-----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, RTaNYAGUSxYt1QQ/QJQwiaxHU1KuDhGLIe0VvI1irSFzh+9Wv1YJDa+Y4LlX9P0X yhslrcWZMKh7CJwbshyqGA== 0001116679-01-501066.txt : 20020412 0001116679-01-501066.hdr.sgml : 20020412 ACCESSION NUMBER: 0001116679-01-501066 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011128 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20011211 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: 1934 Act SEC FILE NUMBER: 001-12386 FILM NUMBER: 1811465 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 DATE OF REPORT: NOV. 28, 2001 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): November 28, 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) Previously filed as part of the Registration Statement (as defined below). (b) Unaudited Pro Forma Income Statement for the Nine Months Ended September 30, 2001. Unaudited Pro Forma Income Statement for the Year Ended December 31, 2000. Unaudited Pro Forma Balance Sheet as of September 30, 2001. (c) Exhibits 99.1 Joint Consent and Proxy Solicitation Statement/Prospectus of Lexington (filed as Part I to Lexington's Registration Statement on Form S-4 (File No. 333-70790)) (the "Registration Statement").* 99.2 Press release of Lexington dated November 29, 2001 (previously filed as Exhibit 99.2 to Lexington's Current Report on Form 8-K on November 30, 2001).* ----------- * Incorporated by Reference 2 PRO FORMA FINANCIAL INFORMATION Lexington Corporate Properties Trust The accompanying unaudited pro forma consolidated balance sheet of Lexington as of September 30, 2001 has been prepared from the historical consolidated financial statements of Lexington, Net 1 and Net 2, as adjusted to give effect to (i) Lexington's acquisition of Net 1 and Net 2. The accompanying unaudited pro forma statements of income of Lexington for the year ended December 31, 2000 and the nine months ended September 30, 2001 have been prepared as if (a) Lexington's acquisition of Net 1 and Net 2 had been consummated as of January 1, 2000 and (b) all 2001 and 2000 property purchases and sales, and the sale of 4.4 million common shares in an underwritten public offering completed in July and August 2001, had been consummated as of 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 mergers, all other property purchases and sales, and the above-referenced sale of common shares, 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 included in Lexington's Annual Report on Form 10-K and quarterly report on Form 10-Q. Lexington Corporate Properties Trust Unaudited Pro Forma Income Statement for the Nine Months Ended September 30, 2001
Common All other Share Lexington Net 1 Net 2 Transactions(i) Offering --------------- --------------- --------------- --------------- ---------- (Dollar amounts in thousands, except per share data) Revenues Rental...................................... $ 57,825 $ 4,020 $ 8,114 $ (141) $ -- Equity in earnings of non-consolidated entities.................................... 2,196 -- -- 416 -- Interest and other ......................... 882 49 208 -- -- --------------- --------------- --------------- ------------- --------- 60,903 4,069 8,322 275 -- --------------- --------------- --------------- ------------- --------- Expenses Interest expense............................ 22,636 1,210 3,243 (81) (1,167)(j) Depreciation and amortization of real estate..................................... 13,449 758 1,556 -- Amortization of deferred expenses........... 1,192 -- 244 -- General and administrative expenses......... 3,682 353 819 -- Property operating expenses................. 1,150 -- -- -- Transaction costs -- 250 448 -- -- --------------- --------------- --------------- ------------- --------- 42,109 2,571 6,310 (81) (1,167) --------------- --------------- --------------- ------------- --------- Income before gains (losses) on sale of property, minority interests and extraordinary item.... 18,794 1,498 2,012 356 1,167 Gains (losses) on sale of properties............. -- (456) 480 (24) -- --------------- --------------- --------------- ------------- --------- Income before minority interest and extraordinary item............................ 18,794 1,042 2,492 332 1,167 Minority interests............................... 3,935 -- -- -- -- --------------- --------------- --------------- ------------- --------- Income before extraordinary item................. 14,859 1,042 2,492 332 1,167 Extraordinary item............................... (3,144) -- -- 3,144 -- --------------- --------------- --------------- ------------- --------- Net income $ 11,715 $ 1,042 $ 2,492 $ 3,476 $ 1,167 =============== =============== =============== ============= ========= Income per common share - basic: Income before extraordinary item............ $ 0.70 Extraordinary item.......................... (0.17) --------------- Net income.................................. $ 0.53 =============== Weighted average common shares outstanding................................ 18,364,342 =============== Income per common share - diluted: Income before extraordinary item............ $ 0.69 Extraordinary item.......................... (0.17) --------------- Net income.................................. $ 0.52 =============== Weighted average common shares outstanding................................ 18,674,703 =============== Proforma Proforma Adjustments Adjusted --------------- ----------- (Dollar amounts in thousands, except per share data) Revenues Rental...................................... $ 72(a) $ 69,890 Equity in earnings of non-consolidated entities.................................... -- 2,612 Interest and other ......................... (188)(b) 951 --------------- ----------- (116) 73,453 --------------- ----------- Expenses Interest expense............................ 401(c) 26,242 Depreciation and amortization of real estate..................................... 127(d) 15,890 Amortization of deferred expenses........... -- 1,436 General and administrative expenses......... (116)(e) 4,738 Property operating expenses................. -- 1,150 Transaction costs (698)(f) -- --------------- ----------- (286) 49,456 --------------- ----------- Income before gains on sale of property, minority interests and extraordinary item............. 170 23,997 Gains on sale of properties...................... -- -- --------------- ----------- Income before minority interest and extraordinary item............................ 170 23,997 Minority interests............................... 35(h) 3,970 --------------- ----------- Income before extraordinary item................. 135 20,027 Extraordinary item............................... -- -- --------------- ----------- Net income $ 135 $ 20,027 =============== =========== Income per common share - basic: Income before extraordinary item............ $ 0.75 Extraordinary item.......................... -- ----------- Net income.................................. $ 0.75 =========== Weighted average common shares outstanding................................ 23,961,075 =========== Income per common share - diluted: Income before extraordinary item............ $ 0.73 Extraordinary item.......................... -- ----------- Net income.................................. $ 0.73 =========== Weighted average common shares outstanding................................ 29,760,674 ===========
Lexington Corporate Properties Trust Unaudited Pro Forma Income Statement for the Year Ended December 31, 2000
Common All other Share Lexington Net 1 Net 2 Transactions(i) Offering --------------- --------------- --------------- --------------- ------------ (Dollar amounts in thousands, except per share data) Revenues Rental ............................. $ 76,824 $ 4,774 $ 10,126 $ 1,054 $ -- Equity in earnings of non-consolidated entities........... 1,851 -- -- 1,049 -- Interest and other ................. 1,330 163 541 -- -- --------------- --------------- --------------- ------------- ------------ 80,005 4,937 10,667 2,103 -- --------------- --------------- --------------- ------------- ------------ Expenses Interest expense.................... 29,581 1,605 4,785 772 (2,000)(j) Depreciation and amortization of real estate......................... 17,513 941 2,049 158 -- Amortization of deferred expenses... 1,497 -- 383 7 -- General and administrative expenses. 4,902 447 1,011 (243) -- Property operating expenses......... 1,504 -- -- -- -- Transaction costs................... -- 400 400 -- -- --------------- --------------- --------------- ------------- ------------ 54,997 3,393 8,628 694 (2,000) --------------- --------------- --------------- ------------- ------------ Income before gain on sale of properties and minority interests............... 25,008 1,544 2,039 1,409 2,000 Gain on sale of properties .............. 2,959 -- -- (695) -- --------------- --------------- --------------- ------------- ------------ Income before minority interests......... 27,967 1,544 2,039 714 2,000 Minority interests....................... 6,015 -- -- (184) -- --------------- --------------- --------------- ------------- ------------ Net income............................... $ 21,952 $ 1,544 $ 2,039 $ 898 $ 2,000 =============== =============== =============== ============= ============ Income per common share - basic: Net income.......................... $ 1.15 Weighted average common shares =============== outstanding ........................ 16,900,039 =============== Income per common share - diluted: Net income.......................... $ 1.10 =============== Weighted average common shares outstanding........................ 24,714,219 =============== Proforma Proforma Adjustments Adjusted --------------- ----------- (Dollar amounts in thousands, except per share data) Revenues Rental...................................... $ 96 (a) $ 92,874 Equity in earnings of non-consolidated entities.................................... -- 2,900 Interest and other ......................... (394)(b) 1,640 --------------- ----------- (298) 97,414 --------------- ----------- Expenses Interest expense............................ 447 (c) 35,190 Depreciation and amortization of real estate................................ 170 (d) 20,831 Amortization of deferred expenses........... -- 1,887 General and administrative expenses......... (91)(e) 6,026 Property operating expenses................. -- 1,504 Transaction costs (800)(f) -- --------------- ----------- (274) 65,438 --------------- ----------- Income before gain on sale of properties and minority interests....................... (24) 31,976 Gain on sale of properties...................... (2,264)(g) -- --------------- ----------- Income before minority interests................. (2,288) 31,976 Minority interests............................... 39 (h) 5,870 --------------- ----------- Net Income ...................................... $ (2,327) $ 26,106 =============== =========== Income per common share - basic: Net income.................................. $ 1.00 =========== Weighted average common shares outstanding.............................. . 23,444,269 =========== Income per common share - diluted: Net income.................................. $ 0.99 =========== Weighted average common shares outstanding................................ 29,380,230 ===========
Notes to Unaudited Pro Forma Income Statement (Dollar amounts in thousands)
For the Nine For the Year Months Ended ended 12/31/00 9/30/01 -------------- ----------- (a) Reflects straight line revenues relating to new measurement date for the Net 1 and Net 2 property leases........................................................................ $ 96 $ 72 ========= ========= (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................................. (91) (116) Elimination of interest earned in inter-entity notes payable/receivable.................. (183) (72) --------- --------- $ (394) $ (188) ========= ========= (c) Reflects the following: Elimination of interest expense on inter-entity notes payable/receivable................. $ (183) $ (72) Interest expense incurred in assumed line of credit drawn to purchase Net 1 and Net 2.... 630 473 --------- --------- $ 447 $ 401 ========= ========= (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.................................................... $ 170 $ 127 ========= ========= (e) Elimination of asset management fees paid by Net 1 & Net 2............................... $ (91) $ (116) ========= ========= (f) Elimination of merger costs incurred by Net 1 and Net 2.................................. $ (800) $ (698) ========= ========= (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 $ 35 ========= ========= (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................. (j) Elimination of interest expense associated with the repayment of $25,000, 8% Exchangeable Redeemable Secured Notes.................................................. $ (2,000) $ (1,167) ========= =========
Lexington Corporate Properties Trust Unaudited Pro Forma Balance Sheet as of September 30, 2001
Proforma Proforma Lexington Net 1 Net 2 Adjustments Adjusted ------------- ---------- ------------ --------------- ------------- (Dollar amounts in thousands except per share data) Real estate, net ............................ $ 572,849 $ 42,642 $ 89,532 $ 9,050 (a) $ 714,073 Cash and cash equivalents.................... 15,766 987 1,600 (15,544)(b) 2,809 Restricted cash ............................. 1,729 -- -- -- 1,729 Investment in non-consolidated entities...... 48,778 -- -- -- 48,778 Other assets................................. 45,396 1,428 3,154 (8,750)(c) 41,228 ---------- ---------- ---------- ---------- ------------ Total assets............................ $ 684,518 $ 45,057 $ 94,286 $ (15,244) $ 808,617 ========== ========== ========== ========== ============ Mortgages and notes payable.................. $ 348,763 $ 19,879 $ 54,906 $ 16,593 (d) $ 440,141 Deferred installment obligations............. 6,654 -- -- -- 6,654 Other liabilities............................ 6,459 1,693 1,130 (41)(e) 9,241 ---------- ---------- ---------- ---------- ------------ 361,876 21,572 56,036 16,552 456,036 ---------- ---------- ---------- ---------- ------------ Minority interest............................ 57,365 -- -- 322 (f) 57,687 ---------- ---------- ---------- ---------- ------------ Mezzanine equity: Preferred shares........................ 24,369 -- -- -- 24,369 ---------- ---------- ---------- ---------- ------------ Common shares........................... 3,809 -- -- -- 3,809 ---------- ---------- ---------- ---------- ------------ Partners' capital............................ -- 23,485 38,250 (61,735)(g) -- Shareholders' equity: Common shares........................... 2 -- -- -- 2 Additional paid in capital ............. 311,231 -- -- 29,617 (h) 340,848 Deferred compensation................... (1,779) -- -- -- (1,779) Accumulated distributions in excess of earnings......................... (70,382) -- -- -- (70,382) Notes receivable from officers/shareholders............... (1,973) -- -- -- (1,973) ---------- ---------- ---------- ---------- ------------ Shareholders' equity/partners' capital.. 237,099 23,485 38,250 (32,118) 266,716 ---------- ---------- ---------- ---------- ------------ $ 684,518 $ 45,057 $ 94,286 $ (15,244) $ 808,617 ========== ========== ========== ========== ============
Notes to Unaudited Pro Forma Balance Sheet (Dollar amounts in thousands, except per share data)
(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................................................................................ $ 63,885 Mortgages assumed.......................................................................................... 73,378 Merger costs............................................................................................... 2,010 Other liabilities assumed.................................................................................. 2,782 ----------- Purchase price........................................................................................ 142,055 Allocation Identifiable other assets.......................................................................... (1,688) Share issuance costs, contra equity................................................................ (2,010) ----------- Subtotal............................................................................ 138,357 Reclassification of Lexington investment in and receivables from Net 1 and Net 2.................. 2,867 ----------- Allocation to real estate, net..................................................................... 141,224 Historical Net Partnership real estate basis....................................................... (132,174) ----------- $ 9,050 =========== (b) Reflects the following: The payment of costs incurred by Net 1 and Net 2 associated with the mergers and estimated final partner distributions.............................................................................................. $ (1,948) Cash paid to the limited partners of Net 1 and Net 2.......................................................... (31,596) Proceeds from borrowing on credit facility.................................................................... 18,000 ----------- $ (15,544) =========== (c) Reflects the following: Elimination of inter-entity notes receivable and accrued interest............................................. $ (1,407) Elimination of Lexington basis in its investments in limited partner units of Net 1 and Net 2................. (1,419) Allocation of merger costs paid by Lexington.................................................................. (2,010) Elimination of accounts receivable - straight line rents for Net 1 and Net 2 property leases.................. (2,799) Elimination of inter-entity accounts receivable............................................................... (41) Elimination of Lexington percentage ownership in the Net 1 and Net 2 asset management contracts............... (340) Elimination of capitalized financing costs of Net 1 and Net 2................................................. (734) ----------- $ (8,750) =========== (d) Reflects the following: The elimination of inter-entity notes payable and accrued interest............................................ $ (1,407) Proceeds from borrowing on credit facility.................................................................... 18,000 ----------- $ 16,593 =========== (e) Reflects the Elimination of inter-entity accounts payable..................................................... $ (41) =========== (f) Reflects the following: Issuance of 44,858 limited partnership units in Net 3, at $14.75 per unit price, in exchange for the general partnership interests in Net 1 and Net 2................................................................... $ 662 Elimination of Lexington percentage ownership in the Net 1 and Net 2 asset management contracts............... (340) ----------- $ 322 =========== (g) Reflects the elimination of Net 1 and Net 2 partners' capital................................................. $ (61,735) =========== (h) Reflects the issuance of 2,144,230 common shares, at $14.75 per share price, associated with the merger net of offering costs to be paid by Lexington of $2,010........................................................... $ 29,617 ===========
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: December 11, 2001 By: /s/ T. Wilson Eglin ------------------------------- T. Wilson Eglin President EXHIBIT INDEX Exhibit No. Exhibit - ----------- ------- 99.1 Joint Consent and Proxy Solicitation Statement/Prospectus of Lexington (filed as Part I to Lexington's Registration Statement on Form S-4 (File No. 333-70790)). 99.2 Press release of Lexington dated November 29, 2001 (previously filed as Exhibit 99.2 to Lexington's Current Report on Form 8-K on November 30, 2001).* - ----------- * Incorporated by Reference -----END PRIVACY-ENHANCED MESSAGE-----