Exhibit 99.2
[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:
T. Wilson Eglin Diane Hettwer Tim Grace
Chief Executive Officer Analyst Inquiries Media Inquiries
(212) 692-7200 (312) 640-6760 (312) 640-6667
FOR IMMEDIATE RELEASE
MONDAY, FEBRUARY 28, 2005
LEXINGTON CORPORATE PROPERTIES TRUST
ANNOUNCES $786.0 MILLION ACQUISITION OF
TWENTY-SEVEN PROPERTY PORTFOLIO FROM
WELLS REAL ESTATE FUNDS
New York, NY - February 28, 2005 - Lexington Corporate Properties Trust
(NYSE:LXP) ("Lexington"), a real estate investment trust, today announced that
it has entered into a definitive agreement to purchase twenty-four office
buildings, one industrial facility, one office/R & D facility and one
office/warehouse property (the "Properties") from affiliates of Wells Real
Estate Investment Trust, Inc. and Wells-affiliated joint venture partners The
office buildings contain 3.8 million square feet and the remaining three
properties contain 1.3 million square feet, and are predominantly leased to
single tenants in fourteen states. The purchase price equals $786.0 million
($155 psf). A detailed list of the Properties is attached to this press release.
The transaction is expected to close by the end of April, 2005, and is subject
to standard closing conditions.
E. Robert Roskind, Lexington's Chairman, commented, "This acquisition fits our
strategy very well and the timing is great. It is rare to have the opportunity
to acquire such a portfolio at any time, but this is especially good timing for
us considering the favorable financing environment and the significant range of
capital resources available to Lexington to fund an acquisition of this size."
Financing Of The Acquisition
To finance the acquisition, Lexington has arranged to obtain $558.3 million of
non-recourse first mortgage loans (the "Loans") from JPMorgan Chase Bank, N.A.,
secured by individual first mortgages on each of the Properties and on five
other properties which Lexington presently owns free and clear. Thirty-one
Loans, with an aggregate original principal amount of $540.7 million,
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will bear interest at a weighted average fixed rate of 5.20%. The remaining
Loan, with an original principal amount of $17.6 million, will bear interest at
a floating rate. The Loans will mature in six to ten years with a weighted
average maturity of approximately eight years, three months. The balance of the
purchase price is expected to come from equity commitments of existing joint
venture partners (approximately $73.7 million) and cash balances (approximately
$154.1 million). The Loans are subject to final documentation and standard
closing conditions.
Accretive Acquisition Of Office And Industrial Assets
Richard J. Rouse, Lexington's Vice Chairman and Chief Investment Officer, said,
"We are very pleased to announce this agreement to acquire a high quality
portfolio that complements our nationwide single-tenant office and industrial
platform and provides us with further portfolio diversification. We believe that
this is a highly accretive use of the capital we raised in December, 2004 from
our Series C Convertible Preferred Offering."
T. Wilson Eglin, Lexington's Chief Executive Officer, added, "The favorable
financing that we have arranged underscores the strength of this portfolio.
Assuming the transaction closes within the planned time frame, we are increasing
our guidance of funds from operations this year by $0.10 per share to a range of
$1.95 - $2.00 per share. This would result in a more conservative dividend
payout ratio. This conservative payout ratio will allow Lexington to retain
additional capital to fund growth and pay down debt."
Transaction Highlights
>> Lexington substantially exceeds previously forecasted acquisition
activity for 2005 with favorable earnings impact;
>> Increases Lexington's total assets under management to approximately
$3.8 billion;
>> Deployment of cash balances ahead of schedule enhances return on equity
and funds from operations; and
>> Enhanced portfolio diversification and balanced lease rollover.
About Lexington
Lexington 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 Monday, February
28, 2005 at $22.02 per share. Lexington pays an annualized dividend of $1.44 per
share. Additional information about Lexington is available at www.lxp.com
Lexington believes that funds from operations ("FFO") enhances an investor's
understanding of Lexington's financial condition, results of operations and cash
flows. Lexington 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
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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.
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) supply and demand for properties in our current and proposed
market areas, and (ii) those other factors and risks detailed in Lexington's
periodic filings with the Securities and Exchange Commission. Forward-looking
statements, which are based on certain assumptions and describe Lexington's
future plans, strategies and expectations, are generally identifiable by use of
the words "believes," "expects," "intends," "anticipates," "estimates,"
"projects" or similar expressions. 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.
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Lexington Corporate Properties Trust
Wells Portfolio Property Summary
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Year
Est. 1st Yr. Lease Square Constructed/
Property Location Tenants or Guarantors NOI ($000) Exps. Footage Renovated
- --------------------------------------------------------------------------------------------------------------
Office
- ------
275 South Valencia Ave. Bank of America $ 7,574 06/12 637,503 1983
Los Angeles, CA
6303 Barfield Road & Internet Security Systems, 5,398 05/13 289,000 2001
859 Mount Vernon Hwy. Inc. 2003
Atlanta, GA1
8900 Freeport Pkwy. Nissan North America, Inc. 4,427 03/13 268,445 2002
Dallas, TX
601 & 701 Experian Pkwy. TRW Inc./Experian 3,579 10/10 292,700 1981
Dallas, TX Information Solutions, Inc. 1983
110, 120, & 130 E. Shore Dr. Capital One Services, Inc. 2,800 03/10 68,500 2000
Richmond, VA2 05/06 77,045 1998
02/10 79,675 2000
2050 Roanoke Road Chrysler Financial Company 2,390 12/11 130,290 2001
Ft. Worth, TX LLC
27404 Drake Road Dana Corporation 2,331 10/21 112,480 1999
Farmington Hills, MI
1311 Broadfield Blvd. Transocean, Inc. 2,233 03/11 103,260 2000
Houston, TX Newpark Resources, Inc. 08/09 52,731
810-820 Gears Road IKON Office Solutions, Inc. 2,211 01/13 157,790 2000
Houston, TX
200 Lucent Lane Lucent Technologies, Inc. 1,996 09/11 120,000 1999
Raleigh, NC
8555 South River Pkwy. ASM Lithography Holding NV 1,939 06/13 95,133 1998
Tempe, AZ
10475 Crosspoint Blvd. John Wiley & Sons, Inc. 1,825 10/09 123,674 1999
Fishers, IN Robert Half International 04/05 2,960
United Student Aid Fund 07/05 14,413
3201 Quail Springs Pkwy. AT&T Wireless Services, Inc. 1,656 08/10 103,500 1999
Oklahoma City, OK Jordan Associates, Inc. 12/08 25,000
16676 Northcase Dr. Kerr-McGee Corporation 1,545 07/14 101,111 2003
Houston, TX
6200 Northwest Pkwy. PacifiCare Health Systems, 1,528 11/10 142,500 2000
San Antonio, TX Inc.
2550 Interstate Dr. AT&T Wireless Services, Inc. 1,412 11/08 81,859 1998
Harrisburg, PA
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Lexington Corporate Properties Trust
Wells Portfolio Property Summary
- ------------------------------------------------------------------------------------------------------------------
Year
Property Location Tenants or Guarantors Est. 1st Year Lease Square Constructed/
NOI ($000) Exps. Footage Renovated
- ------------------------------------------------------------------------------------------------------------------
15501 North Dial Blvd. The Dial Corporation 1,388 08/08 129,689 1998
Phoenix, AZ
2310 Village Square Pkwy. AmeriCredit Corporation 1,330 06/11 85,000 2001
Jacksonville, FL
4848 129th East Ave. Metris Companies, Inc. 1,307 01/10 101,100 2000
Tulsa, OK
4000 Johns Creek Pkwy. Kraft Foods North America, Inc. 1,214 01/12 73,264 2001
Atlanta, GA PerkinElmer Instruments LLC 11/16 13,955
2800 Waterford Lake Dr. Alstom Power, Inc. 1,175 10/14 99,057 2000
Richmond, VA
3940 South Teller St. Travelers Express Company, 1,091 03/12 68,165 2002
Lakewood, CO Inc.
5757 Decatur Blvd. Allstate Insurance Company 1,075 08/12 84,200 2002
Indianapolis, IN Holladay Property Services 09/06 5,756
Midwest Inc.
12600 Gateway Blvd. Gartner, Inc. 981 01/13 62,400 1997
Ft. Meyers, FL
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Subtotal - Office $ 54,405 3,802,155
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Industrial
- ----------
3820 Micro Drive Ingram Micro Inc. $ 2,035 09/11 701,819 1997
Memphis, TN
Office/R & D
6938 Elm Valley Dr. Dana Corporation 1,843 10/21 150,945 1999
Kalamazoo, MI
Warehouse/Office
- ----------------
3600 Army Post Rd. Electronic Data Systems 2,605 04/12 405,000 2002
Des Moines, IA Corp.
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Grand Total $ 60,888 5,059,919
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1 Three buildings - buildings one and two were constructed in 2001, and
building three was constructed in 2003.
2 Three buildings.
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