EX-99 2 ex99-1.txt EX. 99.1 Exhibit 99.1 [FINANCIAL RELATIONS BOARD LOGO] NEWS 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 Lisa Fortuna Tim Grace Chief Financial Officer Analyst Inquiries Media Inquiries (212) 692-7200 (312) 640-6779 (312) 640-6667 FOR IMMEDIATE RELEASE THURSDAY APRIL 27, 2006 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES FIRST QUARTER RESULTS New York, NY - April 27, 2006 - Lexington Corporate Properties Trust (NYSE:LXP) ("Lexington"), a real estate investment trust, today announced results for its first quarter ended March 31, 2006. First Quarter Highlights ------------------------ o Acquired two properties for $44.1 million; o Sold two non-core properties resulting in an aggregate gain of $2.3 million; o Obtained $74.4 million of non-recourse mortgage financings (including joint ventures) secured by four properties at a weighted average fixed interest rate of 5.59%; and o Signed first lease for 48,000 square feet in formerly vacant Dallas, Texas property. Quarterly Results Funds from operations ("FFO") were $28.7 million, or $0.45 per diluted common share/unit, net of $1.0 million in debt satisfaction charges ($0.02 per diluted common share/unit), for the first quarter of 2006. This compares to FFO of $23.1 million, or $0.39 per diluted common share/unit, for the first quarter of 2005. Rental revenues for the quarter totaled $48.5 million, compared to rental revenues of $35.5 million for the same period last year. Net income allocable to common shareholders was $2.0 million in the first quarter of 2006, after $2.3 million in gains on sale of properties and $1.0 million in debt satisfaction charges, or $0.04 per diluted common share/unit. This compares to $5.4 million of net income allocable to common shareholders, after the impact of $0.7 million in gains on sale of properties, or $0.11 per diluted common share/unit, for the same period last year. MORE LEXINGTON CORPORATE PROPERTIES TRUST 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 800-240-7305. A replay of the conference call will be available through May 4, 2006. The toll-free telephone number for the replay is 800-405-2236, passcode 11058112. International callers can access the conference call by dialing 303-205-0033 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, "Lexington's operating results for the first quarter of 2006 showed strong growth compared to the prior year. Funds from operations per share excluding debt satisfaction charges were $0.47 per share, compared to $0.39 per share for the same period last year representing an increase of about 21%. The debt satisfaction charges mainly related to the refinancing of a property that was recently expanded on terms that we believe created significant value. Our modest acquisition volume of $44.1 million reflects highly competitive market conditions and our belief that we should maintain our balance sheet flexibility until investment opportunities are more favorable. During the first quarter we signed our first lease at our formerly vacant Dallas, Texas property and sold two properties which generated gains of $2.3 million. Subsequent to quarter end, we sold another property for $29.0 million - almost $10.0 million more than we acquired it for a little over four years ago. These dispositions reflect the significant increase in our net asset value per share that has occurred over the last several years." About Lexington 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 26, 2006 at $20.88 per share. Lexington currently pays an annualized dividend of $1.46 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 TRUST 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 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, 2006 2005 ---- ---- Gross revenues: Rental $ 48,513 $ 35,486 Advisory fees 1,063 634 Tenant reimbursements 4,433 883 ------- ------- Total gross revenues 54,009 37,003 Expense applicable to revenues: Depreciation and amortization (20,241) (11,550) Property operating (7,895) (2,637) General and administrative (5,616) (4,345) Non-operating income 795 684 Interest and amortization expense (17,892) (12,220) Debt satisfaction charge (947) - ------- ------- Income before benefit (provision) for income taxes, minority interests, equity in earnings of non-consolidated entities and discontinued operations 2,213 6,935 Benefit (provision) for income taxes 73 (96) Minority interests (493) (828) Equity in earnings of non-consolidated entities 1,245 1,425 ------- ------- Income from continuing operations 3,038 7,436 ------- ------- Discontinued operations, net of minority interest and taxes: Income from discontinued operations 799 1,376 Debt satisfaction charge (78) - Impairment charge - (30) Gains on sales of properties 2,319 744 ------- ------- Total discontinued operations 3,040 2,090 ------- ------- Net income 6,078 9,526 Dividends attributable to preferred shares - Series B (1,590) (1,590) Dividends attributable to preferred shares - Series C (2,519) (2,519) -------- -------- Net income allocable to common shareholders $ 1,969 $ 5,417 ======= ======= Funds from operations(1) $ 28,653 $ 23,110 ======= ======= Per share/unit: Basic net income $ 0.04 $ 0.11 Diluted net income $ 0.04 $ 0.11 Funds from operations(1)-basic $ 0.45 $ 0.39 Funds from operations(1)-diluted $ 0.45 $ 0.39 MORE LEXINGTON CORPORATE PROPERTIES TRUST ADD 4 LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands) 3/31/06 12/31/05 ------- -------- Real estate, at cost $ 1,879,441 $ 1,883,115 Accumulated depreciation (243,820) (241,188) Investment in joint ventures 187,741 191,146 Properties held for sale - discontinued 38,892 49,397 operations Intangible assets, net 140,074 128,775 Cash and cash equivalents 61,278 53,515 Deferred expenses, net 14,404 13,582 Rent receivable 3,226 7,673 Rent receivable - deferred 24,795 24,778 Other assets 55,796 49,439 ---------------- ---------------- $ 2,161,827 $ 2,160,232 ================ ================ Mortgages and notes payable $ 1,172,478 $ 1,139,971 Liabilities - discontinued operations 19,730 32,145 Other liabilities 28,964 35,434 Minority interests 60,043 61,372 Shareholders' equity 880,612 891,310 ---------------- ---------------- $ 2,161,827 $ 2,160,232 ================ ================ Common shares 52,866,743 52,155,855 Preferred shares - Series B 3,160,000 3,160,000 Preferred shares - Series C 3,100,000 3,100,000 Operating partnership units 5,629,916 5,720,071 ---------------- ---------------- 64,756,659 64,135,926 ================ ================ 1 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, 2006 2005 ---- ---- Earnings Per Share ------------------ Basic Income from continuing operations $ 3,038 $ 7,436 Less preferred dividends (4,109) (4,109) ------------- ------------ Income (loss) allocable to common shareholders from continuing operations - basic (1,071) 3,327 Total income from discontinued operations - basic 3,040 2,090 ------------- ------------ Net income allocable to common shareholders - basic $ 1,969 $ 5,417 ============ ============ Weighted average number of common shares outstanding 51,844,001 48,350,656 ============ ============ Per share data: Income (loss) from continuing operations $ (0.02) $ 0.07 Income from discontinued operations 0.06 0.04 ------------- ------------ Net income - basic $ 0.04 $ 0.11 ============ ============ Diluted Income (loss) allocable to common shareholders from continuing operations-basic $ (1,071) $ 3,327 Adjustments: Incremental income attributed to assumed conversion of dilutive securities - - ------------- ------------ Income (loss) allocable to common shareholders from continuing operations-diluted (1,071) 3,327 Total income from discontinued operations - diluted 3,040 2,090 ------------- ------------ Net income allocable to common shareholders - diluted $ 1,969 $ 5,417 ============ ============ Weighted average number of shares used in calculation of basic earnings per share 51,844,001 48,350,656 Add incremental shares representing: Shares issuable upon exercises of employee share options - 79,289 Shares issuable upon conversion of dilutive securities - - ------------- ------------ Weighted average number of shares used in calculation of diluted earnings per common share 51,844,001 48,429,945 ============ ============ Per share data: Income (loss) from continuing operations - diluted $ (0.02) $ 0.07 Income from discontinued operations - diluted 0.06 0.04 ------------- ------------ Net income - diluted $ 0.04 $ 0.11 ============ ============
MORE 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, 2006 2005 ---- ---- Funds From Operations --------------------- Basic and Diluted ----------------- Net income allocable to common shareholders $ 1,969 $ 5,417 Adjustments: Depreciation and amortization 20,127 11,789 Minority interests-OP Units 687 857 Amortization of leasing commissions 139 124 Joint venture adjustment-depreciation 5,482 3,148 Preferred dividends-Series C 2,519 2,519 Gains on sale of properties (2,319) (744) Taxes incurred on sale of property 49 - ---------- ---------- Funds from operations $ 28,653 $ 23,110 ========== ========== Basic ----- Weighted average shares outstanding-basic EPS 51,844,001 48,350,656 Operating partnership units 5,653,092 5,386,281 Preferred shares - Series C 5,779,330 5,779,330 ---------- ---------- Weighted average shares outstanding-basic FFO 63,276,423 59,516,267 ========== ========== FFO per share $ 0.45 $ 0.39 ========== ========== Diluted ------- Weighted average shares outstanding-diluted EPS 51,844,001 48,429,945 Common share options 32,069 - Operating partnership units 5,653,092 5,386,281 Preferred shares - Series C 5,779,330 5,779,330 ---------- ---------- Weighted average shares 63,308,492 59,595,556 outstanding-diluted FFO ========== ========== FFO per share $ 0.45 $ 0.39 ========== ========== ###