EXHIBIT 99.1
NEWS BULLETIN
FROM:
RE: LEXINGTON CORPORATE PROPERTIES TRUST
The Financial Relations Board 355 LEXINGTON AVENUE
BSMG WORLDWIDE NEW YORK, NY 10017
[GRAPHIC OMITTED][GRAPHIC OMITTED]
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FOR FURTHER INFORMATION
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
T. Wilson Eglin Larry Stein Claire Koeneman
President General Inquiries Analyst Inquiries
(212) 692-7260 (312) 640-6794 (312) 640-6784
FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 25, 2001
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
RECORD FUNDS FROM OPERATIONS
New York, NY - July 25, 2001 -- Lexington Corporate Properties Trust (NYSE:
LXP), a real estate investment trust, today announced results for its second
quarter ended June 30, 2001.
Recent Highlights
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o Reported 2Q01 diluted FFO of $0.46 per share, a 4.5% increase over 2Q00
o Declared $0.32 per share dividend; 2Q01 payout ratio is 69.6%
o Completed $98.0 million in property specific financings, at a weighted
average interest rate of 7.44%
o Fully repaid all outstanding balances on $35.0 million line of credit;
variable rate indebtedness now equals 9.5% of total indebtedness
o Announced repayment of $9.3 million of mortgage debt, improving cash
available for dividends by approximately $1.5 million, or $0.06 per
share
o Signed five and ten year lease extensions for the two property leases
expiring in 2001; 88.6% of revenues are from leases that expire after
2005
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Quarterly Results
Funds from operations were $12.45 million, or $0.46 per diluted share/unit for
the second quarter of 2001, a 4.5% per share increase compared to $11.76
million, or $0.44 per diluted share/unit, for the second quarter of 2000. The
number of shares used to calculate the Company's funds from operations per
diluted share/unit includes operating partnership units, convertible notes,
convertible preferred shares and dilutive common share options.
Revenues for the quarter totaled $20.45 million, compared with revenues of
$20.03 million for the same period last year. Net income was $5.09 million in
the second quarter of 2001, compared to $7.35 million, which includes $2.66
million in gains on sale, for the same period last year.
Six Month Results
For the six months ended June 30, 2001, FFO were $24.57 million or $0.91 per
diluted share/unit compared to $22.45 million or $0.87 per diluted share/unit,
for the same period last year.
Revenues for the six months ended June 30, 2001 totaled $40.68 million, compared
to revenues of $39.64 million for the same period last year. Net income was
$9.67 million after $0.27 million in extraordinary charges for the six months
ended June 30, 2001 compared to $11.82 million, which includes $2.66 million in
gains on sale, for the same period last year.
Quarterly Dividend Declared
The Company declared a dividend of $0.32 per share for the second quarter of
2001, payable on August 14, 2001 to shareholders of record on July 31, 2001. The
declared dividend per share is approximately 69.6% of diluted funds from
operations per share for the quarter.
Property Financings
Since December 2000, the Company has completed $98.0 million in property
specific financings, encumbering eight properties. The debt has a current
weighted average interest rate of 7.44% and a current weighted average maturity
of 7.3 years. The proceeds of the financings were allocated to repay maturing
debt, fully repay balances on Lexington's $35.0 million line of credit, fund
joint venture investments and retire mortgage debt with over-market interest
rates.
Lease Extensions
The tenants of Lexington's 123,924 square foot industrial facility in Bessemer,
Alabama, and 146,000 square foot industrial facility in Modesto, California have
signed lease extensions through September 2006 and October 2011, respectively.
The new leases generate annual revenues of $834,000 compared to $770,000 for the
existing leases. As a result of the lease extensions, Lexington has no leases
that expire in 2001. Two leases, representing less than 1% of rental revenue,
are subject to expiration in 2002.
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Comments From Management
Commenting on Lexington's results, T. Wilson Eglin, President and Chief
Operating Officer, said, "Our focus on tenant credit quality and long-term
leases combined with our successful joint venture program and profitable
advisory business has positioned Lexington to continue to grow funds from
operations and cash available for dividends, even in a slow growth economy. With
very little near-term lease rollover risk and the enhanced balance sheet
flexibility created by our financing strategies, we are well-positioned to both
withstand any weakness in the property markets and take advantage of favorable
acquisition opportunities that may arise."
Lexington Corporate Properties Trust is a real estate investment trust that owns
and manages a portfolio of office, industrial and retail properties net-leased
to major corporations throughout the United States. Lexington Realty Advisors,
an affiliate of Lexington, provides investment advisory services to
institutional investors in the net lease area. Lexington common shares closed
Tuesday, July 24, 2001 at $15.05 per share. Lexington, which pays an annualized
dividend of $1.28 per share, has approximately 25.1 million convertible
preferred shares, common shares and operating partnership units outstanding,
which are exchangeable into common shares on a one-for-one basis at certain
points in the future. Additional information about Lexington is available at
www.lxp.com.
FOR MORE INFORMATION ON LEXINGTON CORPORATE PROPERTIES TRUST,
VIA FAX AT NO COST, SIMPLY DIAL 1-800-PRO-INFO AND ENTER THE TICKER
SYMBOL LXP.
Financial Tables Follow
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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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
Quarter Ended Six Months Ended
June 30, June 30,
-------- --------
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Rental $ 19,371 $ 19,298 $ 38,734 $ 38,318
Equity in earnings - nonconsolidated entities 806 231 1,416 633
Interest and other 271 504 531 692
--------- --------- --------- ----------
20,448 20,033 40,681 39,643
--------- --------- --------- --------
Expenses:
Interest expense 7,712 7,221 15,344 14,655
Depreciation 4,361 4,367 8,718 8,793
Amortization 408 380 756 673
Property operating expenses 343 399 714 768
General and administrative 1,215 1,312 2,457 2,598
--------- --------- --------- ----------
14,039 13,679 27,989 27,487
--------- --------- --------- ----------
Income before gains on sale, minority interests
and extraordinary item 6,409 6,354 12,692 12,156
Gains on sale -- 2,662 -- 2,662
Minority interests (1,319) (1,670) (2,754) (3,001)
Extraordinary item -- -- (270) --
--------- --------- ---------- ----------
Net income $ 5,090 $ 7,346 $ 9,668 $ 11,817
Depreciation 4,361 4,367 8,718 8,793
Extraordinary item -- -- 270 --
Minority interests - OP Units 1,267 1,622 2,613 2,908
Amortization of leasing commissions 192 134 383 167
Deemed conversion of note payable 500 500 1,000 582
Joint venture adjustment 1,038 448 1,919 845
Gains on sale -- (2,662) -- (2,662)
---------- ----------- ------------ ------------
Funds from operations $ 12,448 $ 11,755 $ 24,571 $ 22,450
========== =========== ============ ============
Rent below GAAP revenue 1 $ 589 $ 433 $ 1,199 $ 1,063
========== =========== ============ ============
Per share/unit
Basic net income $ 0.25 $ 0.40 $ 0.48 $ 0.63
Diluted net income $ 0.25 $ 0.36 $ 0.47 $ 0.59
Funds from operations 2,3,6 -basic $ 0.47 $ 0.44 $ 0.92 $ 0.87
Funds from operations 2,3,6 -diluted $ 0.46 $ 0.44 $ 0.91 $ 0.87
Weighted average shares outstanding 4 19,351,400 18,838,967 19,219,900 18,881,301
Weighted average OP units outstanding 5,432,667 5,757,834 5,531,928 5,728,008
Weighted average convertible notes 5 1,923,077 1,923,077 1,923,077 1,120,034
Dilutive common share options 325,777 79,998 287,234 72,604
---------- ---------- ---------- -----------
Total weighted average shares and units 6 27,032,921 26,599,876 26,962,139 25,801,947
========== ========== ========== ===========
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
6/30/01 12/31/00
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Real estate, net $ 577,040 $ 584,198
Investment in nonconsolidated entities 46,193 40,836
Cash and cash equivalents 10,935 4,792
Restricted cash 1,819 1,598
Deferred assets 8,963 7,958
Rent receivable - current 1,587 1,557
Other assets 30,031 27,438
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$ 676,568 $ 668,377
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Mortgages and notes payable $ 398,569 $ 387,326
Other liabilities 11,712 13,176
Minority interests 58,834 64,812
Shareholders' equity 7 207,453 203,063
------------ ----------
$ 676,568 $ 668,377
============ ==========
Common shares outstanding 17,808,784 17,151,282
Preferred shares outstanding 2,000,000 2,000,000
Operating partnership units outstanding 5,291,842 5,711,453
------------ ----------
Total outstanding shares/units 25,100,626 24,862,735
============ ==========
(1) Equal to the difference between rents collected and straight-line rental
income recognized under generally accepted accounting principles.
(2) Funds from operations is defined in the NAREIT "White Paper," which was most
recently updated in October 1999, as follows: net income (or loss) (computed in
accordance with generally accepted accounting principles), excluding gains (or
losses) from sales of property, plus real estate depreciation and amortization
and after adjustments for unconsolidated partnerships and joint ventures.
(3) Per common and preferred shares, operating partnership units and convertible
notes (basic) plus common share options (diluted).
(4) Includes 2,000,000 preferred shares.
(5) Relates to the deemed conversion of the Company's outstanding $25 million
exchangeable notes. The notes are convertible into 1,923,077 common shares
commencing March 17, 2000.
(6) The number of shares used to calculate FFO per share is different from the
number used to calculate net income per share in accordance with generally
accepted accounting principles.
(7) Includes mandatory redeemable preferred and common shares.
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