,828 | 124 | Jun-07 | 2005 | 40 | |||||||||||||||||||||
Office | Brea, CA | 78,092 | 37,270 | 45,691 | 82,961 | 3,074 | Dec-07 | 1983 | 40 | |||||||||||||||||||||
Office | Houston, TX | 60,193 | 16,613 | 52,682 | 69,295 | 4,939 | Dec-07 | 1976/1984 | 40 | |||||||||||||||||||||
subtotal | 2,098,787 | 694,913 | 3,400,365 | 4,095,278 | 379,831 | |||||||||||||||||||||||||
*** (see note below) | 213,635 | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 2,312,422 | $ | 694,913 | $ | 3,400,365 | $ | 4,095,278 | $ | 379,831 | ||||||||||||||||||||
*** | Property is collateral for a $213,635 secured loan. |
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Real Estate and Accumulated Depreciation and Amortization
Schedule III ($000) — (continued)
2007 | 2006 | 2005 | ||||||||||
Reconciliation of real estate owned: | ||||||||||||
Balance at the beginning of year | $ | 3,747,156 | $ | 1,883,115 | $ | 1,407,872 | ||||||
Merger basis reallocation | 8,235 | — | — | |||||||||
Additions during year | 146,252 | 1,918,700 | 671,955 | |||||||||
Properties sold during year | (634,560 | ) | (53,696 | ) | (34,120 | ) | ||||||
Property contributed to joint venture during year | (132,054 | ) | — | (117,411 | ) | |||||||
Properties consolidated during the year | 1,109,064 | 110,728 | — | |||||||||
Reclassified held for sale properties | (138,163 | ) | (113,033 | ) | (32,339 | ) | ||||||
Properties impaired during the year | (15,500 | ) | (6,100 | ) | (12,842 | ) | ||||||
Properties held for sale placed back in service | 1,830 | 7,442 | — | |||||||||
Translation adjustment on foreign currency | 3,018 | — | — | |||||||||
Balance at end of year | $ | 4,095,278 | $ | 3,747,156 | $ | 1,883,115 | ||||||
Balance of beginning of year | $ | 276,129 | $ | 241,188 | $ | 180,610 | ||||||
Depreciation and amortization expense | 137,525 | 67,456 | 60,096 | |||||||||
Accumulated depreciation and amortization of properties sold and held for sale during year | (54,737 | ) | (37,178 | ) | 1,506 | |||||||
Accumulated depreciation of property contributed to joint venture | (16,887 | ) | — | (1,024 | ) | |||||||
Accumulated depreciation of properties consolidated during the year | 37,597 | 4,616 | — | |||||||||
Translation adjustment on foreign currency | 204 | 47 | — | |||||||||
Balance at end of year | $ | 379,831 | $ | 276,129 | $ | 241,188 | ||||||
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Table of Contents
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Trustees and Executive Officers of the Registrant |
Item 11. | Executive Compensation |
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Table of Contents
Item 13. | Certain Relationships and Related Transactions |
Item 14. | Principal Accounting Fees and Services |
Item 15. | Exhibits, Financial Statement Schedules |
Page | ||||
(a)(1) Financial Statements | 60-101 | |||
(2) Financial Statement Schedule | 102-111 | |||
(3) Exhibits |
Exhibit No. | Description | |||||
2 | .1 | — | Agreement and Plan of Merger, dated July 23, 2006, by and between Newkirk Realty Trust, Inc. (“Newkirk”) and Lexington Realty Trust (formerly known as Lexington Corporate Properties Trust, the “Company”) (filed as Exhibit 2.1 to the Company’s Current Report onForm 8-K filed July 24, 2006 (the “07/24/068-K”))(1) | |||
2 | .2 | — | Amendment No. 1 to Agreement and Plan of Merger, dated as of September 11, 2006, by and between Newkirk and the Company (filed as Exhibit 2.1 to the Company’s Current Report onForm 8-K filed September 13, 2006 (the “09/13/068-K”))(1) | |||
2 | .3 | — | Amendment No. 2 to Agreement and Plan of Merger, dated as of October 13, 2006, by and between Newkirk and the Company (filed as Exhibit 2.1 to the Company’s Current Report onForm 8-K filed October 13, 2006)(1) | |||
3 | .1 | — | Articles of Merger and Amended and Restated Declaration of Trust of the Company, dated December 31, 2006 (filed as Exhibit 3.1 to the Company’s Current Report onForm 8-K filed January 8, 2007 (the “01/08/078-K”))(1) | |||
3 | .2 | — | Articles Supplementary Relating to the 7.55% Series D Cumulative Redeemable Preferred Stock, par value $.0001 per share (filed as Exhibit 3.3 to the Company’s Registration Statement on Form 8A filed February 14, 2007 (the “02/14/07 Registration Statement”))(1) | |||
3 | .3 | — | Amended and Restated By-laws of the Company (filed as Exhibit 3.2 to the 01/08/078-K)(1) | |||
3 | .4 | — | Fifth Amended and Restated Agreement of Limited Partnership of Lepercq Corporate Income Fund L.P. (“LCIF”), dated as of December 31, 1996, as supplemented (the “LCIF Partnership Agreement”) (filed as Exhibit 3.3 to the Company’s Registration Statement ofForm S-3/A filed September 10, 1999 (the “09/10/99 Registration Statement”))(1) | |||
3 | .5 | — | Amendment No. 1 to the LCIF Partnership Agreement dated as of December 31, 2000 (filed as Exhibit 3.11 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2003, filed February 26, 2004 (the “200310-K”))(1) | |||
3 | .6 | — | First Amendment to the LCIF Partnership Agreement effective as of June 19, 2003 (filed as Exhibit 3.12 to the 200310-K)(1) | |||
3 | .7 | — | Second Amendment to the LCIF Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 3.13 to the 200310-K)(1) | |||
3 | .8 | — | Third Amendment to the LCIF Partnership Agreement effective as of December 31, 2003 (filed as Exhibit 3.13 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2004, filed on March 16, 2005 (the “200410-K”))(1) | |||
3 | .9 | — | Fourth Amendment to the LCIF Partnership Agreement effective as of October 28, 2004 (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed November 4, 2004)(1) |
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Exhibit No. | Description | |||||
3 | .10 | — | Fifth Amendment to the LCIF Partnership Agreement effective as of December 8, 2004 (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed December 14, 2004 (the “12/14/048-K”))(1) | |||
3 | .11 | — | Sixth Amendment to the LCIF Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed January 3, 2005 (the “01/03/058-K”))(1) | |||
3 | .12 | — | Seventh Amendment to the LCIF Partnership Agreement (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed November 3, 2005)(1) | |||
3 | .13 | — | Second Amended and Restated Agreement of Limited Partnership of Lepercq Corporate Income Fund II L.P. (“LCIF II”), dated as of August 27, 1998 the (“LCIF II Partnership Agreement”) (filed as Exhibit 3.4 to the 9/10/99 Registration Statement)(1) | |||
3 | .14 | — | First Amendment to the LCIF II Partnership Agreement effective as of June 19, 2003 (filed as Exhibit 3.14 to the 200310-K)(1) | |||
3 | .15 | — | Second Amendment to the LCIF II Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 3.15 to the 200310-K)(1) | |||
3 | .16 | — | Third Amendment to the LCIF II Partnership Agreement effective as of December 8, 2004 (filed as Exhibit 10.2 to 12/14/048-K)(1) | |||
3 | .17 | — | Fourth Amendment to the LCIF II Partnership Agreement effective as of January 3, 2005 (filed as Exhibit 10.2 to 01/03/058-K)(1) | |||
3 | .18 | — | Fifth Amendment to the LCIF II Partnership Agreement effective as of July 23, 2006 (filed as Exhibit 99.5 to the 07/24/068-K)(1) | |||
3 | .19 | — | Sixth Amendment to the LCIF II Partnership Agreement effective as of December 20, 2006 (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed December 22, 2006)(1) | |||
3 | .20 | — | Amended and Restated Agreement of Limited Partnership of Net 3 Acquisition L.P. (the “Net 3 Partnership Agreement”) (filed as Exhibit 3.16 to the Company’s Registration Statement ofForm S-3 filed November 16, 2006)(1) | |||
3 | .21 | — | First Amendment to the Net 3 Partnership Agreement effective as of November 29, 2001 (filed as Exhibit 3.17 to the 200310-K)(1) | |||
3 | .22 | — | Second Amendment to the Net 3 Partnership Agreement effective as of June 19, 2003 (filed as Exhibit 3.18 to the 200310-K)(1) | |||
3 | .23 | — | Third Amendment to the Net 3 Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 3.19 to the 200310-K)(1) | |||
3 | .24 | — | Fourth Amendment to the Net 3 Partnership Agreement effective as of December 8, 2004 (filed as Exhibit 10.3 to 12/14/048-K)(1) | |||
3 | .25 | — | Fifth Amendment to the Net 3 Partnership Agreement effective as of January 3, 2005 (filed as Exhibit 10.3 to 01/03/058-K)(1) | |||
3 | .26 | — | Second Amended and Restated Agreement of Limited Partnership of The Lexington Master Limited Partnership (formerly known as The Newkirk Master Limited Partnership, the “MLP”), dated as of December 31, 2006, between Lex GP-1 Trust and Lex LP-1 Trust (filed as Exhibit 10.4 to the 01/08/078-K)(1) | |||
4 | .1 | — | Specimen of Common Shares Certificate of the Company (filed as Exhibit 4.1 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006 (the “200610-K”))(1) | |||
4 | .2 | — | Form of 8.05% Series B Cumulative Redeemable Preferred Stock certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 8A filed June 17, 2003)(1) | |||
4 | .3 | — | Form of 6.50% Series C Cumulative Convertible Preferred Stock certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 8A filed December 8, 2004)(1) | |||
4 | .4 | — | Form of 7.55% Series D Cumulative Redeemable Preferred Stock certificate (filed as Exhibit 4.1 to the 02/14/07 Registration Statement)(1) | |||
4 | .5 | — | Form of Special Voting Preferred Stock certificate (filed as Exhibit 4.5 to the 200610-K)(1) |
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Exhibit No. | Description | |||||
4 | .6 | — | Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, the Company, the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K filed January 29, 2007 (the “01/29/078-K”))(1) | |||
4 | .7 | — | First Supplemental Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, the Company, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 (filed as Exhibit 4.2 to the 01/29/078-K)(1) | |||
4 | .8 | — | Second Supplemental Indenture, dated as of March 9, 2007, among The Lexington Master Limited Partnership, the Company, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 (filed as Exhibit 4.3 to the Company’s Current Report onform 8-k filed on March 9, 2007 (the “03/09/078-K”))(1) | |||
4 | .9 | — | Amended and Restated Trust Agreement, dated March 21, 2007, among Lexington Realty Trust, The Bank of New York Trust Company, National Association, The Bank of New York (Delaware), the Administrative Trustees (as named therein) and the several holders of the Preferred Securities from time to time (filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K filed on March 27, 2007 (the “03/27/20078-K”))(1) | |||
4 | .10 | — | Third Supplemental Indenture, dated as of June 19, 207, among the MLP, the Company, the other guarantors named therein and U.S. bank National Association, as trustee, including the form of 5.45% Exchangeable Guaranteed Notes due 2027 (filed as Exhibit 4.1 to the Company’s Report onform 8-k filed on June 22, 2007(1) | |||
4 | .11 | — | Junior Subordinated Indenture, dated as of March 21, 2007, between Lexington Realty Trust and The Bank of New York Trust Company, National Association (filed as Exhibit 4.2 to the 03/27/078-K)(1) | |||
9 | .1 | — | Voting Trustee Agreement, dated as of December 31, 2006, among the Company, The Lexington Master Limited Partnership and NKT Advisors LLC (filed as Exhibit 10.6 to the 01/08/078-K)(1) | |||
10 | .1 | — | Form of 1994 Outside Director Shares Plan of the Company (filed as Exhibit 10.8 to the Company’s Annual Report onForm 10-K for the year ended December 31, 1993) (1, 4) | |||
10 | .2 | — | Amended and Restated 2002 Equity-Based Award Plan of the Company (filed as Exhibit 10.54 to the Company’s Annual Report onForm 10-K for the year ended December 31, 2002, filed on March 24, 2003 (the “200210-K”))(1) | |||
10 | .3 | — | 1994 Employee Stock Purchase Plan (filed as Exhibit D to the Company’s Definitive Proxy Statement dated April 12, 1994) (1, 4) | |||
10 | .4 | — | 1998 Share Option Plan (filed as Exhibit A to the Company’s Definitive Proxy Statement filed on April 22, 1998) (1, 4) | |||
10 | .5 | — | Amendment to 1998 Share Option Plan (filed as Exhibit 10.3 to the Company’s Current Report onForm 8-K filed on February 6, 2006 (the “02/06/068-K”)) (1, 4) | |||
10 | .6 | — | Amendment to 1998 Share Option Plan (filed as Exhibit 10.3 to the Company’s Current Report onForm 8-K filed on January 3, 2007 (the “01/03/078-K”)) (1, 4) | |||
10 | .7 | — | 2007 Outperformance Program (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on April 5, 2007) (1,4) | |||
10 | .8 | — | Amendment to 2007 Outperformance Program (filed as Exhibit 10.6 to the Company’s Current Report onform 8-K filed on December 20,2007 (the 12/26/078-K)) (1,4) | |||
10 | .9 | — | Form of Compensation Agreement (Long-Term Compensation) between the Company and each of the following officers: Richard J. Rouse and Patrick Carroll (filed as Exhibit 10.15 to the 200410-K) (1, 4) | |||
10 | .10 | — | Form of Compensation Agreement (Bonus and Long-Term Compensation) between the Company and each of the following officers: E. Robert Roskind and T. Wilson Eglin (filed as Exhibit 10.16 to the 200410-K) (1, 4) |
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Exhibit No. | Description | |||||
10 | .11 | — | Form of Nonvested Share Agreement (Performance Bonus Award) between the Company and each of the following officers: E. Robert Roskind, T. Wilson Eglin, Richard J. Rouse and Patrick Carroll (filed as Exhibit 10.1 to the 02/06/068-K) (1, 4) | |||
10 | .12 | — | Form of Nonvested Share Agreement (Long-Term Incentive Award) between the Company and each of the following officers: E. Robert Roskind, T. Wilson Eglin, Richard J. Rouse and Patrick Carroll and (filed as Exhibit 10.2 to the 02/06/068-K) (1, 4) | |||
10 | .13 | — | Form of the Company’s Nonvested Share Agreement, dated as of December 28, 2006 (filed as Exhibit 10.2 to the 01/03/078-K) (1,4) | |||
10 | .14 | — | Form ofLock-Up and Claw-Back Agreement, dated as of December 28, 2006 (filed as Exhibit 10.4 to the 01/03/078-K)(1) | |||
10 | .15 | — | Form of 2007 Annual Long-Term Incentive Award Agreement (filed as Exhibit 10.1 to the Company’s current Report onForm 8-k filed on January 11, 2008 (1,4) | |||
10 | .16 | — | Employment Agreement between the Company and E. Robert Roskind, dated May 4, 2006 (filed as Exhibit 99.1 to the Company’s Current Report onForm 8-K filed May 5, 2006 (the “05/05/068-K”)) (1, 4) | |||
10 | .17 | — | Employment Agreement between the Company and T. Wilson Eglin, dated May 4, 2006 (filed as Exhibit 99.2 to the 05/05/068-K) (1, 4) | |||
10 | .18 | — | Employment Agreement between the Company and Richard J. Rouse, dated May 4, 2006 (filed as Exhibit 99.3 to the 05/05/068-K) (1, 4) | |||
10 | .19 | — | Employment Agreement between the Company and Patrick Carroll, dated May 4, 2006 (filed as Exhibit 99.4 to the 05/05/068-K) (1, 4) | |||
10 | .20 | — | Employment Agreement, effective as of December 31, 2006, between the Company and Michael L. Ashner (filed as Exhibit 10.16 to the 01/08/078-K) (1,4) | |||
10 | .21 | — | Waiver Letters, dated as of July 23, 2006 and delivered by each of E. Robert Roskind, Richard J. Rouse, T. Wilson Eglin and Patrick Carroll (filed as Exhibit 10.17 to the 01/08/078-K)(1) | |||
10 | .22 | — | 2007 Trustee Fees Term Sheet (detailed on the Company’s Current Report onForm 8-K filed February 12, 2007) (1, 4) | |||
10 | .23 | — | Form of Indemnification Agreement between the Company and certain officers and trustees (filed as Exhibit 10.3 to the 200210-K)(1) | |||
10 | .24 | — | Credit Agreement, dated as of June 2, 2005 (“Credit Facility”) among the Company, LCIF, LCIF II, Net 3 Acquisition L.P., jointly and severally as borrowers, certain subsidiaries of the Company, as guarantors, Wachovia Capital Markets, LLC, as lead arranger, Wachovia Bank, National Association, as agent, Key Bank, N.A., as Syndication agent, each of Sovereign Bank and PNC Bank, National Association, as co-documentation agent, and each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section 12.5(d) therein (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed June 30, 2005)(1) | |||
10 | .25 | — | First Amendment to Credit facility, dated as of June 1, 2006 (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed June 2, 2006)(1) | |||
10 | .26 | — | Second Amendment to Credit facility, dated as of December 27, 2006 (filed as Exhibit 10.1 to the 01/03/078-K)(1) | |||
10 | .27 | — | Third Amendment to Credit Agreement, dated as of December 20, 2007(filed as Exhibit 10.1 to the 12/26/078-K)(1) | |||
10 | .28 | — | Credit Agreement, dated as of June 1, 2007, among the Company, the MLP, LCIF, LCIF II and Net 3, jointly and severally as borrowers, KeyBanc Capital Markets, as lead arranger and book running manager, KeyBank National Association, as agent, and each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section 12.5.(d) therein (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on June 7, 2007 (the “06/07/20078-K”))(1) |
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Exhibit No. | Description | |||||
10 | .29 | — | Master Repurchase Agreement, dated May 24, 2006, between Bear, Stearns International Limited and 111 Debt Acquisition-Two LLC (filed as Exhibit 10.1 to Newkirk’s Current Report onForm 8-K filed May 30, 2006)(1) | |||
10 | .30 | — | Master Repurchase Agreement, dated March 30, 2006, among Column Financial Inc., 111 Debt Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk (filed as Exhibit 10.2 to Newkirk’s Current Report onForm 8-K filed April 5, 2006 (the “NKT 04/05/068-K”))(1) | |||
10 | .31 | — | Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated as of September 21, 2007, among the MLP, WRT Realty, L.P. and FUR Holdings LLC (filed as Exhibit 10.1 to the Company’s current Report onForm 8-K filed on September 24, 2007) | |||
10 | .32 | — | Amendment No. 1 to Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated as of January 7, 2008(filed as Exhibit 10.1 to the Company’s Current Report onform 8-K filed January 11, 2008)(1) | |||
10 | .33 | — | Funding Agreement, dated as of July 23, 2006, by and among LCIF, LCIF II and Net 3 Acquisition L.P. (“Net 3”) and the Company (filed as Exhibit 99.4 to the 07/24/068-K)(1) | |||
10 | .34 | — | Funding Agreement, dated as of December 31, 2006, by and among LCIF, LCIF II, Net 3, the MLP and the Company (filed as Exhibit 10.2 to the 01/08/078-K)(1) | |||
10 | .35 | — | Guaranty Agreement, effective as of December 31, 2006, between the Company and the MLP (filed as Exhibit 10.5 to the 01/08/078-K)(1) | |||
10 | .36 | — | Amended and Restated Exclusivity Services Agreement, dated as of December 31, 2006, between the Company and Michael L. Ashner (filed as Exhibit 10.1 to the 01/08/078-K)(1) | |||
10 | .37 | — | Transition Services Agreement, dated as of December 31, 2006, between the Company and First Winthrop Corporation (filed as Exhibit 10.3 to the 01/08/078-K)(1) | |||
10 | .38 | — | Acquisition Agreement, dated as of November 7, 2005, between Newkirk and First Union Real Estate Equity and Mortgage Investments (“First Union”) (filed as Exhibit 10.4 to First Union’s Current Report onForm 8-K filed on November 10, 2005)(1) | |||
10 | .39 | — | Amendment to Acquisition Agreement and Assignment and Assumption, dated as of December 31, 2006, among NKT, Winthrop Realty Trust and the Company (filed as Exhibit 10.7 to the 01/08/078-K)(1) | |||
10 | .40 | — | Letter Agreement among Newkirk, Apollo Real Estate Investment Fund III, L.P., the MLP, NKT Advisors LLC, Vornado Realty Trust, VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC and WEM Bryn Mawr Associates LLC (filed as Exhibit 10.15 to Amendment No. 5 to Newkirk Registration Statement onForm S-11/A filed October 28, 2005 (“Amendment No. 5 to NKT’sS-11”))(1) | |||
10 | .41 | — | Amendment to the Letter Agreement among Newkirk, Apollo Real Estate Investment Fund III, L.P., the MLP, NKT Advisors LLC, Vornado Realty Trust, Vornado Realty L.P., VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and WEM-Brynmawr Associates LLC (filed as Exhibit 10.25 to Amendment No. 5 to Newkirk’sS-11)(1) | |||
10 | .42 | — | Ownership Limit Waiver Agreement, dated as of December 31, 2006, between the Company and Vornado Realty, L.P. (filed as Exhibit 10.8 to the 01/08/078-K)(1) | |||
10 | .43 | — | Ownership Limit Waiver Agreement, dated as of December 31, 2006, between the Company and Apollo Real Estate Investment Fund III, L.P. (filed as Exhibit 10.9 to the 01/08/078-K)(1) | |||
10 | .44 | — | Registration Rights Agreement, dated as of December 31, 2006, between the Company and Michael L. Ashner (filed as Exhibit 10.10 to the 01/08/078-K)(1) | |||
10 | .45 | — | Registration Rights Agreement, dated as of December 31, 2006, between the Company and WEM-Brynmawr Associates LLC (filed as Exhibit 10.11 to the 01/08/078-K)(1) | |||
10 | .46 | — | Registration Rights Agreement, dated as of November 7, 2005, between Newkirk and Vornado Realty Trust (filed as Exhibit 10.4 to Newkirk’s Current Report onForm 8-K filed November 15, 2005 (“NKT’s 11/15/058-K”))(1) |
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Exhibit No. | Description | |||||
10 | .47 | — | Registration Rights Agreement, dated as of November 7, 2005, between Newkirk and Apollo Real Estate Investment Fund III, L.P. (“Apollo”) (filed as Exhibit 10.5 to NKT’s 11/15/058-K)(1) | |||
10 | .48 | — | Registration Rights Agreement, dated as of November 7, 2005, between the Company and First Union (filed as Exhibit 10.6 to NKT’s 11/15/058-K)(1) | |||
10 | .49 | — | Assignment and Assumption Agreement, effective as of December 31, 2006, among Newkirk, the Company, and Vornado Realty L.P. (filed as Exhibit 10.12 to the 01/08/078-K)(1) | |||
10 | .50 | — | Assignment and Assumption Agreement, effective as of December 31, 2006 among Newkirk, the Company, and Apollo Real Estate Investment Fund III, L.P. (filed as Exhibit 10.13 to the 01/08/078-K)(1) | |||
10 | .51 | — | Assignment and Assumption Agreement, effective as of December 31, 2006, among Newkirk, the Company, and Winthrop Realty Trust filed as Exhibit 10.14 to the 01/08/078-K)(1) | |||
10 | .52 | — | Registration Rights Agreement, dated as of January 29, 2007, among the MLP, the Company, LCIF, LCIF II, Net 3, Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for themselves and on behalf of the initial purchasers named therein (filed as Exhibit 4.3 to the 01/29/078-K)(1) | |||
10 | .53 | — | Common Share Delivery Agreement, made as of January 29, 2007, between the MLP and the Company (filed as Exhibit 10.77 to the 200610-K)(1) | |||
10 | .54 | — | Registration Rights Agreement, dated as of March 9, 2007, among the MLP, the Company, LCIF, LCIF II, Net 3, Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for themselves and on behalf of the initial purchasers named therein (filed as Exhibit 4.4 to the 03/09/078-K)(1) | |||
10 | .55 | — | Common Share Delivery Agreement, made as of January 29, 2007 between the MLP and the Company (filed as Exhibit 4.5 to the 03/09/20078-K)(1) | |||
10 | .56 | — | Property Management Agreement, made as of December 31, 2006, among the Company (Filed as Exhibit 10.15 to the 01/08/078-K)(1) | |||
10 | .57 | — | Second Amendment and Restated Limited Partnership Agreement, dated as of February 20, 2008, among LMLP GP LLC, The Lexington Master Limited Partnership and Inland American (Net Lease) Sub, LLC (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on February 21, 2008 (the “2/21/088-K”))(1) | |||
10 | .58 | — | Contribution Agreement, dated as of August 10, 2007, between The Lexington Master Limited Partnership and Net Lease Strategic Assets Fund L.P. (filed as Exhibit 10.2 to the Company’s Current Report onform 8-K filed on August 16, 2007 ( the 08/16/20078-K”))(1) | |||
10 | .59 | — | Amendment No. 1 to Contribution Agreement, dated as of December 20, 2007(filed as Exhibit 10.3 to the 12/26/078-K)(1) | |||
10 | .60 | — | Amendment No. 2 to Contribution Agreement, dated as of February 20, 2008 (filed as Exhibit 10.2 to the 02/21/088-K)(1) | |||
10 | .61 | — | Purchase and Sale Agreement, dated as of August 10, 2007, between The Lexington Master Limited Partnership and Net Lease Strategic Assets Fund L.P. (filed as Exhibit 10.3 to the 08/16/20078-K)(1) | |||
10 | .62 | — | Amendment No. 1 to Purchase and Sale Agreement, dated as of December 20, 2007 (filed as Exhibit 10.4 to the 12/26/078-K)(1) | |||
10 | .63 | — | Amendment No. 2 to Purchase and Sale Agreement, dated as of February 20, 2008 (filed as Exhibit 10.3 to the 02/20/088-K)(1) | |||
10 | .64 | — | Management Agreement, dated as of August 10, 2007, between Net Lease Strategic Assets Fund L.P. and Lexington Realty Advisors, Inc. (filed as Exhibit 10.4 to the 08/16/20078-K)(1) | |||
10 | .65 | — | Purchase Agreement, dated as of June 1, 2007, between the Company and the Common Retirement Fund of the State of New York for interests in Lexington Acquiport Company II, LLC (filed as Exhibit 10.4 to the 06/07/20078-K)(1) | |||
10 | .66 | — | Partial Redemption Agreement, dated as of June 5, 2007, between Lexington/Lion Venture L.P., CLPF-LXP/LV, L.P. and the Company (filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on June 28, 2007 (the “06/28/20078-K”)(1) |
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Exhibit No. | Description | |||||
10 | .67 | — | Contribution Agreement, dated as of June 5, 2007, between the Company and the MLP (filed as Exhibit 10.2 to the 06/28/20078-K)(1) | |||
10 | .68 | — | Redemption Agreement, dated as of June 5, 2007, between Lexington/Lion Venture L.P., CLPF-LXP/LV, L.P. and CLPF-LXP/Lion Venture GP, LLC (filed as Exhibit 10.3 to the 06/28/20078-K)(1) | |||
10 | .69 | — | Form of Contribution Agreement dated as of December 20, 2007 (filed as Exhibit 10.5 to the 12/26/07 8-K)(1) | |||
12 | — | Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends(2) | ||||
14 | .1 | — | Amended and Restated Code of Business Conduct and Ethics(2) | |||
21 | — | List of Subsidiaries(2) | ||||
23 | — | Consent of KPMG LLP(2) | ||||
31 | .1 | — | Certification of Chief Executive Officer pursuant torule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(3) | |||
31 | .2 | — | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3) | |||
32 | .1 | — | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3) | |||
32 | .2 | — | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3) |
(1) | Incorporated by reference. | |
(2) | Filed herewith. | |
(3) | Furnished herewith. | |
(4) | Management Contract or compensatory plan or arrangement. |
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By: | /s/ T. Wilson Eglin |
Signature | Title | |||
/s/ Michael L. Ashner Michael L. Ashner | Chairman of the Board of Trustees And Director of Strategic Acquisitions | |||
/s/ E. Robert Roskind E. Robert Roskind | Co-Vice Chairman of the Board of Trustees | |||
/s/ Richard J. Rouse Richard J. Rouse | Co-Vice Chairman of the Board of Trustees and Chief Investment Officer | |||
/s/ T. Wilson Eglin T. Wilson Eglin | Chief Executive Officer, President, Chief Operating Officer and Trustee | |||
/s/ Patrick Carroll Patrick Carroll | Chief Financial Officer, Treasurer and Executive Vice President | |||
/s/ Paul R. Wood Paul R. Wood | Vice President, Chief Accounting Officer and Secretary | |||
/s/ Clifford Broser Clifford Broser | Trustee | |||
/s/ Geoffrey Dohrmann Geoffrey Dohrmann | Trustee |
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Signature | Title | |||
/s/ Carl D. Glickman Carl D. Glickman | Trustee | |||
/s/ James Grosfeld James Grosfeld | Trustee | |||
/s/ Harold First Harold First | Trustee | |||
/s/ Richard Frary Richard Frary | Trustee | |||
/s/ Kevin W. Lynch Kevin W. Lynch | Trustee |
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AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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SECURITIES AND EXCHANGE COMMISSION
þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Maryland | 13-3717318 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Penn Plaza — Suite 4015 New York, NY | 10119 | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
Assets: | ||||||||
Real estate, at cost | $ | 3,836,321 | $ | 4,109,097 | ||||
Less: accumulated depreciation and amortization | 439,531 | 379,831 | ||||||
3,396,790 | 3,729,266 | |||||||
Properties held for sale — discontinued operations | 8,408 | 150,907 | ||||||
Intangible assets, net | 375,212 | 516,698 | ||||||
Cash and cash equivalents | 108,039 | 412,106 | ||||||
Restricted cash | 27,481 | 41,026 | ||||||
Investment in and advances to non-consolidated entities | 205,021 | 226,476 | ||||||
Deferred expenses, net | 37,329 | 42,040 | ||||||
Notes receivable | 68,631 | 69,775 | ||||||
Rent receivable — current | 16,630 | 25,289 | ||||||
Rent receivable — deferred | 16,967 | 15,303 | ||||||
Other assets | 33,824 | 36,277 | ||||||
$ | 4,294,332 | $ | 5,265,163 | |||||
Liabilities and Shareholders’ Equity: | ||||||||
Liabilities: | ||||||||
Mortgages and notes payable | $ | 2,052,955 | $ | 2,312,422 | ||||
Exchangeable notes payable | 299,500 | 450,000 | ||||||
Trust preferred securities | 129,120 | 200,000 | ||||||
Contract rights payable | 14,435 | 13,444 | ||||||
Dividends payable | 28,297 | 158,168 | ||||||
Liabilities — discontinued operations | 902 | 119,093 | ||||||
Accounts payable and other liabilities | 33,974 | 49,442 | ||||||
Accrued interest payable | 10,822 | 23,507 | ||||||
Deferred revenue — below market leases, net | 155,134 | 217,389 | ||||||
Prepaid rent | 20,352 | 16,764 | ||||||
2,745,491 | 3,560,229 | |||||||
Minority interests | 624,839 | 765,863 | ||||||
3,370,330 | 4,326,092 | |||||||
Commitments and contingencies (notes 6, 7, 12, 13 and 15) | ||||||||
Shareholders’ equity: | ||||||||
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares, | ||||||||
Series B Cumulative Redeemable Preferred, liquidation preference $79,000; 3,160,000 shares issued and outstanding | 76,315 | 76,315 | ||||||
Series C Cumulative Convertible Preferred, liquidation preference $129,915 and $155,000, respectively; 2,598,300 and 3,100,000 shares issued and outstanding in 2008 and 2007, respectively | 126,217 | 150,589 | ||||||
Series D Cumulative Redeemable Preferred, liquidation preference $155,000; 6,200,000 shares issued and outstanding | 149,774 | 149,774 | ||||||
Special Voting Preferred Share, par value $0.0001 per share; 1 share authorized, issued and outstanding | — | — | ||||||
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 65,666,569 and 61,064,334 shares issued and outstanding in 2008 and 2007, respectively | 6 | 6 | ||||||
Additional paid-in-capital | 1,097,176 | 1,033,332 | ||||||
Accumulated distributions in excess of net income | (525,788 | ) | (468,167 | ) | ||||
Accumulated other comprehensive income (loss) | 302 | (2,778 | ) | |||||
Total shareholders’ equity | 924,002 | 939,071 | ||||||
$ | 4,294,332 | $ | 5,265,163 | |||||
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Gross revenues: | ||||||||||||||||
Rental | $ | 94,146 | $ | 105,974 | $ | 308,382 | $ | 269,803 | ||||||||
Advisory and incentive fees | 396 | 239 | 1,072 | 12,182 | ||||||||||||
Tenant reimbursements | 10,927 | 10,057 | 31,178 | 22,114 | ||||||||||||
Total gross revenues | 105,469 | 116,270 | 340,632 | 304,099 | ||||||||||||
Expense applicable to revenues: | ||||||||||||||||
Depreciation and amortization | (51,197 | ) | (63,843 | ) | (191,596 | ) | (164,785 | ) | ||||||||
Property operating | (21,733 | ) | (17,921 | ) | (60,804 | ) | (41,982 | ) | ||||||||
General and administrative | (7,117 | ) | (7,530 | ) | (25,468 | ) | (28,673 | ) | ||||||||
Non-operating income | 1,802 | 2,633 | 22,599 | 7,502 | ||||||||||||
Interest and amortization expense | (37,279 | ) | (48,129 | ) | (120,519 | ) | (114,747 | ) | ||||||||
Debt satisfaction gains, net | 2,309 | — | 39,020 | — | ||||||||||||
Gains on sale-affiliates | — | — | 31,806 | — | ||||||||||||
Income (loss) before provision for income taxes, minority interests, equity in earnings (losses) of non-consolidated entities and discontinued operations | (7,746 | ) | (18,520 | ) | 35,670 | (38,586 | ) | |||||||||
Provision for income taxes | (662 | ) | (369 | ) | (2,636 | ) | (2,547 | ) | ||||||||
Minority interests share of (income) losses | 2,823 | 3,336 | 5,372 | (3,546 | ) | |||||||||||
Equity in earnings (losses) of non-consolidated entities | (1,525 | ) | 4,054 | (23,171 | ) | 45,951 | ||||||||||
Income (loss) from continuing operations | (7,110 | ) | (11,499 | ) | 15,235 | 1,272 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from discontinued operations | 26 | 8,441 | 1,628 | 25,720 | ||||||||||||
Provision for income taxes | (181 | ) | (44 | ) | (330 | ) | (2,721 | ) | ||||||||
Debt satisfaction charges | (120 | ) | (3,596 | ) | (433 | ) | (3,685 | ) | ||||||||
Gains on sales of properties | 7,374 | 26,980 | 11,986 | 39,808 | ||||||||||||
Impairment charges | (1,063 | ) | — | (3,757 | ) | — | ||||||||||
Minority interests share of income | (2,643 | ) | (5,819 | ) | (4,509 | ) | (14,777 | ) | ||||||||
Total discontinued operations | 3,393 | 25,962 | 4,585 | 44,345 | ||||||||||||
Net income (loss) | (3,717 | ) | 14,463 | 19,820 | 45,617 | |||||||||||
Dividends attributable to preferred shares — Series B | (1,590 | ) | (1,590 | ) | (4,770 | ) | (4,770 | ) | ||||||||
Dividends attributable to preferred shares — Series C | (2,110 | ) | (2,519 | ) | (6,740 | ) | (7,556 | ) | ||||||||
Dividends attributable to preferred shares — Series D | (2,926 | ) | (2,925 | ) | (8,777 | ) | (7,372 | ) | ||||||||
Redemption discount — Series C | — | — | 5,678 | — | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (10,343 | ) | $ | 7,429 | $ | 5,211 | $ | 25,919 | |||||||
Income (loss) per common share—basic: | ||||||||||||||||
Income (loss) from continuing operations, after preferred dividends | $ | (0.21 | ) | $ | (0.29 | ) | $ | 0.01 | $ | (0.28 | ) | |||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (0.16 | ) | $ | 0.12 | $ | 0.08 | $ | 0.39 | |||||||
Weighted average common shares outstanding—basic | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Income (loss) per common share—diluted: | ||||||||||||||||
Income (loss) from continuing operations, after preferred dividends | $ | (0.21 | ) | $ | (0.29 | ) | $ | (0.14 | ) | $ | (0.28 | ) | ||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (0.16 | ) | $ | 0.12 | $ | (0.07 | ) | $ | 0.39 | ||||||
Weighted average common shares outstanding—diluted | 64,433,457 | 63,458,167 | 101,789,804 | 65,735,321 | ||||||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited and in thousands)
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net income (loss) | $ | (3,717 | ) | $ | 14,463 | $ | 19,820 | $ | 45,617 | |||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in unrealized gain (loss) in marketable equity securities | — | (1,140 | ) | 107 | (1,661 | ) | ||||||||||
Change in unrealized gain (loss) on foreign currency translation | (299 | ) | 249 | 3 | 290 | |||||||||||
Change in unrealized gain (loss) on interest rate swap, net of minority interest share | (395 | ) | — | 900 | (357 | ) | ||||||||||
Change in unrealized loss from non-consolidated entities, net of minority interest share | (431 | ) | (2,443 | ) | (3,424 | ) | (2,443 | ) | ||||||||
Less reclassification adjustment from losses included in net income (loss) | — | — | 5,494 | 357 | ||||||||||||
Other comprehensive income (loss) | (1,125 | ) | (3,334 | ) | 3,080 | (3,814 | ) | |||||||||
Comprehensive income (loss) | $ | (4,842 | ) | $ | 11,129 | $ | 22,900 | $ | 41,803 | |||||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
2008 | 2007 | ||||||||
Net cash provided by operating activities: | $ | 187,412 | $ | 235,893 | |||||
Cash flows from investing activities: | |||||||||
Acquisition of interest in certain non-consolidated entities | — | (366,614 | ) | ||||||
Investment in real estate, including intangibles | (83,345 | ) | (140,559 | ) | |||||
Acquisitions of additional interests in LSAC | — | (24,199 | ) | ||||||
Net proceeds from sale of properties — affiliates | 95,576 | — | |||||||
Purchase of minority interests | (5,311 | ) | — | ||||||
Net proceeds from sale/transfer of properties | 189,476 | 225,915 | |||||||
Proceeds from the sale of marketable equity securities | 2,506 | 27,698 | |||||||
Real estate deposits | 223 | (722 | ) | ||||||
Principal payments received on loans receivable | 1,480 | 8,429 | |||||||
Issuance of loans receivable | (1,000 | ) | — | ||||||
Distributions from non-consolidated entities in excess of accumulated earnings | 25,090 | 5,032 | |||||||
Investment in and advances to/from non-consolidated entities | (12,953 | ) | (71,308 | ) | |||||
Investment in marketable equity securities | — | (723 | ) | ||||||
Increase in deferred leasing costs | (10,142 | ) | (3,823 | ) | |||||
(Increase) decrease in escrow deposits | (849 | ) | 24,455 | ||||||
Net cash provided by (used in) investing activities | 200,751 | (316,419 | ) | ||||||
Cash flows from financing activities: | |||||||||
Dividends to common and preferred shareholders | (213,010 | ) | (106,374 | ) | |||||
Repurchase of exchangeable notes | (117,758 | ) | — | ||||||
Repurchase of trust preferred securities | (44,561 | ) | — | ||||||
Principal payments on debt, excluding normal amortization | (205,215 | ) | (650,202 | ) | |||||
Dividend reinvestment plan proceeds | — | 5,652 | |||||||
Principal amortization payments | (56,298 | ) | (63,553 | ) | |||||
Proceeds of mortgages and notes payable | — | 246,965 | |||||||
Proceeds from term loans | 70,000 | 225,000 | |||||||
Proceeds from trust preferred notes | — | 200,000 | |||||||
Proceeds from exchangeable notes | — | 450,000 | |||||||
Increase in deferred financing costs | (2,851 | ) | (18,591 | ) | |||||
Swap termination costs | (205 | ) | — | ||||||
Contributions from minority partners | — | 79 | |||||||
Cash distributions to minority partners | (145,185 | ) | (67,522 | ) | |||||
Proceeds from the sale of common and preferred shares, net | 47,120 | 149,898 | |||||||
Repurchase of common and preferred shares | (23,792 | ) | (143,709 | ) | |||||
Partnership units repurchased | (475 | ) | (3,602 | ) | |||||
Net cash (used in) provided by financing activities | (692,230 | ) | 224,041 | ||||||
Cash acquired in co-investment program acquisition | — | 20,867 | |||||||
Cash associated with sale of interest in entity | — | (1,442 | ) | ||||||
Change in cash and cash equivalents | (304,067 | ) | 162,940 | ||||||
Cash and cash equivalents, at beginning of period | 412,106 | 97,547 | |||||||
Cash and cash equivalents, at end of period | $ | 108,039 | $ | 260,487 | |||||
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and dollars in thousands, except per share/unit data)
(1) | The Company | |
Lexington Realty Trust (the “Company”) is a self-managed and self-administered Maryland statutory real estate investment trust (“REIT”) that acquires, owns, and manages a geographically diversified portfolio of predominately net leased office, industrial and retail properties and provides investment advisory and asset management services to investors in the net lease area. As of September 30, 2008, the Company owned or had interests in approximately 240 consolidated properties in 42 states and the Netherlands. The real properties owned by the Company are generally subject to net leases to tenants, which are generally characterized as leases in which the tenant pays all or substantially all of the cost and cost increases for real estate taxes, capital expenditures, insurance, utilities and ordinary maintenance of the property. However, certain leases provide that the Company is responsible for certain operating expenses. | ||
The Company believes it has qualified 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 will be subject to federal income taxes on the income from these activities. | ||
The Company conducts its operations either directly or through (1) one of four operating partnerships in which the Company is the sole unit holder of the general partner and the sole unit holder of a limited partner that holds a majority of the limited partnership interests (“OP Units”): The Lexington Master Limited Partnership (“MLP”), Lepercq Corporate Income Fund L.P. (“LCIF”), Lepercq Corporate Income Fund II L.P. (“LCIF II”), and Net 3 Acquisition L.P. (“Net 3”), and (2) Lexington Realty Advisors, Inc. (“LRA”), a wholly-owned TRS. | ||
During the nine months ended September 30, 2008, the Company repurchased approximately 1.2 million common shares/OP Units at an average price of approximately $14.51 per common share/OP Unit aggregating $16.7 million, in the open market and through private transactions with third parties. As of September 30, 2008, approximately 4.6 million common shares/OP Units were eligible for repurchase under the current authorization adopted by the Company’s Board of Trustees. | ||
The unaudited condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present fairly the financial condition and results of operations for the interim periods. For a more complete understanding of the Company’s operations and financial position, reference is made to the consolidated financial statements (including the notes thereto) previously filed with the Securities and Exchange Commission on February 29, 2008 with the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. | ||
(2) | Summary of Significant Accounting Policies | |
Basis of Presentation and Consolidation.The Company’s unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting. The financial statements reflect the accounts of the Company and its consolidated subsidiaries, including LCIF, LCIF II, Net 3, MLP, LRA and Six Penn Center L.P. Lexington Contributions, Inc. (“LCI”) and Lexington Strategic Asset Corp. (“LSAC”), each a formerly majority owned TRS, were merged with and into the Company as of March 25, 2008 and June 30, 2007, respectively. |
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Recently Issued Accounting Standards.In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, as amended (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. The provisions of SFAS 157 were effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years, except for those relating to non-financial assets and liabilities, which are deferred for one additional year, and a scope exception for purposes of fair value measurements affecting lease classification or measurement under SFAS 13 and related standards. The adoption of the effective portions of this statement did not have a material impact on the Company’s financial position, results of operations or cash flows. The Company is evaluating the effect of implementing this statement as it relates to non-financial assets and liabilities, although the statement does not require any new fair value measurements or remeasurements of previously reported fair values. | ||
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities — Including an Amendment of FASB Statement No. 115 (“SFAS 159”). SFAS 159 permits entities to choose to measure many financial assets and liabilities and certain other items at fair value. An enterprise will report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. The fair value option may be applied on an instrument-by-instrument basis, with several exceptions, such as investments accounted for by the equity method, and once elected, the option is irrevocable unless a new election date occurs. The fair value option can be applied only to entire instruments and not to portions thereof. SFAS 159 was effective as of the beginning of an entity’s first fiscal year beginning after November 15, 2007. The Company did not elect to adopt the optional fair value provisions of this pronouncement and thus it did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | ||
In December 2007, the FASB issued SFAS No. 141R (Revised 2007), Business Combinations (“SFAS 141R”). SFAS 141R requires most identifiable assets, liabilities, noncontrolling interests, and goodwill acquired in a business combination to be recorded at “full fair value”. SFAS 141R is effective for acquisitions in periods beginning on or after December 15, 2008. | ||
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements- an amendment of ARB 51 (“SFAS 160”). SFAS 160 will require noncontrolling interests (previously referred to as minority interests) to be treated as a separate component of equity, not as a liability or other item outside of permanent equity. SFAS 160 is effective for periods beginning on or after December 15, 2008. The adoption of this statement will result in the minority interest currently classified in the “mezzanine” section of the balance sheet to be reclassified as a component of shareholders’ equity, and minority interests’ share of income or loss will no longer be recorded in the statement of operations. | ||
In December 2007, the FASB ratified EITF consensus on EITF 07-06, Accounting for the Sale of Real Estate Subject to the Requirements of FASB Statement No. 66, Accounting for Sales of Real Estate, When the Agreement Includes a Buy-Sell Clause (“EITF 07-06”). EITF 07-06 clarifies that a buy-sell clause in a sale of real estate that otherwise qualifies for partial sale accounting does not by itself constitute a form of continuing involvement that would preclude partial sale accounting under SFAS No. 66. EITF 07-06 was effective for fiscal years beginning after December 15, 2007. The adoption of EITF 07-06 did not have a material impact on the Company’s financial position, results of operations or cash flows. | ||
In June 2008, the FASB issued FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (“FSP 03-6-1”). FSP 03-6-1 requires unvested share based payment awards that contain nonforfeitable rights to dividends or dividend equivalents to be treated as participating securities as defined in EITF Issue No. 03-6, “Participating Securities and the Two-Class Method under FASB Statement No. 128,” and, therefore, included in the earnings allocation in computing earnings per share under the two-class method described in FASB Statement No. 128, Earnings per Share. FSP 03-06-1 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those years. Management is currently determining the impact the adoption of FSP 03-6-1 will have on the Company’s financial statements. | ||
In June 2007, the Securities and Exchange staff announced revisions to EITF Topic D-98 related to the release of SFAS 159. The Securities and Exchange Commission announced that it will no longer accept liability classification |
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for financial instruments that meet the conditions for temporary equity classification under ASR 268, Presentation in Financial Statements of “Redeemable Preferred Stocks” and EITF Topic No. D-98. As a consequence, the fair value option under SFAS 159 may not be applied to any financial instrument (or host contract) that qualifies as temporary equity. This is effective for all instruments that are entered into, modified, or otherwise subject to a remeasurement event in the first fiscal quarter beginning after September 15, 2007. As the Company did not adopt the fair value provisions of SFAS 159, the adoption of this announcement did not have a material impact on the Company’s financial position, results of operations or cash flows. |
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities- an amendment of SFAS No.133 (“SFAS 161”). SFAS 161, which amends SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, requires companies with derivative instruments to disclose information about how and why a company uses derivative instruments, how derivative instruments and related hedged items are accounted for under SFAS No. 133, and how derivative instruments and related hedged items affect a company’s financial position, financial performance and cash flows. The required disclosures include the fair value of derivative instruments and their gains or losses in tabular format, information about credit-risk-related contingent features in derivative agreements, counterparty, credit risk, and the company’s strategies and objectives for using derivative instruments. SFAS 161 is effective prospectively for periods beginning on or after November 15, 2008. The adoption of this statement is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | ||
In May 2008, the FASB issued FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement) (“FSP 14-1”). FSP 14-1 requires issuers of convertible debt that may be settled wholly or partly in cash to account for the debt and equity components separately. FSP 14-1 is effective for financial statements issued for fiscal years beginning after December 15, 2008 and interim periods. Management is currently determining the impact the adoption of FSP 14-1 will have on the Company’s financial statements. | ||
Use of Estimates.Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these unaudited condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles. 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 impairment of long-lived assets and equity method investments, valuation and impairment of assets held by equity method investees, valuation of derivative financial instruments, and the useful lives of long-lived assets. Actual results could differ from those estimates. | ||
Revenue Recognition.The Company recognizes revenue in accordance with Statement of Financial Accounting Standards No. 13, Accounting for Leases, as amended (“SFAS 13”). SFAS 13 requires that revenue be recognized on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. In those instances in which the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination payments as a component of rental revenue in the period received, provided that there are no further obligations under the lease. All above market lease assets, below market lease liabilities and deferred rent assets or liabilities for terminated leases are charged against or credited to rental revenue in the period the lease is terminated. All other capitalized lease costs and lease intangibles are accelerated via amortization expense to the date of termination. | ||
Impairment of Real Estate, Loans Receivable and Equity-Method Investments.The Company evaluates the carrying value of all tangible and intangible assets held, including its loans receivable and its investments in non-consolidated entities (such as Lex-Win Concord, LLC), when a triggering event under Statement of Financial Accounting |
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Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, as amended (“SFAS 144”) has occurred to determine if an impairment has occurred which would require the recognition of a loss. The evaluation includes estimating and reviewing anticipated future cash flows to be derived from the asset. However, estimating future cash flows is highly subjective and such estimates could differ materially from actual results. |
Derivative Financial Instruments. The Company accounts for its interest rate swap agreements in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (“SFAS 133”). In accordance with SFAS 133, these agreements are carried on the balance sheet at their respective fair values, as an asset, if fair value is positive, or as a liability, if fair value is negative. The interest rate swap is designated as a cash flow hedge whereby the effective portion of the swap’s change in fair value is reported as a component of other comprehensive income (loss); the ineffective portion, if any, is recognized in earnings as an increase or decrease to interest expense. | ||
Cash and Cash Equivalents.The Company considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents. | ||
Restricted Cash.Restricted cash is comprised primarily of cash balances held in escrow with lenders and amounts deposited with qualified intermediaries to complete potential tax-free exchanges. | ||
Environmental Matters.Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines and penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although the Company’s tenants are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, the Company may be required to satisfy any such obligations. In addition, the Company as the owner of such properties may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of September 30, 2008, the Company was not aware of any environmental matter relating to any of its assets that could have a material impact on the financial statements. | ||
Reclassifications.Certain amounts included in the 2007 financial statements have been reclassified to conform to the 2008 presentation. |
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(3) | Earnings per Share | |
The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2008 and 2007: |
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
BASIC | ||||||||||||||||
Income (loss) from continuing operations | $ | (7,110 | ) | $ | (11,499 | ) | $ | 15,235 | $ | 1,272 | ||||||
Less preferred dividends | (6,626 | ) | (7,034 | ) | (14,609 | ) | (19,698 | ) | ||||||||
Income (loss) allocable to common shareholders from continuing operations | (13,736 | ) | (18,533 | ) | 626 | (18,426 | ) | |||||||||
Total income from discontinued operations | 3,393 | 25,962 | 4,585 | 44,345 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (10,343 | ) | $ | 7,429 | $ | 5,211 | $ | 25,919 | |||||||
Weighted average number of common shares outstanding -basic | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Income (loss) per common share — basic: | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.21 | ) | $ | (0.29 | ) | $ | 0.01 | $ | (0.28 | ) | |||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) | $ | (0.16 | ) | $ | 0.12 | $ | 0.08 | $ | 0.39 | |||||||
DILUTED | ||||||||||||||||
Income (loss) allocable to common shareholders from continuing operations — basic | $ | (13,736 | ) | $ | (18,533 | ) | $ | 626 | $ | (18,426 | ) | |||||
Incremental loss attributed to assumed conversion of dilutive securities | — | — | (14,728 | ) | — | |||||||||||
Income (loss) allocable to common shareholders from continuing operations | (13,736 | ) | (18,533 | ) | (14,102 | ) | (18,426 | ) | ||||||||
Total income from discontinued operations | 3,393 | 25,962 | 7,002 | 44,345 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (10,343 | ) | $ | 7,429 | $ | (7,100 | ) | $ | 25,919 | ||||||
Weighted average number of common shares used in calculation of basic earnings per share | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Add incremental shares representing: | ||||||||||||||||
Shares issuable upon exercise of employee share options/non-vested shares | — | — | — | — | ||||||||||||
Shares issuable upon conversion of dilutive securities | — | — | 40,304,527 | — | ||||||||||||
Weighted average number of common shares outstanding — diluted | 64,433,457 | 63,458,167 | 101,789,804 | 65,735,321 | ||||||||||||
Income (loss) per common share — diluted: | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.21 | ) | $ | (0.29 | ) | $ | (0.14 | ) | $ | (0.28 | ) | ||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) | $ | (0.16 | ) | $ | 0.12 | $ | (0.07 | ) | $ | 0.39 | ||||||
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During the second quarter of 2008, the Company redeemed 501,700 Series C Preferred shares at a $5,678 discount to their historical cost basis. In accordance with EITF D-42, The Effect on the Calculation of Earnings Per Share for the Redemption or Induced Conversion of Preferred Stock, this discount constitutes a deemed negative dividend, offsetting other dividends, and is accretive to the common shareholders and, accordingly, it has been added to net income to arrive at net income allocable to common shareholders for the nine month period ended September 30, 2008. | ||
In accordance with EITF D-53, Computation of Earnings Per Share for a Period That Includes a Redemption or an Induced Conversion of a Portion of a Class of Preferred Stock, for purposes of computing diluted earnings per share for the nine month period ended September 30, 2008, the discount on redemption has been subtracted from net income allocable to common shareholders in the incremental loss attributed to assumed conversion of dilutive securities, and the shares have been assumed redeemed for common shares at the beginning of the period. The Company determined that the Series C Preferred shares that were not redeemed were not dilutive to basic earnings per share. | ||
All incremental shares are considered anti-dilutive for periods that have a loss from continuing operations applicable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods. | ||
(4) | Investments in Real Estate and Intangibles | |
During the nine months ended September 30, 2008, the Company acquired two properties for an aggregate capitalized cost of $56,131 and allocated $6,991 of the purchase price to intangible assets. During the nine months ended September 30, 2007, the Company acquired seven properties from unrelated third parties for an aggregate capitalized cost of $117,760 and allocated $19,083 of the purchase price to intangible assets. | ||
During the nine months ended September 30, 2007, the Company acquired additional shares in LSAC for $16,781. Also during the nine months ended September 30, 2007, LSAC paid $7,418 to repurchase its common stock in a tender offer. On June 30, 2007, LSAC was merged with and into the Company and ceased to exist. | ||
During the nine months ended September 30, 2007, the Company, including through its consolidated subsidiaries, completed transactions with its then joint venture partners as summarized as follows: | ||
Triple Net Investment Company LLC (“TNI”) | ||
On May 1, 2007, the Company entered into a purchase agreement with the Utah State Retirement Investment Fund, its partner in one of its co-investment programs, TNI, and acquired the 70% of TNI it did not already own through a cash payment of approximately $82,600 and the assumption of approximately $156,600 in non-recourse mortgage debt. Accordingly, the Company became the sole owner of the 15 primarily single tenant net leased real estate properties owned by TNI. The debt assumed by the Company bears stated interest at rates ranging from 4.9% to 9.4% with a weighted-average stated rate of 5.9% and matures at various dates ranging from 2010 to 2021. In connection with this transaction, the Company recognized income of $2,064 from incentive fees in accordance with the TNI partnership agreement. | ||
Lexington Acquiport Company LLC (“LAC”) and Lexington Acquiport Company II LLC (“LAC II”) | ||
On June 1, 2007, the Company entered into purchase agreements with the Common Retirement Fund of the State of New York, its 66.7% partner in one of its co-investment programs, LAC, and 75% partner in another of its co-investment programs, LAC II, and acquired the interests in LAC and LAC II it did not already own through a cash payment of approximately $277,400 and the assumption of approximately $515,000 in non-recourse mortgage debt. Accordingly, the Company became the sole owner of the 26 primarily single tenant net leased real estate properties owned collectively by LAC and LAC II. The debt assumed by the Company bears interest at stated rates ranging from 5.0% to 8.2% with a weighted-average stated rate of 6.2% and matures at various dates ranging from 2009 to 2021. |
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Lexington/Lion Venture L.P. (“LION”) | ||
Effective June 1, 2007, the Company and its 70% partner in LION agreed to terminate LION and distribute the 17 primarily net lease properties owned by LION. Accordingly, the Company was distributed seven of the properties, which are subject to non-recourse mortgage debt of approximately $112,500. The debt assumed by the Company bears interest at stated rates ranging from 4.8% to 6.2% with a weighted-average stated rate of 5.4% and matures at various dates ranging from 2012 to 2016. In addition, the Company paid approximately $6,600 of additional consideration to its former partner in connection with the termination. In connection with this transaction, the Company recognized income of $8,530 from incentive fees in accordance with the LION partnership agreement and was allocated equity in earnings of $34,164 related to its share of gains relating to the 10 properties transferred to the partner. | ||
(5) | Discontinued Operations | |
During the nine months ended September 30, 2008, the Company sold 23 properties to unrelated third parties for aggregate sales proceeds of $189,476 which resulted in an aggregate gain of $11,986. During the nine months ended September 30, 2007, the Company sold 33 properties to unrelated third parties for aggregate sales proceeds of $225,915 which resulted in a gain of $39,808. As of September 30, 2008, the Company had three properties held for sale. | ||
The following presents the operating results for the properties sold and properties held for sale for the applicable periods: |
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Rental revenues | $ | 269 | $ | 14,810 | $ | 5,028 | $ | 51,480 | ||||||||
Pre-tax income, including gains on sale | $ | 3,574 | $ | 26,006 | $ | 4,915 | $ | 47,066 |
(6) | Investment in Non-Consolidated Entities | |
Concord Debt Holdings LLC (“Concord”) | ||
The MLP and WRT Realty L.P. (“Winthrop”) have a co-investment program to acquire and originate loans secured, directly and indirectly, by real estate assets through Concord. The Company’s former Executive Chairman and Director of Strategic Acquisitions is also the Chief Executive Officer of the parent of Winthrop. The co-investment program was equally owned and controlled by the MLP and Winthrop. The MLP and Winthrop have invested $162,500 each in Concord. All profits, losses and cash flows of Concord were distributed in accordance with the respective membership interests. | ||
During the third quarter of 2008, the MLP and Winthrop formed a jointly-owned subsidiary, Lex-Win Concord LLC (“Lex-Win Concord”), and the MLP and Winthrop each contributed to Lex-Win Concord all of their right, title, interest and obligations in Concord and WRP Management LLC, the entity that provides collateral management and asset management services to Concord and its existing CDO. Immediately following the contribution, a subsidiary of Inland American Real Estate Trust Inc. (“Inland Concord”) entered into an agreement to contribute up to $100,000 in redeemable preferred membership interest over the next 18 months to Concord, with an initial investment of $20,000. Lex-Win Concord, as managing member, and Inland Concord, as a preferred member, entered into the Second Amended and Restated Limited Liability Company Agreement of Concord. Under the terms of the agreement, additional contributions by Inland Concord are to be used primarily for the origination and acquisition of additional debt instruments including whole loans, B notes and mezzanine loans. In addition, provided that certain terms and conditions are satisfied, including payment to Inland Concord of a 10% priority return, both the MLP and Winthrop may elect to reduce their aggregate capital investment in Concord to $200,000 through distributions of principal payments from the retirement of existing loans and bonds in Concord’s current portfolio. In addition, Lex-Win Concord is obligated to make |
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additional capital contributions to Concord of up to $75,000 only if such capital contributions are necessary under certain circumstances. |
As of | As of | |||||||
9/30/08 | 12/31/07 | |||||||
Investments | $ | 1,017,989 | $ | 1,140,108 | ||||
Cash, including restricted cash | 18,690 | 19,094 | ||||||
Warehouse debt facilities obligations | 393,541 | 472,324 | ||||||
Collateralized debt obligations | 351,525 | 376,650 | ||||||
Preferred equity | 20,000 | — | ||||||
Members’ equity | 270,920 | 310,922 |
Nine Months ended September 30, | ||||||||
2008 | 2007 | |||||||
Interest and other income | $ | 55,396 | $ | 48,141 | ||||
Interest expense | (27,062 | ) | (29,510 | ) | ||||
Impairment charges | (65,221 | ) | — | |||||
Gain on debt repayment | 12,698 | — | ||||||
Other expenses and minority interests | (3,716 | ) | (3,564 | ) | ||||
Net income (loss) | $ | (27,905 | ) | $ | 15,067 | |||
Other comprehensive income (loss) | 6,929 | (11,666 | ) | |||||
Comprehensive income (loss) | $ | (20,976 | ) | $ | 3,401 | |||
Three Months ended September 30, | ||||||||
2008 | 2007 | |||||||
Interest and other income | $ | 18,187 | $ | 19,937 | ||||
Interest expense | (8,176 | ) | (12,901 | ) | ||||
Impairment charges | (7,205 | ) | — | |||||
Gain on debt repayment | 4,996 | — | ||||||
Other expenses and minority interests | (1,949 | ) | (879 | ) | ||||
Net income | $ | 5,853 | $ | 6,157 | ||||
Other comprehensive loss | (1,640 | ) | (11,666 | ) | ||||
Comprehensive income (loss) | $ | 4,213 | $ | (5,509 | ) | |||
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�� | As of | As of | ||||||
9/30/08 | 12/31/07 | |||||||
Real estate, including intangibles | $ | 729,271 | $ | 405,834 | ||||
Cash, including restricted cash | 6,491 | 2,230 | ||||||
Mortgages payable | 321,842 | 171,556 |
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For the Nine Months | ||||
ended 9/30/08 | ||||
Total gross revenues | $ | 35,364 | ||
Depreciation and amortization | (22,747 | ) | ||
Interest expense | (12,598 | ) | ||
Other expenses, net | (1,852 | ) | ||
Net loss | $ | (1,833 | ) | |
During the nine months ended September 30, 2008, the Company recognized ($11,861) equity in losses relating to NLS based upon the hypothetical liquidation method. The difference between the assets contributed to NLS and the fair value of the MLP’s equity investment in NLS is $94,723 and is accreted into income. During the nine months ended September 30, 2008, the Company recorded earnings of $2,304 related to this difference, which is included in equity in earnings (losses) of non-consolidated entities on the accompanying statement of operations. | ||
During the nine months ended September 30, 2008, the MLP incurred transaction costs relating to the formation of NLS of $1,138 which are included in general and administrative expenses in the consolidated statements of operations. | ||
LEX-Win Acquisition LLC (“Lex-Win”) | ||
During 2007, Lex-Win, an entity in which the MLP holds a 28% ownership interest, acquired 3.9 million shares of common stock in Piedmont Office Realty Trust, Inc. (formerly known as Wells Real Estate Investment Trust, Inc.), (“Wells”), a non-exchange traded entity, at a price per share of $9.30 in a tender offer. During 2007, the MLP funded $12,542 relating to this tender and received $1,890 relating to an adjustment of the number of shares tendered. Winthrop also holds a 28% interest in Lex-Win. The Company’s former Executive Chairman and Director of Strategic Acquisitions is the Chief Executive Officer of the parent of Winthrop. Profits, losses and cash flows of Lex-Win are allocated in accordance with the membership interests. During the three and nine months ended September 30, 2008, Lex-Win incurred losses of $247 and $3,847, respectively relating to its investment in Wells and sold its entire interest in Wells for $32,289. | ||
Other Equity Method Investment Limited Partnerships | ||
The Company is a partner in eight partnerships with ownership percentages ranging between 26% and 40%, which own net leased properties. All profits, losses and cash flows are distributed in accordance with the respective partnership agreements. As of September 30, 2008, the partnerships have $93,431 in mortgage debt (the Company’s proportionate share is $29,557) with interest rates ranging from 5.2% to 15.0% with a weighted average rate of 9.4% and maturity dates ranging from 2009 to 2018. | ||
(7) | Mortgages and Notes Payable | |
During the nine months ended September 30, 2008, the MLP obtained $25,000 and $45,000 secured term loans from KeyBank N.A. The loans are interest only at LIBOR plus 60 basis points and mature in 2013. The net proceeds of the loans of $68,000 were used to partially repay indebtedness on three cross-collateralized mortgages. After such repayment, the amount owed on the three mortgages was $103,511, the three mortgages were combined into one mortgage, which is interest only instead of having a portion as self-amortizing and matures in September 2014. The MLP recognized a non-cash charge of $611 relating to the write-off of certain deferred financing charges. These loans contain customary covenants which the Company was in compliance with as of September 30, 2008. |
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Pursuant to the new loan agreements, the MLP simultaneously entered into an interest-rate swap agreement with KeyBank N.A to swap the LIBOR rate on the loans for a fixed rate of 4.9196% through March 18, 2013, and the Company assumed a liability for the fair value of the swap at inception of approximately $5,696 ($2,990 at September 30, 2008). The new debt is presented net of a discount of $4,795. Amortization of the discount as interest expense will occur over the term of the loans. | ||
The following table presents the Company’s liability for the swap measured at fair value as of September 30, 2008, aggregated by the level within the SFAS 157 fair value hierarchy within which those measurements fall: |
Fair Value Measurements using | ||||||
Quoted Prices in | Significant | Significant | ||||
Active Markets for | Other | Unobservable | ||||
Identical Liabilities | Observable Inputs | Inputs | ||||
(Level 1) | (Level 2) | (Level 3) | Balance | |||
$ — | $2,990 | $ — | $2,990 |
Although the Company has determined that the majority of the inputs used to value its swap obligation fall within Level 2 of the fair value hierarchy, the credit valuation associated with the swap obligation utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2008, the Company has determined that the credit valuation adjustment relative to the overall swap obligation is not significant. As a result, the entire swap obligation has been classified in Level 2 of the fair value hierarchy. | ||
Also at inception, in accordance with SFAS No. 133, as amended, the Company designated the swap as a cash flow hedge of the risk of variability attributable to changes in the LIBOR swap rate on $45,000 and $25,000 of LIBOR-indexed variable-rate debt. Accordingly, changes in the fair value of the swap will be recorded in other comprehensive income and reclassified to earnings as interest becomes receivable or payable. Because the fair value of the swap at inception of the hedge was not zero, the Company cannot assume that there will be no ineffectiveness in the hedging relationship. However, the Company expects the hedging relationship to be highly effective and will measure and report any ineffectiveness in earnings. During the nine months ended September 30, 2008, the Company terminated a portion of the swap for a notional amount of $3,926 due to a payment of the same amount on the $45,000 term loan. The Company recognized $764 as a reduction of interest expense during the nine months ended September 30, 2008 due to the swap’s ineffectiveness and forecasted transactions no longer being probable. | ||
During the nine months ended September 30, 2008, the Company obtained one non-recourse mortgage for $7,545, with a stated interest rate of 5.8% and a maturity date in 2012. | ||
During the nine months ended September 30, 2007, the Company obtained ten non-recourse mortgages aggregating $246,965 with stated interest rates ranging from 5.7% to 6.2% and maturity dates ranging from 2014 to 2021. | ||
During the first quarter of 2007, the Company repaid $547,199 of borrowings under the MLP’s then secured borrowing facility with KeyBank N.A. In connection with the repayment, the Company incurred approximately $650 to terminate an interest rate swap agreement, which is included in interest expense. | ||
During the nine months ended September 30, 2007, the Company issued, through the MLP, an aggregate $450,000 of 5.45% Exchangeable Guaranteed Notes due in 2027. These notes can be put to the Company commencing in 2012 and every five years thereafter through maturity. The notes are convertible by the holders into common shares at a current price of $21.99 per share, subject to adjustment upon certain events. The current exchange rate is subject to adjustment under certain events including increases in the Company’s rate of dividends above a certain threshold. Upon exchange the holders of the notes would receive (i) cash equal to the principal amount of the note |
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and (ii) to the extent the conversion value exceeds the principal amount of the note, either cash or common shares at the Company’s option. During the nine months ended September 30, 2008, the MLP repurchased $150,500 face value of the 5.45% Exchangeable Notes for cash payments and issuances of common shares of $132,464, which resulted in gains on debt extinguishment of $15,351, including write-offs of $2,685 in deferred financing costs. | ||
During the nine months ended June 30, 2007, the Company, through a wholly-owned subsidiary, issued $200,000 in Trust Preferred Securities. These securities, which are classified as debt, are due in 2037, are redeemable by the Company commencing April 2012 and bear interest at a fixed rate of 6.804% through April 2017 and thereafter at a variable rate of three month LIBOR plus 170 basis points through maturity. During the nine months ended September 30, 2008, the Company repurchased $70,880 of the Trust Preferred Securities for a cash payment of $44,561, which resulted in a gain on debt extinguishment of $24,742 including a write off of $1,577 in deferred financing costs. | ||
The Company has a $200,000 unsecured revolving credit facility, which expires in June 2009, bears interest at 120-170 basis points over LIBOR depending on the amount of the Company’s leverage level, and has interest rate periods of one, three or six months, at the option of the Company. The credit facility contains various leverage, debt service coverage, net worth maintenance and other customary covenants, which the Company was in compliance with as of September 30, 2008. As of September 30, 2008, there were no outstanding borrowings under the credit facility, $198,022 was available to be borrowed and the Company had outstanding letters of credit aggregating $1,978. | ||
In June 2007, the MLP obtained a $225,000 secured term loan from KeyBank N.A. The interest only secured term loan matures June 2009, with an MLP option to extend the maturity date to December 1, 2009, and bears interest at LIBOR plus 60 basis points. The loan contains customary covenants which the MLP was in compliance with as of September 30, 2008. The proceeds of the secured term loan were used to purchase the interests in our four co-investment programs during the nine months ended September 30, 2007. As of September 30, 2008, $197,931 is outstanding under the loan. See note 4 for a discussion of the acquisition of co-investment programs and assumption of mortgages related to the acquisitions. | ||
During the nine months ended September 30, 2008 and 2007, in connection with sales of certain properties, the Company satisfied the corresponding mortgages and notes payable which resulted in debt satisfaction charges of $895 and $3,685, respectively. | ||
(8) | 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 nine months ended September 30, 2008 and 2007, no single tenant represented greater than 10% of rental revenues. | ||
Cash and cash equivalent balances exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. | ||
(9) | Minority Interests | |
In conjunction with several of the Company’s acquisitions in prior years, sellers were given OP Units as a form of consideration. All OP Units, other than OP Units owned by the Company, are redeemable at certain times, only at the option of the holders, for the Company’s common shares on a one-for-one basis and are generally not otherwise mandatorily redeemable by the Company. | ||
During the nine months ended September 30, 2008 and 2007, 319,387 and 1,363,149 OP Units, respectively, were redeemed by the Company for an aggregate value of $4,357 and $27,231, respectively. | ||
As of September 30, 2008, there were approximately 39.4 million OP Units outstanding other than OP Units owned by the Company. All OP Units receive distributions in accordance with their respective partnership agreements. To |
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the extent that the Company’s dividend per common share is less than the stated distribution per OP Unit per the applicable 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. As of September 30, 2008, the Company’s common shares had a closing price of $17.22 per share. Assuming all outstanding OP Units not held by the Company were redeemed on such date the estimated fair value of the OP Units was $678,464. | ||
See Note 15 for redemptions of OP Units subsequent to the quarter ended September 30, 2008. | ||
(10) | Related Party Transactions | |
The Company, through the MLP, has an ownership interest in a securitized pool of first mortgages which includes two first mortgage loans encumbering MLP properties. As of September 30, 2008 and December 31, 2007, the value of the ownership interest was $15,570 and $15,926, respectively. | ||
Entities partially owned and controlled by the Company’s former Executive Chairman and Director of Strategic Acquisitions provide property management services at certain properties and co-investments owned by the Company. These entities earned, including reimbursed expenses, $3,587 and $2,540, respectively, for these services for the nine months ended September 30, 2008 and 2007. | ||
On March 20, 2008, the Company entered into a Services and Non-Compete Agreement with its former Executive Chairman and Director of Strategic Acquisitions and his affiliate, which provides that the Company’s former Executive Chairman and Director of Strategic Acquisitions and his affiliate will provide the Company with certain asset management services in exchange for $1,500. The $1,500 is included in general and administrative expenses in the statement of operations for the nine months ended September 30, 2008. | ||
As of September 30, 2008 and December 31, 2007, $4,176 and $21,378 in mortgage notes payable are due to entities owned by two of the Company’s significant OP Unitholders and the Company’s former Executive Chairman and Director of Strategic Acquisitions. | ||
During the nine months ended September 30, 2007, the Company repurchased (1) common shares from two of its officers for an aggregate of $405 and (2) LSAC shares for $2,200. | ||
During the nine months ended September 30, 2007, the MLP and Winthrop, an entity affiliated with the Company’s former Executive Chairman and Director of Strategic Acquisitions, entered into a joint venture with other unrelated partners, to acquire shares of Wells (see note 6). | ||
Winthrop, an affiliate of the Company’s former Executive Chairman and Director of Strategic Acquisitions, is the 50% partner in Lex-Win Concord, LLC (see note 6). | ||
(11) | Shareholders’ Equity | |
During the nine months ended September 30, 2008, the Company repurchased and retired 501,700 of its Series C Cumulative Convertible Preferred Shares (“Series C Preferred”) by issuing 727,759 common shares and paying $7,522 in cash. The difference between the cost to retire these Series C Preferred and their historical cost was $5,678 and is treated as an increase to shareholders equity and as a reduction in preferred dividends paid for calculating earnings per share. | ||
On June 30, 2008, the Company issued 3,450,000 common shares raising net proceeds of approximately $47,237. The proceeds, along with cash held, were used to retire $25,000 principal amount of the 5.45% Exchangeable Guaranteed Notes at a price plus accrued interest of $22,937, and $67,755 principal amount of the Trust Preferred Securities at a price plus accrued interest of $43,454. | ||
During the nine months ended September 30, 2007, the Company issued $155,000 liquidation amount of its Series D Cumulative Redeemable Preferred Stock (“Series D Preferred”), which pays dividends at an annual rate of 7.55%, raising net proceeds of $149,774. The Series D Preferred has no maturity date and the Company is not required to redeem the Series D Preferred at any time. Accordingly, the Series D Preferred will remain outstanding indefinitely, |
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unless the Company decides at its option on or after February 14, 2012, to exercise its redemption right. If at any time following a change of control, the Series D Preferred are not listed on any of the national stock exchanges, the Company will have the option to redeem the Series D Preferred, in whole but not in part, within 90 days after the first date on which both the change of control has occurred and the Series D Preferred are not so listed, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends (whether or not declared) up to but excluding the redemption date. If the Company does not redeem the Series D Preferred and the Series D Preferred are not so listed, the Series D Preferred will pay dividends at an annual rate of 8.55%. | ||
(12) | Commitments and Contingencies | |
The Company is obligated under certain tenant leases, including leases for non-consolidated entities, to fund the expansion of the underlying leased properties. | ||
The Company has agreed with Vornado Realty Trust (“Vornado”), a significant OP Unitholder in the MLP, to operate the MLP as a REIT and to indemnify Vornado for any actual damages incurred by Vornado if the MLP is not operated as a REIT. Clifford Broser, a member of the Company’s Board of Trustees, is a Senior Vice President of Vornado. | ||
From time to time, the Company is involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, that the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company’s financial condition, but may be material to the Company’s operating results for any particular period, depending, in part, upon the operating results for such period. Given the inherent difficulty of predicting the outcome of these matters, the Company cannot estimate losses or ranges of losses for proceedings where there is only a reasonable possibility that a loss may be incurred. | ||
(13) | Share—Based Compensation | |
On February 6, 2007, the Board of Trustees established the Lexington Realty Trust 2007 Outperformance Program, a long-term incentive compensation program. Under this program, participating officers will share in an “outperformance pool” if the Company’s total shareholder return for the three-year performance period beginning on the effective date of the program, January 1, 2007, exceeds the greater of an absolute compounded annual total shareholder return of 10% or 110% of the compounded annual return of the MSCI US REIT INDEX during the same period measured against a baseline value equal to the average of the ten consecutive trading days immediately prior to April 1, 2007. The size of the outperformance pool for this program will be 10% of the Company’s total shareholder return in excess of the performance hurdle, subject to a maximum amount of $40,000. On April 2, 2007, the Compensation Committee modified the effective date of the program from January 1, 2007 to April 1, 2007. | ||
The awards are considered liability-settled awards because the numbers of shares issued to the participants are not fixed and determinable as of the grant date. These awards contain both a service condition and a market condition. As these awards are liability based awards, the measurement date for liability instruments is the date of settlement. Accordingly, liabilities incurred under share-based payment arrangements were initially measured on the grant date of February 6, 2007 and are required to be re-measured at the end of each reporting period until settlement. | ||
A third party consultant was engaged to value the awards and the Monte Carlo simulation approach was used to estimate the compensation expense of the outperformance pool. As of the grant date, it was determined that the value of the awards was $1,901. As of September 30, 2008, the value of the awards was $5,822. The Company recognized $1,303 and $267 in compensation expense relating to the awards during the nine months ended September 30, 2008 and 2007, respectively. | ||
Each participating officer’s award under this program will be designated as a specified participation percentage of the aggregate outperformance pool. On February 6, 2007, the Compensation Committee allocated 83% of the outperformance pool to certain of the Company’s officers. Subsequently, two officers separated from the Company and the rights relating to their allocated 19% were forfeited. The remaining unallocated balance of 36% may be allocated by the Compensation Committee at its discretion. |
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If the performance hurdle is met, the Company will grant each participating officer non-vested common shares as of the end of the performance period with a value equal to such participating officer’s share of the outperformance pool. The non-vested common shares would vest in two equal installments on the first two anniversaries of the date the performance period ends provided the executive continues employment. Once issued, the non-vested common shares would be entitled to dividends and voting rights. | ||
In the event of a change in control (as determined for purposes of the program) during the performance period, the performance period will be shortened to end on the date of the change in control and participating officers’ awards will be based on performance relative to the hurdle through the date of the change in control. Any common shares earned upon a change in control will be fully vested. In addition, the performance period will be shortened to end for an executive officer if he or she is terminated by the Company without “cause” or he or she resigns for “good reason,” as such terms are defined in the executive officer’s employment agreement. All determinations, interpretations, and assumptions relating to the vesting and the calculation of the awards under this program will be made by the Compensation Committee. | ||
During the nine months ended September 30, 2008, the Company and a former executive officer and his affiliate entered into a Services and Non-Compete Agreement and a Separation and General Release. In addition to an aggregate cash payment of $1,500 to be paid over nine months, non-vested common shares previously issued to the officer were accelerated and immediately vested which resulted in a charge of $265 (see note 10). | ||
During the nine months ended September 30, 2007, the Company and an executive officer entered into an employment separation agreement. In addition to a cash payment of $3,600, non-vested common shares were accelerated and immediately vested which resulted in a charge of $933. | ||
During the nine months ended September 30, 2008 and 2007, the Company recognized $3,370 and $3,194, respectively, in compensation expense relating to scheduled vesting of share grants, including the amounts discussed above. | ||
(14) | Supplemental Disclosure of Statement of Cash Flow Information | |
During the nine months ended September 30, 2008 and 2007, the Company paid $130,070 and $115,565, respectively, for interest and $1,654 and $2,827, respectively, for income taxes. | ||
During the nine months ended September 30, 2008 and 2007, holders of an aggregate of 285,936 and 1,193,091 OP Units, respectively, redeemed such OP Units for common shares of the Company. The redemptions resulted in an increase in shareholders’ equity and corresponding decrease in minority interest of $3,882 and $23,630, respectively. | ||
During the nine months ended September 30, 2008, the Company assumed a $7,545 mortgage note payable in connection with a property acquisition. | ||
During the nine months ended September 30, 2008, the MLP entered into a swap obligation with an initial value of $5,696, which was reflected as a reduction of mortgages payable and included in accounts payable and other liabilities. | ||
During the nine months ended September 30, 2008, the MLP contributed six properties to NLS with $90,200 in real estate and intangibles and $51,497 in mortgage notes payable assumed. | ||
During the nine months ended September 30, 2008, the Company issued 1,023,053 common shares ($14,706) and cash of $5,432 to repurchase $22,500 of Exchangeable Guaranteed Notes. | ||
During the nine months ended September 30, 2007, in connection with the acquisition of the co-investment programs, the Company paid approximately $366,600 in cash and acquired approximately $1,071,000 in real estate, $264,000 in intangibles, $21,000 in cash, assumed $785,000 in mortgages payable, $40,000 in below market leases and $14,000 in all other assets and liabilities (see note 4). |
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(15) | Subsequent Events | |
Subsequent to September 30, 2008: |
• | The Company repurchased $32,000 of the 5.45% Exchangeable Guaranteed Notes due in 2012 for $23,740, including the issuance of 597,826 common shares at a $14.72 per share price; | ||
• | The MLP’s three largest OP unitholders, including the Company’s former Executive Chairman and Director of Strategic Acquisitions, converted their interests in the MLP for common shares of the Company. Accordingly, the Company issued 27.6 million common shares to these partners for their OP Units and currently the Company owns 91.1% of the MLP; | ||
• | The Company entered into a forward equity commitment with a financial institution to purchase 3,500,000 common shares of the Company at $5.60 per share. At inception the Company paid $9,800 with the remainder to be paid in October 2011 through (i) physical settlement or (ii) cash settlement, net share settlement or a combination of both, at the Company’s option; and | ||
• | Inland Concord invested $43,500 in Concord and this, along with cash available, was used to repay $46,583 of indebtedness under a warehouse facility. In connection with the repayment, Concord exercised an extension option on the warehouse facility to extend the maturity date from March 2009 to March 2011. In addition, Concord repaid $4,000 on a term loan and extended the maturity date of the new balance of $21,516 from December 2008 to December 2009. |
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CONDITION AND RESULTS OF OPERATIONS
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DISCLOSURES ABOUT MARKET RISK
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Issuer Purchases of Equity Securities | ||||||||||||||||
(c) | ||||||||||||||||
Total Number of | (d) | |||||||||||||||
Shares/Units | Maximum Number of | |||||||||||||||
(a) | Purchased as Part | Shares That May Yet | ||||||||||||||
Total number of | (b) | of Publicly | Be Purchased Under | |||||||||||||
Shares/ Units | Average Price Paid | Announced Plans | the Plans or | |||||||||||||
Period | Purchased | Per Share/ Units | Programs | Programs | ||||||||||||
July 1 - 31, 2008 | — | $ | — | — | 4,615,631 | |||||||||||
August 1 - 31, 2008 | — | $ | — | — | 4,615,631 | |||||||||||
September 1 - 30, 2008 | — | $ | — | — | 4,615,631 | |||||||||||
Third quarter 2008 | — | $ | — | — | 4,615,631 | |||||||||||
Exhibit No. | Description | |||
3.1 | — | Articles of Merger and Amended and Restated Declaration of Trust of the Company, dated December 31, 2006 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed January 8, 2007 (the “01/08/07 8-K”))(1) | ||
3.2 | — | Articles Supplementary Relating to the 7.55% Series D Cumulative Redeemable Preferred Stock, par value $.0001 per share (filed as Exhibit 3.3 to the Company’s Registration Statement on Form 8A filed February 14, 2007 (the “02/14/07 Registration Statement”))(1) | ||
3.3 | — | Amended and Restated By-laws of the Company (filed as Exhibit 3.2 to the 01/08/07 8-K)(1) | ||
3.4 | — | Fifth Amended and Restated Agreement of Limited Partnership of Lepercq Corporate Income Fund L.P. (“LCIF”), dated as of December 31, 1996, as supplemented (the “LCIF Partnership Agreement”) (filed as Exhibit 3.3 to the Company’s Registration Statement of Form S-3/A filed September 10, 1999 (the “09/10/99 Registration Statement”))(1) | ||
3.5 | — | Amendment No. 1 to the LCIF Partnership Agreement dated as of December 31, 2000 (filed as Exhibit 3.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, filed February 26, 2004 (the “2003 10-K”))(1) | ||
3.6 | — | First Amendment to the LCIF Partnership Agreement effective as of June 19, 2003 (filed as Exhibit 3.12 to the 2003 10-K)(1) | ||
3.7 | — | Second Amendment to the LCIF Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 3.13 to the 2003 10-K)(1) | ||
3.8 | — | Third Amendment to the LCIF Partnership Agreement effective as of December 31, 2003 (filed as Exhibit 3.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 (the “2004 10-K”))(1) | ||
3.9 | — | Fourth Amendment to the LCIF Partnership Agreement effective as of October 28, 2004 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 4, 2004)(1) | ||
3.10 | — | Fifth Amendment to the LCIF Partnership Agreement effective as of December 8, 2004 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 14, 2004 (the “12/14/04 8-K”))(1) | ||
3.11 | — | Sixth Amendment to the LCIF Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 3, 2005 (the “01/03/05 8-K”))(1) |
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Exhibit No. | Description | |||
3.12 | — | Seventh Amendment to the LCIF Partnership Agreement (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 3, 2005)(1) | ||
3.13 | — | Second Amended and Restated Agreement of Limited Partnership of Lepercq Corporate Income Fund II L.P. (“LCIF II”), dated as of August 27, 1998 the (“LCIF II Partnership Agreement”) (filed as Exhibit 3.4 to the 9/10/99 Registration Statement)(1) | ||
3.14 | — | First Amendment to the LCIF II Partnership Agreement effective as of June 19, 2003 (filed as Exhibit 3.14 to the 2003 10-K)(1) | ||
3.15 | — | Second Amendment to the LCIF II Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 3.15 to the 2003 10-K)(1) | ||
3.16 | — | Third Amendment to the LCIF II Partnership Agreement effective as of December 8, 2004 (filed as Exhibit 10.2 to 12/14/04 8-K)(1) | ||
3.17 | — | Fourth Amendment to the LCIF II Partnership Agreement effective as of January 3, 2005 (filed as Exhibit 10.2 to 01/03/05 8-K)(1) | ||
3.18 | — | Fifth Amendment to the LCIF II Partnership Agreement effective as of July 23, 2006 (filed as Exhibit 99.5 to the Company’s Current Report on Form 8-K filed July 24, 2006 (the “07/24/06 8-K”))(1) | ||
3.19 | — | Sixth Amendment to the LCIF II Partnership Agreement effective as of December 20, 2006 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 22, 2006)(1) | ||
3.20 | — | Amended and Restated Agreement of Limited Partnership of Net 3 Acquisition L.P. (the “Net 3 Partnership Agreement”) (filed as Exhibit 3.16 to the Company’s Registration Statement of Form S-3 filed November 16, 2006)(1) | ||
3.21 | — | First Amendment to the Net 3 Partnership Agreement effective as of November 29, 2001 (filed as Exhibit 3.17 to the 2003 10-K)(1) | ||
3.22 | — | Second Amendment to the Net 3 Partnership Agreement effective as of June 19, 2003 (filed as Exhibit 3.18 to the 2003 10-K)(1) | ||
3.23 | — | Third Amendment to the Net 3 Partnership Agreement effective as of June 30, 2003 (filed as Exhibit 3.19 to the 2003 10-K)(1) | ||
3.24 | — | Fourth Amendment to the Net 3 Partnership Agreement effective as of December 8, 2004 (filed as Exhibit 10.3 to 12/14/04 8-K)(1) | ||
3.25 | — | Fifth Amendment to the Net 3 Partnership Agreement effective as of January 3, 2005 (filed as Exhibit 10.3 to 01/03/05 8-K)(1) | ||
3.26 | — | Second Amended and Restated Agreement of Limited Partnership of The Lexington Master Limited Partnership (formerly known as The Newkirk Master Limited Partnership, the “MLP”), dated as of December 31, 2006, between Lex GP-1 Trust and Lex LP-1 Trust (filed as Exhibit 10.4 to the 01/08/07 8-K)(1) | ||
4.1 | — | Specimen of Common Shares Certificate of the Company (filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 (the “2006 10-K”))(1) | ||
4.2 | — | Form of 8.05% Series B Cumulative Redeemable Preferred Stock certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 8A filed June 17, 2003)(1) | ||
4.3 | — | Form of 6.50% Series C Cumulative Convertible Preferred Stock certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 8A filed December 8, 2004)(1) | ||
4.4 | — | Form of 7.55% Series D Cumulative Redeemable Preferred Stock certificate (filed as Exhibit 4.1 to the 02/14/07 Registration Statement)(1) | ||
4.5 | — | Form of Special Voting Preferred Stock certificate (filed as Exhibit 4.5 to the 2006 10-K)(1) | ||
4.6 | — | Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, the Company, the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 29, 2007 (the “01/29/07 8-K”))(1) | ||
4.7 | — | First Supplemental Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, the Company, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 (filed as Exhibit 4.2 to the 01/29/07 8-K)(1) | ||
4.8 | — | Second Supplemental Indenture, dated as of March 9, 2007, among The Lexington Master Limited Partnership, the Company, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 (filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K filed on March 9, 2007 (the “03/09/07 8-K”))(1) | ||
4.9 | — | Amended and Restated Trust Agreement, dated March 21, 2007, among Lexington Realty Trust, The Bank of New York |
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Exhibit No. | Description | |||
Trust Company, National Association, The Bank of New York (Delaware), the Administrative Trustees (as named therein) and the several holders of the Preferred Securities from time to time (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 27, 2007 (the “03/27/2007 8-K”))(1) | ||||
4.10 | — | Third Supplemental Indenture, dated as of June 19, 2007, among the MLP, the Company, the other guarantors named therein and U.S. bank National Association, as trustee, including the form of 5.45% Exchangeable Guaranteed Notes due 2027 (filed as Exhibit 4.1 to the Company’s Report on form 8-k filed on June 22, 2007(1) | ||
4.11 | — | Junior Subordinated Indenture, dated as of March 21, 2007, between Lexington Realty Trust and The Bank of New York Trust Company, National Association (filed as Exhibit 4.2 to the 03/27/07 8-K)(1) | ||
9.1 | — | Voting Trustee Agreement, dated as of December 31, 2006, among the Company, The Lexington Master Limited Partnership and NKT Advisors LLC (filed as Exhibit 10.6 to the 01/08/07 8-K)(1) | ||
9.2 | — | Amendment No. 1 to Voting Trustee Agreement, dated as of March 20, 2008, among the Company, The Lexington Master Limited Partnership and NKT Advisors LLC (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 24, 2008 (the “03/24/08 8-K”))(1) | ||
10.1 | — | Form of 1994 Outside Director Shares Plan of the Company (filed as Exhibit 10.8 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1993) (1, 4) | ||
10.2 | — | 1994 Employee Stock Purchase Plan (filed as Exhibit D to the Company’s Definitive Proxy Statement dated April 12, 1994) (1, 4) | ||
10.3 | — | Amendment to 1998 Share Option Plan (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on January 3, 2007 (the “01/03/07 8-K”)) (1, 4) | ||
10.4 | — | 2007 Equity Award Plan (filed as Annex A to the Company’s Definitive Proxy Statement dated April 19, 2007) (1,4) | ||
10.5 | — | 2007 Outperformance Program (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 5, 2007) (1,4) | ||
10.6 | — | Amendment to 2007 Outperformance Program (filed as Exhibit 10.6 to the Company’s Current Report on form 8-K filed on December 20,2007 (the 12/26/07 8-K)) (1,4) | ||
10.7 | — | Form of Compensation Agreement (Long-Term Compensation) between the Company and each of the following officers: Richard J. Rouse and Patrick Carroll (filed as Exhibit 10.15 to the 2004 10-K) (1, 4) | ||
10.8 | — | Form of Compensation Agreement (Bonus and Long-Term Compensation) between the Company and each of the following officers: E. Robert Roskind and T. Wilson Eglin (filed as Exhibit 10.16 to the 2004 10-K) (1, 4) | ||
10.9 | — | Form of Nonvested Share Agreement (Performance Bonus Award) between the Company and each of the following officers: E. Robert Roskind, T. Wilson Eglin, Richard J. Rouse and Patrick Carroll (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 6, 2006 (the “02/06/06 8-K”)) (1, 4) | ||
10.10 | — | Form of Nonvested Share Agreement (Long-Term Incentive Award) between the Company and each of the following officers: E. Robert Roskind, T. Wilson Eglin, Richard J. Rouse and Patrick Carroll and (filed as Exhibit 10.2 to the 02/06/06 8-K) (1, 4) | ||
10.11 | — | Form of the Company’s Nonvested Share Agreement, dated as of December 28, 2006 (filed as Exhibit 10.2 to the 01/03/07 8-K) (1,4) | ||
10.12 | — | Form of Lock-Up and Claw-Back Agreement, dated as of December 28, 2006 (filed as Exhibit 10.4 to the 01/03/07 8-K)(1) | ||
10.13 | — | Form of 2007 Annual Long-Term Incentive Award Agreement (filed as Exhibit 10.1 to the Company’s current Report on Form 8-K filed on January 11, 2008 (1,4) | ||
10.14 | — | Employment Agreement between the Company and E. Robert Roskind, dated May 4, 2006 (filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed May 5, 2006 (the “05/05/06 8-K”)) (1, 4) | ||
10.15 | — | Employment Agreement between the Company and T. Wilson Eglin, dated May 4, 2006 (filed as Exhibit 99.2 to the 05/05/06 8-K) (1, 4) | ||
10.16 | — | Employment Agreement between the Company and Richard J. Rouse, dated May 4, 2006 (filed as Exhibit 99.3 to the 05/05/06 8-K) (1, 4) | ||
10.17 | — | Employment Agreement between the Company and Patrick Carroll, dated May 4, 2006 (filed as Exhibit 99.4 to the 05/05/06 8-K) (1, 4) | ||
10.18 | — | Waiver Letters, dated as of July 23, 2006 and delivered by each of E. Robert Roskind, Richard J. Rouse, T. Wilson Eglin and Patrick Carroll (filed as Exhibit 10.17 to the 01/08/07 8-K)(1) | ||
10.19 | — | 2008 Trustee Fees Term Sheet (detailed on the Company’s Current Report on Form 8-K filed April 18, 2008) (1, 4) |
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Exhibit No. | Description | |||
10.20 | — | Form of Indemnification Agreement between the Company and certain officers and trustees (1, 2) | ||
10.21 | — | Credit Agreement, dated as of June 2, 2005 (“Credit Facility”) among the Company, LCIF, LCIF II, Net 3 Acquisition L.P., jointly and severally as borrowers, certain subsidiaries of the Company, as guarantors, Wachovia Capital Markets, LLC, as lead arranger, Wachovia Bank, National Association, as agent, Key Bank, N.A., as Syndication agent, each of Sovereign Bank and PNC Bank, National Association, as co-documentation agent, and each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section 12.5(d) therein (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 30, 2005)(1) | ||
10.22 | — | First Amendment to Credit facility, dated as of June 1, 2006 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 2, 2006)(1) | ||
10.23 | — | Second Amendment to Credit facility, dated as of December 27, 2006 (filed as Exhibit 10.1 to the 01/03/07 8-K)(1) | ||
10.24 | — | Third Amendment to Credit Agreement, dated as of December 20, 2007(filed as Exhibit 10.1 to the 12/26/07 8-K)(1) | ||
10.25 | — | Credit Agreement, dated as of June 1, 2007, among the Company, the MLP, LCIF, LCIF II and Net 3, jointly and severally as borrowers, KeyBanc Capital Markets, as lead arranger and book running manager, KeyBank National Association, as agent, and each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section 12.5.(d) therein (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 7, 2007 (the “06/07/2007 8-K”))(1) | ||
10.26 | — | Master Repurchase Agreement, dated March 30, 2006, among Column Financial Inc., 111 Debt Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk (filed as Exhibit 10.2 to Newkirk’s Current Report on Form 8-K filed April 5, 2006 (the “NKT 04/05/06 8-K”))(1) | ||
10.27 | — | Second Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated as of August 2, 2008, between Lex-Win Concord LLC and Inland American (Concord) Sub, LLC (filed as Exhibit 10.1 to the Company’s current Report on Form 8-K filed on August 4, 2008 (the “08/04/08 8-K”)(1)) | ||
10.28 | — | Limited Liability Company Agreement of Lex-Win LLC, dated as of August 2, 2008 (filed as Exhibit 10.2 to 08/04/08 8-K)(1) | ||
10.29 | — | Administration and Advisory Agreement, dated as of August 2, 2008, among Lex-Win Concord, WRP Management LLC and WRP Sub-Management LLC (filed as Exhibit 10.3 to the Company’s 08/04/08 8-K)(1) | ||
10.30 | — | Funding Agreement, dated as of July 23, 2006, by and among LCIF, LCIF II and Net 3 Acquisition L.P. (“Net 3”) and the Company (filed as Exhibit 99.4 to the 07/24/06 8-K)(1) | ||
10.31 | — | Funding Agreement, dated as of December 31, 2006, by and among LCIF, LCIF II, Net 3, the MLP and the Company (filed as Exhibit 10.2 to the 01/08/07 8-K)(1) | ||
10.32 | — | Guaranty Agreement, effective as of December 31, 2006, between the Company and the MLP (filed as Exhibit 10.5 to the 01/08/07 8-K)(1) | ||
10.33 | — | Letter Agreement among Newkirk, Apollo Real Estate Investment Fund III, L.P., the MLP, NKT Advisors LLC, Vornado Realty Trust, VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC and WEM Bryn Mawr Associates LLC (filed as Exhibit 10.15 to Amendment No. 5 to Newkirk Registration Statement on Form S-11/A filed October 28, 2005 (“Amendment No. 5 to NKT’s S-11”))(1) | ||
10.34 | — | Amendment to the Letter Agreement among Newkirk, Apollo Real Estate Investment Fund III, L.P., the MLP, NKT Advisors LLC, Vornado Realty Trust, Vornado Realty L.P., VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and WEM-Brynmawr Associates LLC (filed as Exhibit 10.25 to Amendment No. 5 to Newkirk’s S-11)(1) | ||
10.35 | — | Ownership Limit Waiver Agreement, dated as of December 31, 2006, between the Company and Vornado Realty, L.P. (filed as Exhibit 10.8 to the 01/08/07 8-K)(1) | ||
10.36 | — | Ownership Limit Waiver Agreement, dated as of December 31, 2006, between the Company and Apollo Real Estate Investment Fund III, L.P. (filed as Exhibit 10.9 to the 01/08/07 8-K)(1) | ||
10.37 | — | Registration Rights Agreement, dated as of December 31, 2006, between the Company and Michael L. Ashner (filed as Exhibit 10.10 to the 01/08/07 8-K)(1) | ||
10.38 | — | Registration Rights Agreement, dated as of November 7, 2005, between Newkirk and Vornado Realty Trust (filed as Exhibit 10.4 to Newkirk’s Current Report on Form 8-K filed November 15, 2005 (“NKT’s 11/15/05 8-K”))(1) | ||
10.39 | — | Registration Rights Agreement, dated as of November 7, 2005, between Newkirk and Apollo Real Estate |
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Exhibit No. | Description | |||
Investment Fund III, L.P. (“Apollo”) (filed as Exhibit 10.5 to NKT’s 11/15/05 8-K)(1) | ||||
10.40 | — | Assignment and Assumption Agreement, effective as of December 31, 2006, among Newkirk, the Company, and Vornado Realty L.P. (filed as Exhibit 10.12 to the 01/08/07 8-K)(1) | ||
10.41 | — | Assignment and Assumption Agreement, effective as of December 31, 2006 among Newkirk, the Company, and Apollo Real Estate Investment Fund III, L.P. (filed as Exhibit 10.13 to the 01/08/07 8-K)(1) | ||
10.42 | — | Registration Rights Agreement, dated as of January 29, 2007, among the MLP, the Company, LCIF, LCIF II, Net 3, Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for themselves and on behalf of the initial purchasers named therein (filed as Exhibit 4.3 to the 01/29/07 8-K)(1) | ||
10.43 | — | Common Share Delivery Agreement, made as of January 29, 2007, between the MLP and the Company (filed as Exhibit 10.77 to the 2006 10-K)(1) | ||
10.44 | — | Registration Rights Agreement, dated as of March 9, 2007, among the MLP, the Company, LCIF, LCIF II, Net 3, Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for themselves and on behalf of the initial purchasers named therein (filed as Exhibit 4.4 to the 03/09/07 8-K)(1) | ||
10.45 | — | Common Share Delivery Agreement, made as of January 29, 2007 between the MLP and the Company (filed as Exhibit 4.5 to the 03/09/2007 8-K)(1) | ||
10.46 | — | Second Amendment and Restated Limited Partnership Agreement, dated as of February 20, 2008, among LMLP GP LLC, The Lexington Master Limited Partnership and Inland American (Net Lease) Sub, LLC (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 21, 2008 (the “2/21/08 8-K”))(1) | ||
10.47 | — | Management Agreement, dated as of August 10, 2007, between Net Lease Strategic Assets Fund L.P. and Lexington Realty Advisors, Inc. (filed as Exhibit 10.4 to the 08/16/2007 8-K)(1) | ||
10.48 | — | Services and Non-Compete Agreement, dated as of March 20, 2008, among the Company, FUR Advisors LLC and Michael L. Ashner (filed as Exhibit 10.1 to the 03/24/2008 8-K)(1) | ||
10.49 | — | Separation and General Release, dated as of March 20, 2008, between the Company and Michael L. Ashner (filed as Exhibit 99.1 to the 03/24/2008 8-K)(1, 4) | ||
10.50 | — | Form of Contribution Agreement dated as of December 20, 2007 (filed as Exhibit 10.5 to the 12/26/07 8-K)(1) | ||
31.1 | — | Certification of Chief Executive Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(3) | ||
31.2 | — | Certification of Chief Financial Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(3) | ||
32.1 | — | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3) | ||
32.2 | — | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3) |
(1) Incorporated by reference.
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Lexington Realty Trust | ||||
Date: November 7, 2008 | By: | /s/ T. Wilson Eglin | ||
T. Wilson Eglin | ||||
Chief Executive Officer, President and Chief Operating Officer | ||||
Date: November 7, 2008 | By: | /s/ Patrick Carroll | ||
Patrick Carroll | ||||
Chief Financial Officer, Executive Vice President and Treasurer |
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1. | I have reviewed this report on Form 10-Q of Lexington Realty Trust; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a—15(e) and 15d—15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a—15(f) and 15(d)—15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ T. Wilson Eglin | ||
Chief Executive Officer |
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1. | I have reviewed this report on Form 10-Q of Lexington Realty Trust; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a—15(e) and 15d—15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a—15(f) and 15(d)—15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Patrick Carroll | ||
Chief Financial Officer |
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18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
/s/ T. Wilson Eglin | ||
Chief Executive Officer | ||
November 7, 2008 |
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18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
/s/ Patrick Carroll | ||
Chief Financial Officer | ||
November 7, 2008 |
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to Section 13 or 15(d) of the
Securities Exchange Act of 1934
1-12386 | 13-371318 | |
(Commission File Number) | (I.R.S. Employer | |
Identification No.) |
One Penn Plaza, Suite 4015, New York, New York | 10119-4015 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Year | Balloon Payments | |||||||
2008 — remaining | $ | 22.6 | million | |||||
2009 | $ | 282.4 | million | |||||
2010 | $ | 110.6 | million | |||||
2011 | $ | 99.5 | million | |||||
2012 | $ | 533.8 | million |
Balloon Payments — our | ||||||||||||||||
Year | Balloon Payments | Proportionate Share | ||||||||||||||
2008 — remaining | $ | 77.2 | million | $ | 38.6 | million | ||||||||||
2009 | $ | 317.7 | million | $ | 156.3 | million | ||||||||||
2010 | $ | 7.6 | million | $ | 3.6 | million | ||||||||||
2011 | $ | 46.0 | million | $ | 21.7 | million | ||||||||||
2012 | $ | 81.8 | million | $ | 40.3 | million |
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• | the discovery of previously unknown environmental conditions; | ||
• | changes in law; | ||
• | activities of tenants; or | ||
• | activities relating to properties in the vicinity of our properties. |
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Lexington Realty Trust | ||||
Date: June 25, 2008 | By: | /s/ Patrick Carroll | ||
Patrick Carroll | ||||
Chief Financial Officer | ||||
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to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Maryland | 1-12386 | 13-3717318 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
One Penn Plaza, Suite 4015, New York, New York | 10119-4015 | |
(Address of Principal Executive Offices) | (Zip Code) |
(Registrant’s Telephone Number, Including Area Code)
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFT|R 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02. | Results of Operations and Financial Condition. |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
(a) | Not applicable | ||
(b) | Not applicable | ||
(c) | Not applicable | ||
(d) | Exhibits |
99.1 | Supplemental Reporting Package for the quarter and nine months ended September 30, 2008. | |
99.2 | Conference Call Transcript. |
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Lexington Realty Trust | ||||
Date: November 7, 2008 | By: | /s/ Patrick Carroll | ||
Patrick Carroll | ||||
Chief Financial Officer | ||||
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99.1 | Supplemental Reporting Package for the quarter and nine months ended September 30, 2008. | |
99.2 | Conference Call Transcript. |
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Supplemental Operating and Financial Data
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SUPPLEMENTAL REPORTING PACKAGE
For the Three and Nine Months Ended September 30, 2008
Section | Page | |||
Third Quarter 2008 Earnings Press Release | 3 | |||
Portfolio Data | ||||
Major Markets | 11 | |||
Tenant Industry Diversification | 12 | |||
Other Revenue Data | 13 | |||
Top 10 Tenants or Guarantors | 14 | |||
Property Leases and Vacancies — Consolidated Portfolio | 15 | |||
Property Leases and Vacancies — Net Lease Strategic Asset Fund | 24 | |||
Unleveraged Properties by Property Type | 26 | |||
Term Loan Collateral by Property Type | 29 | |||
2009 Mortgage Maturities by Property Type | 31 | |||
3Q ‘08 Disposition Summary | 32 | |||
3Q ‘08 Acquisition Summary | 33 | |||
3Q ‘08 Leasing Summary | 34 | |||
3Q ‘08 Debt Summary | 35 | |||
Lease Rollover Schedule — Cash Basis | 36 | |||
Lease Rollover Schedule — GAAP Basis | 37 | |||
Financial Data | ||||
Joint Venture Investments — Proportionate Share | 38 | |||
Concord Debt Holdings — Investment Summary | 39 | |||
Selected Balance Sheet Account Detail | 40 | |||
Mortgages and Notes Payable | 41 | |||
Base Rent Estimates from Current Assets | 49 | |||
Investor Information | 50 |
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Lexington Realty Trust | ||
TRADED: NYSE: LXP | ||
One Penn Plaza, Suite 4015 | ||
New York NY 10119-4015 |
Investor or Media Inquiries, T. Wilson Eglin, CEO
Lexington Realty Trust
Phone: (212) 692-7200 E-mail: tweglin@lxp.com
Thursday November 6, 2008
• | Generated Company Funds From Operations (“Company FFO”) of $43.3 million or $0.40 per diluted share/unit.(1) | ||
• | Executed 18 new and renewal leases, totaling approximately 777,000 square feet. | ||
• | Sold 15 properties for $22.6 million at a 6.6% cap rate. | ||
• | Acquired 2 properties for $56.1 million at an 8.5% cap rate. | ||
• | Repurchased $25.5 million original principal amount of senior securities at a 10.7% discount. |
(1) | See the last page of this press release for a reconciliation of GAAP net income (loss) to Company FFO. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Nine Months ended September 30, 2008 and 2007
(Unaudited and in thousands, except share and per share data)
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Gross Revenues: | ||||||||||||||||
Rental | $ | 94,146 | $ | 105,974 | $ | 308,382 | $ | 269,803 | ||||||||
Advisory and incentive fees | 396 | 239 | 1,072 | 12,182 | ||||||||||||
Tenant reimbursements | 10,927 | 10,057 | 31,178 | 22,114 | ||||||||||||
Total gross revenues | 105,469 | 116,270 | 340,632 | 304,099 | ||||||||||||
Expense applicable to revenues: | ||||||||||||||||
Depreciation and amortization | (51,197 | ) | (63,843 | ) | (191,596 | ) | (164,785 | ) | ||||||||
Property operating | (21,733 | ) | (17,921 | ) | (60,804 | ) | (41,982 | ) | ||||||||
General and administrative | (7,117 | ) | (7,530 | ) | (25,468 | ) | (28,673 | ) | ||||||||
Non-operating income | 1,802 | 2,633 | 22,599 | 7,502 | ||||||||||||
Interest and amortization expense | (37,279 | ) | (48,129 | ) | (120,519 | ) | (114,747 | ) | ||||||||
Debt satisfaction gains, net | 2,309 | — | 39,020 | — | ||||||||||||
Gains on sale-affiliates | — | — | 31,806 | — | ||||||||||||
Income (loss) before provision for income taxes, minority interests, equity in earnings (losses) of non-consolidated entities and discontinued operations | (7,746 | ) | (18,520 | ) | 35,670 | (38,586 | ) | |||||||||
Provision for income taxes | (662 | ) | (369 | ) | (2,636 | ) | (2,547 | ) | ||||||||
Minority interests share of (income) loss | 2,823 | 3,336 | 5,372 | (3,546 | ) | |||||||||||
Equity in earnings (losses) of non-consolidated entities | (1,525 | ) | 4,054 | (23,171 | ) | 45,951 | ||||||||||
Income (loss) from continuing operations | (7,110 | ) | (11,499 | ) | 15,235 | 1,272 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from discontinued operations | 26 | 8,441 | 1,628 | 25,720 | ||||||||||||
Provision for income taxes | (181 | ) | (44 | ) | (330 | ) | (2,721 | ) | ||||||||
Debt satisfaction charges | (120 | ) | (3,596 | ) | (433 | ) | (3,685 | ) | ||||||||
Gains on sales of properties | 7,374 | 26,980 | 11,986 | 39,808 | ||||||||||||
Impairment charges | (1,063 | ) | — | (3,757 | ) | — | ||||||||||
Minority interests share of income | (2,643 | ) | (5,819 | ) | (4,509 | ) | (14,777 | ) | ||||||||
Total discontinued operations | 3,393 | 25,962 | 4,585 | 44,345 | ||||||||||||
Net income (loss) | (3,717 | ) | 14,463 | 19,820 | 45,617 | |||||||||||
Dividends attributable to preferred shares- Series B | (1,590 | ) | (1,590 | ) | (4,770 | ) | (4,770 | ) | ||||||||
Dividends attributable to preferred shares- Series C | (2,110 | ) | (2,519 | ) | (6,740 | ) | (7,556 | ) | ||||||||
Dividends attributable to preferred shares- Series D | (2,926 | ) | (2,925 | ) | (8,777 | ) | (7,372 | ) | ||||||||
Redemption discount – Series C | — | — | 5,678 | — | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (10,343 | ) | $ | 7,429 | $ | 5,211 | $ | 25,919 | |||||||
Income per common share-basic: | ||||||||||||||||
Income (loss) from continuing operations, after preferred dividends | $ | (0.21 | ) | $ | (0.29 | ) | $ | 0.01 | $ | (0.28 | ) | |||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (0.16 | ) | $ | 0.12 | $ | 0.08 | $ | 0.39 | |||||||
Weighted average common shares outstanding – basic | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Income (loss) per common share-diluted: | ||||||||||||||||
Income (loss) from continuing operations, after preferred dividends | $ | (0.21 | ) | $ | (0.29 | ) | $ | (0.14 | ) | $ | (0.28 | ) | ||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (0.16 | ) | $ | 0.12 | $ | (0.07 | ) | $ | 0.39 | ||||||
Weighted average common shares outstanding-diluted | 64,433,457 | 63,458,167 | 101,789,804 | 65,735,321 | ||||||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2008 and December 31, 2007
(Unaudited and in thousands, except share and per share data)
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
Assets: | ||||||||
Real estate, at cost | $ | 3,836,321 | $ | 4,109,097 | ||||
Less: accumulated depreciation and amortization | 439,531 | 379,831 | ||||||
3,396,790 | 3,729,266 | |||||||
Properties held for sale-discontinued operations | 8,408 | 150,907 | ||||||
Intangible assets, net | 375,212 | 516,698 | ||||||
Cash and cash equivalents | 108,039 | 412,106 | ||||||
Restricted cash | 27,481 | 41,026 | ||||||
Investment in and advances to non-consolidated entities | 205,021 | 226,476 | ||||||
Deferred expenses, net | 37,329 | 42,040 | ||||||
Notes receivable | 68,631 | 69,775 | ||||||
Rent receivable-current | 16,630 | 25,289 | ||||||
Rent receivable- deferred | 16,967 | 15,303 | ||||||
Other assets | 33,824 | 36,277 | ||||||
$ | 4,294,332 | $ | 5,265,163 | |||||
Liabilities and Shareholders’ Equity: | ||||||||
Liabilities: | ||||||||
Mortgage and notes payable | $ | 2,052,955 | $ | 2,312,422 | ||||
Exchangeable notes payable | 299,500 | 450,000 | ||||||
Trust preferred securities | 129,120 | 200,000 | ||||||
Contract rights payable | 14,435 | 13,444 | ||||||
Dividends payable | 28,297 | 158,168 | ||||||
Liabilities-discontinued operations | 902 | 119,093 | ||||||
Accounts payable and other liabilities | 33,974 | 49,442 | ||||||
Accrued interest payable | 10,822 | 23,507 | ||||||
Deferred revenue-below market leases, net | 155,134 | 217,389 | ||||||
Prepaid rent | 20,352 | 16,764 | ||||||
2,745,491 | 3,560,229 | |||||||
Minority interests | 624,839 | 765,863 | ||||||
3,370,330 | 4,326,092 | |||||||
Commitments and contingencies | ||||||||
Shareholders’ equity | ||||||||
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares, | ||||||||
Series B Cumulative Redeemable Preferred, liquidation preference $79,000, 3,160,000 shares issued and outstanding | 76,315 | 76,315 | ||||||
Series C Cumulative Convertible Preferred, liquidation preference $129,915 and $155,000, respectively, and 2,598,300 and 3,100,000 shares issued and outstanding in 2008 and 2007, respectively | 126,217 | 150,589 | ||||||
Series D Cumulative Redeemable Preferred, liquidation preference $155,000, 6,200,000 shares issued and outstanding | 149,774 | 149,774 | ||||||
Special Voting Preferred Share, par value $0.0001 per share; 1 share authorized, issued and outstanding | — | — | ||||||
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 65,666,569 and 61,064,334 shares issued and outstanding in 2008 and 2007, respectively | 6 | 6 | ||||||
Additional paid-in-capital | 1,097,176 | 1,033,332 | ||||||
Accumulated distributions in excess of net income | (525,788 | ) | (468,167 | ) | ||||
Accumulated other comprehensive income (loss) | 302 | (2,778 | ) | |||||
Total shareholders’ equity | 924,002 | 939,071 | ||||||
$ | 4,294,332 | $ | 5,265,163 | |||||
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EARNINGS PER SHARE AND COMPANY FUNDS FROM OPERATIONS PER SHARE
(Unaudited and in thousands, except share and per share data)
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Basic: | ||||||||||||||||
Income (loss) from continuing operations | $ | (7,110 | ) | $ | (11,499 | ) | $ | 15,235 | $ | 1,272 | ||||||
Less preferred dividends | (6,626 | ) | (7,034 | ) | (14,609 | ) | (19,698 | ) | ||||||||
Income (loss) allocable to common shareholders from continuing operations | (13,736 | ) | (18,533 | ) | 626 | (18,426 | ) | |||||||||
Total income from discontinued operations | 3,393 | 25,962 | 4,585 | 44,345 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (10,343 | ) | $ | 7,429 | $ | 5,211 | $ | 25,919 | |||||||
Weighted average number of common shares outstanding | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Income (loss) per common share-basic: | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.21 | ) | $ | (0.29 | ) | $ | 0.01 | $ | (0.28 | ) | |||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) | $ | (0.16 | ) | $ | 0.12 | $ | 0.08 | $ | 0.39 | |||||||
Diluted: | ||||||||||||||||
Income allocable to common shareholders from continuing operations- basic | $ | (13,736 | ) | $ | (18,533 | ) | $ | 626 | $ | (18,426 | ) | |||||
Incremental loss attributed to assumed conversion of dilutive securities | — | — | (14,728 | ) | — | |||||||||||
Income (loss) allocable to common shareholders from continuing operations | (13,736 | ) | (18,533 | ) | (14,102 | ) | (18,426 | ) | ||||||||
Total income from discontinued operations | 3,393 | 25,962 | 7,002 | 44,345 | ||||||||||||
Net income (loss) allocable to common shareholders | $ | (10,343 | ) | $ | 7,429 | $ | (7,100 | ) | $ | 25,919 | ||||||
Weighted average number of common shares used in calculation of basic earnings per share | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Add incremental shares representing: | ||||||||||||||||
Shares issuable upon exercise of employee share options/non-vested shares | — | — | — | — | ||||||||||||
Shares issuable upon conversion of dilutive securities | — | — | 40,304,527 | — | ||||||||||||
Weighted average number of shares used in calculation of diluted earnings per share | 64,433,457 | 63,458,167 | 101,789,804 | 65,735,321 | ||||||||||||
Income (loss) per common share-diluted: | ||||||||||||||||
Income (loss) from continuing operations | $ | (0.21 | ) | $ | (0.29 | ) | $ | (0.14 | ) | $ | (0.28 | ) | ||||
Income from discontinued operations | 0.05 | 0.41 | 0.07 | 0.67 | ||||||||||||
Net income (loss) | $ | (0.16 | ) | $ | 0.12 | $ | (0.07 | ) | $ | 0.39 | ||||||
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EARNINGS PER SHARE AND COMPANY FUNDS FROM OPERATIONS PER SHARE (Continued)
(Unaudited and in thousands, except share and per share data)
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
COMPANY FUNDS FROM OPERATIONS:(1) | ||||||||||||||||
Basic and Diluted: | ||||||||||||||||
Net income (loss) allocable to common shareholders-basic | $ | (10,343 | ) | $ | 7,429 | $ | 5,211 | $ | 25,919 | |||||||
Adjustments: | ||||||||||||||||
Depreciation and amortization | 50,895 | 67,439 | 191,636 | 180,224 | ||||||||||||
Minority interests- OP units | (1,664 | ) | 952 | (7,043 | ) | 14,867 | ||||||||||
Amortization of leasing commissions | 481 | 346 | 1,493 | 882 | ||||||||||||
Joint venture and minority interest adjustment-depreciation | 7,874 | (1,348 | ) | 15,312 | 1,698 | |||||||||||
Preferred dividends- Series C | 2,110 | 2,519 | 1,062 | 7,556 | ||||||||||||
Gains on sale of properties | (7,374 | ) | (26,980 | ) | (43,792 | ) | (39,808 | ) | ||||||||
Taxes and minority interest on sale of property | 1,303 | — | 1,387 | 1,749 | ||||||||||||
Gains on sale of joint venture properties | — | — | — | (34,164 | ) | |||||||||||
Company FFO | $ | 43,282 | $ | 50,357 | $ | 165,266 | $ | 158,923 | ||||||||
Basic: | ||||||||||||||||
Weighted average shares outstanding-basic EPS | 64,433,457 | 63,458,167 | 61,485,277 | 65,735,321 | ||||||||||||
Operating partnership units | 39,435,581 | 39,636,305 | 39,532,762 | 40,192,868 | ||||||||||||
Preferred Shares- Series C | 5,633,894 | 5,779,330 | 6,249,276 | 5,779,330 | ||||||||||||
Weighted average shares outstanding-basic Company FFO | 109,502,932 | 108,873,802 | 107,267,315 | 111,707,519 | ||||||||||||
Company FFO per share | $ | 0.40 | $ | 0.46 | $ | 1.54 | $ | 1.42 | ||||||||
Diluted: | ||||||||||||||||
Weighted average shares outstanding – diluted EPS | 64,433,457 | 63,458,167 | 101,789,804 | 65,735,321 | ||||||||||||
Employee share option/non-vested shares | 5,973 | 403 | 8,820 | 544 | ||||||||||||
Operating partnership units | 39,435,581 | 39,636,305 | — | 40,192,868 | ||||||||||||
Preferred Shares- Series C | 5,633,894 | 5,779,330 | 5,477,511 | 5,779,330 | ||||||||||||
Weighted average shares outstanding – diluted Company FFO | 109,508,905 | 108,874,205 | 107,276,135 | 111,708,063 | ||||||||||||
Company FFO per share | $ | 0.40 | $ | 0.46 | $ | 1.54 | $ | 1.42 | ||||||||
1 | Lexington believes that Funds from Operations (“FFO”) is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington presents FFO because it considers FFO an important supplemental measure of Lexington’s operating performance. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude generally accepted accounting principles (“GAAP”), historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income. |
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Major Markets
9/30/2008
% of Annualized | ||||
GAAP Base Rent at | ||||
Core Based Statistical Area(2) | 9/30/2008(1) | |||
1 | Dallas-Fort Worth-Arlington, TX | 9.3% | ||
2 | Los Angeles-Long Beach-Santa Ana, CA | 7.1% | ||
3 | New York-Northern New Jersey-Long Island, NY-NJ-PA | 5.6% | ||
4 | Houston-Sugar Land-Baytown, TX | 5.5% | ||
5 | Memphis, TN-MS-AR | 3.5% | ||
6 | Baltimore-Towson, MD | 3.3% | ||
7 | Atlanta-Sandy Springs-Marietta, GA | 3.1% | ||
8 | Orlando-Kissimmee, FL | 2.9% | ||
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 2.6% | ||
10 | Kansas City, MO-KS | 2.6% | ||
11 | Detroit-Warren-Livonia, MI | 2.3% | ||
12 | Richmond, VA | 2.2% | ||
13 | Boston-Cambridge-Quincy, MA-NH | 1.9% | ||
14 | Charlotte-Gastonia-Concord, NC-SC | 1.8% | ||
15 | Indianapolis-Carmel, IN | 1.8% | ||
16 | Chicago-Naperville-Joliet, IL-IN-WI | 1.8% | ||
17 | Columbus, OH | 1.7% | ||
18 | Salt Lake City, UT | 1.7% | ||
19 | Seattle-Tacoma-Bellevue, WA | 1.6% | ||
20 | Hartford-West Hartford-East Hartford, CT | 1.5% | ||
21 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 1.5% | ||
22 | Phoenix-Mesa-Scottsdale, AZ | 1.4% | ||
23 | San Francisco-Oakland-Fremont, CA | 1.4% | ||
24 | Beaumont-Port Arthur, TX | 1.3% | ||
25 | San Antonio, TX | 1.3% | ||
26 | Cincinnati-Middletown, OH-KY-IN | 1.2% | ||
27 | Columbus, IN | 1.2% | ||
28 | Miami-Fort Lauderdale-Pompano Beach, FL | 1.2% | ||
29 | Las Vegas-Paradise, NV | 1.1% | ||
30 | Denver-Aurora, CO | 1.0% | ||
31 | Myrtle Beach-Conway-North Myrtle Beach, SC | 1.0% | ||
Areas which account for 1% or greater of total GAAP base rent(3) | 77.5% | |||
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Tenant Industry Diversification
9/30/2008
% of Annualized | ||||
GAAP Base Rent at | ||||
Industry Category | 9/30/2008(1) | |||
Finance/Insurance | 15.0 | % | ||
Food | 9.9 | % | ||
Energy | 9.8 | % | ||
Technology | 9.0 | % | ||
Automotive | 8.7 | % | ||
Aerospace/Defense | 6.4 | % | ||
Consumer Products/Other | 5.6 | % | ||
Media/Advertising | 5.3 | % | ||
Transportation/Logistics | 4.7 | % | ||
Healthcare | 4.7 | % | ||
Service | 4.4 | % | ||
Construction Materials | 2.4 | % | ||
Retail Department & Discount | 2.2 | % | ||
Printing/Production | 2.1 | % | ||
Telecommunications | 1.9 | % | ||
Other | 1.6 | % | ||
Real Estate | 1.4 | % | ||
Apparel | 1.4 | % | ||
Retail — Specialty | 1.3 | % | ||
Security | 1.0 | % | ||
Retail — Electronics | 1.0 | % | ||
Health/Fitness | 0.1 | % | ||
Total(2) | 100.0 | % | ||
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Other Revenue Data
9/30/2008
Annualized GAAP | ||||||||
Base Rent at 9/30/08 | ||||||||
($000)(1) | Percentage | |||||||
Asset Class | ||||||||
Office | $ | 279,140 | 74.2 | % | ||||
Industrial | $ | 68,772 | 18.3 | % | ||||
Retail | $ | 28,184 | 7.5 | % | ||||
$ | 376,096 | 100.0 | % | |||||
Credit Rating | ||||||||
Investment Grade | $ | 197,712 | 52.6 | % | ||||
Non-Investment Grade | $ | 55,528 | 14.8 | % | ||||
Unrated | $ | 122,856 | 32.6 | % | ||||
$ | 376,096 | 100.0 | % | |||||
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Top 10 Tenants or Guarantors
9/30/2008
Sq. Ft. Leased as a | Annualized | Percentage of | ||||||||||||||||||
Percent of | GAAP Base | Annualized GAAP | ||||||||||||||||||
Number of | Consolidated | Rent at | Base Rent at | |||||||||||||||||
Tenant or Guarantor | Leases | Sq. Ft. Leased | Portfolio(2) | 9/30/08 ($000)(1) | 9/30/2008(1) (2) | |||||||||||||||
Raytheon Company | 2 | 690,595 | 1.7 | % | $ | 11,720 | 3.1 | % | ||||||||||||
Bank of America | 11 | 735,253 | 1.8 | % | 10,408 | 2.8 | % | |||||||||||||
Baker Hughes, Inc. | 2 | 720,221 | 1.7 | % | 9,320 | 2.5 | % | |||||||||||||
Sanofi-aventis U.S., Inc. (Aventis Inc. and Aventis Pharma Holding GmbH) | 1 | 206,593 | 0.5 | % | 8,840 | 2.4 | % | |||||||||||||
Dana Corporation | 6 | 1,902,414 | 4.6 | % | 8,300 | 2.2 | % | |||||||||||||
Federal Express Corporation | 3 | 702,976 | 1.7 | % | 8,164 | 2.2 | % | |||||||||||||
Safeway Stores, Inc. | 12 | 481,344 | 1.2 | % | 8,000 | 2.1 | % | |||||||||||||
Safeway Stores, Inc. | 1 | 371,392 | 0.9 | % | 7,968 | 2.1 | % | |||||||||||||
Harcourt, Inc. | 2 | 915,098 | 2.2 | % | 7,164 | 1.9 | % | |||||||||||||
Morgan, Lewis & Bockius, LLC (3) | 1 | 293,170 | 0.7 | % | 6,840 | 1.8 | % | |||||||||||||
41 | 7,019,056 | 17.1 | % | $ | 86,724 | 23.1 | % | |||||||||||||
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Property Leases and Vacancies — Consolidated Portfolio — 9/30/08
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | or Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||||||||||||||
2008 | 12/19/2008 | 10 John St. | Clinton | CT | — | Unilever Supply Chain, Inc. (Unilever United States, Inc.) | 1972 | 41,188 | 812 | 4,080 | 0 | |||||||||||||||||||||
12/31/2008 | 1500 Hughes Way | Long Beach | CA | — | Raytheon Company | 1981 | 490,054 | 16,988 | 10,040 | 9,291 | ||||||||||||||||||||||
2009 | 3/31/2009 | 5757 Decatur Blvd. | Indianapolis | IN | — | Damar Services, Inc. | 2002 | 5,756 | 40 | 40 | 10 | |||||||||||||||||||||
6277 Sea Harbor Dr. | Orlando | FL | — | Harcourt Brace Jovanovich, Inc. | 1984 | 355,840 | 4,644 | 3,736 | 3,735 | |||||||||||||||||||||||
4/30/2009 | 5550 Tech Center Dr. | Colorado Springs | CO | — | Federal Express Corporation | 2006 | 61,690 | 840 | 748 | 0 | ||||||||||||||||||||||
8/31/2009 | 1311 Broadfield Blvd. | Houston | TX | — | Newpark Drilling Fluids, Inc. (Newpark Resources, Inc.) | 2000 | 52,731 | 1,128 | 1,136 | 0 | ||||||||||||||||||||||
2706 Media Center Dr. | Los Angeles | CA | — | Sony Electronics, Inc. | 2000 | 20,203 | 280 | 272 | 0 | |||||||||||||||||||||||
9/15/2009 | 15375 Memorial Dr. | Houston | TX | — | BP America Production Company | 1985 | 327,325 | 3,600 | 4,252 | 0 | ||||||||||||||||||||||
9/30/2009 | 100 Light St. | Baltimore | MD | — | Legg Mason Tower, Inc. | 1973 | 371,392 | 7,968 | 7,968 | 0 | ||||||||||||||||||||||
10/31/2009 | 10300 Kincaid Dr. | Fishers | IN | — | Bank One Indiana, N.A. | 1999 | 193,000 | 3,380 | 2,776 | 0 | ||||||||||||||||||||||
11/30/2009 | 5724 West Las Positas Blvd. | Pleasanton | CA | — | NK Leasehold | 1984 | 40,914 | 828 | 680 | 0 | ||||||||||||||||||||||
12/31/2009 | 1701 Market St. | Philadelphia | PA | (6) | Sun National Bank | 1957/1997 | 5,315 | 212 | 212 | 0 | ||||||||||||||||||||||
400 Butler Farm Rd. | Hampton | VA | — | Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) | 1999 | 100,632 | 1,368 | 1,304 | 0 | |||||||||||||||||||||||
2010 | 1/14/2010 | 421 Butler Farm Rd. | Hampton | VA | — | Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) | 2000 | 56,515 | 768 | 720 | 0 | |||||||||||||||||||||
1/31/2010 | 4848 129th East Ave. | Tulsa | OK | — | Metris Direct (Metris Companies, Inc.) | 2000 | 101,100 | 1,308 | 1,308 | 0 | ||||||||||||||||||||||
389-399 Interpace Hwy. | Parsippany | NJ | — | Sanofi-aventis U.S., Inc. (Aventis Inc. and Aventis Pharma Holding GmbH) | 1999 | 206,593 | 9,016 | 8,840 | 0 | |||||||||||||||||||||||
2/10/2010 | 130 East Shore Dr. | Glen Allen | VA | — | Capital One Services, Inc. | 2000 | 79,675 | 1,028 | 1,072 | 1,070 | ||||||||||||||||||||||
2/28/2010 | 9950 Mayland Dr. | Richmond | VA | — | Circuit City Stores, Inc. | 1990 | 288,000 | 2,860 | 2,792 | 4,079 | ||||||||||||||||||||||
3/31/2010 | 120 East Shore Dr. | Glen Allen | VA | — | Capital One Services, Inc. | 2000 | 77,045 | 1,000 | 1,008 | 1,042 | ||||||||||||||||||||||
7/31/2010 | 350 Pine St. | Beaumont | TX | — | Honeywell International, Inc. | 1981 | 7,045 | 108 | 108 | 0 | ||||||||||||||||||||||
10/31/2010 | 12209 West Markham St. | Little Rock | AR | — | Entergy Arkansas, Inc. | 1980 | 36,311 | 236 | 236 | 237 | ||||||||||||||||||||||
13430 North Black Canyon Fwy. | Phoenix | AZ | — | Bull HN Information Systems, Inc. | 1981/1982 | 42,320 | 724 | 700 | 0 | |||||||||||||||||||||||
11/30/2010 | 6200 Northwest Pkwy. | San Antonio | TX | — | United Healthcare Services, Inc. | 2000 | 142,500 | 1,640 | 1,620 | 1,968 | ||||||||||||||||||||||
12/31/2010 | 100 Barnes Rd. | Wallingford | CT | — | 3M Company | 1978/1985/1990/1993 | 44,400 | 628 | 604 | 475 | ||||||||||||||||||||||
2011 | 2/28/2011 | 4200 RCA Blvd. | Palm Beach Gardens | FL | — | The Wackenhut Corporation | 1996 | 96,118 | 1,812 | 1,812 | 2,402 | |||||||||||||||||||||
3/31/2011 | 1311 Broadfield Blvd. | Houston | TX | — | Transocean Offshore Deepwater Drilling, Inc. (Transocean Sedco Forex, Inc.) | 2000 | 103,260 | 2,284 | 2,276 | 0 | ||||||||||||||||||||||
9/30/2011 | 200 Lucent Ln. | Cary | NC | — | Lucent Technologies, Inc. | 1999 | 124,944 | 2,148 | 2,056 | 0 | ||||||||||||||||||||||
11/30/2011 | 207 Mockingbird Ln. | Johnson City | TN | — | Sun Trust Bank | 1979 | 63,800 | 676 | 756 | 675 | ||||||||||||||||||||||
12/20/2011 | 15 Nijborg | 3927 DA Renswoude | The Netherlands | — | AS Watson (Health and Beauty Continental Europe) BV | 1993/1994 | 17,610 | 376 | 376 | 0 | ||||||||||||||||||||||
12/31/2011 | 2050 Roanoke Rd. | Westlake | TX | — | Daimler Chrysler Services North America, LLC | 2001 | 130,290 | 3,660 | 3,456 | 0 | ||||||||||||||||||||||
2012 | 1/31/2012 | 26210 and 26220 Enterprise Court | Lake Forest | CA | — | Apria Healthcare, Inc. (Apria Healthcare Group, Inc.) | 2001 | 100,012 | 1,864 | 1,792 | 0 | |||||||||||||||||||||
4000 Johns Creek Pkwy. | Suwanee | GA | — | Kraft Foods North America, Inc. | 2001 | 73,264 | 1,384 | 1,384 | 0 | |||||||||||||||||||||||
1275 Northwest 128th St. | Clive | IA | — | Principal Life Insurance Company | 2004 | 61,180 | 800 | 800 | 935 | |||||||||||||||||||||||
3/31/2012 | 1701 Market St. | Philadelphia | PA | (6) | Car-Tel Communications, Inc. | 1957/1997 | 1,220 | 48 | 48 | 0 | ||||||||||||||||||||||
2300 Litton Ln. | Hebron | KY | — | Zwicker & Associates, P.C. | 1986/1996 | 49,590 | 152 | 188 | 0 | |||||||||||||||||||||||
3940 South Teller St. | Lakewood | CO | — | Travelers Express Company, Inc. | 2002 | 68,165 | 1,168 | 864 | 1,295 | |||||||||||||||||||||||
6/30/2012 | 275 South Valencia Ave. | Brea | CA | — | Bank of America NT & SA | 1983 | 637,503 | 8,712 | 8,796 | 0 | ||||||||||||||||||||||
8/31/2012 | 2300 Litton Ln. | Hebron | KY | — | AGC Automotive Americas Company (AFG Industries, Inc.) | 1986/1996 | 21,542 | 204 | 204 | 0 | ||||||||||||||||||||||
5757 Decatur Blvd. | Indianapolis | IN | — | Allstate Insurance Company | 2002 | 84,200 | 1,372 | 1,548 | 0 | |||||||||||||||||||||||
10/31/2012 | 4455 American Way | Baton Rouge | LA | — | Bell South Mobility, Inc. | 1997 | 70,100 | 1,080 | 1,112 | 1,207 | ||||||||||||||||||||||
11/7/2012 | 2706 Media Center Dr. | Los Angeles | CA | — | Playboy Enterprises, Inc. | 2000 | 63,049 | 1,444 | 1,256 | 0 |
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Property Leases and Vacancies — Consolidated Portfolio — 9/30/08
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | or Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||
11/14/2012 | 2211 South 47th St. | Phoenix | AZ | — | Avnet, Inc. | 1997 | 176,402 | 2,204 | 2,260 | 0 | ||||||||||||||||||||||
12/31/2012 | 200 Executive Blvd. S | Southington | CT | — | Hartford Fire Insurance Company | 1984 | 153,364 | 1,680 | 1,624 | 0 | ||||||||||||||||||||||
2013 | 1/31/2013 | 12600 Gateway Blvd. | Fort Meyers | FL | — | Gartner, Inc. | 1998 | 62,400 | 1,080 | 1,092 | 0 | |||||||||||||||||||||
2300 Litton Ln. | Hebron | KY | — | FTJ FundChoice, LLC | 1986/1996 | 9,164 | 52 | 48 | 0 | |||||||||||||||||||||||
3476 Stateview Blvd. | Fort Mill | SC | — | Wells Fargo Home Mortgage, Inc. | 2004 | 169,083 | 3,016 | 3,072 | 0 | |||||||||||||||||||||||
810 & 820 Gears Rd. | Houston | TX | — | IKON Office Solutions, Inc. | 2000 | 157,790 | 2,228 | 2,252 | 0 | |||||||||||||||||||||||
3/31/2013 | 3165 McKelvey Rd. | Bridgeton | MO | — | BJC Health System | 1981 | 52,994 | 384 | 528 | 0 | ||||||||||||||||||||||
8900 Freeport Pkwy. | Irving | TX | — | Nissan Motor Acceptance Corporation (Nissan North America, Inc.) | 2003 | 268,445 | 4,748 | 4,888 | 0 | |||||||||||||||||||||||
4/30/2013 | 1900 L. Don Dodson Dr. | Bedford | TX | — | Transamerica Life Insurance Company | 1984 | 59,285 | 0 | 928 | 0 | ||||||||||||||||||||||
Sandlake Rd./Kirkman Rd. | Orlando | FL | — | Lockheed Martin Corporation | 1982 | 184,000 | 960 | 1,868 | 960 | |||||||||||||||||||||||
5/31/2013 | 6303 Barfield Rd. | Atlanta | GA | — | International Business Machines Corporation (Internet Security Systems, Inc.) | 2000/2001 | 238,600 | 4,628 | 4,880 | 0 | ||||||||||||||||||||||
859 Mount Vernon Hwy. | Atlanta | GA | — | International Business Machines Corporation (Internet Security Systems, Inc.) | 2004 | 50,400 | 1,192 | 1,020 | 0 | |||||||||||||||||||||||
6/30/2013 | 2210 Enterprise Dr. | Florence | SC | (6) | Washington Mutual Home Loans, Inc. | 1998 | 177,747 | 1,748 | 1,748 | 0 | ||||||||||||||||||||||
8/31/2013 | 288 North Broad St. | Elizabeth | NJ | — | Bank of America | 1982 | 30,000 | 636 | 480 | 367 | ||||||||||||||||||||||
656 Plainsboro Rd. | Plainsboro | NJ | — | Bank of America (Bank of America Corporation) | 1983 | 4,060 | 128 | 92 | 70 | |||||||||||||||||||||||
9/30/2013 | 9200 South Park Center Loop | Orlando | FL | (6) | Corinthian Colleges, Inc. | 2003 | 59,927 | 1,208 | 1,160 | 0 | ||||||||||||||||||||||
11/30/2013 | 1110 Bayfield Dr. | Colorado Springs | CO | — | Honeywell International, Inc. | 1980/1990/2002 | 166,575 | 1,636 | 1,600 | 1,713 | ||||||||||||||||||||||
12/13/2013 | 3333 Coyote Hill Rd. | Palo Alto | CA | — | Xerox Corporation | 1973/1975/1982 | 202,000 | 3,500 | 3,392 | 0 | ||||||||||||||||||||||
12/31/2013 | 2550 Interstate Dr. | Harrisburg | PA | — | New Cingular Wireless PCS, LLC | 1998 | 81,859 | 1,780 | 1,868 | 0 | ||||||||||||||||||||||
2014 | 1/31/2014 | 1701 Market St. | Philadelphia | PA | — | Morgan, Lewis & Bockius, LLC | 1957/1997 | 293,170 | 4,464 | 4,464 | 5,149 | |||||||||||||||||||||
6226 West Sahara Ave. | Las Vegas | NV | — | Nevada Power Company | 1982 | 282,000 | 7,736 | 4,008 | 2,754 | |||||||||||||||||||||||
3/15/2014 | 101 East Erie St. | Chicago | IL | — | Draftfcb, Inc. (Interpublic Group of Companies, Inc.) | 1986 | 230,684 | 4,260 | 5,132 | 0 | ||||||||||||||||||||||
5/31/2014 | 3480 Stateview Blvd. | Fort Mill | SC | — | Wells Fargo Bank N.A. | 2004 | 169,218 | 3,408 | 3,460 | 0 | ||||||||||||||||||||||
7/31/2014 | 16676 Northchase Dr. | Houston | TX | — | Anadarko Petroleum Corporation | 2003 | 101,111 | 1,608 | 1,628 | 0 | ||||||||||||||||||||||
350 Pine St. | Beaumont | TX | — | Entergy Gulf States, Inc. | 1981 | 125,406 | 1,064 | 1,264 | 0 | |||||||||||||||||||||||
9/30/2014 | 333 Mt. Hope Ave. | Rockway | NJ | — | BASF Corporation | 1981/2002/2004 | 95,500 | 2,244 | 2,124 | 0 | ||||||||||||||||||||||
10/31/2014 | 1409 Centerpoint Blvd. | Knoxville | TN | — | Alstom Power, Inc. | 1997 | 84,404 | 1,568 | 1,620 | 0 | ||||||||||||||||||||||
2800 Waterford Lake Dr. | Midlothian | VA | — | Alstom Power, Inc. | 2000 | 99,057 | 1,952 | 2,016 | 0 | |||||||||||||||||||||||
700 US Hwy Route 202-206 | Bridgewater | NJ | — | Biovail Pharmaceuticals, Inc. (Biovail Corporation) | 1985/2003/2004 | 115,558 | 2,024 | 2,848 | 0 | |||||||||||||||||||||||
12/14/2014 | 5150 220th Ave. | Issaquah | WA | — | OSI Systems, Inc. (Instrumentarium Corporation) | 1992 | 106,944 | 2,056 | 2,148 | 0 | ||||||||||||||||||||||
22011 Southeast 51st St. | Issaquah | WA | — | OSI Systems, Inc. (Instrumentarium Corporation) | 1987 | 95,600 | 1,888 | 1,936 | 0 | |||||||||||||||||||||||
12/31/2014 | 180 South Clinton St. | Rochester | NY | (6) | Frontier Corporation | 1988/2000 | 226,000 | 2,964 | 2,956 | 0 | ||||||||||||||||||||||
275 Technology Dr. | Canonsburg | PA | — | ANSYS, Inc. | 1996 | 107,872 | 1,240 | 1,376 | 0 | |||||||||||||||||||||||
3535 Calder Ave. | Beaumont | TX | — | Compass Bank | 1977 | 49,639 | 684 | 684 | 0 | |||||||||||||||||||||||
2015 | 1/31/2015 | 26555 Northwestern Hwy. | Southfield | MI | — | Federal-Mogul Corporation | 1963/1965/1988/1989 | 187,163 | 1,160 | 1,420 | 0 | |||||||||||||||||||||
4/30/2015 | 13775 McLearen Rd. | Herndon | VA | — | Equant, Inc. (Equant N.V.) | 1984/1988/1992 | 125,293 | 2,012 | 2,132 | 0 | ||||||||||||||||||||||
6/30/2015 | 389-399 Interpace Hwy. | Parsippany | NJ | — | Cadbury Schweppes Holdings | 1999 | 133,647 | 212 | 212 | 0 | ||||||||||||||||||||||
7/1/2015 | 33 Commercial St. | Foxboro | MA | — | Invensys Systems, Inc. (Siebe, Inc.) | 1982/1987 | 164,689 | 3,436 | 3,436 | 3,024 | ||||||||||||||||||||||
7/31/2015 | 4001 International Pkwy. | Carrollton | TX | — | Motel 6 Operating L.P. (Accor S.A.) | 2003 | 138,443 | 3,160 | 3,268 | 3,612 | ||||||||||||||||||||||
9/27/2015 | 10001 Richmond Ave. | Houston | TX | — | Baker Hughes, Inc. | 1976/1984 | 554,385 | 13,632 | 7,376 | 6,596 | ||||||||||||||||||||||
12645 West Airport Rd. | Sugar Land | TX | — | Baker Hughes, Inc. | 1997 | 165,836 | 3,776 | 1,944 | 1,976 | |||||||||||||||||||||||
9/30/2015 | 500 Olde Worthington Rd. | Westerville | OH | (5) | InVentiv Communications, Inc. | 2000 | 97,000 | 1,112 | 1,256 | 0 |
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Property Leases and Vacancies — Consolidated Portfolio — 9/30/08
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | or Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||
550 Business Center Dr. | Lake Mary | FL | — | JP Morgan Chase Bank, NA | 1999 | 125,920 | 2,992 | 1,744 | 3,103 | |||||||||||||||||||||||
600 Business Center Dr. | Lake Mary | FL | — | JP Morgan Chase Bank, NA | 1996 | 125,155 | 3,092 | 1,660 | 3,203 | |||||||||||||||||||||||
2016 | 3/31/2016 | 13430 North Black Canyon Fwy. | Phoenix | AZ | — | Money Management International | 1981/1982 | 28,710 | 600 | 624 | 0 | |||||||||||||||||||||
4/30/2016 | 11511 Luna Rd. | Farmers Branch | TX | — | Haggar Clothing Company (Texas Holding Clothing Corporation and Haggar Corporation) | 2000 | 180,507 | 2,160 | 3,188 | 2,531 | ||||||||||||||||||||||
2000 Eastman Dr. | Milford | OH | — | Siemens Product Lifecycle Management Software, Inc. | 1991 | 221,215 | 2,488 | 1,824 | 2,426 | |||||||||||||||||||||||
7/31/2016 | 1600 Viceroy Dr. | Dallas | TX | — | Visiting Nurse Association | 1986 | 48,027 | 720 | 688 | 0 | ||||||||||||||||||||||
13430 North Black Canyon Fwy. | Phoenix | AZ | — | Associated Billing Services, LLC | 1981/1982 | 17,767 | 300 | 308 | 0 | |||||||||||||||||||||||
10/31/2016 | 104 & 110 South Front St. | Memphis | TN | — | Hnedak Bobo Group, Inc. | 1871/1988/1999 | 37,229 | 484 | 500 | 0 | ||||||||||||||||||||||
11/30/2016 | 4000 Johns Creek Pkwy. | Suwanee | GA | — | Perkin Elmer Instruments, LLC | 2001 | 13,955 | 220 | 232 | 0 | ||||||||||||||||||||||
12/31/2016 | 37101 Corporate Dr. | Farmington Hills | MI | — | TEMIC Automotive of North America, Inc. | 2001 | 119,829 | 3,072 | 2,440 | 0 | ||||||||||||||||||||||
2017 | 1/31/2017 | 6301 Gaston Ave. | Dallas | TX | — | Wells Fargo | 1970/1981 | 16,431 | 224 | 224 | 0 | |||||||||||||||||||||
2/28/2017 | 4200 RCA Blvd. | Palm Beach Gardens | FL | — | Office Suites Plus Properties, Inc. | 1996 | 18,400 | 420 | 448 | 0 | ||||||||||||||||||||||
4/30/2017 | 555 Dividend Dr. | Coppell | TX | — | Brinks, Inc. | 2002 | 101,844 | 1,860 | 1,916 | 0 | ||||||||||||||||||||||
1315 W. Century Dr. | Louisville | CO | — | Global Healthcare Exchange | 1987 | 106,877 | 168 | 212 | 0 | |||||||||||||||||||||||
9/30/2017 | 9201 East Dry Creek Rd. | Centennial | CO | — | The Shaw Group, Inc. | 2001/2002 | 128,500 | 2,152 | 2,356 | 0 | ||||||||||||||||||||||
2018 | 5/30/2018 | 13651 McLearen Rd. | Herndon | VA | — | US Government | 1987 | 159,664 | 2,952 | 3,384 | 0 | |||||||||||||||||||||
5/31/2018 | 2300 Litton Ln. | Hebron | KY | — | Great American Insurance Company | 1986/1996 | 3,145 | 16 | 16 | 99 | ||||||||||||||||||||||
6/14/2018 | 17 Nijborg | 3927 DA Renswoude | The Netherlands | — | AS Watson (Health and Beauty Continental Europe) BV | 1993/1994 | 114,195 | 3,356 | 2,672 | 0 | ||||||||||||||||||||||
7/31/2018 | 180 Rittenhouse Cir. | Bristol | PA | — | Jones Management Service Company | 1981/1998 | 96,000 | 1,032 | 1,100 | 0 | ||||||||||||||||||||||
9/15/2018 | 295 Chipeta Way | Salt Lake City | UT | — | Northwest Pipeline Corporation | 1982 | 295,000 | 6,320 | 6,320 | 3,463 | ||||||||||||||||||||||
9/30/2018 | 1701 Market St. | Philadelphia | PA | (6) | Brinker Corner Bakery II, LLC | 1957/1997 | 8,070 | 192 | 212 | 0 | ||||||||||||||||||||||
11/30/2018 | 4201 Marsh Ln. | Carrollton | TX | — | Carlson Restaurants Worldwide, Inc. (Carlson Companies, Inc.) | 2003 | 130,000 | 1,888 | 1,976 | 0 | ||||||||||||||||||||||
12/22/2018 | 5200 Metcalf Ave. | Overland Park | KS | — | Swiss Re American Holding Corporation | 1980/1990/2004/2005 | 320,198 | 4,200 | 4,232 | 0 | ||||||||||||||||||||||
2019 | 1/31/2019 | 1600 Viceroy Dr. | Dallas | TX | — | TFC Services (Freeman Decorating Co.) | 1986 | 110,080 | 1,100 | 1,488 | 0 | |||||||||||||||||||||
4/1/2019 | 9201 Stateline Rd. | Kansas City | MO | — | Swiss Re American Holding Corporation | 1963/1973/1985/2003 | 155,925 | 2,100 | 2,100 | 0 | ||||||||||||||||||||||
6/19/2019 | 3965 Airways Blvd. | Memphis | TN | — | Federal Express Corporation | 1982/1983/1985 | 521,286 | 7,356 | 7,012 | 5,375 | ||||||||||||||||||||||
7/31/2019 | 500 Jackson St. | Columbus | IN | — | Cummins, Inc. | 1984 | 390,100 | 4,272 | 4,540 | 4,925 | ||||||||||||||||||||||
10/31/2019 | 10475 Crosspoint Blvd. | Fishers | IN | — | John Wiley & Sons, Inc. | 1999 | 141,047 | 2,396 | 2,268 | 0 | ||||||||||||||||||||||
12/31/2019 | 850-950 Warrenville Rd. | Lisle | IL | (5) | National Louis University | 1985 | 99,329 | 1,276 | 1,676 | 0 | ||||||||||||||||||||||
2020 | 2/14/2020 | 5600 Broken Sound Blvd. | Boca Raton | FL | (6) | Océ Printing Systems USA, Inc. (Oce-USA Holding, Inc.) | 1983/2002 | 136,789 | 2,164 | 2,244 | 0 | |||||||||||||||||||||
7/8/2020 | 1460 Tobias Gadsen Blvd. | Charleston | SC | (6) | Hagemeyer North America, Inc. | 2005 | 50,076 | 764 | 840 | 0 | ||||||||||||||||||||||
2021 | 2/28/2021 | 5550 Britton Pkwy. | Hilliard | OH | (5) | BMW Financial Services NA, LLC | 2006 | 220,966 | 2,304 | 2,624 | 0 | |||||||||||||||||||||
6/30/2021 | 1415 Wyckoff Rd. | Wall | NJ | — | New Jersey Natural Gas Company | 1983 | 157,511 | 2,924 | 2,924 | 4,224 | ||||||||||||||||||||||
11/30/2021 | 29 South Jefferson Rd. | Whippany | NJ | — | CAE SimuFlite, Inc. | 2006 | 76,383 | 2,264 | 2,328 | 2,069 | ||||||||||||||||||||||
2022 | 12/31/2022 | 147 Milk St. | Boston | MA | — | Harvard Vanguard Medical Assoc. | 1910 | 52,337 | 1,532 | 1,680 | 0 | |||||||||||||||||||||
2023 | 3/31/2023 | 6555 Sierra Dr. | Irving | TX | — | TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC) | 1999 | 247,254 | 2,072 | 3,232 | 0 | |||||||||||||||||||||
7/31/2023 | 11201 Renner Blvd. | Lenexa | KS | (6) | Applebee's Services, Inc. (DineEquity, Inc.) | 2007 | 178,000 | 2,944 | 3,272 | 0 | ||||||||||||||||||||||
2025 | 11/30/2025 | 11707 Miracle Hills Dr. | Omaha | NE | — | Infocrossing, LLC (Infocrossing, Inc.) | 1988/1995 | �� | 85,200 | 1,168 | 1,168 | 0 | ||||||||||||||||||||
12/31/2025 | 2005 EastTechnology Cir. | Tempe | AZ | — | (i) Structure, LLC (Infocrossing, Inc.) | 1998 | 60,000 | 1,128 | 1,128 | 0 |
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Property Leases and Vacancies — Consolidated Portfolio — 9/30/08
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | or Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||
NA | NA | 100 Light St. | Baltimore | MD | — | (Available for Lease) | 1973 | 12,648 | 0 | 0 | 0 | |||||||||||||||||||||
160 Clairemont Ave. | Decatur | GA | — | (Available for Lease) | 1983 | 86,917 | 0 | 0 | 0 | |||||||||||||||||||||||
1600 Viceroy Dr. | Dallas | TX | — | (Available for Lease) | 1986 | 54,642 | 0 | 0 | 0 | |||||||||||||||||||||||
1701 Market St. | Philadelphia | PA | — | Parking Operators | 1957/1997 | — | 2,376 | 2,376 | 0 | |||||||||||||||||||||||
1900 L. Don Dodson Dr. | Bedford | TX | — | (Available for Lease) | 1984 | 143,208 | 0 | 0 | 0 | |||||||||||||||||||||||
255 California St. | San Francisco | CA | — | (Available for Lease) | 1959 | 12,435 | 0 | 0 | 0 | |||||||||||||||||||||||
27404 Drake Rd. | Farmington Hills | MI | — | (Available for Lease) | 1999 | 108,499 | 0 | 0 | 0 | |||||||||||||||||||||||
350 Pine St. | Beaumont | TX | — | (Available for Lease) | 1981 | 112,408 | 0 | 0 | 0 | |||||||||||||||||||||||
6301 Gaston Ave. | Dallas | TX | — | (Available for Lease) | 1970/1981 | 67,520 | 0 | 0 | 0 | |||||||||||||||||||||||
848 Main St. & 849 Front St. | Evanston | WY | — | (Available for Lease) | 1983 | 7,608 | 0 | 0 | 0 | |||||||||||||||||||||||
13430 North Black Canyon Fwy. | Phoenix | AZ | — | (Available for Lease) | 1981/1982 | 50,143 | 0 | 0 | 0 | |||||||||||||||||||||||
100 East Shore Dr. | Glen Allen | VA | — | (Available for Lease) | 1999 | 3,263 | 0 | 0 | 0 | |||||||||||||||||||||||
1770 Cartwright Rd. | Irvine | CA | — | (Available for Lease) | 1982 | 44,531 | 0 | 0 | 0 | |||||||||||||||||||||||
King St. | Honolulu | HI | — | (Available for Lease) | 1979/2002 | 6,165 | 0 | 0 | 0 | |||||||||||||||||||||||
Various | Various | 100 Light St. | Baltimore | MD | — | Multi-Tenant | 1973 | 139,200 | 4,552 | 4,552 | 0 | |||||||||||||||||||||
160 Clairemont Ave. | Decatur | GA | — | Multi-Tenant | 1983 | 34,769 | 648 | 648 | 0 | |||||||||||||||||||||||
255 California St. | San Francisco | CA | — | Multi-Tenant | 1959 | 157,492 | 4,204 | 4,576 | 0 | |||||||||||||||||||||||
350 Pine St. | Beaumont | TX | — | Multi-Tenant | 1981 | 180,339 | 2,932 | 3,004 | 0 | |||||||||||||||||||||||
6301 Gaston Ave. | Dallas | TX | — | Multi-Tenant | 1970/1981 | 89,904 | 1,172 | 1,172 | 0 | |||||||||||||||||||||||
848 Main St. & 849 Front St. | Evanston | WY | — | Multi-Tenant | 1983 | 21,892 | 116 | 168 | 0 | |||||||||||||||||||||||
100 East Shore Dr. | Glen Allen | VA | — | Multi-Tenant | 1999 | 64,245 | 1,196 | 1,248 | 0 | |||||||||||||||||||||||
1770 Cartwright Rd. | Irvine | CA | — | Multi-Tenant | 1982 | 104,663 | 2,616 | 2,732 | 0 | |||||||||||||||||||||||
King St. | Honolulu | HI | — | Multi-Tenant | 1979/2002 | 223,898 | 1,444 | 1,380 | 990 | |||||||||||||||||||||||
OFFICE TOTAL/WEIGHTED AVERAGE | 96.0% Leased | 17,791,415 | $ | 290,984 | $ | 279,140 | ||||||||||||||||||||||||||
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Property Leases and Vacancies — Consolidated Portfolio — 9/30/08
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | or Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||
INDUSTRIAL PROPERTIES | ||||||||||||||||||||||||||||||||
2008 | 9/30/2008 | 191 Arrowhead Dr. | Hebron | OH | — | Owens Corning Insulating Systems, LLC | 1999 | 102,960 | 276 | 276 | 0 | |||||||||||||||||||||
12/31/2008 | 1665 Hughes Way | Long Beach | CA | — | Raytheon Company | 1981 | 200,541 | 2,984 | 1,680 | 1,677 | ||||||||||||||||||||||
2009 | 5/31/2009 | 200 Arrowhead Dr. | Hebron | OH | — | Owens Corning Insulating Systems, LLC | 2000 | 401,260 | 1,028 | 984 | 0 | |||||||||||||||||||||
12/31/2009 | 75 North St. | Saugerties | NY | — | Rotron, Inc. (EG&G) | 1979 | 52,000 | 124 | 232 | 122 | ||||||||||||||||||||||
2010 | 4/30/2010 | 2203 Sherrill Dr. | Statesville | NC | — | LA-Z-Boy Greensboro, Inc. (LA-Z-Boy Inc.) | 1999/2002 | 639,600 | 1,648 | 1,904 | 1,813 | |||||||||||||||||||||
12/31/2010 | 1109 Commerce Blvd. | Swedesboro | NJ | — | Linens-n-Things, Inc. | 1998 | 262,644 | 1,260 | 1,260 | 1,300 | ||||||||||||||||||||||
113 Wells St. | North Berwick | ME | — | United Technologies Corporation | 1965/1980 | 820,868 | 2,344 | 2,344 | 1,811 | |||||||||||||||||||||||
2011 | 3/31/2011 | 2455 Premier Dr. | Orlando | FL | — | Walgreen Company | 1980 | 205,016 | 508 | 784 | 508 | |||||||||||||||||||||
5/31/2011 | 291 Park Center Dr. | Winchester | VA | (5) | Kraft Foods North America, Inc. | 2001 | 344,700 | 1,608 | 1,576 | 0 | ||||||||||||||||||||||
9/25/2011 | 3820 Micro Dr. | Millington | TN | (6) | Ingram Micro, L.P (Ingram Micro, Inc.) | 1997 | 701,819 | 2,440 | 2,372 | 0 | ||||||||||||||||||||||
9/30/2011 | 1601 Pratt Ave. | Marshall | MI | — | Joseph Campbell Company | 1979 | 58,300 | 120 | 120 | 0 | ||||||||||||||||||||||
2012 | 8/4/2012 | 101 Michelin Dr. | Laurens | SC | — | CEVA Logistics US, Inc. (TNT Holdings BV) | 1991/1993 | 1,164,000 | 3,296 | 3,304 | 2,619 | |||||||||||||||||||||
7111 Crabb Rd. | Temperance | MI | — | CEVA Logistics US, Inc. (TNT Holdings BV) | 1978/1993 | 744,570 | 2,208 | 2,212 | 1,756 | |||||||||||||||||||||||
10/31/2012 | 43955 Plymouth Oaks Blvd. | Plymouth | MI | — | Tower Automotive Operations USA I, LLC (Tower Automotive Holdings I, LLC) | 1996/1998 | 290,133 | 1,884 | 1,836 | 2,083 | ||||||||||||||||||||||
12/31/2012 | 245 Salem Church Rd. | Mechanicsburg | PA | — | Exel Logistics, Inc. (NFC plc) | 1985 | 252,000 | 868 | 864 | 0 | ||||||||||||||||||||||
2013 | 10/31/2013 | 7150 Exchequer Dr. | Baton Rouge | LA | — | Corporate Express Office Products, Inc. (CEX Holding, Inc.) | 1998/2005 | 79,086 | 460 | 440 | 0 | |||||||||||||||||||||
2014 | 1/2/2014 | Moody Commuter & Tech Park | Moody | AL | — | CEVA Logistics US, Inc. (TNT Holdings BV) | 2004 | 595,346 | 1,052 | 1,052 | 1,054 | |||||||||||||||||||||
1/31/2014 | 1133 Poplar Creek Rd. | Henderson | NC | — | Corporate Express Office Products, Inc. (Buhrmann, N.V.) | 1998/2006 | 196,946 | 824 | 808 | 0 | ||||||||||||||||||||||
12/31/2014 | 3686 South Central Ave. | Rockford | IL | — | Jacobson Warehouse Company, Inc. (Jacobson Distribution Company, Inc. and Jacobson Transportation Company, Inc.) | 1992 | 90,000 | 332 | 316 | 446 | ||||||||||||||||||||||
2015 | 12/31/2015 | 749 Southrock Dr. | Rockford | IL | — | Jacobson Warehouse Company, Inc. (Jacobson Distribution Company, Inc. and Jacobson Transportation Company, Inc.) | 1992 | 150,000 | 452 | 488 | 525 | |||||||||||||||||||||
2016 | 2/28/2016 | 7670 Hacks Cross Rd. | Olive Branch | MS | — | MAHLE Clevite, Inc. (MAHLE Industries, Inc.) | 1989 | 268,104 | 956 | 916 | 0 | |||||||||||||||||||||
3/31/2016 | 19500 Bulverde Rd. | San Antonio | TX | — | Harcourt, Inc. (Harcourt General, Inc.) | 2001 | 559,258 | 3,332 | 3,428 | 0 | ||||||||||||||||||||||
8/31/2016 | 10590 Hamilton Ave. | Cincinnati | OH | — | The Hillman Group, Inc. | 1991/1994/1995/2005 | 247,088 | 792 | 792 | 0 | ||||||||||||||||||||||
9/30/2016 | 900 Industrial Blvd. | Crossville | TN | — | Dana Commercial Vehicle Products, LLC (Dana Limited) | 1989/2006 | 222,200 | 684 | 684 | 0 | ||||||||||||||||||||||
2017 | 2/28/2017 | 3456 Meyers Ave. | Memphis | TN | — | Sears, Roebuck & Company | 1973 | 780,000 | 1,592 | 1,696 | 1,592 | |||||||||||||||||||||
6/30/2017 | 7500 Chavenelle Rd. | Dubuque | IA | — | The McGraw-Hill Companies, Inc. | 2002 | 330,988 | 1,152 | 1,164 | 0 | ||||||||||||||||||||||
9/30/2017 | 250 Swathmore Ave. | High Point | NC | — | Steelcase, Inc. | 2002 | 244,851 | 1,056 | 1,088 | 1,165 | ||||||||||||||||||||||
10/31/2017 | 1420 Greenwood Rd. | McDonough | GA | — | Atlas Cold Storage America, LLC | 2000 | 296,972 | 2,544 | 2,596 | 0 | ||||||||||||||||||||||
2018 | 5/31/2018 | 50 Tyger River Dr. | Duncan | SC | (6) | Plastic Omnium Exteriors, LLC | 2005/2007/2008 | 221,833 | 900 | 900 | 0 | |||||||||||||||||||||
6/30/2018 | 1650-1654 Williams Rd. | Columbus | OH | — | ODW Logistics, Inc. | 1973 | 772,450 | 1,348 | 1,344 | 1,347 | ||||||||||||||||||||||
2019 | 10/17/2019 | 10345 Philipp Pkwy | Streetsboro | OH | — | L'Oreal USA S/D, Inc. (L'Oreal USA, Inc.) | 2004 | 649,250 | 2,292 | 2,612 | 3,149 | |||||||||||||||||||||
2020 | 3/31/2020 | 2425 Hwy. 77 North | Waxahachie | TX | — | James Hardie Building Products, Inc. (James Hardie NV) | 1996/2001 | 425,816 | 3,400 | 3,400 | 0 | |||||||||||||||||||||
6/30/2020 | 3102 Queen Palm Dr. | Tampa | FL | — | Time Customer Service, Inc. (Time, Inc.) | 1986 | 229,605 | 1,112 | 1,276 | 0 | ||||||||||||||||||||||
9/30/2020 | 3350 Miac Cove Rd. | Memphis | TN | — | Mimeo.com, Inc. | 1987 | 107,405 | 376 | 372 | 0 | ||||||||||||||||||||||
12/19/2020 | 1901 Ragu Dr. | Owensboro | KY | — | Unilever Supply Chain, Inc. (Unilever United States, Inc.) | 1975/1979/1995 | 443,380 | 5,252 | 0 | 1,802 | ||||||||||||||||||||||
2021 | 3/30/2021 | 121 Technology Dr. | Durham | NH | — | Heidelberg Web Systems, Inc. | 1986/2002/2003 | 500,500 | 2,076 | 1,996 | 0 | |||||||||||||||||||||
3/31/2021 | 6050 Dana Way | Antioch | TN | — | W.M Wright Company | 1999 | 338,700 | 1,016 | 1,016 | 0 | ||||||||||||||||||||||
5/31/2021 | 477 Distribution Pkwy. | Collierville | TN | — | Federal Express Corporation | 1984/1987/2005 | 120,000 | 480 | 404 | 0 | ||||||||||||||||||||||
11/30/2021 | 2880 Kenny Biggs Rd. | Lumberton | NC | — | Quickie Manufacturing Corporation | 1998/2001/2006 | 423,280 | 1,236 | 1,360 | 0 | ||||||||||||||||||||||
12/31/2021 | 224 Harbor Freight Rd. | Dillon | SC | (6) | Harbor Freight Tools USA, Inc. (Central Purchasing, Inc.) | 2001/2005 | 1,010,859 | 2,980 | 3,092 | 0 |
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Property Leases and Vacancies — Consolidated Portfolio — 9/30/08
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | or Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||
2023 | 4/30/2023 | 3600 Southgate Dr. | Danville | IL | — | The Sygma Network, Inc. (Sysco Corporation) | 2000/2008 | 201,369 | 1,696 | 1,696 | 1,027 | |||||||||||||||||||||
2025 | 6/30/2025 | 10000 Business Blvd. | Dry Ridge | KY | — | Dana Light Axle Products, LLC (Dana Limited) | 1988/1999 | 336,350 | 1,344 | 1,344 | 1,402 | |||||||||||||||||||||
4010 Airpark Dr. | Owensboro | KY | — | Dana Structural Products, LLC (Dana Limited) | 1998/2006 | 211,598 | 1,208 | 1,208 | 829 | |||||||||||||||||||||||
301 Bill Bryan Rd. | Hopkinsville | KY | — | Dana Structural Products, LLC (Dana Limited) | 1989/1999/2000/2005 | 424,904 | 1,688 | 1,688 | 1,512 | |||||||||||||||||||||||
730 North Black Branch Rd. | Elizabethtown | KY | — | Dana Structural Products, LLC (Dana Limited) | 2001 | 167,770 | 536 | 536 | 558 | |||||||||||||||||||||||
750 North Black Branch Rd. | Elizabethtown | KY | — | Dana Structural Products, LLC (Dana Limited) | 1995/2000/2001 | 539,592 | 2,840 | 2,840 | 2,960 | |||||||||||||||||||||||
7/31/2025 | 7005 Cochran Rd. | Glenwillow | OH | — | Royal Appliance Manufacturing Company | 1997 | 458,000 | 1,944 | 2,252 | 2,164 | ||||||||||||||||||||||
2026 | 10/30/2026 | 5001 Greenwood Rd. | Shreveport | LA | — | Libbey Glass, Inc. (Libbey Inc.) | 2006 | 646,000 | 1,940 | 2,164 | 0 | |||||||||||||||||||||
NA | NA | 191 Arrowhead Dr. | Hebron | OH | — | (Available for Lease) | 1999 | 147,040 | 0 | 0 | 0 | |||||||||||||||||||||
250 Rittenhouse Cir. | Bristol | PA | — | (Available for Lease) | 1983/1997 | 255,019 | 0 | 0 | 0 | |||||||||||||||||||||||
3350 Miac Cove Rd. | Memphis | TN | — | (Available for Lease) | 1987 | 33,954 | 0 | 0 | 0 | |||||||||||||||||||||||
34 East Main St. | New Kingstown | PA | — | (Available for Lease) | 1981 | 179,200 | 0 | 0 | 0 | |||||||||||||||||||||||
4425 Purks Rd. | Auburn Hills | MI | — | (Available for Lease) | 1987/1988/1998 | 183,717 | 0 | 0 | 0 | |||||||||||||||||||||||
46600 Port St. | Plymouth | MI | — | (Available for Lease) | 1996 | 134,160 | 0 | 0 | 0 | |||||||||||||||||||||||
6 Doughten Rd. | New Kingstown | PA | (7) | (Available for Lease)(Prior tenant Carolina Logistics Services) | 1989 | 330,000 | 56 | 56 | 0 | |||||||||||||||||||||||
6050 Dana Way | Antioch | TN | — | (Available for Lease) | 1999 | 338,700 | 0 | 0 | 0 | |||||||||||||||||||||||
INDUSTRIAL TOTAL/WEIGHTED AVERAGE | 92.0% Leased | 20,131,701 | $ | 73,544 | $ | 68,772 | ||||||||||||||||||||||||||
B-203
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Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased or | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||||
RETAIL PROPERTIES | ||||||||||||||||||||||||||||||||||
2008 | 10/31/2008 | 1000 US Hwy. 17 | North Myrtle Beach | SC | — | Food Lion, Inc. | 1981 | 43,021 | 144 | 3,668 | 0 | |||||||||||||||||||||||
835 Julian Ave. | Thomasville | NC | — | Food Lion, Inc. | 1983 | 23,767 | 108 | 108 | 0 | |||||||||||||||||||||||||
2009 | 1/31/2009 | 35400 Cowan Rd. | Westland | MI | — | Sam's Real Estate Business Trust | 1987/1997 | 101,402 | 752 | 752 | 0 | |||||||||||||||||||||||
3/31/2009 | 2500 E. Carrier Pkwy. | Grand Prairie | TX | — | Safeway Stores, Inc. | 1984 | 49,349 | 496 | 4,280 | 274 | ||||||||||||||||||||||||
9/30/2009 | 1032 Fort St. Mall | Honolulu | HI | — | Macy's Department Stores, Inc. | 1979/2002 | 85,610 | 988 | 972 | 990 | ||||||||||||||||||||||||
12/31/2009 | 1066 Main St. | Forest Park | GA | — | Bank South, N.A. (Bank of America Corporation) | 1969 | 14,859 | 216 | 188 | 199 | ||||||||||||||||||||||||
201 West Main St. | Cumming | GA | — | Bank South, N.A. (Bank of America Corporation) | 1968/1982 | 14,208 | 216 | 288 | 198 | |||||||||||||||||||||||||
2223 North Druid Hills Rd. | Atlanta | GA | — | Bank South, N.A. (Bank of America Corporation) | 1972 | 6,260 | 120 | 96 | 112 | |||||||||||||||||||||||||
3468 Georgia Hwy. 120 | Duluth | GA | — | Bank South, N.A. (Bank of America Corporation) | 1971 | 9,300 | 144 | 152 | 133 | |||||||||||||||||||||||||
4545 Chamblee — Dunwoody Rd. | Chamblee | GA | — | Bank South, N.A. (Bank of America Corporation) | 1972 | 4,565 | 96 | 76 | 88 | |||||||||||||||||||||||||
4733 Hills & Dales Rd. | Canton | OH | — | Bally's Total Fitness of the Midwest (Bally's Health & Tennis Corporation) | 1987 | 37,214 | 448 | 396 | 0 | |||||||||||||||||||||||||
825 Southway Dr. | Jonesboro | GA | — | Bank South, N.A. (Bank of America Corporation) | 1971 | 4,894 | 84 | 64 | 77 | |||||||||||||||||||||||||
956 Ponce de Leon Ave. | Atlanta | GA | — | Bank South, N.A. (Bank of America Corporation) | 1975 | 3,900 | 84 | 88 | 78 | |||||||||||||||||||||||||
1698 Mountain Industrial Blvd. | Stone Mountain | GA | — | Bank South, N.A. (Bank of America Corporation) | 1973 | 5,704 | 104 | 88 | 95 | |||||||||||||||||||||||||
2010 | 5/31/2010 | 24th St. West & St. John’s Ave. | Billings | MT | — | Safeway Stores, Inc. | 1981 | 40,800 | 188 | 332 | 186 | |||||||||||||||||||||||
7/1/2010 | 1600 East 23rd St. | Chattanooga | TN | — | BI-LO, LLC (Prior tenant The Kroger Company) | 1983 | 42,130 | 128 | 128 | 134 | ||||||||||||||||||||||||
2011 | 5/31/2011 | 18601 Alderwood Mall Blvd. | Lynnwood | WA | — | Toys "R" Us, Inc. | 1981/1993 | 43,105 | 280 | 300 | 279 | |||||||||||||||||||||||
4811 Wesley St. | Greenville | TX | — | Safeway Stores, Inc. | 1985 | 48,492 | 172 | 240 | 171 | |||||||||||||||||||||||||
12535 Southeast 82nd Ave. | Clackamas | OR | — | Toys "R" Us, Inc. | 1981 | 42,842 | 304 | 324 | 298 | |||||||||||||||||||||||||
6910 South Memorial Hwy. | Tulsa | OK | — | Toys "R" Us, Inc. | 1981 | 43,123 | 256 | 272 | 255 | |||||||||||||||||||||||||
9/30/2011 | 928 First Ave. | Rock Falls | IL | — | Rock Falls Country Market, LLC (Rock Island Country Market, LLC) | 1982 | 27,650 | 76 | 96 | 140 | ||||||||||||||||||||||||
12/29/2011 | 13133 Steubner Ave. | Houston | TX | — | The Kroger Company | 1980 | 52,200 | 280 | 404 | 281 | ||||||||||||||||||||||||
2012 | 4/30/2012 | 10415 Grande Ave. | Sun City | AZ | — | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 1982 | 10,000 | 164 | 264 | 0 | |||||||||||||||||||||||
119 North Balboa Rd. | El Paso | TX | — | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 1982 | 10,000 | 164 | 136 | 0 | |||||||||||||||||||||||||
402 East Crestwood Dr. | Victoria | TX | — | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 1982 | 10,000 | 164 | 116 | 0 | |||||||||||||||||||||||||
4121 South Port Ave. | Corpus Christi | TX | — | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 1980 | 10,000 | 164 | 136 | 0 | |||||||||||||||||||||||||
900 South Canal St. | Carlsbad | NM | — | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 1980 | 10,000 | 164 | 104 | 0 | |||||||||||||||||||||||||
901 West Expwy. | McAllen | TX | — | Cafeteria Operators, LP (Furrs Restaurant Group, Inc.) | 1980 | 10,000 | 164 | 164 | 0 | |||||||||||||||||||||||||
5/31/2012 | 12000 East Mississippi Ave. | Aurora | CO | — | Safeway Stores, Inc. | 1981/1996 | 24,000 | 256 | 276 | 257 | ||||||||||||||||||||||||
3451 Alta Mesa Blvd. | Fort Worth | TX | — | Minyard Food Stores, Inc. | 1985 | 44,000 | 304 | 360 | 304 | |||||||||||||||||||||||||
Old Mammoth Rd./Meridian Blvd. | Mammoth Lakes | CA | — | Safeway Stores, Inc. | 1982 | 44,425 | 412 | 576 | 410 | |||||||||||||||||||||||||
11/30/2012 | 101 West Buckingham Rd. | Garland | TX | — | Minyard Food Stores, Inc. | 1982 | 40,000 | 324 | 324 | 326 | ||||||||||||||||||||||||
120 South Waco St. | Hillsboro | TX | — | Brookshire Grocery | 1985 | 35,000 | 160 | 188 | 161 | |||||||||||||||||||||||||
1415 Hwy. 377 East | Granbury | TX | — | The Kroger Company | 1982 | 35,000 | 204 | 316 | 203 | |||||||||||||||||||||||||
205 Homer Rd. | Minden | LA | — | Brookshire Grocery | 1985 | 35,000 | 192 | 284 | 193 |
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Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased or | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||||
2013 | 2/28/2013 | US 221 & Hospital Rd. | Jefferson | NC | — | Food Lion, Inc. | 1981 | 23,000 | 72 | 72 | 73 | |||||||||||||||||||||||
104 Branchwood Shopping Center | Jacksonville | NC | — | Food Lion, Inc. | 1982/1995 | 23,000 | 84 | 112 | 84 | |||||||||||||||||||||||||
291 Talbert Blvd. | Lexington | NC | — | Food Lion, Inc. | 1981 | 23,000 | 140 | 140 | 138 | |||||||||||||||||||||||||
S. Carolina 52/52 Bypass | Moncks Corner | SC | — | Food Lion, Inc. | 1982 | 23,000 | 60 | 124 | 62 | |||||||||||||||||||||||||
3211 West Beverly St. | Staunton | VA | — | Food Lion, Inc. | 1971 | 23,000 | 164 | 164 | 166 | |||||||||||||||||||||||||
7/1/2013 | 1053 Mineral Springs Rd. | Paris | TN | — | The Kroger Company | 1982 | 31,170 | 160 | 212 | 159 | ||||||||||||||||||||||||
302 Coxcreek Pkwy. | Florence | AL | — | The Kroger Company | 1983 | 42,130 | 224 | 312 | 223 | |||||||||||||||||||||||||
10/31/2013 | 1084 East Second St. | Franklin | OH | — | Marsh Supermarkets, Inc. | 1961/1978 | 29,119 | 112 | 156 | 111 | ||||||||||||||||||||||||
130 Midland Ave. | Port Chester | NY | — | Pathmark Stores, Inc. | 1982 | 59,000 | 1,116 | 1,196 | 458 | |||||||||||||||||||||||||
5104 North Franklin Rd. | Lawrence | IN | — | Marsh Supermarkets, Inc. | 1958 | 28,721 | 192 | 192 | 193 | |||||||||||||||||||||||||
Brown Mill Rd./US 601 | Concord | NC | — | Food Lion, Inc. | 1983 | 32,259 | 196 | 164 | 197 | |||||||||||||||||||||||||
Little Rock Rd./Tuckaseegee Rd. | Charlotte | NC | — | Food Lion, Inc. | 1982/1997 | 33,640 | 96 | 152 | 98 | |||||||||||||||||||||||||
2014 | 3/31/2014 | 1642 Williams Ave. | Grants Pass | OR | — | Safeway Stores, Inc. | 1984 | 33,770 | 292 | 216 | 162 | |||||||||||||||||||||||
Bisbee Naco Hwy. & Hwy. 92 | Bisbee | AZ | — | Safeway Stores, Inc. | 1984 | 30,181 | 272 | 204 | 152 | |||||||||||||||||||||||||
N.E.C. 45th St./Lee Blvd. | Lawton | OK | — | Associated Wholesale Grocers Inc. | 1984 | 30,757 | 332 | 76 | 185 | |||||||||||||||||||||||||
Grant Rd. & Craycroft Road | Tucson | AZ | — | Safeway Stores, Inc. | 1983 | 37,268 | 364 | 304 | 202 | |||||||||||||||||||||||||
224th St. & Meridan Ave. | Graham | WA | — | Safeway Stores, Inc. | 1984 | 44,718 | 412 | 384 | 229 | |||||||||||||||||||||||||
400 East Meridian Ave. | Milton | WA | — | Safeway Stores, Inc. | 1984 | 44,718 | 476 | 416 | 264 | |||||||||||||||||||||||||
228th Ave., Northeast | Redmond | WA | — | Safeway Stores, Inc. | 1984 | 44,718 | 504 | 508 | 279 | |||||||||||||||||||||||||
4512 North Market St. | Spokane | WA | — | Safeway Stores, Inc. | 1984 | 38,905 | 376 | 264 | 208 | |||||||||||||||||||||||||
2015 | 1/25/2015 | 3711 Gateway Dr. | Eau Claire | WI | — | Kohl's Department Stores, Inc. | 1994 | 76,164 | 468 | 464 | 487 | |||||||||||||||||||||||
�� | 1/31/2015 | 1700 State Route 160 | Port Orchard | WA | — | Save-A-Lot, Ltd. | 1983 | 16,037 | 80 | 80 | 97 | |||||||||||||||||||||||
2017 | 3/31/2017 | 1610 South Westmoreland Ave. | Dallas | TX | — | Malone's Food Stores | 1960 | 68,024 | 360 | 480 | 376 | |||||||||||||||||||||||
4/30/2017 | 2401 Wooton Pkwy. | Rockville | MD | — | GFS Realty, Inc. (Giant Food, Inc.) | 1977 | 51,682 | 116 | 152 | 92 | ||||||||||||||||||||||||
11/30/2017 | 10340 U.S. 19 | Port Richey | FL | — | Kingswere Furniture | 1980 | 53,820 | 0 | 0 | 400 | ||||||||||||||||||||||||
2018 | 2/26/2018 | 4831 Whipple Ave., Northwest | Canton | OH | — | Best Buy Company, Inc. | 1995 | 46,350 | 464 | 468 | 465 | |||||||||||||||||||||||
399 Peachwood Centre Dr. | Spartanburg | SC | — | Best Buy Company, Inc. | 1996 | 45,800 | 396 | 396 | 395 | |||||||||||||||||||||||||
12/31/2018 | 1150 West Carl Sandburg Dr. | Galesburg | IL | — | Kmart Corporation | 1992 | 94,970 | 696 | 328 | 0 | ||||||||||||||||||||||||
12080 Carmel Mountain Rd. | San Diego | CA | — | Sears Holding Corporation | 1993 | 107,210 | 788 | 752 | 0 | |||||||||||||||||||||||||
21082 Pioneer Plaza Dr. | Watertown | NY | — | Kmart Corporation | 1993 | 120,727 | 1,164 | 480 | 0 | |||||||||||||||||||||||||
255 Northgate Dr. | Manteca | CA | — | Kmart Corporation | 1993 | 107,489 | 1,236 | 556 | 0 | |||||||||||||||||||||||||
5350 Leavitt Rd. | Lorain | OH | — | Kmart Corporation | 1993 | 193,193 | 1,752 | 732 | 0 | |||||||||||||||||||||||||
97 Seneca Trail | Fairlea | WV | — | Kmart Corporation | 1993/1999 | 90,933 | 816 | 348 | 0 | |||||||||||||||||||||||||
2021 | 1/31/2021 | 3040 Josey Ln. | Carrollton | TX | — | Ong's Family Inc. | 1984 | 61,000 | 240 | 404 | 0 | |||||||||||||||||||||||
2028 | 1/31/2028 | 2010 Apalachee Pkwy. | Tallahassee | FL | — | Kohl's Department Stores, Inc. | 2007 | 102,381 | 400 | 420 | 484 | |||||||||||||||||||||||
8/31/2028 | 9803 Edmonds Way | Edmonds | WA | — | PCC Natural Markets | 1981 | 34,459 | 200 | 200 | 0 |
B-205
Table of Contents
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased or | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||||
NA | NA | 1700 State Route 160 | Port Orchard | WA | — | (Available for Lease) | 1983 | 11,931 | 0 | 0 | 0 | |||||||||||||||||||||||
3621 E Lincoln Way | Cheyenne | WY | — | (Available for Lease) | 1981 | 31,420 | 0 | 0 | 0 | |||||||||||||||||||||||||
5402 4th St. | Lubbock | TX | — | (Available for Lease) | 1978 | 53,820 | 0 | 0 | 0 | |||||||||||||||||||||||||
5544 Atlanta Hwy. | Montgomery | AL | — | (Available for Lease) | 1980/2007 | 60,698 | 0 | 0 | 0 | |||||||||||||||||||||||||
9400 South 755 East | Sandy | UT | — | (Available for Lease) | 1981 | 41,612 | 0 | 0 | 0 | |||||||||||||||||||||||||
Kipling St. & Bowles Ave. | Littleton | CO | — | (Available for Lease) | 1981 | 29,360 | 0 | 0 | 0 | |||||||||||||||||||||||||
RETAIL TOTAL/WEIGHTED AVERAGE | 92.9% Leased | 3,236,974 | 23,340 | 28,184 | ||||||||||||||||||||||||||||||
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE | 93.82% Leased | 41,160,090 | 387,868 | 376,096 | ||||||||||||||||||||||||||||||
(1) | Square foot leased or vacant includes those tenants with month-to-month leases. | |
(2) | Calculated by annualizing the three months ended 9/30/08 cash rent. | |
(3) | Calculated by annualizing the three months ended 9/30/08 GAAP base rent. | |
(4) | Rent at option rate listed for those lease contracts where a set rent in dollars is specified, as it relates to Fixed Rent at Next Option. | |
(5) | Lesser of the noted rent or a function of fair market value such as 100%, 95%, or 90%. | |
(6) | Greater of the noted rent or a function of fair market value such as 100%, 95%, or 90%. | |
(7) | Rents from tenants prior to expiration of lease, prior tenant has vacated. |
B-206
Table of Contents
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased or | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||||
NET LEASE STRATEGIC ASSET FUND PROPERTIES | ||||||||||||||||||||||||||||||||||
2009 | 9/30/2009 | 109 Stevens St. | Jacksonville | FL | (5) | Unisource Worldwide, Inc. | 1959/1967 | 168,800 | 620 | 568 | 0 | |||||||||||||||||||||||
2010 | 8/17/2010 | 904 Industrial Rd. | Marshall | MI | — | Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.) | 1968/1972 | 195,640 | 624 | 624 | 0 | |||||||||||||||||||||||
10/31/2010 | 265 Lehigh St. | Allentown | PA | — | Wachovia Bank N.A. | 1980 | 71,230 | 248 | 572 | 261 | ||||||||||||||||||||||||
5201 West Barraque St. | Pine Bluff | AR | — | Entergy Services, Inc. | 1964/1973 | 27,189 | 192 | 192 | 192 | |||||||||||||||||||||||||
2011 | 5/31/2011 | 1200 Jupiter Rd. | Garland | TX | — | Raytheon Company | 1980 | 278,759 | 1,508 | 2,052 | 1,588 | |||||||||||||||||||||||
7/15/2011 | 19019 North 59th Ave. | Glendale | AZ | — | Honeywell International, Inc. | 1986/1997/2000 | 252,300 | 2,452 | 3,100 | 0 | ||||||||||||||||||||||||
2012 | 4/30/2012 | 3600 Army Post Rd. | Des Moines | IA | (6) | Electronic Data Systems LLC | 2002 | 405,000 | 2,852 | 2,968 | 0 | |||||||||||||||||||||||
5/31/2012 | 101 Creger Dr. | Ft. Collins | CO | — | Lithia Motors | 1982 | 10,000 | 276 | 236 | 0 | ||||||||||||||||||||||||
2013 | 5/31/2013 | 2401 Cherahala Blvd. | Knoxville | TN | — | Advance PCS, Inc. | 2002 | 59,748 | 900 | 900 | 0 | |||||||||||||||||||||||
6/30/2013 | 420 Riverport Rd. | Kingsport | TN | — | American Electric Power | 1981 | 42,770 | 312 | 308 | 310 | ||||||||||||||||||||||||
8555 South River Pkwy. | Tempe | AZ | (6) | ASM Lithography, Inc. (ASM Lithography Holding NV) | 1998 | 95,133 | 2,356 | 2,124 | 0 | |||||||||||||||||||||||||
10/31/2013 | 3943 Denny Ave. | Pascagoula | MS | — | Northrop Grumman Systems Corporation | 1995 | 94,841 | 680 | 680 | 0 | ||||||||||||||||||||||||
12/31/2013 | 120 Southeast Parkway Dr. | Franklin | TN | — | Essex Group, Inc. (United Technologies Corporation) | 1970/1983 | 289,330 | 1,476 | 652 | 735 | ||||||||||||||||||||||||
2014 | 1/31/2014 | 1401 & 1501 Nolan Ryan Parkway | Arlington | TX | — | Siemens Dematic Postal Automation, L.P. | 2003 | 236,547 | 2,460 | 2,724 | 0 | |||||||||||||||||||||||
4/30/2014 | 12000 & 12025 Tech Center Dr. | Livonia | MI | (6) | Kelsey-Hayes Company (TRW Automotive Inc.) | 1987/1988/1990 | 180,230 | 1,988 | 2,072 | 0 | ||||||||||||||||||||||||
6/30/2014 | 70 Mechanic St. | Foxboro | MA | — | Invensys Systems, Inc. (Siebe, Inc.) | 1965/1967/1971 | 251,914 | 0 | (412 | ) | 2,817 | |||||||||||||||||||||||
12/31/2014 | 324 Industrial Park Rd. | Franklin | NC | (5) | SKF USA, Inc. | 1996 | 72,868 | 396 | 396 | 0 | ||||||||||||||||||||||||
2015 | 6/30/2015 | 1901 49th Ave. | Minneapolis | MN | (5) | Owens Corning Roofing and Asphalt, LLC | 2003 | 18,620 | 588 | 588 | 0 | |||||||||||||||||||||||
2500 Patrick Henry Pkwy | McDonough | GA | — | Georgia Power Company | 1999 | 111,911 | 1,476 | 1,136 | 0 | |||||||||||||||||||||||||
2935 Van Vactor Dr. | Plymouth | IN | — | Bay Valley Foods, LLC | 2000/2003 | 300,500 | 780 | 808 | 853 | |||||||||||||||||||||||||
3711 San Gabriel | Mission | TX | — | Voicestream PCS II Corporation (T-Mobile USA, Inc.) | 2003 | 75,016 | 900 | 1,020 | 0 | |||||||||||||||||||||||||
9/27/2015 | 9110 Grogans Mill Rd. | Houston | TX | — | Baker Hughes, Inc. | 1992 | 275,750 | 1,680 | 3,148 | 0 | ||||||||||||||||||||||||
2529 West Thorne Dr. | Houston | TX | — | Baker Hughes, Inc. | 1982/1999 | 65,500 | 1,532 | 836 | 0 | |||||||||||||||||||||||||
2016 | 1/31/2016 | 1600 Eberhardt Rd. | Temple | TX | — | Nextel of Texas | 2001 | 108,800 | 1,524 | 1,616 | 0 | |||||||||||||||||||||||
5/14/2016 | 6455 State Hwy 303 Northeast | Bremerton | WA | — | Nextel West Corporation | 2002 | 60,200 | 1,084 | 1,164 | 0 | ||||||||||||||||||||||||
9/30/2016 | 1440 East 15th St. | Tucson | AZ | — | Cox Communications, Inc. | 1988 | 28,591 | 480 | 548 | 0 | ||||||||||||||||||||||||
11/30/2016 | 736 Addison Rd. | Erwin | NY | (6) | Corning, Inc. | 2006 | 408,000 | 1,112 | 1,272 | 0 | ||||||||||||||||||||||||
2017 | 12/31/2017 | 11411 North Kelly Avenue | Oklahoma City | OK | — | American Golf Corporation | 1991/1996 | 13,924 | 476 | 480 | 0 | |||||||||||||||||||||||
2018 | 3/15/2018 | 601 & 701 Experian Pkwy. | Allen | TX | — | Experian Information Solutions, Inc. (Experian North America) | 1981/1983 | 292,700 | 516 | 3,836 | 0 | |||||||||||||||||||||||
8/31/2018 | 3500 North Loop Rd. | McDonough | GA | — | Litton Loan Servicing, L.P. | 2007 | 62,218 | 1,100 | 1,100 | 0 | ||||||||||||||||||||||||
2019 | 1/31/2019 | 2999 Southwest 6th St. | Redmond | OR | — | Voice Stream PCS I, LLC (T-Mobile USA, Inc.) | 2004 | 77,484 | 1,436 | 1,572 | 0 | |||||||||||||||||||||||
6/28/2019 | 3265 East Goldstone Dr. | Meridian | ID | (6) | Voicestream PCS II Corporation (T-Mobile USA, Inc.) | 2004 | 77,484 | 1,240 | 1,364 | 0 | ||||||||||||||||||||||||
10/31/2019 | 17191 St. Luke’s Way | The Woodlands | TX | — | Montgomery County Management Company, LLC | 2004 | 41,000 | 716 | 964 | 0 | ||||||||||||||||||||||||
9601 Renner Blvd. | Lenexa | KS | (6) | Voicestream PCS II Corporation (T-Mobile USA, Inc.) | 2004 | 77,484 | 1,244 | 1,392 | 0 |
B-207
Table of Contents
Year of | Date of | Year | Annualized | Annualized | Fixed Rent at | |||||||||||||||||||||||||||||
Lease | Lease | Built/Renovated/ | Sq.Ft. Leased or | Cash Rent | GAAP Rent | Next Option | ||||||||||||||||||||||||||||
Expiration | Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Expanded | Available (1) | ($000) (2) | ($000) (3) | ($000) (4) | |||||||||||||||||||||||
2020 | 5/31/2020 | 359 Gateway Dr. | Lavonia | GA | — | TI Group Automotive Systems, LLC (TI Automotive Ltd.) | 2005 | 133,221 | 1,200 | 1,200 | 0 | |||||||||||||||||||||||
6/30/2020 | 10419 North 30th St. | Tampa | FL | — | Time Customer Service, Inc. | 1986 | 132,981 | 1,256 | 1,448 | 0 | ||||||||||||||||||||||||
8/31/2020 | First Park Dr. | Oakland | ME | (6) | Omnipoint Holdings, Inc. (T-Mobile USA, Inc.) | 2005 | 78,610 | 1,240 | 1,148 | 0 | ||||||||||||||||||||||||
11/30/2020 | 11555 University Blvd. | Sugar Land | TX | — | KS Management Services, LLP (St. Luke's Episcopal Health System Corporation) | 2005 | 72,683 | 1,116 | 1,252 | 0 | ||||||||||||||||||||||||
2021 | 10/25/2021 | 6938 Elm Valley Dr. | Kalamazoo | MI | — | Dana Commercial Vehicle Products, LLC (Dana Limited) | 1999/2004 | 150,945 | 1,844 | 1,932 | 0 | |||||||||||||||||||||||
2025 | 7/14/2025 | 590 Ecology Ln. | Chester | SC | — | Owens Corning, Inc. | 2001/2005 | 420,597 | 2,184 | 2,168 | 1,678 | |||||||||||||||||||||||
2026 | 8/31/2026 | 25500 State Hwy 249 | Tomball | TX | — | Parkway Chevrolet, Inc. (R. Durdin, J. Durdin) | 2005 | 77,076 | 1,260 | 1,508 | 0 | |||||||||||||||||||||||
2027 | 4/30/2027 | 2424 Alpine Rd. | Eau Claire | WI | (6) | Silver Spring Gardens, Inc. (Huntsinger Farms, Inc.) | 1993/2004 | 159,000 | 932 | 1,172 | 0 | |||||||||||||||||||||||
NET LEASE STRATEGIC ASSET FUND TOTAL/WEIGHTED AVERAGE | 100.0% Leased | 6,052,594 | 48,256 | 54,428 | ||||||||||||||||||||||||||||||
(1) | Square foot leased or vacant includes those tenants with month-to-month leases. | |
(2) | Calculated by annualizing the three months ended 9/30/08 cash rent. | |
(3) | Calculated by annualizing the three months ended 9/30/08 GAAP base rent. | |
(4) | Rent at option rate listed for those lease contracts where a set rent in dollars is specified, as it relates to Fixed Rent at Next Option. | |
(5) | Lesser of the noted rent or a function of fair market value such as 100%, 95%, or 90%. | |
(6) | Greater of the noted rent or a function of fair market value such as 100%, 95%, or 90%. |
B-208
Table of Contents
Unleveraged Properties by Property Type
9/30/2008
Annualized | Annualized | |||||||||||||||||||||
Original Gross Book | Cash Rent | GAAP Rent | ||||||||||||||||||||
Property Location | City | State | Net Rentable Area | Value ($000) (3) | ($000) (1) | ($000) (2) | ||||||||||||||||
Office | 11201 Renner Blvd. | Lenexa | KS | 178,000 | $ | 39,261 | $ | 2,944 | $ | 3,272 | ||||||||||||
160 Clairemont Ave. | Decatur | GA | 121,686 | $ | 15,928 | $ | 648 | $ | 648 | |||||||||||||
1600 Viceroy Dr. | Dallas | TX | 212,749 | $ | 41,672 | $ | 1,820 | $ | 2,176 | |||||||||||||
1770 Cartwright Rd. | Irvine | CA | 149,194 | $ | 34,046 | $ | 2,616 | $ | 2,732 | |||||||||||||
2300 Litton Ln. | Hebron | KY | 83,441 | $ | 9,581 | $ | 424 | $ | 456 | |||||||||||||
3535 Calder Ave. | Beaumont | TX | 49,639 | $ | 3,909 | $ | 684 | $ | 684 | |||||||||||||
4200 RCA Blvd. | Palm Beach Gardens | FL | 114,518 | $ | 19,151 | $ | 2,232 | $ | 2,260 | |||||||||||||
500 Olde Worthington Rd. | Westerville | OH | 97,000 | $ | 13,839 | $ | 1,112 | $ | 1,256 | |||||||||||||
656 Plainsboro Rd. | Plainsboro | NJ | 4,060 | $ | 808 | $ | 128 | $ | 92 | |||||||||||||
848 Main St. & 849 Front St. | Evanston | WY | 29,500 | $ | 3,339 | $ | 116 | $ | 168 | |||||||||||||
Industrial | 1601 Pratt Ave. | Marshall | MI | 58,300 | $ | 939 | $ | 120 | $ | 120 | ||||||||||||
2425 Hwy. 77 North | Waxahachie | TX | 425,816 | $ | 32,612 | $ | 3,400 | $ | 3,400 | |||||||||||||
250 Rittenhouse Cir. | Bristol | PA | 255,019 | $ | 14,041 | $ | — | $ | — | |||||||||||||
3456 Meyers Ave. | Memphis | TN | 780,000 | $ | 14,910 | $ | 1,592 | $ | 1,696 | |||||||||||||
50 Tyger River Dr. | Duncan | SC | 221,833 | $ | 13,017 | $ | 900 | $ | 900 | |||||||||||||
75 North St. | Saugerties | NY | 52,000 | $ | 1,330 | $ | 124 | $ | 232 | |||||||||||||
7670 Hacks Cross Rd. | Olive Branch | MS | 268,104 | $ | 10,954 | $ | 956 | $ | 916 | |||||||||||||
900 Industrial Blvd. | Crossville | TN | 222,200 | $ | 7,690 | $ | 684 | $ | 684 | |||||||||||||
Retail | 10340 U.S. 19 | Port Richey | FL | 53,820 | $ | 3,040 | $ | — | $ | — | ||||||||||||
104 Branchwood Shopping Center | Jacksonville | NC | 23,000 | $ | 709 | $ | 84 | $ | 112 | |||||||||||||
10415 Grande Ave. | Sun City | AZ | 10,000 | $ | 4,650 | $ | 164 | $ | 264 | |||||||||||||
1066 Main St. | Forest Park | GA | 14,859 | $ | 2,400 | $ | 216 | $ | 188 | |||||||||||||
1084 East Second St. | Franklin | OH | 29,119 | $ | 1,840 | $ | 112 | $ | 156 | |||||||||||||
119 North Balboa Rd. | El Paso | TX | 10,000 | $ | 2,280 | $ | 164 | $ | 136 | |||||||||||||
120 South Waco St. | Hillsboro | TX | 35,000 | $ | 2,280 | $ | 160 | $ | 188 | |||||||||||||
12000 East Mississippi Ave. | Aurora | CO | 24,000 | $ | 3,060 | $ | 256 | $ | 276 | |||||||||||||
12535 Southeast 82nd Ave. | Clackamas | OR | 42,842 | $ | 3,371 | $ | 304 | $ | 324 | |||||||||||||
130 Midland Ave. | Port Chester | NY | 59,000 | $ | 6,760 | $ | 1,116 | $ | 1,196 | |||||||||||||
13133 Steubner Ave. | Houston | TX | 52,200 | $ | 3,490 | $ | 280 | $ | 404 | |||||||||||||
1415 Hwy. 377 East | Granbury | TX | 35,000 | $ | 2,700 | $ | 204 | $ | 316 | |||||||||||||
1610 South Westmoreland Ave. | Dallas | TX | 68,024 | $ | 5,925 | $ | 360 | $ | 480 | |||||||||||||
1642 Williams Ave. | Grants Pass | OR | 33,770 | $ | 2,270 | $ | 292 | $ | 216 | |||||||||||||
1698 Mountain Industrial Blvd. | Stone Mountain | GA | 5,704 | $ | 1,170 | $ | 104 | $ | 88 | |||||||||||||
1700 State Route 160 | Port Orchard | WA | 27,968 | $ | 3,566 | $ | 80 | $ | 80 |
B-209
Table of Contents
Unleveraged Properties by Property Type
9/30/2008
Annualized | Annualized | |||||||||||||||||||||
Original Gross Book | Cash Rent | GAAP Rent | ||||||||||||||||||||
Property Location | City | State | Net Rentable Area | Value ($000) (3) | ($000) (1) | ($000) (2) | ||||||||||||||||
18601 Alderwood Mall Blvd. | Lynnwood | WA | 43,105 | $ | 3,147 | $ | 280 | $ | 300 | |||||||||||||
201 West Main St. | Cumming | GA | 14,208 | $ | 3,390 | $ | 216 | $ | 288 | |||||||||||||
2010 Apalachee Pkwy. | Tallahassee | FL | 102,381 | $ | 3,700 | $ | 400 | $ | 420 | |||||||||||||
205 Homer Rd. | Minden | LA | 35,000 | $ | 3,360 | $ | 192 | $ | 284 | |||||||||||||
2223 North Druid Hills Rd. | Atlanta | GA | 6,260 | $ | 1,450 | $ | 120 | $ | 96 | |||||||||||||
224th St. & Meridan Ave. | Graham | WA | 44,718 | $ | 3,200 | $ | 412 | $ | 384 | |||||||||||||
228th Ave., Northeast | Redmond | WA | 44,718 | $ | 3,910 | $ | 504 | $ | 508 | |||||||||||||
24th St. West & St. John’s Ave. | Billings | MT | 40,800 | $ | 3,500 | $ | 188 | $ | 332 | |||||||||||||
2500 E. Carrier Pkwy. | Grand Prairie | TX | 49,349 | $ | 3,840 | $ | 496 | $ | 4,280 | |||||||||||||
291 Talbert Blvd. | Lexington | NC | 23,000 | $ | 2,460 | $ | 140 | $ | 140 | |||||||||||||
3040 Josey Ln. | Carrollton | TX | 61,000 | $ | 3,055 | $ | 240 | $ | 404 | |||||||||||||
3211 West Beverly St. | Staunton | VA | 23,000 | $ | 1,958 | $ | 164 | $ | 164 | |||||||||||||
3451 Alta Mesa Blvd. | Fort Worth | TX | 44,000 | $ | 4,830 | $ | 304 | $ | 360 | |||||||||||||
3468 Georgia Hwy. 120 | Duluth | GA | 9,300 | $ | 1,950 | $ | 144 | $ | 152 | |||||||||||||
399 Peachwood Centre Dr. | Spartanburg | SC | 45,800 | $ | 4,167 | $ | 396 | $ | 396 | |||||||||||||
400 East Meridian Ave. | Milton | WA | 44,718 | $ | 3,690 | $ | 476 | $ | 416 | |||||||||||||
402 East Crestwood Dr. | Victoria | TX | 10,000 | $ | 1,870 | $ | 164 | $ | 116 | |||||||||||||
4121 South Port Ave. | Corpus Christi | TX | 10,000 | $ | 2,280 | $ | 164 | $ | 136 | |||||||||||||
4512 North Market St. | Spokane | WA | 38,905 | $ | 2,910 | $ | 376 | $ | 264 | |||||||||||||
4545 Chamblee — Dunwoody Rd. | Chamblee | GA | 4,565 | $ | 1,170 | $ | 96 | $ | 76 | |||||||||||||
4811 Wesley St. | Greenville | TX | 48,492 | $ | 2,120 | $ | 172 | $ | 240 | |||||||||||||
4831 Whipple Ave., Northwest | Canton | OH | 46,350 | $ | 4,417 | $ | 464 | $ | 468 | |||||||||||||
5104 North Franklin Rd. | Lawrence | IN | 28,721 | $ | 2,870 | $ | 192 | $ | 192 | |||||||||||||
5544 Atlanta Hwy. | Montgomery | AL | 60,698 | $ | 3,940 | $ | — | $ | — | |||||||||||||
6910 South Memorial Hwy. | Tulsa | OK | 43,123 | $ | 2,879 | $ | 256 | $ | 272 | |||||||||||||
825 Southway Dr. | Jonesboro | GA | 4,894 | $ | 1,120 | $ | 84 | $ | 64 | |||||||||||||
900 South Canal St. | Carlsbad | NM | 10,000 | $ | 2,160 | $ | 164 | $ | 104 | |||||||||||||
901 West Expwy. | McAllen | TX | 10,000 | $ | 2,110 | $ | 164 | $ | 164 | |||||||||||||
956 Ponce de Leon Ave. | Atlanta | GA | 3,900 | $ | 1,160 | $ | 84 | $ | 88 | |||||||||||||
Bisbee Naco Hwy. & Hwy. 92 | Bisbee | AZ | 30,181 | $ | 2,120 | $ | 272 | $ | 204 | |||||||||||||
Grant Rd. & Craycroft Road | Tucson | AZ | 37,268 | $ | 2,830 | $ | 364 | $ | 304 | |||||||||||||
N.E.C. 45th St./Lee Blvd. | Lawton | OK | 30,757 | $ | 2,560 | $ | 332 | $ | 76 | |||||||||||||
Old Mammoth Rd./Meridian Blvd. | Mammoth Lakes | CA | 44,425 | $ | 5,240 | $ | 412 | $ | 576 | |||||||||||||
S. Carolina 52/52 Bypass | Moncks Corner | SC | 23,000 | $ | 1,310 | $ | 60 | $ | 124 |
B-210
Table of Contents
Unleveraged Properties by Property Type
9/30/2008
Annualized | Annualized | |||||||||||||||||||||
Original Gross Book | Cash Rent | GAAP Rent | ||||||||||||||||||||
Property Location | City | State | Net Rentable Area | Value ($000) (3) | ($000) (1) | ($000) (2) | ||||||||||||||||
US 221 & Hospital Rd. | Jefferson | NC | 23,000 | $ | 1,070 | $ | 72 | $ | 72 | |||||||||||||
Total Unleveraged Properties | 4,987,001 | $ | 424,281 | $ | 32,960 | $ | 38,580 | |||||||||||||||
Footnotes | ||
(1) | Calculated by annualizing the three months ended 9/30/2008 cash rent. | |
(2) | Calculated by annualizing the three months ended 9/30/2008 GAAP rent. | |
(3) | Represents original GAAP capitalized costs. |
B-211
Table of Contents
Term Loan Collateral by Property Type
9/30/2008
Term Loan | ||||||||||||||||||||||||||
Outstanding | Original Gross Book | Annualized Cash | Annualized GAAP | |||||||||||||||||||||||
Property Location | City | State | Net Rentable Area | ($000) (4) | Value($000) (3) | Rent 000) (1) | Rent ($000) (2) | |||||||||||||||||||
Office | 100 Light St. | Baltimore | MD | 523,240 | $ | 167,860 | $ | 12,520 | $ | 12,520 | ||||||||||||||||
12209 West Markham St. | Little Rock | AR | 36,311 | $ | 4,010 | $ | 236 | $ | 236 | |||||||||||||||||
13430 North Black Canyon Fwy. | Phoenix | AZ | 138,940 | $ | 23,053 | $ | 1,624 | $ | 1,632 | |||||||||||||||||
147 Milk St. | Boston | MA | 52,337 | $ | 20,074 | $ | 1,532 | $ | 1,680 | |||||||||||||||||
1900 L. Don Dodson Dr. | Bedford | TX | 202,493 | $ | 9,154 | $ | — | $ | 928 | |||||||||||||||||
207 Mockingbird Ln. | Johnson City | TN | 63,800 | $ | 10,120 | $ | 676 | $ | 756 | |||||||||||||||||
26555 Northwestern Hwy. | Southfield | MI | 187,163 | $ | 12,853 | $ | 1,160 | $ | 1,420 | |||||||||||||||||
288 North Broad St. | Elizabeth | NJ | 30,000 | $ | 5,610 | $ | 636 | $ | 480 | |||||||||||||||||
3165 McKelvey Rd. | Bridgeton | MO | 52,994 | $ | 5,850 | $ | 384 | $ | 528 | |||||||||||||||||
3333 Coyote Hill Rd. | Palo Alto | CA | 202,000 | $ | 33,400 | $ | 3,500 | $ | 3,392 | |||||||||||||||||
350 Pine St. | Beaumont | TX | 425,198 | $ | 25,337 | $ | 4,104 | $ | 4,376 | |||||||||||||||||
5550 Tech Center Dr. | Colorado Springs | CO | 61,690 | $ | 6,790 | $ | 840 | $ | 748 | |||||||||||||||||
6277 Sea Harbor Dr. | Orlando | FL | 355,840 | $ | 51,421 | $ | 4,644 | $ | 3,736 | |||||||||||||||||
6301 Gaston Ave. | Dallas | TX | 173,855 | $ | 22,047 | $ | 1,396 | $ | 1,396 | |||||||||||||||||
King St. | Honolulu | HI | 230,063 | $ | 35,931 | $ | 1,444 | $ | 1,380 | |||||||||||||||||
Sandlake Rd./Kirkman Rd. | Orlando | FL | 184,000 | $ | 11,900 | $ | 960 | $ | 1,868 | |||||||||||||||||
Industrial | 10590 Hamilton Ave. | Cincinnati | OH | 247,088 | $ | 9,708 | $ | 792 | $ | 792 | ||||||||||||||||
113 Wells St. | North Berwick | ME | 820,868 | $ | 36,640 | $ | 2,344 | $ | 2,344 | |||||||||||||||||
1650-1654 Williams Rd. | Columbus | OH | 772,450 | $ | 16,459 | $ | 1,348 | $ | 1,344 | |||||||||||||||||
191 Arrowhead Dr. | Hebron | OH | 250,000 | $ | 5,334 | $ | 276 | $ | 276 | |||||||||||||||||
200 Arrowhead Dr. | Hebron | OH | 401,260 | $ | 8,461 | $ | 1,028 | $ | 984 | |||||||||||||||||
2455 Premier Dr. | Orlando | FL | 205,016 | $ | 6,290 | $ | 508 | $ | 784 | |||||||||||||||||
2880 Kenny Biggs Rd. | Lumberton | NC | 423,280 | $ | 15,416 | $ | 1,236 | $ | 1,360 | |||||||||||||||||
3350 Miac Cove Rd. | Memphis | TN | 141,359 | $ | 12,591 | $ | 376 | $ | 372 | |||||||||||||||||
477 Distribution Pkwy. | Collierville | TN | 120,000 | $ | 3,797 | $ | 480 | $ | 404 | |||||||||||||||||
Retail | 1000 US Hwy. 17 | North Myrtle Beach | SC | 43,021 | $ | 1,770 | $ | 144 | $ | 3,668 | ||||||||||||||||
101 West Buckingham Rd. | Garland | TX | 40,000 | $ | 5,380 | $ | 324 | $ | 324 | |||||||||||||||||
1032 Fort St. Mall | Honolulu | HI | 85,610 | $ | 11,147 | $ | 988 | $ | 972 | |||||||||||||||||
1053 Mineral Springs Rd. | Paris | TN | 31,170 | $ | 1,450 | $ | 160 | $ | 212 | |||||||||||||||||
1600 East 23rd St. | Chattanooga | TN | 42,130 | $ | 2,770 | $ | 128 | $ | 128 | |||||||||||||||||
302 Coxcreek Pkwy. | Florence | AL | 42,130 | $ | 3,360 | $ | 224 | $ | 312 | |||||||||||||||||
3621 E Lincoln Way | Cheyenne | WY | 31,420 | $ | 2,930 | $ | — | $ | — | |||||||||||||||||
5402 4th St. | Lubbock | TX | 53,820 | $ | 2,110 | $ | — | $ | — |
B-212
Table of Contents
Term Loan Collateral by Property Type
9/30/2008
Term Loan | ||||||||||||||||||||||||||
Outstanding | Original Gross Book | Annualized Cash | Annualized GAAP | |||||||||||||||||||||||
Property Location | City | State | Net Rentable Area | ($000) (4) | Value($000) (3) | Rent 000) (1) | Rent ($000) (2) | |||||||||||||||||||
835 Julian Ave. | Thomasville | NC | 23,767 | $ | 2,620 | $ | 108 | $ | 108 | |||||||||||||||||
928 First Ave. | Rock Falls | IL | 27,650 | $ | 1,140 | $ | 76 | $ | 96 | |||||||||||||||||
9400 South 755 East | Sandy | UT | 41,612 | $ | 4,880 | $ | — | $ | — | |||||||||||||||||
9803 Edmonds Way | Edmonds | WA | 34,459 | $ | 3,813 | $ | 200 | $ | 200 | |||||||||||||||||
Brown Mill Rd./US 601 | Concord | NC | 32,259 | $ | 1,932 | $ | 196 | $ | 164 | |||||||||||||||||
Little Rock Rd./Tuckaseegee Rd. | Charlotte | NC | 33,640 | $ | 1,610 | $ | 96 | $ | 152 | |||||||||||||||||
Total Term Loan Collateral | 6,863,933 | $ | 197,931 | $ | 607,018 | $ | 46,688 | $ | 52,072 | |||||||||||||||||
Footnotes | ||
(1) | Calculated by annualizing the three months ended 9/30/2008 cash rent. | |
(2) | Calculated by annualizing the three months ended 9/30/2008 GAAP rent. | |
(3) | Represents original GAAP capitalized costs. | |
(4) | Aggregate amount of $197,931 is secured by all properties in the collateral pool. |
B-213
Table of Contents
2009 Mortgage Maturities by Property Type
9/30/2008
Mortgage | Original Gross | Annualized | Annualized | |||||||||||||||||||||||||||||
Net Rentable | Balance at | Maturity | Book Value | Cash Rent | GAAP Rent | |||||||||||||||||||||||||||
Property Location | City | State | Area | Maturity ($000) | Date | ($000) (3) | ($000) (1) | ($000) (2) | ||||||||||||||||||||||||
Office | 1500 Hughes Way | Long Beach | CA | 490,054 | $ | — | 01/2009 | $ | 112,383 | $ | 16,988 | $ | 10,040 | |||||||||||||||||||
15375 Memorial Dr. | Houston | TX | 327,325 | $ | 18,229 | 10/2009 | $ | 45,792 | $ | 3,600 | $ | 4,252 | ||||||||||||||||||||
180 Rittenhouse Cir. | Bristol | PA | 96,000 | $ | 5,228 | 04/2009 | $ | 8,782 | $ | 1,032 | $ | 1,100 | ||||||||||||||||||||
2210 Enterprise Dr. | Florence | SC | 177,747 | $ | 8,445 | 02/2009 | $ | 16,176 | $ | 1,748 | $ | 1,748 | ||||||||||||||||||||
255 California St. | San Francisco | CA | 169,927 | $ | 20,000 | 12/2009 | $ | 53,772 | $ | 4,204 | $ | 4,576 | ||||||||||||||||||||
295 Chipeta Way | Salt Lake City | UT | 295,000 | $ | — | 10/2009 | $ | 55,404 | $ | 6,320 | $ | 6,320 | ||||||||||||||||||||
5724 West Las Positas Blvd. | Pleasanton | CA | 40,914 | $ | 3,808 | 12/2009 | $ | 6,544 | $ | 828 | $ | 680 | ||||||||||||||||||||
Industrial | 1133 Poplar Creek Rd. | Henderson | NC | 196,946 | $ | 3,854 | 05/2009 | $ | 7,442 | $ | 824 | $ | 808 | |||||||||||||||||||
1665 Hughes Way | Long Beach | CA | 200,541 | $ | — | 01/2009 | $ | 18,419 | $ | 2,984 | $ | 1,680 | ||||||||||||||||||||
250 Swathmore Ave. | High Point | NC | 244,851 | $ | 7,741 | 10/2009 | $ | 13,248 | $ | 1,056 | $ | 1,088 | ||||||||||||||||||||
7150 Exchequer Dr. | Baton Rouge | LA | 79,086 | $ | 1,478 | 03/2009 | $ | 4,001 | $ | 460 | $ | 440 | ||||||||||||||||||||
Retail | 35400 Cowan Rd. | Westland | MI | 101,402 | $ | — | 09/2009 | $ | 7,221 | $ | 752 | $ | 752 | |||||||||||||||||||
4733 Hills & Dales Rd. | Canton | OH | 37,214 | $ | — | 02/2009 | $ | 4,422 | $ | 448 | $ | 396 | ||||||||||||||||||||
Total 2009 Mortgage Maturities | 2,457,007 | $ | 68,783 | — | $ | 353,606 | $ | 41,244 | $ | 33,880 | ||||||||||||||||||||||
GRAND TOTAL | 14,307,941 | $ | 266,714 | — | $ | 1,384,905 | $ | 120,892 | $ | 124,532 | ||||||||||||||||||||||
(1) | Calculated by annualizing the three months ended 9/30/2008 cash rent. | |
(2) | Calculated by annualizing the three months ended 9/30/2008 GAAP rent. | |
(3) | Represents original GAAP capitalized costs. |
B-214
Table of Contents
2008 Third Quarter Disposition Summary
Property | Gross Sale Price | Gain Recognized | Month of | |||||||||||||||||||||||
Tenants/Guarantors | Location | Type | ($000) | ($000) | Cash Cap Rate | Disposition | ||||||||||||||||||||
1 GFS Realty, Inc. (Giant Food, Inc.) | Columbia | MD | Retail | $ | 5,000 | $ | 3,023 | 6.0 | % | July | ||||||||||||||||
2 GFS Realty, Inc. (Giant Food, Inc.) | Oxon Hill | MD | Retail | $ | 4,000 | $ | 2,650 | 5.1 | % | July | ||||||||||||||||
3 Citizens Bank of Pennsylvania -13 Properties | Various | PA | Retail | $ | 13,600 | $ | 1,701 | 7.3 | % | Sept | ||||||||||||||||
15 TOTAL DISPOSITIONS | $ | 22,600 | $ | 7,374 | 6.6 | % | ||||||||||||||||||||
B-215
Table of Contents
2008 Third Quarter Acquisition Summary
Estimated | ||||||||||||||||||||||||||||||||||
Estimated | Current | |||||||||||||||||||||||||||||||||
Average Annual | Annual Cash | |||||||||||||||||||||||||||||||||
Property | Basis | GAAP Rent, Net | Average | Rent, Net | Current Cash | |||||||||||||||||||||||||||||
Tenants/Guarantors | Location | Type | ($000) | ($000) | GAAP Yield | ($000) | Yield | Lease Due | ||||||||||||||||||||||||||
1 Applebee’s Services, Inc. (DineEquity, Inc.) | Lenexa | KS | Office | $ | 39,261 | $ | 3,902 | 9.9 | % | $ | 3,510 | 8.9 | % | 07/2023 | ||||||||||||||||||||
2 Global Healthcare Exchange | Louisville | CO | Office | $ | 16,870 | $ | 1,600 | 9.5 | % | $ | 1,251 | 7.4 | % | 04/2017 | ||||||||||||||||||||
2 TOTAL ACQUISITIONS | $ | 56,131 | $ | 5,502 | 9.8 | % | $ | 4,761 | 8.5 | % | ||||||||||||||||||||||||
B-216
Table of Contents
2008 Third Quarter Leasing Summary
New Cash | New GAAP | |||||||||||||||||||
Lease | Rent Per | Rent Per | ||||||||||||||||||
Property | Expiration | Annum | Annum | |||||||||||||||||
Tenants/Guarantors | Location | Type | Date | Sq. Ft. | ($000) | ($000) | ||||||||||||||
1 Advanstar Communication, Inc. | Irvine | CA | Office | 02/2016 | 34,418 | $ | 630 | $ | 630 | |||||||||||
2 Corona Resources, LTD | Dallas | TX | Office | 10/2013 | 690 | $ | 10 | $ | 10 | |||||||||||
3 Fluor Enterprises, Inc. (1) | Long Beach | CA | Office | 02/2014 | 86,610 | $ | 1,871 | $ | 1,992 | |||||||||||
4 Office Suites Plus Properties, Inc. | Decatur | GA | Office | 07/2019 | 18,838 | $ | 405 | $ | 432 | |||||||||||
5 Rubber Duck Creative, LLC | Dallas | TX | Office | 08/2009 | 1,220 | $ | 15 | $ | 15 | |||||||||||
6 Spears & Spears P.C. | Decatur | GA | Office | 12/2013 | 1,937 | $ | 43 | $ | 44 | |||||||||||
6 TOTAL NEW LEASES | 143,713 | $ | 2,974 | $ | 3,123 | |||||||||||||||
New Cash | Prior Cash | New GAAP | Prior GAAP | |||||||||||||||||||||||||
Lease | Rent Per | Rent Per | Rent Per | Rent Per | ||||||||||||||||||||||||
Property | Expiration | Annum | Annum | Annum | Annum | |||||||||||||||||||||||
Tenants/Guarantors | Location | Type | Date | Sq. Ft. | ($000) | ($000) | ($000) | ($000) | ||||||||||||||||||||
1 Aminex Corp. | Dallas | TX | Office | 10/2011 | 874 | $ | 14 | $ | 13 | $ | 14 | $ | 13 | |||||||||||||||
2 CDI Corporation | Beaumont | TX | Office | 06/2009 | 8,726 | $ | 144 | $ | 105 | $ | 105 | $ | 144 | |||||||||||||||
3 Damar Services Inc. | Indianapolis | IN | Office | 03/2009 | 5,756 | $ | 40 | $ | 40 | $ | 40 | $ | 40 | |||||||||||||||
4 East Dallas Lakewood People, Inc. | Dallas | TX | Office | 12/2016 | 10,222 | $ | 158 | $ | 64 | $ | 158 | $ | 64 | |||||||||||||||
5 Jones Management Service Company | Bristol | PA | Office | 07/2018 | 96,000 | $ | 1,032 | $ | 1,032 | $ | 1,102 | $ | 970 | |||||||||||||||
6 Northwest Pipeline Corporation (2) | Salt Lake City | UT | Office | 09/2018 | 295,000 | $ | 3,701 | $ | 6,202 | $ | 3,499 | $ | 6,202 | |||||||||||||||
7 SMS Research & Marketing Services, Inc. | Honolulu | HI | Office | 03/2014 | 5,399 | $ | 62 | $ | 84 | $ | 62 | $ | 84 | |||||||||||||||
8 The Elder and Disability Law Firm of Victoria Collier | Decatur | GA | Office | 09/2014 | 2,419 | $ | 34 | $ | 34 | $ | 54 | $ | 36 | |||||||||||||||
9 The Sygma Network, Inc. | Danville | IL | Industrial | 04/2023 | 201,369 | $ | 1,719 | $ | 933 | $ | 1,719 | $ | 933 | |||||||||||||||
10 Transfair North America International Freight Services, Inc. | Evanston | WY | Office | 07/2009 | 731 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||||||||||
11 Willis Henry Moore dba Pacific and Asian Heritage | Honolulu | HI | Office | 08/2013 | 360 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||||||||||
12 Windell Investments, Inc. | Irvine | CA | Office | 12/2008 | 6,348 | $ | 117 | $ | 117 | $ | 117 | $ | 117 | |||||||||||||||
12 TOTAL LEASE EXTENSIONS | 633,204 | $ | 7,031 | $ | 8,634 | $ | 6,880 | $ | 8,613 | |||||||||||||||||||
18 TOTAL NEW AND RENEWED LEASES | 776,917 | $ | 10,005 | $ | 8,634 | $ | 10,003 | $ | 8,613 | |||||||||||||||||||
(1) | Direct lease with current sub- tenant at property, effective 1/1/09. | |
(2) | Option exercised by tenant effective 10/1/09, debt service during option period reduced from $2,901 to $0. |
B-217
Table of Contents
2008 Third Quarter Debt Summary
Property | Amount | |||||||||||||||||
Tenants/Guarantors | Location | Type | ($000) | Rate | Maturity | |||||||||||||
1 Global Healthcare Exchange | Louisville | CO | Office | $ | 7,545 | 5.83 | % | 01/2012 | ||||||||||
1 TOTAL FINANCING | $ | 7,545 | 5.83 | % | ||||||||||||||
Face | Payoff | |||||||||||||||
Debt | ($000) | ($000) | Rate | Due Date | ||||||||||||
1 Exchangeable Guaranteed Notes | $ | 25,500 | $ | 22,778 | 5.45 | % | 01/2012 | |||||||||
2 Term Loan | $ | 4,489 | $ | 4,489 | 3.05 | % | 06/2009 | |||||||||
3 Term Loan | $ | 1,122 | $ | 1,122 | 5.52 | % | 03/2013 | |||||||||
4 Canton, OH Mortgage | $ | 2,936 | $ | 2,936 | 7.15 | % | Matured | |||||||||
5 Spartanburg, SC Mortgage | $ | 2,438 | $ | 2,438 | 7.15 | % | Matured | |||||||||
6 Irvine, CA Mortgage | $ | 1,391 | $ | 1,391 | 9.34 | % | Matured | |||||||||
7 Columbia, MD Mortgage | $ | 777 | $ | 777 | 8.63 | % | Property Sale | |||||||||
7 TOTAL RETIRED | $ | 38,653 | $ | 35,931 | ||||||||||||
B-218
Table of Contents
Lease Rollover Schedule by Property Type — Cash Basis
9/30/2008
Office | Industrial | Retail | ||||||||||||||||||||||||||||||||||
Net Rentable | Cash Rental | Net Rent | Net Rentable | Cash Rental | Net Rent | Net Rentable | Cash Rental | Net Rent | ||||||||||||||||||||||||||||
Year | Area | Revenue ($000) | PSF | Area | Revenue ($000) | PSF | Area | Revenue ($000) | PSF | |||||||||||||||||||||||||||
2008 | 531,242 | $ | 17,800 | $ | 33.51 | 303,501 | $ | 3,260 | $ | 10.74 | 66,788 | $ | 252 | $ | 3.77 | |||||||||||||||||||||
2009 | 1,534,798 | $ | 24,288 | $ | 15.82 | 453,260 | $ | 1,152 | $ | 2.54 | 337,265 | $ | 3,748 | $ | 11.11 | |||||||||||||||||||||
2010 | 1,081,504 | $ | 19,316 | $ | 17.86 | 1,723,112 | $ | 5,252 | $ | 3.05 | 82,930 | $ | 316 | $ | 3.81 | |||||||||||||||||||||
2011 | 536,022 | $ | 10,956 | $ | 20.44 | 1,309,835 | $ | 4,676 | $ | 3.57 | 257,412 | $ | 1,368 | $ | 5.31 | |||||||||||||||||||||
2012 | 1,559,591 | $ | 22,112 | $ | 14.18 | 2,450,703 | $ | 8,256 | $ | 3.37 | 317,425 | $ | 2,836 | $ | 8.93 | |||||||||||||||||||||
2013 | 1,974,329 | $ | 28,924 | $ | 14.65 | 79,086 | $ | 460 | $ | 5.82 | 371,039 | $ | 2,616 | $ | 7.05 | |||||||||||||||||||||
2014 | 2,182,163 | $ | 39,160 | $ | 17.95 | 882,292 | $ | 2,208 | $ | 2.50 | 305,035 | $ | 3,028 | $ | 9.93 | |||||||||||||||||||||
2015 | 1,817,531 | $ | 34,584 | $ | 19.03 | 150,000 | $ | 452 | $ | 3.01 | 92,201 | $ | 548 | $ | 5.94 | |||||||||||||||||||||
2016 | 667,239 | $ | 10,044 | $ | 15.05 | 1,296,650 | $ | 5,764 | $ | 4.45 | — | $ | — | $ | — | |||||||||||||||||||||
2017 | 372,052 | $ | 4,824 | $ | 12.97 | 1,652,811 | $ | 6,344 | $ | 3.84 | 176,412 | $ | 476 | $ | 2.70 | |||||||||||||||||||||
2018 | 1,126,272 | $ | 19,956 | $ | 17.72 | 994,283 | $ | 2,248 | $ | 2.26 | 806,672 | $ | 7,312 | $ | 9.06 | |||||||||||||||||||||
2019 | 1,417,767 | $ | 18,500 | $ | 13.05 | 649,250 | $ | 2,292 | $ | 3.53 | — | $ | — | $ | — | |||||||||||||||||||||
2020 | 186,865 | $ | 2,928 | $ | 15.67 | 1,206,206 | $ | 10,140 | $ | 8.41 | — | $ | — | $ | — | |||||||||||||||||||||
2021 | 454,860 | $ | 7,492 | $ | 16.47 | 2,393,339 | $ | 7,788 | $ | 3.25 | 61,000 | $ | 240 | $ | 3.93 | |||||||||||||||||||||
2022 | 52,337 | $ | 1,532 | $ | 29.27 | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
2023 | 425,254 | $ | 5,016 | $ | 11.80 | 201,369 | $ | 1,696 | $ | 8.42 | — | $ | — | $ | — | |||||||||||||||||||||
2024 | — | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
2025 | 145,200 | $ | 2,296 | $ | 15.81 | 2,138,214 | $ | 9,560 | $ | 4.47 | — | $ | — | $ | — | |||||||||||||||||||||
2026 | — | $ | — | $ | — | 646,000 | $ | 1,940 | $ | 3.00 | — | $ | — | $ | — | |||||||||||||||||||||
2027 | — | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
2028 | — | $ | — | $ | — | — | $ | — | $ | — | 136,840 | $ | 600 | $ | 4.38 | |||||||||||||||||||||
Total/Weighted Average(1) | 16,065,026 | $ | 269,728 | $ | 16.79 | 18,529,911 | $ | 73,488 | $ | 3.97 | 3,011,019 | $ | 23,340 | $ | 7.75 | |||||||||||||||||||||
(1) | Total shown may differ from detailed amounts due to rounding, and does not include multi-tenant leases. |
B-219
Table of Contents
Lease Rollover Schedule — GAAP Basis
9/30/2008
Total | ||||||||||||
Number of | Annualized | Percentage of | ||||||||||
Leases | GAAP Base | Total Annualized | ||||||||||
Year | Expiring | Rent ($000) | GAAP Base Rent | |||||||||
2008 | 6 | $ | 19,852 | 5.6 | % | |||||||
2009 | 25 | $ | 31,780 | 9.0 | % | |||||||
2010 | 16 | $ | 24,976 | 7.1 | % | |||||||
2011 | 16 | $ | 17,220 | 4.9 | % | |||||||
2012 | 30 | $ | 33,336 | 9.4 | % | |||||||
2013 | 30 | $ | 34,352 | 9.7 | % | |||||||
2014 | 26 | $ | 42,212 | 11.9 | % | |||||||
2015 | 13 | $ | 25,480 | 7.2 | % | |||||||
2016 | 12 | $ | 15,624 | 4.4 | % | |||||||
2017 | 12 | $ | 12,332 | 3.5 | % | |||||||
2018 | 18 | $ | 26,216 | 7.4 | % | |||||||
2019 | 7 | $ | 21,696 | 6.1 | % | |||||||
2020 | 6 | $ | 8,132 | 2.3 | % | |||||||
2021 | 9 | $ | 16,148 | 4.6 | % | |||||||
2022 | 1 | $ | 1,680 | 0.5 | % | |||||||
2023 | 3 | $ | 8,200 | 2.3 | % | |||||||
2024 | — | $ | — | 0.0 | % | |||||||
2025 | 8 | $ | 12,164 | 3.4 | % | |||||||
2026 | 1 | $ | 2,164 | 0.6 | % | |||||||
2027 | — | $ | — | 0.0 | % | |||||||
2028 | 2 | $ | 620 | 0.2 | % | |||||||
Total(1) | 241 | $ | 354,184 | 100.0 | % | |||||||
(1) | Total shown may differ from detailed amounts due to rounding, and does not include multi-tenant leases. |
B-220
Table of Contents
Joint Venture Investments — Proportionate Share
Three and Nine Months Ended September 30, 2008
($000)
Joint Venture Operations- Real Estate | 3 months | 9 months | ||||||
EBITDA | $ | 8,942 | $ | 23,744 | ||||
Interest expense | $ | 3,142 | $ | 8,042 | ||||
Joint Venture Operations- Debt Platform | 3 months | 9 months | ||||||
Interest and other income | $ | 9,094 | $ | 27,698 | ||||
Interest expense | (4,088 | ) | (13,531 | ) | ||||
Other expenses, net | (975 | ) | (1,858 | ) | ||||
Gain on debt repayment | 2,498 | 6,349 | ||||||
Impairment charges | (3,603 | ) | (32,611 | ) | ||||
Net income (loss) | $ | 2,926 | $ | (13,953 | ) | |||
B-221
Table of Contents
Concord Debt Holdings — Investment Summary
9/30/2008
Face | ||||||||||||
Amount | Wtg. Avg. | Wtg. Avg. | ||||||||||
Interest Type(1) | ($000) | Rate (%) | Life(2) | |||||||||
Fixed | $ | 228,533 | 7.26 | % | 6.3 | |||||||
Variable | 675,460 | 6.29 | 1.0 | |||||||||
903,993 | 6.54 | % | 2.3 | |||||||||
Face | ||||||||
Amount | ||||||||
Property Type(1) | ($000) | Percentage | ||||||
Office | $ | 402,684 | 44.5 | % | ||||
Lodging | 340,644 | 37.7 | ||||||
Multi — family | 69,400 | 7.7 | ||||||
Mixed — use | 50,765 | 5.6 | ||||||
Industrial | 25,500 | 2.8 | ||||||
Retail | 15,000 | 1.7 | ||||||
$ | 903,993 | 100.0 | % | |||||
Face | ||||||||
Amount | ||||||||
Loan Type(1) | ($000) | Percentage | ||||||
Whole | $ | 198,344 | 21.9 | % | ||||
B-Notes | 299,816 | 33.2 | ||||||
Mezzanine | 405,833 | 44.9 | ||||||
$ | 903,993 | 100.0 | % | |||||
Footnotes | ||
(1) | Excludes CUSIP Bonds of $204,301. | |
(2) | Assumes initial maturity. |
B-222
Table of Contents
Selected Balance Sheet Account Detail
As of September 30, 2008
($000)
Investments in and advances to non-consolidated entities | $ | 205,021 | ||
Lexington’s “Investments in and advances to non-consolidated entities” line item includes investments in entities which invest in real estate debt securities and net leased properties. A summary is as follows: | ||||
Investment in debt platform | $ | 135,460 | ||
Investment in net lease partnerships | 69,561 | |||
Other assets | $ | 33,824 | ||
The components of other assets are: | ||||
Deposits | $ | 697 | ||
Investments | 15,583 | |||
Equipment | 431 | |||
Prepaids | 6,393 | |||
Other receivables | 6,043 | |||
Other | 4,677 | |||
Accounts payable and other liabilities | $ | 33,974 | ||
The components of accounts payable and other liabilities are: | ||||
Accounts payable and accrued expenses | $ | 12,847 | ||
CIP accruals and other | 3,446 | |||
Taxes | 3,899 | |||
Deferred lease costs | 1,525 | |||
Subordinated notes | 3,074 | |||
Deposits | 1,675 | |||
Escrows | 1,635 | |||
Transaction costs | 2,883 | |||
Derivative liability | 2,990 |
B-223
Table of Contents
Consolidated Properties: Mortgages and Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||
Annual Debt | Balloon | |||||||||||||||||||||||
Debt Balance | Interest | Service | Payment | |||||||||||||||||||||
Property | Footnotes | ($000) | Rate (%) | Maturity(a) | ($000) (d) | ($000) | ||||||||||||||||||
Owensboro, KY | $ | 1,616 | 7.940 | % | 12/2008 | 1,680 | — | |||||||||||||||||
Clinton, CT | 250 | 7.940 | % | 12/2008 | 260 | — | ||||||||||||||||||
Long Beach, CA | 5,472 | 6.250 | % | 01/2009 | 5,643 | — | ||||||||||||||||||
Long Beach, CA | 2,027 | 6.160 | % | 01/2009 | 2,090 | — | ||||||||||||||||||
Florence, SC | 8,519 | 7.500 | % | 02/2009 | 362 | 8,445 | ||||||||||||||||||
Canton, OH | 157 | 9.490 | % | 02/2009 | 162 | — | ||||||||||||||||||
Baton Rouge, LA | 1,511 | 7.375 | % | 03/2009 | 87 | 1,478 | ||||||||||||||||||
Bristol, PA | 5,306 | 7.250 | % | 04/2009 | 285 | 5,228 | ||||||||||||||||||
Henderson, NC | 3,917 | 7.390 | % | 05/2009 | 208 | 3,854 | ||||||||||||||||||
Westland, MI | 645 | 10.500 | % | 09/2009 | 569 | — | ||||||||||||||||||
Houston, TX | (b | ) | 19,065 | 5.810 | % | 10/2009 | 2,032 | 18,229 | ||||||||||||||||
High Point, NC | 7,969 | 5.750 | % | 10/2009 | 695 | 7,741 | ||||||||||||||||||
Salt Lake City, UT | 2,768 | 7.610 | % | 10/2009 | 2,901 | — | ||||||||||||||||||
San Francisco, CA | 21,516 | 3.893 | % | 12/2009 | 2,110 | 20,000 | ||||||||||||||||||
Pleasanton, CA | 4,176 | 10.250 | % | 12/2009 | 727 | 3,808 | ||||||||||||||||||
Richmond, VA | 15,581 | 8.100 | % | 02/2010 | 1,511 | 15,257 | ||||||||||||||||||
Fishers, IN | (b | ) | 13,895 | 5.880 | % | 04/2010 | 1,499 | 12,960 | ||||||||||||||||
Hampton, VA | 6,916 | 8.270 | % | 04/2010 | 677 | 6,758 | ||||||||||||||||||
Hampton, VA | 4,241 | 8.260 | % | 04/2010 | 415 | 4,144 | ||||||||||||||||||
Lorain, OH | (b | ) | 1,222 | 5.540 | % | 07/2010 | 908 | — | ||||||||||||||||
Manteca, CA | (b | ) | 863 | 5.540 | % | 07/2010 | 642 | — | ||||||||||||||||
Watertown, NY | (b | ) | 812 | 5.540 | % | 07/2010 | 603 | — | ||||||||||||||||
Lewisburg, WV | (b | ) | 570 | 5.540 | % | 07/2010 | 424 | — | ||||||||||||||||
San Diego, CA | (b | ) | 550 | 5.540 | % | 07/2010 | 409 | — | ||||||||||||||||
Galesburg, IL | (b | ) | 485 | 5.540 | % | 07/2010 | 360 | — | ||||||||||||||||
Tampa, FL | 5,678 | 6.880 | % | 08/2010 | 485 | 5,495 | ||||||||||||||||||
Irving, TX | (b | ) | 25,891 | 5.880 | % | 10/2010 | 2,432 | 24,454 | ||||||||||||||||
Lake Mary, FL | (b | ) | 12,835 | 5.880 | % | 10/2010 | 1,181 | 12,118 | ||||||||||||||||
Lake Mary, FL | (b | ) | 12,797 | 5.880 | % | 10/2010 | 1,178 | 12,082 | ||||||||||||||||
Herndon, VA | �� | 17,871 | 8.180 | % | 12/2010 | 1,723 | 17,301 | |||||||||||||||||
Parsippany, NJ | (b | ) | 39,476 | 5.860 | % | 03/2011 | 3,472 | 37,047 | ||||||||||||||||
Renswoude, NA | 37,779 | 5.305 | % | 04/2011 | 2,763 | 35,612 | ||||||||||||||||||
Wallingford, CT | 3,331 | 4.926 | % | 05/2011 | 221 | 3,187 | ||||||||||||||||||
Auburn Hills, MI | 6,516 | 7.010 | % | 06/2011 | 637 | 5,918 | ||||||||||||||||||
Plymouth, MI | 4,384 | 7.960 | % | 07/2011 | 421 | 4,171 | ||||||||||||||||||
Winchester, VA | (b | ) | 10,435 | 5.860 | % | 08/2011 | 908 | 9,675 | ||||||||||||||||
Louisville, CO | 7,537 | 5.830 | % | 01/2012 | 544 | 7,195 | ||||||||||||||||||
New Kingston, PA | 6,673 | 7.790 | % | 01/2012 | 678 | 6,101 | ||||||||||||||||||
Mechanicsburg, PA | 4,925 | 7.780 | % | 01/2012 | 500 | 4,503 | ||||||||||||||||||
New Kingston, PA | 3,179 | 7.780 | % | 01/2012 | 323 | 2,906 | ||||||||||||||||||
Milford, OH | (b | ) | 15,575 | 5.860 | % | 02/2012 | 1,822 | 12,686 | ||||||||||||||||
Lake Forest, CA | 10,246 | 7.260 | % | 02/2012 | 901 | 9,708 | ||||||||||||||||||
Fort Worth, TX | (b | ) | 18,819 | 5.510 | % | 05/2012 | 1,280 | 17,823 | ||||||||||||||||
Memphis, TN | 17,234 | 5.247 | % | 05/2012 | 1,181 | 16,222 | ||||||||||||||||||
Raleigh, NC | (b | ) | 12,639 | 5.860 | % | 05/2012 | 647 | 12,543 | ||||||||||||||||
Lakewood, CO | 8,396 | 5.097 | % | 05/2012 | 566 | 7,890 | ||||||||||||||||||
Farmington Hills, MI | (b | ) | 19,340 | 5.860 | % | 09/2012 | 1,500 | 17,724 | ||||||||||||||||
Laurens, SC | (b | ) | 15,955 | 5.870 | % | 09/2012 | 1,396 | 14,022 |
B-224
Table of Contents
Consolidated Properties: Mortgages and Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||
Annual Debt | Balloon | |||||||||||||||||||||||
Debt Balance | Interest | Service | Payment | |||||||||||||||||||||
Property | Footnotes | ($000) | Rate (%) | Maturity(a) | ($000) (d) | ($000) | ||||||||||||||||||
Temperance, MI | (b | ) | 10,696 | 5.870 | % | 09/2012 | 936 | 9,400 | ||||||||||||||||
Baton Rouge, LA | (b | ) | 6,391 | 5.520 | % | 10/2012 | 443 | 5,948 | ||||||||||||||||
San Antonio, TX | 28,340 | 6.080 | % | 10/2012 | 2,260 | 26,025 | ||||||||||||||||||
Plymouth, MI | (b | ) | 11,603 | 5.860 | % | 12/2012 | 1,026 | 10,026 | ||||||||||||||||
Colorado Springs, CO | (b | ) | 11,234 | 5.870 | % | 12/2012 | 887 | 10,272 | ||||||||||||||||
Fort Mill, SC | 10,770 | 6.000 | % | 01/2013 | 839 | 9,904 | ||||||||||||||||||
Centennial, CO | (b | ) | 15,092 | 5.550 | % | 02/2013 | 1,177 | 13,555 | ||||||||||||||||
Los Angeles, CA | (b | ) | 77,468 | 5.860 | % | 05/2013 | 5,361 | 73,071 | ||||||||||||||||
Atlanta, GA | 43,740 | 5.268 | % | 05/2013 | 3,004 | 40,356 | ||||||||||||||||||
Dallas, TX | (b | ) | 39,189 | 5.550 | % | 05/2013 | 2,702 | 36,455 | ||||||||||||||||
Houston, TX | 17,092 | 5.218 | % | 05/2013 | 1,166 | 15,737 | ||||||||||||||||||
Southington, CT | 13,300 | 5.018 | % | 05/2013 | 890 | 12,228 | ||||||||||||||||||
Indianapolis, IN | 9,313 | 5.168 | % | 05/2013 | 633 | 8,580 | ||||||||||||||||||
Fort Meyers, FL | 8,912 | 5.268 | % | 05/2013 | 477 | 8,550 | ||||||||||||||||||
Phoenix, AZ | 18,540 | 6.270 | % | 09/2013 | 1,527 | 16,490 | ||||||||||||||||||
Foxboro, MA | (b | ) | 16,120 | 6.000 | % | 01/2014 | 3,270 | — | ||||||||||||||||
Moody, AL | 7,145 | 4.978 | % | 01/2014 | 493 | 6,350 | ||||||||||||||||||
Logan Township, NJ | (b | ) | 7,265 | 5.870 | % | 04/2014 | 482 | 6,784 | ||||||||||||||||
Clive, IA | 5,719 | 5.139 | % | 05/2014 | 387 | 5,151 | ||||||||||||||||||
Fort Mill, SC | 20,039 | 5.373 | % | 05/2014 | 1,364 | 18,311 | ||||||||||||||||||
Philadelphia, PA | 48,218 | 5.060 | % | 07/2014 | 3,178 | 43,547 | ||||||||||||||||||
Eau Claire, WI | 1,440 | 8.000 | % | 07/2014 | 313 | — | ||||||||||||||||||
3 Properties | (i | ) | 103,511 | 6.150 | % | 09/2014 | 6,366 | 103,511 | ||||||||||||||||
Issaquah, WA | (b | ) | 31,702 | 5.890 | % | 12/2014 | 1,663 | 30,388 | ||||||||||||||||
Canonsburg, PA | (b | ) | 9,072 | 5.550 | % | 12/2014 | 489 | 9,095 | ||||||||||||||||
Chicago, IL | (b | ) | 29,057 | 5.870 | % | 01/2015 | 1,548 | 29,900 | ||||||||||||||||
Carrollton, TX | 13,751 | 5.530 | % | 01/2015 | 993 | 12,022 | ||||||||||||||||||
Herndon, VA | (b | ) | 11,796 | 5.870 | % | 04/2015 | 888 | 10,359 | ||||||||||||||||
Richmond, VA | (b | ) | 19,512 | 5.510 | % | 05/2015 | 1,026 | 18,292 | ||||||||||||||||
Houston, TX | 16,402 | 5.160 | % | 05/2015 | 1,114 | 14,408 | ||||||||||||||||||
Rockaway, NJ | 14,900 | 5.292 | % | 05/2015 | 799 | 14,900 | ||||||||||||||||||
Houston, TX | 12,810 | 5.210 | % | 05/2015 | 874 | 11,265 | ||||||||||||||||||
Fishers, IN | 12,736 | 5.160 | % | 05/2015 | 865 | 11,188 | ||||||||||||||||||
San Antonio, TX | 12,644 | 5.340 | % | 05/2015 | 875 | 11,149 | ||||||||||||||||||
Atlanta, GA | 11,325 | 5.260 | % | 05/2015 | 604 | 10,502 | ||||||||||||||||||
Los Angeles, CA | 11,107 | 5.110 | % | 05/2015 | 750 | 9,760 | ||||||||||||||||||
Richmond, VA | 10,260 | 5.310 | % | 05/2015 | 708 | 9,055 | ||||||||||||||||||
Harrisburg, PA | 8,866 | 5.110 | % | 05/2015 | 599 | 7,780 | ||||||||||||||||||
Knoxville, TN | 7,554 | 5.310 | % | 05/2015 | 520 | 6,658 | ||||||||||||||||||
Tulsa, OK | 7,423 | 5.060 | % | 05/2015 | 499 | 6,517 | ||||||||||||||||||
Carrollton, TX | (b | ) | 20,295 | 5.870 | % | 07/2015 | 1,338 | 18,677 | ||||||||||||||||
Elizabethtown, KY | 15,564 | 4.990 | % | 07/2015 | 1,052 | 13,502 | ||||||||||||||||||
Hopkinsville, KY | 9,123 | 4.990 | % | 07/2015 | 617 | 7,916 | ||||||||||||||||||
Dry Ridge, KY | 6,759 | 4.990 | % | 07/2015 | 457 | 5,863 | ||||||||||||||||||
Owensboro, KY | 6,021 | 4.990 | % | 07/2015 | 407 | 5,223 | ||||||||||||||||||
Elizabethtown, KY | 2,936 | 4.990 | % | 07/2015 | 198 | 2,547 | ||||||||||||||||||
Houston, TX | (b | ) | 56,740 | 6.250 | % | 09/2015 | 8,159 | 18,318 | ||||||||||||||||
Sugar Land, TX | (b | ) | 14,677 | 6.250 | % | 09/2015 | 2,083 | 6,286 | ||||||||||||||||
Danville, IL | 6,055 | 9.000 | % | 01/2016 | 692 | 4,578 |
B-225
Table of Contents
Consolidated Properties: Mortgages and Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||
Annual Debt | Balloon | |||||||||||||||||||||||
Debt Balance | Interest | Service | Payment | |||||||||||||||||||||
Property | Footnotes | ($000) | Rate (%) | Maturity(a) | ($000) (d) | ($000) | ||||||||||||||||||
Bridgewater, NJ | 14,805 | 5.732 | % | 03/2016 | 860 | 13,825 | ||||||||||||||||||
Omaha, NE | 8,711 | 5.610 | % | 04/2016 | 621 | 7,560 | ||||||||||||||||||
Tempe, AZ | 8,227 | 5.610 | % | 04/2016 | 586 | 7,140 | ||||||||||||||||||
Lisle, IL | 10,416 | 6.500 | % | 06/2016 | 793 | 9,377 | ||||||||||||||||||
Dallas, TX | (b | ) | 18,549 | 5.870 | % | 07/2016 | 1,136 | 18,365 | ||||||||||||||||
Rochester, NY | 18,785 | 6.210 | % | 08/2016 | 1,383 | 16,602 | ||||||||||||||||||
Statesville, NC | 14,089 | 6.210 | % | 08/2016 | 1,037 | 12,451 | ||||||||||||||||||
Rockford, IL | 6,895 | 6.210 | % | 08/2016 | 508 | 6,093 | ||||||||||||||||||
Glenwillow, OH | 16,983 | 6.130 | % | 09/2016 | 1,240 | 14,987 | ||||||||||||||||||
Memphis, TN | 3,951 | 5.710 | % | 01/2017 | 264 | 3,484 | ||||||||||||||||||
Orlando, FL | 9,975 | 5.722 | % | 02/2017 | 579 | 9,309 | ||||||||||||||||||
Coppell, TX | 14,400 | 5.710 | % | 06/2017 | 834 | 14,400 | ||||||||||||||||||
Dubuque, IA | 10,482 | 5.402 | % | 06/2017 | 733 | 8,725 | ||||||||||||||||||
Shreveport, LA | 19,000 | 5.690 | % | 07/2017 | 1,096 | 19,000 | ||||||||||||||||||
McDonough, GA | 23,000 | 6.110 | % | 11/2017 | 1,425 | 21,651 | ||||||||||||||||||
Lorain, OH | (b | ) | 1,271 | 7.750 | % | 07/2018 | 108 | — | ||||||||||||||||
Manteca, CA | (b | ) | 898 | 7.750 | % | 07/2018 | 77 | — | ||||||||||||||||
Watertown, NY | (b | ) | 844 | 7.750 | % | 07/2018 | 72 | — | ||||||||||||||||
Lewisburg, WV | (b | ) | 593 | 7.750 | % | 07/2018 | 51 | — | ||||||||||||||||
San Diego, CA | (b | ) | 572 | 7.750 | % | 07/2018 | 49 | — | ||||||||||||||||
Galesburg, IL | (b | ) | 504 | 7.750 | % | 07/2018 | 43 | — | ||||||||||||||||
Overland Park, KS | (b | ) | 37,475 | 5.911 | % | 05/2019 | 2,399 | 31,819 | ||||||||||||||||
Kansas City, MO | (b | ) | 17,879 | 5.900 | % | 05/2019 | 1,145 | 15,182 | ||||||||||||||||
Streetsboro, OH | (b | ) | 19,478 | 5.900 | % | 09/2019 | 1,344 | 16,338 | ||||||||||||||||
Boca Raton, FL | 20,400 | 6.470 | % | 02/2020 | 1,338 | 18,383 | ||||||||||||||||||
Wall Township, NJ | (b | ) | 28,891 | 6.250 | % | 01/2021 | 2,588 | — | ||||||||||||||||
Hilliard, OH | 28,960 | 5.907 | % | 02/2021 | 1,734 | 27,483 | ||||||||||||||||||
Charleston, SC | 7,350 | 5.850 | % | 02/2021 | 436 | 6,632 | ||||||||||||||||||
Durham, NH | (b | ) | 19,261 | 6.750 | % | 03/2021 | 1,683 | — | ||||||||||||||||
Antioch, TN | (b | ) | 14,291 | 5.630 | % | 10/2021 | 1,580 | 774 | ||||||||||||||||
Whippany, NJ | 16,414 | 6.298 | % | 11/2021 | 1,344 | 10,400 | ||||||||||||||||||
Dillon, SC | 22,612 | 5.974 | % | 02/2022 | 1,832 | 13,269 | ||||||||||||||||||
Subtotal/Wtg. Avg./Years Remaining(k) | 1,793,745 | 5.885 | % | 5.9 | 153,934 | 1,513,933 | ||||||||||||||||||
B-226
Table of Contents
Consolidated Properties: Mortgages and Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||
Annual Debt | Balloon | |||||||||||||||||||||||
Debt Balance | Interest Rate | Service | Payment | |||||||||||||||||||||
Property | Footnotes | ($000) | (%) | Maturity(a) | ($000) (d) | ($000) | ||||||||||||||||||
Corporate | ||||||||||||||||||||||||
Credit Facility | (c | ) | — | — | 06/2009 | — | — | |||||||||||||||||
Term Loan | (f | ) | 197,931 | 3.090 | % | 06/2009 | 4,134 | 197,931 | ||||||||||||||||
Exchangeable Notes | (e | ) | 299,500 | 5.450 | % | 01/2012 | 16,323 | 299,500 | ||||||||||||||||
Term Loan | (h | )(j) | 41,074 | 5.520 | % | 03/2013 | 2,299 | 41,074 | ||||||||||||||||
Term Loan | (h | )(j) | 25,000 | 5.520 | % | 03/2013 | 1,399 | 25,000 | ||||||||||||||||
Trust Preferred Notes | (g | ) | 129,120 | 6.804 | % | 04/2037 | 8,785 | 129,120 | ||||||||||||||||
Subtotal/Wtg. Avg./Years Remaining(k) | 692,625 | 5.035 | % | 7.3 | 32,940 | 692,625 | ||||||||||||||||||
Total/Wtg. Avg./Years Remaining(k) | $ | 2,486,370 | 5.648 | % | 6.3 | $ | 186,874 | $ | 2,206,558 | |||||||||||||||
(a) | Subtotal and total based on weighted average term to maturity shown in years based on debt balance. | |
(b) | Debt balances based upon imputed interest rates. | |
(c) | Floating rate debt 30/60/90 day LIBOR plus 120 to 170 bps. | |
(d) | Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months. | |
(e) | Holders have the right to put notes to the Company commencing 2012 and every five years thereafter. Notes mature in 2027. | |
(f) | Floating rate debt 30 day LIBOR plus 60 bps; maturity can be extended by Company to December 2009. | |
(g) | Rate fixed through April 2017, thereafter LIBOR plus 170 bps. | |
(h) | Rate is swapped to fixed rate through maturity. | |
(i) | Debt on three cross-collateralized properties located in Nevada, Indiana, and Tennessee. | |
(j) | Represents full payable of loans, discount of $4,795 excluded from balance. | |
(k) | Total shown may differ from detailed amounts due to rounding. |
B-227
Table of Contents
Non- Consolidated Investments: Mortgages & Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||||||||||
LXP | Estimated | Proportionate | ||||||||||||||||||||||||||||||
Debt | Proportionate | Annual Debt | Balloon | Share Balloon | ||||||||||||||||||||||||||||
Balance | Share | Interest | Service | Payment | Payment | |||||||||||||||||||||||||||
Joint Venture | Footnotes | ($000) | ($000)(15) | Rate (%) | Maturity | ($000)(10) | ($000) | ($000) | ||||||||||||||||||||||||
Net Lease Strategic | $ | 10,329 | $ | 4,966 | 7.800 | % | 04/2009 | $ | 496 | $ | 10,239 | $ | 4,921 | |||||||||||||||||||
Dallas Commerce | 9,153 | 2,371 | 6.680 | % | 06/2009 | 9,614 | — | — | ||||||||||||||||||||||||
BCBS LLC | 22,968 | 9,187 | 7.850 | % | 10/2009 | 2,196 | 22,586 | 9,034 | ||||||||||||||||||||||||
Net Lease Strategic | 7,853 | 3,776 | 6.930 | % | 08/2010 | 674 | 7,603 | 3,656 | ||||||||||||||||||||||||
Harpard | 1,181 | 321 | 9.875 | % | 01/2011 | 569 | — | — | ||||||||||||||||||||||||
Net Lease Strategic | 2,212 | 1,064 | 7.500 | % | 01/2011 | 226 | 2,076 | 998 | ||||||||||||||||||||||||
Net Lease Strategic | 13,930 | 6,698 | 7.400 | % | 04/2011 | 1,258 | 13,365 | 6,426 | ||||||||||||||||||||||||
Net Lease Strategic | 30,582 | 14,704 | 5.126 | % | 05/2011 | 1,589 | 30,582 | 14,704 | ||||||||||||||||||||||||
Taber | 748 | 203 | 10.125 | % | 06/2011 | 313 | — | — | ||||||||||||||||||||||||
Jayal | 1,068 | 317 | 11.500 | % | 03/2012 | 365 | — | — | ||||||||||||||||||||||||
Net Lease Strategic | 22,761 | 10,943 | 5.147 | % | 05/2012 | 1,188 | 22,153 | 10,651 | ||||||||||||||||||||||||
Net Lease Strategic | 11,605 | 5,580 | 7.670 | % | 01/2013 | 2,817 | — | — | ||||||||||||||||||||||||
Net Lease Strategic | 13,185 | 6,339 | 5.148 | % | 05/2013 | 894 | 12,144 | 5,839 | ||||||||||||||||||||||||
Net Lease Strategic | 4,957 | 2,383 | 5.950 | % | 09/2013 | 381 | 4,496 | 2,162 | ||||||||||||||||||||||||
Net Lease Strategic | 20,666 | 9,936 | 5.810 | % | 02/2014 | 1,551 | 18,588 | 8,937 | ||||||||||||||||||||||||
Net Lease Strategic | 9,493 | 4,564 | 5.616 | % | 04/2014 | 697 | 8,484 | 4,079 | ||||||||||||||||||||||||
Net Lease Strategic | 1,348 | 648 | 8.500 | % | 04/2015 | 271 | — | — | ||||||||||||||||||||||||
Net Lease Strategic | 17,058 | 8,201 | 5.411 | % | 05/2015 | 1,189 | 15,087 | 7,254 | ||||||||||||||||||||||||
Net Lease Strategic — Oklahoma TIC | 14,749 | 2,836 | 5.240 | % | 05/2015 | 784 | 13,673 | 2,629 | ||||||||||||||||||||||||
Net Lease Strategic | 12,675 | 6,094 | 5.212 | % | 06/2015 | 836 | 11,349 | 5,457 | ||||||||||||||||||||||||
Net Lease Strategic | 6,180 | 2,971 | 5.783 | % | 06/2015 | 462 | 5,371 | 2,582 | ||||||||||||||||||||||||
Net Lease Strategic | 21,545 | 10,359 | 8.036 | % | 09/2015 | 3,352 | 6,925 | 3,330 | ||||||||||||||||||||||||
Net Lease Strategic | 6,121 | 2,943 | 8.036 | % | 09/2015 | 925 | 2,203 | 1,059 | ||||||||||||||||||||||||
Net Lease Strategic | 8,662 | 4,165 | 6.090 | % | 01/2016 | 668 | 7,446 | 3,580 | ||||||||||||||||||||||||
Net Lease Strategic | 6,402 | 3,078 | 6.090 | % | 04/2016 | 494 | 5,465 | 2,628 | ||||||||||||||||||||||||
Net Lease Strategic | 6,522 | 3,136 | 6.315 | % | 09/2016 | 497 | 5,723 | 2,752 | ||||||||||||||||||||||||
One Summit | 18,860 | 5,658 | 9.375 | % | 10/2016 | 3,344 | — | — | ||||||||||||||||||||||||
Net Lease Strategic | 9,216 | 4,431 | 6.063 | % | 11/2016 | 683 | 8,023 | 3,857 | ||||||||||||||||||||||||
One Summit | 12,191 | 3,657 | 10.625 | % | 11/2016 | 2,239 | — | — |
B-228
Table of Contents
Non- Consolidated Investments: Mortgages & Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||||||||||
LXP | Estimated | Proportionate | ||||||||||||||||||||||||||||||
Debt | Proportionate | Annual Debt | Balloon | Share Balloon | ||||||||||||||||||||||||||||
Balance | Share | Interest | Service | Payment | Payment | |||||||||||||||||||||||||||
Joint Venture | Footnotes | ($000) | ($000)(15) | Rate (%) | Maturity | ($000)(10) | ($000) | ($000) | ||||||||||||||||||||||||
Net Lease Strategic | 9,147 | 4,398 | 5.910 | % | 10/2018 | 728 | 6,624 | 3,185 | ||||||||||||||||||||||||
Dallas Commerce | 12,512 | 3,241 | 15.000 | % | 12/2018 | 2,166 | — | — | ||||||||||||||||||||||||
Net Lease Strategic | 9,913 | 4,766 | 6.010 | % | 08/2019 | 753 | 7,658 | 3,682 | ||||||||||||||||||||||||
Net Lease Strategic | 7,500 | 3,606 | 6.507 | % | 11/2019 | 495 | 6,692 | 3,218 | ||||||||||||||||||||||||
Net Lease Strategic | 10,000 | 4,808 | 6.270 | % | 12/2019 | 774 | 7,755 | 3,729 | ||||||||||||||||||||||||
Net Lease Strategic | 10,113 | 4,862 | 5.930 | % | 10/2020 | 750 | 7,660 | 3,683 | ||||||||||||||||||||||||
Net Lease Strategic | 9,543 | 4,588 | 5.460 | % | 12/2020 | 741 | 5,895 | 2,834 | ||||||||||||||||||||||||
Net Lease Strategic | 9,633 | 4,632 | 5.640 | % | 01/2021 | 692 | 7,018 | 3,374 | ||||||||||||||||||||||||
Net Lease Strategic | 12,690 | 6,101 | 5.380 | % | 08/2025 | 1,144 | 362 | 174 | ||||||||||||||||||||||||
Subtotal/Wtg. Avg.(5) /Years Remaining(6) | $ | 415,271 | $ | 182,533 | 6.557 | % | 6.4 | $ | 48,815 | $ | 283,245 | $ | 130,414 | |||||||||||||||||||
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Non- Consolidated Investments: Mortgages & Notes Payable
9/30/2008
Current | ||||||||||||||||||||||||||||||||
LXP | Estimated | Proportionate | ||||||||||||||||||||||||||||||
Debt | Proportionate | Annual Debt | Balloon | Share Balloon | ||||||||||||||||||||||||||||
Balance | Share | Interest | Service | Payment | Payment | |||||||||||||||||||||||||||
Joint Venture | Footnotes | ($000) | ($000)(15) | Rate (%) | Maturity | ($000)(10) | ($000) | ($000) | ||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
Concord | (1 | )(13) | 22,893 | 11,447 | 4.788 | % | 11/2008 | 1,111 | 22,893 | 11,447 | ||||||||||||||||||||||
Concord | (4 | )(12) | 25,516 | 12,758 | 4.188 | % | 12/2008 | 1,083 | 25,516 | 12,758 | ||||||||||||||||||||||
Concord | (4 | )(8) | 15,981 | 7,991 | 3.461 | % | 03/2009 | 561 | 15,981 | 7,991 | ||||||||||||||||||||||
Concord | (2 | )(11) | 196,538 | 98,269 | 4.214 | % | 03/2009 | 8,397 | 196,538 | 98,269 | ||||||||||||||||||||||
Concord | (7 | )(9) | 73,000 | 36,500 | 5.820 | % | 03/2010 | 4,308 | 73,000 | 36,500 | ||||||||||||||||||||||
Concord | (4 | ) | 59,613 | 29,807 | 3.488 | % | 12/2012 | 2,108 | 59,613 | 29,807 | ||||||||||||||||||||||
Concord | (3 | )(14) | 351,525 | 175,763 | 3.700 | % | 12/2016 | 13,187 | 351,525 | 175,763 | ||||||||||||||||||||||
Subtotal/Wtg. Avg.(5) /Years Remaining(6) | $ | 745,066 | $ | 372,535 | 4.071 | % | 4.5 | $ | 30,755 | $ | 745,066 | $ | 372,535 | |||||||||||||||||||
Total/Wtg. Avg.(5) /Years Remaining(6) | $ | 1,160,337 | $ | 555,068 | 4.889 | % | 5.1 | $ | 79,570 | $ | 1,028,311 | $ | 502,949 | |||||||||||||||||||
(1) | Represents amount outstanding on $150.0 million repurchase agreement, variable rate. | |
(2) | Represents amount outstanding on $350.0 million repurchase agreement, variable rate. Subsequent to September 30, 2008, the repurchase agreement was reduced to $150.0 million. | |
(3) | Collateralized debt obligation of investment grade-rated debt secured directly or indirectly by real estate assets. | |
(4) | Represents amount outstanding on term loans. | |
(5) | Weighted average interest rate based on proportionate share. | |
(6) | Weighted average years remaining on maturities based on proportionate debt balance. | |
(7) | Maturity date can be extended to 03/2011 if certain criteria are met. | |
(8) | Maturity date can be extended to 03/2012 if certain criteria are met. | |
(9) | Represents amount outstanding on $100.0 million repurchase agreement, variable rate. | |
(10) | Amounts represent estimated 12 months debt service regardless of maturity date. | |
(11) | Subsequent to September 30, 2008, $46,583 was repaid and the maturity date was extended to 3/2011. | |
(12) | Subsequent to September 30, 2008, $4,000 was repaid and the maturity date was extended to 12/2009. | |
(13) | Subsequent to September 30, 2008, $3,093 was repaid. | |
(14) | Subsequent to September 30, 2008, $4,000 was repaid via a payment of $1,040. | |
(15) | Total balance shown may differ from detailed amounts due to rounding. |
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Mortgage Maturity Schedule
As of September 30, 2008
($000)
Consolidated Properties | ||||||||||||||||
Balloon Weighted | ||||||||||||||||
Scheduled | Average Interest | |||||||||||||||
Year | Amortization | Balloon Payments | Rate (%) | |||||||||||||
2008-remaining | $ | 7,007 | $ | — | — | % | ||||||||||
2009 | 47,244 | 68,783 | (1) | 5.93 | ||||||||||||
2010 | 34,639 | 110,569 | 6.83 | |||||||||||||
2011 | 31,062 | 95,610 | 5.78 | |||||||||||||
2012 | 30,991 | 190,994 | (2) | 5.97 | ||||||||||||
$ | 150,943 | $ | 465,956 | 6.13 | % | |||||||||||
Joint Venture Investments - LXP Proportionate Share | |||||||||||||||||
Balloon Weighted | |||||||||||||||||
Scheduled | Average Interest | ||||||||||||||||
Year | Amortization | Balloon Payments | Rate (%) | ||||||||||||||
2008-remaining | $ | 1,830 | $ | 24,205 | (3) | 4.47 | % | ||||||||||
2009 | 6,433 | 120,215 | (4) | 4.58 | |||||||||||||
2010 | 5,593 | 40,156 | 5.92 | ||||||||||||||
2011 | 5,780 | 22,128 | 5.89 | ||||||||||||||
2012 | 5,980 | 40,458 | 3.92 | ||||||||||||||
$ | 25,616 | $ | 247,162 | 4.80 | % | ||||||||||||
(1) | Excludes corporate level debt of $197,931, variable rate 3.09% at 9/30/08. | |
(2) | Excludes corporate level debt of $299,500, fixed rate 5.45% at 9/30/08. | |
(3) | Subsequent to September 30, 2008, $12,758 of these maturities were extended to 2009. (See note 12 on page 47) | |
(4) | Subsequent to September 30, 2008, $98,269 of these maturities were extended to 2011. (See note 11 on page 47) |
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Base Rent Estimates for Current Assets
9/30/2008
($000)
Year | Cash | GAAP | ||||||||||
2008-remaining | $ | 91,505 | $ | 92,416 | ||||||||
2009 | 342,951 | 347,821 | ||||||||||
2010 | 307,789 | 310,991 | ||||||||||
2011 | 294,000 | 297,636 | ||||||||||
2012 | 267,796 | 268,824 |
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Transfer Agent | Investor Relations | |||
BNY Mellon Shareowner Services | Patrick Carroll | |||
480 Washington Blvd. | Executive Vice President and Chief Financial Officer | |||
Jersey City NJ 07310-1900 | Telephone (direct) | (212) 692-7215 | ||
(800) 850-3948 | Facsimile (main) | (212) 594-6600 | ||
www.bnymellon.com/shareowner/isd | pcarroll@lxp.com |
Cantor Fitzgerald | ||
Philip Martin | (312) 469-7485 | |
Matthew Thorp | (312) 469-7484 | |
Friedman, Billings, Ramsey | ||
Gabe Poggi | (703) 469-1141 | |
Merrill Ross | (703) 312-9769 | |
J.P. Morgan Chase | ||
Joseph Dazio, CFA | (212) 622-6416 | |
Michael W. Mueller, CFA | (212) 622-6689 | |
Anthony Paolone, CFA | (212) 622-6682 | |
Gregory P. Stuart | (212) 622-5390 |
Keefe, Bruyette & Woods | ||
Sheila K. McGrath | (212) 887-7793 | |
Barclays Capital | ||
Ross L. Smotrich | (212)526-2306 | |
Raymond James & Assoc. | ||
Paul Puryear | (727) 567-2253 | |
Stifel Nicolaus | ||
John W. Guinee | (443) 224-1307 |
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 6, 2008
Lisa Soares — Lexington Realty Trust — Assistant to CEO
Will Eglin — Lexington Realty Trust — CEO and President
Pat Carroll — Lexington Realty Trust — Chief Financial Officer
Natasha Roberts — Lexington Realty Trust — EVP & Director, Real Estate Operations
Sheila McGrath — KBW
Sierra King — JP Morgan Chase
Claude Pahowski — Private Investor
John Guinee — Stifel Nicolaus
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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Lexington Realty Trust (LXP)
Third Quarter Earnings Conference Call
November 06, 2008
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One Penn Plaza, Suite 4015
New York, New York10119-4015
(212) 692-7200
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One Penn Plaza, Suite 4015
New York, New York10119-4015
(212) 692-7200
FOR THE ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD MAY 20, 2008
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By Mail: | Vote, sign, date your proxy card and mail it in the postage-paid envelope. | |
In Person: | Vote at the Annual Meeting. | |
By Telephone: | Call toll-free 1-866-540-5760 and follow the instructions. You will be prompted for certain information that can be found on your proxy card. | |
Via Internet: | Log on towww.proxyvoting.com/lxpand follow the on-screen instructions. You will be prompted for certain information that can be found on your proxy card. |
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AND EXECUTIVE OFFICERS
Beneficial Ownership of | Percentage of | |||||||
Name of Beneficial Owner | Shares(1) | Class(2) | ||||||
Apollo Real Estate Advisors III, L.P.(3) | 18,687,236 | 23.3 | % | |||||
Vornado Realty Trust(4) | 8,149,594 | 11.7 | % | |||||
Barclays Global Investors (Deutschland) AG(5) | 4,786,072 | 7.2 | % | |||||
The Vanguard Group, Inc.(6) | 3,877,757 | 6.2 | % |
(1) | For purposes of this table, a person is deemed to beneficially own any shares as of a given date which such person owns or has the right to acquire within 60 days after such date. | |
(2) | For purposes of computing the percentage of outstanding shares held by each beneficial owner named above on a given date, any security (including, without limitation, MLP Units) owned by such person or persons is included in the total number of outstanding common shares but is not included in the total number of outstanding common shares for the purpose of computing the percentage ownership of any other beneficial owner. | |
(3) | Based on information contained in a Form 4 filed with the SEC on March 13, 2007. According to such Form 4, AP LXP Holdings LLC owns 18,687,236 MLP Units. AP LXP Holdings LLC is wholly owned by Apollo Real Estate Investment Fund III, L.P., the general partner of which is Apollo Real Estate Advisors III, L.P., the general partner of which is Apollo Real Estate Capital Advisors III, Inc. (all located at Two Manhattanville Road, Suite 203, Purchase, New York 10577). MLP Units are presently redeemable for cash or, at the Company’s option, common shares on a one-for-one basis. There is no expiration date on the redemption of MLP Units. | |
(4) | Based on information contained in a Form 3 filed with the SEC on January 10, 2007. According to such Form 3, Vornado Realty Trust’s wholly-owned subsidiaries, Vornado Realty L.P., Vornado Newkirk LLC and VNK L.L.C. own 6,129,580.9, 1,188,932.1 and 831,080.9 MLP Units, respectively. Vornado Realty Trust is located at 888 Seventh Avenue, New York, New York 10119 and Vornado Realty L.P. is located at 210 Route 4 East, Paramus, New Jersey 07652. MLP Units are presently redeemable for cash or, at the Company’s option, common shares on a one-for-one basis. There is no expiration date on the redemption of MLP Units. | |
(5) | Based on information contained in a Schedule 13G filed with the SEC on February 5, 2008. According to such Schedule 13G, Barclays Global Investors (Deutschland) AG has sole dispositive power over 4,786,072 common shares, including 3,774,234 common shares over which it has sole voting power. The address of Barclays Global Investors (Deutschland) AG is Apianstrasse 6, D-85774, Uterfohring, Germany. | |
(6) | Based on information contained in a Schedule 13G/A filed with the SEC on February 12, 2008. According to such Schedule 13G/A, The Vanguard Group, Inc. has sole dispositive power over 3,877,757 common shares, including 84,201 common shares over which it has sole voting power. The address of The Vanguard Group, Inc. is 100 Vanguard Blvd., Malvern, PA 19355. |
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Beneficial Ownership of | Percentage of | |||||||
Name of Beneficial Owner | Shares(1) | Class(2) | ||||||
E. Robert Roskind | 2,432,427 | (3) | 3.9 | % | ||||
Richard J. Rouse | 537,753 | (4) | * | |||||
T. Wilson Eglin | 495,117 | (5) | * | |||||
Patrick Carroll | 294,676 | (6) | * | |||||
Paul R. Wood | 31,245 | (7) | * | |||||
Clifford Broser | 4,368 | * | ||||||
Geoffrey Dohrmann | 33,632 | (8) | * | |||||
Carl D. Glickman | 195,876 | * | ||||||
James Grosfeld | 20,766 | * | ||||||
Harold First | 1,280 | * | ||||||
Richard Frary | 12,916 | * | ||||||
Kevin W. Lynch | 29,141 | (9) | * | |||||
All trustees and executive officers as a group (12 persons) | 4,089,197 | 6.5 | % |
* | Represents beneficial ownership of less than 1.0% | |
(1) | For purposes of this table, a person is deemed to beneficially own any shares as of a given date which such person owns or has the right to acquire within 60 days after such date. | |
(2) | For purposes of computing the percentage of outstanding shares held by each beneficial owner named above on a given date, any security (including, without limitation, limited partnership units redeemable into common shares) owned by such person or persons is included in the total number of outstanding common shares but is not included in the total number of outstanding common shares for the purpose of computing the percentage ownership of any other beneficial owner (with the exception of all trustees and executive officers as a group). | |
(3) | Includes (i) 1,519,154 limited partnership units held directly by Mr. Roskind or indirectly by Mr. Roskind through his wife and entities controlled by Mr. Roskind, in Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P. and Net 3 Acquisition L.P., each of which is one of our operating partnership subsidiaries, which are currently exchangeable, on a one-for-one basis, for common shares, (ii) 384,710 common shares held directly by Mr. Roskind, (iii) 117,768 common shares held directly by Mr. Roskind which are subject to performance or time-based vesting requirements or a lockup/claw-back agreement, (iv) 167,843 common shares held in trust in which Mr. Roskind is beneficiary, (v) 33,620 common shares owned of record by The LCP Group, L.P., an entity controlled by Mr. Roskind, which Mr. Roskind disclaims beneficial ownership of to the extent of his pecuniary interest, and (vi) 209,332 common shares held by The Roskind Family Foundation, Inc., over which Mr. Roskind shares voting and investment power. 123,102 common shares and 620,000 operating partnership units are pledged by Mr. Roskind as security for loans or are held in margin accounts. | |
(4) | Includes (i) 101,438 limited partnership units held by Mr. Rouse in Lepercq Corporate Income Fund L.P. and Lepercq Corporate Income Fund II L.P., which are currently exchangeable, on a one-for-one basis, for common shares, (ii) 166,925 common shares held directly by Mr. Rouse, (iii) 146,165 common shares held directly by Mr. Rouse which are subject to performance or time-based vesting requirements or a lockup/claw-back agreement, and (iv) 123,225 common shares held in trust in which Mr. Rouse is beneficiary. 101,905 common shares and 86,402 operating partnership units are pledged by Mr. Rouse as security for loans or are held in margin accounts. |
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(5) | Includes (i) 160,692 common shares held directly by Mr. Eglin, (ii) 203,562 common shares held directly by Mr. Eglin which are subject to performance or time-based vesting requirements or a lockup/claw-back agreement, and (iii) 130,863 common shares held in trust in which Mr. Eglin is beneficiary. | |
(6) | Includes (i) 39,926 common shares held directly by Mr. Carroll, (ii) 115,530 common shares held directly by Mr. Carroll which are subject to performance or time-based vesting requirements or a lockup/claw-back agreement, and (iii) 139,220 common shares owned of record by Mr. Carroll’s wife, which Mr. Carroll disclaims beneficial ownership of. | |
(7) | Includes (i) 23,091 common shares held directly by Mr. Wood, (ii) 2,554 common shares held directly by Mr. Wood which are subject to time-based vesting requirements, and (iii) 5,600 common shares held in trust in which Mr. Wood is a beneficiary. | |
(8) | Held in a margin account. | |
(9) | Includes common shares acquired pursuant to a dividend reinvestment plan. |
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Name | Business Experience | |
E. ROBERT ROSKIND Age 63 | Mr. Roskind was reappointed our Chairman on March 20, 2008, after serving as our Co-Vice Chairman since December 31, 2006. Mr. Roskind previously served as our Chairman from October 1993 to December 31, 2006 and our Co-Chief Executive Officer from October 1993 to January 2003. He founded The LCP Group, L.P., a real estate advisory firm, in 1973 and has been its chairman since 1976. Mr. Roskind also serves as chairman of Crescent Hotels and Resorts, as a member of the board of directors of LCP Investment Corporation, a Japanese real estate investment trust listed on the Tokyo Stock Exchange, and as a member of the board of directors of LCP Reit Advisors, the external advisor to LCP Investment Corporation, each of which is an affiliate of the LCP Group L.P. Mr. Roskind spends approximately one third of his business time on the affairs of The LCP Group L.P. and its affiliates; however, Mr. Roskind prioritizes his business time to address our needs ahead of The LCP Group L.P. | |
RICHARD J. ROUSE Age 62 | Mr. Rouse has served as our Vice Chairman and Chief Investment Officer since January 2003 and as one of our trustees since October 1993. He served as our President from October 1993 to April 1996, and was our Co-Chief Executive Officer from October 1993 until January 2003. | |
T. WILSON EGLIN Age 43 | Mr. Eglin has served as our Chief Executive Officer since January 2003, our Chief Operating Officer since October 1993, our President since April 1996 and as a trustee since May 1994. He served as one of our Executive Vice Presidents from October 1993 to April 1996. | |
CLIFFORD BROSER Age 47 | Mr. Broser has served as a trustee since December 31, 2006. Mr. Broser has been associated with Vornado, a diversified REIT, since 1989. Since 1997 Mr. Broser has been a senior vice president in Vornado’s acquisitions group where he has been responsible for real estate acquisitions and financings. Through subsidiaries, Vornado beneficially owns 11.7% of our common shares. | |
GEOFFREY DOHRMANN Age 57 | Mr. Dohrmann has served as a trustee since August 2000. Mr. Dohrmann co-founded Institutional Real Estate, Inc., a real estate-oriented publishing and consulting company in 1987 and is currently its president and chief executive officer and a director. Mr. Dohrmann also belongs to the advisory boards for the National Real Estate Index, The Journal of Real Estate Portfolio Management and Center for Real Estate Enterprise Management. Mr. Dohrmann is also a fellow of the Homer Hoyt Institute and holds the Counselors of Real Estate (CRE) designation. |
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Name | Business Experience | |
CARL D. GLICKMAN Age 81 | Mr. Glickman has served as a trustee since May 1994. Mr. Glickman has been President of The Glickman Organization, a real estate development and management firm, since 1953. Mr. Glickman is a director and a member of the audit committee and compensation committee of the board of directors of Bear Stearns Companies, Inc. and a member of the board of trustees of Cleveland State University. | |
JAMES GROSFELD Age 70 | Mr. Grosfeld has served as a trustee since November 2003. He also serves as a director of BlackRock, Inc. He has served on the advisory board of the Federal National Mortgage Association and as director of Interstate Bakeries Corporation, Addington Resources, Ramco-Gershenson Properties Trust and BlackRock Investors. He was chairman and chief executive officer of Pulte Home Corporation from 1974 to 1990. | |
HAROLD FIRST Age 71 | Mr. First has served as a trustee since November 26, 2007. Mr. First has been a financial consultant since 1993. From December 1990 through January 1993, Mr. First served as Chief Financial Officer of Icahn Holding Corp., a privately held holding company. Mr. First has served as a director of numerous public companies and is currently a director and chairman of the audit committee of American Railcar Industries, Inc. (NASDAQ: ARII). Mr. First is also a director of WestPoint International Inc. Mr. First is a certified public accountant. | |
RICHARD FRARY Age 60 | Mr. Frary has served as a trustee since December 31, 2006. Mr. Frary is the founding partner and majority shareholder of Tallwood Associates, Inc., a private real estate merchant banking firm. He also serves on the board of directors of Tarragon Corporation, a publicly traded real estate investment trust, and the board of trustees of Johns Hopkins University. | |
KEVIN W. LYNCH Age 55 | Mr. Lynch has served as a trustee from May 2003 to the present and from May 1996 to May 2000. Mr. Lynch co-founded and has been a principal of The Townsend Group, a real estate consulting firm, since 1983. United States. Mr. Lynch is a member of the Pension Real Estate Association and the National Council of Real Estate Investment Fiduciaries. Since 1994, Mr. Lynch has been a director and a member of the audit committee and chairman of the corporate governance and nominating committee of the board of directors of First Industrial Realty Trust (NYSE: FR). Mr. Lynch is also currently on the advisory board for the European Institutional Real Estate Letter. |
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• | A trustee who is, or has been within the last three years, an employee of the Company, or whose immediate family member is, or has been within the last three years an executive officer, of the Company may not be deemed independent. Employment as an interim Chairman, Chief Executive Officer or other executive officer will not disqualify a trustee from being considered independent following that employment. | |
• | A trustee who has received, or who has an immediate family member who has received, during any twelve-month period within the last three years, more than $100,000 in direct compensation from the Company, other than trustee and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service), may not be deemed independent. Compensation received by a trustee for former service as an interim Chairman, Chief Executive Officer or other executive officer and compensation received by an immediate family member for service as a non-executive employee of the Company will not be considered in determining independence under this test. | |
• | (A) A trustee who is, or whose immediate family member is, a current partner of a firm that is the Company’s internal or external auditor; (B) a trustee who is a current employee of such a firm; (C) a trustee who has an immediate family member who is a current employee of such a firm and who participates in the firm’s audit, assurance or tax compliance (but not tax planning) practice; or (D) a trustee who was, or whose immediate family member was, within the last three years (but is no longer) a partner or employee of such a firm and personally worked on the Company’s audit within that time may not be deemed independent. | |
• | A trustee who is, or whose immediate family member is, or has been within the last three years, employed as an executive officer of another company where any of the Company’s present executive officers at the time serves or served on that company’s compensation committee may not be deemed independent. | |
• | A trustee who is a current employee or general partner, or whose immediate family member is a current executive officer, general partner or significant equity holder (i.e., in excess of 10%) of an entity that has made payments to, or received payments from, the Company for property or services in an amount which, in any of the last three fiscal years, exceeds the greater of $1,000,000 or 2% of such other entity’s consolidated gross revenues, may not be deemed independent. |
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• | A trustee who is, or whose immediate family member is, affiliated with or employed by a tax-exempt entity that received significant contributions (i.e., more than 2% of such entity’s consolidated gross revenues or more than $1,000,000 in a single fiscal year, whichever amount is lower) from the Company, any of its affiliates, any executive officer or any affiliate of an executive officer within the preceding twelve-month period may not be deemed independent, unless the contribution was approved in advance by the Board of Trustees. |
• | “affiliate” means any consolidated subsidiary of the Company and any other entity that controls, is controlled by or is under common control with the Company, as evidenced by the power to elect a majority of the board of directors or comparable governing body of such entity; | |
• | “executive officer” means an “officer” within the meaning ofRule 16a-1(f) under the Securities Exchange Act of 1934, as amended; and | |
• | “immediate family” means spouse, parents, children, siblings, mothers-andfathers-in-law, sons- anddaughters-in-law, brothers- andsisters-in-law and anyone (other than employees) sharing a person’s home, but excluding any person who is no longer an immediate family member as a result of legal separation or divorce, or death or incapacitation. |
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• | has sole power and authority concerning the engagement and fees of independent registered public accounting firms, | |
• | reviews with the independent registered public accounting firm the scope of the annual audit and the audit procedures to be utilized, | |
• | pre-approves audit and permitted non-audit services provided by the independent registered public accounting firm, | |
• | reviews the independence of the independent registered public accounting firm, | |
• | reviews the adequacy of the Company’s internal accounting controls, and | |
• | reviews accounting, auditing and financial reporting matters with the Company’s independent registered public accounting firm and management. |
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Merger and Offer to | ||||
Purchase | ||||
Executive Officer | Consideration | |||
T. Wilson Eglin | $ | 710,000 | ||
Patrick Carroll | $ | 480,000 | ||
E. Robert Roskind | $ | 790,000 | ||
Richard J. Rouse | $ | 576,000 |
• | securities in excess of specified thresholds other than: |
• | equity interests in entities that are treated as partnerships or disregarded entities for federal income tax purposes; | |
• | stock of corporations for which an election to be a taxable REIT subsidiary will be made, or of entities qualifying as real estate investment trusts for federal income tax purposes; | |
• | securities that are treated as qualifying assets for purposes of the REIT 75% asset test; or | |
• | certain debt securities; |
• | assets that are treated as inventory for federal income tax purposes; or | |
• | REMIC residual interests. |
• | provide services other than specified services to tenants of our properties other than through an independent contractor or through a taxable REIT subsidiary; | |
• | allow a taxable REIT subsidiary to operate or manage a health care facility or a hotel or similar facility; or | |
• | lease our properties to certain specified tenants. |
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• | further align the interests of our executive officers with those of our shareholders; | |
• | strengthen the relationship between pay and performance by providing that almost all compensation other than base salary is entirely contingent upon the level of success in meeting specified company performance goals so that there is a “pay for performance” compensation structure; |
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• | retain key members of management by providing non-vested compensation for past performance; and | |
• | retain and attract key members of management by implementing an out-performance program which provides for long-term incentives if we meet certain specified performance goals. |
Executive Officer | 2008 Base Salary | |||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 550,000 | ||
Patrick Carroll, Executive Vice President, Chief Financial Officer and Treasurer | $ | 375,000 | ||
E. Robert Roskind, Chairman | $ | 450,000 | ||
Richard J. Rouse, Vice Chairman and Chief Investment Officer | $ | 475,000 | ||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | $ | 450,000 |
(1) | Mr. Ashner separated from service with us on March 20, 2008 and received only a portion of his 2008 salary based on the duration of his services this year. |
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Executive Officer | Subjective Measures | |
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | • generating FFO in our guidance range of$1.56-$1.64 per share • long-term strategic planning | |
• capital allocation | ||
• leasing activity | ||
• lowering financing costs | ||
• head count management and retention | ||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | • lowering financing costs • financial reporting compliance • headcount management and retention within department | |
• management of third party auditors | ||
• REIT compliance | ||
• management of information technology | ||
E. Robert Roskind, Chairman | • long-term strategic planning • acquisitions volume or yield on acquisitions | |
• strategic transaction activity, including development of new joint ventures | ||
• the amount of time spent on our business affairs | ||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | • acquisitions volume or yield on acquisitions • mortgage debt placement • headcount management and retention within department |
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Executive Officer | 2007 | |||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 550,000 | ||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 360,000 | ||
E. Robert Roskind, | $ | 450,000 | ||
Chairman | ||||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | $ | 475,000 | ||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | $ | 450,000 | ||
John B. Vander Zwaag, Executive Vice President(2) | $ | 340,000 |
(1) | Mr. Ashner separated from service with us on March 20, 2008. | |
(2) | Mr. Vander Zwaag separated from service with us on May 31, 2007 and received only a portion of his 2007 salary based on the duration of his services in that year. |
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CAD Growth | ||||||||||||
Component | ||||||||||||
Executive Officer | Entitlement | Reduction | Amount Paid | |||||||||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 618,750 | — | $ | 618,750 | |||||||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 405,000 | — | $ | 405,000 | |||||||
E. Robert Roskind, Chairman | $ | 506,250 | $ | (113,250 | ) | $ | 393,000 | |||||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | $ | 534,380 | $ | (29,380 | ) | $ | 505,000 | |||||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | $ | 506,250 | $ | (113,250 | ) | $ | 393,000 |
(1) | Mr. Ashner separated from service with us on March 20, 2008. |
Subjective | ||||
Executive Officer | Component | |||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 206,250 | ||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 135,000 | ||
E. Robert Roskind, Chairman | — | |||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | — | |||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | — |
(1) | Mr. Ashner separated from service with us on March 20, 2008. |
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Maximum | ||||||||
Annual Cash | ||||||||
Total Annual Cash | Incentive | |||||||
Executive Officer | Incentive Paid | Opportunity | ||||||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 825,000 | $ | 825,000 | ||||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 540,000 | $ | 540,000 | ||||
E. Robert Roskind, Chairman | $ | 393,000 | $ | 675,000 | ||||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | $ | 505,000 | $ | 712,500 | ||||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | $ | 393,000 | $ | 675,000 |
(1) | Mr. Ashner separated from service with us on March 20, 2008. |
CAD Growth | ||||||||||||
Executive Officer | Component | Reduction | Amount Paid | |||||||||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 515,630 | — | $ | 515,630 | |||||||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 337,500 | — | $ | 337,500 | |||||||
E. Robert Roskind, Chairman | $ | 421,880 | $ | (94,880 | ) | $ | 327,000 | |||||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | $ | 445,310 | $ | (25,310 | ) | $ | 420,000 | |||||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | $ | 421,880 | $ | (94,880 | ) | $ | 327,000 |
(1) | Mr. Ashner separated from service with us on March 20, 2008. |
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Subjective | ||||
Officer | Component | |||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 59,370 | ||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 168,750 | ||
E. Robert Roskind, Chairman | — | |||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | — | |||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | — |
(1) | Mr. Ashner separated from service with us on March 20, 2008. |
Maximum Annual | ||||||||
Total Annual | Long-Term Incentive | |||||||
Officer | Long-Term Incentive | Opportunity | ||||||
T. Wilson Eglin, Chief Executive Officer, President and Chief Operating Officer | $ | 575,000 | $ | 1,031,250 | ||||
Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer | $ | 550,000 | $ | 675,000 | ||||
E. Robert Roskind, Chairman | $ | 327,000 | $ | 843,750 | ||||
Richard J. Rouse, Vice Chairman, Chief Investment Officer and Executive Vice President | $ | 420,000 | $ | 890,625 | ||||
Michael L. Ashner, Executive Chairman and Director of Strategic Acquisitions(1) | $ | 327,000 | $ | 843,750 |
(1) | Mr. Ashner separated from service with us on March 20, 2008. |
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• | providing data regarding market practices and making recommendations for changes to our plan designs and policies consistent with our compensation philosophies and objectives; | |
• | advising on executive base salaries, bonuses and long-term incentive compensation; | |
• | assisting the Compensation Committee in designing and reviewing summary information regarding total compensation of our executive officers; and | |
• | providing studies and recommendations regarding our peer group. |
• | Competitor Peer Group. This group consists of nine public REITS that are either (1) our competitors for property acquisitions and tenants in the single-tenant net lease space, (2) located in the New York City area, or (3) owners of a portfolio of diversified assets. The total capitalization (market value of outstanding common stock, convertible operating partnership units, preferred equity and balance sheet long-term debt) of this peer group ranges from approximately $1.4 billion to $16.0 billion, with a median of $2.7 billion, as of September 30, 2007. Our total capitalization as of September 30, 2007 was $5.8 billion. The companies included in this peer group are: CapLease, Inc.; Cousins Properties Incorporated; Duke Realty Corporation; Entertainment Properties Trust; iStar Financial Inc.; Kimco Realty Corporation; National Retail Properties, Inc.; Realty Income Corporation; and W.P. Carey & Co. LLC. | |
• | Size Peer Group. This group consists of 10 public REITS, which operate across multiple asset classes and are similar in size to our total capitalization. As of September 30, 2007, the total capitalization of this peer group ranges from approximately $3.6 billion to $7.1 billion, with a median of $5.4 billion. The companies included in this peer group are: Alexandria Real Estate Equities, Inc.; BRE Properties, Inc.; Camden Property Trust; Federal Realty Investment Trust; First Industrial Realty Trust, Inc.; Home Properties, Inc.; Mack-Cali Realty Corporation; Maguire Properties, Inc.; Pennsylvania Real Estate Investment Trust; and Weingarten Realty Investors. |
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• | Medical Insurance. All full-time employees are covered under our group health insurance policy. We currently pay 100% of the premiums, but have the ability to change the percentage of premiums that we pay in our sole discretion. | |
• | Dental Insurance. All full-time employees are covered under our group dental insurance policy. We currently pay 100% of the premiums, but have the ability to change the percentage of premiums that we pay in our sole discretion. | |
• | Life and Accidental Death and Dismemberment. All full-time employees are covered by our group life and accidental death and dismemberment policy. The benefit is equal to two times base salary (excluding incentive compensation) to a maximum of $500,000. We pay all premiums for this insurance. | |
• | Long-Term Disability Insurance. All full-time employees are covered by our group long-term disability insurance policy. The benefit is equal to 60% of pre-disability base salary (excluding incentive compensation), after a 90 day waiting period. We pay all premiums for this insurance. | |
• | Short-Term Disability Insurance. All full-time employees are covered by our group short-term disability insurance policy. The benefit for the employees in our New York location (which include all of our executive officers) is equal to $170 per week, after a 7 day waiting period. | |
• | 401(k) Plan. All full-time employees 21 years of age and older are eligible to participate in our 401(k) Plan, which has a Roth 401(k) option. Subject to vesting requirements, we match 100% of the first 2.5% of an employee’s base salary that is contributed to the 401(k) Plan through salary deferral. In addition, at management’s discretion, a pro-rata contribution may be made at year end to each active member of the 401(k) Plan. Vesting of our contribution is based on years of service as follows: 1 year 25%, 2 years 50%, 3 years 75%, and 4 years 100%. |
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• | Transit Benefit. We provide each full-time employee using public transit or paid parking to commute to work with a public transit benefit of $115.00 per month or paid parking benefit of $220.00 per month. | |
• | Employee Stock Purchase Plan. We maintain an employee stock purchase plan where full-time employees can invest in our common shares through payroll deductions on a quarterly basis at a 5% discount. None of our executive officers were enrolled in this plan during the year ended December 31, 2007. Patrick Carroll enrolled in the program on April 9, 2008. | |
• | Business Travel Insurance. All exempt full-time employees are covered under our business travel insurance policy when traveling on company business. The benefit is 10 times annual base salary (excluding incentive compensation) up to $1.0 million. All premiums are paid by us. |
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Change in | ||||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||||||||||
Nonqualified | ||||||||||||||||||||||||||||||||||||
Non-Equity | Deferred | |||||||||||||||||||||||||||||||||||
Share | Option | Incentive Plan | Compensation | All Other | ||||||||||||||||||||||||||||||||
Name and | Salary | Bonus | Awards | Awards | Compensation | Earnings | Compensation | Total | ||||||||||||||||||||||||||||
Principal Position | Fiscal Year | ($)(1) | ($)(1)(2) | ($)(3) | ($)(4) | ($)(5) | ($)(6) | ($)(7) | ($) | |||||||||||||||||||||||||||
T. Wilson Eglin | 2007 | 550,000 | 206,250 | 613,068 | — | 618,750 | — | 244,059 | 2,232,127 | |||||||||||||||||||||||||||
Chief Executive Officer, | 2006 | 475,000 | 684,000 | 4,601,243 | — | — | — | 413,762 | 6,174,005 | |||||||||||||||||||||||||||
President and Chief Operating Officer | ||||||||||||||||||||||||||||||||||||
Patrick Carroll | 2007 | 360,000 | 135,000 | 301,733 | — | 405,000 | — | 123,897 | 1,325,630 | |||||||||||||||||||||||||||
Chief Financial Officer, | 2006 | 325,000 | 468,000 | 2,859,011 | — | — | — | 246,008 | 3,898,019 | |||||||||||||||||||||||||||
Treasurer and Executive Vice President | ||||||||||||||||||||||||||||||||||||
E. Robert Roskind | 2007 | 450,000 | — | 269,600 | — | 393,000 | — | 108,606 | 1,221,206 | |||||||||||||||||||||||||||
Chairman | 2006 | 450,000 | 648,000 | 4,239,301 | — | — | — | 304,636 | 5,641,937 | |||||||||||||||||||||||||||
Richard J. Rouse | 2007 | 475,000 | — | 465,867 | — | 505,000 | — | 188,580 | 1,634,447 | |||||||||||||||||||||||||||
Vice Chairman and | 2006 | 450,000 | 648,000 | 3,644,008 | — | — | — | 329,791 | 5,071,799 | |||||||||||||||||||||||||||
Chief Investment Officer | ||||||||||||||||||||||||||||||||||||
Michael L. Ashner(8) | 2007 | 450,000 | — | — | — | 393,000 | — | 11,250 | 854,250 | |||||||||||||||||||||||||||
Executive Chairman and Director of Strategic Acquisitions | ||||||||||||||||||||||||||||||||||||
John B. Vander Zwaag(9) | 2007 | 141,667 | — | — | — | — | — | 3,701,561 | 3,843,228 | |||||||||||||||||||||||||||
Executive Vice President | 2006 | 315,000 | 453,600 | 1,298,501 | — | — | — | 113,051 | 2,180,152 | |||||||||||||||||||||||||||
and Head of Portfolio Management |
(1) | The amounts shown include amounts earned but a portion of which may be deferred at the election of the officer under our 401(k) Plan. | |
(2) | The bonuses shown for 2006 and 2007 were paid in full in January 2007 and January 2008, respectively. | |
(3) | The amounts in this column equal the applicable year’s amortization of the outstanding non-vested share awards. Each share award is multiplied by the fair market value of our common shares on that award’s grant date and the sum of these products is amortized over the vesting period for each award. The amortization of stock compensation incorporated in our 2007 consolidated financial statements is calculated in the same manner, in accordance with Statement of Financial Accounting Standard No. 123R,Share Based Payments (“SFAS 123R”). On December 28, 2006, the Compensation Committee approved the acceleration of vesting of all time-based non-vested shares, which resulted in an expense of approximately $10.8 million. Non-vested shares are entitled to dividends and voting rights. | |
(4) | No common share options were granted during the fiscal years ended December 31, 2006 and 2007 to any of the named executive officers and no named executive officer holds unexercised common share options. | |
(5) | Bonuses and share awards for the fiscal year ended December 31, 2006 were not made pursuant to our non-equity incentive plans. See “Compensation Discussion and Analysis,” above for a description of our non-equity incentive plan for the year ending December 31, 2007. | |
(6) | Non-qualified deferred compensation consists solely of a trust established for the benefit of certain of our executive officers in which in previous years such persons had the option to place non-vested common share awards. Participant accounts only hold our common shares. Dividends on these shares are paid by us to the trust, which makes a corresponding distribution to the participant. Earnings on the participant accounts consist of dividends and increase in market value of the common shares in the trust. None of the earnings were above the market. |
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(7) | Amount represents: (1) dividends paid on non-vested common shares, (2) the dollar value of life insurance premiums paid by us during the applicable fiscal year with respect to portable life insurance policies for the life of the executive officer (excluding John B. Vander Zwaag), (3) contributions by us to the executive officer’s account under our 401(k) Plan, and (4) cash severance benefits paid to Mr. Vander Zwaag. The premiums paid by us under company sponsored health care insurance, dental insurance, long-term disability insurance and life insurance available to all employees, are excluded. The following table details the 2007 other compensation amounts for each executive officer: |
Dividends Paid on | ||||||||||||||||||||
Non-Vested Common | Company-Paid Life | 401(k) Company | ||||||||||||||||||
Executive | Shares | Insurance Premiums | Contributions | Cash Severance | Total | |||||||||||||||
T. Wilson Eglin | $ | 231,495 | $ | 1,314 | $ | 11,250 | — | $ | 244,059 | |||||||||||
Patrick Carroll | $ | 111,935 | $ | 712 | $ | 11,250 | — | $ | 123,897 | |||||||||||
E. Robert Roskind | $ | 95,244 | $ | 2,112 | $ | 11,250 | — | $ | 108,606 | |||||||||||
Richard J. Rouse | $ | 174,603 | $ | 2,727 | $ | 11,250 | — | $ | 188,580 | |||||||||||
Michael L. Ashner | — | — | $ | 11,250 | — | $ | 11,250 | |||||||||||||
John B. Vander Zwaag | $ | 46,547 | — | $ | 6,729 | $ | 3,648,285 | $ | 3,701,561 |
(8) | On March 20, 2008, Michael L. Ashner stepped down from his position as our Executive Chairman and Director of Strategic Acquisitions. We entered into a Separation and General Release with Mr. Ashner pursuant to which the vesting of unvested shares was accelerated. | |
(9) | On May 31, 2007, John B. Vander Zwaag stepped down from his position as our Executive Vice President and Head of Portfolio Management. We entered into a Separation and General Release with Mr. Vander Zwaag pursuant to which he received a cash severance payment, the vesting of unvested shares was accelerated and a lockup and clawback agreement was terminated. |
All Other | ||||||||||||||||||||||||||||||||||||
Share | ||||||||||||||||||||||||||||||||||||
Awards; | Grant Date | |||||||||||||||||||||||||||||||||||
Estimated Future Payouts Under Non-Equity Incentive Plan Awards ($) | Estimated Future Payouts Under Equity Incentive Plan Awards ($) | Number of | Fair Value of | |||||||||||||||||||||||||||||||||
Name | Grant Date | Threshold | Target | Maximum | Threshold | Target | Maximum | Shares | Share Award ($) | |||||||||||||||||||||||||||
T. Wilson Eglin | 02/06/07(3 | ) | 206,250 | 412,500 | 618,750 | 257,813 | 515,626 | 773,437 | — | — | ||||||||||||||||||||||||||
02/06/07(4 | ) | — | — | — | — | — | 6,400,000 | — | — | |||||||||||||||||||||||||||
Patrick Carroll | 02/06/07(3 | ) | 135,000 | 270,000 | 405,000 | 168,750 | 337,500 | 506,250 | — | — | ||||||||||||||||||||||||||
02/06/07(4 | ) | — | — | — | — | — | 3,200,000 | — | — | |||||||||||||||||||||||||||
E. Robert Roskind | 02/06/07(1 | ) | 168,750 | 337,500 | 506,250 | 210,937 | 421,876 | 632,813 | — | — | ||||||||||||||||||||||||||
02/06/07(4 | ) | — | — | — | — | — | 4,400,000 | — | — | |||||||||||||||||||||||||||
Richard J. Rouse | 02/06/07(3 | ) | 178,125 | 356,250 | 534,375 | 222,656 | 445,313 | 667,969 | — | — | ||||||||||||||||||||||||||
02/06/07(4 | ) | — | — | — | — | — | 4,400,000 | — | — | |||||||||||||||||||||||||||
Michael L. Ashner(1) | 02/06/07(3 | ) | 168,750 | 337,500 | 506,250 | 210,937 | 421,876 | 632,813 | — | — | ||||||||||||||||||||||||||
02/06/07(4 | ) | — | — | — | — | — | 4,400,000 | — | — | |||||||||||||||||||||||||||
John B. Vander Zwaag(2) | 02/06/07(4 | ) | — | — | — | — | — | 3,200,000 | — | — |
(1) | Pursuant to the Separation and General Release, Mr. Ashner is not entitled to any future payouts under our executive compensation programs, including the awards described in this table. | |
(2) | Pursuant to the Separation and General Release, Mr. Vander Zwaag is not entitled to any future payouts under our executive compensation programs, including the awards described in this table. | |
(3) | On February 6, 2007, the Compensation Committee approved pre-established performance metrics for annual cash incentive opportunities and annual long-term incentive opportunities under our 2007 executive compensation program. The actual amounts paid out under the plan awards during 2007, which were determined on January 8, 2008, and a description of the performance metrics are set forth above under “Recap of Executive Compensation Program for 2007.” |
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(4) | On February 6, 2007, the Compensation Committee approved allocations under the Outperformance Program, a description of which is set forth above under “Recap of Executive Compensation Program for 2007 — Outperformance Program.” No payouts were made under the Outperformance Program during 2007. |
Option Awards | Share Awards | |||||||||||||||||||||||||||||||||||
Equity | Equity | Equity | ||||||||||||||||||||||||||||||||||
Incentive | Incentive Plan | Incentive Plan | ||||||||||||||||||||||||||||||||||
Plan | Awards: | Awards: | ||||||||||||||||||||||||||||||||||
Awards: | Number of | Market or | ||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Unearned | Payout Value of | ||||||||||||||||||||||||||||||||
Securities | Securities | Securities | Number of | Shares, Units | Unearned | |||||||||||||||||||||||||||||||
underlying | underlying | Underlying | Shares or | Market Value of | or Other | Shares, Units | ||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unexercised | Option | Option | Units That | Shares or Units | Rights That | or Other Rights | ||||||||||||||||||||||||||||
Options (#) | Options (#) | Unearned | Exercise | Exercise | Have Not | That Have Not | Have Not | That Have Not | ||||||||||||||||||||||||||||
Name | Exercisable | Unexercisable | Options (#) | Price | Date | Vested (#) | Vested ($)(1) | Vested (#) | Vested ($)(1) | |||||||||||||||||||||||||||
T. Wilson Eglin | — | — | — | — | — | 24,884 | (2) | 361,813 | 109,511 | (6) | 1,592,290 | |||||||||||||||||||||||||
Patrick Carroll | — | — | — | — | — | 17,027 | (3) | 247,573 | 47,957 | (7) | 697,295 | |||||||||||||||||||||||||
E. Robert Roskind | — | — | — | — | — | 23,575 | (4) | 342,781 | 31,719 | (8) | 461,194 | |||||||||||||||||||||||||
Richard J. Rouse | — | — | — | — | — | 23,575 | (5) | 342,781 | 77,791 | (9) | 1,131,081 | |||||||||||||||||||||||||
Michael L. Ashner | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
John B. Vander Zwaag | — | — | — | — | — | — | — | — | — |
(1) | Market value has been calculated as the closing price of our common shares on the New York Stock Exchange on December 31, 2007, which was $14.54 per share. | |
(2) | Granted on December 28, 2006. 6,221 non-vested common shares vest on each of December 28, 2008, 2009, 2010 and 2011. | |
(3) | Granted on December 28, 2006. 4,257 non-vested common shares vest on each of December 28, 2008, 2009 and 2010 and 4,256 non-vested common shares vest on December 28, 2011. | |
(4) | Granted on December 28, 2006. 5,894 non-vested common shares vest on each of December 28, 2008, 2009 and 2010 and 5,893 non-vested common shares vest on December 28 2011. | |
(5) | Granted on December 28, 2006. 5,894 non-vested common shares vest on each of December 28, 2008, 2009 and 2010 and 5,893 non-vested common shares vest on December 28 2011. | |
(6) | Consists of (i) 18,190 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; (ii) 45,249 non-vested common shares granted on January 31, 2006 vest in full on January 31, 2011, provided certain performance targets are met; and (iii) 46,072 non-vested common shares granted on January 31, 2003, which vest in full when certain performance targets are met. | |
(7) | Consists of (i) 6,821 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; (ii) 18,100 non-vested common shares granted on January 31, 2006 vest in full on January 31, 2011, provided certain performance targets are met; and (iii) 23,036 non-vested common shares granted on January 31, 2003, which vest in full when certain performance targets are met. | |
(8) | Consists of (i) 9,095 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met and (ii) 22,624 non-vested common shares granted on January 31, 2006 vest in full on January 31, 2011, provided certain performance targets are met. |
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(9) | Consists of (i) 9,095 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; (ii) 22,624 non-vested common shares granted on January 31, 2006 vest in full on January 31, 2011, provided certain performance targets are met; and (iii) 46,072 non-vested common shares granted on January 31, 2003, which vest in full when certain performance targets are met. |
Option Awards | Share Awards | |||||||||||||||
Number of | Number of | |||||||||||||||
Securities | Shares | |||||||||||||||
Acquired on | Value Realized on | Acquired on | Value Realized | |||||||||||||
Name | Exercise (#) | Exercise ($) | Vesting (#) | on Vesting ($) | ||||||||||||
T. Wilson Eglin | — | — | 45,934(1 | ) | 981,441 | (1) | ||||||||||
Patrick Carroll | — | — | 33,816(2 | ) | 725,043 | (2) | ||||||||||
E. Robert Roskind | — | — | 51,357(3 | ) | 1,105,576 | (3) | ||||||||||
Richard J. Rouse | — | — | 41,875(4 | ) | 892,990 | (4) | ||||||||||
Michael L. Ashner | — | — | — | — | ||||||||||||
John B. Vander Zwaag | — | — | 57,297(5 | ) | 1,197,967 | (5) |
(1) | Represents (i) 39,713 non-vested common shares which vested on January 3, 2007 at a price of $22.42 per share and (ii) 6,221 common shares which vested on December 27, 2007 at a price of $14.64 per share. | |
(2) | Represents (i) 29,560 non-vested common shares which vested on January 3, 2007 at a price of $22.42 per share and (ii) 4,256 common shares which vested on December 27, 2007 at a price of $14.64 per share. | |
(3) | Represents (i) 45,464 non-vested common shares which vested on January 3, 2007 at a price of $22.42 per share and (ii) 5,893 common shares which vested on December 27, 2007 at a price of $14.64 per share. | |
(4) | Represents (i) 35,982 non-vested common shares which vested on January 3, 2007 at a price of $22.42 per share and (ii) 5,893 common shares which vested on December 27, 2007 at a price of $14.64 per share. | |
(5) | Represents (i) 9,434 non-vested common shares which vested on January 3, 2007 at a price of $22.42 per share and (ii) 47,863 common shares which vested on May 18, 2007 at a price of $20.61 per share. |
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Aggregate | Aggregate | |||||||||||||||||||
Executive | Registrants | Withdrawals/ | Balance at | |||||||||||||||||
Contributions | Contributions in | Aggregate Earnings | Distributions in | December 31, | ||||||||||||||||
Name | in 2007 | 2007 ($) | in 2007 ($) | 2007 ($) | 2007 ($)(1) | |||||||||||||||
T. Wilson Eglin | — | — | (805,789 | ) | 225,412 | 1,902,748 | ||||||||||||||
Patrick Carroll | — | — | — | — | — | |||||||||||||||
E. Robert Roskind | — | — | (1,033,493 | ) | 289,110 | 2,440,437 | ||||||||||||||
Richard J. Rouse | — | — | (758,758 | ) | 212,255 | 1,791,692 | ||||||||||||||
Michael L. Ashner | — | — | — | — | — | |||||||||||||||
John B. Vander Zwaag | — | — | — | — | — |
(1) | In accordance with the trust agreements, distributions/withdrawals by T. Wilson Eglin of 83,402 common shares, by E. Robert Roskind of 108,559 common shares and by Richard J. Rouse of 79,466 common shares will occur on January 1, 2011 and complete distribution/withdrawal of each participant’s account will be made in the event of a change in control or termination of the named executive officer’s employment. |
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• | any earned but unpaid base salary for the period prior to termination and any earned but unpaid bonuses, for prior periods which have ended at the time of such termination; | |
• | any rights to which he is entitled in accordance with any applicable plan or program provisions under any employee benefit plan, program or arrangement, fringe benefit or incentive plan; | |
• | a severance payment equal to three times the sum of: (x) the named executive officer’s base salary at termination, (y) his regular target bonus, assuming achievement of 100% of all targets under our executive bonus plan in effect for the fiscal year in which termination occurs, and (z) either (A) the average of the fair market value, measured as of the grant date, of the long-term incentive awards we have granted to or agreed to grant to (if such grant has not yet been made) the named executive officer during the fiscal year during which the termination occurs and the fiscal year immediately preceding the year during which the termination occurs, or (B) if we have not agreed to grant a long-term incentive award to the executive officer during the fiscal year during which the termination occurs, then the average fair market value, measured as of the grant date of the long-term incentive awards we have granted to the named executive officer during the two fiscal years immediately preceding the year during which the termination occurs; and | |
• | continuation of medical, dental, disability, life insurance and other employee welfare benefits then provided to our senior executives for a period of three years following the date of termination, or if the named executive officer is ineligible for such benefits, then a lump sum payment of the cash equivalent of the premiums or other contributions that we would otherwise pay to continue coverage. |
• | any earned but unpaid base salary for the period prior to termination and any earned but unpaid bonuses, for prior periods which have ended at the time of such termination; | |
• | any rights to which he is entitled in accordance with any applicable plan or program provisions under any employee benefit plan, program or arrangement, fringe benefit or incentive plan; | |
• | a severance payment equal to one times the named executive officer’s base salary at termination; |
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• | all non-vested bonus and long-term incentive awards previously granted to the named executive officer, including but not limited to restricted shares, deferred share awards and share options, shall earn and fully vest and become non-forfeitable; | |
• | a pro rata portion of the bonuses he would have received under our executive bonus plan in effect at the time of his termination has he remained employed by us for the full fiscal year in which his termination occurs; | |
• | a pro rata portion of any payment he would have received or award that would have vested under any performance-based long-term incentive award or program has he remained employed by us for the full performance period or periods in which his termination occurs; and | |
• | continuation of group health plan then provided to senior executives for a period of two years following the date of termination, or if the named executive officer is ineligible for such group health plan, then a lump sum payment of the cash equivalent of the premiums or other contributions that we would otherwise pay to continue coverage . |
• | any earned but unpaid base salary for the period prior to termination and any earned but unpaid bonuses, for prior periods which have ended at the time of such termination; and | |
• | any rights to which he is entitled in accordance with any applicable plan or program provisions under any employee benefit plan, program or arrangement, fringe benefit or incentive plan. |
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Without Cause or | Upon a Change in | W/Cause or w/o Good | ||||||||||||||
T. Wilson Eglin | with Good Reason | Control | Death or Disability | Reason | ||||||||||||
Base salary portion of severance payment(1) | $ | 1,650,000 | $ | 1,650,000 | $ | 550,000 | — | |||||||||
Bonus portion of severance payment(2) | 1,650,000 | 1,650,000 | — | — | ||||||||||||
Long-term incentive portion of severance payment(3) | 1,461,132 | 1,461,132 | — | — | ||||||||||||
Welfare benefits | 57,624 | 57,624 | — | — | ||||||||||||
Group health care benefits | — | — | 26,460 | — | ||||||||||||
Value of accelerated equity awards(4) | 2,152,487 | 2,152,487 | 2,152,487 | — | ||||||||||||
Excise Tax Gross Up | — | 2,917,394 | — | — | ||||||||||||
Total Payments and Benefits | $ | 6,971,243 | $ | 9,888,637 | $ | 2,728,947 | — | |||||||||
(1) | Base salary portion of severance payment equals 3 times the base salary, which is currently, and at December 31, 2007 was, $550,000. | |
(2) | Bonus portion of severance payment equals 3 times the target bonus under the then bonus plan, which is currently, and at December 31, 2007 was, 100% of base salary. Excludes any pro rata bonus. | |
(3) | Long-term incentive portion of severance payment equals 3 times the average of the long-term awards for 2007 and 2006, which were granted on January 8, 2008 and December 28, 2006, respectively, with grant date values of $574,999 and $399,089. | |
(4) | Based on the closing price of our common shares on the New York Stock Exchange on December 31, 2007, of $14.54 per share. Consists of (i) 29,660 non-vested common shares granted on January 8, 2008, which vest in full on January 8, 2011 and which are not included in the Outstanding Equity Awards at Fiscal Year End table above, (ii) 24,884 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011; (iii) 18,190 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; (iv) 45,249 non-vested common shares granted on January 31, 2006, which vest in full on January 31, 2011, provided certain performance targets are met; and (v) 30,056 non-vested common shares granted on January 31, 2003, which vest in full when certain performance targets are met. Excludes 16,016 common shares granted on January 31, 2003, which vested on January 1, 2008 and which are included in the Outstanding Equity Awards at Fiscal Year End table above. |
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W/Cause or w/o | ||||||||||||||||
Without Cause or | Upon a Change in | Good | ||||||||||||||
Patrick Carroll | with Good Reason | Control | Death or Disability | Reason | ||||||||||||
Base salary portion of severance payment(1) | $ | 1,125,000 | $ | 1,125,000 | $ | 375,000 | — | |||||||||
Bonus portion of severance payment(2) | 1,125,000 | 1,125,000 | — | — | ||||||||||||
Long-term incentive portion of severance payment(3) | 1,049,465 | 1,049,465 | — | — | ||||||||||||
Welfare benefits | 55,818 | 55,818 | — | — | ||||||||||||
Group health care benefits | — | — | 26,460 | — | ||||||||||||
Value of accelerated equity awards(4) | 1,240,931 | 1,240,931 | 1,240,931 | — | ||||||||||||
Excise Tax Gross Up | — | 1,832,520 | — | — | ||||||||||||
Total Payments and Benefits | $ | 4,596,214 | $ | 6,428,734 | $ | 1,642,391 | — | |||||||||
(1) | Base salary portion of severance payment equals 3 times the base salary, which was increased to $375,000 on January 8, 2008, effective as of January 1, 2008. The base salary and bonus portions reflect this increase. | |
(2) | Bonus portion of severance payment equals 3 times the target bonus under the then bonus plan, which is currently, and at December 31, 2007 was, 100% of base salary. Excludes any pro rata bonus. | |
(3) | Long-term incentive portion of severance payment equals 3 times the average of the long-term awards for 2007 and 2006, which were granted on January 8, 2008 and December 28, 2006, respectively, with grant date values of $549,990 and $149,653. | |
(4) | Based on the closing price of our common shares on the New York Stock Exchange on December 31, 2007, of $14.54 per share. Consists of (i) 28,370 non-vested common shares granted on January 8, 2008, which vest in full on January 8, 2011 and which are not included in the Outstanding Equity Awards at Fiscal Year End table above, (ii) 17,027 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011; (iii) 6,821 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; (iv) 18,100 non-vested common shares granted on January 31, 2006, which vest in full on January 31, 2011, provided certain performance targets are met; and (v) 15,028 non-vested common shares granted on January 31, 2003, which vest in full when certain performance targets are met. Excludes 8,008 common shares granted on January 31, 2003, which vested on January 1, 2008 and which are included in the Outstanding Equity Awards at Fiscal Year End table above. |
With Cause or | Upon a Change in | W/ Cause or w/o | ||||||||||||||
E. Robert Roskind | with Good Reason | Control | Death or Disability | Good Reason | ||||||||||||
Base salary portion of severance payment(1) | $ | 1,350,000 | $ | 1,350,000 | $ | 450,000 | — | |||||||||
Bonus portion of severance payment(2) | 1,350,000 | 1,350,000 | — | — | ||||||||||||
Long-term incentive portion of severance payment(3) | 789,801 | 789,801 | — | — | ||||||||||||
Welfare benefits | 47,655 | 47,655 | — | — | ||||||||||||
Group health care benefits | — | — | 18,218 | — | ||||||||||||
Value of accelerated equity awards(4) | 1,049,221 | 1,049,221 | 1,049,221 | — | ||||||||||||
Excise Tax Gross Up | — | 2,177,788 | — | — | ||||||||||||
Total Payments and Benefits | $ | 4,586,677 | $ | 6,764,465 | $ | 1,517,439 | — | |||||||||
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(1) | Base salary portion of severance payment equals 3 times the base salary, which is currently, and at December 31, 2007 was, $450,000. | |
(2) | Bonus portion of severance payment equals 3 times the target bonus under the then bonus plan, which is currently, and at December 31, 2007 was, 100% of base salary. Excludes any pro rata bonus. | |
(3) | Long-term incentive portion of severance payment equals 3 times the average of the long-term awards for 2007 and 2006, which were granted on January 8, 2008 and December 28, 2006, respectively, with grant date values of $326,990 and $199,544. | |
(4) | Based on the closing price of our common shares on the New York Stock Exchange on December 31, 2007, of $14.54 per share. Consists of (i) 16,867 non-vested common shares granted on January 8, 2008, which vest in full on January 8, 2011 and which are not included in the Outstanding Equity Awards at Fiscal Year End table above, (ii) 23,575 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011; (iii) 9,095 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; and (iv) 22,624 non-vested common shares granted on January 31, 2006, which vest in full on January 31, 2011, provided certain performance targets are met. |
With Cause or with | Upon a Change in | Death or | W/ Cause or w/o | |||||||||||||
Richard J. Rouse | Good Reason | Control | Disability | Good Reason | ||||||||||||
Base salary portion of severance payment(1) | $ | 1,425,000 | $ | 1,425,000 | $ | 475,000 | — | |||||||||
Bonus portion of severance payment(2) | 1,425,000 | 1,425,000 | — | — | ||||||||||||
Long-term incentive portion of severance payment(3) | 929,298 | 929,298 | — | — | ||||||||||||
Welfare benefits | 49,500 | 49,500 | — | — | ||||||||||||
Group health care benefits | — | — | 18,218 | — | ||||||||||||
Value of accelerated equity awards(4) | 1,555,984 | 1,555,984 | 1,555,984 | — | ||||||||||||
Excise Tax Gross Up | — | 2,607,085 | — | — | ||||||||||||
Total Payments and Benefits | $ | 5,384,782 | $ | 7,991,867 | $ | 2,049,202 | — | |||||||||
(1) | Base salary portion of severance payment equals 3 times the base salary, which is currently, and at December 31, 2007 was, $475,000. | |
(2) | Bonus portion of severance payment equals 3 times the target bonus under the then bonus plan, which is currently, and at December 31, 2007 was, 100% of base salary. Excludes any pro rata bonus. | |
(3) | Long-term incentive portion of severance payment equals 3 times the average of the long-term awards for 2007 and 2006, which were granted on January 8, 2008 and December 28, 2006, respectively, with grant date values of $419,988 and $199,544. | |
(4) | Based on the closing price of our common shares on the New York Stock Exchange on December 31, 2007, of $14.54 per share. Consists of (i) 21,664 non-vested common shares granted on January 8, 2008, which vest in full on January 8, 2011 and which are not included in the Outstanding Equity Awards at Fiscal Year End table above, (ii) 23,575 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011; (iii) 9,095 non-vested common shares granted on December 28, 2006, which vest in full on December 28, 2011, provided certain performance targets are met; (iv) 22,624 non-vested common shares granted on January 31, 2006, which vest in full on January 31, 2011, provided certain performance targets are met; and (v) 30,056 non-vested common shares granted on January 31, 2003, which vest in full when certain performance targets are met. Excludes 16,016 common shares granted on January 31, 2003, which vested on January 1, 2008 and which are included in the Outstanding Equity Awards at Fiscal Year End table above. |
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Change in | ||||||||||||||||||||||||||||
Pension Value | ||||||||||||||||||||||||||||
Fees | and | |||||||||||||||||||||||||||
Earned or | Non-Equity | Nonqualified | ||||||||||||||||||||||||||
paid in | Share | Option | Incentive Plan | Deferred | All Other | |||||||||||||||||||||||
Name and | cash ($) | Awards | Awards | Compensation | Compensation | Compensation | Total | |||||||||||||||||||||
Principal Position | (1) | ($)(2) | ($) | ($) | Earnings ($) | ($) | ($) | |||||||||||||||||||||
Clifford Broser | 7,500 | 92,075 | — | — | — | — | 99,575 | |||||||||||||||||||||
Geoffrey Dohrmann | 23,000 | 108,990 | — | — | — | — | 131,990 | |||||||||||||||||||||
Carl D. Glickman | 12,000 | 122,990 | — | — | — | — | 134,990 | |||||||||||||||||||||
James Grosfeld | 12,500 | 104,990 | — | — | — | — | 117,490 | |||||||||||||||||||||
Harold First(2) | 4,500 | — | — | — | — | — | 4,500 | |||||||||||||||||||||
Richard Frary | 13,000 | 103,075 | — | — | — | — | 116,075 | |||||||||||||||||||||
Kevin W. Lynch | 24,000 | 116,490 | — | — | — | — | 140,490 |
(1) | Prior to April 2007, all of our trustees had elected to receive 100% of their fees in common shares pursuant to our 1994 Director Share Plan, which provides for a 5% discount. Due to the elimination of the 5% discount from our dividend reinvestment plan, all of our trustees elected to receive future fees in cash. | |
(2) | Trustees are granted 2,500 shares upon joining our Board of Trustees and receive annual share grants of 3,000 shares which are paid in arrears. These share grants are fully-vested and are eligible to receive dividends from the date of grant. The initial share grant for Harold First was awarded in 2008. |
Compensation Component | 2008 Compensation | |||
RETAINERS | ||||
Lead Independent Trustee | $ | 20,000 | ||
Annual Member Retainer | $ | 30,000 | ||
Audit Chairperson Retainer | $ | 17,500 | ||
Compensation Chairperson Retainer | $ | 10,000 | ||
Nominating & Corp. Gov. Committee Chairperson Retainer | $ | 10,000 | ||
MEETING FEES: | ||||
In-Person Board Meeting Fees | $ | 1,500 | ||
Telephonic Board Meeting Fees | $ | 1,500 | ||
In Person Committee Meeting Fees | $ | 1,000 | ||
Telephonic Committee Meeting Fees | $ | 1,000 | ||
EQUITY AWARD: | ||||
Initial Equity Award | $ | 45,000 | ||
Annual Equity Award | $ | 45,000 (pro rated for partial years | ) |
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2007 | 2006 | |||||||
Audit fees | $ | 2,028,308 | $ | 1,430,000 | ||||
Audit — related fees | 905,896 | (1) | 662,913 | (2) | ||||
Total audit and audit related fees | 2,934,204 | 2,092,913 | ||||||
Tax fees(3) | 161,650 | 345,600 | ||||||
All other fees | 25,721 | (4) | 96,626 | (5) | ||||
Total fees | $ | 3,121,575 | $ | 2,535,139 | ||||
(1) | 2007 audit — related fees include services rendered relating to review of registration statements, issuance of consents and comfort letters, audits of the MLP and joint ventures and work related to LSAC’s initial public offering. | |
(2) | 2006 audit — related fees include services rendered relating to review of registration statements, issuance of consents and comfort letters and audits of joint ventures. | |
(3) | Tax fees consisted of fees for tax compliance and preparation services for us and LSAC. | |
(4) | Relates to tax due diligence fees on earnings and profit treatment and built-in gains, a licensing fee paid by the Company to KPMG for accounting research software and a CPE seminar. | |
(5) | Relates to tax due diligence fees on merger with Newkirk and a licensing fee paid by the Company to KPMG for accounting research software. |
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THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE VOTED "FOR" THE PROPOSALS. | Please | c | ||
Mark Here for Address | ||||
Change or Comments | ||||
SEE REVERSE SIDE | ||||
ITEM 1. ELECTION OF TRUSTEES |
Nominees: | WITHHOLD | |||||||
FOR ALL | FOR ALL | |||||||
(except as indicated | ||||||||
to the contrary below) | ||||||||
01 E. Robert Roskind 02 Richard J. Rouse | c | c | ||||||
03 T. Wilson Eglin | ||||||||
04 Clifford Broser | ||||||||
05 Geoffrey Dohrmann | ||||||||
06 Harold First | ||||||||
07 Richard Frary | ||||||||
08 Carl D. Glickman | ||||||||
09 James Grosfeld | ||||||||
10 Kevin W. Lynch | ||||||||
For all, except for the nominees you list below: (write that nominee’s name in the space provided below.) | ||||||||
ITEM 2. TO RATIFY THE APPOINTMENT OF KPMG LLP AS THE COMPANY’S INDEPENDENT REGISTERED PUBLIC ACCOUTING FIRM FOR THE YEAR ENDING DECEMBER 31, 2008. | ||||||||
FOR | AGAINST | ABSTAIN | ||||||
c | c | c | ||||||
ITEM 3. TO TRANSACT SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE 2008 ANNUAL MEETING, INCLUDING ANY ADJOURNMENT OR POSTPONEMENT THEROF. | ||||||||
FOR | AGAINST | ABSTAIN | ||||||
c | c | c | ||||||
Signature: | Signature: | Date: | ||||||||||||||
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ARE AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK.
the day prior to annual meeting day.
Your Internet or telephone vote authorizes the named proxies to vote your shares
in the same manner as if you marked, signed and returned your proxy card.
INTERNET http://www.proxyvoting.com/Ixp | TELEPHONE 1-866-540-5760 | |||||||
OR | ||||||||
Use the internet to vote your proxy. Have your proxy card in hand when you access the web site. | Use any touch-tone telephone to vote your proxy. Have our proxy card in hand when you call. | |||||||
To authorize your proxy to vote by mail, mark, sign and date your proxy card and return it in the enclosed postage-
paid envelope.
http://www.snl.com/IRWebLinkX/GenPage.aspx?IID=103128&GKP=202728.
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LEXINGTON REALTY TRUST
Address Change/Comments(Mark the corresponding box on the reverse side) | ||||
o | View account status | o | View payment history for dividends | |||||||||
o | View certificate history | o | Make address changes | |||||||||
o | View book-entry information | o | Obtain a duplicate 1099 tax form | |||||||||
o | Establish/change your PIN |
Call 1-877-978-7778 between 9am-7pm
Monday-Friday Eastern Time
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Effective Date | 22.35 | 25.00 | 27.50 | 30.00 | 32.50 | 35.00 | 37.50 | 40.00 | 45.00 | 50.00 | 55.00 | 60.00 | 65.00 | 70.00 | 75.00 | |||||||||||||||||||||||||||||||||||||||||||||
December 2, 2004 | 0.373 | 0.289 | 0.222 | 0.171 | 0.133 | 0.102 | 0.081 | 0.064 | 0.044 | 0.032 | 0.025 | 0.020 | 0.017 | 0.014 | 0.012 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2005 | 0.373 | 0.289 | 0.211 | 0.157 | 0.117 | 0.087 | 0.066 | 0.053 | 0.033 | 0.024 | 0.018 | 0.015 | 0.012 | 0.010 | 0.008 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2006 | 0.342 | 0.258 | 0.191 | 0.143 | 0.107 | 0.081 | 0.063 | 0.050 | 0.035 | 0.027 | 0.022 | 0.019 | 0.017 | 0.015 | 0.013 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2007 | 0.362 | 0.261 | 0.184 | 0.130 | 0.093 | 0.066 | 0.049 | 0.038 | 0.026 | 0.021 | 0.018 | 0.016 | 0.014 | 0.012 | 0.011 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2008 | 0.347 | 0.245 | 0.162 | 0.103 | 0.062 | 0.034 | 0.019 | 0.010 | 0.005 | 0.003 | 0.002 | 0.002 | 0.001 | 0.001 | 0.001 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2009 | 0.340 | 0.237 | 0.153 | 0.085 | 0.030 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2010 | 0.310 | 0.222 | 0.145 | 0.082 | 0.029 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2011 | 0.332 | 0.230 | 0.147 | 0.082 | 0.028 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2012 | 0.326 | 0.225 | 0.143 | 0.079 | 0.027 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2013 | 0.325 | 0.223 | 0.141 | 0.078 | 0.026 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||||||||||||||||||||||
November 15, 2014 | 0.304 | 0.214 | 0.138 | 0.077 | 0.026 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
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Clifford Broser
William J. Borruso
Geoffrey Dohrmann
T. Wilson Eglin
Richard Frary
Carl D. Glickman
James Grosfeld
Kevin W. Lynch
E. Robert Roskind
Richard J. Rouse
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ARTICLE I.
SHAREHOLDERS
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SECURITIES AND EXCHANGE COMMISSION
OF THE SECURITIES EXCHANGE ACT OF 1934
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 11-3636084 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
One Penn Plaza, Suite 4015, | ||
New York, New York | 10119 | |
(Address of principal executive offices) | (Zip Code) |
Item of | ||||
Form 10-K | Page | |||
3 | ||||
9 | ||||
19 | ||||
19 | ||||
24 | ||||
24 | ||||
25 | ||||
25 | ||||
26 | ||||
43 | ||||
44 | ||||
44 | ||||
44 | ||||
45 | ||||
45 | ||||
45 | ||||
45 | ||||
45 | ||||
45 | ||||
45 | ||||
(a) Financial Statements and Financial Statement Schedules | 45 | |||
(b) Exhibits | 46 | |||
47 | ||||
79 | ||||
85 |
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• | a wholly-owned portfolio of core office assets; | ||
• | a wholly-owned portfolio of core warehouse/distribution assets; | ||
• | a continuing 50% interest in a co-investment program that invests in senior and subordinated debt interests secured by both net leased and multi-tenanted real estate collateral; | ||
• | a minority interest in a co-investment program that invests in specialty single tenant real estate assets; and | ||
• | equity securities in other net lease companies owned either individually or through an interest in one or more joint ventures or co-investment programs. |
• | acquired substantially all of the outstanding interests in Lexington Acquiport Company, LLC, one of Lexington’s co-investment programs, which resulted in us becoming the sole owner of the co-investment program’s ten primarily single-tenant net leased properties; | ||
• | acquired substantially all of the remaining interests in Lexington/Lion Venture L.P., one of Lexington’s co-investment programs, and thus acquired six primarily single-tenant net leased properties owned by the co-investment program; | ||
• | formed a co-investment program, Net Lease Strategic Assets Fund L.P., which we refer to as NLS, with a subsidiary of Inland American Real Estate Trust, Inc., which acquired 12 assets previously owned by us and 18 properties formerly owned by Lexington and which is under contract to acquire an additional two properties from us and 11 properties from Lexington and may invest in additional “core plus” net leased assets, such as manufacturing assets, call centers and other specialty assets; and | ||
• | sold non-core properties. |
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2007 Rental | ||||||||||||||||
Number of | Square Footage | Revenues | Percentage of 2007 | |||||||||||||
Tenant(1) | Properties | (in thousands) | (in thousands) | Rental Revenue | ||||||||||||
Raytheon Company(2) | 6 | 2,298 | $ | 32,891 | 15.56 | % | ||||||||||
St. Paul Fire and Marine Insurance Co.(3) | 1 | 530 | $ | 25,532 | 12.08 | % |
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(1) | The listed company is either the tenant, the obligor or guarantor with respect to the lease or the successor-in-interest to the initial tenant. | |
(2) | Three of these properties were sold on March 13, 2008 representing 1,328 square feet and $12,518 of our 2007 rental revenues. | |
(3) | The tenant has publicly announced that they will vacate the building at the end of the current lease term in 2009. |
• | interests in first and second mortgage loans and unsecured debt; | ||
• | a 50.0% ownership interest in Concord, an entity formed to acquire and originate loans secured directly or indirectly by real property; | ||
• | equity interests in various entities (including REITs) that own net leased assets; and | ||
• | majority ownership of a management company that provides asset management services to our subsidiaries. |
Class E | Class F | Class G | ||||||||||
Certificate | Certificate | Certificate | ||||||||||
Contractual Principal Amount at December 31, 2007 | $ | 4,824 | $ | 3,859 | $ | 5,794 | ||||||
Interest Rate | 8.25 | % | 8.25 | % | 8.25 | % |
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• | Lexington’s and our annual reports on Form 10-K and all amendments thereto; | ||
• | Lexington’s and our quarterly reports on Form 10-Q and all amendments thereto; | ||
• | Lexington’s and our current reports on Form 8-K and all amendments thereto; and | ||
• | various other filings that we or Lexington make with the SEC. |
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Year | Balloon Payments | |||
2008 | $ 0.7 million; | |||
2009 | $237.4 million; | |||
2010 | $ 61.6 million; | |||
2011 | $ 46.7 million; | |||
2012 | $518.9 million |
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• | the discovery of previously unknown environmental conditions; | ||
• | changes in law; | ||
• | activities of tenants; or | ||
• | activities relating to properties in the vicinity of our properties. |
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Property Charts
Approximate | ||||||||||||
Leaseable | Current | |||||||||||
Building | Term Lease | Precent | ||||||||||
State | City | Sq. Ft. | Principal Tenant(14) | Expiration* | Leased | |||||||
OFFICE: | ||||||||||||
AR | Little Rock | 36,311 | Entergy Arkansas, Inc. | 10/31/2010 | 100% | |||||||
CA | El Segundo(3)(12) | 184,636 | Raytheon Company | 12/31/2018 | 100% | |||||||
CA | El Segundo(3)(12) | 184,636 | Raytheon Company/Direct TV, Inc. | 12/31/2013 | 100% | |||||||
CA | El Segundo(3)(12) | 959,000 | Raytheon Company | 12/31/2018 | 100% | |||||||
CA | Irvine(4) | 136,180 | Assoc. First Capital Corp. | 9/8/2008 | 100% | |||||||
CA | Long Beach(1)(2) | 490,054 | Raytheon Company | 12/31/2008 | 100% | |||||||
CA | Brea | 637,503 | Bank of America NT &SA | 6/30/2012 | 100% | |||||||
CA | Pleasanton(1)(9) | 40,914 | NK Leasehold(10) | 11/30/2009 | 100% | |||||||
CA | San Francisco (9) | 169,846 | Multi-tenant | Various | 92% | |||||||
CA | Walnut Creek(1) | 54,528 | Vacant | None | 0% | |||||||
CO | Colorado Springs | 61,690 | Federal Express Corporation | 4/30/2009 | 100% | |||||||
CO | Colorado Springs | 166,575 | Honeywell International Inc. | 11/30/2013 | 100% | |||||||
CT | Clinton(1)(5) | 41,188 | Unilever Supply Chain Inc. | 12/19/2008 | 100% | |||||||
(Unilever United States, Inc.) | ||||||||||||
FL | Orlando | 355,840 | Harcourt Brace & Company | 3/31/2009 | 100% | |||||||
(Reed Elsevier, Inc.) | ||||||||||||
FL | Orlando(1) | 184,000 | Honeywell, Inc. | 5/1/2013 | 100% | |||||||
FL | Lake Mary | 125,155 | JP Morgan Chase Bank | 9/30/2009 | 100% | |||||||
FL | Lake Mary | 125,920 | JP Morgan Chase Bank | 9/30/2009 | 100% | |||||||
IL | Lisle | 99,329 | National Louis University | 12/31/2019 | 100% | |||||||
IL | Chicago | 227,569 | FCB Worldwide (Interpublic Group of Companies) | 3/15/2014 | 100% | |||||||
IN | Columbus(1) | 390,100 | Cummins Engine Company Inc. | 7/31/2019 | 100% | |||||||
IN | Fishers | 193,000 | Bank One Indiana N.A. | 10/31/2009 | 100% | |||||||
MD | Baltimore(1) | 530,000 | St. Paul Fire and Marine Insurance Co. | 9/30/2009 | 100% | |||||||
MA | Boston | 52,337 | Harvard VanGuard Medical Associates | 5/31/2012 | 100% | |||||||
MO | Bridgeton(1) | 52,994 | BJC Health System | 3/31/2013 | 100% | |||||||
NC | Cary | 124,944 | Lucent Technologies, Inc. | 9/30/2011 | 100% | |||||||
NJ | Bridgewater | 115,558 | Biovail Pharmaceutical, Inc. | 10/31/2014 | 100% | |||||||
NJ | Carteret | 149,100 | Pathmark Stores, Inc. | 12/31/2011 | 100% | |||||||
NJ | Elizabeth | 30,000 | Bank of America | 8/31/2013 | 100% | |||||||
NJ | Parsippany | 340,240 | Sanofi-aventis U.S., Inc. | 1/31/2010 | 100% | |||||||
(Aventis, Inc. & Aventis Pharma Holding GmbH) | ||||||||||||
NJ | Plainsboro | 4,060 | Bank of America | 8/31/2013 | 100% | |||||||
NJ | Rockaway | 95,500 | BASF Corp. | 9/30/2014 | 100% | |||||||
NV | Las Vegas | 282,000 | Nevada Power Company | 1/31/2014 | 100% | |||||||
NY | Rochester | 226,000 | Frontier Corporation | 12/31/2014 | 100% | |||||||
OH | Milford | 221,215 | Siemens Product Lifestyle | 4/30/2011 | 100% | |||||||
Management Software, Inc. | ||||||||||||
OH | Westerville | 97,000 | InVentiv Communications Inc. | 9/30/2015 | 100% | |||||||
TN | Johnson City | 63,800 | Sun Trust Bank | 11/30/2011 | 100% | |||||||
TN | Memphis | 521,286 | Federal Express Corporation | 6/19/2019 | 100% | |||||||
TN | Memphis(1) | 75,000 | The Kroger Co. | 7/1/2013 | 100% | |||||||
TX | Beaumont | 49,689 | Texas State Bank | 12/31/2012 | 100% | |||||||
TX | Beaumont(1) | 425,198 | Multi-tenant | Various | 58% | |||||||
TX | Bedford | 202,493 | Transamerica Life Insurance Co/Vacant | 4/30/2019 | 29% | |||||||
TX | Coppell | 101,844 | Brinks, Inc. | 4/30/2017 | 100% | |||||||
TX | Dallas | 173,855 | Multi-tenant | Various | 62% | |||||||
TX | Garland(7) | 278,759 | Raytheon Company | 5/31/2011 | 100% | |||||||
TX | Houston | 554,385 | Baker Hughes, Inc. | 9/27/2015 | 100% | |||||||
TX | Irving | 247,254 | TXU Energy Retail Company LLC | 3/31/2023 | 100% | |||||||
(Texas Compentitive Electric Holdings Company, LLC) | ||||||||||||
VA | Glenn Allen | 67,508 | Multi-Tenanted | Various | 94% | |||||||
VA | Glenn Allen | 77,045 | Capital One Services, Inc | 3/31/2010 | 100% | |||||||
VA | Glenn Allen | 79,675 | Capital One Services, Inc | 2/10/2010 | 100% | |||||||
VA | Herndon | 125,293 | Equant, Inc. (Equant N.V.) | 4/30/2015 | 100% | |||||||
WY | Evanston | 29,500 | Multi-tenanted | Various | 74% | |||||||
TOTAL OFFICE | 10,257,506 | |||||||||||
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Property Charts
Approximate | ||||||||||||||
Leaseable | Current | |||||||||||||
Building | Term Lease | Precent | ||||||||||||
State | City | Sq. Ft. | Principal Tenant(14) | Expiration* | Leased | |||||||||
RETAIL: | ||||||||||||||
AL | Florence(1) | 42,130 | The Kroger Co. | 7/1/2013 | 100% | |||||||||
AL | Montgomery(1) | 60,698 | Vacant | None | 0% | |||||||||
AZ | Bisbee(1) | 30,181 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
AZ | Tucson(1) | 37,268 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
CA | Mammoth Lakes(1) | 44,425 | Safeway Stores, Inc. | 5/31/2012 | 100% | |||||||||
CO | Aurora(1) | 24,000 | Safeway Stores, Inc. | 5/31/2012 | 100% | |||||||||
CO | Littleton | 29,360 | Vacant | None | 0% | |||||||||
FL | Port Richey(1) | 53,820 | Kingswere Furniture | 11/30/2017 | 100% | |||||||||
FL | Tallahassee(1) | 102,381 | Kohl’s Department Stores, Inc. | 1/31/2028 | 100% | |||||||||
GA | Atlanta(1) | 6,260 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Atlanta(1) | 3,900 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Chamblee(1) | 4,565 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Cumming(1) | 14,208 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Duluth(1) | 9,300 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Forest Park(1) | 14,859 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Jonesboro(1) | 4,894 | Bank of America | 12/31/2009 | 100% | |||||||||
GA | Stone Mountain(1) | 5,704 | Bank of America | 12/31/2009 | 100% | |||||||||
IL | Rock Falls | 27,650 | Rock Falls Country Market | 9/30/2011 | 100% | |||||||||
IN | Carmel(11) | 38,567 | Marsh Supermarkets, Inc. | 10/31/2013 | 100% | |||||||||
IN | Lawrence | 28,721 | Marsh Supermarkets, Inc. | 10/31/2013 | 100% | |||||||||
LA | Minden | 35,000 | Safeway Stores, Inc. | 11/30/2012 | 100% | |||||||||
MD | Columbia(8) | 57,209 | GFS Realty, Inc. | 12/31/2008 | 100% | |||||||||
MT | Billings(1) | 40,800 | Safeway Stores, Inc. | 5/31/2010 | 100% | |||||||||
NC | Charlotte | 33,640 | Food Lion, Inc. | 10/31/2013 | 100% | |||||||||
NC | Concord | 32,259 | Food Lion, Inc. | 10/31/2013 | 100% | |||||||||
NC | Jacksonville | 23,000 | Food Lion, Inc. | 2/28/2013 | 100% | |||||||||
NC | Jefferson(1) | 23,000 | Food Lion, Inc. | 2/28/2013 | 100% | |||||||||
NC | Lexington | 23,000 | Food Lion, Inc. | 2/28/2013 | 100% | |||||||||
NC | Thomasville | 21,000 | Food Lion, Inc. | 10/31/2008 | 100% | |||||||||
NJ | Garwood | 52,000 | Pathmark Stores, Inc. | 5/31/2011 | 100% | |||||||||
NY | Portchester(1) | 59,000 | Pathmark Stores, Inc. | 10/31/2013 | 100% | |||||||||
OH | Franklin | 29,119 | Marsh Supermarkets, Inc. | 10/31/2013 | 100% | |||||||||
OK | Lawton(1) | 30,757 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
OR | Grants Pass(1) | 33,770 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
PA | Doylestown(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Lansdale(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Lima(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) |
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Property Charts
Approximate | ||||||||||||||
Leaseable | Current | |||||||||||||
Building | Term Lease | Precent | ||||||||||||
State | City | Sq. Ft. | Principal Tenant(14) | Expiration* | Leased | |||||||||
RETAIL Continued: | ||||||||||||||
PA | Philadelphia(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Philadelphia | 50,000 | Pathmark Stores, Inc. | 11/30/2010 | 100% | |||||||||
PA | Richboro(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
PA | Wayne(13) | 3,800 | Meritor Savings Bank | 8/31/2018 | 100% | |||||||||
(Mellon Bank/Citizens Bank) | ||||||||||||||
SC | Moncks Corner(1) | 23,000 | Food Lion, Inc. | 2/28/2013 | 100% | |||||||||
SC | N.Myrtle Beach(1) | 43,021 | Food Lion, Inc. | 10/31/2008 | 100% | |||||||||
TN | Chattanooga(1) | 42,130 | The Kroger Co. | 7/1/2008 | 100% | |||||||||
TN | Paris(1) | 31,170 | The Kroger Co. | 7/1/2013 | 100% | |||||||||
TX | Carrolton | 61,000 | Ong’s Family Inc. | 1/31/2021 | 100% | |||||||||
TX | Dallas | 68,024 | Malone's Food Stores | 3/31/2017 | 100% | |||||||||
TX | Fort Worth(1) | 44,000 | Safeway Stores, Inc. | 5/31/2012 | 100% | |||||||||
TX | Garland(1) | 40,000 | Minyard Food Stores | 11/30/2012 | 100% | |||||||||
TX | Granbury(1) | 35,000 | Safeway Stores, Inc. | 11/30/2012 | 100% | |||||||||
TX | Grand Prairie(1) | 49,349 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
TX | Greenville(1) | 48,427 | Safeway Stores, Inc. | 5/31/2011 | 100% | |||||||||
TX | Hillsboro(1) | 35,000 | Safeway Stores, Inc. | 11/30/2012 | 100% | |||||||||
TX | Houston(1) | 52,200 | The Kroger Co. | 12/29/2011 | 100% | |||||||||
TX | Lubbock(1) | 53,820 | Vacant | None | 0% | |||||||||
UT | Sandy(1) | 41,612 | Vacant | None | 0% | |||||||||
VA | Staunton | 23,000 | Food Lion, Inc. | 2/28/2013 | 100% | |||||||||
WA | Edmonds(1) | 35,459 | PCC Natural Markets | 8/31/2028 | 100% | |||||||||
WA | Graham(1) | 44,718 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
WA | Milton(1) | 44,718 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
WA | Port Orchard(1) | 27,968 | Save -A -Lot, Ltd. | 1/31/2015 | 57% | |||||||||
WA | Redmond(1) | 44,718 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
WA | Spokane(1) | 38,905 | Safeway Stores, Inc. | 3/31/2009 | 100% | |||||||||
WY | Cheyenne | 31,420 | Vacant | None | 0% | |||||||||
TOTAL RETAIL | 2,134,504 | |||||||||||||
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Property Charts
Approximate | ||||||||||||||
Leaseable | Current | |||||||||||||
Building | Term Lease | Prsent | ||||||||||||
State | City | Sq. Ft. | Principal Tenant(14) | Expiration* | Leased | |||||||||
INDUSTRIAL: | ||||||||||||||
CA | Long Beach(1)(2) | 200,541 | Raytheon Company | 12/31/2008 | 100% | |||||||||
CA | Palo Alto(1) | 202,000 | Xerox Corporation | 12/13/2013 | 100% | |||||||||
FL | Orlando | 205,016 | Walgreen Company | 3/31/2011 | 100% | |||||||||
GA | McDonough | 296,972 | Atlas Cold Storage America, LLC | 10/31/2017 | 100% | |||||||||
IL | Rockford | 150,000 | Jacobson Warehouse Co., Inc. | 12/31/2015 | 100% | |||||||||
IL | Rockford | 90,000 | Jacobson Warehouse Co., Inc. | 12/31/2014 | 100% | |||||||||
KY | Owensboro(1)(5) | 443,380 | Unilever Supply Chain, Inc. | 12/19/2020 | 100% | |||||||||
(Unilever United States, Inc.) | ||||||||||||||
LA | Shreveport | 646,000 | Libbey Glass Inc. | 10/31/2026 | 100% | |||||||||
ME | North Berwick | 820,868 | United Technologies Corp. | 12/31/2010 | 100% | |||||||||
MI | Plymouth | 290,133 | Tower Automotive Products Co. | 10/31/2012 | 100% | |||||||||
MI | Temperance | 752,000 | CEVA Logistics U.S., Inc. | 8/4/2012 | 100% | |||||||||
(TNT Holdings B.V.) | ||||||||||||||
NC | Statesville | 639,600 | La-Z-Boy Inc. | 4/30/2010 | 100% | |||||||||
NC | Lumberton | 423,280 | Quickie Manfacturing Corp. | 11/30/2021 | 100% | |||||||||
NJ | Swedesboro | 262,644 | Linens-n-Things, Inc. | 12/31/2008 | 100% | |||||||||
NY | Saugerties(6) | 52,000 | Rotron Inc (EG&G) | 12/31/2009 | 100% | |||||||||
OH | Columbus | 744,800 | ODW Logistics, Inc. | 6/30/2018 | 100% | |||||||||
OH | Cincinnati | 247,000 | The Hillman Group, Inc. | 8/31/2016 | 100% | |||||||||
OH | Glenwillow | 458,000 | Royal Appliance Manufacturing Co. | 7/31/2015 | 100% | |||||||||
SC | Duncan | 218,382 | Plastic Omnium Exterior, LLC | 5/30/2017 | 100% | |||||||||
SC | Laurens | 1,164,000 | CEVA Logistics U.S., Inc. | 8/4/2012 | 100% | |||||||||
(TNT Holdings B.V.) | ||||||||||||||
TN | Franklin(1) | 289,330 | Essex Group, Inc. | 12/31/2013 | 100% | |||||||||
(United Technologies Corp.) | ||||||||||||||
TN | Memphis(1) | 780,000 | Sears, Roebuck & Company | 2/28/2017 | 100% | |||||||||
VA | Winchester | 344,700 | Kraft Foods North America, Inc. | 12/31/2012 | 100% | |||||||||
TOTAL INDUSTRIAL | 9,720,646 | |||||||||||||
OTHER: | ||||||||||||||
AZ | Sun City | 10,000 | Cafeteria Operators, LP | 4/30/2012 | 100% | |||||||||
(Furr Restaurant Group, Inc.) | ||||||||||||||
NM | Carlsbad | 10,000 | Cafeteria Operators, LP | 4/30/2012 | 100% | |||||||||
(Furr Restaurant Group, Inc.) | ||||||||||||||
TX | Corpus Christi | 10,000 | Cafeteria Operators, LP | 4/30/2012 | 100% | |||||||||
(Furr Restaurant Group, Inc.) | ||||||||||||||
TX | El Paso | 10,000 | Cafeteria Operators, LP | 4/30/2012 | 100% | |||||||||
(Furr Restaurant Group, Inc.) | ||||||||||||||
TX | McAllen | 10,000 | Cafeteria Operators, LP | 4/30/2012 | 100% | |||||||||
(Furr Restaurant Group, Inc.) | ||||||||||||||
TX | Victoria | 10,000 | Cafeteria Operators, LP | 4/30/2012 | 100% | |||||||||
(Furr Restaurant Group, Inc.) | ||||||||||||||
TOTAL OTHER | 60,000 | |||||||||||||
GRAND TOTAL | 22,172,656 | |||||||||||||
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* | Represents the later of the current lease term or any exercised renewal term options. | |
(1) | Land held in land estate or pursuant to ground lease. | |
(2) | 55.0% interest owned by us. | |
(3) | 53.0% interest owned by us. | |
(4) | 64.4% interest owned by us. | |
(5) | 71.1% interest owned by us. | |
(6) | 57.8% interest owned by us. | |
(7) | 60.4% interest owned by us. | |
(8) | 56.3% interest owned by us. | |
(9) | Variable interest entity. | |
(10) | NK Leasehold is an affiliated party. | |
(11) | Property was sold on January 16, 2008. | |
(12) | Property was sold on March 13, 2008. | |
(13) | Tenant has exercised the purchase option within the lease to purchase the property for fair market value. However we can make no assurance that fair market value will be agreed upon and that the sale will be consummated. | |
(14) | The listed company is either the tenant, the obligor or guarantor with respect to the lease or the successor-in-interest to the initial tenant. |
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Year Ended December 31, 2006 (1) | ||||
1/06 | $ | 0.34 | ||
4/06 | $ | 0.50 | ||
7/06 | $ | 0.50 | ||
10/06 | $ | 0.50 |
Year Ended December 31, 2007 | ||||
1/07 | $ | 0.5625 | ||
4/07 | $ | 0.375 | ||
7/07 | $ | 0.375 | ||
10/07 | $ | 0.375 |
(1) | Per unit amounts give effect to the December 31, 2006 reverse split. |
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Year Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
(In thousands, except per unit data) | ||||||||||||||||||||
Operating Data | ||||||||||||||||||||
Total gross revenues | $ | 207,804 | $ | 160,306 | $ | 144,879 | $ | 147,816 | $ | 161,492 | ||||||||||
Income from continuing operations | 85,232 | 32,735 | 24,437 | 44,641 | 51,021 | |||||||||||||||
Net income | 151,450 | 129,342 | 49,295 | 137,808 | 145,164 | |||||||||||||||
Net income per unit(1)(2) | 2.71 | 2.51 | 1.23 | 3.60 | 3.78 | |||||||||||||||
Cash distribution declared per unit (1)(2) | 3.60 | 2.06 | 1.33 | 1.20 | 0.91 | |||||||||||||||
Weighted average units outstanding(1)(2) | 55,923 | 51,519 | 40,081 | 38,311 | 38,381 | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Real estate investments, at cost | 1,827,078 | 1,451,950 | 1,457,603 | 1,578,182 | 1,655,430 | |||||||||||||||
Real estate investments, net of accumulated depreciation | 1,407,419 | 976,724 | 913,518 | 1,032,797 | 1,129,237 | |||||||||||||||
Total assets | 2,342,944 | 1,396,272 | 1,306,953 | 1,237,129 | 1,384,094 | |||||||||||||||
Total debt | 1,446,622 | 838,734 | 770,786 | 907,339 | 1,104,231 | |||||||||||||||
Partners’ equity | 564,401 | 491,474 | 461,184 | 203,785 | 98,864 |
(1) | Adjusted to reflect the 7.5801 to 1 unit split of the outstanding units on November 7, 2005. | |
(2) | Adjusted to reflect the .80 to 1 unit split of outstanding units on December 31, 2006. |
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• | We purchased five properties for an aggregate gross purchase price of $90.7 million from unrelated parties. | ||
• | We purchased 26 properties from Lexington and/or Lexington’s co-investment partners in exchange for cash of $124.4 million; and the assumption of $477.0 million non-recourse mortgage debt and Lexington received 16,892,974 units of limited partnership interest with a value of $252.9 million. | ||
• | We sold 34 properties and an interest in a limited partnership for a gross sales price of approximately $177.0 million, and contributed 12 properties to NLS with a value of $102.7 million. | ||
• | We obtained first mortgage financing on six properties with an aggregate original principal amount of approximately $229.6 million, three of which are cross-collateralized. | ||
• | We increased our investment in Concord, by making an additional capital contribution of approximately $66.1 million, net during 2007. | ||
• | We issued $450.0 million in 5.45% Guaranteed Exchangeable Notes due in 2027. | ||
• | We fully repaid our original KeyBank secured loan in March and obtained a new $225.0 million secured term loan with KeyBank in June. |
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C-29
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Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | 2-3 Years | 4-5 Years | After 5 Years | |||||||||||||||
Mortgage Loan Payable | $ | 873,555 | $ | 40,638 | $ | 129,547 | $ | 148,802 | $ | 554,568 | ||||||||||
Note Payable (1) | 213,635 | — | 213,635 | — | — | |||||||||||||||
Exhangeable Notes Payable (2) | 450,000 | — | — | 450,000 | — | |||||||||||||||
Contract Right Mortgage Loan (3) | 13,444 | — | 720 | 1,133 | 11,591 | |||||||||||||||
Ground Lease Obligation | 12,083 | 2,148 | 4,283 | 3,224 | 2,428 | |||||||||||||||
Tenant Incentives (4) | 18,445 | 8,445 | 10,000 | — | — | |||||||||||||||
Commitments(5) | — | — | — | — | — | |||||||||||||||
$ | 1,581,162 | $ | 51,231 | $ | 358,185 | $ | 603,159 | $ | 568,587 | |||||||||||
(1) | Interest only payments for our secured term loan. Principal payments required from the proceeds of certain property sales or refinancing if proceeds are not reinvested in net leased properties. | |
(2) | Guaranteed Exchangeable Notes are due in 2027, however the notes can be put to us commencing in 2012. | |
(3) | No payments until 2009. | |
(4) | Relating to lease incentives owed on our El Segundo, California and Irving, Texas properties. | |
(5) | We have committed to invest $162.5 million in Concord. As of December 31, 2007, we have invested $157.4 million. |
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C-31
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C-32
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C-33
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C-34
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Pre-Consolidation | Consolidated | |||||||
Assets: | ||||||||
Cash | $ | — | $ | 177 | ||||
Land | — | 1,028 | ||||||
Building, net | ��� | 18,663 | ||||||
Equity investment in limited partnership | 6,538 | — | ||||||
Deferred costs, net | — | 334 | ||||||
$ | 6,538 | $ | 20,202 | |||||
Liabilities: | ||||||||
Mortgage loan | $ | — | $ | 13,664 | ||||
$ | — | $ | 13,664 | |||||
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C-36
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C-37
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C-38
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CDO Loan Assets and Loan Securities – December 31, 2007 | CDO Notes – December 31, 2007 | |||||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||||
Par Value of | Average | Averaged | Outstanding | Average | ||||||||||||||||||||||||
Date | CDO | Interest | Life | CDO | Interest | Stated | Retained | |||||||||||||||||||||
Closed | Collateral (3) | Rate | (Years) | Notes (1) | Rate | Maturity | Interest (2) | |||||||||||||||||||||
12/21/2006 | $ | 464,601 | 6.70 | % | 4.29 | $ | 376,650 | 5.37 | % | 12/2016 | $ | 88,350 |
(1) | Includes only notes held by third parties. | |
(2) | Concord’s potential economic loss is limited to the retained interest of its investment in CDO-1, of which the Partnership would bear 50% of such loss. | |
(3) | Consists of loan assets with a par value of $338,681 and loan securities with a par value of $125,920. |
Industry | % of Face Amount | |||
Office | 44.22 | % | ||
Hospitality | 30.54 | % | ||
Multi-family | 8.62 | % | ||
Industrial | 7.09 | % | ||
Mixed Use | 5.10 | % | ||
Retail | 4.43 | % | ||
100 | % | |||
Allocation by | Fixed Rate: | Floating Rate: | ||||||||||||||||||
Carrying | Investment | Average | Average Spread | |||||||||||||||||
Value(1) | Par Value | Type | Yield | over LIBOR(2) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Whole loans, floating rate | $ | 20,000 | $ | 20,000 | 4.31 | — | 1.95 bps | |||||||||||||
Whole loans, fixed rate | 20,900 | 20,900 | 4.50 | 6.56 | % | — | ||||||||||||||
Subordinate interests in whole loans, floating rate | 108,766 | 108,864 | 23.43 | — | 244 bps | |||||||||||||||
Subordinate interests in whole loans, fixed rate | 24,567 | 27,619 | 5.95 | 7.46 | % | — | ||||||||||||||
Mezzanine loans, floating rate | 81,419 | 81,410 | 17.52 | — | 270 bps | |||||||||||||||
Mezzanine loans, fixed rate | 77,669 | 79,888 | 17.19 | 5.92 | % | — | ||||||||||||||
Loan Securities, floating rate | 100,955 | 103,428 | 22.26 | — | 189 bps | |||||||||||||||
Loan Securities, floating rate | 18,448 | 22,492 | 4.84 | 5.97 | % | — | ||||||||||||||
Total/Average | $ | 452,724 | $ | 464,601 | 100.00 | % | 6.30 | 230 bps | ||||||||||||
(1) | Net of scheduled amortization payments and prepayments, unamortized fees and discounts. | |
(2) | Spreads over an index other than LIBOR have been adjusted to a LIBOR based equivalent. |
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Number of Loan | ||||||||||||
Year of Maturity | Assets Maturating | Carrying Value | % of Total | |||||||||
(In thousands) | ||||||||||||
2008 | 7 | $ | 140,183 | 42.06 | % | |||||||
2009 | 2 | 34,584 | 10.38 | % | ||||||||
2010 | 4 | 46,465 | 13.94 | % | ||||||||
2011 | 1 | 20,900 | 6.27 | % | ||||||||
2012 | 1 | 5,017 | 1.50 | % | ||||||||
Thereafter | 7 | 86,172 | 25.85 | % | ||||||||
Total | 22 | $ | 333,321 | 100 | % | |||||||
Weighted average maturity is 3.45 years (1) |
(1) | The calculation of weighted average maturity is based upon the remaining initial term and does not take into account any maturity extension periods or the ability to prepay the investment after a negotiated lock-out period, which may be available to the borrower. |
Gross Unrealized | Impairment | Carrying | ||||||||||||||
Description | Par Value | Loss | Loss | Value | ||||||||||||
Floating rate | $ | 22,492 | $ | (321 | ) | $ | (1,601 | ) | $ | 18,448 | ||||||
Fixed rate | 103,428 | (2,355 | ) | — | 100,955 | |||||||||||
Total | $ | 125,920 | $ | (2,676 | ) | $ | (1,601 | ) | $ | 119,403 | ||||||
Rating | Par Value | Percentage | ||||||
(In thousands) | ||||||||
BBB+ | $ | 9,000 | 7.15 | % | ||||
BBB | 2,151 | 1.71 | % | |||||
BBB- | 44,384 | 35.25 | % | |||||
BB+ | 33,392 | 26.52 | % | |||||
BB | 18,500 | 14.69 | % | |||||
B+ | 7,000 | 5.56 | % | |||||
Not Rated | 11,493 | 9.12 | % | |||||
Total | $ | 125,920 | 100 | % | ||||
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Fixed Rate: | Floating Rate: | |||||||||||||||||||
Allocation by | Average | Average Spread | ||||||||||||||||||
Carrying Value(1) | Par Value | Investment Type | Yield | over LIBOR(2) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Whole loans, floating rate | $ | 136,260 | $ | 136,260 | 19 | % | — | 218 bps | ||||||||||||
Whole loans, fixed rate | 6,300 | 6,300 | 1 | % | 6.40 | % | — | |||||||||||||
Subordinate interests in whole loans, floating rate | 163,077 | 163,908 | 23 | % | — | 223 bps | ||||||||||||||
Subordinate interests in whole loans, fixed rate | 14,196 | 15,750 | 2 | % | 8.63 | % | — | |||||||||||||
Mezzanine loans, floating rate | 230,852 | 236,436 | 33 | % | — | 222 bps | ||||||||||||||
Mezzanine loans, fixed rate | 68,028 | 71,718 | 10 | % | 7.45 | % | — | |||||||||||||
Loan securities, floating rate | 43,260 | 56,400 | 8 | % | — | 143 bps | ||||||||||||||
Loan securities, fixed rate | 25,411 | 27,084 | 4 | % | 6.68 | % | — | |||||||||||||
Total/Average | $ | 687,384 | $ | 713,856 | 100 | % | 7.38 | % | 214 bps | |||||||||||
(1) | Net of scheduled amortization payments and prepayments, unamortized fees and discounts. | |
(2) | Spreads over an index other than LIBOR have been adjusted to a LIBOR based equivalent. |
Number of Loan | ||||||||||||
Year of Maturity | Assets Maturting | Carrying Value | % of Total | |||||||||
(In thousands) | ||||||||||||
2008 | 9 | $ | 185,500 | 30.0 | % | |||||||
2009 | 9 | 134,052 | 21.7 | % | ||||||||
2010 | 3 | 81,903 | 13.2 | % | ||||||||
2011 | 1 | 6,300 | 1.0 | % | ||||||||
2012 | 3 | 72,968 | 11.8 | % | ||||||||
Thereafter | 8 | 137,990 | 22.3 | % | ||||||||
Total | 33 | $ | 618,713 | 100 | % | |||||||
Weighted average maturity is 2.72 years (1) |
(1) | The calculation of weighted average maturity is based upon the remaining initial term and does not take into account any maturity extension periods or the ability to prepay the investment after a negotiated lock-out period, which may be available to the borrower. |
Gross Unrealized | Impairment | Carrying | ||||||||||||||
Description | Par Value | Loss | Loss | Value | ||||||||||||
Floating rate | $ | 56,400 | $ | (3,487 | ) | $ | (9,427 | ) | $ | 43,260 | ||||||
Fixed rate | 27,084 | (1,673 | ) | — | 25,411 | |||||||||||
Total | $ | 83,484 | $ | (5,160 | ) | $ | (9,427 | ) | $ | 68,671 | ||||||
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December 31, 2007:
Rating | Par Value | Percentage | ||||||
AA- | $ | 1,381 | 1.65 | % | ||||
A- | 1,966 | 2.36 | % | |||||
BBB+ | 25,094 | 30.06 | % | |||||
BBB | 15,833 | 18.97 | % | |||||
BBB- | 30,392 | 36.40 | % | |||||
BB+ | 5,000 | 5.99 | % | |||||
Not Rated | 3,818 | 4.57 | % | |||||
Total | $ | 83,484 | 100 | % | ||||
Industry | % of Par Value | |||
Office | 46.4 | % | ||
Hospitality | 41.7 | % | ||
Multi-family | 6.4 | % | ||
Mixed Use | 5.3 | % | ||
Industrial | 0.2 | % | ||
100 | % | |||
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Maximum | Carrying Value | |||||||||||||||||||
Outstanding | Outstanding | Interest Rate – | Maturity | of Assets | ||||||||||||||||
Counterparty | Balance | Balance | LIBOR Plus (5) | Date | Securing Facility | |||||||||||||||
Greenwich(1) | $ | 39,079 | $ | 39,079 | 100 bps | 12/08 | $ | 55,827 | ||||||||||||
Greenwich(1) | 59,613 | 59,613 | 100 bps | 12/12 | 70,146 | |||||||||||||||
Column(1) | 16,414 | 16,414 | 100 bps | 3/09 | (3) | 25,270 | ||||||||||||||
Column(2) | 350,000 | 308,508 | 95-135 bps(4) | 3/09 | (6) | 412,561 | ||||||||||||||
Bear Stearns(2) | 150,000 | 48,710 | 85-115 bps(4) | 11/08 | 82,258 |
(1) | Repurchase facilities cover specific loan assets and may not be used for any other loan assets. | |
(2) | Repurchase facilities may be used for multiple loan assets and loan securities subject to the repurchase counterparty’s consent. Repurchase counterparties have advised that no additional advance will be made except, if at all, in connection with loans assets or debt securities acquired for the repurchase counterparty. | |
(3) | May be extended for up to three one-year extensions. | |
(4) | Interest rate is based on type of loan asset or loan security for which financing is provided. Weighted average at December 31, 2007 on the Column repurchase facility was 5.8% and on the Bear Stearns repurchase facility was 5.5% | |
(5) | Concord has entered into interest rate swaps with a total national amount of $203.3 million as of December 31, 2007 to manage exposure to interest rate movements affecting interest payments on certain variable-rate obligations. | |
(6) | Maturity date is March 30, 2011 under certain circumstances. |
(3)% | (2)% | (1)% | 1% | 2% | 3% | |||||||||||||||||||
Change in consolidated interest expense | $ | (6,409 | ) | $ | (4,273 | ) | $ | (2,136 | ) | $ | 2,136 | $ | 2,991 | $ | 2,991 | |||||||||
Pro-rata share of change in interest expense of debt on non-consolidated entities | (9,686 | ) | (6,457 | ) | (3,229 | ) | 3,229 | 6,457 | 9,686 | |||||||||||||||
Proforma (increase) decrease in net income | $ | (16,095 | ) | $ | (10,730 | ) | $ | (5,365 | ) | $ | 5,365 | $ | 9,448 | $ | 12,677 | |||||||||
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C-44
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Reports of Independent Registered Public Accounting Firms on pages 50-51 of Item 8. | ||
Consolidated Balance Sheets — December 31, 2007 and 2006 on page 52 of Item 8. | ||
Consolidated Statements of Operations and Comprehensive Income — For the Years Ended December 31, 2007, 2006 and 2005 on page 53 of Item 8. | ||
Consolidated Statements of Changes in Partners’ Equity — For the Years Ended December 31, 2007, 2006 and 2005 on page 54 of Item 8. | ||
Consolidated Statements of Cash Flows — For the Years Ended December 31, 2007, 2006 and 2005 on pages 55 of Item 8. | ||
Notes to Consolidated Financial Statements on pages 56 through 78 of Item 8. |
Schedule III — Real Estate and Accumulated Depreciation. | ||
All Schedules, other than III, are omitted, as the information is not required or is otherwise furnished. |
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C-46
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The Lexington Master Limited Partnership | ||||||
By: | LEX-GP-1 Trust, its General Partner | |||||
By: | /s/ T. Wilson Eglin | |||||
T. Wilson Eglin | ||||||
Chief Executive Officer |
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Signature | Title | Date | ||||
By: | /s/ T. Wilson Eglin | Chief Executive Officer of the General Partner of the Registrant | March 17, 2008 | |||
By: | /s/ Patrick Carroll | Chief Financial Officer of the General Partner of the Registrant | March 17, 2008 |
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INDEX TO FINANCIAL STATEMENTS
Page | ||||
50-51 | ||||
52 | ||||
53 | ||||
54 | ||||
55 | ||||
56-78 | ||||
Financial Statement Schedule | 79-84 |
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The Lexington Master Limited Partnership:
March 17, 2008
C-50
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March 29, 2007
(March 12, 2008 as to the discontinued operations discussed in Note 11)
C-51
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December 31, | ||||||||
2007 | 2006 | |||||||
ASSETS: | ||||||||
Real estate, at cost | ||||||||
Buildings and improvements | $ | 1,599,541 | $ | 1,342,998 | ||||
Land and land estates | 227,537 | 108,952 | ||||||
Total real estate investments | 1,827,078 | 1,451,950 | ||||||
Less accumulated depreciation and amortization | (419,659 | ) | (475,226 | ) | ||||
Real estate investments, net | 1,407,419 | 976,724 | ||||||
Properties held for sale — discontinued operations | 92,357 | 49,935 | ||||||
Cash and cash equivalents | 321,570 | 57,624 | ||||||
Investment in marketable equity securities, at fair value | 200 | 25,760 | ||||||
Rent receivable -current | 18,663 | 34,093 | ||||||
Rent receivable - -deferred | 29,150 | 28,019 | ||||||
Loans and interest receivable (including $26,612 and $0 from a related party) | 26,612 | 6,469 | ||||||
Investment in non-consolidated entities | 227,077 | 102,632 | ||||||
Deferred costs, net | 25,883 | 11,291 | ||||||
Lease intangibles, net | 155,375 | 33,782 | ||||||
Other assets (including $1,250 and $963 from related parties) | 38,638 | 69,943 | ||||||
$ | 2,342,944 | $ | 1,396,272 | |||||
LIABILITIES, MINORITY INTERESTS AND EQUITY | ||||||||
Liabilities: | ||||||||
Mortgage notes payable (including $21,378 and $20,886 to related parties) | $ | 788,428 | $ | 279,304 | ||||
Note payable | 213,635 | 547,199 | ||||||
Exchangeable notes payable, net of unamortized discount | 431,115 | — | ||||||
Embedded derivative financial instrument, at fair value | 1,800 | — | ||||||
Contract right mortage note payable | 13,444 | 12,231 | ||||||
Accrued interest payable (including $487 and $434 to related parties) | 15,512 | 4,093 | ||||||
Accounts payable and other liabilities (including $733 and $0 to a related party) | 16,208 | 5,644 | ||||||
Deferred revenue-below market leases | 19,924 | 12,192 | ||||||
Prepaid rent | 5,094 | 1,801 | ||||||
Distributions payable | 169,355 | 28,988 | ||||||
Liabilities of discontinued operations | 86,726 | 110 | ||||||
Total Liabilities | 1,761,241 | 891,562 | ||||||
Commitments and contingencies (note 3 and 10) | ||||||||
Minority interests | 17,302 | 13,236 | ||||||
Partners’ equity (68,426,429 and 51,533,504 limited partnership units outstanding at December 31, 2007 and December 31, 2006, respectively) | 564,401 | 491,474 | ||||||
$ | 2,342,944 | $ | 1,396,272 | |||||
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(In thousands, except unit and per unit data)
Years Ended | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Gross revenues: | ||||||||||||
Rental | $ | 189,539 | $ | 158,776 | $ | 144,565 | ||||||
Advisory and incentive fees | 8,530 | 248 | 287 | |||||||||
Tenant reimbursements | 9,735 | 1,282 | 27 | |||||||||
Total gross revenues | 207,804 | 160,306 | 144,879 | |||||||||
Expense applicable to revenues: | ||||||||||||
Depreciation and amortization | (67,401 | ) | (29,774 | ) | (22,728 | ) | ||||||
Property operating | (22,773 | ) | (10,244 | ) | (3,230 | ) | ||||||
General and administrative | (12,931 | ) | (40,445 | ) | (15,068 | ) | ||||||
Impariment charges | — | (1,440 | ) | (2,750 | ) | |||||||
Non-operating income | 14,458 | 13,826 | 4,081 | |||||||||
Interest and amortization | (69,037 | ) | (49,792 | ) | (50,245 | ) | ||||||
Debt satisfaction charge | (2,434 | ) | (382 | ) | (22,282 | ) | ||||||
Decline in fair value of embedded derivative liability | 21,225 | — | — | |||||||||
Income before state and local taxes, equity in earnings of non- consolidated entities,gain on sale of marketable equity securities, net, minority interests and discontinued operations | 68,911 | 42,055 | 32,657 | |||||||||
State and local taxes | (1,007 | ) | (2,235 | ) | (1,585 | ) | ||||||
Equity in earnings of non-consolidated entities | 27,895 | 3,451 | 3,128 | |||||||||
Gain on sale of marketable equity securities, net | 1,948 | 1,650 | 2 | |||||||||
Minority interests | (12,515 | ) | (12,186 | ) | (9,765 | ) | ||||||
Income from continuing operations | 85,232 | 32,735 | 24,437 | |||||||||
Discontinued operations: | ||||||||||||
Income from discontinued operations | 13,171 | 33,296 | 51,315 | |||||||||
Debt satisfaction charges | (63 | ) | (933 | ) | (8,178 | ) | ||||||
Gains from disposal of real estate | 61,131 | 68,582 | 17,707 | |||||||||
Impairment charges | — | — | (26,965 | ) | ||||||||
Minority interests | (8,021 | ) | (4,338 | ) | (9,021 | ) | ||||||
Total income from discontinued operations | 66,218 | 96,607 | 24,858 | |||||||||
Net income | $ | 151,450 | $ | 129,342 | $ | 49,295 | ||||||
Comprehensive income: | ||||||||||||
Net income | $ | 151,450 | $ | 129,342 | $ | 49,295 | ||||||
Change in unrealized net gain on investment in marketable equity securities | 801 | 1,058 | 164 | |||||||||
Change in unrealized (loss) gain on interest rate derivatives | (649 | ) | 1,004 | 1,000 | ||||||||
Change in unrealized loss from non-consolidated entities | (8,390 | ) | — | — | ||||||||
Less reclassification adjustment from gains included in net income | (3,312 | ) | (77 | ) | — | |||||||
Other comprehensive (loss) income | (11,550 | ) | 1,985 | 1,164 | ||||||||
Comprehensive income | $ | 139,900 | $ | 131,327 | $ | 50,459 | ||||||
Per limited partnership unit data: | ||||||||||||
Income from continuing operations | $ | 1.53 | $ | 0.64 | $ | 0.61 | ||||||
Income from discontinued operations | 1.18 | 1.87 | 0.62 | |||||||||
Net income per limited partnership unit | $ | 2.71 | $ | 2.51 | $ | 1.23 | ||||||
Distributions per limited partnership unit | $ | 3.60 | $ | 2.06 | $ | 1.33 | ||||||
Weighted average limited partnership units outstanding | 55,923,235 | 51,519,435 | 40,081,386 | |||||||||
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For the Years Ended December 31, 2007, 2006 and 2005
(In thousands, except unit data)
Accumulated | ||||||||||||||||
Limited | Other | Total | ||||||||||||||
Partnership | Partners’ | Comprehensive | Partners’ | |||||||||||||
Units | Capital | Income (Loss) | Equity | |||||||||||||
Balance at December 31, 2004 | 38,291,354 | $ | 203,785 | $ | — | $ | 203,785 | |||||||||
Net income | — | 49,295 | — | 49,295 | ||||||||||||
Issuance of units | 12,500,000 | 231,138 | — | 231,138 | ||||||||||||
Issuance of units — exclusivity rights | 1,000,000 | 20,000 | — | 20,000 | ||||||||||||
Minority interest charge | — | 12,917 | — | 12,917 | ||||||||||||
Distributions | — | (55,073 | ) | — | (55,073 | ) | ||||||||||
Limited partner buyouts | (291,354 | ) | (2,042 | ) | — | (2,042 | ) | |||||||||
Change in unrealized gain on investment in marketable equity securities | — | — | 164 | 164 | ||||||||||||
Change in unrealized gain on interest rate derivatives | — | — | 1,000 | 1,000 | ||||||||||||
Balance at December 31, 2005 | 51,500,000 | 460,020 | 1,164 | 461,184 | ||||||||||||
Net income | — | 129,342 | — | 129,342 | ||||||||||||
Issuance of units | 33,535 | 724 | — | 724 | ||||||||||||
Minority interest charge | — | 4,510 | — | 4,510 | ||||||||||||
Distributions | — | (106,270 | ) | — | (106,270 | ) | ||||||||||
Limited partner buyouts | (31 | ) | (1 | ) | — | (1 | ) | |||||||||
Change in unrealized gain on investment in marketable equity securities, net of reclassification of $85 included in net income | — | — | 972 | 972 | ||||||||||||
Change in unrealized gain on interest rate derivatives, net of reclassification of $(8) included in net income | — | — | 1,013 | 1,013 | ||||||||||||
Balance at December 31, 2006 | 51,533,504 | 488,325 | 3,149 | 491,474 | ||||||||||||
Net income | — | 151,450 | — | 151,450 | ||||||||||||
Issuance of units | 16,892,974 | 167,690 | — | 167,690 | ||||||||||||
Minority interest charge | — | (1,946 | ) | — | (1,946 | ) | ||||||||||
Distributions | — | (232,716 | ) | — | (232,716 | ) | ||||||||||
Limited partner buyouts | (49 | ) | (1 | ) | — | (1 | ) | |||||||||
Change in unrealized gain on investment in marketable equity securities net of reclassification adjustment of $1,948 included in net income | — | — | (1,147 | ) | (1,147 | ) | ||||||||||
Change in unrealized gain on interest rate derivatives, net of reclassification of $1,364 included in net income | — | — | (2,013 | ) | (2,013 | ) | ||||||||||
Change in net unrealized loss from non-consolidated entity | — | — | (8,390 | ) | (8,390 | ) | ||||||||||
Balance at December 31, 2007 | 68,426,429 | $ | 572,802 | $ | (8,401 | ) | $ | 564,401 | ||||||||
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For the Years Ended December 31, 2007, 2006 and 2005
(In thousands)
For the Years Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income | $ | 151,450 | $ | 129,342 | $ | 49,295 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Amortization of deferred costs, land estates, loan discounts and lease intangibles | 37,175 | 8,571 | 6,633 | |||||||||
Depreciation expense | 42,526 | 42,764 | 46,845 | |||||||||
Change in fair value of embedded derivative | (21,225 | ) | — | — | ||||||||
Gain from disposal of marketable equity securites | (1,948 | ) | (1,650 | ) | (2 | ) | ||||||
Gain from disposal of real estate | (61,131 | ) | (68,582 | ) | (17,707 | ) | ||||||
Debt satisfaction charges, net | 2,497 | 1,315 | 30,460 | |||||||||
Other non-cash items | (8,530 | ) | 9,500 | 10,500 | ||||||||
Impairment charges | — | 1,440 | 29,715 | |||||||||
Bad debt expenses | 205 | 853 | — | |||||||||
Minority interest expense | 20,536 | 16,523 | 18,786 | |||||||||
Straight-lining of rental income | 17,485 | 11,787 | 5,741 | |||||||||
Interest earned on restricted cash | (502 | ) | (1,926 | ) | (239 | ) | ||||||
Equity in earnings of non-consolidated entities | (27,895 | ) | (3,451 | ) | (3,128 | ) | ||||||
Distributions of accumulated earnings from non-consolidated entities | 5,670 | 412 | 399 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables and other assets | 2,045 | (12,045 | ) | (2,164 | ) | |||||||
Accounts payable and other liabilities | 17,980 | 555 | (32,551 | ) | ||||||||
Net cash provided by operating activities | 176,338 | 135,408 | 142,583 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Investments in real estate properties and intangible assets | (232,736 | ) | (196,574 | ) | (286 | ) | ||||||
Change in restricted cash | 39,078 | (12,482 | ) | (16,777 | ) | |||||||
Net deposits for future real estate acquisitions/sales | 252 | (5,290 | ) | (2,126 | ) | |||||||
Refund of deposits for real estate acquisitions | — | 7,416 | — | |||||||||
Investment in debt securities | — | (53,616 | ) | — | ||||||||
Loan origination costs | — | (21 | ) | — | ||||||||
Loans receivable to related party, net | (26,612 | ) | — | — | ||||||||
Collection of loan receivable | 6,428 | 72 | — | |||||||||
Construction in progress | (1,428 | ) | (901 | ) | — | |||||||
Distributions from non-consolidated entities in excess of accumulated earnings | 6,801 | 10,883 | — | |||||||||
Proceeds from disposal of marketable equity securities | 27,286 | 15,647 | 143 | |||||||||
Purchase of marketable equity securities | (723 | ) | (33,334 | ) | (5,171 | ) | ||||||
Issuance of loan receivable | — | — | (6,500 | ) | ||||||||
Net proceeds from disposal of real estate and investments in limited partnerships | 174,335 | 172,307 | 44,911 | |||||||||
Leasing costs incurred | (3,588 | ) | (3,635 | ) | (65 | ) | ||||||
Cash related to previously non-consolidated entities | 9,111 | 419 | 44,405 | |||||||||
Investments in partnerships and joint ventures | (97,987 | ) | (81,750 | ) | (80 | ) | ||||||
Net cash (used in) provided by investing activities | (99,783 | ) | (180,859 | ) | 58,454 | |||||||
Cash Flows from Financing Activities: | ||||||||||||
Principal payments of mortgage notes | (33,259 | ) | (95,244 | ) | (277,685 | ) | ||||||
Principal payments of note payable | (558,565 | ) | (46,263 | ) | (319,035 | ) | ||||||
Principal payments of contract right mortgage notes | — | — | (85,481 | ) | ||||||||
Proceeds from note payable | 225,000 | — | 477,759 | |||||||||
Proceeds from mortgage notes | 229,640 | 140,555 | — | |||||||||
Proceeds from exchangeable notes | 450,000 | — | — | |||||||||
Proceeds from line of credit | — | 32,025 | — | |||||||||
Mortgage prepayment penalities | — | (508 | ) | (23,548 | ) | |||||||
Proceeds from issuance of LP units | — | — | 231,139 | |||||||||
Distributions to partners | (92,348 | ) | (94,663 | ) | (37,692 | ) | ||||||
Limited partner buyouts | (1 | ) | (1 | ) | (2,042 | ) | ||||||
Distributions to minority interests | (19,255 | ) | (5,903 | ) | (5,622 | ) | ||||||
Contributions from minority interests | — | — | 1,666 | |||||||||
Financing costs | (13,821 | ) | (1,739 | ) | (6,997 | ) | ||||||
Net cash provided by (used in) financing activities | 187,391 | (71,741 | ) | (47,538 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 263,946 | (117,192 | ) | 153,499 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 57,624 | 174,816 | 21,317 | |||||||||
Cash and Cash Equivalents at End of Year | $ | 321,570 | $ | 57,624 | $ | 174,816 | ||||||
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• | a wholly-owned portfolio of core office assets; | ||
• | a wholly-owned portfolio of core warehouse/distribution assets; |
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
• | a continuing 50.0% interest in a co-investment program that invests in senior and subordinated debt interests secured by both net- leased and multi-tenanted real estate collateral; | ||
• | a minority interest in a co-investment program that invests in specialty single-tenant real estate assets; and | ||
• | equity securities in other net lease companies owned either individually or through an interest in one or more joint venture or co-investment programs. |
• | acquired substantially all of the outstanding interests in Lexington Acquiport Company, LLC, one of Lexington’s co-investment programs, which resulted in the Partnership becoming the sole owner of the co-investment program’s ten primarily single tenant net leased properties; |
• | acquired substantially all of the remaining interests in Lexington/Lion Venture L.P., one of Lexington’s co-investment programs, and thus acquired six primarily single tenant net leased properties owned by the co-investment program; |
• | formed a co-investment program with a subsidiary of Inland American Real Estate Trust, Inc. which acquired 12 assets owned by the Partnership and 18 assets previously owned by Lexington, and which in addition is under contract to acquire an additional two assets owned by the Partnership and 11 assets owned by Lexington and may invest in “core plus” net leased assets, such as manufacturing assets, call centers and other specialty assets; and |
• | sold non-core properties. |
C-57
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-58
Table of Contents
(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-59
Table of Contents
(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-60
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-61
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
Pre-Consolidation | Consolidated | |||||||
Assets: | ||||||||
Cash | $ | — | $ | 177 | ||||
Land | — | 1,028 | ||||||
Building, net | — | 18,663 | ||||||
Equity investment in limited partnership | 6,538 | — | ||||||
Deferred costs, net | — | 334 | ||||||
$ | 6,538 | $ | 20,202 | |||||
Liabilities: | ||||||||
Mortgage loan | $ | — | $ | 13,664 | ||||
$ | — | $ | 13,664 | |||||
C-62
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-63
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
Weighted | ||||||||
Average | ||||||||
Costs | Life (Years) | |||||||
Lease origination costs | $ | 87,494 | 5.5 | |||||
Customer relationships | $ | 65,340 | 4.7 | |||||
Above-market leases | $ | 8,754 | 3.1 |
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
2007 | 2006 | |||||||
Lease origination costs | $ | 121,697 | $ | 34,242 | ||||
Customer relationships | $ | 65,340 | $ | — | ||||
Above-market leases | $ | 10,432 | $ | 1,480 |
Year Ending | ||||
December 31, | ||||
2008 | $ | 223,261 | ||
2009 | 164,419 | |||
2010 | 136,740 | |||
2011 | 125,832 | |||
2012 | 109,670 | |||
Thereafter | 412,351 | |||
$ | 1,172,273 | |||
(1) | Net of future lease incentive payments owed to tenants |
C-65
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
Year Ending | ||||
December 31, | ||||
2008 | $ | 2,148 | ||
2009 | 2,151 | |||
2010 | 2,132 | |||
2011 | 1,776 | |||
2012 | 1,448 | |||
Thereafter | 2,428 | |||
$ | 12,083 | |||
Unrealized | ||||||||||||||||
Cost at | Gain (Loss) at | Balance at | ||||||||||||||
Date | December 31, | December 31, | December 31, | |||||||||||||
Name | Purchased | 2007 | 2007 | 2007 | ||||||||||||
American Financial Realty | Various | $ | 32 | $ | (2 | ) | $ | 30 | ||||||||
Capital Leasing Funding Inc. | Various | 95 | (11 | ) | 84 | |||||||||||
Gladstone Commerical Corp. | Various | 17 | 1 | 18 | ||||||||||||
National Retail Properties, Inc. | Various | 22 | 1 | 23 | ||||||||||||
Other real estate securities | Various | 45 | 0 | 45 | ||||||||||||
$ | 211 | $ | (11 | ) | $ | 200 | ||||||||||
Unrealized | ||||||||||||||||
Cost at | Gain at | Balance at | ||||||||||||||
Date | December 31, | December 31, | December 31, | |||||||||||||
Name | Purchased | 2006 | 2006 | 2006 | ||||||||||||
American Financial Realty | Various | $ | 4,141 | $ | 435 | $ | 4,576 | |||||||||
Capital Leasing Funding Inc. | Various | 974 | 186 | 1,160 | ||||||||||||
Spirit Finance Corporation | Various | 2,978 | 140 | 3,118 | ||||||||||||
WP Carey & Co., LLC | Various | 15,783 | 310 | 16,093 | ||||||||||||
Other real estate securities | Various | 748 | 65 | 813 | ||||||||||||
$ | 24,624 | $ | 1,136 | $ | 25,760 | |||||||||||
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-67
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
Contract | ||||||||||||||||||||
Mortgage | Right | |||||||||||||||||||
Notes | Exchangeable | Mortgage | ||||||||||||||||||
Year | Payable | Note Payable | Notes * | Note Payable | Total | |||||||||||||||
2008 | $ | 39,879 | $ | — | $ | — | $ | — | $ | 39,879 | ||||||||||
2009 | 48,991 | 213,635 | — | 229 | 262,855 | |||||||||||||||
2010 | 78,339 | — | — | 491 | 78,830 | |||||||||||||||
2011 | 62,326 | — | — | 540 | 62,866 | |||||||||||||||
2012 | 83,807 | — | 450,000 | 593 | 534,400 | |||||||||||||||
Thereafter | 475,086 | — | — | 11,591 | 486,677 | |||||||||||||||
$ | 788,428 | $ | 213,635 | $ | 450,000 | $ | 13,444 | $ | 1,465,507 | |||||||||||
* | exclusive of discount (also assumes notes are put to the Partnership in 2012) |
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
Cash and restricted cash | $ | 19,094 | $ | 148,261 | ||||
Investments (including debt securities at fair value of $188,073 and $87,054) | 1,140,108 | 450,870 | ||||||
Other assets | 12,770 | 10,744 | ||||||
Total assets | $ | 1,171,972 | $ | 609,875 | ||||
Accounts payable and other liabilities | $ | 12,076 | $ | 2,817 | ||||
Collateralized debt obligations | 376,650 | 376,650 | ||||||
Repurchase agreements | 472,324 | 43,893 | ||||||
Members’ equity | 310,922 | 186,515 | ||||||
Total liabilities and members’ equity | $ | 1,171,972 | $ | 609,875 | ||||
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
For the year ended | For the year ended | |||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
Interest and other income | $ | 68,453 | $ | 12,714 | ||||
Interest expense | (41,675 | ) | (6,156 | ) | ||||
Impairment charge | (11,028 | ) | — | |||||
Other expenses and minority interest | (5,554 | ) | (3,878 | ) | ||||
Net income | 10,196 | 2,680 | ||||||
Other comprehensive loss | (16,780 | ) | — | |||||
Comprehensive income (loss) | $ | (6,584 | ) | $ | 2,680 | |||
C-70
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
As of 12/31/07 | ||||
Real estate, including intangibles | $ | 405,834 | ||
Cash | 1,884 | |||
Mortgages payable | 171,556 |
For the period | ||||
12/20/07-12/31/07 | ||||
Gross rental revenues | $ | 951 | ||
Expenses | (352 | ) | ||
Net income | $ | 599 | ||
C-71
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
Years Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Rental revenue and interest income | $ | 22,851 | $ | 21,371 | $ | 27,289 | ||||||
Interest expense | (7,293 | ) | (7,529 | ) | (9,914 | ) | ||||||
Administrative expenses | (241 | ) | (49 | ) | (71 | ) | ||||||
Ground rent | (699 | ) | (699 | ) | (699 | ) | ||||||
Depreciation expense | (3,121 | ) | (2,908 | ) | (3,489 | ) | ||||||
Amortization expense | (108 | ) | (265 | ) | (525 | ) | ||||||
Net income | $ | 11,389 | $ | 9,921 | $ | 12,591 | ||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
Cash | $ | 2,070 | $ | 1,582 | ||||
Real estate, net | 67,415 | 63,364 | ||||||
Other assets | 2,127 | 2,257 | ||||||
Total assets | $ | 71,612 | $ | 67,203 | ||||
Accounts payable and other liabilities | $ | 5,441 | $ | 814 | ||||
Mortgages payable | 62,993 | 70,680 | ||||||
Partners’ equity (deficit) | 3,178 | (4,291 | ) | |||||
Total liabilities and partners’ equity (deficit) | $ | 71,612 | $ | 67,203 | ||||
C-72
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-73
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-74
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
C-75
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
2007 | 2006 | 2005 | ||||||||||
Total gross revenues | $ | 23,767 | $ | 61,694 | $ | 103,179 | ||||||
Net income, including gains on sales | $ | 66,218 | $ | 96,607 | $ | 24,858 |
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
Quarters Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
2007 | ||||||||||||||||
Revenues(1) | $ | 38,956 | $ | 55,464 | $ | 55,004 | $ | 58,380 | ||||||||
Net income | $ | 9,454 | $ | 69,590 | $ | 30,903 | $ | 41,503 | ||||||||
Net income per limited partnership unit | $ | 0.18 | $ | 1.29 | $ | 0.53 | $ | 0.70 | ||||||||
2006 | ||||||||||||||||
Revenues(1) | $ | 38,785 | $ | 41,118 | $ | 39,314 | $ | 41,088 | ||||||||
Net income (loss) | $ | 26,433 | $ | 27,410 | $ | 85,973 | $ | (10,474 | ) | |||||||
Net income (loss) per limited partnership unit | $ | 0.51 | $ | 0.53 | $ | 1.67 | $ | (0.20 | ) | |||||||
(1) | All periods have been adjusted to reflect the impact of properties sold during the years ended December 31, 2007 and 2006, and properties classified as held for sale, which are reflected in discontinued operations in the consolidated statements of operations and comprehensive income. |
• | Repurchased $100,000 of the guaranteed exchangeable notes for a net price of $87,781 including accrued interest. | ||
• | Sold two properties for an aggregate purchase price of $122,950. |
C-77
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(In thousands except per share/unit amounts)
December 31, 2007 and 2006
• | Advanced an additional $47,500 net to Lexington. |
• | Invested $5,087 in Concord. |
C-78
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SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Depreciation | Useful life computing | |||||||||||||||||||||||||||||||||||||||
Encumbrances | Land and | Building and | and | Date | Date | depreciation in latest | ||||||||||||||||||||||||||||||||||
Description | Location | Mortgage | Contract Right | Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statement (years) | ||||||||||||||||||||||||||||||
Office | Little Rock | AR | $ | *** | $ | — | $ | 244,068 | $ | 2,596,680 | $ | 2,840,748 | $ | 1,029,649 | 1/1/2002 | 1980 | 40 | |||||||||||||||||||||||
Office | Sierra Vista | AR | 20,013 | — | 20,013 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Office | Brea | CA | 78,091,564 | 37,270,228 | 45,690,905 | 82,961,133 | 3,073,846 | 12/31/2007 | 1983 | 40 | ||||||||||||||||||||||||||||||
Office | Irvine | CA | 4,078,944 | — | 2,101,464 | 19,245,946 | 21,347,410 | 1,387,253 | 1/1/2003 | 1983 | 40 | |||||||||||||||||||||||||||||
Office | Long Beach | CA | 15,923,492 | 9,464,009 | 19,614,925 | 71,446,499 | 91,061,424 | 46,703,851 | 1/1/2002 | 1981 | 27-40 | |||||||||||||||||||||||||||||
Office | Pleasanton | CA | 4,413,522 | — | 281,772 | 2,724,072 | 3,005,844 | 370,792 | 1/1/2006 | 1984 | 40 | |||||||||||||||||||||||||||||
Office | San Fransisco | CA | 22,455,249 | — | 4,205,352 | 24,516,348 | 28,721,700 | 2,049,090 | 1/1/2006 | 1959 | 40 | |||||||||||||||||||||||||||||
Office | Walnut Creek | CA | *** | — | 1,754,924 | 12,740,690 | 14,495,614 | 5,194,479 | 1/1/2002 | 1983 | 27-40 | |||||||||||||||||||||||||||||
Office | Colorado Springs | CO | *** | — | 384,876 | 13,537,369 | 13,922,245 | 5,602,223 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Office | Colorado Springs | CO | 11,380,933 | 2,747,736 | 12,554,351 | 15,302,087 | 651,945 | 6/1/2007 | 1980 | 40 | ||||||||||||||||||||||||||||||
Office | Clinton | CT | 721,080 | — | — | 1,600,313 | 1,600,313 | 284,034 | 1/1/2003 | 1971 | 20-40 | |||||||||||||||||||||||||||||
Office | Lake Mary | FL | 13,039,994 | 4,438,124 | 13,715,746 | 18,153,870 | 1,220,002 | 6/1/2007 | 1999 | 40 | ||||||||||||||||||||||||||||||
Office | Lake Mary | FL | 13,078,561 | 4,535,366 | 13,949,722 | 18,485,088 | 1,248,126 | 6/1/2007 | 1997 | 40 | ||||||||||||||||||||||||||||||
Office | Orlando | FL | *** | — | — | 15,198,785 | 15,198,785 | 6,683,281 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Office | Orlando | FL | *** | — | 2,015,271 | 39,647,028 | 41,662,299 | 17,270,249 | 1/1/2002 | 1984 | 38-40 | |||||||||||||||||||||||||||||
Office | Chicago | IL | 28,974,831 | 5,154,524 | 45,904,159 | 51,058,683 | 3,012,509 | 6/1/2007 | 1986 | 40 | ||||||||||||||||||||||||||||||
Office | Lisle | IL | 10,450,000 | — | 3,551,430 | 11,523,328 | 15,074,758 | 564,164 | 1/26/2006 | 1985 | 40 | |||||||||||||||||||||||||||||
Office | Columbus | IN | 42,800,000 | — | — | 53,535,768 | 53,535,768 | 16,199,510 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Office | Fishers | IN | 14,512,109 | — | 1,692,646 | 18,374,514 | 20,067,160 | 473,767 | 6/1/2007 | 1999 | 40 | |||||||||||||||||||||||||||||
Office | Boston | MA | *** | — | 3,813,604 | 14,727,647 | 18,541,251 | 291,485 | 6/1/2007 | 1910 | 40 | |||||||||||||||||||||||||||||
Office | Baltimore | MD | *** | — | — | 138,489,531 | 138,489,531 | 66,395,918 | 1/1/2002 | 1973 | 14-40 | |||||||||||||||||||||||||||||
Office | Bridgeton | MO | *** | — | — | 3,398,088 | 3,398,088 | 1,403,158 | 1/1/2002 | 1980 | 25-40 | |||||||||||||||||||||||||||||
Office | Cary | NC | 12,589,388 | 5,342,287 | 14,866,274 | 20,208,561 | 1,033,995 | 6/1/2007 | 1999 | 40 | ||||||||||||||||||||||||||||||
Office | Bridgewater | NJ | 14,805,000 | — | 6,273,042 | 14,876,796 | 21,149,838 | 1,224,198 | 1/18/2006 | 1986 | 5-40 | |||||||||||||||||||||||||||||
Office | Carteret | NJ | — | — | 482,890 | 10,450,069 | 10,932,959 | 4,414,969 | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Office | Elizabeth | NJ | *** | — | 256,053 | 4,761,579 | 5,017,632 | 2,000,133 | 1/1/2002 | 1984 | 38-40 | |||||||||||||||||||||||||||||
Office | Parisippany | NJ | 40,151,391 | 7,478,447 | 84,051,074 | 91,529,521 | 5,271,989 | 6/1/2007 | 2000 | 40 | ||||||||||||||||||||||||||||||
Office | Plainsboro | NJ | — | — | 48,855 | 866,678 | 915,533 | 353,570 | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Office | Rockaway | NJ | 14,900,000 | — | 7,195,672 | 12,116,387 | 19,312,059 | 492,227 | 5/5/2006 | 2002 | 40 | |||||||||||||||||||||||||||||
Office | Las Vegas | NV | 52,782,102 | — | 1,993,597 | 42,579,676 | 44,573,273 | 11,812,561 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Office | Rochester | NY | 18,800,000 | — | 560,179 | 20,649,681 | 21,209,860 | 881,913 | 4/26/2006 | 1988 | 40 | |||||||||||||||||||||||||||||
Office | Glenwillow | OH | 17,000,000 | 2,905,693 | 19,504,130 | 22,409,823 | 751,722 | 6/30/2006 | 1996 | 40 | ||||||||||||||||||||||||||||||
Office | Milford | OH | 16,220,484 | 3,124,476 | 15,396,059 | 18,520,535 | 1,636,646 | 6/1/2007 | 1991 | 40 | ||||||||||||||||||||||||||||||
Office | Westerville | OH | 2,084,872 | 9,264,775 | 11,349,647 | 210,192 | 5/15/2007 | 2000 | 40 | |||||||||||||||||||||||||||||||
Office | Johnson City | TN | *** | — | 550,046 | 4,569,795 | 5,119,841 | 1,334,779 | 1/1/2002 | 1983 | 38-40 |
C-79
Table of Contents
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Depreciation | Useful life computing | |||||||||||||||||||||||||||||||||||||||
Encumbrances | Land and | Building and | and | Date | Date | depreciation in latest | ||||||||||||||||||||||||||||||||||
Description | Location | Mortgage | Contract Right | Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statement (years) | ||||||||||||||||||||||||||||||
Office | Memphis | TN | $ | *** | $ | — | $ | 647,570 | $ | 6,005,775 | $ | 6,653,345 | $ | 3,069,501 | 1/1/2002 | 1982 | 27-40 | |||||||||||||||||||||||
Office | Memphis | TN | 76,800,163 | — | 356,650 | 63,296,739 | 63,653,389 | 20,824,493 | 1/1/2002 | 1985 | 38-40 | |||||||||||||||||||||||||||||
Office | Beaumont | TX | — | — | 366,551 | 9,484,884 | 9,851,435 | 4,060,083 | 1/1/2002 | 1978 | 38-40 | |||||||||||||||||||||||||||||
Office | Beaumont | TX | *** | — | — | 49,406,412 | 49,406,412 | 12,788,756 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Office | Bedford | TX | *** | — | 2,555,275 | 17,235,189 | 19,790,464 | 5,910,479 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Office | Coppell | TX | 14,400,000 | 2,470,000 | 12,793,125 | 15,263,125 | 252,938 | 5/27/2007 | 2002 | 40 | ||||||||||||||||||||||||||||||
Office | Dallas | TX | *** | — | 631,561 | 22,608,004 | 23,239,565 | 10,713,986 | 1/1/2002 | 1981 | 38-40 | |||||||||||||||||||||||||||||
office | Garland | TX | — | — | 248,242 | 11,406,998 | 11,655,240 | 3,528,321 | 1/1/2002 | 1980 | 29-40 | |||||||||||||||||||||||||||||
Office | Houston | TX | 60,193,221 | 16,612,553 | 52,682,153 | 69,294,706 | 4,938,946 | 12/31/2007 | 1976/1984 | 40 | ||||||||||||||||||||||||||||||
Office | Irving | TX | 26,898,645 | — | 3,058,334 | 17,623,108 | 20,681,442 | 910,651 | 6/1/2007 | 1999 | 40 | |||||||||||||||||||||||||||||
Office | Glen Allen | VA | 19,484,549 | 2,361,382 | 28,504,177 | 30,865,559 | 2,221,657 | 6/1/2007 | 1998 | 40 | ||||||||||||||||||||||||||||||
Office | Herndon | VA | 11,930,028 | 9,409,317 | 12,852,715 | 22,262,032 | 1,034,007 | 6/1/2007 | 1987 | 40 | ||||||||||||||||||||||||||||||
Office | Evanston | WY | *** | — | 294,197 | 1,864,206 | 2,158,403 | 1,390,666 | 1/1/2002 | 1975 | 20-40 | |||||||||||||||||||||||||||||
656,875,250 | 9,464,009 | 171,134,064 | 1,134,833,947 | 1,305,968,011 | 284,172,709 | |||||||||||||||||||||||||||||||||||
Retail | Florence | AL | *** | — | 343,662 | 3,187,227 | 3,530,889 | 1,628,888 | 1/1/2002 | 1983 | 27-40 | |||||||||||||||||||||||||||||
Retail | Montgomery | AL | — | — | — | 2,433,818 | 2,433,818 | �� | 805,792 | 1/1/2002 | 1980 | 40 | ||||||||||||||||||||||||||||
Retail | Bisbee | AZ | — | — | 333,266 | 2,127,159 | 2,460,425 | 1,180,851 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Mesa | AZ | 45,834 | — | 45,834 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Phoenix | AZ | 47,943 | — | 47,943 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Springdale | AZ | 3,670 | — | 3,670 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Tucson | AZ | — | — | 380,494 | 2,428,603 | 2,809,097 | 1,393,443 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Beaumont | CA | 3,830 | — | 3,830 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Loveland | CA | 18,581 | — | 18,581 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Mammoth Lake | CA | — | — | 700,534 | 4,857,292 | 5,557,826 | 2,820,461 | 1/1/2002 | 1982 | 27-40 | |||||||||||||||||||||||||||||
Retail | Pasadena | CA | 18,226 | — | 18,226 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Rialto | CA | 14,673 | — | 14,673 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | San Dimas | CA | 15,713 | — | 15,713 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Simi Valley | CA | 16,828 | — | 16,828 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Yucca Valley | CA | 17,462 | — | 17,462 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Aurora | CO | — | — | 400,072 | 2,768,776 | 3,168,848 | 1,644,298 | 1/1/2002 | 1981 | 27-40 | |||||||||||||||||||||||||||||
Retail | Aurora | CO | 19,324 | — | 19,324 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Colorado Springs | CO | 20,139 | — | 20,139 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Littleton | CO | — | — | 226,074 | 1,885,393 | 2,111,467 | 744,732 | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Retail | Pueblo | CO | 15,588 | — | 15,588 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Homestead | FL | 19,681 | — | 19,681 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Orlando | FL | 15,410 | — | 15,410 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Port Richey | FL | — | — | — | 1,570,170 | 1,570,170 | 620,218 | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Retail | Tallahassee | FL | — | — | — | 1,729,065 | 1,729,065 | 838,829 | 1/1/2002 | 1980 | 40 | |||||||||||||||||||||||||||||
Retail | Atlanta (Chamblee-Dunwoody) | GA | — | — | 120,697 | 813,389 | 934,086 | 425,746 | 1/1/2002 | 1972 | 25-35 | |||||||||||||||||||||||||||||
Retail | Atlanta (N Druid Hills) | GA | — | — | 153,014 | 1,031,179 | 1,184,193 | 539,742 | 1/1/2002 | 1972 | 25-35 | |||||||||||||||||||||||||||||
Retail | Atlanta (Ponce de Leon) | GA | — | — | 107,249 | 722,764 | 830,013 | 378,311 | 1/1/2002 | 1975 | 25-35 | |||||||||||||||||||||||||||||
Retail | Cumming | GA | — | — | 270,916 | 1,825,733 | 2,096,649 | 955,629 | 1/1/2002 | 1968 | 25-35 |
C-80
Table of Contents
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Depreciation | Useful life computing | |||||||||||||||||||||||||||||||||||||||
Encumbrances | Land and | Building and | and | Date | Date | depreciation in latest | ||||||||||||||||||||||||||||||||||
Description | Location | Mortgage | Contract Right | Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statement (years) | ||||||||||||||||||||||||||||||
Retail | Duluth | GA | $ | — | $ | — | $ | 182,098 | $ | 1,227,177 | $ | 1,409,275 | $ | 642,332 | 1/1/2002 | 1971 | 25-35 | |||||||||||||||||||||||
Retail | Forest Park | GA | — | — | 272,514 | 1,836,502 | 2,109,016 | 961,267 | 1/1/2002 | 1969 | 25-35 | |||||||||||||||||||||||||||||
Retail | Jonesboro | GA | — | — | 105,469 | 710,765 | 816,234 | 372,030 | 1/1/2002 | 1971 | 25-35 | |||||||||||||||||||||||||||||
Retail | Stone Mountain | GA | — | — | 129,849 | 875,068 | 1,004,917 | 458,030 | 1/1/2002 | 1973 | 25-35 | |||||||||||||||||||||||||||||
Retail | Rock Falls | IL | *** | — | 156,731 | 1,648,330 | 1,805,061 | 920,406 | 1/1/2002 | 1991 | 38-40 | |||||||||||||||||||||||||||||
Retail | Lawrence | IN | — | — | 53,885 | 2,877,258 | 2,931,143 | 1,431,916 | 1/1/2002 | 1983 | 20-40 | |||||||||||||||||||||||||||||
Retail | Minden | LA | — | — | 439,524 | 1,961,545 | 2,401,069 | 678,028 | 1/1/2002 | 1982 | 27-40 | |||||||||||||||||||||||||||||
Retail | Columbia | MD | 941,639 | — | 671,547 | 817,581 | 1,489,128 | 69,585 | 6/1/2006 | 1979 | 40 | |||||||||||||||||||||||||||||
Retail | Arnold | MO | 4,817 | — | 4,817 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Independence | MO | 15,561 | — | 15,561 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Lee’s Summit | MO | 3,886 | — | 3,886 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | St Louis | MO | 18,418 | — | 18,418 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Billings | MT | — | — | — | 2,805,618 | 2,805,618 | 1,255,418 | 1/1/2002 | 1981 | 38-40 | |||||||||||||||||||||||||||||
Retail | Charlotte | NC | *** | — | 36,078 | 898,638 | 934,716 | 304,706 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Retail | Concord | NC | *** | — | 56,439 | 1,777,516 | 1,833,955 | 600,931 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Retail | Jacksonville | NC | — | — | 64,434 | 729,741 | 794,175 | 237,579 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Retail | Jefferson | NC | — | — | — | 635,971 | 635,971 | 207,881 | 1/1/2002 | 1979 | 38-40 | |||||||||||||||||||||||||||||
Retail | Lexington | NC | — | — | 106,703 | 1,208,617 | 1,315,320 | 400,914 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Retail | Thomasville | NC | *** | — | 38,805 | 1,016,388 | 1,055,193 | 343,163 | 1/1/2002 | 1998 | 38-40 | |||||||||||||||||||||||||||||
Retail | Garwood | NJ | 95,121 | — | 607,569 | 3,802,120 | 4,409,689 | 1,347,829 | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Retail | Albuquerque | NM | 16,692 | — | 16,692 | — | 1/1/2002 | 27-40 | ||||||||||||||||||||||||||||||||
Retail | Albuquerque | NM | 15,482 | — | 15,482 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Las Vegas | NV | 19,977 | — | 19,977 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Portchester | NY | — | — | — | 7,308,836 | 7,308,836 | 3,097,528 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Retail | Cincinnati | OH | — | — | — | 1 | 1 | — | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Retail | Franklin | OH | — | — | 37,138 | 1,685,071 | 1,722,209 | 805,453 | 1/1/2002 | 1961 | 38-40 | |||||||||||||||||||||||||||||
Retail | Lawton | OK | — | — | 353,712 | 2,257,661 | 2,611,373 | 1,291,070 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Ponca City | OK | 47,435 | — | 47,435 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Stillwater | OK | 15,239 | — | 15,239 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Grants Pass | OR | — | — | 320,017 | 2,042,594 | 2,362,611 | 1,159,754 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Doylestown | PA | — | — | 120,348 | 819,192 | 939,540 | 276,397 | 1/1/2002 | 1976 | 20-40 | |||||||||||||||||||||||||||||
Retail | Lansdale | PA | — | — | 125,955 | 866,323 | 992,278 | 292,298 | 1/1/2002 | 1966 | 20-40 | |||||||||||||||||||||||||||||
Retail | Lima | PA | — | — | 135,052 | 942,899 | 1,077,951 | 318,135 | 1/1/2002 | 1983 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia | PA | — | — | 628,239 | 3,796,097 | 4,424,336 | 1,425,136 | 1/1/2002 | 1980 | 40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, 52nd | PA | — | — | 146,262 | 1,037,260 | 1,183,522 | 349,973 | 1/1/2002 | 1921 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, Broad | PA | — | — | 153,959 | 1,102,037 | 1,255,996 | 371,830 | 1/1/2002 | 1920 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, Bustle | PA | — | — | 120,356 | 819,192 | 939,548 | 276,397 | 1/1/2002 | 1970 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, Cottman | PA | — | — | 161,663 | 1,166,885 | 1,328,548 | 393,709 | 1/1/2002 | 1980 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, Frankford | PA | — | — | 131,212 | 907,541 | 1,038,753 | 306,205 | 1/1/2002 | 1960 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, Lehigh | PA | — | — | 121,054 | 825,061 | 946,115 | 278,378 | 1/1/2002 | 1922 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, N 5th | PA | — | — | 52,440 | 247,488 | 299,928 | 83,503 | 1/1/2002 | 1975 | 20-40 | |||||||||||||||||||||||||||||
Retail | Philadelphia, N Broad | PA | — | — | 114,757 | 772,059 | 886,816 | 260,494 | 1/1/2002 | 1920 | 20-40 | |||||||||||||||||||||||||||||
Retail | Richboro | PA | — | — | 113,355 | 760,250 | 873,605 | 256,512 | 1/1/2002 | 1976 | 20-40 | |||||||||||||||||||||||||||||
Retail | Wayne | PA | — | — | 155,018 | 1,113,823 | 1,268,841 | 375,805 | 1/1/2002 | 1983 | 20-40 |
C-81
Table of Contents
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Depreciation | Useful life computing | |||||||||||||||||||||||||||||||||||||||
Encumbrances | Land and | Building and | and | Date | Date | depreciation in latest | ||||||||||||||||||||||||||||||||||
Description | Location | Mortgage | Contract Right | Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statement (years) | ||||||||||||||||||||||||||||||
Retail | Moncks Corner | SC | $ | — | $ | — | $ | — | $ | 539,472 | $ | 539,472 | $ | 178,184 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||
Retail | N Myrtle Beach | SC | *** | — | — | 1,577,826 | 1,577,826 | 532,972 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Retail | Chattanooga | TN | *** | — | 369,150 | 3,423,619 | 3,792,769 | 1,749,780 | 1/1/2002 | 1982 | 27-40 | |||||||||||||||||||||||||||||
Retail | Paris | TN | *** | — | 244,304 | 2,265,742 | 2,510,046 | 1,158,007 | 1/1/2002 | 1982 | 27-40 | |||||||||||||||||||||||||||||
Retail | Austin | TX | 47,127 | — | 47,127 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Baytown | TX | 17,888 | — | 17,888 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Bear Creek | TX | 17,859 | — | 17,859 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Carrolton | TX | — | — | 582,247 | 2,881,723 | 3,463,970 | 1,044,615 | 1/1/2002 | 1984 | 25-40 | |||||||||||||||||||||||||||||
Retail | Dallas | TX | — | — | 856,397 | 3,639,198 | 4,495,595 | 1,576,755 | 1/1/2002 | 1960 | 38-40 | |||||||||||||||||||||||||||||
Retail | El Paso | TX | 14,599 | — | 14,599 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | El Paso | TX | 18,500 | — | 18,500 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Fort Worth | TX | — | — | 532,341 | 3,692,266 | 4,224,607 | 2,131,925 | 1/1/2002 | 1985 | 27-40 | |||||||||||||||||||||||||||||
Retail | Garland | TX | *** | — | 165,286 | 3,334,967 | 3,500,253 | 1,152,757 | 1/1/2002 | 1983 | 29-40 | |||||||||||||||||||||||||||||
Retail | Granbury | TX | — | — | 107,704 | 2,173,176 | 2,280,880 | 751,175 | 1/1/2002 | 1982 | 29-40 | |||||||||||||||||||||||||||||
Retail | Grand Prairie | TX | — | — | 462,315 | 2,950,860 | 3,413,175 | 1,738,337 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Greenville | TX | — | — | — | 1,431,281 | 1,431,281 | 1,088,427 | 1/1/2002 | 1985 | 40 | |||||||||||||||||||||||||||||
Retail | Hillsboro | TX | — | — | 90,988 | 1,835,822 | 1,926,810 | 634,568 | 1/1/2002 | 1982 | 29-40 | |||||||||||||||||||||||||||||
Retail | Houston | TX | — | — | 614,015 | 3,705,420 | 4,319,435 | 2,192,261 | 1/1/2002 | 1982 | 27-40 | |||||||||||||||||||||||||||||
Retail | Lubbock | TX | *** | — | — | 1,509,270 | 1,509,270 | 732,198 | 1/1/2002 | 1978 | 40 | |||||||||||||||||||||||||||||
Retail | Sandy | UT | *** | — | — | 1,585,726 | 1,585,726 | 528,838 | 1/1/2002 | 1981 | 38-40 | |||||||||||||||||||||||||||||
Retail | Herndon | VA | 17,741 | — | 17,741 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Staunton | VA | — | — | 127,681 | 1,445,996 | 1,573,677 | 460,309 | 1/1/2002 | 1971 | 38-40 | |||||||||||||||||||||||||||||
Retail | Edmonds | WA | — | — | — | 1,305,028 | 1,305,028 | 633,114 | 1/1/2002 | 1981 | 40 | |||||||||||||||||||||||||||||
Retail | Graham | WA | — | — | 437,273 | 2,790,997 | 3,228,270 | 1,595,877 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Milton | WA | — | — | 493,533 | 3,150,107 | 3,643,640 | 1,810,289 | 1/1/2002 | 1989 | 27-40 | |||||||||||||||||||||||||||||
Retail | Port Orchard | WA | — | — | — | 865,542 | 865,542 | 470,580 | 1/1/2002 | 1983 | 40 | |||||||||||||||||||||||||||||
Retail | Puyallup | WA | 15,117 | — | 15,117 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
Retail | Redmond | WA | — | — | 490,535 | 3,130,971 | 3,621,506 | 1,826,025 | 1/1/2002 | 1985 | 27-40 | |||||||||||||||||||||||||||||
Retail | Spokane | WA | — | — | 376,686 | 2,404,286 | 2,780,972 | 1,391,723 | 1/1/2002 | 1984 | 27-40 | |||||||||||||||||||||||||||||
Retail | Cheyenne | WY | *** | — | 71,549 | 984,564 | 1,056,113 | 286,401 | 1/1/2002 | 1981 | 38-40 | |||||||||||||||||||||||||||||
1,036,760 | — | 15,569,404 | 133,303,532 | 148,872,936 | 61,492,649 | |||||||||||||||||||||||||||||||||||
Industrial | Long Beach | CA | 5,902,311 | 3,979,635 | 8,248,116 | 30,043,403 | 38,291,519 | 19,639,067 | 1/1/2002 | 1981 | 27-40 | |||||||||||||||||||||||||||||
Industrial | Palo Alto | CA | *** | — | — | 26,958,221 | 26,958,221 | 11,317,852 | 1/1/2002 | 1974 | 40 | |||||||||||||||||||||||||||||
Industrial | Orlando | FL | *** | — | — | 9,128,285 | 9,128,285 | 4,326,032 | 1/1/2002 | 1981 | 38-40 | |||||||||||||||||||||||||||||
Industrial | McDonough | GA | 23,000,000 | 4,298,753 | 25,278,000 | 29,576,753 | 689,595 | 9/21/2006 | 2000 | 40 | ||||||||||||||||||||||||||||||
Industrial | Rockford | IL | 2,622,000 | 332,104 | 2,780,183 | 3,112,287 | 124,529 | 3/7/2006 | 1998 | 40 | ||||||||||||||||||||||||||||||
Industrial | Rockford | IL | 4,278,000 | 541,854 | 4,536,087 | 5,077,941 | 203,180 | 3/7/2006 | 1992 | 40 | ||||||||||||||||||||||||||||||
Industrial | Owensboro | KY | 4,665,987 | — | — | 16,265,158 | 16,265,158 | 3,068,636 | 1/1/2003 | 1975 | 20-40 | |||||||||||||||||||||||||||||
Industrial | Shreveport | LA | 19,000,000 | — | 860,000 | 21,840,000 | 22,700,000 | 432,250 | 3/28/2007 | 2006 | 40 | |||||||||||||||||||||||||||||
Industrial | North Berwick | ME | *** | — | 274,873 | 22,304,938 | 22,579,811 | 11,817,289 | 1/1/2002 | 1965 | 38-40 | |||||||||||||||||||||||||||||
Industrial | Plymouth | MI | 11,847,293 | — | 2,296,068 | 13,397,997 | 15,694,065 | 1,202,294 | 6/1/2007 | 1996 | 40 |
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SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Depreciation | Useful life computing | |||||||||||||||||||||||||||||||||||||||
Encumbrances | Land and | Building and | and | Date | Date | depreciation in latest | ||||||||||||||||||||||||||||||||||
Description | Location | Mortgage | Contract Right | Land Estates | Improvements | Total | Amortization | Acquired | Constructed | income statement (years) | ||||||||||||||||||||||||||||||
Industrial | Temperance | MI | 10,908,875 | — | 3,040,182 | 14,738,201 | 17,778,383 | 828,432 | 6/1/2007 | 1980 | 40 | |||||||||||||||||||||||||||||
Industrial | Lumberton | NC | *** | 366,943 | 11,078,126 | 11,445,069 | 311,571 | 11/6/2006 | 1998 | 40 | ||||||||||||||||||||||||||||||
Industrial | Statesville | NC | 14,100,000 | 1,101,691 | 15,123,208 | 16,224,899 | 677,393 | 3/29/2006 | 1999 | 40 | ||||||||||||||||||||||||||||||
Industrial | Swedesboro | NJ | 7,318,056 | — | 1,824,940 | 10,776,232 | 12,601,172 | 415,664 | 6/1/2007 | 1998 | 40 | |||||||||||||||||||||||||||||
Industrial | Saugerties | NY | — | — | 32,120 | 676,932 | 709,052 | 132,385 | 1/1/2002 | 1979 | 15-40 | |||||||||||||||||||||||||||||
Industrial | Cincinnati | OH | *** | 897,406 | 7,736,769 | 8,634,175 | 201,479 | 12/31/2006 | 1991 | 40 | ||||||||||||||||||||||||||||||
Industrial | Columbus | OH | *** | 1,359,509 | 15,555,978 | 16,915,487 | 502,329 | 9/28/2006 | 1973 | 40 | ||||||||||||||||||||||||||||||
Industrial | Duncan | SC | — | — | 883,876 | 7,943,817 | 8,827,693 | 123,584 | 6/6/2007 | 2005 | 40 | |||||||||||||||||||||||||||||
Industrial | Laurens | SC | 16,267,236 | — | 5,591,518 | 20,436,871 | 26,028,389 | 355,915 | 6/1/2007 | 1991 | 40 | |||||||||||||||||||||||||||||
Industrial | Franklin | TN | — | — | — | 8,805,302 | 8,805,302 | 3,458,963 | 1/1/2002 | 1970 | 38-40 | |||||||||||||||||||||||||||||
Industrial | Memphis | TN | — | — | — | 19,233,942 | 19,233,942 | 10,221,999 | 1/1/2002 | 1973 | 30-40 | |||||||||||||||||||||||||||||
Industrial | Winchester | VA | 10,606,017 | — | 3,823,436 | 12,226,079 | 16,049,515 | 847,606 | 6/1/2007 | 2001 | 40 | |||||||||||||||||||||||||||||
130,515,775 | 3,979,635 | 35,773,389 | 316,863,729 | 352,637,118 | 70,898,044 | |||||||||||||||||||||||||||||||||||
Other | Jonesboro | AR | — | 17,184 | — | 17,184 | — | 1/1/2002 | ||||||||||||||||||||||||||||||||
Other | Sun City | AZ | — | — | 74,588 | 1,698,893 | 1,773,481 | 554,363 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Other | Baltimore | MD | — | — | 4,618,251 | — | 4,618,251 | — | 10/31/2006 | 42 | ||||||||||||||||||||||||||||||
Other | Carlsbad | NM | — | — | 70,352 | 1,565,013 | 1,635,365 | 510,677 | 1/1/2002 | 1980 | 38-40 | |||||||||||||||||||||||||||||
Other | Corpus Christi | TX | — | — | 81,682 | 1,923,062 | 2,004,744 | 627,508 | 1/1/2002 | 1983 | 38-40 | |||||||||||||||||||||||||||||
Other | El Paso | TX | — | — | 60,863 | 1,265,089 | 1,325,952 | 412,808 | 1/1/2002 | 1982 | 38-40 | |||||||||||||||||||||||||||||
Other | McAllen | TX | — | — | 56,857 | 1,138,486 | 1,195,343 | 371,496 | 1/1/2002 | 2004 | 38-40 | |||||||||||||||||||||||||||||
Other | Victoria | TX | — | — | 80,712 | 1,896,076 | 1,976,788 | 618,704 | 1/1/2002 | 1981 | 38-40 | |||||||||||||||||||||||||||||
Other | Various | — | — | 5,053,073 | 5,053,073 | — | 1/1/2002 | |||||||||||||||||||||||||||||||||
— | — | 5,060,489 | 14,539,692 | 19,600,181 | 3,095,556 | |||||||||||||||||||||||||||||||||||
Total | $ | 788,427,785 | $ | 13,443,644 | $ | 227,537,346 | $ | 1,599,540,900 | $ | 1,827,078,246 | $ | 419,658,958 | ||||||||||||||||||||||||||||
*** | Property is collateral for a $213,635,000 secured loan | |
(A) | The total cost basis of the Partnership’s properties at December 31, 2007 for Federal income tax purposes was approximately $2.2 billion. |
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SCHEDULE III
(Amounts in thousands)
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2007 | 2006 | 2005 | ||||||||||
Real Estate | ||||||||||||
Balance at beginning of year | $ | 1,451,950 | $ | 1,457,603 | $ | 1,578,182 | ||||||
Additions during the year: | ||||||||||||
Land and land estates | 133,608 | 41,145 | 30 | |||||||||
Buildings and improvements | 528,758 | 204,211 | 256 | |||||||||
2,114,316 | 1,702,959 | 1,578,468 | ||||||||||
Less: Reclassifications and disposition of assets | 287,238 | 251,009 | 120,865 | |||||||||
Balance at end of year | $ | 1,827,078 | $ | 1,451,950 | $ | 1,457,603 | ||||||
Accumulated Depreciation | ||||||||||||
Balance at beginning of year | $ | 475,226 | $ | 544,085 | $ | 545,385 | ||||||
Depreciation and amortization expense | 42,506 | 59,724 | 49,156 | |||||||||
Accumulated depreciation and amortization on acquisitions (1) | 22,185 | — | — | |||||||||
539,917 | 603,809 | 594,541 | ||||||||||
Less: Reclassifications and disposition of assets | 120,258 | 128,583 | 50,456 | |||||||||
Balance at end of year | $ | 419,659 | $ | 475,226 | $ | 544,085 | ||||||
(1) | Represents the carry over basis acquired from assets previously owned by Lexington. |
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3.1 | — | Second Amended and Restated Certificate of Limited Partnership of The Lexington Master Limited Partnership | (c) | |||
3.2 | — | Second Amended and Restated Agreement of Limited Partnership of The Lexington Master Limited Partnership dated as of December 31, 2006 | (c) | |||
4.1 | — | Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee | (d) | |||
4.2 | — | First Supplemental Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 | (d) | |||
4.3 | — | Second Supplemental Indenture, dated as of March 9, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 | (e) | |||
9.1 | — | Voting Trustee Agreement, dated as of December 31, 2006, among Lexington Realty Trust, The Lexington Master Limited Partnership and NKT Advisors LLC | (c) | |||
10.1 | — | Letter Agreement among the Registrant, Apollo Real Estate Investment Fund III, L.P., The Newkirk Master Limited Partnership, NKT Advisors LLC, Vornado Realty Trust, VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC and WEM Bryn Mawr Associates LLC (1) | (a) | |||
10.2 | — | Amendment to the Letter Agreement among the Registrant, Apollo Real Estate Investment Fund III, L.P., The Newkirk Master Limited Partnership, NKT Advisors LLC, Vornado Realty Trust, Vornado Realty L.P., VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and WEM-Brynmawr Associates LLC (1) | (a) | |||
10.3 | — | Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated September 21, 2007, among The Newkirk Master Limited Partnership, WRT Realty, L.P. and FUR Holdings LLC (1) | (h) | |||
10.4 | — | Amendment No. 1 to Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated as of January 7, 2008. (1) | (j) | |||
10.5 | — | Master Repurchase Agreement, dated March 30, 2006, among Column Financial Inc., 111 Debt Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk Realty Trust, Inc. (1) | (b) | |||
10.6 | — | Master Repurchase Agreement, dated May 24, 2006, between Bear, Stearns International Limited and 111 Debt Acquisition-Two LLC (1) | (c) | |||
10.7 | — | Funding Agreement, dated as of December 31, 2006, by and among Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., Lepercq Corporate Income Fund III L.P., Net 3 Acquisition L.P., The Lexington Master Limited Partnership and Lexington Realty Trust (1) | (c) | |||
10.8 | — | Guaranty Agreement, effective as of December 31, 2006, between Lexington Realty Trust and The Lexington Master Limited Partnership (1) | (c) | |||
10.9 | — | Property Management Agreement, dated as of December 31, 2006, among Lexington Realty Trust, The Lexington Master Limited Partnership and Winthrop Management L.P. (1) | (c) |
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10.10 | Registration Rights Agreement, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., New 3 Acquisition L.P., Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for themselves and on behalf of the initial purchasers named therein (1) | (d) | ||||
10.11 | Registration Rights Agreement, dated as of March 9, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., Net 3 Acquisition L.P., Bear, Stearns & Co. Inc. and Lehman Brothers Inc. (1) | (e) | ||||
10.12 | Common Share Delivery Agreement, made as of January 29, 2007, between The Lexington Master Limited Partnership and Lexington Realty Trust (1) | (d) | ||||
10.13 | Common Share Delivery Agreement, dated March 9, 2007, between The Lexington Master Limited Partnership and Lexington Realty Trust (1) | (e) | ||||
10.14 | Credit Agreement, dated as of June 1, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., Net 3 Acquisition L.P., jointly and severally as borrowers, KeyBanc Capital Markets, as lead arranger and book running manager, KeyBank National Association, as agent, and each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section 12.5.(d) therein (1) | (m) | ||||
10.15 | Second Amendment and Restated Limited Partnership Limited Partnership Agreement, dated as of February 20, 2008, among LMLP GP LLC, The Lexington Master Limited Partnership and Inland American (Net Lease) Sub, LLC (1) | (k) | ||||
10.16 | Contribution Agreement, dated as of August 10, 2007, between The Lexington Master Limited Partnership and Net Lease Strategic Assets Fund L.P. (1) | (i) | ||||
10.17 | Amendment No. 1 to Contribution Agreement, dated as of December 20, 2007 (1) | (l) | ||||
10.18 | Amendment No. 2 to Contribution Agreement, dated as of February 20, 2008 (1) | (k) | ||||
10.19 | Purchase and Sale Agreement, dated as of August 10, 2007, between The Lexington Master Limited Partnership and Net Lease Strategic Assets Fund L.P. (1) | (i) | ||||
10.20 | Amendment No. 1 to Purchase and Sale Agreement, dated as of December 20, 2007 (1) | (l) | ||||
10.21 | Amendment No. 2 to Purchase and Sale Agreement, dated as of February 20, 2008 (1) | (k) | ||||
10.22 | Management Agreement, dated as of August 10, 2007, between Net Lease Strategic Assets Fund L.P. and Lexington Realty Advisors, Inc. (1) | (i) | ||||
21 | List of Subsidiaries | |||||
31 | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | (a) | ||||
32 | Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | (a) | ||||
* | Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
(a) | Furnished herewith | |
(b) | Incorporated by reference to Amendment No. 5 to Newkirk Realty Trust’s Registration Statement on Form S-11 (Registration No. 333-127278) filed on October 28, 2005 | |
(c) | Incorporated by reference to the Partnership’s Current Report on form 8-K filed April 5, 2006 | |
(d) | Incorporated by reference to the Partnership’s Current Report on 8K filed April 12, 2006 | |
(e) | Incorporated by reference to Lexington Realty Trust’s Current Report on 8K filed January 8, 2007 | |
(f) | Incorporated by reference to The Lexington Master Limited Partnership’s Current Report on 8K filed January 29, 2007 | |
(g) | Incorporated by reference to The Lexington Master Limited Partnership’s Current Report on 8K filed March 9, 2007 |
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(h) | Incorporated by reference to Lexington Realty Trust’s Current Report on form 8-K filed September 24, 2007 | |
(i) | Incorporated by reference to the Partnership’s Current Report on form 8-K filed August 16, 2007 | |
(j) | Incorporated by reference to the Partnership’s Current Report on form 8-K filed January 11, 2008. | |
(k) | Incorporated by reference to the Partnership’s Current Report on form 8-K filed February 21, 2008. | |
(l) | Incorporated by reference to the Partnership’s Current Report on form 8-K filed December 26, 2007. | |
(m) | Incorporated by reference to the Partnership’s Current Report on Form 8-K filed June 7, 2007. |
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State of | ||
Name of Entity | Formation | |
ACQUIPORT 550 MANAGER LLC | DE | |
ACQUIPORT 600 MANAGER LLC | DE | |
ACQUIPORT COLORADO SPRINGS LLC | DE | |
ACQUIPORT COLORADO SPRINGS MANAGER LLC | DE | |
ACQUIPORT LAKE MARY 550 LLC | DE | |
ACQUIPORT LAKE MARY 600 LLC | DE | |
ACQUIPORT LAURENS LLC | DE | |
ACQUIPORT MILFORD LLC | DE | |
ACQUIPORT PARSIPPANY L.L.C. | DE | |
ACQUIPORT PARSIPPANY MANAGER L.L.C. | DE | |
ACQUIPORT TEMPERANCE LLC | DE | |
ACQUIPORT WINCHESTER LLC | DE | |
ACQUIPORT WINCHESTER MANAGER LLC | DE | |
ADGOLD ASSOCIATES LLC | NY | |
ADGOLD MANAGER LLC | NY | |
ALMARC GROUP LLC | CT | |
ALMARC MANAGER LLC | CT | |
ALSEY ASSOCIATES LIMITED PARTNERSHIP | CT | |
AUTOKIRK LLC | CT | |
AVAZAR ASSOCIATES | CT | |
AVAZAR CORP. | CT | |
AVAZAR I LIMITED PARTNERSHIP | DE | |
AVAZAR II LIMITED PARTNERSHIP | DE | |
BATTIN ASSOCIATES | CT | |
BATTIN CORP. | CT | |
BATTIN I LIMITED PARTNERSHIP | DE | |
BATTIN II LIMITED PARTNERSHIP | DE | |
CHADAN ASSOCIATES LLC | NY | |
CHADAN MANAGER LLC | NY | |
CHADER ASSOCIATES LLC | NY | |
CHADER MANAGER LLC | NY | |
CHADGOLD ASSOCIATES | CT | |
CHADGOLD CORP. | CT | |
CHADGOLD I LIMITED PARTNERSHIP | DE | |
CHADGOLD II LIMITED PARTNERSHIP | DE | |
CONZAR ASSOCIATES | CT | |
CONZAR I LIMITED PARTNERSHIP | DE | |
CONZAR II LIMITED PARTNERSHIP | DE | |
CONZAR MANAGER LLC | CT | |
DASIS ASSOCIATES LLC | NY | |
DASIS MANAGER LLC | NY | |
DREWMAR CORP. | CA | |
ELOTRUM CORP. | DE | |
GREZAR ASSOCIATES LLC | CT | |
GREZAR MANAGER LLC | CT | |
JAZAR ASSOCIATES LLC | CT | |
JAZAR MANAGER LLC | CT | |
JERAL ASSOCIATES LIMITED PARTNERSHIP | CT | |
JERMOR ASSOCIATES LIMITED PARTNERSHIP | CT |
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State of | ||
Name of Entity | Formation | |
JESEB CORP. | NJ | |
JESS LLC | DE | |
LCB LIMITED PARTNERSHIP | DE | |
LEXINGTON ACQUIPORT COLINAS L.P. | DE | |
LEXINGTON ACQUIPORT COMPANY LLC | DE | |
LEXINGTON ACQUIPORT COMPANY LLC | DE | |
LEXINGTON ACQUIPORT FISHERS LLC | DE | |
LEXINGTON ACQUIPORT SIERRA LLC | DE | |
LEXINGTON COLUMBUS (JACKSON STREET) L.P. | DE | |
LEXINGTON COLUMBUS (JACKSON STREET) MANAGER LLC | DE | |
LEXINGTON DUNCAN L.P. | DE | |
LEXINGTON DUNCAN MANAGER LLC | DE | |
LEXINGTON LAS VEGAS (VEGPOW) L.P. | DE | |
LEXINGTON LAS VEGAS (VEGPOW) MANAGER LLC | DE | |
LEXINGTON LION CARY GP LLC | DE | |
LEXINGTON LION CARY II L.P. | DE | |
LEXINGTON LION CARY L.P. | DE | |
LEXINGTON LION CHICAGO GP LLC | DE | |
LEXINGTON LION CHICAGO L.P. | DE | |
LEXINGTON LION HOUSTON GP LLC | DE | |
LEXINGTON LION HOUSTON L.P. | DE | |
LEXINGTON LION MCLEAREN GP LLC | DE | |
LEXINGTON LION MCLEAREN L.P. | DE | |
LEXINGTON LION NEBC GP LLC | DE | |
LEXINGTON LION NEBC L.P. | DE | |
LEXINGTON LION NEBC LAND L.P. | DE | |
LEXINGTON LION PLYMOUTH GP LLC | DE | |
LEXINGTON LION PLYMOUTH L.P. | DE | |
LEXINGTON LION RICHMOND GP LLC | DE | |
LEXINGTON LION RICHMOND L.P. | DE | |
LEXINGTON MEMPHIS (JLE) L.P. | DE | |
LEXINGTON MEMPHIS (JLE) MANAGER LLC | DE | |
LEXINGTON MLP COPPELL L.P. | DE | |
LEXINGTON MLP COPPELL MANAGER LLC | DE | |
LEXINGTON MLP SHREVEPORT L.P. | DE | |
LEXINGTON MLP SHREVEPORT MANAGER LLC | DE | |
LEXINGTON MLP WESTERVILLE L.P. | DE | |
LEXINGTON MLP WESTERVILLE MANAGER LLC | DE | |
LEXINGTON/LION VENTURE L.P. | DE | |
LEX-PROPERTY HOLDINGS LLC | DE | |
LEX-SPRINGING MEMBER LLC | DE | |
LINWOOD AVENUE LIMITED PARTNERSHIP | DE | |
LMLP GP LLC | DE | |
LOMBARD STREET LOTS, LLC | MD | |
MARKLANE ASSOCIATES LIMITED PARTNERSHIP | CT | |
MLP MANAGER CORP. | DE | |
NACIV MANAGER LLC | CT | |
NEWKIRK 21AT GP LLC | DE | |
NEWKIRK 21AT L.P. | DE | |
NEWKIRK ALAKE GP LLC | DE | |
NEWKIRK ALAKE L.P. | DE | |
NEWKIRK ALBEAU GP LLC | DE | |
NEWKIRK ALBEAU L.P. | DE |
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State of | ||
Name of Entity | Formation | |
NEWKIRK ALTENN GP LLC | DE | |
NEWKIRK ALTENN L.P. | DE | |
NEWKIRK ALWOOD GP LLC | DE | |
NEWKIRK ALWOOD L.P. | DE | |
NEWKIRK ASSET MANAGEMENT LLC | DE | |
NEWKIRK AVREM GP LLC | DE | |
NEWKIRK AVREM L.P. | DE | |
NEWKIRK BASOT GP LLC | DE | |
NEWKIRK BASOT L.P. | DE | |
NEWKIRK BEDCAR GP LLC | DE | |
NEWKIRK BEDCAR L.P. | DE | |
NEWKIRK BETHPLAIN GP LLC | DE | |
NEWKIRK BETHPLAIN L.P. | DE | |
NEWKIRK CALANE GP LLC | DE | |
NEWKIRK CALANE L.P. | DE | |
NEWKIRK CALCRAF GP LLC | DE | |
NEWKIRK CALCRAF L.P. | DE | |
NEWKIRK CAPITAL LLC | DE | |
NEWKIRK CAROLION GP LLC | DE | |
NEWKIRK CAROLION L.P. | DE | |
NEWKIRK CLIFMAR GP LLC | DE | |
NEWKIRK CLIFMAR L.P. | DE | |
NEWKIRK DALHILL GP LLC | DE | |
NEWKIRK DALHILL L.P. | DE | |
NEWKIRK DAYTOWER GP LLC | DE | |
NEWKIRK DAYTOWER L.P. | DE | |
NEWKIRK DENPORT GP LLC | DE | |
NEWKIRK DENPORT L.P. | DE | |
NEWKIRK DENVILLE GP LLC | DE | |
NEWKIRK DENVILLE L.P. | DE | |
NEWKIRK ELWAY GP LLC | DE | |
NEWKIRK ELWAY L.P. | DE | |
NEWKIRK FEDDATA GP LLC | DE | |
NEWKIRK FEDDATA L.P. | DE | |
NEWKIRK FINCO LLC | DE | |
NEWKIRK GERSANT GP LLC | DE | |
NEWKIRK GERSANT L.P. | DE | |
NEWKIRK GP HOLDING LLC | DE | |
NEWKIRK GP LLC | DE | |
NEWKIRK HAZELPORT GP LLC | DE | |
NEWKIRK HAZELPORT L.P. | DE | |
NEWKIRK JACWAY GP LLC | DE | |
NEWKIRK JACWAY L.P. | DE | |
NEWKIRK JOHAB GP LLC | DE | |
NEWKIRK JOHAB L.P. | DE | |
NEWKIRK JVF GP LLC | DE | |
NEWKIRK JVF L.P. | DE | |
NEWKIRK LANMAR GP LLC | DE | |
NEWKIRK LANMAR L.P. | DE | |
NEWKIRK LARLOOSA GP LLC | DE | |
NEWKIRK LARLOOSA L.P. | DE | |
NEWKIRK LEYDEN GP LLC | DE | |
NEWKIRK LEYDEN L.P. | DE |
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State of | ||
Name of Entity | Formation | |
NEWKIRK LIROC GP LLC | DE | |
NEWKIRK LIROC L.P. | DE | |
NEWKIRK LYBSTER GP LLC | DE | |
NEWKIRK LYBSTER L.P. | DE | |
NEWKIRK MARBAX GP LLC | DE | |
NEWKIRK MARBAX L.P. | DE | |
NEWKIRK MARTALL GP LLC | DE | |
NEWKIRK MARTALL L.P. | DE | |
NEWKIRK MERDAY GP LLC | DE | |
NEWKIRK MERDAY L.P. | DE | |
NEWKIRK MLP UNIT LLC | DE | |
NEWKIRK NEWAL GP LLC | DE | |
NEWKIRK NEWAL L.P. | DE | |
NEWKIRK ORPER GP LLC | DE | |
NEWKIRK ORPER L.P. | DE | |
NEWKIRK PLECAR GP LLC | DE | |
NEWKIRK PLECAR L.P. | DE | |
NEWKIRK PORTO GP LLC | DE | |
NEWKIRK PORTO L.P. | DE | |
NEWKIRK SABLEMART GP LLC | DE | |
NEWKIRK SABLEMART L.P. | DE | |
NEWKIRK SALISTOWN GP LLC | DE | |
NEWKIRK SALISTOWN L.P. | DE | |
NEWKIRK SANDNORD GP LLC | DE | |
NEWKIRK SANDNORD L.P. | DE | |
NEWKIRK SEGAIR GP LLC | DE | |
NEWKIRK SEGAIR L.P. | DE | |
NEWKIRK SEGUINE GP LLC | DE | |
NEWKIRK SEGUINE L.P. | DE | |
NEWKIRK SILWARD GP LLC | DE | |
NEWKIRK SILWARD L.P. | DE | |
NEWKIRK SKOOB GP LLC | DE | |
NEWKIRK SKOOB L.P. | DE | |
NEWKIRK SPOKMONT GP LLC | DE | |
NEWKIRK SPOKMONT L.P. | DE | |
NEWKIRK STATMONT GP LLC | DE | |
NEWKIRK STATMONT L.P. | DE | |
NEWKIRK SUNWAY GP LLC | DE | |
NEWKIRK SUNWAY L.P. | DE | |
NEWKIRK SUPERGAR GP LLC | DE | |
NEWKIRK SUPERGAR L.P. | DE | |
NEWKIRK SUPERLINE GP LLC | DE | |
NEWKIRK SUPERLINE L.P. | DE | |
NEWKIRK SUPERWEST GP LLC | DE | |
NEWKIRK SUPERWEST L.P. | DE | |
NEWKIRK SUTERET GP LLC | DE | |
NEWKIRK SUTERET L.P. | DE | |
NEWKIRK SYRCAR GP LLC | DE | |
NEWKIRK SYRCAR L.P. | DE | |
NEWKIRK TEXFORD GP LLC | DE | |
NEWKIRK TEXFORD L.P. | DE | |
NEWKIRK VENGAR GP LLC | DE | |
NEWKIRK VENGAR L.P. | DE |
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State of | ||
Name of Entity | Formation | |
NEWKIRK WALANDO GP LLC | DE | |
NEWKIRK WALANDO L.P. | DE | |
NEWKIRK WALCREEK GP LLC | DE | |
NEWKIRK WALCREEK L.P. | DE | |
NEWKIRK WALMAD GP LLC | DE | |
NEWKIRK WALMAD L.P. | DE | |
NEWKIRK WASHTEX GP LLC | DE | |
NEWKIRK WASHTEX L.P. | DE | |
NEWKIRK WYBANCO GP LLC | DE | |
NEWKIRK WYBANCO L.P. | DE | |
NEWZAR ASSOCIATES LLC | CT | |
NEWZAR MANAGER LLC | CT | |
NK FIRST LOAN E CERT. LLC | DE | |
NK FIRST LOAN F CERT LLC | DE | |
NK FIRST LOAN G CERT LLC | DE | |
NK-850/950 CORPORETUM PROPERTY LLC | DE | |
NK-850/950 CORPORETUM PROPERTY MANAGER LLC | DE | |
NK-BRIDGEWATER PROPERTY LLC | DE | |
NK-BRIDGEWATER PROPERTY MANAGER LLC | DE | |
NK-CAMFEX JR LOAN LLC | DE | |
NK-CINN HAMILTON PROPERTY LLC | DE | |
NK-CINN HAMILTON PROPERTY MANAGER LLC | DE | |
NK-GLENWILLOW PROPERTY LLC | DE | |
NK-GLENWILLOW PROPERTY MANAGER LLC | DE | |
NK-HOLDING LLC | DE | |
NK-LCB PROPERTY LLC | DE | |
NK-LCB PROPERTY MANAGER LLC | DE | |
NK-LEYDEN GP LLC | DE | |
NK-LEYDEN LOAN, L.P. | DE | |
NK-LOMBARD GL PROPERTY LLC | DE | |
NK-LOMBARD GL PROPERTY MANAGER LLC | DE | |
NK-LOMBARD STREET MANAGER LLC | DE | |
NK-LUMBERTON PROPERTY LLC | DE | |
NK-LUMBERTON PROPERTY MANAGER LLC | DE | |
NK-MARC CAA LOAN LLC | DE | |
NK-MCDONOUGH PROPERTY LLC | DE | |
NK-MCDONOUGH PROPERTY MANAGER LLC | DE | |
NK-ODW/COLUMBUS PROPERTY LLC | DE | |
NK-ODW/COLUMBUS PROPERTY MANAGER LLC | DE | |
NK-REMAINDER INTEREST LLC | DE | |
NK-ROCKAWAY PROPERTY LLC | DE | |
NK-ROCKAWAY PROPERTY MANAGER LLC | DE | |
NK-ROCKFORD PROPERTY LLC | DE | |
NK-ROCKFORD PROPERTY MANAGER LLC | DE | |
NK-STATESVILLE PROPERTY LLC | DE | |
NK-STATESVILLE PROPERTY MANAGER LLC | DE | |
NK-TCC PROPERTY LLC | DE | |
NK-TCC PROPERTY MANAGER LLC | DE | |
NOZAR ASSOCIATES | CT | |
NOZAR CORP. | CT | |
NOZAR I LIMITED PARTNERSHIP | DE | |
NOZAR II LIMITED PARTNERSHIP | DE | |
RAZAR GROUP LLC | CT |
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State of | ||
Name of Entity | Formation | |
RAZAR MANAGER LLC | CT | |
SALISKIRK LLC | CT | |
SANZAR ASSOCIATES | CT | |
SANZAR I LIMITED PARTNERSHIP | DE | |
SANZAR II LIMITED PARTNERSHIP | DE | |
SANZAR MANAGER LLC | CT | |
SKIKID LLC | DE | |
SKOOBKIRK LLC | CT | |
SPOKMONT LLC | AL | |
SUE LLC | DE | |
TABKIRK LLC | CT | |
TURA ASSOCIATES LIMITED PARTNERSHIP | CT | |
VENBER CORP. | CT | |
VICAN ASSOCIATES | CT | |
VICAN I LIMITED PARTNERSHIP | DE | |
VICAN II LIMITED PARTNERSHIP | DE | |
ZIBERG ASSOCIATES LLC | NY | |
ZIBERG MANAGER LLC | NY | |
ZIDER ASSOCIATES | CT | |
ZIDER CORP. | CT | |
ZIDER I LIMITED PARTNERSHIP | DE | |
ZIDER II LIMITED PARTNERSHIP | DE | |
ZIGOLD ASSOCIATES | CT | |
ZIGOLD CORP. | CT | |
ZIGOLD I LIMITED PARTNERSHIP | DE | |
ZIGOLD II LIMITED PARTNERSHIP | DE | |
ZISGO ASSOCIATES LLC | CT | |
ZISGO MANAGER LLC | CT | |
ACQUIPORT BREA L.P. | DE | |
ACQUIPORT BREA MANAGER LLC | DE | |
TEXAN WESTERN LIMITED PARTNERSHIP | DE |
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/s/ T. Wilson Eglin | ||||
T. Wilson Eglin | ||||
Chief Executive Officer the Registrant’s General Partner | ||||
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/s/ Patrick Carroll | ||||
Patrick Carroll | ||||
Chief Financial Officer the Registrant’s General Partner | ||||
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OF THE SARBANES-OXLEY ACT OF 2002
By: | /s/ T. Wilson Eglin | |||
Name: | T. Wilson Eglin | |||
Chief Executive Officer of the Registrant’s General Partner | ||||
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OF THE SARBANES-OXLEY ACT OF 2002
By: | /s/ Patrick Carroll | |||
Name: | Patrick Carroll | |||
Chief Financial Officer of the Registrant’s General Partner | ||||
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SECURITIES AND EXCHANGE COMMISSION
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 11-3636084 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Penn Plaza, Suite 4015, New York, New York | 10119 | |
(Address of principal executive offices) | (Zip Code) |
(212) 692-7200 | ||
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
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THE LEXINGTON MASTER LIMITED PARTNERSHIP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except unit data)
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS: | ||||||||
Real estate investments, at cost | $ | 1,790,167 | $ | 1,829,478 | ||||
Less: accumulated depreciation and amortization | 426,358 | 419,659 | ||||||
Real estate investments, net | 1,363,809 | 1,409,819 | ||||||
Properties held for sale — discontinued operations | 996 | 92,357 | ||||||
Cash and cash equivalents | 84,350 | 321,570 | ||||||
Restricted cash | 5,013 | 19,650 | ||||||
Rent receivable -current | 13,453 | 18,663 | ||||||
Rent receivable -deferred | 25,891 | 29,150 | ||||||
Loans and interest receivable | 40,450 | 26,612 | ||||||
Investment in and advances to non-consolidated entities | 219,066 | 227,077 | ||||||
Deferred costs, net | 25,029 | 25,883 | ||||||
Intangible assets, net | 127,871 | 155,375 | ||||||
Other assets | 18,159 | 16,788 | ||||||
$ | 1,924,087 | $ | 2,342,944 | |||||
LIABILITIES, MINORITY INTERESTS AND EQUITY: | ||||||||
Liabilities: | ||||||||
Mortgages and notes payable, net of unamortized discount | $ | 946,460 | $ | 1,002,063 | ||||
Exchangeable notes payable, net of unamortized discount | 289,208 | 431,115 | ||||||
Embedded derivative financial instrument, at fair value | 21,384 | 1,800 | ||||||
Contract right payable | 14,435 | 13,444 | ||||||
Accrued interest payable | 6,010 | 15,512 | ||||||
Accounts payable and other liabilities | 16,581 | 16,208 | ||||||
Deferred revenue-below market leases, net | 18,020 | 19,924 | ||||||
Prepaid rent | 6,011 | 5,094 | ||||||
Distributions payable | 23,769 | 169,355 | ||||||
Liabilities of discontinued operations | 580 | 86,726 | ||||||
Total Liabilities | 1,342,458 | 1,761,241 | ||||||
Commitments and contingencies (note 5 and 8) | ||||||||
Minority interests | 19,277 | 17,302 | ||||||
Partners’ equity (72,027,253 and 68,426,429 limited partnership units outstanding at September 30, 2008 and December 31, 2007, respectively) | 562,352 | 564,401 | ||||||
$ | 1,924,087 | $ | 2,342,944 | |||||
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited and in thousands, except unit and per unit data)
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Gross revenues: | ||||||||||||||||
Rental | $ | 46,214 | $ | 49,607 | $ | 172,727 | $ | 129,400 | ||||||||
Advisory and incentive fees | — | — | — | 8,530 | ||||||||||||
Tenant reimbursements | 5,229 | 3,766 | 13,431 | 5,949 | ||||||||||||
Total gross revenues | 51,443 | 53,373 | 186,158 | 143,879 | ||||||||||||
Expense applicable to revenues: | ||||||||||||||||
Depreciation and amortization | (20,221 | ) | (18,804 | ) | (60,494 | ) | (38,022 | ) | ||||||||
Property operating | (10,804 | ) | (7,446 | ) | (28,995 | ) | (14,637 | ) | ||||||||
General and administrative | (4,206 | ) | (2,146 | ) | (12,105 | ) | (8,020 | ) | ||||||||
Non-operating income | 2,521 | 4,019 | 23,128 | 8,582 | ||||||||||||
Interest and amortization expense | (19,042 | ) | (20,068 | ) | (60,416 | ) | (45,656 | ) | ||||||||
Debt satisfaction gains (charges), net | 1,410 | — | 8,903 | (2,434 | ) | |||||||||||
Change in fair value of embedded derivative | (17,315 | ) | 6,143 | (19,584 | ) | 7,352 | ||||||||||
Income (loss) before state and local taxes, minority interests, equity in earnings (losses) of non-consolidated entities, gain (loss) on sale of marketable equity securities, net, and discontinued operations | (16,214 | ) | 15,071 | 36,595 | 51,044 | |||||||||||
State and local taxes | 134 | (106 | ) | (194 | ) | (726 | ) | |||||||||
Minority interests’ share of income | (2,559 | ) | (3,090 | ) | (8,830 | ) | (9,344 | ) | ||||||||
Equity in earnings (losses) of non-consolidated entities | (2,119 | ) | 3,429 | (25,119 | ) | 29,568 | ||||||||||
Gain (loss) on sale of marketable equity securities, net | — | 606 | (23 | ) | 1,988 | |||||||||||
Income (loss) from continuing operations | (20,758 | ) | 15,910 | 2,429 | 72,530 | |||||||||||
Discontinued operations: | ||||||||||||||||
Income from discontinued operations | 334 | 4,305 | 2,205 | 14,982 | ||||||||||||
State and local taxes | (181 | ) | (42 | ) | (330 | ) | (107 | ) | ||||||||
Debt satisfaction charges | (120 | ) | — | (803 | ) | — | ||||||||||
Impairment charge | (614 | ) | — | (614 | ) | — | ||||||||||
Gains on sales of properties | 7,799 | 14,614 | 69,485 | 29,791 | ||||||||||||
Minority interests’ share of income | (1,598 | ) | (3,884 | ) | (32,821 | ) | (7,249 | ) | ||||||||
Total income from discontinued operations | 5,620 | 14,993 | 37,122 | 37,417 | ||||||||||||
Net income (loss) | $ | (15,138 | ) | $ | 30,903 | $ | 39,551 | $ | 109,947 | |||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | $ | (15,138 | ) | $ | 30,903 | $ | 39,551 | $ | 109,947 | |||||||
Change in unrealized net (loss) gain on investment in marketable equity securities | — | 128 | (6 | ) | 809 | |||||||||||
Change in unrealized gain (loss) on interest rate derivatives | (750 | ) | — | 1,735 | (649 | ) | ||||||||||
Change in unrealized loss from non-consolidated entities | (820 | ) | (5,833 | ) | (6,978 | ) | (5,833 | ) | ||||||||
Less reclassification adjustment from loss (gains) included in net income | — | (606 | ) | 10,460 | (3,352 | ) | ||||||||||
Other comprehensive income (loss) | (1,570 | ) | (6,311 | ) | 5,211 | (9,025 | ) | |||||||||
Comprehensive income (loss) | $ | (16,708 | ) | $ | 24,592 | $ | 44,762 | $ | 100,922 | |||||||
Per limited partnership unit data: | ||||||||||||||||
Income (loss) from continuing operations | $ | (.29 | ) | $ | .27 | $ | .04 | $ | 1.33 | |||||||
Income from discontinued operations | .08 | .26 | .52 | .68 | ||||||||||||
Net income (loss) per limited partnership unit | $ | (.21 | ) | $ | .53 | $ | .56 | $ | 2.01 | |||||||
Distributions per limited partnership unit | $ | .33 | $ | .38 | $ | .99 | $ | 1.13 | ||||||||
Weighted average limited partnership units outstanding | 72,027,266 | 58,714,260 | 70,923,360 | 54,742,488 | ||||||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008
(Unaudited and in thousands, except unit data)
Accumulated | ||||||||||||||||
Limited | Other | Total | ||||||||||||||
Partnership | Partners’ | Comprehensive | Partners’ | |||||||||||||
Units | Capital | Income (Loss) | Equity | |||||||||||||
Balance at December 31, 2007 | 68,426,429 | $ | 572,802 | $ | (8,401 | ) | $ | 564,401 | ||||||||
Minority interest charge | — | 14,794 | — | 14,794 | ||||||||||||
Distributions | — | (71,307 | ) | — | (71,307 | ) | ||||||||||
Issuance of units | 3,600,837 | 9,702 | — | 9,702 | ||||||||||||
Redemption of units | (13 | ) | — | — | — | |||||||||||
Net income | — | 39,551 | — | 39,551 | ||||||||||||
Change in unrealized gain on investment in marketable equity securities, net of reclassification adjustment of $(17) included in net income | — | — | 11 | 11 | ||||||||||||
Change in unrealized gain from non-consolidated entities, net of reclassification adjustment of $(10,443) included in net income | — | — | 3,465 | 3,465 | ||||||||||||
Change in unrealized gain on interest rate derivatives | — | — | 1,735 | 1,735 | ||||||||||||
Balance at September 30, 2008 | 72,027,253 | $ | 565,542 | $ | (3,190 | ) | $ | 562,352 | ||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, 2008 and 2007
(Unaudited and in thousands)
2008 | 2007 | |||||||
Net cash provided by operating activities | $ | 127,758 | $ | 151,492 | ||||
Cash flows from investing activities: | ||||||||
Investment in real estate, including intangibles | (22,138 | ) | (229,265 | ) | ||||
Change in restricted cash | — | 40,149 | ||||||
Real estate deposits | 223 | (103 | ) | |||||
Proceeds from the sale of marketable equity securities | 175 | 26,388 | ||||||
Purchase of marketable equity securities | — | (723 | ) | |||||
Collection of loan receivable | — | 6,428 | ||||||
Issuance of loan receivable | (1,000 | ) | — | |||||
Loans receivable to related party, net | (33,119 | ) | (93,611 | ) | ||||
Net proceeds from disposal of real estate and investments in limited partnerships | 182,761 | 108,514 | ||||||
Increase in deferred leasing costs | (7,332 | ) | (2,346 | ) | ||||
Cash related to previously unconsolidated limited partnerships, net | — | 9,111 | ||||||
Investments in and advances to limited partnerships and co-investment programs | (18,265 | ) | (71,353 | ) | ||||
Distributions from non-consolidated entities in excess of accumulated earnings | 25,090 | 2,466 | ||||||
Net cash provided by (used in) investing activities | 126,395 | (204,345 | ) | |||||
Cash flows from financing activities: | ||||||||
Principal payments of mortgages and notes payable | (206,624 | ) | (576,496 | ) | ||||
Repurchase of exchangeable notes payable | (112,327 | ) | — | |||||
Proceeds from mortgages and notes payable | 70,000 | 454,640 | ||||||
Proceeds from exchangeable notes payable | — | 450,000 | ||||||
Off-market swap partial termination payments | (205 | ) | — | |||||
Distributions to limited partners | (216,893 | ) | (70,331 | ) | ||||
Distributions to minority interests | (22,968 | ) | (16,031 | ) | ||||
Limited partner buyouts | — | (1 | ) | |||||
Increase in deferred financing costs | (2,356 | ) | (13,701 | ) | ||||
Net cash (used in) provided by financing activities | (491,373 | ) | 228,080 | |||||
Change in cash and cash equivalents | (237,220 | ) | 175,227 | |||||
Cash and cash equivalents, at beginning of period | 321,570 | 57,624 | ||||||
Cash and cash equivalents, at end of period | $ | 84,350 | $ | 232,851 | ||||
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2008 and 2007
(Unaudited and dollars in thousands, except per share/unit data)
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September 30, | December 31, | |||||||
2008 | 2007 | |||||||
Cash and restricted cash | $ | 18,690 | $ | 19,094 | ||||
Investments | 1,017,989 | 1,140,108 | ||||||
Collateralized debt obligations | 351,525 | 376,650 | ||||||
Warehouse debt facilities obligations | 393,541 | 472,324 | ||||||
Preferred equity | 20,000 | — | ||||||
Members’ equity | 270,920 | 310,922 |
Three Months ended | Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest and other income | $ | 18,187 | $ | 19,937 | $ | 55,396 | $ | 48,141 | ||||||||
Interest expense | (8,176 | ) | (12,901 | ) | (27,062 | ) | (29,510 | ) | ||||||||
Impairment charge | (7,205 | ) | — | (65,221 | ) | — | ||||||||||
Gain on debt repayment | 4,996 | — | 12,698 | — | ||||||||||||
Other expenses and minority interest | (1,949 | ) | (879 | ) | (3,716 | ) | (3,564 | ) | ||||||||
Net income (loss) | $ | 5,853 | $ | 6,157 | $ | (27,905 | ) | $ | 15,067 | |||||||
Other comprehensive income (loss) | (1,640 | ) | (11,666 | ) | 6,929 | (11,666 | ) | |||||||||
Comprehensive income (loss) | $ | 4,213 | $ | (5,509 | ) | $ | (20,976 | ) | $ | 3,401 | ||||||
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As of 9/30/08 | As of 12/31/07 | |||||||
Real estate, including intangibles | $ | 729,271 | $ | 405,834 | ||||
Cash and restricted cash | 6,491 | 2,230 | ||||||
Mortgages payable | 321,842 | 171,556 |
For the nine months | ||||
ended September 30, | ||||
2008 | ||||
Gross rental revenues | $ | 35,364 | ||
Depreciation and amortization | (22,747 | ) | ||
Interest expense | (12,598 | ) | ||
Other expenses, net | (1,852 | ) | ||
Net loss | $ | (1,833 | ) | |
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Fair Value Measurements at September 30, 2008 using | ||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||
Active Markets for | Other | Significant | Balance at | |||||||||||||
Identical Liabilities | Observable | Unobservable | September | |||||||||||||
(Level 1) | Inputs (Level 2) | Inputs (Level 3) | 30, 2008 | |||||||||||||
Swap Obligation | $ | — | $ | 2,990 | $ | — | $ | 2,990 | ||||||||
Exchangeable Notes | ||||||||||||||||
Option Embedded | ||||||||||||||||
Derivative Liability | $ | — | $ | — | $ | 21,384 | $ | 21,384 |
Fair Value Measurements at | ||||
September 30, 2008 using | ||||
Significant Unobservable Inputs | ||||
(Level 3) | ||||
Balance January 1, 2008 | $ | 1,800 | ||
Change in fair value included as a reduction to earnings | 19,584 | |||
Balance September 30, 2008 | $ | 21,384 | ||
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For the Three Months ended | For the Nine Months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Total gross revenues | $ | 365 | $ | 6,529 | $ | 5,298 | $ | 23,727 | ||||||||
Pre-tax income, including gains on sale | $ | 5,801 | $ | 15,035 | $ | 37,452 | $ | 37,524 |
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• | The Partnership repurchased $32,000 of the 5.45% Exchangeable Guaranteed Notes for $23,740, plus accrued interest; | ||
• | Three significant unitholders, Lexington’s former Executive Chairman and Director of Strategic Acquisitions, Apollo Real Estate Fund III L.P., and Vornado, redeemed their limited partnership units in exchange for 27,624,371 common shares of Lexington. As a result, Lexington now owns 91.1% of the outstanding limited partnership units of the Partnership; | ||
• | The Partnership advanced an additional $3,085 to Lexington; and | ||
• | Inland Concord invested $43,500 in Concord this, along with cash available, was used to repay $46,583 of indebtedness under a warehouse facility. In connection with the repayment Concord exercised an extension option on the warehouse facility to extend the maturity date from March 2009 to March 2011. In addition Concord repaid $4,000 on a term loan and extended the maturity date of the new balance of $ 21,516 from December 2008 to December 2009. |
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ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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3.1 | Second Amended and Restated Certificate of Limited Partnership of The Lexington Master Limited Partnership | (c) | ||
3.2 | Second Amended and Restated Agreement of Limited Partnership of The Lexington Master Limited Partnership dated as of December 31, 2006 | (c) | ||
4.1 | Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee | (d) | ||
4.2 | First Supplemental Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 | (d) | ||
4.3 | Second Supplemental Indenture, dated as of March 9, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027 | (e) | ||
4.4 | Third Supplemental Indenture, dated as of June 19, 2007, among the Lexington Master Limited Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee. | (f) | ||
9.1 | Voting Trustee Agreement, dated as of December 31, 2006, among Lexington | (c) |
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Realty Trust, The Lexington Master Limited Partnership and NKT Advisors LLC | ||||
9.2 | Amendment No. 1 to Voting Trustee Agreement, dated as of March 20, 2008, among Lexington Realty Trust, The Lexington Master Limited Partnership and NKT Advisors LLC | (j) | ||
10.1 | Letter Agreement among Lexington Realty Trust, Apollo Real Estate Investment Fund III, L.P., The Newkirk Master Limited Partnership, NKT Advisors LLC, Vornado Realty Trust, VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC and WEM Bryn Mawr Associates LLC | (a) | ||
10.2 | Amendment to the Letter Agreement among Lexington Realty Trust, Apollo Real Estate Investment Fund III, L.P., The Newkirk Master Limited Partnership, NKT Advisors LLC, Vornado Realty Trust, Vornado Realty L.P., VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and WEM-Brynmawr Associates LLC | (a) | ||
10.3 | Second Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated August 2, 2008, between Lex-Win Concord LLC and Inland American (Concord) Sub LLC | (h) | ||
10.4 | Limited Liability Company Agreement of Lex-Win Concord, dated August 2, 2008 | (h) | ||
10.5 | Administration and Advisory Agreement, dated August 2, 2008, among Lex-Win Concord LLC, WRP Management LLC and WRP Sub-Management LLC | (h) | ||
10.6 | Master Repurchase Agreement, dated March 30, 2006, among Column Financial Inc., 111 Debt Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk Realty Trust, Inc. | (b) | ||
10.7 | Funding Agreement, dated as of December 31, 2006, by and among Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., Lepercq Corporate Income Fund III L.P., Net 3 Acquisition L.P., The Lexington Master Limited Partnership and Lexington Realty Trust | (c) | ||
10.8 | Guaranty Agreement, effective as of December 31, 2006, between Lexington Realty Trust and The Lexington Master Limited Partnership | (c) | ||
10.9 | Registration Rights Agreement, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., New 3 Acquisition L.P., Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for themselves and on behalf of the initial purchasers named therein | (d) | ||
10.10 | Registration Rights Agreement, dated as of March 9, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., Net 3 Acquisition L.P., Bear, Stearns & Co. Inc. and Lehman Brothers Inc. | (e) | ||
10.11 | Common Share Delivery Agreement, made as of January 29, 2007, between The Lexington Master Limited Partnership and Lexington Realty Trust | (d) | ||
10.12 | Common Share Delivery Agreement, dated March 9, 2007, between The Lexington Master Limited Partnership and Lexington Realty Trust | (e) |
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10.13 | Credit Agreement, dated as of June 1, 2007, among The Lexington Master Limited Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P., Net 3 Acquisition L.P., jointly and severally as borrowers, KeyBanc Capital Markets, as lead arranger and book running manager, KeyBank National Association, as agent, and each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section (12.5.(d) therein | (g) | ||
10.14 | Second Amended and Restated Limited Partnership Agreement of Net Lease Strategic Assets Fund L.P., dated as of February 20, 2008, among LMLP GP LLC, The Lexington Master Limited Partnership and Inland American (Net Lease) Sub, LLC | (g) | ||
10.15 | Form of Contribution Agreement | (i) | ||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | * | ||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | * | ||
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | * | ||
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | * |
* | Furnished herewith | |
(a) | Incorporated by reference to Amendment No. 5 to Newkirk Realty Trust’s Registration Statement on Form S-11 (Registration No. 333-127278) filed on October 28, 2005 | |
(b) | Incorporated by reference to the Partnership’s Current Report on 8K filed April 5, 2006 | |
(c) | Incorporated by reference to Lexington Realty Trust’s Current Report on 8K filed September 24, 2007 | |
(d) | Incorporated by reference to the Partnership’s Current Report on 8K filed August 16, 2007 | |
(e) | Incorporated by reference to the Partnership’s Current Report on 8K filed March 9, 2007 | |
(f) | Incorporated by reference to the Partnership’s Current Report on 8K filed June 22, 2007 | |
(g) | Incorporated by reference to the Partnership’s Current Report on 8K filed August 16, 2007 | |
(h) | Incorporated by reference to the Partnership’s Current Report on 8K filed August 2, 2008 | |
(i) | Incorporated by reference to the Partnership’s Current Report on Form 8-K filed December 26, 2007 | |
(j) | Incorporated by reference to the Partnership’s Current Report on Form 8-K filed March 24, 2008 |
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THE LEXINGTON MASTER LIMITED PARTNERSHIP | ||||
By: | Lex-GP-1Trust, its General Partner | |||
By: | /s/ T. Wilson Eglin | |||
T. Wilson Eglin | ||||
Chief Executive Officer | ||||
Signature | Title | Date | ||||
By: | /s/ T. Wilson Eglin | Chief Executive Officer of the General Partner of the Registrant | November 7, 2008 | |||
By: | /s/ Patrick Carroll | Chief Financial Officer of the General Partner of the Registrant | November 7, 2008 |
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1. | I have reviewed this report on Form 10-Q of The Lexington Master Limited Partnership; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a—15(e) and 15d—15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a—15(f) and 15(d)—15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that (the registrant’s fourth fiscal quarter in the case of an annual report) has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ T. Wilson Eglin | ||||
T. Wilson Eglin | ||||
Chief Executive Officer of General Partner |
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1. | I have reviewed this report on Form 10-Q of The Lexington Master Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a—15(e) and 15d—15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a—15(f) and 15(d)—15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that (the registrant’s fourth fiscal quarter in the case of an annual report) has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Patrick Carroll | ||||
Patrick Carroll | ||||
Chief Financial Officer of General Partner |
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18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
/s/ T. Wilson Eglin | ||||
T. Wilson Eglin | ||||
Chief Executive Officer of General Partner | ||||
November 7, 2008 | ||||
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18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
/s/ Patrick Carroll | ||||
Patrick Carroll | ||||
Chief Financial Officer of General Partner | ||||
November 7, 2008 | ||||
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AGREEMENT OF LIMITED PARTNERSHIP
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AGREEMENT OF LIMITED PARTNERSHIP
OF
THE LEXINGTON MASTER LIMITED PARTNERSHIP
DEFINED TERMS
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ORGANIZATIONAL MATTERS
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PURPOSE
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CAPITAL CONTRIBUTIONS
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DISTRIBUTIONS
ALLOCATIONS
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MANAGEMENT AND OPERATIONS OF BUSINESS
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RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS
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BOOKS, RECORDS, ACCOUNTING AND REPORTS
TAX MATTERS
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TRANSFERS AND WITHDRAWALS
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ADMISSION OF PARTNERS
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DISSOLUTION, LIQUIDATION AND TERMINATION
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AMENDMENT OF PARTNERSHIP AGREEMENT
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GENERAL PROVISIONS
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GENERAL PARTNER: | ||||||||
LEX GP-1 TRUST | ||||||||
By: | /s/ T. Wilson Eglin | |||||||
Name: | T. Wilson Eglin | |||||||
Title: | Chief Executive Officer | |||||||
LIMITED PARTNERS: | ||||||||
LEX LP-1 TRUST | ||||||||
By: | /s/ T. Wilson Eglin | |||||||
Name: | T. Wilson Eglin | |||||||
Title: | Chief Executive Officer | |||||||
LEX GP-1 TRUST, on behalf of and as attorney in | ||||||||
fact for each of the persons and entities currently | ||||||||
reflected on the books and records of the Partnership | ||||||||
as a Limited Partner in the Partnership | ||||||||
By: | /s/ T. Wilson Eglin | |||||||
Name: | T. Wilson Eglin | |||||||
Title: | Chief Executive Officer | |||||||
By: | ||||||||
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(Signature of Limited Partner) | ||||
(Street Address) | ||||
(City) (State) (Zip Code) |
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INFORMATION NOT REQUIRED IN PROXY STATEMENT/PROSPECTUS
EXHIBIT | DESCRIPTION OF DOCUMENT | |
2.1 | Agreement and Plan of Merger dated as of November 24, 2008, by and between Lexington Realty Trust and The Lexington Master Limited Partnership (included as Annex A to the proxy statement/prospectus forming part of this registration statement).* | |
5.1 | Opinion of Venable LLP regarding legality of shares issued* |
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EXHIBIT | DESCRIPTION OF DOCUMENT | |
8.1 | Opinion of Paul, Hastings, Janofsky & Walker LLP as to certain federal income tax matters regarding Lexington Trust’s status as a real estate investment trust.* | |
12 | Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividend (Previously filed as Exhibit 12 to Lexington Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007, filed February 29, 2008, and included in Annex B to the proxy statement/prospectus forming part of this registration statement)* | |
23.1 | Consents of KPMG LLP.* | |
23.2 | Consent of Deloitte & Touche LLP.* | |
23.3 | Consent of Paul, Hastings, Janofsky & Walker LLP (included in Exhibit 8.1).* | |
23.4 | Consent of Venable LLP (included in Exhibit 5.1).* | |
24.1 | Power of Attorney (included on the Signature Page in this Part II).* | |
99.1 | Form of proxy.* |
* | Filed herewith. |
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LEXINGTON REALTY TRUST | ||||
By: | /s/ T. Wilson Eglin | |||
Name: | T. Wilson Eglin | |||
Title: | Chief Executive Officer, President and Chief Operating Officer | |||
Signature | Capacity | Date | ||
/s/ E. Robert Roskind | Chairman and Trustee | November 24, 2008 | ||
/s/ T. Wilson Elgin | Chief Executive Officer, President, Chief Operating Officer and Trustee | November 24, 2008 | ||
/s/ Richard J. Rouse | Vice Chairman, Chief Investment Officer and Trustee | November 24, 2008 | ||
/s/ Patrick Carroll | Chief Financial Officer, Executive Vice President and Treasurer | November 24, 2008 | ||
/s/ Paul R. Wood | Chief Accounting Officer, Vice President and Secretary | November 24, 2008 | ||
/s/ Clifford Broser | Trustee | November 24, 2008 | ||
/s/ Geoffrey Dohrmann | Trustee | November 24, 2008 |
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Signature | Capacity | Date | ||
/s/ Harold First | Trustee | November 24, 2008 | ||
/s/ Richard S. Frary | Trustee | November 24, 2008 | ||
/s/ Carl D. Glickman | Trustee | November 24, 2008 | ||
/s/ James Grosfeld | Trustee | November 24, 2008 | ||
/s/ Kevin W. Lynch | Trustee | November 24, 2008 |
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