EXHIBIT 99.1
[GRAPHIC]
FINANCIAL
RELATIONS BOARD
[GRAPHIC]
news
RE: LEXINGTON CORPORATE PROPERTIES TRUST
ONE PENN PLAZA
SUITE 4015
NEW YORK, NY 10119
FOR FURTHER INFORMATION:
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Patrick Carroll Larry Stein Diane Hettwer
Chief Financial Officer General Inquiries Analyst Inquiries
(212) 692-7200 (312) 640-6794 (312) 640-6760
FOR IMMEDIATE RELEASE
THURSDAY, JANUARY 29, 2004
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
FOURTH QUARTER AND TWELVE MONTH RESULTS
New York, NY - January, 29, 2004 - Lexington Corporate Properties Trust
(NYSE:LXP), a real estate investment trust, today announced results for its
fourth quarter and twelve months ended December 31, 2003.
2003 Highlights
- ---------------
o Acquired 19 properties for an aggregate investment of $414 million,
including $147 million in joint ventures;
o Expanded equity base by approximately $250 million by issuing common and
preferred shares;
o Lowered consolidated balance sheet leverage in 2003 from 47% to 35% of total
market capitalization;
o Leased 46,700 square feet of our Columbia, Maryland property;
o Closed $100 million unsecured credit facility;
o Obtained $70 million equity commitment for a newly formed joint venture;
o Generated total shareholder return of 35.4%; and
o Increased dividend to annual rate of $1.40 per common share, the eleventh
consecutive annual increase.
Quarterly Results
Funds from operations were $19.7 million, or $0.45 per diluted share/unit, for
the fourth quarter of 2003, after the impact of $0.1 million in gains from debt
satisfaction. This is compared to $15.7 million, or $0.45 per diluted
share/unit, for the fourth quarter of 2002, after the impact of $0.3 million in
debt satisfaction charges. As a result of a common share offering in the fourth
quarter of 2003, Lexington operated with greater cash balances than in the prior
year and this limited growth in FFO per share. In addition, the Company operated
with lower leverage than in the prior year.
Revenues for the quarter totaled $32.2 million, compared with revenues of $25.7
million for the same period last year. Net income allocable to common
shareholders was $10.9 million in the fourth quarter of 2003, after the impact
of $0.1 million in gains from debt satisfaction and $1.0 million in gains on
sale of properties, or $0.28 per diluted share. This is compared to $7.1
million, after the impact of $0.3 million in debt satisfaction charges, or $0.24
per diluted share, for the same period last year.
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Twelve Month Results
For the twelve months ended December 31, 2003, FFO were $64.5 million, or $1.63
per diluted share/unit, which is net of the impact of $7.6 million ($0.19 per
diluted share/unit) in debt satisfaction charges, compared to $61.8 million,
after the impact of $0.3 million in debt satisfaction charges, or $1.86 per
diluted share/unit, for the same period last year. As a result of the common
share and preferred share offerings during 2003, Lexington operated with greater
cash balances and lower leverage than in the prior year and this reduced FFO per
share.
Revenues for the twelve months ended December 31, 2003, totaled $120.5 million,
compared to revenues of $98.3 million for the same period last year. Net income
allocable to common shareholders was $30.3 million for the twelve months ended
December 31, 2003, after $7.6 million in debt satisfaction charges and $2.2
million in gains on sale of properties, or $0.88 per diluted share, compared to
$29.9 million, after the impact of $0.3 million in debt satisfaction charges and
$1.1 million in gains on sale of properties, or $1.09 per diluted share, for the
same period last year.
Quarterly Dividend Declared
The Company declared a common dividend of $0.35 per share for the fourth quarter
of 2003, payable on February 13, 2004, to common shareholders of record on
January 30, 2004. The Company also declared a quarterly preferred dividend of
$0.503125 per share, payable on February 17, 2004, to preferred shareholders of
record on January 30, 2004.
Comments From Management
Commenting on Lexington's operating results, T. Wilson Eglin, Chief Executive
Officer, said, "2003 was a very successful year for Lexington. In addition to
making $414 million in new property investments we took several important steps
to position the Company for future growth and a higher interest rate
environment. Our balance sheet debt as a percentage of our overall market
capitalization decreased from 46.7% to 35.2% and we reduced our floating rate
mortgage debt from $47.4 million to $15.7 million. We have little near-term
refinancing risk as our mortgage debt maturing through 2007 is just $14.5
million. With few debts maturing we can utilize our financial resources to
continue growing our real estate portfolio. In 2004, we plan to take advantage
of the low interest rate environment by utilizing long-term fixed rate debt to
finance our growth and have closed or arranged non-recourse mortgage financings
of approximately $143.0 million at a weighted average interest rate of
approximately 5.9%. In 2004, we have already acquired $72.4 million of property
and we are highly confident that we can meet or exceed our target acquisition
volume of $250 million - $300 million in 2004. We are pleased that our shares
returned 35.4% last year and that we recently increased our common share
dividend for the eleventh consecutive year."
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, January 28, 2004, at $20.65 per share. Lexington pays
an annualized dividend of $1.40 per share. Additional information about
Lexington is available at www.lxp.com
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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AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
---- ---- ---- ----
Revenues:
Rental $ 29,679 $ 24,135 $ 111,658 $ 91,606
Equity in earnings of non-consolidated entities 1,564 1,248 5,734 5,079
Advisory fees 718 -- 1,401 --
Interest and other 215 353 1,727 1,647
--------- --------- -------- ---------
32,176 25,736 120,520 98,332
--------- --------- -------- ---------
Expenses:
Interest 8,182 8,693 34,881 33,161
Debt satisfaction charges (119) 345 7,566 345
Depreciation 7,149 5,758 27,110 21,049
General and administrative 2,661 1,610 10,043 5,728
Property operating 1,066 603 3,882 2,347
Amortization 632 447 2,226 1,812
--------- --------- -------- ---------
19,571 17,456 85,708 64,442
--------- --------- -------- ---------
Income from continuing operations before minority interests 12,605 8,280 34,812 33,890
Minority interests 1,299 1,373 3,965 5,386
--------- --------- -------- ---------
Income from continuing operations 11,306 6,907 30,847 28,504
--------- --------- -------- ---------
Discontinued operations:
Income from discontinued operations 108 202 611 1,036
Gains on sales of properties 1,027 -- 2,191 1,055
--------- --------- -------- ---------
Total discontinued operations 1,135 202 2,802 2,091
--------- --------- -------- ---------
Net income 12,441 7,109 33,649 30,595
Dividends attributable to preferred shares - Series A -- -- -- (693)
Dividends attributable to preferred shares - Series B (1,590) -- (3,392) --
--------- --------- -------- ---------
Net income allocable to common shareholders $ 10,851 $ 7,109 $ 30,257 $ 29,902
Depreciation and amortization 7,304 5,844 27,634 21,480
Minority interests-OP Units 1,314 1,402 4,039 5,510
Amortization of leasing commissions 206 155 812 677
Joint venture adjustment-depreciation 1,084 1,212 3,951 4,611
Gains on sales of properties (1,027) -- (2,191) (1,055)
Series A preferred dividends -- -- -- 693
--------- --------- -------- ---------
Funds from operations $ 19,732 $ 15,722 $ 64,502 $ 61,818
========= ========= ======== =========
Rent below GAAP revenue(1) $ 772 $ 674 $ 3,790 $ 2,426
========= ========= ======== =========
Per share/unit
Basic net income $ 0.28 $ 0.24 $ 0.89 $ 1.11
Diluted net income $ 0.28 $ 0.24 $ 0.88 $ 1.09
Funds from operations(2)-basic $ 0.45 $ 0.45 $ 1.64 $ 1.88
Funds from operations(2)-diluted $ 0.45 $ 0.45 $ 1.63 $ 1.86
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AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
12/31/03 12/31/02
-------- --------
Real estate, at cost $ 1,162,395 $ 913,370
Accumulated depreciation (160,623) (134,220)
Investment in non-consolidated entities 69,225 54,261
Properties held for sale - discontinued operations 36,478 --
Cash and cash equivalents 15,923 12,097
Deferred assets, net 10,013 8,168
Rent receivable - current -- 3,535
Rent receivable - deferred 24,069 20,115
Other assets 49,931 25,145
----------- -----------
$ 1,207,411 $ 902,471
=========== ===========
Mortgages and notes payable $ 551,385 $ 491,517
Other liabilities 10,667 17,323
Prepaid rent 2,482 --
Minority interests 59,220 56,846
Shareholders' equity 583,657 336,785
----------- ------------
$ 1,207,411 $ 902,471
=========== ===========
Common shares 40,682,001 30,030,048
Preferred shares-Series B 3,160,000 --
Operating partnership units 5,430,454 5,257,365
----------- -----------
49,272,455 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 Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
---- ---- ---- ----
Earning Per Share
- -----------------
Basic
Income from continuing operations $ 11,306 $ 6,907 $ 30,847 $ 28,504
Less preferred dividends (1,590) -- (3,392) (693)
---------------- ------------ ------------- -----------
Income allocable to common shareholders from continuing
operations - basic 9,716 6,907 27,455 27,811
Total income from discontinued operations - basic 1,135 202 2,802 2,091
---------------- ------------ ------------- -----------
Net income allocable to common shareholders $ 10,851 $ 7,109 $ 30,257 $ 29,902
=============== ============ ============ ============
Weighted average number of common shares outstanding 38,513,927 29,788,876 34,074,935 27,026,789
=============== ============ ============ ============
Per share data:
Income from continuing operations $ 0.25 $ 0.23 $ 0.81 $ 1.03
Income from discontinued operations 0.03 0.01 0.08 0.08
--------------- ------------ ------------ ------------
Net income $ 0.28 $ 0.24 $ 0.89 $ 1.11
=============== ============ ============ ============
Diluted
Income allocable to common shareholders from continuing
operations-basic $ 9,716 $ 6,907 $ 27,455 $ 27,811
Adjustments:
Incremental income attributed to assumed conversion
of dilutive securities 1,299 -- 3,965 --
--------------- ------------ ------------ ------------
Income allocable to common shareholders from
continuing operations-diluted 11,015 6,907 31,420 27,811
Total income from discontinued operations - diluted 1,504 202 3,320 2,091
--------------- ------------ ------------ ------------
Net income allocable to common shareholders - diluted $ 12,519 $ 7,109 $ 34,740 $ 29,902
=============== ============ ============ ============
Weighted average number of shares used in calculation
of basic earnings per share 38,513,927 29,788,876 34,074,935 27,026,789
Add incremental shares representing:
Shares issuable upon exercises of employee
share options 218,824 190,982 202,504 300,102
Shares issuable upon conversion of dilutive
securities 5,201,210 -- 5,216,433 --
---------------- ------------ ------------ ------------
Weighted average number of shares used in calculation of
diluted earnings per common share 43,933,961 29,979,858 39,493,872 27,326,891
=============== ============ ============ ============
Per share data:
Income from continuing operations - diluted $ 0.25 $ 0.23 $ 0.80 $ 1.02
Income from discontinued operations - diluted 0.03 0.01 0.08 0.07
---------------- ------------ ------------ ------------
Net income - diluted $ 0.28 $ 0.24 $ 0.88 $ 1.09
=============== ============ ============ ============
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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 Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
---- ---- ---- ----
Funds From Operations
- ---------------------
Basic and Diluted
Net income allocable to common shareholders
Adjustments: $ 10,851 $ 7,109 $ 30,257 $ 29,902
Depreciation and amortization 7,304 5,844 27,634 21,480
Minority interests-OP Units 1,314 1,402 4,039 5,510
Amortization of leasing commissions 206 155 812 677
Joint venture adjustment-depreciation 1,084 1,212 3,951 4,611
Gains on sale of properties (1,027) -- (2,191) (1,055)
Preferred dividends-Series A -- -- -- 693
------------ ------------ ------------ ------------
Funds from operations $ 19,732 $ 15,722 $ 64,502 $ 61,818
============ ============ ============ ============
Basic
- -----
Weighted average shares outstanding-basic EPS 38,513,927 29,788,876 34,074,935 27,026,789
Operating partnership units 5,201,210 5,257,517 5,216,433 5,275,178
Preferred shares - Series A -- -- -- 547,945
------------ ------------ ------------ ------------
Weighted average shares outstanding-basic FFO 43,715,137 35,046,393 39,291,368 32,849,912
============ ============ ============ ============
FFO per share $ 0.45 $ 0.45 $ 1.64 $ 1.88
============ ============ ============ ============
Diluted
- -------
Weighted average shares outstanding-diluted EPS 43,933,961 29,979,858 39,493,872 27,326,891
Operating partnership units -- 5,257,517 -- 5,275,178
Preferred shares - Series A -- -- -- 547,945
------------ ------------ ------------ ------------
Weighted average shares outstanding-diluted FFO 43,933,961 35,237,375 39,493,872 33,150,014
============ ============ ============ ============
FFO per share $ 0.45 $ 0.45 $ 1.63 $ 1.86
============ ============ ============ ============
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