Exhibit 99.1
[FINANCIAL NEWS BOARD LOGO]
[NEWS GRAPHIC]
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
Chief Financial Officer Analyst Inquiries
(212) 692-7200 (312) 640-6760
FOR IMMEDIATE RELEASE
Thursday, July 29, 2004
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
SECOND QUARTER OPERATING RESULTS
New York, NY - July 29, 2004 - Lexington Corporate Properties Trust (NYSE:LXP),
a real estate investment trust, today announced results for its second quarter
ended June 30, 2004.
Quarterly Highlights
- Closed on 7 investments for an aggregate capitalized cost of $123.2
million, including $65.6 million in joint ventures;
- Obtained $93.1 million in new non-recourse first mortgage financings at
a weighted average fixed rate of 5.70%;
- Sold two non-core retail properties, generating gains of $2.3 million;
- Signed five lease extensions on portfolio properties, and
- Formed a new joint venture with an institutional investor.
Quarterly Results
Funds from operations were $22.7 million, or $0.43 per diluted share/unit, for
the second quarter of 2004, compared to $9.5 million, or $0.25 per diluted
share/unit, after $7.7 million ($0.20 per diluted share/unit) of debt
satisfaction charges, for the second quarter of 2003.
Rental revenue for the quarter totaled $35.3 million, compared to rental revenue
of $26.2 million for the same period last year. Net income allocable to common
shareholders was $13.0 million in the second quarter of 2004, including $2.3
million of gains on sales of two properties and $0.5 million of impairment
charges relating to one property, compared to $2.3 million for the same period
last year, which included $7.7 million of debt satisfaction charges and $0.7
million of gains on sales of two properties.
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Six Month Results
For the six months ended June 30, 2004 FFO were $41.6 million, or $0.82 per
diluted share/unit compared to $26.5 million, after $7.7 million of debt
satisfaction charges ($0.21 per diluted share/unit), or $0.72 per diluted
share/unit, for the same period last year.
Rental revenue for the six months ended June 30, 2004 totaled $66.3 million,
compared to rental revenues of $51.9 million for the same period last year. Net
income allocable to common shareholders for the six months ended June 30, 2004
was $23.4 million, which includes $4.1 million of gains on sales of four
properties and $2.2 million of impairment charges relating to two properties,
compared to $11.0 million, which includes $7.7 million of debt satisfaction
charges and $1.1 million of gains on sales of three properties, for the same
period last year.
Quarterly Dividends Declared
The Company declared a common dividend of $0.35 per share payable on August 13,
2004 to common shareholders of record on July 30, 2004. The Company also
declared a dividend on its Cumulative Redeemable Preferred Shares of $0.503125
per preferred share, payable on August 16, 2004 to preferred shareholders of
record on July 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 800-257-6607. The replay of the
call will be available through August 5, 2004. The toll-free telephone number
for the replay is 800-405-2236, passcode 11003326. The international number is
303-262-2211 and a replay can be accessed via 303-590-3000, passcode 11003326.
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 second quarter, Lexington continued to implement a
growth-oriented business plan by making new investments totaling $123.2 million,
bringing total investment activity for the year to $411.7 million, including
construction in progress. So far in the third quarter we have completed
acquisitions totaling $80.9 million including $13.8 million in joint ventures.
These investments, together with our active acquisition pipeline, are expected
to lead to improved funds from operations in the second half of 2004. As a
result, we are confident that funds from operations this year will be within the
range of our guidance of $1.73-$1.78 per share, before the $0.04 per diluted
share/unit in impairment charges. In addition, we continue to believe that the
Company is well-positioned to deliver growth in funds from operations per share
of 8-10% in 2005."
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Mr. Eglin continued, "Lexington continues to take steps to upgrade our
portfolio, extend lease terms and strengthen our balance sheet. 46.1% of rental
revenues generated in the first six months of the year were from investment
grade rated tenants compared to 39.6% in the same period a year ago. During the
quarter we sold two retail properties, generating gains of $2.3 million and
extended five leases. We are pleased to note that the percentage of our rental
revenue generated from leases expiring prior to 2008 is now down to 20.7%
compared to 33.6% of total rental revenue at the same time last year. In
addition, during the second quarter the Company obtained $93.1 million of new
mortgage financing at a fixed rate of 5.7%."
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 July 28, 2004 at $19.01 per share. Lexington pays an
annualized dividend of $1.40 per share. Additional information about Lexington
is available at www.lxp.com
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.
Financial Tables Follow
-----------------------
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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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Gross revenues:
Rental $ 35,254 $ 26,207 $ 66,318 $ 51,927
Advisory fees 777 181 1,727 506
Tenant reimbursements 1,348 1,226 873 2,333
---------- ---------- ---------- ----------
Total gross revenues 37,379 27,614 70,918 54,766
Expense applicable to revenues:
Depreciation and amortization (9,292) (6,847) (17,123) (13,167)
Property operating (2,570) (1,905) (5,078) (3,844)
General and administrative (2,549) (2,405) (6,023) (4,674)
Non-operating income 649 230 770 514
Interest and amortization expense (12,330) (9,517) (21,676) (19,112)
Debt satisfaction charges -- (7,685) -- (7,685)
---------- ---------- ---------- ----------
Income (loss) before provision for income taxes, minority interests 11,287 (515) 21,788 6,798
and equity in earnings of joint ventures
Provision for income taxes (488) -- (1,253) --
Minority interests (1,101) 245 (2,224) (893)
Equity in earnings of joint ventures 1,717 1,397 3,521 2,742
---------- ---------- ---------- ----------
Income from continuing operations 11,415 1,127 21,832 8,647
---------- ---------- ---------- ----------
Discontinued operations, net of minority interest:
Income from discontinued operations 1,353 672 2,910 1,456
Impairment charge (478) -- (2,212) --
Gains on sales of properties 2,327 684 4,065 1,143
---------- ---------- ---------- ----------
Total discontinued operations 3,202 1,356 4,763 2,599
---------- ---------- ---------- ----------
Net income 14,617 2,483 26,595 11,246
Dividends attributable to preferred shares - Series B (1,590) (212) (3,180) (212)
---------- ---------- ---------- ----------
Net income allocable to common shareholders $ 13,027 $ 2,271 $ 23,415 $ 11,034
Depreciation and amortization 9,109 6,860 16,860 13,221
Minority interests-OP Units 1,180 (138) 2,109 1,101
Amortization of leasing commissions 183 200 365 400
Joint venture adjustment-depreciation 1,559 981 2,873 1,889
Gains on sales of properties (2,327) (684) (4,065) (1,143)
---------- ---------- ---------- ----------
Funds from operations $ 22,731 $ 9,490 $ 41,557 $ 26,502
========== ========== ========== ==========
Rent below GAAP revenue(1) $ 1,218 $ 1,013 $ 1,749 $ 2,150
========== ========== ========== ==========
Per share/unit
Basic net income $ 0.27 $ 0.07 $ 0.52 $ 0.35
Diluted net income $ 0.27 $ 0.06 $ 0.52 $ 0.33
Funds from operations(2)-basic $ 0.43 $ 0.25 $ 0.82 $ 0.72
Funds from operations(2)-diluted $ 0.43 $ 0.25 $ 0.82 $ 0.72
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
6/30/04 12/31/03
------- --------
Real estate, at cost $ 1,324,298 $ 1,162,395
Accumulated depreciation (171,556) (160,623)
Investment in joint ventures 96,455 69,225
Properties held for sale - discontinued operations 48,242 36,478
Intangible assets, net 27,773 14,736
Cash and cash equivalents 121,651 15,923
Deferred expenses, net 9,222 10,013
Accounts receivable 2,413 -
Rent receivable - deferred 24,160 24,069
Other assets 49,788 35,195
--------- ---------
$ 1,532,446 $ 1,207,411
========= =========
Mortgages and notes payable $ 725,992 $ 551,385
Other liabilities 14,459 10,667
Prepaid rent 4,173 2,482
Minority interests 59,449 59,220
Shareholders' equity 728,373 583,657
--------- ---------
$ 1,532,446 $ 1,207,411
========= =========
Common shares 48,312,044 40,682,001
Preferred shares-Series B 3,160,000 3,160,000
Operating partnership units 5,330,401 5,430,454
--------- ---------
56,802,445 49,272,455
========= =========
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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Earning Per Share
- -----------------
Basic
Income from continuing operations $ 11,415 $ 1,127 $ 21,832 $ 8,647
Less preferred dividends (1,590) (212) (3,180) (212)
---------- ---------- ---------- ----------
Income allocable to common shareholders from
continuing operations - basic 9,825 915 18,652 8,435
Total income from discontinued operations - basic 3,202 1,356 4,763 2,599
---------- ---------- ---------- ----------
Net income allocable to common shareholders $ 13,027 $ 2,271 $ 23,415 $ 11,034
========== ========== ========== ==========
Weighted average number of common shares outstanding 47,704,823 32,920,546 45,089,816 31,460,135
========== ========== ========== ==========
Per share data:
Income from continuing operations $ 0.21 $ 0.03 $ 0.41 $ 0.27
Income from discontinued operations 0.06 0.04 0.11 0.08
---------- ---------- ---------- ----------
Net income $ 0.27 $ 0.07 $ 0.52 $ 0.35
========== ========== ========== ==========
Diluted
Income allocable to common shareholders from
continuing operations-basic $ 9,825 $ 915 $ 18,652 $ 8,435
Adjustments:
Incremental (income)/expense attributed to
assumed conversion of dilutive securities -- (245) -- 893
---------- ---------- ---------- ----------
Income allocable to common shareholders from
continuing operations-diluted 9,825 670 18,652 9,328
Total income from discontinued operations - diluted 3,202 1,468 4,763 2,919
---------- ---------- ---------- ----------
Net income allocable to common shareholders - diluted $ 13,027 $ 2,138 $ 23,415 $ 12,247
========== ========== ========== ==========
Weighted average number of shares used in calculation
of basic earnings per share 47,704,823 32,920,546 45,089,816 31,460,135
Add incremental shares representing:
Shares issuable upon exercises of employee
share options 100,935 199,986 134,784 181,690
Shares issuable upon conversion of dilutive
securities
-- 5,212,514 -- 5,231,012
---------- ---------- ---------- ----------
Weighted average number of shares used in calculation
of diluted earnings per common share 47,805,758 38,333,046 45,224,600 36,872,837
========== ========== ========== ==========
Per share data:
Income from continuing operations - diluted $ 0.21 $ 0.02 $ 0.41 $ 0.25
Income from discontinued operations - diluted 0.06 0.04 0.11 0.08
---------- ---------- ---------- ----------
Net income - diluted $ 0.27 $ 0.06 $ 0.52 $ 0.33
========== ========== ========== ==========
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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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Funds From Operations
- ---------------------
Basic and Diluted
- -----------------
Net income allocable to common shareholders - basic $ 13,027 $ 2,271 $ 23,415 $ 11,034
Adjustments:
Depreciation and amortization 9,109 6,860 16,860 13,221
Minority interests-OP Units 1,180 (138) 2,109 1,101
Amortization of leasing commissions 183 200 365 400
Joint venture adjustment-depreciation 1,559 981 2,873 1,889
Gains on sale of properties (2,327) (684) (4,065) (1,143)
----------- ----------- ----------- -----------
Funds from operations $ 22,731 $ 9,490 $ 41,557 $ 26,502
=========== =========== =========== ===========
Basic
- -----
Weighted average shares outstanding-basic EPS 47,704,823 32,920,546 45,089,816 31,460,135
Operating partnership units 5,352,198 5,212,514 5,372,411 5,231,012
----------- ----------- ----------- -----------
Weighted average shares outstanding-basic FFO 53,057,021 38,133,060 50,462,227 36,691,147
=========== =========== =========== ===========
FFO per share $ 0.43 $ 0.25 $ 0.82 $ 0.72
=========== =========== =========== ===========
Diluted
- -------
Weighted average shares outstanding-diluted EPS 47,805,758 38,333,046 45,224,600 36,872,837
Operating partnership units 5,352,198 -- 5,372,411 --
----------- ----------- ----------- -----------
Weighted average shares outstanding-diluted FFO 53,157,956 38,333,046 50,597,011 36,872,837
=========== =========== =========== ===========
FFO per share $ 0.43 $ 0.25 $ 0.82 $ 0.72
=========== =========== =========== ===========
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