Exhibit 99.1
(FRB | WEBER SHANDWICK LOGO)
news
RE: LEXINGTON CORPORATE PROPERTIES TRUST
355 LEXINGTON AVENUE
NEW YORK, NY 10017
FOR FURTHER INFORMATION:
AT THE COMPANY: AT FRB | WEBER SHANDWICK:
T. Wilson Eglin Larry Stein Diane Hettwer
Chief Executive Officer General Inquires Analyst Inquires
(212) 692-7260 (312) 640-6794 (312) 640-6760
FOR IMMEDIATE RELEASE
THURSDAY, OCTOBER 23, 2003
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
THIRD QUARTER OPERATING RESULTS
NEW YORK, NY - OCTOBER 23, 2003 - LEXINGTON CORPORATE PROPERTIES TRUST
(NYSE:LXP), a real estate investment trust, today announced results for its
third quarter and nine months ended September 30, 2003.
YEAR-TO-DATE HIGHLIGHTS
- Raised $150 million in net proceeds from common and preferred
equity offerings;
- Obtained $70 million equity commitment for new joint venture
program;
- Closed $100 million unsecured credit facility;
- Lowered balance sheet leverage from 46.7% of market
capitalization at December 31, 2002 to 36.7% of market
capitalization at September 30, 2003;
- Acquired $203.5 million of properties which generate $19.6
million of annual net rental revenues, or 9.61% of the
purchase price;
- Leased 46,724 square feet at Columbia, Maryland property,
raising portfolio occupancy to 99.5% and
- Generated a total return to shareholders of 32.6% through
October 22, 2003.
QUARTERLY RESULTS
Funds from operations were $18.27 million, or $0.45 per diluted share/unit for
the third quarter of 2003, compared to $15.64 million, or $0.48 per diluted
share/unit, for the third quarter of 2002. As a result of the common share and
preferred share offerings in 2003, Lexington operated with greater cash balances
and lower leverage than in 2002 and this reduced FFO per share.
Revenues for the third quarter of 2003 totaled $31.11 million, compared to
revenues of $24.89 million for the same period last year. Net income allocable
to common shareholders was $8.37 million in the third quarter of 2003, compared
to $7.65 million for the same period last year.
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NINE MONTH RESULTS
For the nine months ended September 30, 2003, FFO were $44.77 million or $1.18
per diluted share/unit, which is net of the impact of $7.69 million ($0.20 per
diluted share/unit) in debt satisfaction charges, compared to $46.10 million or
$1.43 per diluted share/unit, for the same period last year. As a result of the
common share and preferred share offerings in 2003, Lexington operated with
greater cash balances and lower leverage than in 2002 and this reduced FFO per
share.
Revenues for the nine months ended September 30, 2003 totaled $89.04 million,
compared to revenues of $73.34 million for the same period last year. Net income
allocable to common shareholders was $19.41 million, which includes $7.69
million in debt satisfaction charges and $1.14 million in gains on sales, for
the nine months ended September 30, 2003 compared to $22.79 million, which
includes $1.06 million in gains on sales, for the same period last year.
ACQUISITION VOLUME
During 2003, Lexington acquired ten properties for capitalized cost of $203.5
million, which generate annual net rental revenue of $19.6 million, or 9.61% of
the purchase price. In connection with the purchase of five of these properties
Lexington obtained $70.7 million in non-recourse mortgage notes, with a weighted
average interest of 5.27%.
LEASING
During the quarter, Lexington signed a lease with Haverty Furniture Companies,
Inc. for 46,724 square feet at its Columbia, Maryland retail property. The
lease, which expires in September 2024, generates approximately $0.6 million of
annual net rental revenue. This lease raised portfolio occupancy to 99.5% at
September 30, 2003.
In addition, the tenant of Lexington's Hebron, Kentucky office property has
exercised an option to terminate its lease in April 2004 by paying a penalty at
such time of $0.9 million, which equals one year's rent.
DIVIDEND DECLARATION
The Company declared a dividend of $0.335 per common share for the third quarter
of 2003, payable on November 14, 2003 to common shareholders of record on
October 31, 2003. The Company also declared a dividend on its Cumulative
Redeemable Preferred Shares of $0.503125 per preferred share, payable on
November 17, 2003 to preferred shareholders of record on October 31, 2003.
CONFERENCE CALL
Management will discuss the financial results on a conference call today at 2pm
Eastern Time. The toll-free dial in number is 800-867-0938 and the international
number is 303-262-2175. The replay of the call will be available through October
30, 2003. The toll-free telephone number for the replay is 800-405-2236 or
303-590-3000, passcode 555920. The conference call can also be accessed on the
internet at www.lxp.com and www.companyboardroom.com. A supplemental reporting
package can be accessed in the Company Profile section at www.lxp.com.
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LEXINGTON POISED FOR GROWTH
Commenting on Lexington's results, T. Wilson Eglin, Chief Executive Officer and
President, said, "During the first nine months of 2003, Lexington took several
steps to enhance its balance sheet flexibility and capacity for future growth.
This year we have added approximately $150 million of equity capital to our
balance sheet, arranged a new unsecured credit facility of $100 million, and
received a $70 million equity commitment for a newly-formed joint venture
program. Our enhanced balance sheet has positioned the Company to take advantage
of acquisition opportunities and I am pleased to report that our total
acquisition volume for the year of $203.5 million exceeds the target that we
established at the beginning of the year. We have approximately $100 million of
property under letter of intent and are well-positioned to exceed our previous
record annual investment activity of $277 million."
TENTH ANNIVERSARY
Mr. Eglin continued, "Yesterday marked the tenth anniversary of our listing on
the New York Stock Exchange and we are very proud of what Lexington has
accomplished during this time. Our equity base has grown from approximately $85
million to almost $900 million today and our assets under management have grown
from $200 million to more than $1.6 billion. Most importantly, the total return
to our shareholders has been 247% and we have grown dividends per share every
year. As we head into our second decade as a public company, our management team
is energized by the opportunities ahead of us and committed to extending our
long track record of creating shareholder value."
ABOUT LEXINGTON
Lexington Corporate Properties Trust is a real estate investment trust that owns
and manages office, industrial and retail properties net leased to major
corporations throughout the United States and provides investment advisory and
asset management services to investors in the net lease area. Lexington common
shares closed Wednesday, October 22, 2003 at $20.08 per share. Lexington
preferred shares, with an annualized dividend of $2.0125 per preferred share,
closed Wednesday, October 22, 2003 at $26.90 per share. Additional information
about Lexington is available at www.lxp.com.
Financial tables follow
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AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
-------- -------- -------- --------
Revenues:
Rental $ 28,651 $ 23,130 $ 82,673 $ 68,217
Equity in earnings of non-consolidated entities 1,325 1,468 3,900 3,831
Advisory fees 273 -- 953 --
Interest and other 862 294 1,512 1,294
-------- -------- -------- --------
31,111 24,892 89,038 73,342
-------- -------- -------- --------
Expenses:
Interest 8,205 8,392 26,857 24,662
Debt satisfaction charges -- -- 7,685 --
Depreciation 6,960 5,218 20,113 15,403
General and administrative 2,648 1,359 7,399 4,122
Property operating 1,163 496 2,818 1,744
Amortization 557 481 1,601 1,425
-------- -------- -------- --------
19,533 15,946 66,473 47,356
-------- -------- -------- --------
Income from continuing operations before minority interests 11,578 8,946 22,565 25,986
Minority interests 1,654 1,452 2,840 4,200
-------- -------- -------- --------
Income from continuing operations 9,924 7,494 19,725 21,786
-------- -------- -------- --------
Discontinued operations:
Income from discontinued operations 38 113 340 645
Gains on sales of properties -- 39 1,143 1,055
-------- -------- -------- --------
Total discontinued operations 38 152 1,483 1,700
-------- -------- -------- --------
Net income 9,962 7,646 21,208 23,486
Dividends attributable to preferred shares - Series A -- -- -- (693)
Dividends attributable to preferred shares - Series B (1,590) -- (1,802) --
-------- -------- -------- --------
Net income allocable to common shareholders $ 8,372 $ 7,646 $ 19,406 $ 22,793
Depreciation and amortization 7,109 5,261 20,330 15,636
Minority interests-OP Units 1,603 1,422 2,704 4,108
Amortization of leasing commissions 206 174 606 522
Joint venture adjustment-depreciation 978 1,173 2,867 3,399
Gains on sales of properties -- (39) (1,143) (1,055)
Series A preferred dividends -- -- -- 693
-------- -------- -------- --------
Funds from operations $ 18,268 $ 15,637 $ 44,770 $ 46,096
======== ======== ======== ========
Rent below GAAP revenue(1) $ 868 $ 526 $ 3,018 $ 1,752
======== ======== ======== ========
Per share/unit
Basic net income $ 0.24 $ 0.28 $ 0.60 $ 0.87
Diluted net income $ 0.24 $ 0.28 $ 0.58 $ 0.85
Funds from operations(2)-basic $ 0.46 $ 0.48 $ 1.18 $ 1.44
Funds from operations(2)-diluted $ 0.45 $ 0.48 $ 1.18 $ 1.43
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
09/30/03 12/31/02
Real estate, at cost $ 1,083,759 $ 913,370
Accumulated depreciation (155,619) (134,220)
Investment in non-consolidated entities 55,930 54,261
Cash and cash equivalents 12,505 12,097
Deferred assets 8,830 8,168
Rent receivable - current -- 3,535
Rent receivable - deferred 23,426 20,115
Other assets 26,437 25,145
------------ ------------
$ 1,055,268 $ 902,471
============ ============
Mortgages and notes payable $ 497,816 $ 491,517
Other liabilities 16,230 17,323
Prepaid rent 3,646 --
Minority interests 54,345 56,846
Shareholders' equity 483,231 336,785
------------ ------------
$ 1,055,268 $ 902,471
============ ============
Common shares 35,246,803 30,030,048
Preferred shares-Series B 3,160,000 --
Operating partnership units 5,198,691 5,257,365
------------ ------------
43,605,494 35,287,413
============ ============
(1) Equal to the difference between rents collected and straight-line
rental income recognized under generally accepted accounting
principles.
(2) The Company believes that Funds From Operations ("FFO") enhances an
investor's understanding of the Company's financial condition, results
of operations and cash flows. The Company believes that FFO is an
appropriate, but limited, measure of the performance of an equity REIT.
FFO is defined in the October 1999 "White Paper" issued by the National
Association of Real Estate Investment Trusts, Inc. ("NAREIT") as "net
income (or loss) computed in accordance with generally accepted
accounting principles ("GAAP"), excluding gains (or losses) from sales
of property, plus real estate depreciation and amortization and after
adjustments for unconsolidated partnerships and joint ventures." FFO
should not be considered an alternative to net income as an indicator
of operating performance or to cash flows from operating activities as
determined in accordance with GAAP, or as a measure of liquidity to
other consolidated income or cash flow statement data as determined in
accordance with GAAP.
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AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
AND FUNDS FROM OPERATIONS PER SHARE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
EARNING PER SHARE
BASIC
Income from continuing operations $ 9,924 $ 7,494 $ 19,725 $ 21,786
Less preferred dividends (1,590) -- (1,802) (693)
------------ ------------ ------------ ------------
Income allocable to common shareholders from continuing
operations - basic 8,334 7,494 17,923 21,093
Total income from discontinued operations - basic 38 152 1,483 1,700
------------ ------------ ------------ ------------
Net income allocable to common shareholders $ 8,372 $ 7,646 $ 19,406 $ 22,793
============ ============ ============ ============
Weighted average number of common shares outstanding 34,780,279 27,165,248 32,579,011 26,095,976
============ ============ ============ ============
Per share data:
Income from continuing operations $ 0.24 $ 0.27 $ 0.55 $ 0.81
Income from discontinued operations -- 0.01 0.05 0.06
------------ ------------ ------------ ------------
Net income $ 0.24 $ 0.28 $ 0.60 $ 0.87
============ ============ ============ ============
DILUTED
Income allocable to common shareholders from continuing
operations-basic $ 8,334 $ 7,494 $ 17,923 $ 21,093
Adjustments:
Incremental income attributed to assumed conversion of
dilutive securities -- 1,408 2,701 4,073
------------ ------------ ------------ ------------
Income allocable to common shareholders from
continuing operations-diluted 8,334 8,902 20,624 25,166
Total income from discontinued operations - diluted 38 166 1,598 1,852
------------ ------------ ------------ ------------
Net income allocable to common shares - diluted $ 8,372 $ 9,068 $ 22,222 $ 27,018
============ ============ ============ ============
Weighted average number of shares used in calculation
of basic earnings per share 34,780,279 27,165,248 32,579,011 26,095,976
Add incremental shares representing:
Shares issuable upon exercises of employee share options 193,151 253,723 188,988 237,387
Shares issuable upon conversion of dilutive securities -- 5,258,930 5,221,564 5,281,129
------------ ------------ ------------ ------------
Weighted average number of shares used in calculation of
diluted earnings per common share 34,973,430 32,677,901 37,989,563 31,614,492
============ ============ ============ ============
Per share data:
Income from continuing operations - diluted $ 0.24 $ 0.27 $ 0.54 $ 0.80
Income from discontinued operations - diluted -- 0.01 0.04 0.05
------------ ------------ ------------ ------------
Net income - diluted $ 0.24 $ 0.28 $ 0.58 $ 0.85
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AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
AND FUNDS FROM OPERATIONS PER SHARE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
FUNDS FROM OPERATIONS
BASIC AND DILUTED
Net income allocable to common shareholders $ 8,372 $ 7,646 $ 19,406 $ 22,793
Adjustments:
Depreciation and amortization 7,109 5,261 20,330 15,636
Minority interests-OP Units 1,603 1,422 2,704 4,108
Amortization of leasing commissions 206 174 606 522
Joint venture adjustment-depreciation 978 1,173 2,867 3,399
Gains on sale of properties -- (39) (1,143) (1,055)
Preferred dividends-Series A -- -- -- 693
------------ ------------ ------------ ------------
Funds from operations $ 18,268 $ 15,637 $ 44,770 $ 46,096
============ ============ ============ ============
BASIC
Weighted average shares outstanding-basic EPS 34,780,279 27,165,248 32,579,011 26,095,976
Operating partnership units 5,202,975 5,258,930 5,221,564 5,281,129
Preferred shares - Series A -- -- -- 732,601
------------ ------------ ------------ ------------
Weighted average shares outstanding-basic FFO 39,983,254 32,424,178 37,800,575 32,109,706
============ ============ ============ ============
FFO per share $ 0.46 $ 0.48 $ 1.18 $ 1.44
============ ============ ============ ============
DILUTED
Weighted average shares outstanding-diluted EPS 34,973,430 32,677,901 37,989,563 31,614,492
Operating partnership units 5,202,975 -- -- --
Preferred shares - Series A -- -- -- 732,601
------------ ------------ ------------ ------------
Weighted average shares outstanding-diluted FFO 40,176,405 32,677,901 37,989,563 32,347,093
============ ============ ============ ============
FFO per share $ 0.45 $ 0.48 $ 1.18 $ 1.43
============ ============ ============ ============
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