Exhibit 99.1
[FINANCIAL RELATIONS BOARD LOGO]
news 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
TUESDAY, AUGUST 2, 2005
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
RECORD SECOND QUARTER OPERATING RESULTS
New York, NY - August 2, 2005 - Lexington Corporate Properties Trust (NYSE:LXP),
a real estate investment trust ("Lexington"), today announced results for its
second quarter ended June 30, 2005.
Quarterly Highlights
- Closed on 33 investments for an aggregate capitalized cost of $945.6
million, including $393.1 million in joint ventures;
- Obtained $615.1 million in new non-recourse first mortgage financings
($260.0 million in joint ventures) at a weighted average fixed rate of
5.19%;
- Sold one non-core retail property, generating gain of $4.3 million;
- Extended three leases on portfolio properties;
- Repaid mortgage debt at a discount resulting in a $4.6 million gain,
net;
- Signed new lease for approximately 21,500 square feet in Hebron,
Kentucky; and
- Replaced existing $100 million credit facility with a new $200 million
unsecured revolving credit facility.
Quarterly Results
Funds from operations were $34.0 million, or $0.57 per diluted share/unit, for
the second quarter of 2005, after $4.6 million in debt satisfaction gains, net
($0.08 per diluted share/unit) and $0.6 million in impairment charges ($0.01 per
diluted share/unit), compared to $22.7 million, or $0.43 per diluted share/unit,
after $0.5 million ($0.01 per diluted share/unit) in impairment charges, for the
second quarter of 2004.
Rental revenues for the quarter totaled $46.2 million, compared to rental
revenues of $34.7 million for the same period last year. Net income allocable to
common shareholders was $11.8 million in the second quarter of 2005, including
$4.3 million of gains on sales, $4.6 million in debt satisfaction gains,
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net and $0.6 million of impairment charges, compared to $13.0 million, which
included $2.3 million of gains on sale and $0.5 million of impairment charges,
for the same period last year.
Six Month Results
For the six months ended June 30, 2005 FFO were $57.1 million, or $0.96 per
diluted share/unit, after $4.6 million in debt satisfaction gains, net ($0.08
per diluted share/unit) and $0.6 million in impairment charges ($0.01 per
diluted share/unit), compared to $41.6 million, after $2.2 million in impairment
charges ($0.04 per diluted share/unit), or $0.82 per diluted share/unit, for the
same period last year.
Rental revenues for the six months ended June 30, 2005 totaled $83.0 million,
compared to rental revenues of $65.3 million for the same period last year. Net
income allocable to common shareholders for the six months ended June 30, 2005
was $17.3 million, which includes $5.1 million of gains on sales, $4.6 million
in debt satisfaction gains, net and $0.6 million of impairment charges, compared
to $23.4 million, which includes $2.2 million in impairment charges and $4.1
million of gains on sale, for the same period last year.
Quarterly Dividends Declared
Lexington declared a common dividend of $0.36 per share, payable on August 15,
2005 to common shareholders of record on July 29, 2005. Lexington also declared
a dividend of $0.503125 per share on its Series B Cumulative Redeemable
Preferred Shares and $0.8125 per share on its Series C Cumulative Convertible
Preferred Shares, each payable on August 15, 2005 to preferred shareholders of
record on July 29, 2005.
Conference Call
Management will discuss the financial results on a conference call today at 2:00
pm Eastern Time. The toll-free dial in number is 800-218-0713. The replay of the
call will be available through August 9, 2005. The toll-free telephone number
for the replay is 800-405-2236, passcode 11033119. The international number is
303-262-2138 and a replay can be accessed via 303-590-3000, passcode 11033119.
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, "We are pleased to report that Lexington's funds from operations
per share reached a record level in the second quarter. Funds from operations
excluding one-time items were $0.50 per share, a 13.6% increase compared to the
second quarter last year. During the quarter, we made new investments, on our
own behalf and on behalf of joint ventures, totaling $946 million at an average
cap rate of 8.1% and enhanced our returns by obtaining $615.1 million of
non-recourse financing at an average fixed rate of 5.19%. These investments will
contribute to earnings growth over the balance of the year and in the future.
With our dividend payout now below our target level of 75% we believe our
prospects are good for additional dividend growth in 2006."
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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. The closing price of Lexington common shares on
the New York Stock Exchange Monday August 1, 2005 was $23.91 per share.
Lexington currently pays an annualized dividend of $1.44 per share. Additional
information about Lexington is available at www.lxp.com
Financial Tables Follow
- -----------------------
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.
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.
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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,
2005 2004 2005 2004
---- ---- ---- ----
Gross revenues:
Rental $ 46,208 $ 34,693 $ 82,967 $ 65,309
Advisory fees 2,556 777 3,191 1,727
Tenant reimbursements 2,106 1,347 2,994 2,794
-------- -------- -------- --------
Total gross revenues 50,870 36,817 89,152 69,830
Expense applicable to revenues:
Depreciation and amortization (18,111) (8,598) (29,874) (15,731)
Property operating (4,919) (2,229) (7,565) (4,451)
General and administrative (4,663) (2,537) (9,011) (6,008)
Non-operating income 206 640 892 756
Interest and amortization expense (16,426) (12,315) (29,096) (21,643)
Debt satisfaction gains, net 4,632 -- 4,632 --
-------- -------- -------- --------
Income before (provision) benefit for income taxes, minority
interests, equity in earnings of non-consolidated entities and
discontinued operations
11,589 11,778 19,130 22,753
(Provision) benefit for income taxes 29 (595) (67) (1,467)
Minority interests (1,497) (1,188) (2,347) (2,394)
Equity in earnings of non-consolidated entities 1,334 1,717 2,759 3,521
-------- -------- -------- --------
Income from continuing operations 11,455 11,712 19,475 22,413
-------- -------- -------- --------
Discontinued operations, net of minority interest:
Income from discontinued operations 769 1,056 1,562 2,329
Impairment charges (592) (478) (623) (2,212)
Gains on sales of properties 4,317 2,327 5,061 4,065
-------- -------- -------- --------
Total discontinued operations 4,494 2,905 6,000 4,182
-------- -------- -------- --------
Net income 15,949 14,617 25,475 26,595
Dividends attributable to preferred shares - Series B (1,590) (1,590) (3,180) (3,180)
Dividends attributable to preferred shares - Series C (2,519) -- (5,038) --
-------- -------- -------- --------
Net income allocable to common shareholders $ 11,840 $ 13,027 $ 17,257 $ 23,415
Depreciation and amortization 17,995 9,109 29,784 16,860
Minority interests - OP Units 1,394 1,180 2,251 2,109
Amortization of leasing commissions 129 183 253 365
Joint venture adjustment - depreciation 4,471 1,559 7,619 2,873
Preferred share dividend - Series C 2,519 -- 5,038 --
Gains on sales of properties (4,317) (2,327) (5,061) (4,065)
-------- -------- -------- --------
Funds from operations(2) $ 34,031 $ 22,731 $ 57,141 $ 41,557
======== ======== ======== ========
Rent below GAAP revenue(1) $ 1,290 $ 1,218 $ 1,349 $ 1,749
======== ======== ======== ========
Per share/unit
Basic net income $ 0.24 $ 0.27 $ 0.35 $ 0.52
Diluted net income $ 0.22 $ 0.27 $ 0.33 $ 0.52
Funds from operations(2)-basic $ 0.57 $ 0.43 $ 0.96 $ 0.82
Funds from operations(2)-diluted $ 0.57 $ 0.43 $ 0.96 $ 0.82
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
6/30/05 12/31/04
------- --------
Real estate, at cost $ 1,899,774 $ 1,407,872
Accumulated depreciation (200,371) (180,610)
Investment in joint ventures 159,387 132,738
Properties held for sale - discontinued 52,975 13,216
operations
Intangible assets, net 139,119 54,736
Cash and cash equivalents 42,380 146,957
Deferred expenses, net 13,316 7,860
Rent receivable 4,392 4,123
Rent receivable - deferred 24,807 23,923
Due from affiliates -- 45,800
Other assets 48,470 40,472
------------ ------------
$ 2,184,249 $ 1,697,087
============ ============
Mortgages and notes payable $ 1,220,834 $ 765,144
Liabilities - discontinued operations 16,753 1,688
Other liabilities 22,531 22,388
Prepaid rent 6,548 3,818
Minority interests 57,413 56,759
Shareholders' equity 860,170 847,290
------------ ------------
$ 2,184,249 $ 1,697,087
============ ============
Common shares 49,301,514 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
------------ ------------
60,936,013 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.
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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,
2005 2004 2005 2004
---- ---- ---- ----
Earning Per Share
- -----------------
Basic
Income from continuing operations $ 11,455 $ 11,712 $ 19,475 $ 22,413
Less preferred dividends (4,109) (1,590) (8,218) (3,180)
------------ ------------ ------------ ------------
Income allocable to common shareholders from continuing
operations - basic 7,346 10,122 11,257 19,233
Total income from discontinued operations - basic 4,494 2,905 6,000 4,182
------------ ------------ ------------ ------------
Net income allocable to common shareholders $ 11,840 $ 13,027 $ 17,257 $ 23,415
============ ============ ============ ============
Weighted average number of common shares outstanding 48,593,332 47,704,823 48,472,665 45,089,816
============ ============ ============ ============
Per share data:
Income from continuing operations $ 0.15 $ 0.21 $ 0.23 $ 0.43
Income from discontinued operations 0.09 0.06 0.12 0.09
------------ ------------ ------------ ------------
Net income $ 0.24 $ 0.27 $ 0.35 $ 0.52
============ ============ ============ ============
Diluted
Income allocable to common shareholders from continuing
operations-basic $ 7,346 $ 10,122 $ 11,257 $ 19,233
Adjustments:
Incremental income attributed to assumed conversion of
dilutive securities 169 -- 743 --
------------ ------------ ------------ ------------
Income allocable to common shareholders from
continuing operations-diluted 7,515 10,122 12,000 19,233
Total income from discontinued operations - diluted 4,494 2,905 6,000 4,182
------------ ------------ ------------ ------------
Net income allocable to common shares - diluted $ 12,009 $ 13,027 $ 18,000 $ 23,415
============ ============ ============ ============
Weighted average number of shares used in calculation
of basic earnings per share 48,593,332 47,704,823 48,472,665 45,089,816
Add incremental shares representing:
Shares issuable upon exercises of employee share
options 80,928 100,935 77,748 134,784
Shares issuable upon conversion of dilutive securities 5,308,392 -- 5,308,392 --
------------ ------------ ------------ ------------
Weighted average number of shares used in calculation of
diluted earnings per common share 53,982,652 47,805,758 53,858,805 45,224,600
============ ============ ============ ============
Per share data:
Income from continuing operations - diluted $ 0.14 $ 0.21 $ 0.22 $ 0.43
Income from discontinued operations - diluted 0.08 0.06 0.11 0.09
------------ ------------ ------------ ------------
Net income - diluted $ 0.22 $ 0.27 $ 0.33 $ 0.52
============ ============ ============ ============
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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,
2005 2004 2005 2004
---- ---- ---- ----
Funds From Operations
- ---------------------
Basic and Diluted
- -----------------
Net income allocable to common shareholders - basic $ 11,840 $ 13,027 $ 17,257 $ 23,415
Adjustments:
Depreciation and amortization 17,995 9,109 29,784 16,860
Minority interests-OP Units 1,394 1,180 2,251 2,109
Amortization of leasing commissions 129 183 253 365
Joint venture adjustment-depreciation 4,471 1,559 7,619 2,873
Preferred share dividend - Series C 2,519 -- 5,038 --
Gains on sale of properties (4,317) (2,327) (5,061) (4,065)
------------ ------------ ------------ ------------
Funds from operations $ 34,031 $ 22,731 $ 57,141 $ 41,557
============ ============ ============ ============
Basic
- -----
Weighted average shares outstanding-basic EPS 48,593,332 47,704,823 48,472,665 45,089,816
Operating partnership units 5,374,499 5,352,198 5,380,357 5,372,411
Series C Preferred shares 5,779,330 -- 5,779,330 --
------------ ------------ ------------ ------------
Weighted average shares outstanding-basic FFO 59,747,161 53,057,021 59,632,352 50,462,227
============ ============ ============ ============
FFO per share $ 0.57 $ 0.43 $ 0.96 $ 0.82
============ ============ ============ ============
Diluted
- -------
Weighted average shares outstanding-diluted EPS 53,982,652 47,805,758 53,858,805 45,224,600
Operating partnership units 5,374,499 5,352,198 5,380,357 5,372,411
Series C Preferred shares 5,779,330 -- 5,779,330 --
Non-dilutive convertible securities (5,308,392) -- (5,308,392) --
------------ ------------ ------------ ------------
Weighted average shares outstanding-diluted FFO 59,828,089 53,157,956 59,710,100 50,597,011
============ ============ ============ ============
FFO per share $ 0.57 $ 0.43 $ 0.96 $ 0.82
============ ============ ============ ============
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