EX-99 2 ex99-1.txt EX. 99.1 Exhibit 99.1 [FINANCIAL RELATIONS BOARD LOGO] 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 Tim Grace Chief Financial Officer Analyst Inquiries Media Inquiries (212) 692-7200 (312) 640-6760 (312) 640-6667 FOR IMMEDIATE RELEASE Thursday, October 28, 2004 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES THIRD QUARTER OPERATING RESULTS New York, NY - October 28, 2004 - Lexington Corporate Properties Trust (NYSE:LXP) ("Lexington"), a real estate investment trust, today announced results for its third quarter ended September 30, 2004. Quarterly Highlights - Closed on 10 investments for an aggregate capitalized cost of $257.5 million, including $161.0 million in joint ventures; - Obtained $79.2 million in new non-recourse first mortgage financings at a weighted-average fixed rate of 5.21%, including $58.9 million at a weighted-average fixed rate of 5.16% for joint ventures; - Signed three lease extensions on portfolio properties; and - Sold two properties for net proceeds of $13.7 million. Quarterly Results Funds from operations ("FFO") were $23.6 million, or $0.44 per diluted share/unit, for the third quarter of 2004, after a non-cash impairment charge of $0.6 million ($0.01 per diluted share/unit) relating to three properties and a $0.5 million ($0.01 per diluted share/unit) expense relating to the departure of a senior executive, compared to $18.3 million, or $0.45 per diluted share/unit, for the third quarter of 2003. Rental revenue for the quarter totaled $35.7 million, compared to $27.4 million for the same period last year. Net income allocable to common shareholders for the third quarter of 2004 was $9.6 million, which includes $0.6 million of impairment charges relating to three properties and $0.5 million in expenses relating to the departure of a senior executive, compared to $8.4 million for the same period last year. MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 1 Nine Month Results For the nine months ended September 30, 2004, FFO were $65.1 million, or $1.26 per diluted share/unit, compared to $44.8 million, after $7.7 million of debt satisfaction charges ($0.20 per diluted share/unit), or $1.18 per diluted share/unit, for the same period last year. Rental revenue for the nine months ended September 30, 2004 totaled $101.6 million, compared to $78.9 million for the same period last year. Net income allocable to common shareholders for the nine months ended September 30, 2004 was $33.0 million, which includes $4.1 million of gains on sales of four properties, $2.8 million of impairment charges relating to three properties, and $0.5 million in expenses relating to the departure of a senior executive, compared to $19.4 million, which included $7.7 million of debt satisfaction charges and $1.1 million of gains on sales of three properties, for the same period last year. Quarterly Dividends Declared Lexington declared a common dividend of $0.35 per share, payable on November 15, 2004 to common shareholders of record on October 29, 2004. Lexington also declared a dividend on its Series B Cumulative Redeemable Preferred Shares of $0.503125 per preferred share, payable on November 15, 2004 to preferred shareholders of record on October 29, 2004. Conference Call Management will discuss the financial results on a conference call today at 2:00p.m. Eastern Time. The toll-free dial in number is 800-218-0204. The replay of the call will be available through November 4, 2004. The toll-free telephone number for the replay is 800-405-2236, passcode 11009845. The international number is 303-262-2131 and a replay can be accessed via 303-590-3000, passcode 11009845. The conference call can also be accessed on the internet at www.lxp.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, "This was a great quarter for Lexington. Before the impairment charge, funds from operations per diluted share/unit would have been the same as in the third quarter last year even though our cash position increased by $94 million over the last twelve months and quarterly revenue was impacted by the loss of $717,000 of rental revenue due to two vacancies. During the quarter, Lexington continued to implement a growth-oriented business plan by making new investments totaling $257.5 million. Year-to-date, Lexington has invested $137.4 million of capital in $673.1 million of property investments. These investments, together with others scheduled to close this quarter, are expected to lead to funds from operations of $0.45-$0.47 per diluted share/unit in the fourth quarter and $1.76 -$1.78 of funds from operations per diluted share/unit for 2004, before the $0.05 per diluted share/unit in impairment charges. We continue to believe that Lexington is well-positioned to deliver growth in funds from operations per diluted share/unit of 8-10% in 2005." MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 2 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 27, 2004, at $22.54 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 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. 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. 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, 2004 2003 2004 2003 ---- ---- ---- ---- Gross revenues: Rental $ 35,662 $ 27,409 $ 101,605 $ 78,926 Advisory fees 1,448 184 3,174 690 Tenant reimbursements 1,396 1,106 4,270 3,439 --------- --------- --------- --------- Total gross revenues 38,506 28,699 109,049 83,055 Expense applicable to revenues: Depreciation and amortization (11,198) (7,093) (28,264) (20,203) Property operating (2,999) (2,193) (8,076) (6,037) General and administrative (3,969) (2,617) (9,990) (7,291) Non-operating income 1,815 789 2,586 1,303 Interest and amortization expense (12,578) (8,314) (34,254) (27,425) Debt satisfaction charges -- -- -- (7,685) --------- --------- --------- --------- Income before provision for income taxes, minority interests and equity in earnings of joint ventures 9,577 9,271 31,051 15,717 Provision for income taxes (243) -- (1,497) -- Minority interests (766) (1,512) (2,985) (2,390) Equity in earnings of joint ventures 1,862 1,414 5,383 4,156 --------- --------- --------- --------- Income from continuing operations 10,430 9,173 31,952 17,483 --------- --------- --------- --------- Discontinued operations, net of minority interest: Income from discontinued operations 1,295 789 4,516 2,582 Impairment charge (562) -- (2,775) -- Gains on sales of properties -- -- 4,065 1,143 --------- --------- --------- --------- Total discontinued operations 733 789 5,806 3,725 --------- --------- --------- --------- Net income 11,163 9,962 37,758 21,208 Dividends attributable to preferred shares - Series B (1,590) (1,590) (4,770) (1,802) --------- --------- --------- --------- Net income allocable to common shareholders $ 9,573 $ 8,372 $ 32,988 $ 19,406 Depreciation and amortization 11,014 7,109 27,874 20,330 Minority interests-OP Units 771 1,603 2,880 2,704 Amortization of leasing commissions 184 206 549 606 Joint venture adjustment-depreciation 2,029 978 4,902 2,867 Gains on sales of properties -- -- (4,065) (1,143) --------- --------- --------- --------- Funds from operations(2) $ 23,571 $ 18,268 $ 65,128 $ 44,770 ========= ========= ========= ========= Rent below GAAP revenue(1) $ 1,111 $ 868 $ 2,860 $ 3,018 ========= ========= ========= ========= Per share/unit Basic net income $ 0.20 $ 0.24 $ 0.72 $ 0.60 Diluted net income $ 0.19 $ 0.24 $ 0.71 $ 0.58 Funds from operations(2)-basic $ 0.44 $ 0.46 $ 1.27 $ 1.18 Funds from operations(2)-diluted $ 0.44 $ 0.45 $ 1.26 $ 1.18
MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 4 LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands)
9/30/04 12/31/03 Real estate, at cost $ 1,335,650 $ 1,162,395 Accumulated depreciation (180,660) (160,623) Investment in joint ventures 123,574 69,225 Properties held for sale - discontinued operations 39,327 36,478 Intangible assets, net 27,464 14,736 Cash and cash equivalents 106,123 15,923 Deferred expenses, net 9,232 10,013 Accounts receivable 136 - Rent receivable - deferred 25,313 24,069 Other assets 44,057 35,195 --------------- --------------- $ 1,530,216 $ 1,207,411 =============== =============== Mortgages and notes payable $ 725,845 $ 551,385 Other liabilities 16,282 10,667 Prepaid rent 5,508 2,482 Minority interests 58,538 59,220 Shareholders' equity 724,043 583,657 --------------- --------------- $ 1,530,216 $ 1,207,411 =============== =============== Common shares 48,464,996 40,682,001 Preferred shares-Series B 3,160,000 3,160,000 Operating partnership units 5,328,858 5,430,454 --------------- --------------- 56,953,854 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 Nine Months Ended September 30, September 30, 2004 2003 2004 2003 ---- ---- ---- ---- Earning Per Share ----------------- Basic Income from continuing operations $ 10,430 $ 9,173 $ 31,952 $ 17,483 Less preferred dividends (1,590) (1,590) (4,770) (1,802) ------------ ------------ ------------ ------------ Income allocable to common shareholders from continuing operations - basic 8,840 7,583 27,182 15,681 Total income from discontinued operations - basic 733 789 5,806 3,725 ------------ ------------ ------------ ------------ Net income allocable to common shareholders $ 9,573 $ 8,372 $ 32,988 $ 19,406 ============ ============ ============ ============ Weighted average number of common shares outstanding 47,901,818 34,780,279 46,033,992 32,579,011 ============ ============ ============ ============ Per share data: Income from continuing operations $ 0.18 $ 0.22 $ 0.59 $ 0.48 Income from discontinued operations 0.02 0.02 0.13 0.12 ------------ ------------ ------------ ------------ Net income $ 0.20 $ 0.24 $ 0.72 $ 0.60 ============ ============ ============ ============ Diluted Income allocable to common shareholders from continuing operations-basic $ 8,840 $ 7,583 $ 27,182 $ 15,681 Adjustments: Incremental earnings attributed to assumed conversion of dilutive securities 761 -- 2,980 2,390 ------------ ------------ ------------ ------------ Income allocable to common shareholders from continuing operations-diluted 9,601 7,583 30,162 18,071 Total income from discontinued operations - diluted 744 789 6,397 4,151 ------------ ------------ ------------ ------------ Net income allocable to common shares - diluted $ 10,345 $ 8,372 $ 36,559 $ 22,222 ============ ============ ============ ============ Weighted average number of shares used in calculation of basic earnings per share 47,901,818 34,780,279 46,033,992 32,579,011 Add incremental shares representing: Shares issuable upon exercises of employee share options 118,533 193,151 129,695 188,988 Shares issuable upon conversion of dilutive securities 5,329,395 -- 5,357,968 5,221,564 ------------ ------------ ------------ ------------ Weighted average number of shares used in calculation of diluted earnings per common share 53,349,746 34,973,430 51,521,655 37,989,563 ============ ============ ============ ============ Per share data: Income from continuing operations - diluted $ 0.18 $ 0.22 $ 0.59 $ 0.47 Income from discontinued operations - diluted 0.01 0.02 0.12 0.11 ------------ ------------ ------------ ------------ Net income - diluted $ 0.19 $ 0.24 $ 0.71 $ 0.58 ============ ============ ============ ============
MORE LEXINGTON CORPORATE PROPERTIES 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, 2004 2003 2004 2003 ---- ---- ---- ---- Funds From Operations --------------------- Basic and Diluted ----------------- Net income allocable to common shareholders - basic $ 9,573 $ 8,372 $ 32,988 $ 19,406 Adjustments: Depreciation and amortization 11,014 7,109 27,874 20,330 Minority interests-OP Units 771 1,603 2,880 2,704 Amortization of leasing commissions 184 206 549 606 Joint venture adjustment-depreciation 2,029 978 4,902 2,867 Gains on sale of properties -- -- (4,065) (1,143) ------------ ------------ ------------ ------------ Funds from operations $ 23,571 $ 18,268 $ 65,128 $ 44,770 ============ ============ ============ ============ Basic ----- Weighted average shares outstanding-basic EPS 47,901,818 34,780,279 46,033,992 32,579,011 Operating partnership units 5,329,395 5,202,975 5,357,968 5,221,564 ------------ ------------ ------------ ------------ Weighted average shares outstanding-basic FFO 53,231,213 39,983,254 51,391,960 37,800,575 ============ ============ ============ ============ FFO per share $ 0.44 $ 0.46 $ 1.27 $ 1.18 ============ ============ ============ ============ Diluted ------- Weighted average shares outstanding-diluted EPS 53,349,746 34,973,430 51,521,655 37,989,563 Operating partnership units -- 5,202,975 -- -- ------------ ------------ ------------ ------------ Weighted average shares outstanding-diluted FFO 53,349,746 40,176,405 51,521,655 37,989,563 ============ ============ ============ ============ FFO per share $ 0.44 $ 0.45 $ 1.26 $ 1.18 ============ ============ ============ ============
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