Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LEXINGTON REALTY TRUST | |
Entity Central Index Key | 910,108 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned User | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 235,324,074 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period Ended Date | Sep. 30, 2015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Real estate, at cost | $ 3,586,435 | $ 3,671,560 |
Real estate - intangible assets | 669,341 | 705,566 |
Investments in real estate under construction | 155,546 | 106,238 |
Real estate, gross | 4,411,322 | 4,483,364 |
Less: accumulated depreciation and amortization | 1,153,841 | 1,196,114 |
Real estate, net | 3,257,481 | 3,287,250 |
Assets held for sale | 0 | 3,379 |
Cash and cash equivalents | 86,269 | 191,077 |
Restricted cash | 12,327 | 17,379 |
Investment in and advances to non-consolidated entities | 28,050 | 19,402 |
Deferred expenses, net | 62,225 | 65,860 |
Loans receivable, net | 95,806 | 105,635 |
Rent receivable – current | 9,896 | 6,311 |
Rent receivable – deferred | 78,957 | 61,372 |
Other assets | 21,614 | 20,229 |
Total assets | 3,652,625 | 3,777,894 |
Liabilities: | ||
Mortgages and notes payable | 804,238 | 945,216 |
Credit facility borrowings | 73,000 | 0 |
Term loans payable | 505,000 | 505,000 |
Senior notes payable | 497,879 | 497,675 |
Convertible notes payable | 12,128 | 15,664 |
Trust preferred securities | 129,120 | 129,120 |
Dividends payable | 45,307 | 42,864 |
Liabilities held for sale | 0 | 2,843 |
Accounts payable and other liabilities | 42,692 | 37,740 |
Accrued interest payable | 14,679 | 8,301 |
Deferred revenue - including below market leases, net | 43,521 | 68,215 |
Prepaid rent | 16,991 | 16,336 |
Total liabilities | $ 2,184,555 | $ 2,268,974 |
Commitments and contingencies | ||
Equity: | ||
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 235,179,131 and 233,278,037 shares issued and outstanding in 2015 and 2014, respectively | $ 24 | $ 23 |
Additional paid-in-capital | 2,779,836 | 2,763,374 |
Accumulated distributions in excess of net income | (1,422,417) | (1,372,051) |
Accumulated other comprehensive income (loss) | (6,216) | 404 |
Total shareholders’ equity | 1,445,243 | 1,485,766 |
Noncontrolling interests | 22,827 | 23,154 |
Total equity | 1,468,070 | 1,508,920 |
Total liabilities and equity | 3,652,625 | 3,777,894 |
Series C [Member] | Cumulative Convertible [Member] | ||
Equity: | ||
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding | $ 94,016 | $ 94,016 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Equity: | ||
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common shares, shares issued (in shares) | 235,179,131 | 233,278,037 |
Common shares, outstanding (in shares) | 235,179,131 | 233,278,037 |
Series C [Member] | Cumulative Convertible [Member] | ||
Equity: | ||
Preferred shares, liquidation preference | $ 96,770 | $ 96,770 |
Preferred shares, shares issued (in shares) | 1,935,400 | 1,935,400 |
Preferred shares, shares outstanding (in shares) | 1,935,400 | 1,935,400 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gross revenues: | ||||
Rental | $ 98,095 | $ 98,941 | $ 300,551 | $ 292,870 |
Tenant reimbursements | 7,343 | 7,631 | 23,662 | 23,165 |
Total gross revenues | 105,438 | 106,572 | 324,213 | 316,035 |
Expense applicable to revenues: | ||||
Depreciation and amortization | (39,712) | (39,022) | (121,795) | (114,732) |
Property operating | (13,484) | (15,504) | (45,600) | (46,634) |
General and administrative | (6,734) | (6,426) | (22,526) | (21,035) |
Non-operating income | 2,515 | 4,217 | 8,213 | 10,369 |
Interest and amortization expense | (21,931) | (24,321) | (68,273) | (73,456) |
Debt satisfaction gains (charges), net | (398) | (455) | 13,753 | (7,946) |
Impairment charges | (32,818) | (2,464) | (34,070) | (18,864) |
Gains on sales of properties | 1,733 | 0 | 23,307 | 0 |
Income (loss) before provision for income taxes, equity in earnings of non-consolidated entities and discontinued operations | (5,391) | 22,597 | 77,222 | 43,737 |
Provision for income taxes | (75) | (72) | (464) | (947) |
Equity in earnings of non-consolidated entities | 266 | 173 | 938 | 246 |
Income (loss) from continuing operations | (5,200) | 22,698 | 77,696 | 43,036 |
Discontinued operations: | ||||
Income from discontinued operations | 0 | 1,322 | 109 | 5,601 |
Provision for income taxes | 0 | (14) | (4) | (50) |
Debt satisfaction charges, net | 0 | 0 | 0 | (299) |
Gains on sales of properties | 0 | 18,542 | 1,577 | 22,052 |
Impairment charges | 0 | (371) | 0 | (11,062) |
Total discontinued operations | 0 | 19,479 | 1,682 | 16,242 |
Net income (loss) | (5,200) | 42,177 | 79,378 | 59,278 |
Less net income attributable to noncontrolling interests | (784) | (1,772) | (2,525) | (3,537) |
Net income (loss) attributable to Lexington Realty Trust shareholders | (5,984) | 40,405 | 76,853 | 55,741 |
Allocation to participating securities | (72) | (112) | (264) | (399) |
Net income (loss) attributable to common shareholders | $ (7,629) | $ 38,720 | $ 71,871 | $ 50,624 |
Income (loss) per common share – basic: | ||||
Income (loss) from continuing operations (in USD per share) | $ (0.03) | $ 0.09 | $ 0.30 | $ 0.15 |
Income (loss) from discontinued operations (in USD per share) | 0 | 0.08 | 0.01 | 0.07 |
Net income (loss) attributable to common shareholders (USD per share) | $ (0.03) | $ 0.17 | $ 0.31 | $ 0.22 |
Weighted-average common shares outstanding – basic (in shares) | 234,018,062 | 229,463,522 | 233,457,400 | 228,337,871 |
Income (loss) per common share – diluted: | ||||
Income from continuing operations (USD per share) | $ (0.03) | $ 0.09 | $ 0.30 | $ 0.15 |
Income (loss) from discontinued operations (USD per share) | 0 | 0.08 | 0.01 | 0.07 |
Net income (loss) attributable to common shareholders (USD per share) | $ (0.03) | $ 0.17 | $ 0.31 | $ 0.22 |
Weighted-average common shares outstanding – diluted (in shares) | 234,018,062 | 229,922,110 | 233,776,838 | 228,830,020 |
Amounts attributable to common shareholders: | ||||
Income (loss) from continuing operations | $ (7,629) | $ 20,151 | $ 70,189 | $ 35,330 |
Income from discontinued operations | 0 | 18,569 | 1,682 | 15,294 |
Net income (loss) attributable to common shareholders | (7,629) | 38,720 | 71,871 | 50,624 |
Series C [Member] | ||||
Discontinued operations: | ||||
Dividends attributable to preferred shares – Series C | $ (1,573) | $ (1,573) | $ (4,718) | $ (4,718) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (5,200) | $ 42,177 | $ 79,378 | $ 59,278 |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on interest rate swaps, net | (3,990) | 3,371 | (6,620) | (1,134) |
Other comprehensive income (loss) | (3,990) | 3,371 | (6,620) | (1,134) |
Comprehensive income (loss) | (9,190) | 45,548 | 72,758 | 58,144 |
Comprehensive income attributable to noncontrolling interests | (784) | (1,772) | (2,525) | (3,537) |
Comprehensive income (loss) attributable to Lexington Realty Trust shareholders | $ (9,974) | $ 43,776 | $ 70,233 | $ 54,607 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Shares [Member] | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Distributions in Excess of Net Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interests [Member] |
Beginning Balance at Dec. 31, 2013 | $ 1,539,483 | $ 94,016 | $ 23 | $ 2,717,787 | $ (1,300,527) | $ 4,439 | $ 23,745 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares upon conversion of convertible notes | 4,834 | 4,834 | |||||
Redemption of noncontrolling OP units | (1,962) | (950) | (1,012) | ||||
Issuance of common shares and deferred compensation amortization, net | 25,594 | 25,594 | |||||
Acquisition of consolidated joint venture partner's equity interest | (2,100) | (2,262) | 162 | ||||
Dividends/distributions | (124,018) | (121,137) | (2,881) | ||||
Net income (loss) | 59,278 | 55,741 | 3,537 | ||||
Other comprehensive loss | (1,134) | (1,134) | |||||
Ending Balance at Sep. 30, 2014 | 1,499,975 | 94,016 | 23 | 2,747,265 | (1,368,185) | 3,305 | 23,551 |
Beginning Balance at Dec. 31, 2014 | 1,508,920 | 94,016 | 23 | 2,763,374 | (1,372,051) | 404 | 23,154 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares upon conversion of convertible notes | 3,630 | 3,630 | |||||
Repurchase of common shares | (11,019) | (11,019) | |||||
Issuance of common shares and deferred compensation amortization, net | 23,852 | 1 | 23,851 | ||||
Acquisition of consolidated joint venture partner's equity interest | (1,234) | (1,247) | 13 | ||||
Dividends/distributions | (128,837) | (125,972) | (2,865) | ||||
Net income (loss) | 79,378 | 76,853 | 2,525 | ||||
Other comprehensive loss | (6,620) | (6,620) | |||||
Ending Balance at Sep. 30, 2015 | $ 1,468,070 | $ 94,016 | $ 24 | $ 2,779,836 | $ (1,422,417) | $ (6,216) | $ 22,827 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities: | $ 181,475 | $ 165,547 |
Cash flows from investing activities: | ||
Acquisition of real estate, including intangible assets | (197,926) | (51,962) |
Investment in real estate under construction | (94,287) | (106,502) |
Capital expenditures | (18,744) | (9,434) |
Net proceeds from sale of properties | 156,475 | 85,115 |
Principal payments received on loans receivable | 4,334 | 11,496 |
Investment in loans receivable | (10,267) | (40,248) |
Investments in non-consolidated entities | (10,322) | 0 |
Distributions from non-consolidated entities in excess of accumulated earnings | 1,171 | 879 |
Increase in deferred leasing costs | (4,242) | (8,414) |
Change in escrow deposits and restricted cash | 3,596 | (42,579) |
Real estate deposits, net | (2,634) | 1,332 |
Net cash used in investing activities | (172,846) | (160,317) |
Cash flows from financing activities: | ||
Dividends to common and preferred shareholders | (123,529) | (118,840) |
Retirement of convertible notes | (529) | (62) |
Principal amortization payments | (26,760) | (28,303) |
Principal payments on debt, excluding normal amortization | (106,956) | (163,267) |
Change in credit facility borrowings, net | 73,000 | (48,000) |
Proceeds from senior notes | 0 | 249,708 |
Proceeds from term loans | 0 | 99,000 |
Increase in deferred financing costs | (7,339) | (3,402) |
Proceeds of mortgages and notes payable | 80,843 | 27,790 |
Change in restricted cash | (1,573) | 0 |
Cash distributions to noncontrolling interests | (2,865) | (2,881) |
Purchase of noncontrolling interest | (4,022) | (2,100) |
Redemption of noncontrolling interests | 0 | (1,962) |
Issuance of common shares, net | 17,312 | 19,165 |
Repurchase of common shares | (11,019) | 0 |
Net cash provided by (used in) financing activities | (113,437) | 26,846 |
Change in cash and cash equivalents | (104,808) | 32,076 |
Cash and cash equivalents, at beginning of period | 191,077 | 77,261 |
Cash and cash equivalents, at end of period | $ 86,269 | $ 109,337 |
The Company and Financial State
The Company and Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Financial Statement Presentation | The Company and Financial Statement Presentation Lexington Realty Trust (the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a diversified portfolio of equity and debt investments in single-tenant commercial properties and land. A majority of these properties and all land interests are subject to net or similar leases, where the tenant bears all or substantially all of the costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. As of September 30, 2015 , the Company had ownership interests in approximately 215 consolidated real estate properties, located in 40 states. The properties in which the Company has an interest are leased to tenants in various industries, including service, automotive, technology, transportation/logistics and finance/insurance. 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 in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities. The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, and (4) investments in joint ventures. On December 30, 2013, another operating partnership, Lepercq Corporate Income Fund II L.P. (“LCIF II”), was merged with and into LCIF with LCIF as the surviving entity. References to “OP Units” refer to units of limited partner interests in LCIF and LCIF II, as applicable. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an investment and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. The assets and credit of a property owner subsidiary or a lender subsidiary are not available to satisfy the debt and other obligations of any other person, including any other property owner subsidiary, or lender subsidiary or any other affiliate. Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries and its partnerships and joint ventures which it controls (1) through voting rights or similar rights or (2) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP. The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and nine months ended September 30, 2015 have been prepared by the Company in accordance with GAAP for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2014 filed with the SEC on February 26, 2015 (“Annual Report”). Use of Estimates. Management has made a number of significant 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 GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments and the useful lives of long-lived assets. Actual results could differ materially from those estimates. Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. Acquisition, Development and Construction Arrangements . The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. Reclassifications. Certain amounts included in the 2014 unaudited condensed consolidated financial statements have been reclassified, primarily relating to discontinued operations, to conform to the 2015 presentation. Recently Issued Accounting Guidance. In April 2014, the FASB issued Accounting Standards Update No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations and improves financial statement disclosures. Under this guidance, only disposals representing a strategic shift in operations that have a major effect on an organization's operations and financial results should be presented as discontinued operations. The Company adopted this guidance effective January 1, 2015. The guidance requires the Company to continue to classify any property disposal or property classified as held for sale as of December 31, 2014 as discontinued operations prospectively. Therefore, the revenues and expenses related to these properties are presented as discontinued operations as of September 30, 2015 . The Company did not classify any additional properties as discontinued operations subsequent to December 31, 2014 as the dispositions did not represent a strategic shift in operations. The implementation of this guidance did not have a material impact on the Company's financial position, results of operations or cash flows. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by Accounting Standards Update No. 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, which provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. In accordance with the guidance, all legal entities are subject to reevaluation under the revised consolidation model. The guidance is effective in the first quarter of 2016 and early adoption is allowed. The Company is currently evaluating the impact of the adoption of this new guidance on its consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. The guidance is effective in the first quarter of 2016 and requires retrospective application. The Company is currently evaluating the impact of the adoption of this new guidance on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A significant portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2015 and 2014 : Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 BASIC Income (loss) from continuing operations attributable to common shareholders $ (7,629 ) $ 20,151 $ 70,189 $ 35,330 Income from discontinued operations attributable to common shareholders — 18,569 1,682 15,294 Net income (loss) attributable to common shareholders $ (7,629 ) $ 38,720 $ 71,871 $ 50,624 Weighted-average number of common shares outstanding 234,018,062 229,463,522 233,457,400 228,337,871 Income (loss) per common share: Income (loss) from continuing operations $ (0.03 ) $ 0.09 $ 0.30 $ 0.15 Income from discontinued operations — 0.08 0.01 0.07 Net income (loss) attributable to common shareholders $ (0.03 ) $ 0.17 $ 0.31 $ 0.22 DILUTED Income (loss) from continuing operations attributable to common shareholders - basic $ (7,629 ) $ 20,151 $ 70,189 $ 35,330 Impact of assumed conversions — — — — Income (loss) from continuing operations attributable to common shareholders (7,629 ) 20,151 70,189 35,330 Income from discontinued operations attributable to common shareholders - basic — 18,569 1,682 15,294 Impact of assumed conversions — — — — Income from discontinued operations attributable to common shareholders — 18,569 1,682 15,294 Net income (loss) attributable to common shareholders $ (7,629 ) $ 38,720 $ 71,871 $ 50,624 Weighted-average common shares outstanding - basic 234,018,062 229,463,522 233,457,400 228,337,871 Effect of dilutive securities: Share options — 458,588 319,438 492,149 Weighted-average common shares outstanding 234,018,062 229,922,110 233,776,838 228,830,020 Income (loss) per common share: Income (loss) from continuing operations $ (0.03 ) $ 0.09 $ 0.30 $ 0.15 Income from discontinued operations — 0.08 0.01 0.07 Net income (loss) attributable to common shareholders $ (0.03 ) $ 0.17 $ 0.31 $ 0.22 For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods. |
Investments in Real Estate and
Investments in Real Estate and Real Estate Under Construction | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Investments in Real Estate and Real Estate Under Construction | Investments in Real Estate and Real Estate Under Construction The Company, through property owner subsidiaries, completed the following acquisitions, each of which is subject to a lease having a term in excess of ten years (an “LTL”), during the nine months ended September 30, 2015 : Property Type Location Acquisition/Completion Date Initial Cost Basis Lease Expiration Land and Land Estate Building and Improvements Lease in-place Value Intangible LTL - Land/Infrastructure Venice, FL January 2015 $ 16,850 01/2055 $ 4,696 $ 11,753 $ 401 LTL - Office Auburn Hills, MI March 2015 $ 40,025 03/2029 $ 4,416 $ 30,012 $ 5,597 LTL - Industrial Houston, TX March 2015 $ 28,650 03/2035 $ 4,674 $ 19,540 $ 4,436 LTL - Industrial Brookshire, TX March 2015 $ 22,450 03/2035 $ 2,388 $ 16,614 $ 3,448 LTL - Industrial Canton, MS March 2015 $ 89,300 02/2027 $ 5,077 $ 71,289 $ 12,934 LTL - Industrial Thomson, GA May 2015 $ 10,144 05/2030 $ 909 $ 7,746 $ 1,489 LTL - Industrial Oak Creek, WI July 2015 $ 22,139 06/2035 $ 3,015 $ 15,300 $ 3,824 $ 229,558 $ 25,175 $ 172,254 $ 32,129 The Company recognized aggregate transaction costs of $1,119 and $1,509 for the nine months ended September 30, 2015 and 2014 , respectively, which are included as property operating expenses within the Company's unaudited condensed consolidated statements of operations. The Company is engaged in various forms of build-to-suit development activities. The Company, through lender subsidiaries and property owner subsidiaries, may enter into the following acquisition, development and construction arrangements: (1) lend funds to construct build-to-suit projects subject to a single-tenant lease and agree to purchase the properties upon completion of construction and commencement of a single-tenant lease, (2) hire developers to construct built-to-suit projects on owned properties leased to single tenants, (3) fund the construction of build-to-suit projects on owned properties pursuant to the terms in single-tenant lease agreements or (4) enter into purchase and sale agreements with developers to acquire single-tenant build-to-suit properties upon completion. As of September 30, 2015 , the Company had the following development arrangements outstanding: Location Property Type Square Feet Expected Maximum Commitment/Contribution Lease Term (Years) Estimated Completion/Acquisition Date Richmond, VA LTL - Office 330,000 $ 110,137 15 4Q 15 Anderson, SC LTL - Industrial 1,325,000 $ 70,012 20 2Q 16 Lake Jackson, TX LTL - Office 664,000 $ 166,164 20 4Q 16 2,319,000 $ 346,313 The Company has variable interests in certain developer entities constructing the facilities but is not the primary beneficiary of the entities as the Company does not have a controlling financial interest in such entities. As of September 30, 2015 and December 31, 2014 , the Company's aggregate investment in development arrangements was $155,546 and $106,238 , respectively, which includes $6,359 and $2,828 of capitalized interest, respectively, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets. In addition, the Company has committed to acquire the following properties: Location Property Type Estimated Acquisition Cost Estimated Acquisition Date Lease Term (Years) Richland, WA LTL - Industrial $ 152,000 4Q 15 20 Detroit, MI LTL - Industrial $ 29,680 1Q 16 20 $ 181,680 The Company can give no assurances that any of these acquisitions under contract or build-to-suit transactions will be consummated. |
Property Dispositions, Disconti
Property Dispositions, Discontinued Operations and Real Estate Impairment | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Dispositions, Discontinued Operations and Real Estate Impairment | Property Dispositions, Discontinued Operations and Real Estate Impairment During the nine months ended September 30, 2015 , the Company disposed of its interests in certain properties to unrelated third parties for a gross disposition price of $217,675 and conveyed two vacant office properties, along with their escrow deposits, in satisfaction of a $30,293 non-recourse secured mortgage loan. In addition, during the nine months ended September 30, 2015 , the Company disposed of a vacant retail property, with a zero basis, upon the expiration of the related ground lease. During the nine months ended September 30, 2014 , the Company disposed of its interest in certain properties to unrelated third parties for a gross disposition price of $105,180 and conveyed one property along with its escrow deposits in satisfaction of the $9,900 non-recourse secured mortgage loan. During the nine months ended September 30, 2015 and 2014 , the Company recognized aggregate gains on sales of properties of $24,884 and $22,052 , respectively, and impairment charges on properties sold of $32,931 and $11,062 , respectively. In addition, during the nine months ended September 30, 2015 and 2014 , the Company recognized aggregate net gains (charges) on debt satisfaction of $10,106 and $(299) , respectively, relating to disposed properties. The results of operations for properties disposed of in 2015, that were not classified as held for sale as of December 31, 2014 , are included within continuing operations in the unaudited condensed consolidated financial statements in accordance with recent guidance issued by the FASB. As of September 30, 2015 , the Company had no properties classified as held for sale. The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant reduction in utilization of a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the nine months ended September 30, 2015 and 2014 , in addition to the impairment charges discussed above, the Company recognized impairment charges of $1,139 and $18,864 , respectively. The Company determined that the expected undiscounted cash flows based upon the revised estimated holding periods of certain assets were below the current carrying values. Accordingly, the Company reduced the carrying value of the properties to their estimated then fair values of $475 and $5,574 , respectively. |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable As of September 30, 2015 and December 31, 2014 , the Company's loans receivable were comprised primarily of first and second mortgage loans and mezzanine loans on real estate. The following is a summary of our loans receivable as of September 30, 2015 and December 31, 2014 : Loan carrying-value (1) Loan 9/30/2015 12/31/2014 Interest Rate Maturity Date Westmont, IL (2) $ — $ 12,152 6.45 % 10/2015 Southfield, MI (3) — 3,296 4.55 % 02/2015 Kennewick, WA 85,451 85,254 9.00 % 05/2022 Oklahoma City, OK (4) 8,420 — 11.50 % 12/2015 Austin, TX (5) — 2,800 16.00 % 10/2018 Other 1,935 2,133 8.00 % 2021-2022 $ 95,806 $ 105,635 (1) Loan carrying value includes accrued interest and is net of origination costs and loan losses, if any. (2) In July 2015, the Company acquired the office property collateral and $2,521 of cash collateral and received $1,400 in full settlement of its claim against the borrower. During the nine months ended September 30, 2015 and 2014 , the Company recognized $0 and $1,284 of interest income relating to the impaired loan, respectively. (3) In April 2015, the Company acquired the office property collateral from the borrower. In 2015, the Company recognized $14 of interest income relating to the impaired loan. (4) In June 2015, the Company loaned a tenant-in-common $8,420 . The loan is secured by the tenant-in-common's interest in an office property, in which the Company has a 40% interest. (5) In June 2015, the borrower satisfied the loan with a $3,545 payment, which included yield maintenance. Prior to December 31, 2014, the Company had two types of financing receivables: loans receivable secured by commercial real estate and a capitalized financing lease. The Company determined that its financing receivables operated within one portfolio segment as they were within the same industry and used the same impairment methodology. The capitalized financing lease, for a commercial office property located in Greenville, South Carolina, was sold in December 2014. In addition, the Company assesses all financing receivables for impairment, when warranted, based on an individual analysis of each receivable. The Company's financing receivables operate within one class of financing receivables as these assets (1) are collateralized by commercial real estate and (2) similar metrics are used to monitor the risk and performance of these assets. The Company's management uses credit quality indicators to monitor financing receivables such as quality of collateral, the underlying tenant's credit rating and collection experience. As of September 30, 2015 , the financing receivables were performing as anticipated and there were no significant delinquent amounts outstanding. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the Company's assets and liabilities from continuing operations measured at fair value on a recurring and non-recurring basis as of September 30, 2015 and December 31, 2014 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description September 30, 2015 (Level 1) (Level 2) (Level 3) Impaired real estate assets* $ 475 $ — $ — $ 475 Interest rate swap liabilities $ (6,216 ) $ — $ (6,216 ) $ — Balance Fair Value Measurements Using Description December 31, 2014 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 1,153 $ — $ 1,153 $ — Impaired real estate assets* $ 25,679 $ — $ — $ 25,679 Impaired loan receivable* $ 3,296 $ — $ — $ 3,296 Interest rate swap liabilities $ (749 ) $ — $ (749 ) $ — *Represents a non-recurring fair value measurement. The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of September 30, 2015 and December 31, 2014 . As of September 30, 2015 As of December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Assets Loans Receivable (Level 3) $ 95,806 $ 95,535 $ 105,635 $ 105,061 Liabilities Debt (Level 3) $ 2,021,365 $ 2,007,831 $ 2,092,675 $ 2,091,364 The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2015 and December 31, 2014 , the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps have been classified in Level 2 of the fair value hierarchy. The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sales data for similar assets or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company underestimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or overestimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated. The Company estimates the fair values of its loans receivable by using an estimated discounted cash flow analysis and/or the estimated value of the underlying collateral using Level 3 inputs consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use. The fair value of the Company's debt is estimated by using a discounted cash flow analysis using Level 3 inputs, based upon estimates of market interest rates. Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts. Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable . The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments. |
Investment in and Advances to N
Investment in and Advances to Non-Consolidated Entities | 9 Months Ended |
Sep. 30, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in and Advances to Non-Consolidated Entities | Investment in and Advances to Non-Consolidated Entities As of September 30, 2015 , the Company had ownership interests ranging from 15% to 40% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $47,763 at September 30, 2015 (the Company's proportionate share was $8,619 ) with rates ranging from 3.7% to 4.7% . In June 2015, the Company invested $5,613 in the Oklahoma City tenant-in-common. The Company's contribution, together with the other tenant-in-common's contribution, was used to satisfy the related maturing mortgage loan. In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of September 30, 2015 , the Company had a 25% interest in the joint venture. The anticipated total construction cost is $86,491 . The Company may provide construction financing to the joint venture up to $56,686 . Upon completion, the property will be net leased for a 20 -year term. During 2014, the Company recognized an aggregate $930 other-than-temporary impairment charge on a non-consolidated office property joint venture due to a change in the Company's estimate of net proceeds upon liquidation of the joint venture. In August 2013, the Company invested $5,000 in a joint venture, which acquired the fee interest and the related office building improvements of a property in Baltimore, Maryland. Beginning in October 2015, the Company has the right to require the redemption of its interest in the joint venture in exchange for a distribution to the Company of the fee interest, which was leased in 2013 for a 99 -year term to the joint venture. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company, through property owner subsidiaries, had outstanding non-recourse secured mortgages and notes payable of $804,238 and $945,216 as of September 30, 2015 and December 31, 2014 , respectively. Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at September 30, 2015 and 2.2% to 8.5% at December 31, 2014 and the mortgages and notes payables mature between 2016 and 2028 as of September 30, 2015 . The weighted-average interest rate was 5.0% and 5.2% at September 30, 2015 and December 31, 2014 , respectively. The Company had the following senior notes outstanding as of September 30, 2015 : Issue Date Face Amount Interest Rate Maturity Date Issue Price May 2014 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 4.25 % June 2023 99.026 % $ 500,000 Each series of the senior notes is unsecured and pays interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. In September 2015, the Company entered into a new $905,000 unsecured credit agreement with KeyBank National Association as agent, which replaced the Company's existing revolving credit facility and term loans. With lender approval, the Company can increase the size of the new facility to an aggregate $1,810,000 . A summary of the significant terms are as follows: Prior New Prior Current $400,000 Revolving Credit Facility (1) 02/2017 08/2019 LIBOR + 1.15% LIBOR + 1.00% $250,000 Term Loan (2) 02/2018 08/2020 LIBOR + 1.35% LIBOR + 1.10% $255,000 Term Loan (3) 01/2019 01/2021 LIBOR + 1.75% LIBOR + 1.10% (1) Maturity date can be extended to 08/2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% (previously 0.95% to 1.725% ). At September 30, 2015, the unsecured revolving credit facility had $73,000 outstanding, outstanding letters of credit of $10,000 and availability of $317,000 , subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% (previously 1.10% to 2.10% ). The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on the $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% (previously 1.50% to 2.25% ). The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on the $255,000 of outstanding LIBOR-based borrowings. The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at September 30, 2015 . During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes due 2030. The notes pay interest semi-annually in arrears and mature in January 2030 . The holders of the notes may require the Company to repurchase their notes in January 2017 , January 2020 and January 2025 for cash equal to 100% of the notes to be repurchased, plus any accrued and unpaid interest. The Company may not redeem any notes prior to January 2017 , except to preserve its REIT status. The notes have a current conversion rate of 153.8603 common shares per one thousand principal amount of the notes, representing a conversion price of approximately $6.50 per common share. The conversion rate is subject to adjustment under certain circumstances, including increases in the Company's dividend rate above a certain threshold and the issuance of stock dividends. The notes are convertible by the holders under certain circumstances for cash, common shares or a combination of cash and common shares at the Company's election. The notes are convertible prior to the close of business on the second business day immediately preceding the stated maturity date, at any time beginning in January 2029 and also upon the occurrence of specified events. During the nine months ended September 30, 2015 and 2014 , $3,828 and $4,205 , respectively, aggregate principal amount of the notes were converted for 519,664 and 624,103 common shares, respectively, and aggregate cash payments of $529 and $62 , plus accrued and unpaid interest, respectively. These conversions resulted in aggregate debt satisfaction charges of $476 and $933 for the nine months ended September 30, 2015 and 2014 , respectively. Below is a summary of additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030. 6.00% Convertible Guaranteed Notes due 2030 Balance Sheets: September 30, 2015 December 31, 2014 Principal amount of debt component $ 12,400 $ 16,228 Unamortized discount (272 ) (564 ) Carrying amount of debt component $ 12,128 $ 15,664 Carrying amount of equity component $ (34,784 ) $ (33,160 ) Effective interest rate 7.7 % 8.1 % Period through which discount is being amortized, put date 01/2017 01/2017 Aggregate if-converted value in excess of aggregate principal amount $ 3,054 $ 10,432 Three months ended September 30, Nine months ended September 30, Statements of Operations: 2015 2014 2015 2014 6.00% Convertible Guaranteed Notes Coupon interest $ 185 $ 375 $ 577 $ 1,196 Discount amortization 53 107 175 340 $ 238 $ 482 $ 752 $ 1,536 During the nine months ended September 30, 2015 and 2014 , in connection with the satisfaction of mortgage notes other than those disclosed elsewhere in these financial statements, the Company had debt satisfaction gains (charges), net of $4,123 and $(7,013) , respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Risk Management Objective of Using Derivatives . The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings. Cash Flow Hedges of Interest Rate Risk . The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the nine months ended September 30, 2015 and 2014 . The Company has designated the interest-rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rate on $505,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the term loans. During the next 12 months, the Company estimates that an additional $4,422 will be reclassified as an increase to interest expense. As of September 30, 2015 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 10 $505,000 The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 . As of September 30, 2015 As of December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 1,153 Interest Rate Swap Liability Accounts Payable and Other Liabilities $ (6,216 ) Accounts Payable and Other Liabilities $ (749 ) The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2015 and 2014 . Derivatives in Cash Flow Amount of Loss Recognized Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified Hedging Relationships 2015 2014 2015 2014 Interest Rate Swaps $ (10,742 ) $ (5,237 ) Interest expense $ 4,122 $ 4,103 The Company's agreements with swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of September 30, 2015 , the Company has not posted any collateral related to the agreements. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the nine months ended September 30, 2015 and 2014 , no single tenant represented greater than 10% of rental revenues. Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Equity | Equity Shareholders' Equity. During the nine months ended September 30, 2015 and 2014 , the Company issued 1,845,617 and 1,853,988 common shares, respectively, under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $17,415 and $18,758 , respectively. During the nine months ended September 30, 2015 , the Company granted to certain executive officers performance-based shares, which vest based on the Company’s total shareholder return growth after a three -year measurement period relative to an index ( 321,018 shares) and its peers ( 321,011 shares). Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. The fair value of the grants was determined at the grant date using a multifactor Monte Carlo simulation model for a fair value price of $6.66 per share for 321,011 shares and $6.86 per share for 321,018 shares. In addition, during the nine months ended September 30, 2015 , the Company granted 170,650 non-vested common shares to certain employees with a grant date fair value of $1,916 . The non-vested common shares vest ratably over a three -year service period. Compensation expense is recognized over the requisite service period for all grants. During the nine months ended September 30, 2015 and 2014 , the Company issued an aggregate of 20,400 and 14,000 , respectively, fully vested common shares to the non-management members of the Company's Board of Trustees with a grant date fair value of $209 and $142 , respectively. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. During the three months ended September 30, 2015, the Company repurchased 1,306,300 common shares at an average price of $8.42 per common share. Accumulated other comprehensive income (loss) as of September 30, 2015 and December 31, 2014 represented $(6,216) and $404 , respectively, of unrealized gain (loss) on interest rate swaps, net. Changes in Accumulated Other Comprehensive Income (Loss) Gains and Losses on Cash Flow Hedges Balance December 31, 2014 $ 404 Other comprehensive loss before reclassifications (10,742 ) Amounts of loss reclassified from accumulated other comprehensive income to interest expense 4,122 Balance September 30, 2015 $ (6,216 ) Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments. During the nine months ended September 30, 2014 , in connection with the merger of LCIF II with and into LCIF, former LCIF II partners representing 170,193 OP units elected or were deemed to elect to receive $1,962 in aggregate cash for such OP units. In addition, during the nine months ended September 30, 2014 , 11,186 common shares were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $56 . As of September 30, 2015 , there were approximately 3,422,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with their respective partnership agreements. To 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. The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests: Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests Nine Months ended September 30, 2015 2014 Net income attributable to Lexington Realty Trust shareholders $ 76,853 $ 55,741 Transfers from noncontrolling interests: Decrease in additional paid-in-capital for redemption of noncontrolling OP units — (950 ) Change from net income attributable to shareholders and transfers from noncontrolling interests $ 76,853 $ 54,791 In July 2015 and 2014, the Company acquired its consolidated joint partners' interests in an office property in Philadelphia, Pennsylvania for $4,022 and $2,100 , respectively, raising the Company's ownership to 100% . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In connection with efforts to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provides that the Company will reimburse investors providing the funds for such financing if the following occurs: (1) the joint venture receives such funds, (2) the USCIS denies the financing solely because the project is not permitted under the EB-5 visa program, and (3) the joint venture fails to return such funds. As of September 30, 2015, the joint venture has not received any such funds and the Company has not recorded any liability as it relates to this guaranty. The maximum amount of funds that would be subject to the guaranty obligation is $18,000 . There were no other related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In addition to the commitments and contingencies disclosed elsewhere, including in Note 12 above, and previously disclosed, the Company has the following commitments and contingencies. The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. During 2014, the Company commenced the expansion of the Byhalia, Mississippi property for an estimated cost of $15,300 . The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries. From time to time, the Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations. GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015) On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey. The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term. The lender seeks approximately $15,500 in order to satisfy the outstanding amount of the loan, plus reasonable attorney’s fees and other costs and disbursements related thereto. The lender claims that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The Company intends to vigorously defend the lender’s claim. The Company filed a motion to dismiss on October 19, 2015. |
Supplemental Disclosure of Stat
Supplemental Disclosure of Statement of Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information In addition to disclosures discussed elsewhere, during the nine months ended September 30, 2015 and 2014 , the Company paid $62,914 and $69,936 , respectively, for interest and $788 and $1,424 , respectively, for income taxes. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to September 30, 2015 and in addition to disclosures elsewhere in the unaudited condensed consolidated financial statements, the Company: • repurchased 288,344 common shares for $2,320 ; • entered into an agreement for an office property build-to-suit project in Charlotte, North Carolina, subject to a 15 -year net lease at an 8.3% initial capitalization rate and 2.0% annual escalations, for a maximum commitment of $62,445 , which is expected to be completed in the first quarter of 2017; • borrowed $152,000 under its unsecured revolving credit facility in anticipation of the acquisition of the Richland, Washington industrial build-to-suit facility; and • locked a 4.0% fixed interest-rate on a 10 -year, $ 110,000 non-recourse mortgage financing for the Richland, Washington property discussed above; however, no assurances can be given that such acquisition or financing will be consummated. |
The Company and Financial Sta23
The Company and Financial Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and consolidation | Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries and its partnerships and joint ventures which it controls (1) through voting rights or similar rights or (2) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP. The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and nine months ended September 30, 2015 have been prepared by the Company in accordance with GAAP for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2014 filed with the SEC on February 26, 2015 (“Annual Report”). |
Use of estimates | Use of Estimates. Management has made a number of significant 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 GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments and the useful lives of long-lived assets. Actual results could differ materially from those estimates. |
Fair value measurements | Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. |
Acquisition, development and construction arrangements | Acquisition, Development and Construction Arrangements . The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. |
Reclassifications | Reclassifications. Certain amounts included in the 2014 unaudited condensed consolidated financial statements have been reclassified, primarily relating to discontinued operations, to conform to the 2015 presentation. |
Recently issued accounting guidance | Recently Issued Accounting Guidance. In April 2014, the FASB issued Accounting Standards Update No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations and improves financial statement disclosures. Under this guidance, only disposals representing a strategic shift in operations that have a major effect on an organization's operations and financial results should be presented as discontinued operations. The Company adopted this guidance effective January 1, 2015. The guidance requires the Company to continue to classify any property disposal or property classified as held for sale as of December 31, 2014 as discontinued operations prospectively. Therefore, the revenues and expenses related to these properties are presented as discontinued operations as of September 30, 2015 . The Company did not classify any additional properties as discontinued operations subsequent to December 31, 2014 as the dispositions did not represent a strategic shift in operations. The implementation of this guidance did not have a material impact on the Company's financial position, results of operations or cash flows. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by Accounting Standards Update No. 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, which provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. In accordance with the guidance, all legal entities are subject to reevaluation under the revised consolidation model. The guidance is effective in the first quarter of 2016 and early adoption is allowed. The Company is currently evaluating the impact of the adoption of this new guidance on its consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. The guidance is effective in the first quarter of 2016 and requires retrospective application. The Company is currently evaluating the impact of the adoption of this new guidance on its consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2015 and 2014 : Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 BASIC Income (loss) from continuing operations attributable to common shareholders $ (7,629 ) $ 20,151 $ 70,189 $ 35,330 Income from discontinued operations attributable to common shareholders — 18,569 1,682 15,294 Net income (loss) attributable to common shareholders $ (7,629 ) $ 38,720 $ 71,871 $ 50,624 Weighted-average number of common shares outstanding 234,018,062 229,463,522 233,457,400 228,337,871 Income (loss) per common share: Income (loss) from continuing operations $ (0.03 ) $ 0.09 $ 0.30 $ 0.15 Income from discontinued operations — 0.08 0.01 0.07 Net income (loss) attributable to common shareholders $ (0.03 ) $ 0.17 $ 0.31 $ 0.22 DILUTED Income (loss) from continuing operations attributable to common shareholders - basic $ (7,629 ) $ 20,151 $ 70,189 $ 35,330 Impact of assumed conversions — — — — Income (loss) from continuing operations attributable to common shareholders (7,629 ) 20,151 70,189 35,330 Income from discontinued operations attributable to common shareholders - basic — 18,569 1,682 15,294 Impact of assumed conversions — — — — Income from discontinued operations attributable to common shareholders — 18,569 1,682 15,294 Net income (loss) attributable to common shareholders $ (7,629 ) $ 38,720 $ 71,871 $ 50,624 Weighted-average common shares outstanding - basic 234,018,062 229,463,522 233,457,400 228,337,871 Effect of dilutive securities: Share options — 458,588 319,438 492,149 Weighted-average common shares outstanding 234,018,062 229,922,110 233,776,838 228,830,020 Income (loss) per common share: Income (loss) from continuing operations $ (0.03 ) $ 0.09 $ 0.30 $ 0.15 Income from discontinued operations — 0.08 0.01 0.07 Net income (loss) attributable to common shareholders $ (0.03 ) $ 0.17 $ 0.31 $ 0.22 |
Investments in Real Estate an25
Investments in Real Estate and Real Estate Under Construction (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Schedule of acquired properties | The Company, through property owner subsidiaries, completed the following acquisitions, each of which is subject to a lease having a term in excess of ten years (an “LTL”), during the nine months ended September 30, 2015 : Property Type Location Acquisition/Completion Date Initial Cost Basis Lease Expiration Land and Land Estate Building and Improvements Lease in-place Value Intangible LTL - Land/Infrastructure Venice, FL January 2015 $ 16,850 01/2055 $ 4,696 $ 11,753 $ 401 LTL - Office Auburn Hills, MI March 2015 $ 40,025 03/2029 $ 4,416 $ 30,012 $ 5,597 LTL - Industrial Houston, TX March 2015 $ 28,650 03/2035 $ 4,674 $ 19,540 $ 4,436 LTL - Industrial Brookshire, TX March 2015 $ 22,450 03/2035 $ 2,388 $ 16,614 $ 3,448 LTL - Industrial Canton, MS March 2015 $ 89,300 02/2027 $ 5,077 $ 71,289 $ 12,934 LTL - Industrial Thomson, GA May 2015 $ 10,144 05/2030 $ 909 $ 7,746 $ 1,489 LTL - Industrial Oak Creek, WI July 2015 $ 22,139 06/2035 $ 3,015 $ 15,300 $ 3,824 $ 229,558 $ 25,175 $ 172,254 $ 32,129 |
Schedule of acquisition development and construction arrangements outstanding | As of September 30, 2015 , the Company had the following development arrangements outstanding: Location Property Type Square Feet Expected Maximum Commitment/Contribution Lease Term (Years) Estimated Completion/Acquisition Date Richmond, VA LTL - Office 330,000 $ 110,137 15 4Q 15 Anderson, SC LTL - Industrial 1,325,000 $ 70,012 20 2Q 16 Lake Jackson, TX LTL - Office 664,000 $ 166,164 20 4Q 16 2,319,000 $ 346,313 |
Schedule of properties to be acquired | In addition, the Company has committed to acquire the following properties: Location Property Type Estimated Acquisition Cost Estimated Acquisition Date Lease Term (Years) Richland, WA LTL - Industrial $ 152,000 4Q 15 20 Detroit, MI LTL - Industrial $ 29,680 1Q 16 20 $ 181,680 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Summary of Loans Receivable | The following is a summary of our loans receivable as of September 30, 2015 and December 31, 2014 : Loan carrying-value (1) Loan 9/30/2015 12/31/2014 Interest Rate Maturity Date Westmont, IL (2) $ — $ 12,152 6.45 % 10/2015 Southfield, MI (3) — 3,296 4.55 % 02/2015 Kennewick, WA 85,451 85,254 9.00 % 05/2022 Oklahoma City, OK (4) 8,420 — 11.50 % 12/2015 Austin, TX (5) — 2,800 16.00 % 10/2018 Other 1,935 2,133 8.00 % 2021-2022 $ 95,806 $ 105,635 (1) Loan carrying value includes accrued interest and is net of origination costs and loan losses, if any. (2) In July 2015, the Company acquired the office property collateral and $2,521 of cash collateral and received $1,400 in full settlement of its claim against the borrower. During the nine months ended September 30, 2015 and 2014 , the Company recognized $0 and $1,284 of interest income relating to the impaired loan, respectively. (3) In April 2015, the Company acquired the office property collateral from the borrower. In 2015, the Company recognized $14 of interest income relating to the impaired loan. (4) In June 2015, the Company loaned a tenant-in-common $8,420 . The loan is secured by the tenant-in-common's interest in an office property, in which the Company has a 40% interest. (5) In June 2015, the borrower satisfied the loan with a $3,545 payment, which included yield maintenance. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Fair Value Measurement Inputs | The following tables present the Company's assets and liabilities from continuing operations measured at fair value on a recurring and non-recurring basis as of September 30, 2015 and December 31, 2014 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description September 30, 2015 (Level 1) (Level 2) (Level 3) Impaired real estate assets* $ 475 $ — $ — $ 475 Interest rate swap liabilities $ (6,216 ) $ — $ (6,216 ) $ — Balance Fair Value Measurements Using Description December 31, 2014 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 1,153 $ — $ 1,153 $ — Impaired real estate assets* $ 25,679 $ — $ — $ 25,679 Impaired loan receivable* $ 3,296 $ — $ — $ 3,296 Interest rate swap liabilities $ (749 ) $ — $ (749 ) $ — *Represents a non-recurring fair value measurement. |
Schedule of Carrying Amounts and Fair Value of Financial Instruments | The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of September 30, 2015 and December 31, 2014 . As of September 30, 2015 As of December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Assets Loans Receivable (Level 3) $ 95,806 $ 95,535 $ 105,635 $ 105,061 Liabilities Debt (Level 3) $ 2,021,365 $ 2,007,831 $ 2,092,675 $ 2,091,364 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Instrument Redemption | The Company had the following senior notes outstanding as of September 30, 2015 : Issue Date Face Amount Interest Rate Maturity Date Issue Price May 2014 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 4.25 % June 2023 99.026 % $ 500,000 |
Schedule of Line of Credit Facilities | A summary of the significant terms are as follows: Prior New Prior Current $400,000 Revolving Credit Facility (1) 02/2017 08/2019 LIBOR + 1.15% LIBOR + 1.00% $250,000 Term Loan (2) 02/2018 08/2020 LIBOR + 1.35% LIBOR + 1.10% $255,000 Term Loan (3) 01/2019 01/2021 LIBOR + 1.75% LIBOR + 1.10% (1) Maturity date can be extended to 08/2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% (previously 0.95% to 1.725% ). At September 30, 2015, the unsecured revolving credit facility had $73,000 outstanding, outstanding letters of credit of $10,000 and availability of $317,000 , subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% (previously 1.10% to 2.10% ). The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on the $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% (previously 1.50% to 2.25% ). The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on the $255,000 of outstanding LIBOR-based borrowings. |
Schedule of Long-term Debt Instruments | Below is a summary of additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030. 6.00% Convertible Guaranteed Notes due 2030 Balance Sheets: September 30, 2015 December 31, 2014 Principal amount of debt component $ 12,400 $ 16,228 Unamortized discount (272 ) (564 ) Carrying amount of debt component $ 12,128 $ 15,664 Carrying amount of equity component $ (34,784 ) $ (33,160 ) Effective interest rate 7.7 % 8.1 % Period through which discount is being amortized, put date 01/2017 01/2017 Aggregate if-converted value in excess of aggregate principal amount $ 3,054 $ 10,432 Three months ended September 30, Nine months ended September 30, Statements of Operations: 2015 2014 2015 2014 6.00% Convertible Guaranteed Notes Coupon interest $ 185 $ 375 $ 577 $ 1,196 Discount amortization 53 107 175 340 $ 238 $ 482 $ 752 $ 1,536 |
Derivatives and Hedging Activ29
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges | As of September 30, 2015 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 10 $505,000 |
Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 . As of September 30, 2015 As of December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 1,153 Interest Rate Swap Liability Accounts Payable and Other Liabilities $ (6,216 ) Accounts Payable and Other Liabilities $ (749 ) |
Effect of the Company's Derivative Financial Instruments on the Statements of Operation | The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2015 and 2014 . Derivatives in Cash Flow Amount of Loss Recognized Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified Hedging Relationships 2015 2014 2015 2014 Interest Rate Swaps $ (10,742 ) $ (5,237 ) Interest expense $ 4,122 $ 4,103 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) Gains and Losses on Cash Flow Hedges Balance December 31, 2014 $ 404 Other comprehensive loss before reclassifications (10,742 ) Amounts of loss reclassified from accumulated other comprehensive income to interest expense 4,122 Balance September 30, 2015 $ (6,216 ) |
Effects of Changes in the Company's Ownership Interests in Noncontrolling Interests | The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests: Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests Nine Months ended September 30, 2015 2014 Net income attributable to Lexington Realty Trust shareholders $ 76,853 $ 55,741 Transfers from noncontrolling interests: Decrease in additional paid-in-capital for redemption of noncontrolling OP units — (950 ) Change from net income attributable to shareholders and transfers from noncontrolling interests $ 76,853 $ 54,791 |
The Company and Financial Sta31
The Company and Financial Statement Presentation (Details) | Sep. 30, 2015stateProperty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of properties | Property | 215 |
Number of states in which entity has interests | 40 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
BASIC | ||||
Income (loss) from continuing operations attributable to common shareholders | $ (7,629) | $ 20,151 | $ 70,189 | $ 35,330 |
Income from discontinued operations attributable to common shareholders | 0 | 18,569 | 1,682 | 15,294 |
Net income (loss) attributable to common shareholders | $ (7,629) | $ 38,720 | $ 71,871 | $ 50,624 |
Weighted-average number of common shares outstanding | 234,018,062 | 229,463,522 | 233,457,400 | 228,337,871 |
Income (loss) from continuing operations (in USD per share) | $ (0.03) | $ 0.09 | $ 0.30 | $ 0.15 |
Income (loss) from discontinued operations (in USD per share) | 0 | 0.08 | 0.01 | 0.07 |
Net income (loss) attributable to common shareholders (USD per share) | $ (0.03) | $ 0.17 | $ 0.31 | $ 0.22 |
DILUTED | ||||
Income (loss) from continuing operations attributable to common shareholders | $ (7,629) | $ 20,151 | $ 70,189 | $ 35,330 |
Impact of assumed conversions | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations attributable to common shareholders | (7,629) | 20,151 | 70,189 | 35,330 |
Income from discontinued operations attributable to common shareholders | 0 | 18,569 | 1,682 | 15,294 |
Impact of assumed conversions | 0 | 0 | 0 | 0 |
Income from discontinued operations attributable to common shareholders | 0 | 18,569 | 1,682 | 15,294 |
Net income (loss) attributable to common shareholders | $ (7,629) | $ 38,720 | $ 71,871 | $ 50,624 |
Effect of dilutive securities: | ||||
Share options (in shares) | 0 | 458,588 | 319,438 | 492,149 |
Weighted-average common shares outstanding (in shares) | 234,018,062 | 229,922,110 | 233,776,838 | 228,830,020 |
Income (loss) per common share: | ||||
Income from continuing operations (USD per share) | $ (0.03) | $ 0.09 | $ 0.30 | $ 0.15 |
Income (loss) from discontinued operations (USD per share) | 0 | 0.08 | 0.01 | 0.07 |
Net income (loss) attributable to common shareholders (USD per share) | $ (0.03) | $ 0.17 | $ 0.31 | $ 0.22 |
Investments in Real Estate an33
Investments in Real Estate and Real Estate Under Construction - Summary of acquisitions and build-to-suit transactions (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | $ 229,558 |
Land and land estate | 25,175 |
Building and improvements | 172,254 |
Lease in-place value intangible | 32,129 |
Land [Member] | Venice, Florida [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 16,850 |
Land and land estate | 4,696 |
Building and improvements | 11,753 |
Lease in-place value intangible | 401 |
Office Building [Member] | Auburn Hills, Michigan [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 40,025 |
Land and land estate | 4,416 |
Building and improvements | 30,012 |
Lease in-place value intangible | 5,597 |
Industrial property [Member] | Houston, TX [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 28,650 |
Land and land estate | 4,674 |
Building and improvements | 19,540 |
Lease in-place value intangible | 4,436 |
Industrial property [Member] | Brookshire, TX [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 22,450 |
Land and land estate | 2,388 |
Building and improvements | 16,614 |
Lease in-place value intangible | 3,448 |
Industrial property [Member] | Canton, Mississippi [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 89,300 |
Land and land estate | 5,077 |
Building and improvements | 71,289 |
Lease in-place value intangible | 12,934 |
Industrial property [Member] | Thomson, Georgia [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 10,144 |
Land and land estate | 909 |
Building and improvements | 7,746 |
Lease in-place value intangible | 1,489 |
Industrial property [Member] | Oak Creek, Wisconsin [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | 22,139 |
Land and land estate | 3,015 |
Building and improvements | 15,300 |
Lease in-place value intangible | $ 3,824 |
Investments in Real Estate an34
Investments in Real Estate and Real Estate Under Construction - Summary of development arrangements outstanding (Details) ft² in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)ft² | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | 2,319 |
Expected Maximum Commitment/Contribution | $ | $ 346,313 |
Richmond, Virginia [Member] | Office Building [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | 330 |
Expected Maximum Commitment/Contribution | $ | $ 110,137 |
Lease Term (Years) | 15 years |
Anderson, South Carolina [Member] | Industrial property [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | 1,325 |
Expected Maximum Commitment/Contribution | $ | $ 70,012 |
Lease Term (Years) | 20 years |
Lake Jackson, Texas [Member] | Office Building [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | 664 |
Expected Maximum Commitment/Contribution | $ | $ 166,164 |
Lease Term (Years) | 20 years |
Investments in Real Estate an35
Investments in Real Estate and Real Estate Under Construction - Summary of properties to be acquired (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Business Acquisition [Line Items] | |
Estimated acquisition cost | $ 181,680 |
Richland, Washington [Member] | Industrial property [Member] | |
Business Acquisition [Line Items] | |
Estimated acquisition cost | $ 152,000 |
Lease term (years) | 20 years |
Detroit, Michigan [Member] | Industrial property [Member] | |
Business Acquisition [Line Items] | |
Estimated acquisition cost | $ 29,680 |
Lease term (years) | 20 years |
Investments in Real Estate an36
Investments in Real Estate and Real Estate Under Construction - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Aggregate acquisition expenses | $ 1,119 | $ 1,509 | |
Development in process | 155,546 | $ 106,238 | |
Development Deals [Member] | |||
Business Acquisition [Line Items] | |||
Capitalized interest | $ 6,359 | $ 2,828 |
Property Dispositions, Discon37
Property Dispositions, Discontinued Operations and Real Estate Impairment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Property | Sep. 30, 2014USD ($)Property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment of real estate | $ 32,931 | $ 11,062 | ||
Debt satisfaction gains (charges), net | $ (398) | $ (455) | 13,753 | (7,946) |
Other asset impairment charges | 1,139 | 18,864 | ||
Impaired real estate investment property, at cost | $ 475 | $ 5,574 | 475 | 5,574 |
Mortgages [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Debt extinguishment amount | 30,293 | 9,900 | ||
Sold Properties [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Aggregate gross disposition price | 217,675 | 105,180 | ||
Gain on sale of properties | 24,884 | $ 22,052 | ||
Transferred Property [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Real estate number of properties transferred | Property | 1 | |||
Debt satisfaction gains (charges), net | $ 10,106 | $ (299) | ||
Office Building [Member] | Transferred Property [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Real estate number of properties transferred | Property | 2 |
Loans Receivable (Details)
Loans Receivable (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($)class_of_financing | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)portfolio_segmenttype_of_financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1] | $ 95,806 | $ 105,635 | |||
Number of types of financing receivable | type_of_financing | 2 | |||||
Number of portfolio segments | portfolio_segment | 1 | |||||
Number of classes of financing receivable | class_of_financing | 1 | |||||
Westmont, Illinios [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1],[2] | $ 0 | $ 12,152 | |||
Interest rate of mortgage loans | [2] | 6.45% | 6.45% | |||
Cash acquired through foreclosure | $ 2,521 | |||||
Litigation settlement, amount | $ 1,400 | |||||
Impaired financing receivable, interest income, cash basis method | $ 0 | $ 1,284 | ||||
Southfield, Michigan [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1],[3] | $ 0 | $ 3,296 | |||
Interest rate of mortgage loans | [3] | 4.55% | 4.55% | |||
Impaired financing receivable, interest income, cash basis method | $ 14 | |||||
Kennewick, Washington [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1] | $ 85,451 | $ 85,254 | |||
Interest rate of mortgage loans | 9.00% | 9.00% | ||||
Oklahoma City, Oklahoma [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1],[4] | $ 8,420 | $ 0 | |||
Interest rate of mortgage loans | [4] | 11.50% | 11.50% | |||
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | $ 8,420 | |||||
Ownership percentage | 40.00% | |||||
Austin, Texas [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1],[5] | $ 0 | $ 2,800 | |||
Interest rate of mortgage loans | [5] | 16.00% | 16.00% | |||
Proceeds from Collection of Loans Receivable | $ 3,545 | |||||
Other Loan Locations [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan carrying-value | [1] | $ 1,935 | $ 2,133 | |||
Interest rate of mortgage loans | 8.00% | 8.00% | ||||
[1] | Loan carrying value includes accrued interest and is net of origination costs and loan losses, if any. | |||||
[2] | In July 2015, the Company acquired the office property collateral and $2,521of cash collateral and received $1,400 in full settlement of its claim against the borrower. During the nine months ended September 30, 2015 and 2014, the Company recognized $0 and $1,284 of interest income relating to the impaired loan, respectively | |||||
[3] | In April 2015, the Company acquired the office property collateral from the borrower. In 2015, the Company recognized $14 of interest income relating to the impaired loan | |||||
[4] | In June 2015, the Company loaned a tenant-in-common $8,420. The loan is secured by the tenant-in-common's interest in an office property, in which the Company has a 40% interest. | |||||
[5] | In June 2015, the borrower satisfied the loan with a $3,545 payment, which included yield maintenance. |
Fair Value Measurements - Sche
Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | $ 475 | $ 25,679 |
Impaired Loan Receivable Fair Value Disclosure | [1] | 3,296 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | 0 | 0 |
Impaired Loan Receivable Fair Value Disclosure | [1] | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | 0 | 0 |
Impaired Loan Receivable Fair Value Disclosure | [1] | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | 475 | 25,679 |
Impaired Loan Receivable Fair Value Disclosure | [1] | 3,296 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 1,153 | ||
Interest rate swap liabilities | (6,216) | (749) | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 0 | ||
Interest rate swap liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 1,153 | ||
Interest rate swap liabilities | (6,216) | (749) | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 0 | ||
Interest rate swap liabilities | $ 0 | $ 0 | |
[1] | Represents a non-recurring fair value measurement. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Carrying value of loans receivable | $ 95,806 | $ 105,635 |
Carrying Amount [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Assets | ||
Carrying value of loans receivable | 95,806 | 105,635 |
Liabilities | ||
Carrying value of debt | 2,021,365 | 2,092,675 |
Fair Value [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Assets | ||
Fair value of loans receivable | 95,535 | 105,061 |
Liabilities | ||
Fair value of debt | $ 2,007,831 | $ 2,091,364 |
Investment in and Advances to41
Investment in and Advances to Non-Consolidated Entities (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | |||||
Non-recourse debt | $ 47,763 | ||||
Investment in joint venture | 10,322 | $ 0 | |||
Joint Venture [Member] | Office Building [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Equity method investment, other than temporary impairment | $ 930 | ||||
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Investment in joint venture | $ 5,613 | ||||
Houston, TX [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Anticipated construction cost | 86,491 | ||||
Maximum construction financing | $ 56,686 | ||||
Houston, TX [Member] | Joint Venture [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership percentage of equity method investment | 25.00% | ||||
Lease term (years) | 20 years | ||||
Baltimore, Maryland [Member] | Joint Venture [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Investment in joint venture | $ 5,000 | ||||
Lease term (years) | 99 years | ||||
Mortgages [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Stated interest rate, minimum | 3.70% | ||||
Stated interest rate, maximum | 4.70% | ||||
Lexington Realty Trust [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Non-recourse debt | $ 8,619 | ||||
Minimum [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership percentage of equity method investment | 15.00% | ||||
Maximum [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership percentage of equity method investment | 40.00% |
Debt - Additional Information
Debt - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)shares | Dec. 31, 2010USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | $ 804,238,000 | $ 804,238,000 | $ 945,216,000 | |||
Weighted average interest rate | 5.00% | 5.00% | 5.20% | |||
Percent of notes required to be repurchased at the option of the holders | 100.00% | |||||
Converted debt, shares issued | shares | 519,664 | 624,103 | ||||
Convertible debt cash payments | $ 529,000 | $ 62,000 | $ 529,000 | $ 62,000 | ||
Debt satisfaction gains (charges), net | (398,000) | $ (455,000) | 13,753,000 | (7,946,000) | ||
Convertible Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt converted | 3,828,000 | 4,205,000 | ||||
Unsecured Debt [Member] | Unsecured Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 905,000,000 | 905,000,000 | ||||
Maximum borrowing capacity with lender approval | $ 1,810,000,000 | $ 1,810,000,000 | ||||
6% Convertible Guaranteed Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | |||
Face amount of debt instrument | $ 12,400,000 | $ 12,400,000 | $ 115,000,000 | $ 16,228,000 | ||
Maturity date | Jan. 31, 2030 | |||||
Conversion ratio numerator | 153.8603 | |||||
Conversion price (dollars per share) | $ / shares | $ 6.50 | $ 6.50 | ||||
Debt satisfaction gains (charges), net | $ (476,000) | (933,000) | ||||
Other Debt Obligations [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt satisfaction gains (charges), net | $ 4,123,000 | $ (7,013,000) | ||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 2.20% | 2.20% | 2.20% | |||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 7.80% | 7.80% | 8.50% |
Debt - Schedule of Debt Instru
Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes [Member] | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Face amount of debt instrument | $ 500,000,000 |
Senior Notes Due 2024 [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt instrument | $ 250,000,000 |
Stated interest rate | 4.40% |
Percentage of issuance price | 99.883% |
Senior Notes Due 2023 [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt instrument | $ 250,000,000 |
Stated interest rate | 4.25% |
Percentage of issuance price | 99.026% |
Debt - Schedule of Credit Agre
Debt - Schedule of Credit Agreement Terms (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Credit facility borrowings | $ 73,000,000 | $ 0 |
Letters of credit outstanding | 10,000,000 | |
Remaining borrowing capacity | $ 317,000,000 | |
Weighted average interest rate | 5.00% | 5.20% |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.85% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 400,000,000 | |
Basis spread on variable at the end of the period | 1.00% | |
Credit facility borrowings | $ 73,000,000 | |
Unsecured Revolving Credit Facility, Expiring February 2017 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.95% | |
Unsecured Revolving Credit Facility, Expiring February 2017 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.725% | |
Unsecured Revolving Credit Facility, Expiring February 2017 [Member] | Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable at the end of the period | 1.15% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Basis spread on variable at the end of the period | 1.10% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.10% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.10% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.09% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Basis spread on variable at the end of the period | 1.35% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 255,000,000 | |
Basis spread on variable at the end of the period | 1.10% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.42% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 255,000,000 | |
Basis spread on variable at the end of the period | 1.75% |
Debt - Additional disclosures
Debt - Additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030 (Details) - 6% Convertible Guaranteed Note [Member] - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2010 | |
Debt Instrument [Line Items] | ||||||
Principal amount of debt component | $ 12,400,000 | $ 12,400,000 | $ 16,228,000 | $ 115,000,000 | ||
Unamortized discount | (272,000) | (272,000) | (564,000) | |||
Carrying amount of debt component | 12,128,000 | 12,128,000 | 15,664,000 | |||
Carrying amount of equity component | $ (34,784,000) | $ (34,784,000) | $ (33,160,000) | |||
Effective interest rate | 7.70% | 7.70% | 8.10% | |||
Aggregate if-converted value in excess of aggregate principal amount | $ 3,054,000 | $ 10,432,000 | ||||
Stated interest rate | 6.00% | 6.00% | 6.00% | |||
Coupon interest | $ 185,000 | $ 375,000 | $ 577,000 | $ 1,196,000 | ||
Discount amortization | 53,000 | 107,000 | 175,000 | 340,000 | ||
Interest expense | $ 238,000 | $ 482,000 | $ 752,000 | $ 1,536,000 |
Derivatives and Hedging Activ46
Derivatives and Hedging Activities (Details) | 9 Months Ended | ||
Sep. 30, 2015USD ($)Financial_Instrument | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | |||
Expected amount of derivative related interest to be reclassified to interest expense over the next 12 months | $ 4,422,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Derivative asset | $ 1,153,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Accounts Payable And Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative liability | (6,216,000) | $ (749,000) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 505,000,000 | ||
Number of derivative instruments held | Financial_Instrument | 10 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ (10,742,000) | $ (5,237,000) | |
Amount of loss reclassified from accumulated OCI into income (effective portion) | $ 4,122,000 | $ 4,103,000 |
Concentration of Risk (Details)
Concentration of Risk (Details) - tenant | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||
Number of tenants representing more than 10% of rental revenue | 0 | 0 |
Maximum [Member] | Tenant Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Equity - Additional Informatio
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015USD ($)shares | Jul. 31, 2014USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)shares | Dec. 31, 2014USD ($) | |
Equity [Line Items] | ||||||
Proceeds from issuance of common shares | $ | $ 17,312 | $ 19,165 | ||||
Authorized amount (in shares) | 10,000,000 | |||||
Treasury stock acquired (in shares) | 1,306,300 | |||||
Treasury stock acquired, average cost (in dollars per share) | $ / shares | $ 8.42 | |||||
Gains and losses on cash flow hedges | $ | $ (6,216) | $ (6,216) | $ 404 | |||
OP unit equivalent in common shares | 1.13 | |||||
Cash and stock issued during period, value, conversion of units | $ | $ 1,962 | |||||
Partners capital account, shares issued for units redeemed | 11,186 | |||||
Partners' capital account, units | 3,422,000 | 3,422,000 | ||||
Payments to acquire interest in joint venture | $ | $ 4,022 | $ 2,100 | ||||
Parent [Member] | ||||||
Equity [Line Items] | ||||||
Partners' capital account, redemption for common shares | $ | $ 56 | |||||
Former LCIF II Partners [Member] | ||||||
Equity [Line Items] | ||||||
Partners capital account, units exchanged for cash | 170,193 | |||||
Cash and stock issued during period, value, conversion of units | $ | $ 1,962 | |||||
Philadelphia Pennsylvania [Member] | Office Building [Member] | ||||||
Equity [Line Items] | ||||||
Payments to acquire interest in joint venture | $ | $ 4,022 | $ 2,100 | ||||
Real estate, ownership percentage | 100.00% | |||||
Direct Share Purchase Plan [Member] | ||||||
Equity [Line Items] | ||||||
Common shares issued during period | 1,845,617 | 1,853,988 | ||||
Proceeds from issuance of common shares | $ | $ 17,415 | $ 18,758 | ||||
Trustees [Member] | ||||||
Equity [Line Items] | ||||||
Deferred compensation arrangement with individual, shares issued | 20,400 | 14,000 | ||||
Deferred compensation arrangement with individual, fair value of shares issued | $ | $ 209 | $ 142 | ||||
Performance Shares [Member] | ||||||
Equity [Line Items] | ||||||
Grants in period | 170,650 | |||||
Weighted average grant date fair value | $ | $ 1,916 | |||||
Award vesting period | 3 years | |||||
Performance Shares [Member] | Executive Officer [Member] | ||||||
Equity [Line Items] | ||||||
Measurement period | 3 years | |||||
Index Performance Shares [Member] | Executive Officer [Member] | ||||||
Equity [Line Items] | ||||||
Measurement period basis | 321,018 | |||||
Fair value per share (in dollars per share) | $ / shares | $ 6.86 | $ 6.86 | ||||
Peer Performance Shares [Member] | Executive Officer [Member] | ||||||
Equity [Line Items] | ||||||
Measurement period basis | 321,011 | |||||
Fair value per share (in dollars per share) | $ / shares | $ 6.66 | $ 6.66 |
Equity - Changes in Other Comp
Equity - Changes in Other Comprehensive Income (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Gains and Losses on Cash Flow Hedges, Beginning | $ 404 |
Gains and Losses on Cash Flow Hedges, Ending | (6,216) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Gains and Losses on Cash Flow Hedges, Beginning | 404 |
Other comprehensive loss before reclassifications | (10,742) |
Amounts of loss reclassified from accumulated other comprehensive income to interest expense | 4,122 |
Gains and Losses on Cash Flow Hedges, Ending | $ (6,216) |
Equity - Changes in Company's
Equity - Changes in Company's Ownership Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Line Items] | ||||
Net income attributable to Lexington Realty Trust shareholders | $ (5,984) | $ 40,405 | $ 76,853 | $ 55,741 |
Decrease in additional paid-in-capital for redemption of noncontrolling OP units | 0 | (950) | ||
Change from net income attributable to shareholders and transfers from noncontrolling interests | 76,853 | 54,791 | ||
Accumulated Distributions in Excess of Net Income [Member] | ||||
Equity [Line Items] | ||||
Net income attributable to Lexington Realty Trust shareholders | $ 76,853 | $ 55,741 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Affiliated Entity [Member] | |
Related Party Transaction [Line Items] | |
Guaranty obligation | $ 18,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 16, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | ||||
Payments for capital improvements | $ 18,744 | $ 9,434 | ||
Bridgewater Hills Corporate Center, LLC [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Damages sought, value | $ 15,500 | |||
Byhalia Mississippi [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Payments for capital improvements | $ 15,300 |
Supplemental Disclosure of St53
Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 62,914 | $ 69,936 |
Income taxes paid | $ 788 | $ 1,424 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Nov. 06, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Subsequent Event [Line Items] | |||
Payments for repurchase of common stock | $ 11,019 | $ 0 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Payments for repurchase of common stock | $ 2,320 | ||
Subsequent Event [Member] | Richland, Washington [Member] | Mortgages [Member] | |||
Subsequent Event [Line Items] | |||
Stated interest rate | 4.00% | ||
Debt instrument, term (in years) | 10 years | ||
Face amount of debt instrument | $ 110,000 | ||
Subsequent Event [Member] | Richland, Washington [Member] | Unsecured Revolving Credit Facility [Member] | Unsecured Debt [Member] | Industrial property [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from lines of credit | $ 152,000 | ||
Subsequent Event [Member] | Office Build-to-Suit Project [Member] | Charlotte, North Carolina [Member] | |||
Subsequent Event [Line Items] | |||
Lease term (years) | 15 years | ||
Initial annual rent, percent of purchase price | 8.30% | ||
Annual rent increase, percent | 2.00% | ||
Contractual obligation | $ 62,445 | ||
Common Stock [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock repurchased during period (in shares) | 288,344 |