EX-99 2 ex99-1.txt EX. 99.1 - PRESS RELEASE Exhibit 99.1 [GRAPHIC OMITTED] 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 Claire Koeneman Chief Financial Officer Analyst Inquiries General Inquiries (212) 692-7200 (312) 640-6760 (312) 640-6745 FOR IMMEDIATE RELEASE Thursday, April 29, 2004 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES FIRST QUARTER RESULTS $0.04 Per Share Impairment Charge Taken Against Marlborough, Massachusetts Property New York, NY - April 29, 2004 - Lexington Corporate Properties Trust (NYSE:LXP), a real estate investment trust, today announced results for its first quarter ended March 31, 2004. Quarterly Highlights - Closed on 10 property investments for an aggregate capitalized cost of $260.6 million, including $28.7 million in joint ventures; - Raised $144.3 million in 6.9 million common share offering; - Obtained $104.8 in new non-recourse first mortgage financings at a weighted average fixed rate of 5.57%; - Arranged additional $147.0 million in non-recourse mortgage financings to close later this year at a weighted average fixed rate of 5.48%, $63.3 million of which have closed in the second quarter; - Sold two non-core retail properties, generating gains of $1.7 million; and - Signed new six-year lease extension on Phoenix, AZ health club. Quarterly Results Funds from operations were $18.8 million, or $0.39 per diluted share/unit, for the first quarter of 2004, after a $0.04 per diluted share/unit non-cash charge relating to a write down in the value of a property held for sale, compared to $17.0 million, or $0.48 per diluted share/unit, for the first quarter of 2003. As a result of the common share offering in 2004, Lexington operated with greater cash balances and lower average leverage than in the first quarter of 2003 and this reduced FFO per share. In addition, portfolio occupancy was 98.9% compared to 99.2% in the prior period. Rental revenues for the quarter totaled $30.3 million, compared to $24.9 million for the same period last year. Net income allocable to common shareholders was $10.4 million in the first quarter of MORE Lexington Corporate Properties Trust Add 1 2004, or $0.24 per diluted share/unit, compared to $8.8 million, which included $0.5 million in gains on sale, or $0.29 per diluted share/unit, for the same period last year. Quarterly Dividends Declared The Company declared a common dividend of $0.35 per share for the first quarter of 2004, payable on May 14, 2004 to common shareholders of record on April 30, 2004. In addition, the Company declared a quarterly preferred dividend of $0.503125 per share, payable on May 17, 2004 to preferred shareholders of record on April 30, 2004. Conference Call Management will discuss the financial results on a conference call today at 2pm Eastern Time. The toll-free dial in number is 800-240-4186 and 303-262-2211. The replay of the call will be available through May 6, 2004. The toll-free telephone number for the replay is 800-405-2236 or 303-590-3000, passcode 577060. 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, "During the first quarter, Lexington continued to take essential steps to position the company for long-term growth. In response to a very strong market for real estate stocks, the Company raised $144.3 million of equity capital by selling 6.9 million common shares. In addition, the Company closed or arranged for new mortgage financings of $251.8 million at a weighted average fixed interest rate of 5.52%, further capitalizing on an environment of low interest rates. We are pleased that Lexington has had the opportunity to increase its capitalization on terms that enhance our long-term objective: a secure and growing dividend for our shareholders." Mr. Eglin added, "We continue to upgrade our portfolio, both by acquiring new properties and by selling non-core properties, as evidenced by the two retail properties we sold during the quarter. Consistent with our portfolio objectives, we have agreed to sell our Marlborough, Massachusetts property for $11.9 million and take a $0.04 per share non-cash impairment charge. On the leasing side, we entered into a six-year lease extension on our Phoenix, Arizona health club. "Our objectives for the balance of 2004 are to complete new leases on six properties presently in negotiation, form a third joint venture to complement our existing investment programs, and continue to upgrade the portfolio through the disposition of non-core holdings and the acquisitions of properties that improve tenant credit quality, lengthen our weighted average lease term, are located in markets with good growth prospects, and which have attractive total return potential. Our activities, while long-term positives for net asset value, portfolio diversification, and portfolio cash flow, will result in Lexington operating with substantially greater cash balances than anticipated in 2004. Accordingly, we are reducing our range of FFO per share guidance by $0.10 per share from $1.83-$1.88 per share to $1.73-$1.78 per share, before the $0.04 per share impairment charge. One of the advantages of having significant cash balances is that we have the option of accelerating our acquisition activities now or MORE Lexington Corporate Properties Trust Add 2 waiting to see if interest rates rise further and going-in yields on new investments increase as a result. Regardless, when our cash balances are invested we believe that Lexington will be able to grow FFO per share by 8-10% in 2005." 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 28, 2004 at $18.88 per share. Lexington pays an annualized dividend of $1.40 per share. Additional information about Lexington is available at www.lxp.com Financial Tables Follow This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company 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, those detailed in the Company's periodic filings with the Securities and Exchange Commission. 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 March 31, 2004 2003 ---- ---- Revenues: Rental $ 30,276 $ 24,933 Advisory fees 950 325 Reimbursements 892 479 Interest and other 68 226 ------- ------- 32,186 25,963 ------- ------- Expenses: Interest 8,653 8,838 Depreciation and amortization 7,535 5,957 General and administrative 3,503 2,299 Property operating 1,875 1,310 Amortization of deferred costs 354 412 ------- ------- 21,920 18,816 ------- ------- 10,266 7,147 Provision for income taxes (766) -- Equity in earnings of joint ventures 1,804 1,349 Minority interest (1,080) (1,073) ------- ------- Income from continuing operations 10,224 7,423 ------- ------- Discontinued operations, net of minority interest: Income from discontinued operations 1,749 881 Impairment charge (1,732) -- Gains on sales of properties 1,737 459 ------- ------- Total discontinued operations 1,754 1,340 ------- ------- Net income 11,978 8,763 Dividends attributable to preferred shares - Series B (1,590) -- ------ ------- Net income allocable to common shareholders $ 10,388 $ 8,763 Depreciation and amortization 7,752 6,361 Minority interests-OP Units 928 1,239 Amortization of leasing commissions 181 200 Joint venture adjustment-depreciation 1,314 908 Gains on sales of properties (1,737) (459) ------- ------- Funds from operations $ 18,826 $ 17,012 ======= ======= Rent below GAAP revenue1 $ 531 $ 1,137 ======= ======= Per share/unit Basic net income $ 0.24 $ 0.29 Diluted net income $ 0.24 $ 0.29 Funds from operations(2)-basic $ 0.39 $ 0.48 Funds from operations(2)-diluted $ 0.39 $ 0.48
MORE Lexington Corporate Properties Trust Add 4
LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands) 3/31/04 12/31/03 ------- -------- Real estate, at cost $ 1,274,907 $ 1,162,395 Accumulated depreciation (157,996) (160,623) Investment in non-consolidated entities 86,800 69,225 Properties held for sale - discontinued operations 79,662 36,478 Cash and cash equivalents 87,694 15,923 Deferred assets, net 10,637 10,013 Rent receivable - deferred 24,324 24,069 Other assets 57,407 49,931 ---------- ---------- $ 1,463,435 $ 1,207,411 ========== ========== Mortgages and notes payable $ 661,677 $ 551,385 Other liabilities 11,341 10,667 Prepaid rent 3,696 2,482 Minority interests 58,124 59,220 Shareholders' equity 728,597 583,657 ---------- ---------- $ 1,463,435 $ 1,207,411 ========== ========== Common shares 48,102,891 40,682,001 Preferred shares-Series B 3,160,000 3,160,000 Operating partnership units 5,385,747 5,430,454 ---------- ---------- 56,648,638 49,272,455 ========== ==========
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. 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 March 31, 2004 2003 ---- ---- Earning Per Share ----------------- Basic Income from continuing operations $ 10,224 $ 7,423 Less preferred dividends (1,590) -- ----------- ---------- Income allocable to common shareholders from continuing operations - basic 8,634 7,423 Total income from discontinued operations - basic 1,754 1,340 ----------- ---------- Net income allocable to common shareholders $ 10,388 $ 8,763 =========== ========== Weighted average number of common shares outstanding 42,474,808 29,983,496 =========== ========== Per share data: Income from continuing operations $ 0.20 $ 0.25 Income from discontinued operations 0.04 0.04 ----------- ---------- Net income $ 0.24 $ 0.29 =========== ========== Diluted Income allocable to common shareholders from continuing operations-basic $ 8,634 $ 7,423 Adjustments: Incremental income attributed to assumed conversion of dilutive securities 1,080 1,073 ----------- ---------- Income allocable to common shareholders from continuing operations-diluted 9,714 8,496 Total income from discontinued operations - diluted 1,704 1,613 ----------- ---------- Net income allocable to common shares - diluted $ 11,418 $ 10,109 =========== ========== Weighted average number of shares used in calculation of basic earnings per share 42,474,808 29,983,496 Add incremental shares representing: Shares issuable upon exercises of employee share options 179,080 160,503 Shares issuable upon conversion of dilutive securities 5,392,625 5,249,715 ----------- ---------- Weighted average number of shares used in calculation of diluted earnings per common share 48,046,513 35,393,714 =========== ========== Per share data: Income from continuing operations - diluted $ 0.20 $ 0.24 Income from discontinued operations - diluted 0.04 0.05 ----------- ---------- Net income - diluted $ 0.24 $ 0.29 =========== ==========
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 March 31, 2004 2003 ---- ---- Funds From Operations --------------------- Basic and Diluted ----------------- Net income allocable to common shareholders - basic $ 10,388 $ 8,763 Adjustments: Depreciation and amortization 7,752 6,361 Minority interests-OP Units 928 1,239 Amortization of leasing commissions 181 200 Joint venture adjustment-depreciation 1,314 908 Gains on sale of properties (1,737) (459) ---------- ---------- Funds from operations $ 18,826 $ 17,012 ========== ========== Basic ----- Weighted average shares outstanding-basic EPS 42,474,808 29,983,496 Operating partnership units 5,392,625 5,249,715 ---------- ---------- Weighted average shares outstanding-basic FFO 47,867,433 35,233,211 ========== ========== FFO per share $ 0.39 $ 0.48 ========== ========== Diluted ------- Weighted average shares outstanding-diluted EPS and FFO 48,046,513 35,393,714 ========== ========== FFO per share $ 0.39 $ 0.48 ========== ==========
###