Exhibit 99.1
[GRAPHIC OMITTED]
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 Diane Hettwer Claire Koeneman
Chief Financial Officer Analyst Inquiries General Inquiries
(212) 692-7200 (312) 640-6760 (312) 640-6745
FOR IMMEDIATE RELEASE
Thursday, April 29, 2004
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
FIRST QUARTER RESULTS
$0.04 Per Share Impairment Charge Taken Against
Marlborough, Massachusetts Property
New York, NY - April 29, 2004 - Lexington Corporate Properties Trust (NYSE:LXP),
a real estate investment trust, today announced results for its first quarter
ended March 31, 2004.
Quarterly Highlights
- Closed on 10 property investments for an aggregate capitalized cost of
$260.6 million, including $28.7 million in joint ventures;
- Raised $144.3 million in 6.9 million common share offering;
- Obtained $104.8 in new non-recourse first mortgage financings at a
weighted average fixed rate of 5.57%;
- Arranged additional $147.0 million in non-recourse mortgage financings
to close later this year at a weighted average fixed rate of 5.48%,
$63.3 million of which have closed in the second quarter;
- Sold two non-core retail properties, generating gains of $1.7 million;
and
- Signed new six-year lease extension on Phoenix, AZ health club.
Quarterly Results
Funds from operations were $18.8 million, or $0.39 per diluted share/unit, for
the first quarter of 2004, after a $0.04 per diluted share/unit non-cash charge
relating to a write down in the value of a property held for sale, compared to
$17.0 million, or $0.48 per diluted share/unit, for the first quarter of 2003.
As a result of the common share offering in 2004, Lexington operated with
greater cash balances and lower average leverage than in the first quarter of
2003 and this reduced FFO per share. In addition, portfolio occupancy was 98.9%
compared to 99.2% in the prior period.
Rental revenues for the quarter totaled $30.3 million, compared to $24.9 million
for the same period last year. Net income allocable to common shareholders was
$10.4 million in the first quarter of
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2004, or $0.24 per diluted share/unit, compared to $8.8 million, which included
$0.5 million in gains on sale, or $0.29 per diluted share/unit, for the same
period last year.
Quarterly Dividends Declared
The Company declared a common dividend of $0.35 per share for the first quarter
of 2004, payable on May 14, 2004 to common shareholders of record on April 30,
2004. In addition, the Company declared a quarterly preferred dividend of
$0.503125 per share, payable on May 17, 2004 to preferred shareholders of record
on April 30, 2004.
Conference Call
Management will discuss the financial results on a conference call today at 2pm
Eastern Time. The toll-free dial in number is 800-240-4186 and 303-262-2211. The
replay of the call will be available through May 6, 2004. The toll-free
telephone number for the replay is 800-405-2236 or 303-590-3000, passcode
577060. The conference call can also be accessed on the internet at www.lxp.com
and www.fulldisclosure.com. A supplemental reporting package can be accessed in
the Company Profile section at www.lxp.com.
Comments From Management
Commenting on Lexington's financial results, T. Wilson Eglin, Chief Executive
Officer said, "During the first quarter, Lexington continued to take essential
steps to position the company for long-term growth. In response to a very strong
market for real estate stocks, the Company raised $144.3 million of equity
capital by selling 6.9 million common shares. In addition, the Company closed or
arranged for new mortgage financings of $251.8 million at a weighted average
fixed interest rate of 5.52%, further capitalizing on an environment of low
interest rates. We are pleased that Lexington has had the opportunity to
increase its capitalization on terms that enhance our long-term objective: a
secure and growing dividend for our shareholders."
Mr. Eglin added, "We continue to upgrade our portfolio, both by acquiring new
properties and by selling non-core properties, as evidenced by the two retail
properties we sold during the quarter. Consistent with our portfolio objectives,
we have agreed to sell our Marlborough, Massachusetts property for $11.9 million
and take a $0.04 per share non-cash impairment charge. On the leasing side, we
entered into a six-year lease extension on our Phoenix, Arizona health club.
"Our objectives for the balance of 2004 are to complete new leases on six
properties presently in negotiation, form a third joint venture to complement
our existing investment programs, and continue to upgrade the portfolio through
the disposition of non-core holdings and the acquisitions of properties that
improve tenant credit quality, lengthen our weighted average lease term, are
located in markets with good growth prospects, and which have attractive total
return potential. Our activities, while long-term positives for net asset value,
portfolio diversification, and portfolio cash flow, will result in Lexington
operating with substantially greater cash balances than anticipated in 2004.
Accordingly, we are reducing our range of FFO per share guidance by $0.10 per
share from $1.83-$1.88 per share to $1.73-$1.78 per share, before the $0.04 per
share impairment charge. One of the advantages of having significant cash
balances is that we have the option of accelerating our acquisition activities
now or
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waiting to see if interest rates rise further and going-in yields on new
investments increase as a result. Regardless, when our cash balances are
invested we believe that Lexington will be able to grow FFO per share by 8-10%
in 2005."
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 April 28, 2004 at $18.88 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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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended
March 31,
2004 2003
---- ----
Revenues:
Rental $ 30,276 $ 24,933
Advisory fees 950 325
Reimbursements 892 479
Interest and other 68 226
------- -------
32,186 25,963
------- -------
Expenses:
Interest 8,653 8,838
Depreciation and amortization 7,535 5,957
General and administrative 3,503 2,299
Property operating 1,875 1,310
Amortization of deferred costs 354 412
------- -------
21,920 18,816
------- -------
10,266 7,147
Provision for income taxes (766) --
Equity in earnings of joint ventures 1,804 1,349
Minority interest (1,080) (1,073)
------- -------
Income from continuing operations 10,224 7,423
------- -------
Discontinued operations, net of minority interest:
Income from discontinued operations 1,749 881
Impairment charge (1,732) --
Gains on sales of properties 1,737 459
------- -------
Total discontinued operations 1,754 1,340
------- -------
Net income 11,978 8,763
Dividends attributable to preferred shares - Series B (1,590) --
------ -------
Net income allocable to common shareholders $ 10,388 $ 8,763
Depreciation and amortization 7,752 6,361
Minority interests-OP Units 928 1,239
Amortization of leasing commissions 181 200
Joint venture adjustment-depreciation 1,314 908
Gains on sales of properties (1,737) (459)
------- -------
Funds from operations $ 18,826 $ 17,012
======= =======
Rent below GAAP revenue1 $ 531 $ 1,137
======= =======
Per share/unit
Basic net income $ 0.24 $ 0.29
Diluted net income $ 0.24 $ 0.29
Funds from operations(2)-basic $ 0.39 $ 0.48
Funds from operations(2)-diluted $ 0.39 $ 0.48
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
3/31/04 12/31/03
------- --------
Real estate, at cost $ 1,274,907 $ 1,162,395
Accumulated depreciation (157,996) (160,623)
Investment in non-consolidated entities 86,800 69,225
Properties held for sale - discontinued operations 79,662 36,478
Cash and cash equivalents 87,694 15,923
Deferred assets, net 10,637 10,013
Rent receivable - deferred 24,324 24,069
Other assets 57,407 49,931
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$ 1,463,435 $ 1,207,411
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Mortgages and notes payable $ 661,677 $ 551,385
Other liabilities 11,341 10,667
Prepaid rent 3,696 2,482
Minority interests 58,124 59,220
Shareholders' equity 728,597 583,657
---------- ----------
$ 1,463,435 $ 1,207,411
========== ==========
Common shares 48,102,891 40,682,001
Preferred shares-Series B 3,160,000 3,160,000
Operating partnership units 5,385,747 5,430,454
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56,648,638 49,272,455
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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 April 2002 "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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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
AND FUNDS FROM OPERATIONS PER SHARE
(dollars in thousands, except per share data)
Three Months Ended
March 31,
2004 2003
---- ----
Earning Per Share
-----------------
Basic
Income from continuing operations $ 10,224 $ 7,423
Less preferred dividends (1,590) --
----------- ----------
Income allocable to common shareholders from
continuing operations - basic 8,634 7,423
Total income from discontinued operations - basic 1,754 1,340
----------- ----------
Net income allocable to common shareholders $ 10,388 $ 8,763
=========== ==========
Weighted average number of common shares
outstanding 42,474,808 29,983,496
=========== ==========
Per share data:
Income from continuing operations $ 0.20 $ 0.25
Income from discontinued operations 0.04 0.04
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Net income $ 0.24 $ 0.29
=========== ==========
Diluted
Income allocable to common shareholders from
continuing operations-basic $ 8,634 $ 7,423
Adjustments:
Incremental income attributed to assumed
conversion of dilutive securities 1,080 1,073
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Income allocable to common shareholders from
continuing operations-diluted 9,714 8,496
Total income from discontinued operations - diluted 1,704 1,613
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Net income allocable to common shares - diluted $ 11,418 $ 10,109
=========== ==========
Weighted average number of shares used in
calculation of basic earnings per share 42,474,808 29,983,496
Add incremental shares representing:
Shares issuable upon exercises of
employee share options 179,080 160,503
Shares issuable upon conversion of
dilutive securities 5,392,625 5,249,715
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Weighted average number of shares used in
calculation of diluted earnings per common share 48,046,513 35,393,714
=========== ==========
Per share data:
Income from continuing operations - diluted $ 0.20 $ 0.24
Income from discontinued operations - diluted 0.04 0.05
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Net income - diluted $ 0.24 $ 0.29
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
AND FUNDS FROM OPERATIONS PER SHARE
(dollars in thousands, except per share data)
Three Months Ended
March 31,
2004 2003
---- ----
Funds From Operations
- ---------------------
Basic and Diluted
- -----------------
Net income allocable to common shareholders - basic $ 10,388 $ 8,763
Adjustments:
Depreciation and amortization 7,752 6,361
Minority interests-OP Units 928 1,239
Amortization of leasing commissions 181 200
Joint venture adjustment-depreciation 1,314 908
Gains on sale of properties (1,737) (459)
---------- ----------
Funds from operations $ 18,826 $ 17,012
========== ==========
Basic
- -----
Weighted average shares outstanding-basic EPS 42,474,808 29,983,496
Operating partnership units 5,392,625 5,249,715
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Weighted average shares outstanding-basic FFO 47,867,433 35,233,211
========== ==========
FFO per share $ 0.39 $ 0.48
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Diluted
- -------
Weighted average shares outstanding-diluted EPS
and FFO 48,046,513 35,393,714
========== ==========
FFO per share $ 0.39 $ 0.48
========== ==========
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