Exhibit 99.1
[FINANCIAL RELATIONS BOARD LOGO]
[NEWS 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 MAY 5, 2005
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
FIRST QUARTER RESULTS
New York, NY - May 5, 2005- Lexington Corporate Properties Trust (NYSE:LXP)
("Lexington"), a real estate investment trust, today announced results for its
first quarter ended March 31, 2005.
First Quarter Highlights
- ------------------------
o Acquired one property for $12 million at a GAAP cap rate of 9.5%;
o Sold two non-core properties for $0.8 million in excess of aggregate
book value;
o Expanded equity base by approximately $20 million by issuing
convertible preferred shares which were subject to an over-allotment
option;
o Obtained $45.8 million non-recourse mortgage financings secured by
three properties at a weighted average fixed interest rate of 5.05% in
one joint venture program; and
o Extended leases on three properties including one in a joint venture
program.
Quarterly Results
Funds from operations were $23.1 million, or $0.39 per diluted common
share/unit, for the first quarter of 2005. This compares to $18.8 million, or
$0.39 per diluted common share/unit, for the first quarter of 2004, net of $1.7
million in impairment charges. Lexington operated with greater cash balances and
vacancy than in the prior year and this limited growth in FFO per share.
Rental revenues for the quarter totaled $37.5 million, compared to rental
revenues of $31.3 million for the same period last year. Net income allocable to
common shareholders was $5.4 million in the first quarter of 2005, after $0.7
million in gains on sale of properties, or $0.11 per diluted common share/unit.
This compares to $10.4 million, after the impact of $1.7 million impairment
charges and $1.7 million in gains on sale of properties, or $0.24 per diluted
common share/unit, for the same period last year.
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Conference Call
Management will discuss the financial results and Lexington's business plan on a
conference call today at 2:00 p.m. Eastern time. The toll-free dial-in number is
800-218-0530. A replay of the conference call will be available through May 12,
2005. The toll-free telephone number for the replay is 800-405-2236, passcode
11027853. International callers can access the conference call by dialing
303-262-2131 and the replay by dialing 303-590-3000 (same passcode). The
conference call can also be accessed on the internet at http://www.lxp.com.
Comments From Management
Commenting on Lexington's financial results, T. Wilson Eglin, Chief Executive
Officer said, "First quarter funds from operations per share were impacted by
extremely high cash balances of approximately $150 million, substantially all of
which were invested in the Wells acquisition which closed on April 13, 2005. As
a result, we expect to report strong growth in funds from operations per share
during the balance of this year."
Mr. Eglin added, "We also made good progress on the leasing front, extending
leases with three of our tenants and signing a new lease in the second quarter
for approximately 21,000 square feet at our formerly vacant facility in Hebron,
Kentucky. In addition, we sold two non-core retail properties at favorable
prices. More recently, in the second quarter we sold our Columbia, Maryland
retail property, a property we purchased in 1998, for approximately $11.6
million - a price $5.0 million in excess of our investment in the property. This
is further evidence of the tremendous increase in property values and our own
net asset value per share in recent years."
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, May 4, 2005 at $23.85 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 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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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. Forward-looking
statements, which are based on certain assumptions and describe the Company'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.
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
March 31,
2005 2004
---- ----
Gross revenues:
Rental $ 37,459 $ 31,311
Advisory fees 634 950
Tenant reimbursements 549 1,512
Total gross revenues 38,642 33,773
------------ ------------
Expense applicable to revenues:
Depreciation and amortization (11,913) (7,284)
Property operating (2,313) (2,287)
General and administrative (4,347) (3,475)
Non-operating income 684 114
Interest and amortization expense (12,671) (9,327)
------------ ------------
Income before provision for income taxes, minority interests,
equity in earnings of non-consolidated entities and
discontinued operations 8,082 11,514
Provision for income taxes (96) (872)
Minority interests (881) (1,239)
Equity in earnings of joint ventures 1,425 1,804
------------ ------------
Income from continuing operations 8,530 11,207
------------ ------------
Discontinued operations, net of minority interest:
Income from discontinued operations 282 766
Impairment charges (30) (1,732)
Gains on sales of properties 744 1,737
------------ ------------
Total discontinued operations 996 771
------------ ------------
Net income 9,526 11,978
Dividends attributable to preferred shares - Series B (1,590) (1,590)
Dividends attributable to preferred shares - Series C (2,519) -
------------ ------------
Net income allocable to common shareholders $ 5,417 $ 10,388
Depreciation and amortization 11,789 7,752
Minority interests - OP Units 857 928
Amortization of leasing commissions 124 181
Joint venture adjustment - depreciation 3,148 1,314
Preferred share dividend - Series C 2,519 -
Gains on sales of properties (744) (1,737)
------------ ------------
Funds from operations(2) $ 23,110 $ 18,826
============ ============
Rent below GAAP revenue(1) $ 59 $ 531
============ ============
Per share/unit
Basic net income $ 0.11 $ 0.24
Diluted net income $ 0.11 $ 0.24
Funds from operations(2)-basic $ 0.39 $ 0.39
Funds from operations(2)-diluted $ 0.39 $ 0.39
Lexington Corporate Properties
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
3/31/05 12/31/04
------- --------
Real estate, at cost $ 1,414,201 $ 1,407,872
Accumulated depreciation (190,643) (180,610)
Investment in joint ventures 132,526 132,738
Properties held for sale - discontinued operations 17,162 13,216
Intangible assets, net 54,280 54,736
Cash and cash equivalents 150,551 146,957
Deferred expenses, net 8,346 7,860
Rent receivable 421 4,123
Rent receivable - deferred 23,516 23,923
Due from affiliates - 45,800
Other assets 93,983 40,472
------------------- -------------------
$ 1,704,343 $ 1,697,087
=================== ===================
Mortgages and notes payable $ 758,487 $ 765,144
Liabilities - discontinued operations 959 1,688
Other liabilities 20,000 22,388
Prepaid rent 7,702 3,818
Minority interests 55,449 56,759
Shareholders' equity 861,746 847,290
------------------- -------------------
$ 1,704,343 $ 1,697,087
=================== ===================
Common shares 49,133,925 48,621,273
Preferred shares - Series B 3,160,000 3,160,000
Preferred shares - Series C 3,100,000 2,700,000
Operating partnership units 5,374,499 5,408,699
------------------- -------------------
60,768,424 59,889,972
=================== ===================
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.
Lexington Corporate Properties
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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,
2005 2004
---- ----
Earning Per Share
- -----------------
Basic
Income from continuing operations $ 8,530 $ 11,207
Less preferred dividends (4,109) (1,590)
------------- -------------
Income allocable to common shareholders from continuing
operations - basic 4,421 9,617
Total income from discontinued operations - basic 996 771
------------- -------------
Net income allocable to common shareholders $ 5,417 $ 10,388
============= =============
Weighted average number of common shares outstanding 48,350,656 42,474,808
============= =============
Per share data:
Income from continuing operations $ 0.09 $ 0.23
Income from discontinued operations 0.02 0.01
------------- -------------
Net income $ 0.11 $ 0.24
============= =============
Diluted
Income allocable to common shareholders from continuing
operations-basic $ 4,421 $ 9,617
Adjustments:
Incremental income attributed to assumed conversion
of dilutive securities - -
------------- -------------
Income allocable to common shareholders from
continuing operations-diluted 4,421 9,617
Total income from discontinued operations - diluted 996 771
------------- -------------
Net income allocable to common shareholders - diluted $ 5,417 $ 10,388
============= =============
Weighted average number of shares used in calculation
of basic earnings per share 48,350,656 42,474,808
Add incremental shares representing:
Shares issuable upon exercises of employee
share options 79,289 179,080
Shares issuable upon conversion of dilutive
securities - -
------------- -------------
Weighted average number of shares used in calculation of
diluted earnings per common share 48,429,945 42,653,888
============= =============
Per share data:
Income from continuing operations - diluted $ 0.09 $ 0.23
Income from discontinued operations - diluted 0.02 0.01
------------- -------------
Net income - diluted $ 0.11 $ 0.24
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Lexington Corporate Properties
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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,
2005 2004
---- ----
Funds From Operations
- ---------------------
Basic and Diluted
- -----------------
Net income allocable to common shareholders $ 5,417 $ 10,388
Adjustments:
Depreciation and amortization 11,789 7,752
Minority interests-OP Units 857 928
Amortization of leasing commissions 124 181
Joint venture adjustment-depreciation 3,148 1,314
Preferred dividends-Series C 2,519 -
Gains on sale of properties (744) (1,737)
--------------- ---------------
Funds from operations $ 23,110 $ 18,826
=============== ===============
Basic
- -----
Weighted average shares outstanding-basic EPS 48,350,656 42,474,808
Operating partnership units 5,386,281 5,392,625
Preferred shares - Series C 5,779,330 -
--------------- ---------------
Weighted average shares outstanding-basic FFO 59,516,267 47,867,433
=============== ===============
FFO per share $ 0.39 $ 0.39
=============== ===============
Diluted
- -------
Weighted average shares outstanding-diluted EPS 48,429,945 42,653,888
Operating partnership units 5,386,281 5,392,625
Preferred shares - Series C 5,779,330 -
--------------- ---------------
Weighted average shares outstanding-diluted FFO 59,595,556 48,046,513
=============== ===============
FFO per share $ 0.39 $ 0.39
=============== ===============
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