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 Lisa Fortuna Tim Grace
Chief Financial Officer Analyst Inquiries Media Inquiries
(212) 692-7200 (312) 640-6779 (312) 640-6667
FOR IMMEDIATE RELEASE
THURSDAY APRIL 27, 2006
LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES
FIRST QUARTER RESULTS
New York, NY - April 27, 2006 - Lexington Corporate Properties Trust (NYSE:LXP)
("Lexington"), a real estate investment trust, today announced results for its
first quarter ended March 31, 2006.
First Quarter Highlights
- ------------------------
o Acquired two properties for $44.1 million;
o Sold two non-core properties resulting in an aggregate gain of $2.3
million;
o Obtained $74.4 million of non-recourse mortgage financings (including
joint ventures) secured by four properties at a weighted average fixed
interest rate of 5.59%; and
o Signed first lease for 48,000 square feet in formerly vacant Dallas,
Texas property.
Quarterly Results
Funds from operations ("FFO") were $28.7 million, or $0.45 per diluted common
share/unit, net of $1.0 million in debt satisfaction charges ($0.02 per diluted
common share/unit), for the first quarter of 2006. This compares to FFO of $23.1
million, or $0.39 per diluted common share/unit, for the first quarter of 2005.
Rental revenues for the quarter totaled $48.5 million, compared to rental
revenues of $35.5 million for the same period last year. Net income allocable to
common shareholders was $2.0 million in the first quarter of 2006, after $2.3
million in gains on sale of properties and $1.0 million in debt satisfaction
charges, or $0.04 per diluted common share/unit. This compares to $5.4 million
of net income allocable to common shareholders, after the impact of $0.7 million
in gains on sale of properties, or $0.11 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
800-240-7305. A replay of the conference call will be available through May 4,
2006. The toll-free telephone number for the replay is 800-405-2236, passcode
11058112. International callers can access the conference call by dialing
303-205-0033 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, "Lexington's operating results for the first quarter of 2006
showed strong growth compared to the prior year. Funds from operations per share
excluding debt satisfaction charges were $0.47 per share, compared to $0.39 per
share for the same period last year representing an increase of about 21%. The
debt satisfaction charges mainly related to the refinancing of a property that
was recently expanded on terms that we believe created significant value. Our
modest acquisition volume of $44.1 million reflects highly competitive market
conditions and our belief that we should maintain our balance sheet flexibility
until investment opportunities are more favorable. During the first quarter we
signed our first lease at our formerly vacant Dallas, Texas property and sold
two properties which generated gains of $2.3 million. Subsequent to quarter end,
we sold another property for $29.0 million - almost $10.0 million more than we
acquired it for a little over four years ago. These dispositions reflect the
significant increase in our net asset value per share that has occurred over the
last several years."
About Lexington
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, April 26, 2006 at $20.88 per share. Lexington currently
pays an annualized dividend of $1.46 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,
2006 2005
---- ----
Gross revenues:
Rental $ 48,513 $ 35,486
Advisory fees 1,063 634
Tenant reimbursements 4,433 883
------- -------
Total gross revenues 54,009 37,003
Expense applicable to revenues:
Depreciation and amortization (20,241) (11,550)
Property operating (7,895) (2,637)
General and administrative (5,616) (4,345)
Non-operating income 795 684
Interest and amortization expense (17,892) (12,220)
Debt satisfaction charge (947) -
------- -------
Income before benefit (provision) for income
taxes, minority interests, equity in earnings
of non-consolidated entities and discontinued
operations 2,213 6,935
Benefit (provision) for income taxes 73 (96)
Minority interests (493) (828)
Equity in earnings of non-consolidated entities 1,245 1,425
------- -------
Income from continuing operations 3,038 7,436
------- -------
Discontinued operations, net of minority interest and taxes:
Income from discontinued operations 799 1,376
Debt satisfaction charge (78) -
Impairment charge - (30)
Gains on sales of properties 2,319 744
------- -------
Total discontinued operations 3,040 2,090
------- -------
Net income 6,078 9,526
Dividends attributable to preferred shares - Series B (1,590) (1,590)
Dividends attributable to preferred shares - Series C (2,519) (2,519)
-------- --------
Net income allocable to common shareholders $ 1,969 $ 5,417
======= =======
Funds from operations(1) $ 28,653 $ 23,110
======= =======
Per share/unit:
Basic net income $ 0.04 $ 0.11
Diluted net income $ 0.04 $ 0.11
Funds from operations(1)-basic $ 0.45 $ 0.39
Funds from operations(1)-diluted $ 0.45 $ 0.39
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LEXINGTON CORPORATE PROPERTIES TRUST
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
3/31/06 12/31/05
------- --------
Real estate, at cost $ 1,879,441 $ 1,883,115
Accumulated depreciation (243,820) (241,188)
Investment in joint ventures 187,741 191,146
Properties held for sale - discontinued 38,892 49,397
operations
Intangible assets, net 140,074 128,775
Cash and cash equivalents 61,278 53,515
Deferred expenses, net 14,404 13,582
Rent receivable 3,226 7,673
Rent receivable - deferred 24,795 24,778
Other assets 55,796 49,439
---------------- ----------------
$ 2,161,827 $ 2,160,232
================ ================
Mortgages and notes payable $ 1,172,478 $ 1,139,971
Liabilities - discontinued operations 19,730 32,145
Other liabilities 28,964 35,434
Minority interests 60,043 61,372
Shareholders' equity 880,612 891,310
---------------- ----------------
$ 2,161,827 $ 2,160,232
================ ================
Common shares 52,866,743 52,155,855
Preferred shares - Series B 3,160,000 3,160,000
Preferred shares - Series C 3,100,000 3,100,000
Operating partnership units 5,629,916 5,720,071
---------------- ----------------
64,756,659 64,135,926
================ ================
1 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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AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
AND FUNDS FROM OPERATIONS PER SHARE
(dollars in thousands, except per share data)
Three Months Ended
March 31,
2006 2005
---- ----
Earnings Per Share
- ------------------
Basic
Income from continuing operations $ 3,038 $ 7,436
Less preferred dividends (4,109) (4,109)
------------- ------------
Income (loss) allocable to common shareholders from
continuing operations - basic (1,071) 3,327
Total income from discontinued operations - basic 3,040 2,090
------------- ------------
Net income allocable to common shareholders - basic $ 1,969 $ 5,417
============ ============
Weighted average number of common shares outstanding 51,844,001 48,350,656
============ ============
Per share data:
Income (loss) from continuing operations $ (0.02) $ 0.07
Income from discontinued operations 0.06 0.04
------------- ------------
Net income - basic $ 0.04 $ 0.11
============ ============
Diluted
Income (loss) allocable to common shareholders
from continuing operations-basic $ (1,071) $ 3,327
Adjustments:
Incremental income attributed to assumed
conversion of dilutive securities - -
------------- ------------
Income (loss) allocable to common shareholders
from continuing operations-diluted (1,071) 3,327
Total income from discontinued operations - diluted 3,040 2,090
------------- ------------
Net income allocable to common shareholders - diluted $ 1,969 $ 5,417
============ ============
Weighted average number of shares used in
calculation of basic earnings per share 51,844,001 48,350,656
Add incremental shares representing:
Shares issuable upon exercises of
employee share options - 79,289
Shares issuable upon conversion of
dilutive securities - -
------------- ------------
Weighted average number of shares used in
calculation of diluted earnings per common share 51,844,001 48,429,945
============ ============
Per share data:
Income (loss) from continuing operations - diluted $ (0.02) $ 0.07
Income from discontinued operations - diluted 0.06 0.04
------------- ------------
Net income - diluted $ 0.04 $ 0.11
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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,
2006 2005
---- ----
Funds From Operations
- ---------------------
Basic and Diluted
- -----------------
Net income allocable to common shareholders $ 1,969 $ 5,417
Adjustments:
Depreciation and amortization 20,127 11,789
Minority interests-OP Units 687 857
Amortization of leasing commissions 139 124
Joint venture adjustment-depreciation 5,482 3,148
Preferred dividends-Series C 2,519 2,519
Gains on sale of properties (2,319) (744)
Taxes incurred on sale of property 49 -
---------- ----------
Funds from operations $ 28,653 $ 23,110
========== ==========
Basic
- -----
Weighted average shares outstanding-basic EPS 51,844,001 48,350,656
Operating partnership units 5,653,092 5,386,281
Preferred shares - Series C 5,779,330 5,779,330
---------- ----------
Weighted average shares outstanding-basic FFO 63,276,423 59,516,267
========== ==========
FFO per share $ 0.45 $ 0.39
========== ==========
Diluted
- -------
Weighted average shares outstanding-diluted EPS 51,844,001 48,429,945
Common share options 32,069 -
Operating partnership units 5,653,092 5,386,281
Preferred shares - Series C 5,779,330 5,779,330
---------- ----------
Weighted average shares 63,308,492 59,595,556
outstanding-diluted FFO ========== ==========
FFO per share $ 0.45 $ 0.39
========== ==========
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