EX-99 2 ex99-1.txt EX. 99.1: PRESS RELEASE Exhibit 99.1 [FINANCIAL RELATIONS BOARD LOGO] [NEWS 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 MAY 5, 2005 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES FIRST QUARTER RESULTS New York, NY - May 5, 2005- Lexington Corporate Properties Trust (NYSE:LXP) ("Lexington"), a real estate investment trust, today announced results for its first quarter ended March 31, 2005. First Quarter Highlights ------------------------ o Acquired one property for $12 million at a GAAP cap rate of 9.5%; o Sold two non-core properties for $0.8 million in excess of aggregate book value; o Expanded equity base by approximately $20 million by issuing convertible preferred shares which were subject to an over-allotment option; o Obtained $45.8 million non-recourse mortgage financings secured by three properties at a weighted average fixed interest rate of 5.05% in one joint venture program; and o Extended leases on three properties including one in a joint venture program. Quarterly Results Funds from operations were $23.1 million, or $0.39 per diluted common share/unit, for the first quarter of 2005. This compares to $18.8 million, or $0.39 per diluted common share/unit, for the first quarter of 2004, net of $1.7 million in impairment charges. Lexington operated with greater cash balances and vacancy than in the prior year and this limited growth in FFO per share. Rental revenues for the quarter totaled $37.5 million, compared to rental revenues of $31.3 million for the same period last year. Net income allocable to common shareholders was $5.4 million in the first quarter of 2005, after $0.7 million in gains on sale of properties, or $0.11 per diluted common share/unit. This compares to $10.4 million, after the impact of $1.7 million impairment charges and $1.7 million in gains on sale of properties, or $0.24 per diluted common share/unit, for the same period last year. MORE Lexington Corporate Properties Add 1 Conference Call Management will discuss the financial results and Lexington's business plan on a conference call today at 2:00 p.m. Eastern time. The toll-free dial-in number is 800-218-0530. A replay of the conference call will be available through May 12, 2005. The toll-free telephone number for the replay is 800-405-2236, passcode 11027853. International callers can access the conference call by dialing 303-262-2131 and the replay by dialing 303-590-3000 (same passcode). The conference call can also be accessed on the internet at http://www.lxp.com. Comments From Management Commenting on Lexington's financial results, T. Wilson Eglin, Chief Executive Officer said, "First quarter funds from operations per share were impacted by extremely high cash balances of approximately $150 million, substantially all of which were invested in the Wells acquisition which closed on April 13, 2005. As a result, we expect to report strong growth in funds from operations per share during the balance of this year." Mr. Eglin added, "We also made good progress on the leasing front, extending leases with three of our tenants and signing a new lease in the second quarter for approximately 21,000 square feet at our formerly vacant facility in Hebron, Kentucky. In addition, we sold two non-core retail properties at favorable prices. More recently, in the second quarter we sold our Columbia, Maryland retail property, a property we purchased in 1998, for approximately $11.6 million - a price $5.0 million in excess of our investment in the property. This is further evidence of the tremendous increase in property values and our own net asset value per share in recent years." 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, May 4, 2005 at $23.85 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 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 Add 2 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. Forward-looking statements, which are based on certain assumptions and describe the Company'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. Financial Tables Follow MORE Lexington Corporate Properties 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, 2005 2004 ---- ---- Gross revenues: Rental $ 37,459 $ 31,311 Advisory fees 634 950 Tenant reimbursements 549 1,512 Total gross revenues 38,642 33,773 ------------ ------------ Expense applicable to revenues: Depreciation and amortization (11,913) (7,284) Property operating (2,313) (2,287) General and administrative (4,347) (3,475) Non-operating income 684 114 Interest and amortization expense (12,671) (9,327) ------------ ------------ Income before provision for income taxes, minority interests, equity in earnings of non-consolidated entities and discontinued operations 8,082 11,514 Provision for income taxes (96) (872) Minority interests (881) (1,239) Equity in earnings of joint ventures 1,425 1,804 ------------ ------------ Income from continuing operations 8,530 11,207 ------------ ------------ Discontinued operations, net of minority interest: Income from discontinued operations 282 766 Impairment charges (30) (1,732) Gains on sales of properties 744 1,737 ------------ ------------ Total discontinued operations 996 771 ------------ ------------ Net income 9,526 11,978 Dividends attributable to preferred shares - Series B (1,590) (1,590) Dividends attributable to preferred shares - Series C (2,519) - ------------ ------------ Net income allocable to common shareholders $ 5,417 $ 10,388 Depreciation and amortization 11,789 7,752 Minority interests - OP Units 857 928 Amortization of leasing commissions 124 181 Joint venture adjustment - depreciation 3,148 1,314 Preferred share dividend - Series C 2,519 - Gains on sales of properties (744) (1,737) ------------ ------------ Funds from operations(2) $ 23,110 $ 18,826 ============ ============ Rent below GAAP revenue(1) $ 59 $ 531 ============ ============ Per share/unit Basic net income $ 0.11 $ 0.24 Diluted net income $ 0.11 $ 0.24 Funds from operations(2)-basic $ 0.39 $ 0.39 Funds from operations(2)-diluted $ 0.39 $ 0.39
Lexington Corporate Properties Add 4 LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands)
3/31/05 12/31/04 ------- -------- Real estate, at cost $ 1,414,201 $ 1,407,872 Accumulated depreciation (190,643) (180,610) Investment in joint ventures 132,526 132,738 Properties held for sale - discontinued operations 17,162 13,216 Intangible assets, net 54,280 54,736 Cash and cash equivalents 150,551 146,957 Deferred expenses, net 8,346 7,860 Rent receivable 421 4,123 Rent receivable - deferred 23,516 23,923 Due from affiliates - 45,800 Other assets 93,983 40,472 ------------------- ------------------- $ 1,704,343 $ 1,697,087 =================== =================== Mortgages and notes payable $ 758,487 $ 765,144 Liabilities - discontinued operations 959 1,688 Other liabilities 20,000 22,388 Prepaid rent 7,702 3,818 Minority interests 55,449 56,759 Shareholders' equity 861,746 847,290 ------------------- ------------------- $ 1,704,343 $ 1,697,087 =================== =================== Common shares 49,133,925 48,621,273 Preferred shares - Series B 3,160,000 3,160,000 Preferred shares - Series C 3,100,000 2,700,000 Operating partnership units 5,374,499 5,408,699 ------------------- ------------------- 60,768,424 59,889,972 =================== ===================
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. Lexington Corporate Properties 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, 2005 2004 ---- ---- Earning Per Share ----------------- Basic Income from continuing operations $ 8,530 $ 11,207 Less preferred dividends (4,109) (1,590) ------------- ------------- Income allocable to common shareholders from continuing operations - basic 4,421 9,617 Total income from discontinued operations - basic 996 771 ------------- ------------- Net income allocable to common shareholders $ 5,417 $ 10,388 ============= ============= Weighted average number of common shares outstanding 48,350,656 42,474,808 ============= ============= Per share data: Income from continuing operations $ 0.09 $ 0.23 Income from discontinued operations 0.02 0.01 ------------- ------------- Net income $ 0.11 $ 0.24 ============= ============= Diluted Income allocable to common shareholders from continuing operations-basic $ 4,421 $ 9,617 Adjustments: Incremental income attributed to assumed conversion of dilutive securities - - ------------- ------------- Income allocable to common shareholders from continuing operations-diluted 4,421 9,617 Total income from discontinued operations - diluted 996 771 ------------- ------------- Net income allocable to common shareholders - diluted $ 5,417 $ 10,388 ============= ============= Weighted average number of shares used in calculation of basic earnings per share 48,350,656 42,474,808 Add incremental shares representing: Shares issuable upon exercises of employee share options 79,289 179,080 Shares issuable upon conversion of dilutive securities - - ------------- ------------- Weighted average number of shares used in calculation of diluted earnings per common share 48,429,945 42,653,888 ============= ============= Per share data: Income from continuing operations - diluted $ 0.09 $ 0.23 Income from discontinued operations - diluted 0.02 0.01 ------------- ------------- Net income - diluted $ 0.11 $ 0.24 ============= =============
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 March 31, 2005 2004 ---- ---- Funds From Operations --------------------- Basic and Diluted ----------------- Net income allocable to common shareholders $ 5,417 $ 10,388 Adjustments: Depreciation and amortization 11,789 7,752 Minority interests-OP Units 857 928 Amortization of leasing commissions 124 181 Joint venture adjustment-depreciation 3,148 1,314 Preferred dividends-Series C 2,519 - Gains on sale of properties (744) (1,737) --------------- --------------- Funds from operations $ 23,110 $ 18,826 =============== =============== Basic ----- Weighted average shares outstanding-basic EPS 48,350,656 42,474,808 Operating partnership units 5,386,281 5,392,625 Preferred shares - Series C 5,779,330 - --------------- --------------- Weighted average shares outstanding-basic FFO 59,516,267 47,867,433 =============== =============== FFO per share $ 0.39 $ 0.39 =============== =============== Diluted ------- Weighted average shares outstanding-diluted EPS 48,429,945 42,653,888 Operating partnership units 5,386,281 5,392,625 Preferred shares - Series C 5,779,330 - --------------- --------------- Weighted average shares outstanding-diluted FFO 59,595,556 48,046,513 =============== =============== FFO per share $ 0.39 $ 0.39 =============== ===============
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