EX-99 3 ex99-2.txt EX. 99.2 Exhibit 99.2 [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: T. Wilson Eglin Diane Hettwer Tim Grace Chief Executive Officer Analyst Inquiries Media Inquiries (212) 692-7200 (312) 640-6760 (312) 640-6667 FOR IMMEDIATE RELEASE MONDAY, FEBRUARY 28, 2005 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES $786.0 MILLION ACQUISITION OF TWENTY-SEVEN PROPERTY PORTFOLIO FROM WELLS REAL ESTATE FUNDS New York, NY - February 28, 2005 - Lexington Corporate Properties Trust (NYSE:LXP) ("Lexington"), a real estate investment trust, today announced that it has entered into a definitive agreement to purchase twenty-four office buildings, one industrial facility, one office/R & D facility and one office/warehouse property (the "Properties") from affiliates of Wells Real Estate Investment Trust, Inc. and Wells-affiliated joint venture partners The office buildings contain 3.8 million square feet and the remaining three properties contain 1.3 million square feet, and are predominantly leased to single tenants in fourteen states. The purchase price equals $786.0 million ($155 psf). A detailed list of the Properties is attached to this press release. The transaction is expected to close by the end of April, 2005, and is subject to standard closing conditions. E. Robert Roskind, Lexington's Chairman, commented, "This acquisition fits our strategy very well and the timing is great. It is rare to have the opportunity to acquire such a portfolio at any time, but this is especially good timing for us considering the favorable financing environment and the significant range of capital resources available to Lexington to fund an acquisition of this size." Financing Of The Acquisition To finance the acquisition, Lexington has arranged to obtain $558.3 million of non-recourse first mortgage loans (the "Loans") from JPMorgan Chase Bank, N.A., secured by individual first mortgages on each of the Properties and on five other properties which Lexington presently owns free and clear. Thirty-one Loans, with an aggregate original principal amount of $540.7 million, MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 1 will bear interest at a weighted average fixed rate of 5.20%. The remaining Loan, with an original principal amount of $17.6 million, will bear interest at a floating rate. The Loans will mature in six to ten years with a weighted average maturity of approximately eight years, three months. The balance of the purchase price is expected to come from equity commitments of existing joint venture partners (approximately $73.7 million) and cash balances (approximately $154.1 million). The Loans are subject to final documentation and standard closing conditions. Accretive Acquisition Of Office And Industrial Assets Richard J. Rouse, Lexington's Vice Chairman and Chief Investment Officer, said, "We are very pleased to announce this agreement to acquire a high quality portfolio that complements our nationwide single-tenant office and industrial platform and provides us with further portfolio diversification. We believe that this is a highly accretive use of the capital we raised in December, 2004 from our Series C Convertible Preferred Offering." T. Wilson Eglin, Lexington's Chief Executive Officer, added, "The favorable financing that we have arranged underscores the strength of this portfolio. Assuming the transaction closes within the planned time frame, we are increasing our guidance of funds from operations this year by $0.10 per share to a range of $1.95 - $2.00 per share. This would result in a more conservative dividend payout ratio. This conservative payout ratio will allow Lexington to retain additional capital to fund growth and pay down debt." Transaction Highlights >> Lexington substantially exceeds previously forecasted acquisition activity for 2005 with favorable earnings impact; >> Increases Lexington's total assets under management to approximately $3.8 billion; >> Deployment of cash balances ahead of schedule enhances return on equity and funds from operations; and >> Enhanced portfolio diversification and balanced lease rollover. About Lexington Lexington 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 Monday, February 28, 2005 at $22.02 per share. Lexington pays an annualized dividend of $1.44 per share. Additional information about Lexington is available at www.lxp.com Lexington believes that funds from operations ("FFO") enhances an investor's understanding of Lexington's financial condition, results of operations and cash flows. Lexington 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 MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 2 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. 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) supply and demand for properties in our current and proposed market areas, and (ii) those other factors and risks detailed in Lexington's periodic filings with the Securities and Exchange Commission. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "estimates," "projects" or similar expressions. 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 Wells Portfolio Property Summary
-------------------------------------------------------------------------------------------------------------- Year Est. 1st Yr. Lease Square Constructed/ Property Location Tenants or Guarantors NOI ($000) Exps. Footage Renovated -------------------------------------------------------------------------------------------------------------- Office ------ 275 South Valencia Ave. Bank of America $ 7,574 06/12 637,503 1983 Los Angeles, CA 6303 Barfield Road & Internet Security Systems, 5,398 05/13 289,000 2001 859 Mount Vernon Hwy. Inc. 2003 Atlanta, GA1 8900 Freeport Pkwy. Nissan North America, Inc. 4,427 03/13 268,445 2002 Dallas, TX 601 & 701 Experian Pkwy. TRW Inc./Experian 3,579 10/10 292,700 1981 Dallas, TX Information Solutions, Inc. 1983 110, 120, & 130 E. Shore Dr. Capital One Services, Inc. 2,800 03/10 68,500 2000 Richmond, VA2 05/06 77,045 1998 02/10 79,675 2000 2050 Roanoke Road Chrysler Financial Company 2,390 12/11 130,290 2001 Ft. Worth, TX LLC 27404 Drake Road Dana Corporation 2,331 10/21 112,480 1999 Farmington Hills, MI 1311 Broadfield Blvd. Transocean, Inc. 2,233 03/11 103,260 2000 Houston, TX Newpark Resources, Inc. 08/09 52,731 810-820 Gears Road IKON Office Solutions, Inc. 2,211 01/13 157,790 2000 Houston, TX 200 Lucent Lane Lucent Technologies, Inc. 1,996 09/11 120,000 1999 Raleigh, NC 8555 South River Pkwy. ASM Lithography Holding NV 1,939 06/13 95,133 1998 Tempe, AZ 10475 Crosspoint Blvd. John Wiley & Sons, Inc. 1,825 10/09 123,674 1999 Fishers, IN Robert Half International 04/05 2,960 United Student Aid Fund 07/05 14,413 3201 Quail Springs Pkwy. AT&T Wireless Services, Inc. 1,656 08/10 103,500 1999 Oklahoma City, OK Jordan Associates, Inc. 12/08 25,000 16676 Northcase Dr. Kerr-McGee Corporation 1,545 07/14 101,111 2003 Houston, TX 6200 Northwest Pkwy. PacifiCare Health Systems, 1,528 11/10 142,500 2000 San Antonio, TX Inc. 2550 Interstate Dr. AT&T Wireless Services, Inc. 1,412 11/08 81,859 1998 Harrisburg, PA
MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 4 Lexington Corporate Properties Trust Wells Portfolio Property Summary
------------------------------------------------------------------------------------------------------------------ Year Property Location Tenants or Guarantors Est. 1st Year Lease Square Constructed/ NOI ($000) Exps. Footage Renovated ------------------------------------------------------------------------------------------------------------------ 15501 North Dial Blvd. The Dial Corporation 1,388 08/08 129,689 1998 Phoenix, AZ 2310 Village Square Pkwy. AmeriCredit Corporation 1,330 06/11 85,000 2001 Jacksonville, FL 4848 129th East Ave. Metris Companies, Inc. 1,307 01/10 101,100 2000 Tulsa, OK 4000 Johns Creek Pkwy. Kraft Foods North America, Inc. 1,214 01/12 73,264 2001 Atlanta, GA PerkinElmer Instruments LLC 11/16 13,955 2800 Waterford Lake Dr. Alstom Power, Inc. 1,175 10/14 99,057 2000 Richmond, VA 3940 South Teller St. Travelers Express Company, 1,091 03/12 68,165 2002 Lakewood, CO Inc. 5757 Decatur Blvd. Allstate Insurance Company 1,075 08/12 84,200 2002 Indianapolis, IN Holladay Property Services 09/06 5,756 Midwest Inc. 12600 Gateway Blvd. Gartner, Inc. 981 01/13 62,400 1997 Ft. Meyers, FL ----------------------------------------------------------------------- Subtotal - Office $ 54,405 3,802,155 ----------------------------------------------------------------------- Industrial ---------- 3820 Micro Drive Ingram Micro Inc. $ 2,035 09/11 701,819 1997 Memphis, TN Office/R & D 6938 Elm Valley Dr. Dana Corporation 1,843 10/21 150,945 1999 Kalamazoo, MI Warehouse/Office ---------------- 3600 Army Post Rd. Electronic Data Systems 2,605 04/12 405,000 2002 Des Moines, IA Corp. ----------------------------------------------------------------------- Grand Total $ 60,888 5,059,919 -----------------------------------------------------------------------
1 Three buildings - buildings one and two were constructed in 2001, and building three was constructed in 2003. 2 Three buildings. ###