-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P4a8rj4mYDyaE5xexHWQQ0WEkZQZyhtE2nh7pe9E4vA58XaYpQ5hlrjkFVpNa7MD 7NhCxZYdUQsFDkKKP8zUYQ== 0001116679-01-500453.txt : 20010726 0001116679-01-500453.hdr.sgml : 20010726 ACCESSION NUMBER: 0001116679-01-500453 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010720 ITEM INFORMATION: FILED AS OF DATE: 20010725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEXINGTON CORPORATE PROPERTIES TRUST CENTRAL INDEX KEY: 0000910108 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 133717318 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-12386 FILM NUMBER: 1688588 BUSINESS ADDRESS: STREET 1: 355 LEXINGTON AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126927260 MAIL ADDRESS: STREET 1: 355 LEXINGTON AVE STREET 2: 14TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: LEXINGTON CORPORATE PROPERTIES INC DATE OF NAME CHANGE: 19930816 8-K/A 1 body.txt AMENDMENT NO. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------------------------------------------------------- Form 8-K/A Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 20, 2001 ------------- LEXINGTON CORPORATE PROPERTIES TRUST - -------------------------------------------------------------------------------- (Exact Name of Registrant as specified in its charter) Maryland 1-12386 13-3717318 ------------------------- ------------------ ------------------ (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 355 Lexington Avenue New York, New York 10017 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (212) 692-7260 - -------------------------------------------------------------------------------- Registrant's telephone number, including area code Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits Item 7, entitled "Financial Statements, Pro Forma Financial Information and Exhibits," is amended and restated in its entirety as follows: (a) Not applicable (b) Unaudited Pro forma Balance Sheet as of March 31, 2001 Unaudited Pro forma Income Statement for the Three Months Ended March 31, 2001 Unaudited Pro forma Income Statement for the Year Ended December 31, 2000 (c) Exhibits 99.1 Press release issued by the Company dated July 20, 2001 announcing the amendment of the agreement to merge Net 1 L.P. and Net 2 L.P. with Net 3 Acquisition L.P., a Delaware limited partnership and a wholly owned subsidiary of the Company (previously filed as Exhibit 99.1 to Current Report on Form 8-K dated July 20, 2001. PRO FORMA FINANCIAL INFORMATION The accompanying unaudited pro forma consolidated balance sheet of Lexington Corporate Properties Trust as of March 31, 2001 has been prepared from the historical consolidated financial statements of Lexington, Net 1 L.P. and Net 2 L.P., as adjusted to give effect to (i) Lexington's acquisition of Net 1 and Net 2 assuming that no limited partners select dissenter debentures and (ii) the offering of 3.5 million common shares in a registered offering. The accompanying unaudited pro forma statements of income of Lexington for the year ended December 31, 2000 and the three months ended March 31, 2001 have been prepared as if Lexington's acquisition of Net 1 and Net 2 had been consummated as of January 1, 2000, all 2001 and 2000 property purchases and sales were consummated as of January 1, 2000 and the 3.5 million common share offering occurred on January 1, 2000. The unaudited pro forma financial data does not purport to be indicative of what the results of operations or financial position of Lexington would have been had the merger, all other property purchases and sales, and the common share offering been completed on the date assumed, nor is such unaudited financial data necessarily indicative of the results of operations of Lexington that may exist in the future. The unaudited pro forma financial data must be read in conjunction with the Notes thereto and with the historical Consolidated Financial Statements and the related Notes in Lexington's Annual Report on Form 10-K for the year ended December 31, 2000 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2001. Lexington Corporate Properties Trust Unaudited Pro Forma Income Statement for the Three Months Ended March 31, 2001
All other Proforma Proforma Lexington Net 1 Net 2 Transactions(i) Adjustments Adjusted ----------- ----------- ---------- ------------------------------ -------- (Dollar amounts in thousands, except per share data) Revenues Rental............................... $ 19,363 $ 1,706 $ 2,634 $ -- $ 24 (a) $ 23,727 Equity in earnings of non-consolidated entities............ 610 -- -- 156 -- 766 Interest and other .................. 260 18 61 -- (63)(b) 276 ----------- ----------- ---------- --------------- ------------- ------------ 20,233 1,724 2,695 156 (39) 24,769 ----------- ----------- ---------- --------------- ------------- ------------ Expenses Interest expense..................... 7,632 407 1,134 -- (24)(c) 9,149 Depreciation and amortization of real estate............................... 4,357 253 519 -- 44 (d) 5,173 Amortization of deferred expenses.... 348 -- 51 -- -- 399 General and administrative expenses.. 1,242 121 318 -- (39)(e) 1,642 Property operating expenses.......... 371 -- -- -- -- 371 ----------- ----------- ---------- --------------- ------------- ------------ 13,950 781 2,022 -- (19) 16,734 ----------- ----------- ---------- --------------- ------------- ------------ Income before minority interests and extraordinary item................... 6,283 943 673 156 (20) 8,035 Minority interests...................... 1,435 -- -- -- 17 (h) 1,452 ----------- ----------- ---------- --------------- ------------- ------------ Income before extraordinary item........ 4,848 943 673 156 (37) 6,583 Extraordinary item...................... 270 -- -- -- -- 270 ----------- ----------- ---------- --------------- ------------- ------------ Net income.............................. $ 4,578 $ 943 $ 673 $ 156 $ (37) $ 6,313 =========== =========== ========== =============== ============= ============ Income per common share - basic: Income before extraordinary item..... $ 0.24 $ 0.26 Extraordinary item................... (0.01) (0.01) ----------- ------------ Net income........................... $ 0.23 $ 0.25 =========== ============ Weighted average common shares outstanding ......................... 17,086,939 22,731,939 =========== ============ Income per common share - diluted: Income before extraordinary item..... $ 0.24 $ 0.25 Extraordinary item................... (0.01) (0.01) ----------- ------------ Net income........................... $ 0.23 $ 0.24 =========== ============ Weighted average common shares outstanding.......................... 22,961,096 28,649,429 =========== ============
Note If limited partners elect to receive up to $20,000 in dissenter debentures then net income would decrease by $425. Lexington Corporate Properties Trust Unaudited Pro Forma Income Statement for the Year Ended December 31, 2000
All other Proforma Proforma Lexington Net 1 Net 2 Transactions(i) Adjustments Adjusted ----------- ----------- ---------- ------------------------------ -------- (Dollar amounts in thousands, except per share data) Revenues Rental .......................... $ 76,824 $ 4,774 $ 10,126 $ 1,173 $ 96 (a) $ 92,993 Equity in earnings of 1,018 non-consolidated entities........ 1,851 -- -- -- 2,869 Interest and other .............. 1,330 163 541 -- (394)(b) 1,640 ----------- ----------- ---------- --------------- ------------- ------------ 80,005 4,937 10,667 2,191 (298) 97,502 ----------- ----------- ---------- --------------- ------------- ------------ Expenses Interest expense................. 29,581 1,605 4,785 772 (183)(c) 36,560 Depreciation and amortization of 245 real estate...................... 17,513 941 2,049 176 (d) 20,924 Amortization of deferred expenses ........................ 1,497 -- 383 7 -- 1,887 General and administrative expenses......................... 4,902 447 1,011 -- (91)(e) 6,269 Property operating expenses...... 1,504 -- -- -- -- 1,504 Transaction costs................ -- 400 400 -- (800)(f) -- ----------- ----------- ---------- --------------- ------------- ------------ 54,997 3,393 8,628 1,024 (898) 67,144 ----------- ----------- ---------- --------------- ------------- ------------ Income before gain on sale of properties and minority interests ....................... 25,008 1,544 2,039 1,167 600 30,358 Gain on sale of properties ......... 2,959 -- -- (695) (2,264)(g) -- ----------- ----------- ---------- --------------- ------------- ------------ Income before minority interests.... 27,967 1,544 2,039 472 (1,664) 30,358 Minority interests.................. 6,015 -- -- -- 39 (h) 6,054 ----------- ----------- ---------- --------------- ------------- ------------ Net income.......................... $ 21,952 $ 1,544 $ 2,039 $ 472 $ (1,703) $ 24,304 =========== ========== ========== =============== ============= ============ Income per common share - basic: Net income....................... $ 1.15 $ 0.96 =========== ============ Weighted average common shares outstanding .................. 16,900,039 22,545,039 =========== ============ Income per common share - diluted: Net income....................... $ 1.10 $ 0.96 =========== ============ Weighted average common shares outstanding................... 24,714,219 22,711,845 =========== ============
Note If limited partners elect to receive up to $20,000 in dissenter debentures then net income would decrease by $1,700. Notes to Unaudited Pro Forma Income Statement
For the For the Three Year Months ended Ended 12/31/00 3/31/01 -------- ------- (a) Reflects straight line revenues relating to new measurement date for the Net 1 and Net 2 property leases..... $ 96 $ 24 ======= ====== (b) Reflects the following: Elimination of acquisition fees earned by Lexington on third party acquisitions made by Net 1 and Net 2............. $ (120) $ -- Elimination of asset management fees earned by Lexington. In May 2000, Lepercq Corporate Income Fund, L.P. purchased the entity that performed asset management services for the Net Partnerships................. (91) (39) Elimination of interest earned in inter-entity notes payable/receivable........................................... (183) (24) -------- ------- $ (394) $ (63) ======= ====== (c) Elimination of interest expenses or inter-entity notes payable/receivable........................................... (183) (24) ======= ====== (d) Depreciation expense on the merger consideration allocated to the real estate assets of Net 1 and Net 2. The allocation of the purchase price for pro forma purposes is based upon Lexington management's best estimate of the relative fair value of each asset acquired and liability assumed. This estimate was determined based upon the familiarity with the Net Partnerships and industry experience. Accordingly, for such pro forma purposes 80% of the purchase price, in excess of other identifiable assets, has been allocated to real estate with a 40 year life and 20% to land. Upon consummation of the merger allocations may vary....................................................... $ 176 $ 44 ======= ====== (e) Elimination of asset management fees paid by Net 1 & Net 2 since May 2000............................................... $ (91) $ (39) ======= ====== (f) Elimination of merger costs incurred by Net 1 and Net 2....... $ (800) $ -- ======= ====== (g) Elimination of gains on sale of real estate for transactions between Lexington and Net 1 and Net 2........... $(2,264) $ -- ======= ====== (h) Impact on minority interest relating to the pro forma adjustments.................................................. $ 39 $ 17 ======= ====== (i) Represents the pro forma impact on each respective income statement item for all 2001 and 2000 Lexington, Net 1 and Net 2 purchases and sales of real estate.
Lexington Corporate Properties Trust Unaudited Pro Forma Balance Sheet as of March 31, 2001
Proforma Proforma Lexington Net 1 Net 2 Adjustment Adjusted --------- -------- -------- ------------- ---------- (Dollar amounts in thousands, except per share data) Real estate, net ................................ $ 581,098 $ 43,601 $ 93,762 $ 8,790(a) $ 727,251 Cash and cash equivalents........................ 1,637 1,278 670 15,912(b) 19,497 Restricted cash ................................. 1,718 -- -- -- 1,718 Investment in non-consolidated entities ......... 47,428 -- -- -- 47,428 Other assets..................................... 40,711 1,647 2,800 (6,573)(c) 38,585 --------- -------- -------- ---------- ---------- Total assets ................................. $ 672,592 $ 46,526 $ 97,232 $ 18,129 $ 834,479 ========= ======== ======== ========== ========== Mortgages and notes payable ..................... $ 393,855 $ 20,220 $ 58,985 $ (1,353)(d) $ 471,707 Deferred installment obligations ................ 6,673 -- -- -- 6,673 Other liabilities ............................... 4,999 2,135 598 814(e) 8,546 --------- -------- -------- ------------- ---------- 405,527 22,355 59,583 (539) 486,926 --------- -------- -------- ------------- ---------- Minority interest ............................... 62,031 -- -- 288(f) 62,319 --------- -------- -------- ------------- ---------- Mezzanine equity: Preferred shares ............................. 24,369 -- -- -- 24,369 --------- -------- -------- ------------- ---------- Common shares ................................ 3,809 -- -- -- 3,809 --------- -------- -------- ------------- ---------- Partners' capital ............................... -- 24,171 37,649 (61,820)(g) -- Shareholders' equity: Common shares ................................ 2 -- -- -- 2 Additional paid in capital ................... 244,537 -- -- 80,200(h) 324,737 Deferred compensation ........................ (2,061) -- -- -- (2,061) Accumulated distribution in excess of earnings..................................... (63,641) -- -- -- (63,641) Notes receivable from officers/ shareholders ................................ (1,981) -- -- -- (1,981) --------- -------- -------- ------------- ---------- Shareholders' equity/partners' capital........ 176,856 24,171 37,649 18,380 257,056 --------- -------- -------- ------------- ---------- $ 672,592 $ 46,526 $ 97,232 $ 18,129 $ 834,479 ========= ======== ======== ========== ==========
Note If limited partners in Net 1 and Net 2 elect to receive up to $20,000 of their merger consideration in dissenter debentures the impact to mortgages and notes payable and shareholders equity would be to increase mortgages and notes payable and decrease shareholders' equity by $20,000. Notes to Unaudited Pro Forma Balance Sheet
(a) Reflects the excess over historical cost basis of consideration paid by Lexington for the real estate of Net 1 and Net 2 as determined as follows: Merger consideration issued.......................................... $ 65,000 Mortgages assumed.................................................... 77,852 Merger costs......................................................... 2,010 Other liabilities assumed............................................ 2,577 --------- Purchase price.............................................. $ 147,439 Allocation Identifiable other assets............................ (1,113) Share issuance costs, contra equity.................. (2,010) --------- Subtotal................. 144,316 Reclassification of Lexington investment in and receivables from Net 1 and Net 2...................... 1,837 --------- Allocation to real estate, net....................... 146,153 Historical Net Partnership real estate basis......... (137,363) --------- $ 8,790 ========= (b) Reflects the following: The payment of costs incurred by the Net 1 and Net 2 associated with the mergers ............................................................. $ (1,948) Cash proceeds from common share issuance, net of underwriters discount and estimated offering costs......................................... 50,035 Cash paid to the limited partners of Net 1 and Net 2....................... (32,175) --------- $ 15,912 ========= (c) Reflects the following: Elimination of inter-entity notes receivable and accrued interest.......... $ (1,353) Elimination of Lexington basis in its investments in limited partner units of Net 1 and Net 2................................................... (328) Elimination of capitalized merger costs paid by Lexington.................. (1,040) Elimination of accounts receivable - straight line rents for Net 1 and Net 2 property leases................................................ (2,421) Elimination of inter-entity accounts receivable............................ (156) Elimination of Lexington percentage ownership in the Net 1 and Net 2 asset management contracts................................................. (362) Elimination of capitalized financing costs of Net 1 and Net 2.............. (913) --------- $ (6,573) ========= (d) Elimination of inter-entity notes payable and accrued interest............. $ (1,353) ========= (e) Reflects the following: Elimination of inter-entity accounts payable............................... $ (156) Estimated merger costs to be paid by Lexington............................. 970 --------- $ 814 ========= (f) Reflects the following: Issuance of 43,333 limited partnership units in Net 3, assuming a $15 per Unit price, in exchange for the general partnership interests in Net 1 and Net 2...................................................... $ 650 Elimination of Lexington percentage ownership in the Net 1 and Net 2 asset management contracts................................................. (362) --------- $ 288 ========= (g) Reflects the elimination of Net 1 and Net 2 partners' capital.............. $ (61,820) ========= (h) Reflects the following: The issuance of 2,145,000 common shares, assuming a $15 per share price, associated with the merger net of offering costs to be paid by Lexington of $2,010.................................................. $ 30,165 The issuance of 3,500,000 common shares at $15.19 per share price, less underwriters discount and estimated offering costs........................ 50,035 --------- $ 80,200 =========
Lexington Corporate Properties Trust Unaudited Pro Forma Income Statement for the Year Ended December 31, 2000 and the Three Months Ended March 31, 2001 Earnings Per Share Calculations The following is a reconciliation of numerators and denominators of the pro forma basic and diluted earnings per share computations for each of the periods presented ($000's except per share data): 12/31/00 3/31/01 -------- ------- BASIC Income before extraordinary item ................... $ 24,304 $ 6,583 Less preferred dividends ........................... (2,562) (672) ----------- ----------- Income attributed to common shareholders before extraordinary item............................... 21,742 5,911 Extraordinary item ................................. -- (270) ----------- ----------- Net income attributed to common shareholders ....... $ 21,742 5,641 =========== =========== Weighted average number of common shares outstanding - historical ........................ 6,900,039 17,086,939 Issued in merger ................................... 2,145,000 2,145,000 Common shares issued in offering. .................. 3,500,000 3,500,000 ----------- ----------- Weighted average number of common shares used in calculation of basic earnings per common share .. 22,545,039 22,731,939 =========== =========== Income per common share - basic: Income before extraordinary item ................ $ 0.96 $ 0.26 Extraordinary item .............................. -- (0.01) ----------- ----------- Net income ...................................... $ 0.96 $ 0.25 =========== =========== DILUTED Income attributable to common shareholders before extraordinary item .............................. $ 21,742 $ 5,911 Add incremental income attributed to assumed conversion of dilutive securities ............... -- 1,363 Extraordinary item ................................. -- (270) Net income attributed to common shareholders ....... $ 21,742 $ 7,004 =========== =========== Weighted average number of common shares used in calculation of basic earnings per common share .. 22,545,039 22,731,939 Add incremental shares representing: Shares issuable upon exercise of employee share options ....................................... 166,806 241,864 Shares issuable upon conversion of dilutive securities .................................... -- 5,675,626 Weighted average number of common shares used in ----------- ----------- calculation of diluted earnings per common share............................................ 22,711,845 28,649,429 =========== =========== Income per common share - diluted: Income before extraordinary item ................ $ 0.96 $ 0.25 Extraordinary item .............................. -- (0.01) ----------- ----------- Net income ...................................... $ 0.96 $ 0.24 =========== =========== SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LEXINGTON CORPORATE PROPERTIES TRUST Date: July 20, 2001 By: /s/ T. Wilson Eglin ------------------- T. Wilson Eglin President -----END PRIVACY-ENHANCED MESSAGE-----