Exhibit 99.1
[FINANCIAL RELATIONS BOARD LOGO] 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 Tim Grace
Chief Financial Officer Analyst Inquiries Media Inquiries
(212) 692-7200 (312) 640-6760 (312) 640-6667
FOR IMMEDIATE RELEASE
Thursday, October 28, 2004
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
THIRD QUARTER OPERATING RESULTS
New York, NY - October 28, 2004 - Lexington Corporate Properties Trust
(NYSE:LXP) ("Lexington"), a real estate investment trust, today announced
results for its third quarter ended September 30, 2004.
Quarterly Highlights
- - Closed on 10 investments for an aggregate capitalized cost of $257.5
million, including $161.0 million in joint ventures;
- - Obtained $79.2 million in new non-recourse first mortgage financings at a
weighted-average fixed rate of 5.21%, including $58.9 million at a
weighted-average fixed rate of 5.16% for joint ventures;
- - Signed three lease extensions on portfolio properties; and
- - Sold two properties for net proceeds of $13.7 million.
Quarterly Results
Funds from operations ("FFO") were $23.6 million, or $0.44 per diluted
share/unit, for the third quarter of 2004, after a non-cash impairment charge of
$0.6 million ($0.01 per diluted share/unit) relating to three properties and a
$0.5 million ($0.01 per diluted share/unit) expense relating to the departure of
a senior executive, compared to $18.3 million, or $0.45 per diluted share/unit,
for the third quarter of 2003.
Rental revenue for the quarter totaled $35.7 million, compared to $27.4 million
for the same period last year. Net income allocable to common shareholders for
the third quarter of 2004 was $9.6 million, which includes $0.6 million of
impairment charges relating to three properties and $0.5 million in expenses
relating to the departure of a senior executive, compared to $8.4 million for
the same period last year.
MORE
LEXINGTON CORPORATE PROPERTIES TRUST
ADD 1
Nine Month Results
For the nine months ended September 30, 2004, FFO were $65.1 million, or $1.26
per diluted share/unit, compared to $44.8 million, after $7.7 million of debt
satisfaction charges ($0.20 per diluted share/unit), or $1.18 per diluted
share/unit, for the same period last year.
Rental revenue for the nine months ended September 30, 2004 totaled $101.6
million, compared to $78.9 million for the same period last year. Net income
allocable to common shareholders for the nine months ended September 30, 2004
was $33.0 million, which includes $4.1 million of gains on sales of four
properties, $2.8 million of impairment charges relating to three properties, and
$0.5 million in expenses relating to the departure of a senior executive,
compared to $19.4 million, which included $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
Lexington declared a common dividend of $0.35 per share, payable on November 15,
2004 to common shareholders of record on October 29, 2004. Lexington also
declared a dividend on its Series B Cumulative Redeemable Preferred Shares of
$0.503125 per preferred share, payable on November 15, 2004 to preferred
shareholders of record on October 29, 2004.
Conference Call
Management will discuss the financial results on a conference call today at
2:00p.m. Eastern Time. The toll-free dial in number is 800-218-0204. The replay
of the call will be available through November 4, 2004. The toll-free telephone
number for the replay is 800-405-2236, passcode 11009845. The international
number is 303-262-2131 and a replay can be accessed via 303-590-3000, passcode
11009845. The conference call can also be accessed on the internet at
www.lxp.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, "This was a great quarter for Lexington. Before the impairment
charge, funds from operations per diluted share/unit would have been the same as
in the third quarter last year even though our cash position increased by $94
million over the last twelve months and quarterly revenue was impacted by the
loss of $717,000 of rental revenue due to two vacancies. During the quarter,
Lexington continued to implement a growth-oriented business plan by making new
investments totaling $257.5 million. Year-to-date, Lexington has invested $137.4
million of capital in $673.1 million of property investments. These investments,
together with others scheduled to close this quarter, are expected to lead to
funds from operations of $0.45-$0.47 per diluted share/unit in the fourth
quarter and $1.76 -$1.78 of funds from operations per diluted share/unit for
2004, before the $0.05 per diluted share/unit in impairment charges. We continue
to believe that Lexington is well-positioned to deliver growth in funds from
operations per diluted share/unit of 8-10% in 2005."
MORE
LEXINGTON CORPORATE PROPERTIES TRUST
ADD 2
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, October 27, 2004, at $22.54 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 Lexington's control
which may cause actual results, performance or achievements of Lexington 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, (i) the failure to continue to qualify as a real estate investment
trust, (ii) changes in general business and economic conditions, (iii)
competition, (iv) increases in real estate construction costs, (v) changes in
interest rates, (vi) changes in accessibility of debt and equity capital
markets, and (vii) those other factors and risks detailed in Lexington's
periodic filings with the Securities and Exchange Commission. Lexington
undertakes no obligation to publicly release the results of any revisions to
those forward-looking statements which may be made to reflect events or
circumstances after the occurrence of unanticipated events. Accordingly, there
is no assurance that Lexington's expectations will be realized.
MORE
LEXINGTON CORPORATE PROPERTIES TRUST
ADD 3
LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Gross revenues:
Rental $ 35,662 $ 27,409 $ 101,605 $ 78,926
Advisory fees 1,448 184 3,174 690
Tenant reimbursements 1,396 1,106 4,270 3,439
--------- --------- --------- ---------
Total gross revenues 38,506 28,699 109,049 83,055
Expense applicable to revenues:
Depreciation and amortization (11,198) (7,093) (28,264) (20,203)
Property operating (2,999) (2,193) (8,076) (6,037)
General and administrative (3,969) (2,617) (9,990) (7,291)
Non-operating income 1,815 789 2,586 1,303
Interest and amortization expense (12,578) (8,314) (34,254) (27,425)
Debt satisfaction charges -- -- -- (7,685)
--------- --------- --------- ---------
Income before provision for income taxes, minority interests
and equity in earnings of joint ventures 9,577 9,271 31,051 15,717
Provision for income taxes (243) -- (1,497) --
Minority interests (766) (1,512) (2,985) (2,390)
Equity in earnings of joint ventures 1,862 1,414 5,383 4,156
--------- --------- --------- ---------
Income from continuing operations 10,430 9,173 31,952 17,483
--------- --------- --------- ---------
Discontinued operations, net of minority interest:
Income from discontinued operations 1,295 789 4,516 2,582
Impairment charge (562) -- (2,775) --
Gains on sales of properties -- -- 4,065 1,143
--------- --------- --------- ---------
Total discontinued operations 733 789 5,806 3,725
--------- --------- --------- ---------
Net income 11,163 9,962 37,758 21,208
Dividends attributable to preferred shares - Series B (1,590) (1,590) (4,770) (1,802)
--------- --------- --------- ---------
Net income allocable to common shareholders $ 9,573 $ 8,372 $ 32,988 $ 19,406
Depreciation and amortization 11,014 7,109 27,874 20,330
Minority interests-OP Units 771 1,603 2,880 2,704
Amortization of leasing commissions 184 206 549 606
Joint venture adjustment-depreciation 2,029 978 4,902 2,867
Gains on sales of properties -- -- (4,065) (1,143)
--------- --------- --------- ---------
Funds from operations(2) $ 23,571 $ 18,268 $ 65,128 $ 44,770
========= ========= ========= =========
Rent below GAAP revenue(1) $ 1,111 $ 868 $ 2,860 $ 3,018
========= ========= ========= =========
Per share/unit
Basic net income $ 0.20 $ 0.24 $ 0.72 $ 0.60
Diluted net income $ 0.19 $ 0.24 $ 0.71 $ 0.58
Funds from operations(2)-basic $ 0.44 $ 0.46 $ 1.27 $ 1.18
Funds from operations(2)-diluted $ 0.44 $ 0.45 $ 1.26 $ 1.18
MORE
LEXINGTON CORPORATE PROPERTIES TRUST
ADD 4
LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
9/30/04 12/31/03
Real estate, at cost $ 1,335,650 $ 1,162,395
Accumulated depreciation (180,660) (160,623)
Investment in joint ventures 123,574 69,225
Properties held for sale - discontinued operations 39,327 36,478
Intangible assets, net 27,464 14,736
Cash and cash equivalents 106,123 15,923
Deferred expenses, net 9,232 10,013
Accounts receivable 136 -
Rent receivable - deferred 25,313 24,069
Other assets 44,057 35,195
--------------- ---------------
$ 1,530,216 $ 1,207,411
=============== ===============
Mortgages and notes payable $ 725,845 $ 551,385
Other liabilities 16,282 10,667
Prepaid rent 5,508 2,482
Minority interests 58,538 59,220
Shareholders' equity 724,043 583,657
--------------- ---------------
$ 1,530,216 $ 1,207,411
=============== ===============
Common shares 48,464,996 40,682,001
Preferred shares-Series B 3,160,000 3,160,000
Operating partnership units 5,328,858 5,430,454
--------------- ---------------
56,953,854 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.
MORE
LEXINGTON CORPORATE PROPERTIES TRUST
ADD 5
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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Earning Per Share
- -----------------
Basic
Income from continuing operations $ 10,430 $ 9,173 $ 31,952 $ 17,483
Less preferred dividends (1,590) (1,590) (4,770) (1,802)
------------ ------------ ------------ ------------
Income allocable to common shareholders from
continuing operations - basic 8,840 7,583 27,182 15,681
Total income from discontinued operations - basic 733 789 5,806 3,725
------------ ------------ ------------ ------------
Net income allocable to common shareholders $ 9,573 $ 8,372 $ 32,988 $ 19,406
============ ============ ============ ============
Weighted average number of common shares outstanding 47,901,818 34,780,279 46,033,992 32,579,011
============ ============ ============ ============
Per share data:
Income from continuing operations $ 0.18 $ 0.22 $ 0.59 $ 0.48
Income from discontinued operations 0.02 0.02 0.13 0.12
------------ ------------ ------------ ------------
Net income $ 0.20 $ 0.24 $ 0.72 $ 0.60
============ ============ ============ ============
Diluted
Income allocable to common shareholders from
continuing operations-basic $ 8,840 $ 7,583 $ 27,182 $ 15,681
Adjustments:
Incremental earnings attributed to assumed
conversion of dilutive securities 761 -- 2,980 2,390
------------ ------------ ------------ ------------
Income allocable to common shareholders from
continuing operations-diluted 9,601 7,583 30,162 18,071
Total income from discontinued operations - diluted 744 789 6,397 4,151
------------ ------------ ------------ ------------
Net income allocable to common shares - diluted $ 10,345 $ 8,372 $ 36,559 $ 22,222
============ ============ ============ ============
Weighted average number of shares used in calculation
of basic earnings per share 47,901,818 34,780,279 46,033,992 32,579,011
Add incremental shares representing:
Shares issuable upon exercises of employee share
options 118,533 193,151 129,695 188,988
Shares issuable upon conversion of dilutive securities 5,329,395 -- 5,357,968 5,221,564
------------ ------------ ------------ ------------
Weighted average number of shares used in calculation of
diluted earnings per common share 53,349,746 34,973,430 51,521,655 37,989,563
============ ============ ============ ============
Per share data:
Income from continuing operations - diluted $ 0.18 $ 0.22 $ 0.59 $ 0.47
Income from discontinued operations - diluted 0.01 0.02 0.12 0.11
------------ ------------ ------------ ------------
Net income - diluted $ 0.19 $ 0.24 $ 0.71 $ 0.58
============ ============ ============ ============
MORE
LEXINGTON CORPORATE PROPERTIES
ADD 6
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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Funds From Operations
- ---------------------
Basic and Diluted
- -----------------
Net income allocable to common shareholders - basic $ 9,573 $ 8,372 $ 32,988 $ 19,406
Adjustments:
Depreciation and amortization 11,014 7,109 27,874 20,330
Minority interests-OP Units 771 1,603 2,880 2,704
Amortization of leasing commissions 184 206 549 606
Joint venture adjustment-depreciation 2,029 978 4,902 2,867
Gains on sale of properties -- -- (4,065) (1,143)
------------ ------------ ------------ ------------
Funds from operations $ 23,571 $ 18,268 $ 65,128 $ 44,770
============ ============ ============ ============
Basic
- -----
Weighted average shares outstanding-basic EPS 47,901,818 34,780,279 46,033,992 32,579,011
Operating partnership units 5,329,395 5,202,975 5,357,968 5,221,564
------------ ------------ ------------ ------------
Weighted average shares outstanding-basic FFO 53,231,213 39,983,254 51,391,960 37,800,575
============ ============ ============ ============
FFO per share $ 0.44 $ 0.46 $ 1.27 $ 1.18
============ ============ ============ ============
Diluted
- -------
Weighted average shares outstanding-diluted EPS 53,349,746 34,973,430 51,521,655 37,989,563
Operating partnership units -- 5,202,975 -- --
------------ ------------ ------------ ------------
Weighted average shares outstanding-diluted FFO 53,349,746 40,176,405 51,521,655 37,989,563
============ ============ ============ ============
FFO per share $ 0.44 $ 0.45 $ 1.26 $ 1.18
============ ============ ============ ============
###