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NEWS RE: LEXINGTON CORPORATE PROPERTIES TRUST
BULLETIN
355 LEXINGTON AVENUE
FROM: NEW YORK, NY 10017
FRB NYSE:LXP
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The Financial Relations Board, Inc./BSMG WORLDWIDE
FOR FURTHER INFORMATION:
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
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T. Wilson Eglin Shelley Young Stephanie Carrington Deanne Eagle
President (General Info.) (Analyst Info.) (Media Info.)
(212) 692-7260 (212) 661-8030 (212) 661-8030 (212) 661-8030
FOR IMMEDIATE RELEASE
July 21, 1999
LEXINGTON CORPORATE PROPERTIES TRUST FORMS JOINT
VENTURE WITH PROMINENT INSTITUTIONAL REIT INVESTOR
JOINT VENTURE WILL INVEST UP TO $425 MILLION IN NET-LEASED PROPERTIES
NEW YORK, NY - JULY 21, 1999 -- Lexington Corporate Properties Trust
(NYSE: LXP), a real estate investment trust, today announced that it has formed
a joint venture program (the "Joint Venture") with a major public pension fund
(the "Institutional Partner") to invest in single-tenant net-leased properties
throughout the United States. Under the terms of the Joint Venture, Lexington
and the Institutional Partner plan, over time, to contribute up to $50 million
and $100 million, respectively, to the Joint Venture. The Joint Venture will
seek to invest in office and industrial properties net-leased to major
corporations and will invest up to approximately $425 million in real estate.
STRONG INSTITUTIONAL SPONSORSHIP AND OPPORTUNITIES FOR CONTINUED GROWTH
Commenting on Lexington's new strategic initiative, T. Wilson Eglin, President
and Chief Operating Officer, said, "We are very pleased that our investment
strategy has received such strong institutional endorsement. The Joint Venture
is an integral part of our program to create shareholder value as it will allow
us to continue to take advantage of attractive acquisition opportunities, more
efficiently utilize our capital resources, and improve investment
diversification while increasing returns on equity. Since we will be earning
fee income from the Joint Venture through our taxable affiliate, returns on our
invested capital are expected to be enhanced. We are continuing to explore
other joint venture programs which could potentially involve purchasing
additional properties on a shared basis or selling interests in certain assets
presently owned by Lexington. These programs could provide additional
opportunities for our taxable subsidiary to earn fee income from advisory
services which would substantially offset acquisition related overhead."
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ADDITIONAL TRANSACTION TERMS
In addition to its one-third economic interest, Lexington's taxable affiliate
will earn acquisition fees of 0.75% of the cost of acquired properties and asset
management fees of 2.0% of revenues collected for services it will provide to
the Joint Venture. The equity interest of the Institutional Partner in the Joint
Venture will, under certain circumstances, be exchangeable for Lexington common
shares on terms that would be accretive to Lexington's fund from operations. The
number of shares to be issued is dependent upon the funds from operations of the
Joint Venture and Lexington's share price at the time of conversion. In lieu of
such conversion, the interest of the institutional partner in the Joint Venture
may be repurchased by the Company for cash.
ABOUT LEXINGTON
Lexington Corporate Properties Trust is a real estate investment trust that owns
and manages a 11.0 million square foot portfolio of 65 office, industrial and
retail properties net-leased to major corporations in 29 states. Shares of
Lexington common stock closed July 20, 1999 at $12.50 per share. Lexington,
which has an annual dividend of $1.20 per share, has approximately 19.1 million
convertible preferred and common shares outstanding and approximately 6.1
million operating partnership units outstanding, which are exchangeable into
common shares on a one-for-one basis at certain points in the future.
This release contains certain forward-looking statements which involve known and
unknown risks, uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance, or other expectations
implied by these forward-looking statements. These factors include, but are not
limited to; those detailed in the Company's periodic filings with the Securities
and Exchange Commission.
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FOR MORE INFORMATION ON LEXINGTON CORPORATE PROPERTIES, VIA FAX AT NO CHARGE,
PLEASE CALL
1-800-PRO-INFO and enter ticker symbol "LXP".