EX-99.1 3 y90959exv99w1.txt PRESS RELEASE Exhibit 99.1 (FRB | WEBER SHANDWICK LOGO) news RE: LEXINGTON CORPORATE PROPERTIES TRUST 355 LEXINGTON AVENUE NEW YORK, NY 10017 FOR FURTHER INFORMATION: AT THE COMPANY: AT FRB | WEBER SHANDWICK: T. Wilson Eglin Larry Stein Diane Hettwer Chief Executive Officer General Inquires Analyst Inquires (212) 692-7260 (312) 640-6794 (312) 640-6760 FOR IMMEDIATE RELEASE THURSDAY, OCTOBER 23, 2003 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES THIRD QUARTER OPERATING RESULTS NEW YORK, NY - OCTOBER 23, 2003 - LEXINGTON CORPORATE PROPERTIES TRUST (NYSE:LXP), a real estate investment trust, today announced results for its third quarter and nine months ended September 30, 2003. YEAR-TO-DATE HIGHLIGHTS - Raised $150 million in net proceeds from common and preferred equity offerings; - Obtained $70 million equity commitment for new joint venture program; - Closed $100 million unsecured credit facility; - Lowered balance sheet leverage from 46.7% of market capitalization at December 31, 2002 to 36.7% of market capitalization at September 30, 2003; - Acquired $203.5 million of properties which generate $19.6 million of annual net rental revenues, or 9.61% of the purchase price; - Leased 46,724 square feet at Columbia, Maryland property, raising portfolio occupancy to 99.5% and - Generated a total return to shareholders of 32.6% through October 22, 2003. QUARTERLY RESULTS Funds from operations were $18.27 million, or $0.45 per diluted share/unit for the third quarter of 2003, compared to $15.64 million, or $0.48 per diluted share/unit, for the third quarter of 2002. As a result of the common share and preferred share offerings in 2003, Lexington operated with greater cash balances and lower leverage than in 2002 and this reduced FFO per share. Revenues for the third quarter of 2003 totaled $31.11 million, compared to revenues of $24.89 million for the same period last year. Net income allocable to common shareholders was $8.37 million in the third quarter of 2003, compared to $7.65 million for the same period last year. MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 1 NINE MONTH RESULTS For the nine months ended September 30, 2003, FFO were $44.77 million or $1.18 per diluted share/unit, which is net of the impact of $7.69 million ($0.20 per diluted share/unit) in debt satisfaction charges, compared to $46.10 million or $1.43 per diluted share/unit, for the same period last year. As a result of the common share and preferred share offerings in 2003, Lexington operated with greater cash balances and lower leverage than in 2002 and this reduced FFO per share. Revenues for the nine months ended September 30, 2003 totaled $89.04 million, compared to revenues of $73.34 million for the same period last year. Net income allocable to common shareholders was $19.41 million, which includes $7.69 million in debt satisfaction charges and $1.14 million in gains on sales, for the nine months ended September 30, 2003 compared to $22.79 million, which includes $1.06 million in gains on sales, for the same period last year. ACQUISITION VOLUME During 2003, Lexington acquired ten properties for capitalized cost of $203.5 million, which generate annual net rental revenue of $19.6 million, or 9.61% of the purchase price. In connection with the purchase of five of these properties Lexington obtained $70.7 million in non-recourse mortgage notes, with a weighted average interest of 5.27%. LEASING During the quarter, Lexington signed a lease with Haverty Furniture Companies, Inc. for 46,724 square feet at its Columbia, Maryland retail property. The lease, which expires in September 2024, generates approximately $0.6 million of annual net rental revenue. This lease raised portfolio occupancy to 99.5% at September 30, 2003. In addition, the tenant of Lexington's Hebron, Kentucky office property has exercised an option to terminate its lease in April 2004 by paying a penalty at such time of $0.9 million, which equals one year's rent. DIVIDEND DECLARATION The Company declared a dividend of $0.335 per common share for the third quarter of 2003, payable on November 14, 2003 to common shareholders of record on October 31, 2003. The Company also declared a dividend on its Cumulative Redeemable Preferred Shares of $0.503125 per preferred share, payable on November 17, 2003 to preferred shareholders of record on October 31, 2003. CONFERENCE CALL Management will discuss the financial results on a conference call today at 2pm Eastern Time. The toll-free dial in number is 800-867-0938 and the international number is 303-262-2175. The replay of the call will be available through October 30, 2003. The toll-free telephone number for the replay is 800-405-2236 or 303-590-3000, passcode 555920. The conference call can also be accessed on the internet at www.lxp.com and www.companyboardroom.com. A supplemental reporting package can be accessed in the Company Profile section at www.lxp.com. MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 2 LEXINGTON POISED FOR GROWTH Commenting on Lexington's results, T. Wilson Eglin, Chief Executive Officer and President, said, "During the first nine months of 2003, Lexington took several steps to enhance its balance sheet flexibility and capacity for future growth. This year we have added approximately $150 million of equity capital to our balance sheet, arranged a new unsecured credit facility of $100 million, and received a $70 million equity commitment for a newly-formed joint venture program. Our enhanced balance sheet has positioned the Company to take advantage of acquisition opportunities and I am pleased to report that our total acquisition volume for the year of $203.5 million exceeds the target that we established at the beginning of the year. We have approximately $100 million of property under letter of intent and are well-positioned to exceed our previous record annual investment activity of $277 million." TENTH ANNIVERSARY Mr. Eglin continued, "Yesterday marked the tenth anniversary of our listing on the New York Stock Exchange and we are very proud of what Lexington has accomplished during this time. Our equity base has grown from approximately $85 million to almost $900 million today and our assets under management have grown from $200 million to more than $1.6 billion. Most importantly, the total return to our shareholders has been 247% and we have grown dividends per share every year. As we head into our second decade as a public company, our management team is energized by the opportunities ahead of us and committed to extending our long track record of creating shareholder value." 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, October 22, 2003 at $20.08 per share. Lexington preferred shares, with an annualized dividend of $2.0125 per preferred share, closed Wednesday, October 22, 2003 at $26.90 per share. Additional information about Lexington is available at www.lxp.com. Financial tables follow 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, 2003 2002 2003 2002 -------- -------- -------- -------- Revenues: Rental $ 28,651 $ 23,130 $ 82,673 $ 68,217 Equity in earnings of non-consolidated entities 1,325 1,468 3,900 3,831 Advisory fees 273 -- 953 -- Interest and other 862 294 1,512 1,294 -------- -------- -------- -------- 31,111 24,892 89,038 73,342 -------- -------- -------- -------- Expenses: Interest 8,205 8,392 26,857 24,662 Debt satisfaction charges -- -- 7,685 -- Depreciation 6,960 5,218 20,113 15,403 General and administrative 2,648 1,359 7,399 4,122 Property operating 1,163 496 2,818 1,744 Amortization 557 481 1,601 1,425 -------- -------- -------- -------- 19,533 15,946 66,473 47,356 -------- -------- -------- -------- Income from continuing operations before minority interests 11,578 8,946 22,565 25,986 Minority interests 1,654 1,452 2,840 4,200 -------- -------- -------- -------- Income from continuing operations 9,924 7,494 19,725 21,786 -------- -------- -------- -------- Discontinued operations: Income from discontinued operations 38 113 340 645 Gains on sales of properties -- 39 1,143 1,055 -------- -------- -------- -------- Total discontinued operations 38 152 1,483 1,700 -------- -------- -------- -------- Net income 9,962 7,646 21,208 23,486 Dividends attributable to preferred shares - Series A -- -- -- (693) Dividends attributable to preferred shares - Series B (1,590) -- (1,802) -- -------- -------- -------- -------- Net income allocable to common shareholders $ 8,372 $ 7,646 $ 19,406 $ 22,793 Depreciation and amortization 7,109 5,261 20,330 15,636 Minority interests-OP Units 1,603 1,422 2,704 4,108 Amortization of leasing commissions 206 174 606 522 Joint venture adjustment-depreciation 978 1,173 2,867 3,399 Gains on sales of properties -- (39) (1,143) (1,055) Series A preferred dividends -- -- -- 693 -------- -------- -------- -------- Funds from operations $ 18,268 $ 15,637 $ 44,770 $ 46,096 ======== ======== ======== ======== Rent below GAAP revenue(1) $ 868 $ 526 $ 3,018 $ 1,752 ======== ======== ======== ======== Per share/unit Basic net income $ 0.24 $ 0.28 $ 0.60 $ 0.87 Diluted net income $ 0.24 $ 0.28 $ 0.58 $ 0.85 Funds from operations(2)-basic $ 0.46 $ 0.48 $ 1.18 $ 1.44 Funds from operations(2)-diluted $ 0.45 $ 0.48 $ 1.18 $ 1.43
MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 4 LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS)
09/30/03 12/31/02 Real estate, at cost $ 1,083,759 $ 913,370 Accumulated depreciation (155,619) (134,220) Investment in non-consolidated entities 55,930 54,261 Cash and cash equivalents 12,505 12,097 Deferred assets 8,830 8,168 Rent receivable - current -- 3,535 Rent receivable - deferred 23,426 20,115 Other assets 26,437 25,145 ------------ ------------ $ 1,055,268 $ 902,471 ============ ============ Mortgages and notes payable $ 497,816 $ 491,517 Other liabilities 16,230 17,323 Prepaid rent 3,646 -- Minority interests 54,345 56,846 Shareholders' equity 483,231 336,785 ------------ ------------ $ 1,055,268 $ 902,471 ============ ============ Common shares 35,246,803 30,030,048 Preferred shares-Series B 3,160,000 -- Operating partnership units 5,198,691 5,257,365 ------------ ------------ 43,605,494 35,287,413 ============ ============
(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 October 1999 "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, 2003 2002 2003 2002 ------------ ------------ ------------ ------------ EARNING PER SHARE BASIC Income from continuing operations $ 9,924 $ 7,494 $ 19,725 $ 21,786 Less preferred dividends (1,590) -- (1,802) (693) ------------ ------------ ------------ ------------ Income allocable to common shareholders from continuing operations - basic 8,334 7,494 17,923 21,093 Total income from discontinued operations - basic 38 152 1,483 1,700 ------------ ------------ ------------ ------------ Net income allocable to common shareholders $ 8,372 $ 7,646 $ 19,406 $ 22,793 ============ ============ ============ ============ Weighted average number of common shares outstanding 34,780,279 27,165,248 32,579,011 26,095,976 ============ ============ ============ ============ Per share data: Income from continuing operations $ 0.24 $ 0.27 $ 0.55 $ 0.81 Income from discontinued operations -- 0.01 0.05 0.06 ------------ ------------ ------------ ------------ Net income $ 0.24 $ 0.28 $ 0.60 $ 0.87 ============ ============ ============ ============ DILUTED Income allocable to common shareholders from continuing operations-basic $ 8,334 $ 7,494 $ 17,923 $ 21,093 Adjustments: Incremental income attributed to assumed conversion of dilutive securities -- 1,408 2,701 4,073 ------------ ------------ ------------ ------------ Income allocable to common shareholders from continuing operations-diluted 8,334 8,902 20,624 25,166 Total income from discontinued operations - diluted 38 166 1,598 1,852 ------------ ------------ ------------ ------------ Net income allocable to common shares - diluted $ 8,372 $ 9,068 $ 22,222 $ 27,018 ============ ============ ============ ============ Weighted average number of shares used in calculation of basic earnings per share 34,780,279 27,165,248 32,579,011 26,095,976 Add incremental shares representing: Shares issuable upon exercises of employee share options 193,151 253,723 188,988 237,387 Shares issuable upon conversion of dilutive securities -- 5,258,930 5,221,564 5,281,129 ------------ ------------ ------------ ------------ Weighted average number of shares used in calculation of diluted earnings per common share 34,973,430 32,677,901 37,989,563 31,614,492 ============ ============ ============ ============ Per share data: Income from continuing operations - diluted $ 0.24 $ 0.27 $ 0.54 $ 0.80 Income from discontinued operations - diluted -- 0.01 0.04 0.05 ------------ ------------ ------------ ------------ Net income - diluted $ 0.24 $ 0.28 $ 0.58 $ 0.85 ============ ============ ============ ============
MORE LEXINGTON CORPORATE PROPERTIES TRUST 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, 2003 2002 2003 2002 ------------ ------------ ------------ ------------ FUNDS FROM OPERATIONS BASIC AND DILUTED Net income allocable to common shareholders $ 8,372 $ 7,646 $ 19,406 $ 22,793 Adjustments: Depreciation and amortization 7,109 5,261 20,330 15,636 Minority interests-OP Units 1,603 1,422 2,704 4,108 Amortization of leasing commissions 206 174 606 522 Joint venture adjustment-depreciation 978 1,173 2,867 3,399 Gains on sale of properties -- (39) (1,143) (1,055) Preferred dividends-Series A -- -- -- 693 ------------ ------------ ------------ ------------ Funds from operations $ 18,268 $ 15,637 $ 44,770 $ 46,096 ============ ============ ============ ============ BASIC Weighted average shares outstanding-basic EPS 34,780,279 27,165,248 32,579,011 26,095,976 Operating partnership units 5,202,975 5,258,930 5,221,564 5,281,129 Preferred shares - Series A -- -- -- 732,601 ------------ ------------ ------------ ------------ Weighted average shares outstanding-basic FFO 39,983,254 32,424,178 37,800,575 32,109,706 ============ ============ ============ ============ FFO per share $ 0.46 $ 0.48 $ 1.18 $ 1.44 ============ ============ ============ ============ DILUTED Weighted average shares outstanding-diluted EPS 34,973,430 32,677,901 37,989,563 31,614,492 Operating partnership units 5,202,975 -- -- -- Preferred shares - Series A -- -- -- 732,601 ------------ ------------ ------------ ------------ Weighted average shares outstanding-diluted FFO 40,176,405 32,677,901 37,989,563 32,347,093 ============ ============ ============ ============ FFO per share $ 0.45 $ 0.48 $ 1.18 $ 1.43 ============ ============ ============ ============
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