-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hof8j87yIX7Tt5DclP5Icrc76+VXTvkhYCi98dycYFx5+mLAUPwRupi5Bz80GO9z /YE/9hOESBVJBXYNjOUjgw== 0001116679-06-002500.txt : 20061027 0001116679-06-002500.hdr.sgml : 20061027 20061027162558 ACCESSION NUMBER: 0001116679-06-002500 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20061026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061027 DATE AS OF CHANGE: 20061027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEXINGTON CORPORATE PROPERTIES TRUST CENTRAL INDEX KEY: 0000910108 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 133717318 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12386 FILM NUMBER: 061169230 BUSINESS ADDRESS: STREET 1: 355 LEXINGTON AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126927260 MAIL ADDRESS: STREET 1: 355 LEXINGTON AVE STREET 2: 14TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: LEXINGTON CORPORATE PROPERTIES INC DATE OF NAME CHANGE: 19930816 8-K 1 lex8k.htm OCTOBER 26, 2006

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

 

Date of report (Date of earliest event reported)

  October 26, 2006

 

Lexington Corporate Properties Trust

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland

(State or Other Jurisdiction of Incorporation)

 

1-12386

13-3717318

(Commission File Number)

(IRS Employer Identification No.)

 

One Penn Plaza, Suite 4015

 

New York, New York

10119-4015

(Address of Principal Executive Offices)

(Zip Code)

 

(212) 692-7200

(Registrant’s Telephone Number, Including Area Code)

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

ý

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.

Results of Operations and Financial Conditions.

 

On October 26, 2006, Lexington Corporate Properties Trust (the “Trust”) issued a press release announcing its financial results for the quarter and nine months ended September 30, 2006 (the “Press Release”). A copy of the Press Release is furnished herewith as Exhibit 99.1.

 

The information furnished pursuant to this “Item 2.02 Results of Operations and Financial Condition,” including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing of the Trust under the Securities Act of 1933, as amended (the “Act”), or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 7.01.

Regulation FD Disclosure.

 

On October 26, 2006, the Trust made available supplemental information (the “Supplemental Reporting Package”) concerning its operations and portfolio for the quarter and nine months ended September 30, 2006. A copy of this supplemental information is furnished herewith as Exhibit 99.2.

 

Also on October 26, 2006, the management of the Trust discussed the financial results and the Trust’s business plan, including the previously announced merger with Newkirk Realty Trust, Inc., on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.3.

 

The information furnished pursuant to this “Item 7.01 Regulation FD Disclosure,” including Exhibit 99.2 and Exhibit 99.3, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing of the Trust under the Act or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01.

Financial Statements and Exhibits.

 

 

(a)

Not applicable

 

(b)

Not applicable

 

(c)

Exhibits

 

99.1

Press Release issued October 26, 2006.

99.2

Supplemental Reporting Package for the quarter and nine months ended September 30, 2006.

99.3

Transcript of conference call held October 26, 2006.

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Lexington Corporate Properties Trust

 

Date: October 27, 2006

By:

/s/ Patrick Carroll                          

 

Patrick Carroll

 

Chief Financial Officer

 

 

 

 

Exhibit Index

 

99.1

Press Release issued October 26, 2006.

99.2

Supplemental Reporting Package for the quarter and nine months ended September 30, 2006.

99.3

Transcript of conference call held October 26, 2006.

 

 

 

 EX-99 2 ex99-1.htm EX. 99.1: PRESS RELEASE

Exhibit 99.1


 

 

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

Claire Koeneman

Tim Grace

 

Chief Financial Officer

Analyst Inquiries

Media Inquiries

 

(212) 692-7200

(312) 640-6745

(312) 640-6667

 

FOR IMMEDIATE RELEASE

THURSDAY OCTOBER 26, 2006

 

LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES

THIRD QUARTER RESULTS

 

New York, NY – October 26, 2006 – Lexington Corporate Properties Trust (NYSE:LXP) (“Lexington”), a real estate investment trust, today announced results for its third quarter ended September 30, 2006.

 

Third Quarter Events

 

 

•

Acquired one property for $14.7 million in a non-consolidated entity;

 

•

Sold one property resulting in an aggregate gain of $1.9 million;

 

•

Entered into five new leases/ extensions on portfolio properties;

 

•

Obtained $35.4 million of non-recourse mortgage financings (including $16.2 million in non-consolidated entities) secured by three properties at a weighted-average fixed interest rate of 6.2%;

 

•

Invested $1.8 million in a mortgage note at a yield of Libor plus 300 bps, through a non-consolidated entity;

 

•

Repurchased 68,404 common shares at an average cost of $19.77 per share; and

 

•

Recorded a $28.2 million aggregate impairment charge related to the Warren, Ohio property.

 

Quarterly Results

 

The Company’s funds from operations were $(0.3) million, or $(0.00) per diluted share/unit, for the third quarter of 2006 after $0.5 million in aggregate debt satisfaction charges including minority interests’ share and $28.2 million in aggregate impairment charges relating to the exercise of a purchase option by Kmart Corporation for the Warren, Ohio property, including minority interests’ share, compared to $30.2 million, or $0.49 per diluted share/unit, after $0.7 million in debt satisfaction charges (recognized in a non- consolidated entity), and $0.2 million in impairment charges, for the third quarter of 2005. The aggregate impact of these items was a decrease of $28.7 million ($0.45 per diluted share/unit) in the third quarter of 2006 and a decrease of $0.9 million ($0.01 per diluted share/unit) in the third quarter of 2005 in reported Company funds from operations.

 

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Rental revenues for the quarter totaled $46.2 million compared to rental revenues of $47.4 million for the same period last year. Net income (loss) allocable to common shareholders was $(21.7) million in the third quarter of 2006, which includes $1.5 million of gains on sales, $21.6 million in impairment charges, and $0.4 million in debt satisfaction charges, compared to $4.9 million, which included $1.6 million of gains on sale and $0.2 million in impairment charges, for the same period last year.

 

Nine Month Results

 

For the nine months ended September 30, 2006, the Company’s funds from operations were $66.5 million, or $1.05 per diluted share/unit, after $5.6 million in aggregate debt satisfaction gains, including minority interests’ share, $33.6 million in aggregate impairment charges and the accelerated amortization of above market leases, including non-consolidated entities, relating to the exercise of a purchase option by Kmart Corporation for the Warren, Ohio property, and two properties formerly leased to Dana Corporation and $6.9 million in gains realized on sale of Dana Corporation bankruptcy claims, including a non-consolidated entity, compared to $87.4 million, or $1.44 per diluted share/unit, after $0.9 million in impairment charges and $3.9 million in debt satisfaction gains, including $0.7 million in debt satisfaction charges recognized by a non-consolidated entity, for the same period last year. The aggregate impact of these items was a decrease of $21.1 million ($0.33 per diluted share/unit) for the nine months ended September 30, 2006 and an increase of $3.0 million ($0.05 per diluted share/unit) for the nine months ended September 30, 2005 in reported Company funds from operations.

Rental revenues for the nine months ended September 30, 2006 totaled $137.1 million, which is net of the accelerated amortization of an above market lease relating to a property formerly leased to Dana Corporation ($2.3 million), compared to rental revenues of $122.5 million for the same period last year. Net income allocable to common shareholders for the nine months ended September 30, 2006 was $1.7 million, which includes $17.5 million of gains on sales, $4.6 million in debt satisfaction gains, net, $6.2 million in gains realized on sale of bankruptcy claims (including non-consolidated entities) and $26.6 million in impairment charges and the accelerated amortization of above market leases, including non-consolidated entities compared to $22.1 million, which includes $0.8 million in impairment charges, $3.3 million in debt satisfaction gains (including non-consolidated entities), net and $6.7 million of gains on sale, for the same period last year.

 

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 November 2, 2006. The toll-free telephone number for the replay is 800-405-2236, passcode 11072657. International callers can access the conference call by dialing 303-262-2130 and the replay by dialing 303-590-3000, passcode 11072657 (same passcode). The conference call can also be accessed on the internet at http://www.lxp.com.

 

Share Repurchase

 

Lexington previously announced its intention to repurchase up to 2 million common shares / operating partnership units from time to time for cash in open market transactions or in privately-negotiated transactions in accordance with applicable federal securities laws. The timing and amount of the

 

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repurchases will be determined by Lexington’s management based on their evaluation of market conditions, share price and other factors. The share repurchase program may be suspended or discontinued at any time. During the quarter ended September 30, 2006, Lexington acquired 68,404 common shares at an average cost of $19.77 per share.

 

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 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") is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington presents FFO because it considers FFO an important supplemental measure of Lexington’s operating performance. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude generally accepted accounting principles (“GAAP”) historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably overtime. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

 

Lexington computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). FFO is defined by NAREIT as "net income (or loss) computed in accordance with 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 does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. FFO should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.

 

Lexington includes in its calculation of FFO, which as included Lexington refers to as the “Company’s funds from operations” or “Company FFO,” Lexington’s operating partnership units and Lexington’s Series C Cumulative Convertible Preferred Shares because these securities are convertible, at the holder’s option, into Lexington’s common shares. Management believes this is appropriate and relevant to securities analysts, investors and other interested parties because it presents Company FFO on a company-wide basis as if all securities that are convertible, at the holder’s option, into Lexington’s common shares, are converted. Since others do not calculate FFO in a similar fashion, Company FFO may not be comparable to similarly titled measures as reported by others.

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)

 

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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

 

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LEXINGTON CORPORATE PROPERTIES TRUST

AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2006 

 

2005 

 

2006 

 

2005 

 

 

 

 

 

 

 

 

 

Gross revenues:

 

 

 

 

 

 

 

 

Rental

$

46,205 

$

47,437 

$

137,080 

$

122,521 

Advisory fees

 

1,127 

 

995 

 

3,527 

 

4,186 

Tenant reimbursements

 

4,302 

 

4,205 

 

12,622 

 

7,194 

Total gross revenues

 

51,634 

 

52,637 

 

153,229 

 

133,901 

 

 

 

 

 

 

 

 

 

Expense applicable to revenues:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(20,054)

 

(19,522)

 

(59,576)

 

(47,271)

Property operating

 

(8,113)

 

(7,705)

 

(23,126)

 

(15,003)

General and administrative

 

(5,394)

 

(4,154)

 

(15,868)

 

(13,153)

Non-operating income

 

963 

 

297 

 

7,669 

 

1,187 

Interest and amortization expense

 

(17,572)

 

(17,963)

 

(52,825)

 

(45,373)

Debt satisfaction (charges) gains, net

 

(510)

 

— 

 

(216)

 

4,632 

Impairment charges

 

— 

 

— 

 

(1,121)

 

— 

 

 

 

 

 

 

 

 

 

Income before benefit (provision) for income taxes, minority interests, equity in earnings of non-consolidated entities and discontinued operations

 

954 

 

3,590 

 

8,166 

 

18,920 

Benefit (provision) for income taxes

 

(178)

 

111 

 

(23)

 

45 

Minority interests

 

(168)

 

(484)

 

(1,231)

 

(2,154)

Equity in earnings of non-consolidated entities

 

1,005 

 

2,328 

 

3,075 

 

5,087 

Income from continuing operations

 

1,613 

 

5,545 

 

9,987 

 

21,898 

 

 

 

 

 

 

 

 

 

Discontinued operations, net of minority interest and taxes:

 

 

 

 

 

 

 

 

Income from discontinued operations

 

919 

 

2,007 

 

3,194 

 

6,745 

Debt satisfaction (charge) gain, net

 

15 

 

— 

 

4,913 

 

(54)

Impairment charges

 

(21,612)

 

(177)

 

(21,612)

 

(800)

Gains on sales of properties

 

1,470 

 

1,595 

 

17,520 

 

6,656 

Total discontinued operations

 

(19,208)

 

3,425 

 

4,015 

 

12,547 

Net income (loss)

 

(17,595)

 

8,970 

 

14,002 

 

34,445 

Dividends attributable to preferred shares – Series B

 

(1,590)

 

(1,590)

 

(4,770)

 

(4,770)

Dividends attributable to preferred shares – Series C

 

(2,519)

 

(2,519)

 

(7,556)

 

(7,556)

Net income (loss) allocable to common shareholders

$

(21,704)

$

4,861 

$

1,676 

$

22,119 

 

 

 

 

 

 

 

 

 

Company’s funds from operations1

$

(313)

$

30,213 

$

66,497 

$

87,354 

Per share/unit:

 

 

 

 

 

 

 

 

Basic net income (loss)

$

(0.42)

$

0.10 

$

0.03 

$

0.45 

Diluted net income (loss)

$

(0.42)

$

0.08 

$

0.03 

$

0.41 

Company’s funds from operations1-basic

$

(0.00)

$

0.49 

$

1.05 

$

1.45 

Company’s funds from operations1 -diluted

$

(0.00)

$

0.49 

$

1.05 

$

1.44 

 

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AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

9/30/06 

 

12/31/05 

 

 

 

 

 

Real estate, at cost

$

1,840,739 

$

1,883,115 

Accumulated depreciation

 

(255,400)

 

(241,188)

Investment in joint ventures

 

181,246 

 

191,146 

Properties held for sale - discontinued operations

 

16,227 

 

49,397 

Intangible assets, net

 

128,932 

 

128,775 

Cash and cash equivalents

 

62,819 

 

53,515 

Deferred expenses, net

 

15,037 

 

13,582 

Rent receivable

 

3,264 

 

7,673 

Rent receivable – deferred

 

27,882 

 

24,778 

Other assets

 

76,135 

 

49,439 

 

$

2,096,881 

$

2,160,232 

 

 

 

 

 

Mortgages and notes payable

$

1,146,371 

$

1,139,971 

Liabilities – discontinued operations

 

8,931 

 

32,145 

Other liabilities

 

38,829 

 

35,434 

Dividends payable

 

23,490 

 

-

Minority interests

 

52,641 

 

61,372 

Shareholders’ equity

 

826,619 

 

891,310 

 

$

2,096,881 

$

2,160,232 

 

 

 

 

 

Common shares

 

53,099,996 

 

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

 

5,619,358 

 

5,720,071 

 

 

 

 

 

 

 

1.

Lexington believes that funds from operations ("FFO") is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington presents FFO because it considers FFO an important supplemental measure of Lexington’s operating performance. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude generally accepted accounting principles (“GAAP”) historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably overtime. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

 

Lexington computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). FFO is defined by NAREIT as "net income (or loss) computed in accordance with 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 does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. FFO should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.

 

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Lexington includes in its calculation of FFO, which as included Lexington refers to as the “Company’s funds from operations” or “Company FFO,” Lexington’s operating partnership units and Lexington’s Series C Cumulative Convertible Preferred Shares because these securities are convertible, at the holder’s option, into Lexington’s common shares. Management believes this is appropriate and relevant to securities analysts, investors and other interested parties because it presents Company FFO on a company-wide basis as if all securities that are convertible, at the holder’s option, into Lexington’s common shares, are converted. Since others do not calculate FFO in a similar fashion, Company FFO may not be comparable to similarly titled measures as reported by others.

 

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AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

AND COMPANY’S FUNDS FROM OPERATIONS PER SHARE

(dollars in thousands, except per share data)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2006 

 

2005 

 

2006 

 

2005 

Earning Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

Income from continuing operations

$

1,613 

$

5,545 

$

9,987 

$

21,898 

Less preferred dividends

 

(4,109)

 

(4,109)

 

(12,326)

 

(12,326)

Income (loss) allocable to common shareholders from continuing operations – basic

 

(2,496)

 

1,436 

 

(2,339)

 

9,572 

Total income (loss) from discontinued operations – basic

 

(19,208)

 

3,425 

 

4,015 

 

12,547 

Net income (loss) allocable to common shareholders – basic

$

(21,704)

$

4,861 

$

1,676 

$

22,119 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

52,279,750 

 

50,837,178 

 

52,081,514 

 

49,269,497 

Per share data:

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$(0.05)

 

$0.03 

 

$(0.05)

 

$0.19 

Income (loss) from discontinued operations

 

(0.37)

 

0.07 

 

0.08 

 

0.26 

Net income (loss) – basic

 

$(0.42)

 

$0.10 

 

$0.03 

 

$0.45 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

Income (loss) allocable to common shareholders from continuing operations-basic

$

(2,496)

$

1,436 

$

(2,339)

$

9,572 

Adjustments:

 

 

 

 

 

 

 

 

Incremental income (loss) attributed to assumed conversion of dilutive securities

 

 

- 

 

 

(48)

 

 

- 

 

 

695 

Income (loss) allocable to common shareholders from continuing operations-diluted

 

(2,496)

 

1,388 

 

(2,339)

 

10,267 

Total income (loss) from discontinued operations - diluted

 

(19,208)

 

3,425 

 

4,015 

 

12,547 

Net income (loss) allocable to common shareholders - diluted

$

(21,704)

$

4,813 

$

1,676 

$

22,814 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in calculation of basic earnings per share

 

52,279,750 

 

50,837,178 

 

52,081,514 

 

49,269,497 

Add incremental shares representing:

 

 

 

 

 

 

 

 

Shares issuable upon exercises of employee share options

 

- 

 

78,046 

 

- 

 

78,382 

Shares issuable upon conversion of dilutive securities

 

- 

 

6,849,435 

 

- 

 

6,849,435 

Weighted average number of shares used in calculation of diluted earnings per common share

 

52,279,750 

 

57,764,659 

 

52,081,514 

 

56,197,314 

Per share data:

 

 

 

 

 

 

 

 

Income (loss) from continuing operations - diluted

$

(0.05)

$

0.02 

$

(0.05)

$

0.18 

Income (loss) from discontinued operations - diluted

 

(0.37)

 

0.06 

 

0.08 

 

0.23 

Net income (loss) - diluted

$

(0.42)

$

0.08 

$

0.03 

$

0.41 

 

MORE

 

 

LEXINGTON CORPORATE PROPERTIES TRUST

ADD 8

 

 

LEXINGTON CORPORATE PROPERTIES TRUST

AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

AND COMPANY’S FUNDS FROM OPERATIONS PER SHARE

(dollars in thousands, except per share data)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2006 

 

2005 

 

2006 

 

2005 

The Company’s Funds From Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

 

 

 

 

 

 

Net income (loss) allocable to common shareholders

$

(21,704)

$

4,861 

$

1,676 

$

22,119 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

20,419 

 

20,467 

 

60,726 

 

50,251 

Minority interests-OP Units

 

(6,031)

 

804 

 

(3,342)

 

3,055 

Amortization of leasing commissions

 

169 

 

143 

 

479 

 

395 

Joint venture adjustment-depreciation

 

5,785 

 

4,754 

 

16,848 

 

12,374 

Preferred dividends-Series C

 

2,519 

 

2,519 

 

7,556 

 

7,556 

Gains on sale of properties

 

(1,470)

 

(1,595)

 

(17,520)

 

(6,656)

Gains on sale of properties – joint venture

 

- 

 

(1,740)

 

- 

 

(1,740)

Taxes incurred on sale of property

 

- 

 

- 

 

74 

 

- 

Company’s funds from operations

$

(313)

$

30,213 

$

66,497 

$

87,354 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

Weighted average shares outstanding-basic EPS

 

52,279,750 

 

50,837,178 

 

52,081,514 

 

49,269,497 

Operating partnership units

 

5,621,824 

 

5,373,592 

 

5,632,598 

 

5,378,078 

Preferred shares – Series C

 

5,779,330 

 

5,779,330 

 

5,779,330 

 

5,779,330 

Weighted average shares outstanding-basic

 

63,680,904 

 

61,990,100 

 

63,493,442 

 

60,426,905 

Company’s funds from operations per share

$

(0.00)

$

0.49 

$

1.05 

$

1.45 

Diluted

 

 

 

 

 

 

 

 

Weighted average shares outstanding-diluted EPS

 

52,279,750 

 

57,764,659 

 

52,081,514 

 

56,197,314 

Operating partnership units

 

5,621,824 

 

5,373,592 

 

5,632,598 

 

5,378,078 

Preferred shares – Series C

 

5,779,330 

 

5,779,330 

 

5,779,330 

 

5,779,330 

Other

 

- 

 

- 

 

23,053 

 

- 

Non-dilutive convertible shares

 

- 

 

(6,849,435)

 

- 

 

(6,849,435)

Weighted average shares outstanding-diluted

 

63,680,904 

 

62,068,146 

 

63,516,495 

 

60,505,287 

Company’s funds from operations per share

 

$(0.00)

 

$0.49 

 

$1.05 

 

$1.44 

 

###

 

 

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Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 ---- ---- ---- ---- Gross revenues: Rental $ 46,205 $ 47,437 $ 137,080 $ 122,521 Advisory fees 1,127 995 3,527 4,186 Tenant reimbursements 4,302 4,205 12,622 7,194 ---------- ---------- ---------- ----------- Total gross revenues 51,634 52,637 153,229 133,901 Expense applicable to revenues: Depreciation and amortization (20,054) (19,522) (59,576) (47,271) Property operating (8,113) (7,705) (23,126) (15,003) General and administrative (5,394) (4,154) (15,868) (13,153) Non-operating income 963 297 7,669 1,187 Interest and amortization expense (17,572) (17,963) (52,825) (45,373) Debt satisfaction (charges) gains, net (510) -- (216) 4,632 Impairment charges -- -- (1,121) -- ---------- ---------- ---------- ----------- Income before benefit (provision) for income taxes, minority interests, equity in earnings of non-consolidated entities and discontinued operations 954 3,590 8,166 18,920 Benefit (provision) for income taxes (178) 111 (23) 45 Minority interests (168) (484) (1,231) (2,154) Equity in earnings of non-consolidated entities 1,005 2,328 3,075 5,087 ---------- ---------- ---------- ------------ Income from continuing operations 1,613 5,545 9,987 21,898 ---------- ---------- ---------- ----------- Discontinued operations, net of minority interest and taxes: Income from discontinued operations 919 2,007 3,194 6,745 Debt satisfaction (charge) gain, net 15 -- 4,913 (54) Impairment charges (21,612) (177) (21,612) (800) Gains on sales of properties 1,470 1,595 17,520 6,656 ---------- ---------- ---------- ----------- Total discontinued operations (19,208) 3,425 4,015 12,547 ---------- ---------- ---------- ----------- Net income (loss) (17,595) 8,970 14,002 34,445 Dividends attributable to preferred shares - Series B (1,590) (1,590) (4,770) (4,770) Dividends attributable to preferred shares - Series C (2,519) (2,519) (7,556) (7,556) ---------- ---------- ---------- ----------- Net income (loss) allocable to common shareholders $ (21,704) $ 4,861 $ 1,676 $ 22,119 =========== =========== =========== =========== Company's funds from operations(1) $ (313) $ 30,213 $ 66,497 $ 87,354 =========== =========== =========== =========== Per share/unit: Basic net income (loss) $ (0.42) $ 0.10 $ 0.03 $ 0.45 Diluted net income (loss) $ (0.42) $ 0.08 $ 0.03 $ 0.41 Company's funds from operations(1)-basic $ (0.00) $ 0.49 $ 1.05 $ 1.45 Company's funds from operations(1)-diluted $ (0.00) $ 0.49 $ 1.05 $ 1.44
1 LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands)
9/30/06 12/31/05 ------- -------- Real estate, at cost $ 1,840,739 $ 1,883,115 Accumulated depreciation (255,400) (241,188) Investment in joint ventures 181,246 191,146 Properties held for sale - discontinued operations 16,227 49,397 Intangible assets, net 128,932 128,775 Cash and cash equivalents 62,819 53,515 Deferred expenses, net 15,037 13,582 Rent receivable 3,264 7,673 Rent receivable - deferred 27,882 24,778 Other assets 76,135 49,439 ----------- ----------- $ 2,096,881 $ 2,160,232 =========== =========== Mortgages and notes payable $ 1,146,371 $ 1,139,971 Liabilities - discontinued operations 8,931 32,145 Other liabilities 38,829 35,434 Dividends payable 23,490 -- Minority interests 52,641 61,372 Shareholders' equity 826,619 891,310 ----------- ----------- $ 2,096,881 $ 2,160,232 =========== =========== Common shares 53,099,996 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 5,619,358 5,720,071
1. Lexington believes that funds from operations ("FFO") is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington presents FFO because it considers FFO an important supplemental measure of Lexington's operating performance. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude generally accepted accounting principles ("GAAP") historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably overtime. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income. Lexington computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). FFO is defined by NAREIT as "net income (or loss) computed in accordance with 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 does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. FFO should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity. Lexington includes in its calculation of FFO, which as included Lexington refers to as the "Company's funds from operations" or "Company FFO," Lexington's operating partnership units and Lexington's Series C Cumulative Convertible Preferred Shares because these securities are convertible, at the holder's option, into Lexington's common shares. Management believes this is appropriate and relevant to securities analysts, investors and other interested parties because it presents Company FFO on a company-wide basis as if all securities that are convertible, at the holder's option, into Lexington's common shares, are converted. Since others do not calculate FFO in a similar fashion, Company FFO may not be comparable to similarly titled measures as reported by others. 2 LEXINGTON CORPORATE PROPERTIES TRUST JOINT VENTURE PROPORTIONATE SHARE COMBINED CONDENSED STATEMENT OF INCOME (dollars in thousands)
Three Months Ended Nine Months Ended September 30, 2006 September 30, 2006 ------------------ ------------------ Gross revenues $ 13,326 $ 37,743 ---------- ---------- Depreciation and amortization (5,558) (16,253) Interest and amortization (4,790) (13,899) Other income and expenses, net (2,279) (5,364) ---------- ---------- Expenses (12,627) (35,516) ---------- ---------- Net income $ 699 $ 2,227 ========== ==========
3 LEXINGTON CORPORATE PROPERTIES TRUST 2006 Third Quarter Transaction Summary ($000's)
Acquisitions Average Current Annual Average Annual Current Property Capitalized GAAP GAAP Cash Cash Lease Tenants/Guarantors Location Type Costs Rent, net Yield Rent, net Yield Term - ------------------ -------- ---- ----- --------- ----- --------- ----- ---- Parkway Chevrolet, Inc. (2) Tomball, TX Specialty $ 14,718 $ 1,488 10.1 % $ 1,227 8.3 % 08-26 ====== ====== ====== ======== ======= Dispositions Property Tenants/Guarantors Location Type Net Sale Price Net Book Value - ------------------ -------- ---- -------------- -------------- Vacant Phoenix, AZ Office $ 2,845 $ 930 ===== ======== New Leases/Lease Extensions Property Previous Extended Rent Per Square Tenants/Guarantors Location Type Term Term Annum Feet - ------------------ -------- ---- ---- ---- ----- ---- Citibank(1) San Francisco, CA Office -- 08-11 $ 105 6,545 Exel Logistics, Inc. (NFC plc) Mechanicsburg, PA Industrial 12-07 12-12 866 252,000 Exel Logistics, Inc. (NFC plc) New Kingston, PA Industrial 11-06 12-06 599 179,200 Exel Logistics, Inc. (NFC plc) New Kingston, PA Industrial 11-06 05-07 1,270 330,000 TFC Services / (Freeman Decorating Dallas, TX Office -- 01-19 1,499 108,565 Co.) New Financings Tenants/Guarantors Location Amount Rate Maturity Date - ------------------ -------- ------ ---- ------------- Avnet, Inc. Phoenix, AZ $ 19,250 6.27% 09-13 Bay Valley Foods, LLC (2) Plymouth, IN 6,675 6.32% 09-16 Corning, Inc. (1) Erwin, NY 9,500 5.91% 10-18 ----- ----- $ 35,425 6.18% ====== ===== Mortgage Investment Borrower Location Interest Rate Invested Amount Maturity - -------- -------- ------------- --------------- -------- JR Boudreaux (2) Tomball, TX Libor + 300bps $ 1,750 08-11 =======
(1) The Company has a 30% interest in this property. (2) The Company has a 32.3% interest in this property. 4
LEXINGTON CORPORATE PROPERTIES TRUST 2006 Second Quarter Transaction Summary ($000's) Acquisitions Average Current Annual Average Annual Current Property Capitalized GAAP GAAP Cash Cash Lease Tenants/Guarantors Location Type Costs Rent, net Yield Rent, net Yield Term - ------------------ -------- ---- ----- --------- ----- --------- ----- ---- Haggar Clothing Corporation (1) Dallas, TX Office $28,340 $2,272 8.0% $2,083 7.4% 04-16 American Golf Corporation (2) Oklahoma Specialty 5,294 475 9.0 475 9.0 12-17 City, OK Montgomery County Management LLC (2) Houston , TX Office 10,010 807 8.1 718 7.2 10-19 Corning, Inc. (1) Erwin, NY Industrial 13,399 1,084 8.1 1,084 8.1 07-16 Bay Valley Foods, LLC (2) Plymouth, IN Industrial 8,984 802 8.9 763 8.5 06-15 ----- ------ --- -------- --- $66,027 $5,440 8.2% $5,123 7.8% ====== ===== ==== ===== ==== Dispositions Property Tenants/Guarantors Location Type Net Sale Price Net Book Value - ------------------ -------- ---- -------------- -------------- Associated Grocers of Florida, Inc. Ocala, FL Industrial $28,972 $18,694 Physical Fitness Center of Philadelphia, Voorhees, NJ Retail 5,950 3,238 Inc. (Bally Total Fitness Corp.) Stone Container Corporation Columbia, SC Industrial 5,628 4,607 Vacant(4) Phoenix, AZ Office 4,284 4,011 Vacant(3) Milpitas, CA Office -- -- ---------- ------ $44,834 $ 30,550 ====== ====== New Leases Property Previous Extended Rent Per Tenants/Guarantors Location Type Term Term Annum Square Feet - ------------------ -------- ---- ---- ---- ----- ----------- FTJ FundChoice, LLC Hebron, KY Office -- 09-12 $ 52 9,164 WM Wright Co. (1) Antioch, TN Industrial -- 03-21 1,016 338,700 New Financings Tenants/Guarantors Location Amount Rate Maturity Date - ------------------ -------- ------ ---- ------------- Montgomery County Management LLC (2) Houston, TX $7,500 6.51% 11/19 Haggar Clothing Corporation (1) Dallas, TX 18,363 6.10% 07/16 Oce Printing Systems USA, Inc. Boca Raton, FL 20,400 6.47% 02/20 ------ ----- $46,263 6.33% ====== ==== Mortgage Investment Borrower Location Face Rate Effective Rate Invested Amount Face Amount - -------- -------- --------- -------------- --------------- ----------- Northwestern Holding Corp. Southfield, MI 4.55% 7.50% $11,151 $13,027 Bankruptcy Claim Receipts Tenants Location Claim Proceeds - ------- -------- -------------- Dana Corporation (1) Antioch, TN $ 5,680 Dana Corporation Farmington Hills, MI 5,376 ----- $11,056
(3) The Company has a 30% interest in this property. (4) The Company has a 32.3% interest in this property. (5) The Company completed a foreclosure with lender resulting in a $6,289 gain. (6) The Company sold a sub-divided portion of the property, remaining parcel under contract for sale. 5 LEXINGTON CORPORATE PROPERTIES TRUST 2006 First Quarter Transaction Summary ($000's)
Acquisitions Average Current Annual Average Annual Current Property Capitalized GAAP GAAP Cash Cash Lease Tenants/Guarantors Location Type Costs Rent, net Yield Rent, net Yield Term - ------------------ -------- ---- ----- --------- ----- --------- ----- ---- AS Watson(1) Renswoude, The Netherlands Office $ 39,291 $ 2,294 5.8% $ 2,851 7.3% 12-11 & 06-18 Dana Corporation(2) Crossville, TN Industrial 4,776 460 9.6 460 9.6 08-16 --------- -------- --- ------- --- $ 44,067 $ 2,754 6.2% $ 3,311 7.5% ========= ======== ==== ======= ===== Dispositions Property Tenants/Guarantors Location Type Net Sale Price Net Book Value - ------------------ -------- ---- -------------- -------------- The Dial Corporation Scottsdale, AZ Office $ 22,563 $ 22,314 Bally Total Fitness Corp. Countryside, IL Retail 5,698 3,293 --------- --------- $ 28,261 $ 25,607 ========== ========= New Leases Property Previous Extended Rent Per Tenants/Guarantors Location Type Term Term Annum Square Feet - ------------------ -------- ---- ---- ---- ----- ----------- The Visiting Nurse Association of Dallas, TX Office -- Jun-16 $ 615 48,027 Texas New Financings Tenants/Guarantors Location Amount Rate Maturity Date - ------------------ -------- ------ ---- ------------- Harbor Freight Tools USA, Inc. Dillon, SC $ 23,750 5.97% Feb-22 (i) Structure, LLC (Infocrossing, Omaha, NE 9,000 5.61 Apr-16 Inc.)(2) (i) Structure, LLC (Infocrossing, Tempe, AZ 8,500 5.61 Apr-16 Inc.)(2) AS Watson(1) Renswoude, The 33,136 5.31 Apr-11 Netherlands -------- ---- $ 74,386 5.59% ======== =====
(1) Lexington has a 90% interest in this property. (2) Lexington has a 32.3% interest in this property. 6 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage ------------------------------------------------------------------------------------------------------- Office ------ 295 Chipeta Way Northwest Pipeline Corp. $ 4,741 $ 4,741 295,000 Salt Lake City, UT 10001 Richmond Avenue Baker Hughes, Inc. 3,998 5,527 554,385 Houston, TX 6303 Barfield Road & 859 Internet Security Systems, 4,718 4,548 289,000 Mount Vernon Hwy. Inc. Atlanta, GA 1701 Market Street Morgan Lewis & Bockius 3,635 3,642 322,317 Philadelphia, PA LLP(1) (3) 3480 Stateview Blvd. Wells Fargo Bank N.A. 2,416 2,587 169,218 Fort Mill, SC 33 Commercial Street Invensys Systems, Inc. 2,480 2,480 164,689 Foxboro, MA (Siebe, Inc.) 3476 Stateview Boulevard Wells Fargo Home 2,162 2,266 169,083 Fort Mill, SC Mortgage, Inc. 9950 Mayland Drive Circuit City Stores, Inc. 2,145 2,094 288,562 Richmond, VA 1415 Wyckoff Road New Jersey Natural Gas Co. 2,193 2,193 157,511 Wall Township, NJ 2750 Monroe Boulevard Quest Diagnostics, Inc. 1,884 1,916 109,281 Valley Forge, PA 700 Oakmont Lane North American Van Lines, Inc. 1,824 1,928 269,715 Westmont, IL (SIRVA, Inc.) 70 Mechanic Street Invensys Systems, Inc. 2,197 1,921 251,914 Foxboro, MA (Siebe, Inc.) 13651 McLearen Road Boeing North American 2,066 1,852 159,664 Herndon, VA Services, Inc. (The Boeing Company) 1311 Broadfield Blvd. Transocean, Inc. 1,713 1,708 103,260 Houston, TX Newpark Resources, Inc. 847 853 52,731 601 & 701 Experian Pkwy. TRW Inc. (Experian 2,762 2,530 292,700 Dallas, TX Information Solutions, Inc.) 2211 South 47th Street Avnet, Inc. 1,654 1,694 176,402 Phoenix, AZ 5600 Broken Sound Blvd Oce Printing Systems USA, Inc. 1,509 1,684 143,290 Boca Raton, FL 4200 RCA Boulevard The Wackenhut Corp. 1,636 1,625 114,518 Palm Beach Gardens, FL 701 Brookfield Parkway Verizon Wireless 1,508 1,550 192,884 Greenville, SC 19019 No. 59th Avenue Honeywell, Inc. 1,502 1,490 252,300 Glendale, AZ
7 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage ------------------------------------------------------------------------------------------------------- 4201 Marsh Lane Carlson Restaurants Worldwide, 1,401 1,482 130,000 Carrollton, TX Inc. 12645 W. Airport Road Baker Hughes, Inc. 1,197 1,454 165,836 Sugar Land, TX 26210 and 26220 Enterprise Apria Healthcare Group, 1,313 1,344 Court Inc. 100,012 Lake Forest, CA 10475 Crosspoint Blvd. John Wiley & Sons, Inc. 1,797 1,797 141,047 Fishers, IN 2210 Enterprise Drive Washington Mutual Home 1,312 1,274 177,747 Florence, SC Loan, Inc. 27404 Drake Road Vacant (4) 971 908 111,454 Farmington Hills, MI 200 Executive Blvd. S Hartford Fire Insurance Co. 1,260 1,218 153,364 Southington, CT 810-820 Gears Road IKON Office Solutions, 1,672 1,688 157,790 Houston, TX Inc. 1600 Eberhardt Road Nextel of Texas 1,130 1,169 108,800 Temple, TX 2999 SW 6th St. Voice Stream PCS I LLC 1,001 1,164 77,484 Redmond, OR (T-Mobile USA, Inc.) 160 Clairemont Avenue Allied Holdings, Inc. 1,258 1,140 112,248 Decatur, GA 27016 Media Center Drive Playboy Enterprises, Inc. 1,004 943 63,049 Los Angeles, CA Sony Electronics, Inc. 197 203 20,203 2800 Waterford Lake Dr. Alstom Power, Inc. 1,348 1,511 99,057 Richmond, VA 26555 Northwestern Highway Federal-Mogul Corporation 869 1,064 187,163 Southfield, MI 10419 North 30th Street Time Customer Service, Inc. 1,111 1,057 132,981 Tampa, FL (Time, Inc.) 250 Rittenhouse Circle Jones Apparel Group 949 1,039 255,019 Bristol, PA USA, Inc. (Jones Apparel Group, Inc.) 8555 South River Pkwy. ASM Lithography Holding 1,598 1,381 95,133 Tempe, AZ NV 400 Butler Farm Road Nextel Communications of 986 977 100,632 Hampton, VA the Mid-Atlantic, Inc. (Nextel Finance Company) 16676 Northchase Dr. Kerr-McGee Corporation 1,167 1,220 101,111 Houston, TX 6200 Northwest Pkwy. PacifiCare Health Systems, 1,230 1,216 142,500 San Antonio, TX Inc.
8 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
--------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage --------------------------------------------------------------------------------------------------------- 5757 Decatur Blvd. Allstate Insurance Co. 935 1,161 84,200 Indianapolis, IN Holladay Property Services 56 56 5,756 4000 Johns Creek Pkwy. Kraft Foods N.A., Inc. 1,004 1,039 73,264 Atlanta, GA PerkinElmer Instruments 158 174 13,955 LLC 6455 State Hwy 303 NE Nextel West Corporation 771 835 60,200 Bremerton, WA 270 Billerica Road Cadence Design Systems 761 799 100,000 Chelmsford, MA 2550 Interstate Dr. AT&T Wireless Services, 1,072 1,087 81,859 Harrisburg, PA Inc. 180 Rittenhouse Circle Jones Apparel Group 713 728 96,000 Bristol, PA USA, Inc. (Jones Apparel Group, Inc.) 2529 West Thorns Drive Baker Hughes, Inc. 487 634 65,500 Houston, TX 12000 Tech Center Drive Kelsey-Hayes Company 587 617 80,230 Livonia, MI 2401 Cherahala Boulevard Advance PCS, Inc. 589 616 59,748 Knoxville, TN 1275 NW 128th Street Principal Life Insurance 599 587 61,180 Clive, IA Company 13430 N. Black Canyon Freeway Bull HN Information Phoenix, AZ Systems, Inc. 588 627 69,492 Associated Billing 50 205 17,767 Services, LLC VACANT -- -- 49,799 12600 Gateway Blvd. Gartner, Inc. 748 789 62,400 Fort Meyers, FL 421 Butler Farm Road Nextel Communications of 553 539 56,515 Hampton, VA the Mid-Atlantic, Inc. (Nextel Finance Company) 3940 South Teller St. Travelers Express, Inc. 818 649 68,165 Lakewood, CO 100 Barnes Road Minnesota Mining and 436 454 44,400 Wallingford, CT Manufacturing Company 1440 East 15th Street Cox Communications, Inc. 349 342 28,591 Tucson, AZ 250 Turnpike Road Honeywell Consumer 344 344 57,698 Southborough, MA Products 11555 University Blvd. Kelsey-Seybold Clinic 836 922 72,683 Sugarland, TX (St. Luke's Episcopal Health System) Nijborg 15 & 17, 3927 DA AS Watson (Health & Beauty 1,982 1,569 122,450 Renswoude, The Netherlands Continental Europe)(2)
9 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
--------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage --------------------------------------------------------------------------------------------------------- 2300 Litton Lane AGC Automotive Americas 153 162 21,542 Hebron, KY Company FTJ FundChoice, LLC -- 13 9,164 VACANT -- -- 49,714 1600 Viceroy Drive The Visiting Nurse 126 319 48,027 Dallas, TX Association of Texas TFC Services -- 19 108,565 (Freeman Decorating Co.) VACANT -- -- 92,860 ------------------------------------------------------------------------- Subtotal $ 89,076 $ 91,364 8,922,778 ------------------------------------------------------------------------- Industrial ---------- 541 Perkins Jones Road Kmart Corp. $ 7,020 $ 6,699 1,462,642 Warren, OH 19500 Bulverde Road Harcourt Brace 2,422 2,572 559,258 San Antonio, TX 2425 Highway 77 North James Hardie Building 2,550 2,550 425,816 Waxahachie, TX Products, Inc. (James Hardie Industries NV) 3501 West Avenue H Michaels Stores, Inc. 2,428 2,478 762,775 Lancaster, CA 9110 Grogans Mill Road Baker Hughes, Inc. 1,885 2,295 275,750 Houston, TX 159 Farley Drive Harbor Freight Tools 2,070 2,279 1,010,859 Dillon, SC USA, Inc. (Central Purchasing, Inc.) 590 Ecology Lane Owens Corning 1,639 1,639 420,597 Chester, SC 6345 Brackbill Boulevard Exel Logistics, Inc. 1,528 1,389 507,000 Mechanicsburg, PA (NFC plc) 3820 Micro Drive Ingram Micro Inc. 1,539 1,716 701,819 Memphis, TN 431 Smith Lane Kirkland's, Inc. 1,079 1,079 771,120 Jackson, TN 750 N. Black Branch Road Dana Corporation 2,129 2,129 539,592 Elizabethtown, KY 6938 Elm Valley Dr. Dana Corporation 1,382 1,382 150,945 Kalamazoo, MI 4425 Purks Road Vacant(5) 786 764 183,717 Auburn Hills, MI
10 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage ------------------------------------------------------------------------------------------------------- 6 Doughten Road Exel Logistics, Inc. 1,115 1,019 330,000 New Kingston, PA (NFC plc) 6500 Adelaide Court Anda Pharmaceuticals, Inc. 918 875 354,676 Groveport, OH (Andrx Corporation) 7500 Chavenelle Road The McGraw-Hill 817 873 330,988 Dubuque, IA Companies, Inc. 12025 Tech Center Drive Kelsey-Hayes Company 808 854 100,000 Livonia, MI 250 Swathmore Avenue Steelcase, Inc. 776 815 244,851 High Point, NC Moody Commuter & Tech Park TNT Logistics North 790 790 595,346 Moody, AL America, Inc. (TPG N.V.) 3102 Queen Palm Drive Time Customer Service, 774 757 229,605 Tampa, FL Inc. (Time, Inc.) 2280 Northeast Drive Ryder Integrated 748 753 276,480 Waterloo, IA Logistics, Inc. (Ryder Systems, Inc.) 245 Salem Church Road Exel Logistics, Inc. 769 703 252,000 Mechanicsburg, PA (NFC plc) 200 Arrowhead Drive Owens Corning 770 739 400,522 Hebron, OH 3600 Southgate Drive Sygma Network, Inc. 700 700 149,500 Danville, IL 46600 Port Street Johnson Controls, Inc. 723 723 134,160 Plymouth, MI 301 Bill Byran Road Dana Corporation 1,108 1,108 424,904 Hopkinsville, KY 450 Stern Street Johnson Controls, Inc. 547 547 111,160 Oberlin, OH 1133 Poplar Creek Road Corporate Express Office 592 607 196,946 Henderson, NC Products, Inc. (Buhrmann, N.V.) 10000 Business Boulevard Dana Corporation 1,009 1,009 336,350 Dry Ridge, KY 7670 Hacks Cross Road Dana Corporation 661 631 268,100 Olive Branch, MS 34 East Main Street Exel Logistics, Inc. 540 492 179,200 New Kingston, PA (NFC plc) 191 Arrowhead Drive Owens Corning (6) 493 478 250,410 Hebron, OH
11 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage ------------------------------------------------------------------------------------------------------- 904 Industrial Road Tenneco Automotive 445 450 195,640 Marshall, MI Operating Company, Inc. (Tenneco Automotive, Inc.) 109 Stevens Street Unisource Worldwide, Inc. 440 441 168,800 Jacksonville, FL 1901 49th Avenue Owens Corning 419 419 18,620 Minneapolis, MN 7150 Exchequer Drive Corporate Express Office 329 329 79,086 Baton Rouge, LA Products, Inc. (Buhrmann, N.V.) 4010 Airpark Drive Dana Corporation 730 730 251,041 Owensboro, KY 324 Industrial Park Road SKF USA, Inc. 296 296 72,868 Franklin, NC 187 Spicer Drive Dana Corporation 266 256 148,000 Gordonsville, TN 730 N. Black Branch Road Dana Corporation 403 403 167,770 Elizabethtown, KY 3350 Miac Cove Road Mimeo.com, Inc. 202 278 107,000 Memphis, TN VACANT -- -- 34,359 300 McCormick Road Ameritech Services, Inc. 95 116 20,000 Columbus, OH 1601 Pratt Avenue Joseph Campbell Company 105 106 58,300 Marshall, MI 477 Distribution Pkwy. Federal Express Corporation 160 236 120,000 Colliersville, TN ---------------------------------------------------------------------------- Subtotal $ 47,005 $ 47,504 14,378,572 ---------------------------------------------------------------------------- Retail ------ 2655 Shasta Way Fred Meyer, Inc. $ 757 $ 757 178,204 Klamath Falls, OR Fort Street Mall, King Liberty House, Inc. 742 729 85,610 Street Honolulu, HI 150 N.E. 20th Street Fred Meyer, Inc. 737 737 118,179 Newport, OR 35400 Cowan Road Sam's Real Estate 565 565 102,826 Westland, MI Business Trust 4733 Hills & Dales Road Scandinavian Health Spa, 559 514 37,214 Canton, OH Inc. (Bally Total Fitness Corp.) 4831 Whipple Avenue, N.W. Best Buy Co., Inc. 349 349 46,350 Canton, OH
12 Lexington Corporate Properties Trust Supplemental Reporting Package Property Holdings 9/30/06
-------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square Property Location Tenant (Guarantor) ($000) ($000) Footage -------------------------------------------------------------------------------------------------------- 3711 Gateway Drive Kohl's Dept. Stores, Inc. 351 347 76,164 Eau Claire, WI 399 Peach Wood Centre Dr. Best Buy Co., Inc. 296 296 45,800 Spartanburg, SC 12535 S.E. 82nd Avenue Toys "R" Us, Inc. 281 252 42,842 Clackamas, OR 24100 Laguna Hills Mall Federated Department 250 262 160,000 Laguna Hills, CA Stores, Inc. 18601 Alderwood Mall Toys "R" Us, Inc. 260 224 43,105 Boulevard Lynwood, WA 6910 S. Memorial Highway Toys "R" Us, Inc. 238 205 43,123 Tulsa, OK 9580 Livingston Road GFS Realty, Inc. 154 205 107,337 Oxon Hill, MD (Giant Food, Inc.) 121 South Center Street Greyhound Lines, Inc. 162 162 17,000 Stockton, CA 2401 Wooton Parkway GFS Realty, Inc. 86 114 51,682 Rockville, MD (Giant Food, Inc.) ---------------------------------------------------------------------------- Subtotal $ 5,787 $ 5,718 1,155,436 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Grand Total $ 141,868 $ 144,586 24,456,786 ----------------------------------------------------------------------------
(1) Company has an 80.5% economic interest in this property. (2) Company has a 90.0% economic interest in this property. (3) Includes 13,268 square feet of retail space of which 2,842 is vacant. (4) Tenant rejected lease in bankruptcy and property was vacant commencing June 30, 2006. GAAP rent does not reflect accelerated amortization of $2,349. (5) Tenant lease expired in July 2006, and the property is currently vacant. (6) Tenant has rejected lease in bankruptcy and property is expected to be vacant soon after September 30, 2006. Tenant is still paying lease rent. 13 Lexington Corporate Properties Trust Supplemental Reporting Package Joint Venture Property Holdings 9/30/06
--------------------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square LXP Property Location Tenant (Guarantor) ($000) ($000) Footage Ownership --------------------------------------------------------------------------------------------------------------------- Office ------ 389-399 Interpace Highway Aventis Pharmaceuticals, $ 6,920 $ 6,525 340,240 33.33% Morris Corporate Center IV (Pharma Holdings GmbH) Parsippany, NJ 17 Technology Circle Blue Cross Blue Shield 5,533 5,198 456,304 40.00% Columbia, SC of South Carolina Inc. 275 South Valencia Ave. Bank of America NT & SA 5,680 6,830 637,503 25.00% Los Angeles, CA 100 Wood Hollow Drive Greenpoint Mortgage 3,451 3,648 124,600 30.00% Novato, CA Funding, Inc. 6555 Sierra Drive True North Communications 3,346 3,187 247,254 33.33% Irving, TX Inc. 101 East Erie Building Foote, Cone & Belding 2,968 2,968 203,376 30.00% Chicago, IL (Interpublic Group of Companies, Inc.) Higgins Development 88 90 19,089 Partners Lexington Corporate Properties Trust 27 28 2,100 5200 Metcalf Avenue Employers Reinsurance 3,057 3,057 320,198 25.00% Overland Park, KS Corporation 27027 Tourney Road Specialty Laboratories, Inc. 2,672 2,672 187,262 30.00% Santa Clarita, CA 8900 Freeport Pkwy. Nissan Motor Acceptance 3,372 3,608 268,445 30.00% Irving, TX Corporation/ (Nissan North America, Inc.) 15375 Memorial Drive Vastar Resources, Inc. 2,585 2,578 327,325 33.33% Houston, TX 10300 Kincaid Drive Bank One Indiana, N.A. 2,536 2,465 193,000 33.33% Fishers, IN 10300 Town Park Drive Veritas DGC, Inc. 2,335 2,436 218,641 30.00% Houston, TX 600 International Parkway First USA Management 2,234 2,191 33.33% 125,155 Lake Mary, FL Services, Inc. 550 International Parkway First USA Management 2,158 2,115 125,920 33.33% Lake Mary, FL Services, Inc. 10940 White Rock Road Progressive Casualty Insurance 2,055 2,103 158,582 30.00% 10929 Disk Drive Company Rancho Cordova, CA 2000 Eastman Drive Structural Dynamic 2,118 2,092 212,836 33.33% Milford, OH Research Corp. 3701 Corporate Drive Motorola, Inc. 2,035 2,035 119,829 33.33% Farmington Hills, MI 2050 Roanoke Road Chrysler Financial Company 2,392 2,655 130,290 30.00% Westlake, TX LLC
14 Lexington Corporate Properties Trust Supplemental Reporting Package Joint Venture Property Holdings 9/30/06
--------------------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square LXP Property Location Tenant (Guarantor) ($000) ($000) Footage Ownership --------------------------------------------------------------------------------------------------------------------- 1401 & 1501 Nolan Ryan Siemens Dematic Postal 1,789 1,900 236,547 25.00% Parkway Automation, L.P. Arlington, TX 9201 East Dry Creek Road The Shaw Group, Inc. 1,554 1,880 128,500 30.00% Centennial, CO 110, 120 & 130 E. Shore Capital One Services, Inc. 2,127 2,167 225,220 30.00% Dr. Richmond, VA 1475 Dunwoody Drive ING USA Annuity and Life 1,547 1,529 125,000 30.00% West Chester, PA Insurance Company 13775 McLearen Road Equant N.V. 1,398 1,520 125,293 30.00% Herndon, VA 70 Valley Stream Parkway IKON Office Solutions, Inc. 1,443 1,496 106,855 30.00% Malvern, PA 5150 220th Avenue Spacelabs Medical, Inc 1,444 1,462 106,944 25.00% Issaquah, WA (OSI Systems, Inc.) 9201 Stateline Employers Reinsurance 1,444 1,444 166,641 25.00% Kansas City, MO Corporation 22011 SE 51st Street Spacelabs Medical, Inc 1,320 1,250 95,600 25.00% Issaquah, WA (OSI Systems, Inc.) 1110 Bayfield Drive Honeywell International, 1,226 1,228 166,575 33.33% Colorado Springs, CO Inc. 3601 Converse Drive Verizon Wireless 1,150 1,218 160,500 25.00% Wilmington, NC 275 Technology Drive ANSYS, Inc. 930 1,015 107,872 30.00% Canonsburg, PA Renner Blvd. Voicestream PCS II 897 1,014 77,484 25.00% Lenexa, KS Corporation (T-Mobile USA, Inc.) East Goldstone Drive Voicestream PCS II 881 990 77,484 25.00% Meridian, ID Corporation (T-Mobile USA, Inc.) 1409 Centerpoint Blvd. Alstom Power, Inc. 1,086 1,226 84,404 32.30% Knoxville, TN 3201 Quail Springs Pkwy. AT& T Wireless Services, Inc. 1,009 1,023 103,500 40.00% Oklahoma City, OK Jordan Associates, Inc. 249 249 25,000 200 Lucent Lane Lucent Technologies, Inc. 1,519 1,232 124,944 30.00% Raleigh, NC 4455 American Way Bell South Mobility, Inc. 775 817 70,100 30.00% Baton Rouge, LA 3711 San Gabriel Voice Stream PCS II LLC 675 738 75,016 30.00% Mission, TX (T-Mobile USA, Inc.)
15 Lexington Corporate Properties Trust Supplemental Reporting Package Joint Venture Property Holdings 9/30/06
--------------------------------------------------------------------------------------------------------------------- YTD Base Cash YTD Revenue Base GAAP Square LXP Property Location Tenant (Guarantor) ($000) Revenue ($000) Footage Ownership --------------------------------------------------------------------------------------------------------------------- 4848 129th East Ave. Metris Companies, Inc. 980 980 101,100 32.30% Tulsa, OK 2310 Village Square AmeriCredit Corporation 1,091 915 85,000 32.30% Pkwy. Jacksonville, FL 4001 International Pkwy. Accor S.A. 2,239 2,423 138,443 25.00% Carrollton, TX (Motel 6 Operating L.P.) 350 Rhode Island Street California Culinary Academy, 1,869 1,796 103,838 30.00% San Francisco, CA LLC (Career Education Corp.) Starbucks Coffee Company 51 55 1,500 (Retail) Citibank -- -- 6,545 VACANT -- -- 13,461 2500 Patrick Henry Pkwy. Georgia Power Company 1,063 1,133 111,911 25.00% McDonough, GA First Park Drive Omnipoint Holdings, Inc. 890 1,024 78,610 25.00% Oakland, ME (T-Mobile USA, Inc.) 11707 Miracle Hills (i) Structure, LLC 875 875 86,800 32.30% Drive (Infocrossing, Omaha, NE Inc.) 2005 East Technology (i) Structure, LLC (Infocrossing, 846 846 60,000 32.30% Circle Inc.) Tempe, AZ 511 Luna Road Haggar Clothing Company 928 1,016 180,507 30.00% Dallas, TX (Texas Clothing Holding Corp.) (Haggar Corporation) 26410 McDonald Road Montgomery County 256 288 41,000 32.30% Houston, TX Management LLC ---------------------------------------------------------------------------- Subtotal Office $ 93,113 $ 95,230 7,816,143 ---------------------------------------------------------------------------- Industrial 101 Michelin Drive TNT Logistics North $ 2,327 $ 2,420 1,164,000 33.33% Laurens, SC America, Inc. (TPG N.V.) Philipp Parkway L'Oreal USA, Inc. 1,718 1,889 649,250 25.00% Streetsboro, OH 7111 Crabb Road TNT Logistics North 1,558 1,621 752,000 33.33% Temperance, MI America, Inc. (TPG N.V.) 6050 Dana Way Vacant(1) 611 535 338,700 30.00% Antioch, TN W.M Wright Company 508 508 338,700 3600 Army Post Rd. EDS Information Services 1,991 2,142 405,000 30.00% LLC Des Moines, IA (Electronic Data Systems Corporation) 2400 West Haven Avenue Michaels Stores Procurement 1,489 1,489 693,185 30.00% New Lenox, IL Company, Inc. (Michaels Stores, Inc.)
16 Lexington Corporate Properties Trust Supplemental Reporting Package Joint Venture Property Holdings 9/30/06
---------------------------------------------------------------------------------------------------------------------------- YTD YTD Base Cash Base GAAP Revenue Revenue Square LXP Property Location Tenant (Guarantor) ($000) ($000) Footage Ownership ---------------------------------------------------------------------------------------------------------------------------- 43955 Plymouth Oaks Tower Automotive Products 1,414 1,414 290,133 30.00% Boulevard Company Plymouth, MI (Tower Automotive, Inc.) 121 Technology Drive Heidelberg Web Systems, 1,672 1,387 500,500 33.33% Durham, NH Inc. 3225 Meridian Parkway Hagemeyer Foods, Inc. 1,112 1,206 201,845 30.00% Weston, FL 291 Park Center Drive Kraft Foods North 1,128 1,136 344,700 33.33% Winchester, VA America, Inc. 1109 Commerce Boulevard Linens-n-Things, Inc. 944 938 262,644 30.00% Logan Township, NJ 3245 Meridian Parkway Circuit City Stores, Inc. 785 877 230,600 30.00% Weston, FL 359 Gateway Drive TI Group Automotive Systems, 900 900 133,221 32.30% Livonia, GA LLC 900 Industrial Boulevard Dana Corporation 334 334 172,800 32.30% Crossville, TN 736 Addison Road Corning, Inc. 371 371 408,000 30.00% Erwin, NY 2935 Van Vactor Way Bay Valley Foods, LLC 197 208 300,500 32.30% Plymouth, IN ---------------------------------------------------------------------------- Subtotal Industrial $ 19,059 $ 19,375 7,185,778 ---------------------------------------------------------------------------- Retail/ Other ------------- 12080 Carmel Mountain Road Kmart Corporation $ 271 $ 735 107,210 30.00% San Diego, CA 5350 Leavitt Road Kmart Corporation 602 547 193,193 30.00% Lorain, OH 255 Northgate Drive Kmart Corporation 425 386 107,489 30.00% Manteca, CA 21082 Pioneer Plaza Drive Kmart Corporation 400 363 120,727 30.00% Watertown, NY 97 Seneca Trail Kmart Corporation 281 232 90,933 30.00% Fairlea, WV 1150 West Carl Sandburg Drive Kmart Corporation 239 217 94,970 30.00% Galesburg, IL 11411 N. Kelly Avenue American Golf Corporation 176 176 13,924 32.30% Oklahoma City, OK 25500 State Hwy 249 Parkway Chevrolet, Inc. 125 152 77,076 32.30% Tomball, TX 77375 ---------------------------------------------------------------------------- Subtotal Retail/ Other $ 2,519 $ 2,808 805,522 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Grand Total $ 114,691 $ 117,413 15,807,443 ----------------------------------------------------------------------------
(1) Original tenant rejected the lease in bankruptcy. GAAP rent does not reflect accelerated amortization of $4,704. 17 Lexington Corporate Properties Trust Supplemental Reporting Package Properties by Location 9/30/06
Historical 9-Month Ended September 30, 2006(1) --------------------------- No. of Number of Percent Square Base Rent Percent of Locations Location Properties(3) Leased(4) Feet(2) ($000's) Base Rent ------------- ------------------ ------------ ------------ ------------ ----------------------------- 1 Texas 26 98.3% 5,398,116 $ 34,439 18.9% 2 South Carolina 10 100.0 3,806,492 14,990 8.2 3 Pennsylvania 12 99.9 2,472,403 13,227 7.3 4 Ohio 11 100.0 3,738,253 11,651 6.4 5 California 13 99.5 2,571,029 10,518 5.8 6 Florida 12 100.0 1,620,114 9,306 5.1 7 Michigan 13 88.0 2,466,397 9,076 5.0 8 Virginia 8 100.0 1,399,643 8,458 4.6 9 Georgia 5 100.0 733,599 7,475 4.1 10 Arizona 8 93.4 749,484 6,480 3.6 11 Kentucky 6 97.2 1,800,077 5,554 3.1 12 Massachusetts 4 100.0 574,301 5,544 3.0 13 Tennessee 9 87.0 2,876,650 4,997 2.8 14 New Jersey 4 100.0 760,395 4,807 2.7 15 Utah 1 100.0 295,000 4,741 2.6 16 Illinois 6 100.0 1,431,935 4,165 2.3 17 Indiana 4 100.0 724,503 3,903 2.1 18 Oregon 4 100.0 416,709 2,910 1.6 19 Iowa 4 100.0 1,073,648 2,856 1.6 20 North Carolina 5 100.0 800,109 2,392 1.3 21 Washington 4 100.0 305,849 1,737 1.0 22 Connecticut 2 100.0 197,764 1,672 0.9 23 Colorado 3 100.0 363,240 1,622 0.9 24 The Netherlands 1 100.0 122,450 1,569 0.9 25 Oklahoma 4 100.0 286,647 1,087 0.6 26 Kansas 2 100.0 397,682 1,018 0.6 27 Alabama 1 100.0 595,346 790 0.4 28 Hawaii 1 100.0 85,610 729 0.4 29 Mississippi 1 100.0 268,100 631 0.3 30 Louisiana 2 100.0 149,186 574 0.3 31 New Hampshire 1 100.0 500,500 462 0.3 32 Minnesota 1 100.0 18,620 419 0.2 33 Missouri 1 100.0 166,641 361 0.2 34 Wisconsin 1 100.0 76,164 347 0.2 35 Maryland 2 100.0 159,019 319 0.2 36 Nebraska 1 100.0 86,800 283 0.2 37 Maine 1 100.0 78,610 256 0.1 38 Idaho 1 100.0 77,484 248 0.1 39 New York 2 100.0 528,727 220 0.1 40 West Virginia 1 100.0 90,933 70 -- --------------------------------------------------------------------------------------- Total 198 97.8% 40,264,229 $ 181,903 100.00% ---------------------------------------------------------------------------------------
(1) Includes proportionate share of joint venture investments and rental revenue recognized from properties sold through date of sale. (2) Includes properties owned as of September 30, 2006. (3) Includes properties owned during the nine months ended September 30, 2006. (4) As of September 30, 2006. 18 Lexington Corporate Properties Trust Supplemental Reporting Package Lease Rollover Schedule by Property Type - Cash Basis 9/30/06
Office Industrial Retail/ Other - ------------------------------------------------------------------------------------------------------------------------------------ Square Cash Rental Net Rent Square Cash Rental Net Rent Square Cash Rental Net Rent Year Footage Revenue(1) PSF Footage Revenue(1) PSF Footage Revenue(1) PSF - ------------------------------------------------------------------------------------------------------------------------------------ 2006 270,700 $ 2,386 $ 8.82 608,237 $ 3,610 $ 5.93 -- $ -- $ -- 2007 186,504 1,995 13.96 1,998,942 11,127 5.57 -- -- -- 2008 444,270 6,240 14.49 -- -- -- 215,418 1,788 8.30 2009 1,837,317 17,142 15.78 831,966 2,015 3.40 205,436 1,943 9.46 2010 2,135,992 17,670 13.91 675,655 2,436 3.61 -- -- -- 2011 1,002,689 9,943 19.82 1,046,519 536 4.67 247,249 1,659 6.71 2012 1,869,411 17,840 12.39 4,203,134 9,541 4.29 -- -- -- 2013 1,659,473 20,509 15.44 79,086 483 6.11 -- -- -- 2014 1,864,411 17,547 15.36 965,160 3,522 3.65 267,337 496 1.85 2015 2,267,937 20,814 13.92 764,370 4,504 6.64 76,164 469 6.15 2016 738, 176 6,460 15.95 1,408,158 5,091 4.38 -- -- -- 2017 128,500 694 17.99 806,439 2,754 4.32 51,682 115 2.23 2018 556,288 5,504 15.85 -- -- -- 806,672 1,175 2.37 2019 652,496 5,197 17.91 2,183,145 5,519 3.50 -- -- -- 2020 294,583 4,238 18.36 666,037 4,184 7.51 -- -- -- 2021 157,511 4,234 26.88 1,620,504 6,106 4.21 -- -- -- 2022 -- -- -- -- -- -- -- -- -- 2023 -- -- -- -- -- -- -- -- -- 2024 187,262 1,069 19.02 693,185 568 2.73 -- -- -- 2025 146,800 734 15.63 2,140,254 9,802 3.20 -- -- -- 2026 -- -- -- 500,500 427 2.56 77,076 577 23.16 Weighted Average $ 15.44 $ 4.40 $ 5.22 ======= ======== =======
(1) Includes proportionate share of joint venture investments and its net of estimated expenses. 19 Lexington Corporate Properties Trust Supplemental Reporting Package Lease Rollover Schedule - GAAP Basis 9/30/06 ($000's)
Percentage of Total Total Number of Annualized Base Annualized Year Leases Expiring Rent (1) Base Rent - ----------------------------------------------------------------------------------------------------------- 2006 - remaining 5 $ 3,692 1.5% 2007 7 12,593 5.3 2008 7 7,509 3.1 2009 17 22,449 9.4 2010 18 18,648 7.8 2011 16 15,889 6.6 2012 23 25,946 10.8 2013 14 21,071 8.8 2014 19 22,485 9.4 2015 20 27,748 11.6 2016 13 11,149 4.7 2017 6 3,668 1.5 2018 11 7,404 3.1 2019 10 10,440 4.4 2020 6 7,974 3.3 2021 5 8,087 3.4 2022 -- -- -- 2023 -- -- -- 2024 2 1,665 0.7 2025 8 9,894 4.1 2026 2 1,098 0.5 --------------------------------------------------------------------------------- Total 209 $ 239,409 100.0% =================================================================================
(1) Includes proportionate share of joint venture investments. 20 Lexington Corporate Properties Trust Supplemental Reporting Package Mortgages and Notes Payable 9/30/06 ($000's)
- ----------------------------------------------------------------------------------------------------------------------- Current Estimated Debt Interest Annual Balloon Property - Fixed Rate Balance Rate Maturity Debt Service(d) Payment - ----------------------------------------------------------------------------------------------------------------------- Warren, OH(a)(b) $ 8,629 7.000% Oct-07 $ 6,160 $ -- Bristol, PA 9,423 7.400 Feb-08 831 9,262 Decatur, GA 6,307 6.720 Jun-08 579 6,049 Palm Beach Gardens, FL 10,812 7.010 Jun-08 970 10,418 Canton, OH 3,108 7.150 Aug-08 313 2,936 Spartanburg, SC 2,581 7.150 Aug-08 260 2,438 Florence, SC 8,927 7.500 Feb-09 869 8,443 Canton, OH 834 9.490 Feb-09 388 -- Baton Rouge, LA 1,691 7.375 Mar-09 208 1,478 Livonia, MI 10,649 7.800 Apr-09 992 10,236 Bristol, PA 5,652 7.250 Apr-09 571 5,228 Henderson, NC 4,145 7.390 May-09 417 3,854 Westland, MI 1,751 10.500 Sep-09 683 -- Salt Lake City, UT 7,716 7.610 Oct-09 2,901 -- High Point, NC 8,426 5.750 Oct-09 695 7,741 Richmond, VA 16,004 8.100 Feb-10 1,511 15,257 Hampton, VA 7,093 8.270 Apr-10 677 6,758 Hampton, VA 4,350 8.260 Apr-10 415 4,144 Tampa, FL 8,079 6.930 Aug-10 674 7,603 Tampa, FL 5,842 6.880 Aug-10 485 5,495 Herndon, VA 18,310 8.180 Dec-10 1,723 17,301 Tucson, AZ 2,318 7.500 Jan-11 226 2,076 Valley Forge, PA 12,370 7.120 Feb-11 1,166 10,927 Renswoude, NA(f) 34,353 5.305 Apr-11 2,514 30,994 Glendale, AZ 14,322 7.400 Apr-11 1,258 13,365 Dallas, TX 30,582 5.126 May-11 1,589 30,582 Farmington Hills, MI 20,437 5.126 May-11 1,343 19,020 Wallingford, CT 3,433 4.926 May-11 221 3,187 Auburn Hills, MI 6,798 7.010 Jun-11 637 5,918 Plymouth, MI 4,527 7.960 Jul-11 463 3,949 Newport, OR 6,676 5.030 Aug-11 470 5,980 Greenville, SC 13,245 4.415 Jan-12 841 11,806 New Kingston, PA 6,949 7.790 Jan-12 678 6,101 Mechanicsburg, PA 5,130 7.780 Jan-12 500 4,503 New Kingston, PA 3,314 7.780 Jan-12 323 2,906 Lake Forest, CA 10,517 7.260 Feb-12 901 9,708 Memphis, TN 17,732 5.247 May-12 1,181 16,222 Lakewood, CO 8,646 5.097 May-12 566 7,890 Groveport, OH 7,578 6.030 Oct-12 563 6,860 San Antonio, TX 29,259 6.080 Oct-12 2,260 26,025 Foxboro, MA(b) 16,003 6.000 Jan-13 2,817 -- Fort Mill, SC 11,113 6.000 Jan-13 839 9,904 Waterloo, IA 5,982 5.610 Feb-13 672 3,505 Atlanta, GA 44,997 5.268 May-13 3,004 40,356 Houston, TX 17,564 5.218 May-13 1,166 15,737 Southington, CT 13,703 5.018 May-13 890 12,228 Tempe, AZ 13,573 5.148 May-13 894 12,144 Indianapolis, IN 9,586 5.168 May-13 633 8,580 Fort Meyers, FL 8,912 5.268 May-13 476 8,550 Chelmsford, MA 6,969 5.118 May-13 458 6,231 Lancaster, CA (first) 10,174 7.020 Sep-13 900 8,637 Lancaster, CA (second) 8,583 5.920 Sep-13 642 7,518 Knoxville, TN 5,111 5.950 Sep-13 381 4,496 Phoenix, AZ 19,223 6.270 Sep-13 1,527 16,490
21 Lexington Corporate Properties Trust Supplemental Reporting Package Mortgages and Notes Payable 9/30/06 ($000's)
- ----------------------------------------------------------------------------------------------------------------------- Current Estimated Debt Interest Annual Balloon Property - Fixed Rate Balance Rate Maturity Debt Service(d) Payment - ----------------------------------------------------------------------------------------------------------------------- Foxboro, MA(b) 20,452 6.000 Jan-14 3,270 -- Moody, AL 7,395 4.978 Jan-14 493 6,350 Mechanicsburg, PA 13,199 5.730 Mar-14 1,045 10,538 Redmond, OR 9,786 5.616 Apr-14 697 8,484 Clive, IA 5,888 5.139 May-14 387 5,151 Fort Mill, SC 20,300 5.373 May-14 1,106 18,311 Philadelphia, PA(e) 49,000 5.060 Jul-14 2,617 43,547 Jackson, TN 10,119 5.930 Jul-14 743 8,820 Eau Claire, WI 1,804 8.000 Jul-14 313 -- Carrollton, TX 14,190 5.530 Jan-15 993 12,022 Franklin, NC 1,634 8.500 Mar-15 271 -- Kalamazoo, MI 17,534 5.411 May-15 1,189 15,087 Houston, TX 16,884 5.160 May-15 1,114 14,408 Houston, TX 13,183 5.210 May-15 874 11,265 Fishers, IN 13,110 5.160 May-15 865 11,188 San Antonio, TX 13,003 5.340 May-15 875 11,149 Los Angeles, CA 11,437 5.110 May-15 750 9,760 Atlanta, GA 11,325 5.260 May-15 604 10,502 Richmond, VA 10,552 5.310 May-15 708 9,055 Harrisburg, PA 9,129 5.110 May-15 599 7,780 Elizabethtown, KY(g) 16,401 4.990 Jul-15 1,073 13,801 Hopkinsville, KY(g) 9,608 4.990 Jul-15 628 8,085 Dry Ridge, KY(g) 7,769 4.990 Jul-15 508 6,537 Owensboro, KY(g) 6,922 4.990 Jul-15 453 5,825 Elizabethtown, KY(g) 3,114 4.990 Jul-15 204 2,620 Southborough, MA 1,794 7.500 Sep-15 275 -- Houston, TX(b) 64,380 6.250 Sep-15 8,147 18,318 Houston, TX(b) 25,987 6.250 Sep-15 3,101 6,985 Sugar Land, TX(b) 16,869 6.250 Sep-15 2,237 6,286 Houston, TX(b) 7,382 6.250 Sep-15 891 2,222 Temple, TX 8,911 6.090 Jan-16 668 7,446 Danville, IL 6,323 9.000 Jan-16 692 4,578 Bremerton, WA 6,587 6.090 Apr-16 494 5,465 Dubuque, IA 10,781 5.402 Jun-17 733 8,725 Westmont, IL 15,310 6.210 Mar-18 1,292 9,662 Boca Raton, FL 20,400 6.470 Feb-20 1,338 18,383 Houston, TX 9,913 5.640 Dec-20 692 7,018 Wall Township, NJ(b) 29,596 6.250 Jan-21 2,013 -- Dillon, SC 23,478 5.974 Feb-22 1,832 13,269 Chester, SC 13,543 5.380 Aug-25 1,144 362 ---------- ----- -------- -------- $ 1,155,000 5.967% $ 103,249 $ 856,040 ---------- ----- -------- -------- Corporate Credit Facility (C) $ -- -- June-08 $ -- $ -- ----------- ----- ---------- -------- Total $ 1,155,000 5.967% $ 103,249 $ 856,040 ========== ====== ========= ========
22 Lexington Corporate Properties Trust Supplemental Reporting Package Mortgages Payable 9/30/06 (000's) (a) Included in discontinued operations. (b) Debt balances based upon imputed interest rates. (c) Floating rate debt 30/60/90 day LIBOR plus 120 to 170 bps. (d) Remaining payments for debt with less than 12 months to maturity. (e) The Company has an 80.5% interest in the property securing the mortgage. (f) The Company has a 90.0% interest in the property securing the mortgage. (g) Debt balances are net of mortgage investment made by the Company. 23
Lexington Corporate Properties Trust Supplemental Reporting Package Mortgages Payable 9/30/06 (000's) - ---------------------------------------------------------------------------------------------------------------------------------- Current LXP Estimated Debt Proportionate Interest Annual Balloon Joint Venture Property Balance Share Rate Maturity Debt Service Payment - ---------------------------------------------------------------------------------------------------------------------------------- Santa Clarita, CA $ 28,200 $ 8,460 4.750 Oct-09 $ 1,340 $ 28,200 Columbia, SC 23,614 9,446 7.850 Oct-09 2,196 22,586 Houston, TX 19,968 6,649 7.580 Oct-09 2,032 18,229 Fishers, IN 14,260 4,749 8.190 Apr-10 1,499 12,960 Lorain, OH(1) 2,740 822 6.000 Jul-10 903 -- Manteca, CA(1) 1,936 581 6.000 Jul-10 638 -- Watertown, NY(1) 1,820 546 6.000 Jul-10 600 -- Fairlea, WV(1) 1,279 384 6.000 Jul-10 421 -- San Diego, CA(1) 1,234 370 6.000 Jul-10 406 -- Galesburg, IL(1) 1,086 326 6.000 Jul-10 358 -- Irving, TX 25,811 8,595 8.160 Oct-10 2,432 24,454 Lake Mary, FL 12,843 4,277 7.880 Oct-10 1,181 12,118 Lake Mary, FL 12,791 4,259 7.880 Oct-10 1,178 12,082 Parsippany, NJ 39,707 13,222 7.350 Mar-11 3,472 37,047 Novato, CA 22,002 6,601 5.750 Jul-11 1,600 20,307 Winchester, VA 10,449 3,480 7.330 Aug-11 908 9,675 Milford, OH 15,997 5,327 8.170 Feb-12 1,783 12,686 Des Moines, IA 22,761 6,828 5.147 May-12 1,188 22,153 Fort Worth, TX 19,537 5,861 5.097 May-12 1,280 17,823 Raleigh, NC 12,900 3,870 4.947 May-12 647 12,543 Farmington Hills, MI 20,340 6,779 5.420 Sep-12 1,500 17,724 Laurens, SC 16,677 5,558 6.000 Sep-12 1,396 14,022 Temperance, MI 11,179 3,726 6.000 Sep-12 936 9,400 Baton Rouge, LA 6,716 2,015 4.900 Oct-12 443 5,943 Plymouth, MI 12,084 3,625 6.220 Dec-12 1,026 10,026 Colorado Springs, CO 11,470 3,823 6.250 Dec-12 887 10,272 Centennial, CO 15,353 4,606 6.150 Feb-13 1,177 13,555 Los Angeles, CA 80,182 20,046 5.330 May-13 4,660 73,071 Dallas, TX 40,700 12,210 5.218 May-13 2,702 36,453 Malvern, PA 12,912 3,874 5.530 Jan-14 916 11,236 Arlington, TX 21,291 5,323 5.810 Feb-14 1,551 18,588 New Lenox, IL 17,400 5,220 5.510 Feb-14 972 17,400 Logan Township, NJ 7,690 2,307 4.760 Apr-14 416 6,784 Rancho Cordova, CA(1) 18,285 5,486 6.000 Sept-14 1,457 14,646 Weston, FL 10,597 3,179 5.420 Nov-14 733 9,066 Issaquah, WA 32,800 8,200 5.001 Dec-14 1,663 30,388 Canonsburg, PA 9,095 2,729 5.377 Dec-14 489 9,095 Chicago, IL 29,900 8,970 5.105 Jan-15 1,548 29,900 Herndon, VA 12,113 3,634 5.920 Apr-15 888 10,359 Richmond, VA 19,800 5,940 5.110 May-15 1,026 18,321 Oklahoma City, OK 14,749 5,900 5.240 May-15 784 13,673 Knoxville, TN 7,759 2,506 5.310 May-15 520 6,658 Tulsa, OK 7,645 2,469 5.060 May-15 499 6,517 Jacksonville, FL 5,779 1,867 5.110 May-15 379 4,927 McDonough, GA 12,675 3,169 5.212 Jun-15 670 11,349 Mission, TX 6,366 1,910 5.780 Jun-15 462 5,371 Carrollton, TX 20,800 5,200 5.274 Jul-15 1,112 18,677 Houston, TX 23,910 7,173 5.410 Oct-15 1,311 21,846 Omaha, NE 8,946 2,890 5.610 Apr-16 621 7,560 Tempe, AZ 8,449 2,729 5.610 Apr-16 586 7,140 Dallas, TX 18,363 5,509 6.100 Jul-16 1,136 18,363 Plymouth, IN 6,669 2,154 6.315 Sept-16 497 5,723 Wilmington, NC 13,000 3,250 5.190 Mar-17 684 11,580 Weston, FL 7,321 2,196 5.520 Nov-17 512 5,758 Lorain, OH(1) 1,460 438 6.000 Jul-18 108 -- Manteca, CA(1) 1,031 309 6.000 Jul-18 77 -- Watertown, NY(1) 970 291 6.000 Jul-18 72 -- Fairlea, WV(1) 681 204 6.000 Jul-18 51 -- San Diego, CA(1) 657 197 6.000 Jul-18 49 -- Galesburg, IL(1) 579 174 6.000 Jul-18 43 -- Erwin, NY 9,500 2,850 5.910 Oct-18 728 6,624 Overland Park, KS 37,620 9,405 5.830 May-19 2,224 31,819
24
Lexington Corporate Properties Trust Supplemental Reporting Package Mortgages Payable 9/30/06 (000's) - ---------------------------------------------------------------------------------------------------------------------------------- Current LXP Estimated Debt Proportionate Interest Annual Balloon Joint Venture Property Balance Share Rate Maturity Debt Service Payment - ---------------------------------------------------------------------------------------------------------------------------------- Kansas City, MO 17,950 4,488 5.830 May-19 1,061 15,182 West Chester, PA 10,279 3,084 6.750 Jul-19 1,204 -- Meridian, ID 10,192 2,548 6.010 Aug-19 753 7,658 Streetsboro, OH 20,200 5,050 5.285 Sept-19 1,082 16,338 Houston, TX 7,500 2,423 6.507 Nov-19 495 6,692 San Francisco, CA 22,080 6,624 5.580 Nov-19 1,249 18,002 Lenexa, KS 10,258 2,565 6.270 Dec-19 774 7,755 Oakland, ME 10,378 2,595 5.930 Oct-20 750 7,660 Livonia, GA 9,945 3,212 5.460 Dec-20 741 5,895 Durham, NH 19,182 6,393 6.730 Mar-21 1,309 -- Antioch, TN 13,967 4,190 7.940 Oct-21 1,580 774 -------- --------- ---------- --------- --------- $ 1,064,379 $ 317,865 5.941% $ 76,571 $ 898,653 ========= ========= =========== ========= =========
1. Debt balances based upon imputed rates. 25 Lexington Corporate Properties Trust Supplemental Reporting Package Debt Maturity Schedule 9/30/06 ($000's)
Consolidated properties - ------------------------------------------------------------------------------------------------------------ Scheduled Balloon Balloon Weighted Amortization Payments Average Interest Rate ------------ -------- --------------------- 2006 - remaining $ 6,252 $ -- --% 2007 35,025 -- -- 2008 30,116 31,103 7.09 2009 31,973 36,980 7.16 2010 30,827 56,558 7.88 ------- -------- ----------- $134,193 $ 124,641 7.47% ======= ======== =========== Joint venture properties - LXP proportionate share - ------------------------------------------------------------------------------------------------------------ Scheduled Balloon Balloon Weighted Amortization Payments Average Interest Rate ------------ -------- --------------------- 2006 - remaining $ 714 $ -- -- 2007 4,153 -- -- 2008 4,572 -- -- 2009 5,254 23,570 6.67% 2010 5,193 20,538 8.06 --------- --------- ----------- $ 19,886 $ 44,108 7.31% ========= ========= ===========
26 Lexington Corporate Properties Trust Supplemental Reporting Package Revenue By Tenant Industry 9/30/06 - -------------------------------------------------------------------------------- Percentage of Historical Tenant Industry Base Rent (1) - -------------------------------------------------------------------------------- Energy 13.4% Finance/Insurance 12.7 Technology 10.9 Automotive 9.3 Healthcare 5.6 Telecommunications 5.6 Transportation/Logistics 5.4 Retail-Department/ Discount Store 5.1 Consumer Products 4.8 Media/Advertising 4.2 Food 3.7 Construction Materials 3.7 Printing/Production 3.6 Retail-Specialty 2.8 Aerospace/Defense 2.2 Service 2.2 Retail-Electronics 1.6 Apparel 1.1 Security 0.9 Health/Fitness 0.4 Real Estate 0.4 Paper/Containers & Packaging 0.4 ----- 100.0% ====== (1) Includes proportionate share of joint venture investments and rental revenue recognized from properties sold through date of sale for the nine months ended September 30, 2006. 27 Lexington Corporate Properties Trust Supplemental Reporting Package Revenue by MSA 9/30/06 Percent of Base Rent for the 9 Months Ended 9/30/06 - -------------------------------------------------------------------------------- 1 Houston-TX 9.9% 2 Dallas-Fort Worth-TX 6.2% 3 Philadelphia-Wilmington-PA 4.8% 4 Los Angeles-Riverside-Orange County-CA 4.3% 5 Atlanta-GA 3.9% 6 Detroit-MI 3.9% 7 Youngstown-Warren-OH 3.7% 8 Phoenix-Mesa-AZ 3.4% 9 Boston-MA 3.3% 10 Charlotte-NC 2.7% 11 Salt Lake City-UT 2.6% 12 Harrisburg-PA 2.6% 13 New York-Northern New Jersey 2.4% 14 Richmond-VA 2.3% 15 Indianapolis-IN 2.1% 16 San Antonio-TX 2.1% 17 Chicago-IL 1.9% 18 West Palm Beach-Boca Raton-FL 1.8% 19 Memphis-TN 1.6% 20 Washington-Baltimore-DC-MD 1.4% 21 Elizabethtown, KY 1.4% 22 Columbia-SC 1.3% 23 Dillon-SC 1.3% 24 Columbus-OH 1.2% 25 Kalamazoo-Battle Creek-MI 1.1% 26 Cincinnati-OH 1.0% 27 Greenville-Spartanburg-SC 1.0% 28 Tampa-St. Petersburg-FL 1.0% 29 Seattle-WA 1.0% 30 San Francisco-CA 0.9% 31 Chester-SC 0.9% 32 Renswoude, Netherland 0.9% 33 Norfolk-Virginia Beach-Newport News-VA 0.8% 34 Orlando-FL 0.8% 35 Kansas City-MO-KS 0.8% 36 Florence-SC 0.7% 37 Des Moines-IA 0.7% 38 Hartford-CT 0.7% 39 Denver-CO 0.7% 40 Cleveland-OH 0.7% 41 Killeen-Temple-TX 0.6% 42 Redmond-OR 0.6% 43 Clarksville-TN 0.6% 44 Jackson-TN 0.6% 45 Knoxville-TN 0.6% 46 Dubuque-IA 0.5% 47 Canton-OH 0.5% 28 Lexington Corporate Properties Trust Supplemental Reporting Package Revenue by MSA 9/30/06 Percent of Base Rent for the 9 Months Ended 9/30/06 - -------------------------------------------------------------------------------- 48 Greensboro-Winston-Salem-NC 0.4% 49 Laurens-SC 0.4% 50 Birmingham-AL 0.4% 51 Fort Meyers-FL 0.4% 52 Klamath Falls-OR 0.4% 53 Waterloo-Cedar Falls-IA 0.4% 54 Newport-OR 0.4% 55 Jacksonville-FL 0.4% 56 Owensboro-KY 0.4% 57 Honolulu-HI 0.4% 58 Danville-IL 0.4% 59 Sacramento-CA 0.3% 60 Miami-Fort Lauderdale-FL 0.3% 61 Henderson-NC 0.3% 62 Ocala-FL 0.3% 63 Baton Rouge-LA 0.3% 64 Oklahoma, OK 0.3% 65 Tulsa-OK 0.3% 66 New Haven-CT 0.2% 67 Minneapolis-St. Paul-MN 0.2% 68 Colorado Springs-CO 0.2% 69 Winchester-VA 0.2% 70 Raleigh-Durham-Chapel Hill-NC 0.2% 71 Eau Claire-WI 0.2% 72 Tucson-AZ 0.2% 73 Nashville-TN 0.2% 74 Wilmington-NC 0.2% 75 Pittsburgh-PA 0.2% 76 Franklin-NC 0.2% 77 Lavonia-GA 0.2% 78 Omaha-NE-IA 0.2% 79 Stockton-Lodi-CA 0.2% 80 Oakland-ME 0.1% 81 Gordonsville, TN 0.1% 82 Clackamas-OR 0.1% 83 Boise City, ID 0.1% 84 McAllen-Edinburg-Mission-TX 0.1% 85 San Diego-CA 0.1% 86 Erwin, NY 0.1% 87 Watertown-NY 0.1% 88 Crossville, TN 0.1% 89 Lewisburg-WV - 90 Plymouth, IN - 91 Galesburg-IL - - -------------------------------------------------------------------------------- Totals 100.00% - -------------------------------------------------------------------------------- 29 Lexington Corporate Properties Trust Supplemental Reporting Package Other Revenue Data 9/30/06 Revenue by Property Type Percentage - ---------------------------------------------------------- Office 66.3% Industrial 29.8 Retail 3.9 ------ 100.0% ====== Revenue by Credit Rating(B) Investment Grade 39.3% Non-Investment Grade 25.8 Unrated 34.9 ---- 100.0% ======
Percentage of Base Rent for the Number of 9 Months Ended Top 15 Tenants/Guarantors Properties(B) Property Type 9/30/06(A) - ------------------------------------------------------------------------------------------------------------------------------ Baker Hughes, Inc. 4 Office (3)/Industrial (1) 5.4% Dana Corporation 9 Industrial 4.9 Kmart Corporation 7 Industrial(1)/Retail (6) 4.1 Wells Fargo Home Mortgage, Inc. 2 Office 2.7 Northwest Pipeline Corp. 1 Office 2.6 Internet Security Systems, Inc. 1 Office 2.5 Invensys Systems, Inc. (Siebe, Inc.) 2 Office 2.4 Exel Logistics, Inc.(NFC plc) 4 Industrial 2.0 Nextel Finance Company 4 Office 1.9 Morgan, Lewis & Bockius LLP 1 Office 1.8 Owens Corning 4 Industrial 1.8 Michaels Stores, Inc. 2 Industrial 1.6 Harcourt Brace 1 Industrial 1.4 James Hardie Building Products, Inc. 1 Industrial 1.4 (James Hardie Industries N.V.) TRW, Inc. (Experian Information Solutions, Inc.) 1 Office 1.4 - --- 44 37.9% == ====
(A) Includes proportionate share of joint venture investments and rental revenue recognized from properties sold through the date of sale. (B) As of September 30, 2006. 30 EX-99 6 ex99-3.htm EX.99.3: CONFERENCE CALL TRANSCRIPT

Exhibit 99.3

 

FINAL TRANSCRIPT

 

                                    

 

Conference Call Transcript

 

LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

Event Date/Time: Oct. 26. 2006 / 2:00PM ET

 

 

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

CORPORATE PARTICIPANTS

Claire Koeneman

Lexington Corporate Properties Trust - Financial Relations Board

Wil Eglin

Lexington Corporate Properties Trust - CEO

Pat Carroll

Lexington Corporate Properties Trust - CFO

John Vander Zwaag

Lexington Corporate Properties Trust - EVP

 

CONFERENCE CALL PARTICIPANTS

John Guinee

Stifel Nicolaus - Analyst

Anthony Paolone

JP Morgan - Analyst

Philip Martin

Cantor Fitzgerald - Analyst

 

PRESENTATION

 

Operator

 

Good afternoon, ladies and gentlemen, and welcome to the Lexington Corporate Properties Trust third-quarter 2006 conference call. [OPERATOR INSTRUCTIONS] As a reminder, this conference is being recorded today, Thursday, October 26, 2006. I'd now like to turn the conference over to Miss Claire Koeneman, with Financial Relations Board, please go ahead, ma'am.

 

Claire Koeneman - Lexington Corporate Properties Trust - Financial Relations Board

 

Hi, hello morning everyone and welcome to Lexington Corporate Properties third quarter 2006 conference call. The press release and supplemental package were distributed this morning and will be furnished on the Form 8-K to provide access to the widest possible audience. In the press release and supplemental packages we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Regulation G requirements. If you did not receive a copy, these documents are available on Lexington's website at www.lxp.com in the investor relations section. Additionally we will host a live webcast of today's call, which you can access in that same section.

 

At this time, management would like me to inform you that certain statements made during this conference call, which are not historical, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions, Lexington can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in the press release and from time to time in Lexington's filings with the SEC.

 

Finally, we do not undertake a duty to update any forward-looking statements. Having gone over all of that, I'd like to welcome management with us today include Wil Eglin, Chief Executive Officer; Pat Carroll, Chief Financial Officer; John Vander Zwaag, Executive Vice President; and Natasha Roberts, Director of Acquisitions. Without further adieu, I will turn the line over to Wil for his opening remarks. Wil.

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

Thanks, Claire. And welcome to all of you. And thank you for attending our third-quarter conference call. For the quarter we had some one-time items that decreased funds from operations by about $0.40 a share, the largest of which was a write-off relating to our Kmart property as

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

previously disclosed. Adjusted for these items FFO per share was $0.45, about $0.02 less than in the second quarter this year. Cash balances continue to weigh on earnings as does vacancy and especially our Dana property in Farmington Hills, Michigan, which we had empty for a full quarter in the third quarter and also the competitive state of the acquisition market that's made external growth difficult this year.

 

Our dividend payout ratio for the quarter was 81.1%, again adjusted for one-time items. On the acquisition side on the third quarter through Lexington Strategic Asset Corp. we acquired just one property for a purchase price of 14.7 million, at a GAAP cap rate of 10.1%, also during the quarter through LSAC we invested 1.8 million in a mortgage note. These investments brought our total volume for the year to 137.7 million, based on our current pipeline, we expect volume of 75 to 100 million for the fourth quarter, even as we continue to be very disciplined in our underwriting of new investments. Included in the projected fourth-quarter acquisition volume are three properties to be acquired by LSAC which would bring the LSAC portfolio to about 180 million. That means that LSAC's cash would be pretty much fully invested by year-end with leverage of about 50%.

 

During the quarter, we also obtained 35.4 million of non-recourse mortgage financing, at a weighted average fixed rate of approximately 6.2% and we also repurchased 68,404 shares of our own common stock at an average cost of $19.70 per share. The main thing we've talked about during this year has been the competitive state of the acquisition market and although we are seeing a significant volume of transaction flow, the acquisition market continues to be competitive with low cap rates and narrow spreads. As a result, our acquisition volume this year is likely to be the lowest in the last five years. But nevertheless we are optimistic about our 2007 opportunities and believe that our fourth-quarter acquisition volume is more reflective of our growth opportunities.

 

In connection with the Newkirk merger we are expanding our acquisition parameters to include both debt and equity investments in a broader range of net lease property types and we are working jointly with Newkirk on some very exciting acquisition opportunities that would close next year. Later in the call John Vander Zwaag will go into detail on the leasing front but obviously we are extremely pleased to have completed 109,000 square-foot lease at one of our Dallas, Texas properties this was the property that was formerly occupied by VarTech, Telecom. We are also pleased that Dana Corp. affirmed nine of eleven leases which is what we forecasted earlier in the year. Also that Allied Holdings affirmed its lease on our Decatur, Georgia property and in addition Owens Corning indicated that three of our leases -- three -- four of our leases would be affirmed, the one rejection being the smaller of two Owens Corning warehouses that we own outside Columbus, Ohio. So overall during the quarter the status of the leases with several tenants going through reorganizations was greatly clarified.

 

The potential sale of the Warren, Ohio property to Kmart at the end of the lease next year is the cause of the write-off, but that doesn't mean that the investment hasn't been a success. Over a nine-year period, the internal rate of return from the investment would be about 9.5%, should the sale occur at the end of the lease term. Had Kmart vacated that facility at the end of the lease, we believe that the leasing of that facility could have been very challenging. Now I'd like to turn the call over to Pat Carroll, our Chief Financial Officer, to discuss our financial results and balance sheet.

 

Pat Carroll - Lexington Corporate Properties Trust - CFO

 

Thanks, Wil. During the quarter, the Company had gross revenues of $51.6 million, fee income was approximately 1.1 million, compared to $1 million in the same quarter last year. Fee income for the quarter, this quarter was entirely comprised of asset management fees, and for the year-to-date number, all -- all but about $200,000 of the fees are asset management fees. Quarterly G&A was up about 500,000 quarter over quarter and this relates primarily to non capitalizable costs associated with the potential Newkirk merger.

 

Looking -- continuing to look at the P&L there are a few unusual items reflected in the quarterly P&L. The first one obviously is the impairment charge relating to Kmart facility, the gross amount of the charge is $28.2 million, however since it is held in an operating partnership, GAAP requires us to show it net of the minority interest, so on the income statement you'll see it listed as $21.6 million. And we incurred refinancing charges of approximately $500,000 relating to a mortgage. Interest coverage for the quarter was about 2.3 times.

 

Turning to the balance sheet, we believe that it continues to be in very good shape. At quarter end we had about 1.2 billion of debt outstanding including debt in properties held for sale, which had a weighted average interest rate of about 6%, and all of the debt was fixed rate. Of our consolidated mortgage debt approximately 300 million amortizes over time, so our balance sheet does deleverage significantly by our scheduled mortgage payments. We had 62.9 million of cash at quarter end and no borrowings outstanding on our $200 million bank line, although we did have about 32 million in the letter of credits outstanding related to a future acquisition.

 

Cash balances are due to property sales and mortgage refinancing, and 13.7 million of the cash relates to prepaid rents that were received from tenants. Balance sheet debt was 46% of total capitalization, and we are comfortable operating the company within a range of 45 to 50%. And 6.3

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

million of this debt is expected to amortize over the rest of this year. Continuing the balance sheet, if you look at intangibles, as I stated in the past, the intangible amount of the balance sheet is the allocation of the purchase price of properties to in place leases customer relationships, and above and below market leases in accordance with FAS 141. The impact of above and below market leases had on FFO for the quarter was about a negative $400,000 and also about 1.2 million for the year to date. And included in properties held for sale is the carrying cost of the Kmart property, which is net of the impairment charge incurred.

 

Turning to other assets, the components of that number is loan escrows are about 21.4 million, investments in marketable securities are about 5.8 million, we currently own about 510,000 shares of AFR at a price of about $9.89. We do have some construction in progress of about 500,000, real estate deposits and deposits on loans are about 8.1 million. We have 25.3 million in notes receivable. And also prepaid and deferred income taxes of about 4.9 million.

 

Looking at the liability side, the liabilities from discontinued ops are -- is the mortgage on the Kmart facility. And the significant components of other liabilities are accrued interest of about 3.1 million, deferred revenue which really is below market leases of about 6.1 million, payables relating to construction in progress of about 3 million, tenant improvement allowances of about 2.3 million, and notes payable of 2.9, again the prepaid rent of 13.7, and a liability -- accrued liability for potential merger costs of about 2.2 million. That's really it on the balance sheet and the P&L. Now I'd like for John Vander Zwaag to discuss our leasing activity. John?

 

John Vander Zwaag - Lexington Corporate Properties Trust - EVP

 

Thanks, Pat. We are currently approximately 97% leased and we expect to remain in the range of 96 to 97% leased through 2007. Addressing space that was vacant and not leased at the beginning of the quarter we achieved the following. We completed the disposition of the vacant I-17th Center in Phoenix with the sale of the 60,000 square-foot building to a user. We executed a 12-year lease on approximately 109,000 square feet at 1600 Viceroy in Dallas which brings that is property to approximately 70% occupancy. And we completed a 6500 square-foot retail lease to Citibank at our California Culinary building in San Francisco.

 

Additionally we believe we're getting close to agreement on new leases for 8600 square feet at our Black Canyon corporate center in Phoenix. And 12,000 square feet at Airport Center West in Hebron, Kentucky, which would bring those two properties to about 70% and 55% occupancy respectively. Our 183,000 square-foot industrial building in Auburn Hills, Michigan which was formerly leased to Lear remains vacant but we are encouraged by an increase in the number of users who have considered locating operations in this building during the quarter. While we -- no deal is imminent we continue to believe that the building has long-term value. Our 112,000 square-foot office R&D building in Farmington Hills, Michigan has seen some potential activities from users -- or some activity from potential users but we're more concerned with this building than any other in our portfolio due to its special purpose characteristics. We are continuing our evaluation of leasing and disposition alternatives for this property.

 

Finally, we have our industrial property in the Nashville market which remains 50% leased, formerly it was a building -- a vacant building master leased by Dana. And we're getting good activity on the available space there and remain very optimistic about the leasing prospects.

 

With respect to our near-term lease expirations we extended the lease with Johnson Controls on our industrial building in Overland, Ohio through December of next year. That lease was executed just this week. We continue to see strong leasing activity on space which is leased but not occupied by Allied Holdings and our office building in Decatur, Georgia where the master lease with Allied expires in July of 2008. And assuming that Allied space requirements stay at about what they're projecting at 50% of the building, we expect to be more than 90% leased when that master lease expires.

 

We executed a 24,000 and change square-foot lease for five years on our 65,000 square-foot East Shore One office building in Richmond, which is master leased to [Highwoods] through November of 2007. We have an additional 24,000 square-foot lease out -- for five years in the documentation stage, which will bring the building to 72% physical occupancy and we have multiple prospects for the balance of the space. We extended the lease with Excel Logistics on our 179,000 square foot warehouse in Harrisburg through the end of this year but expect that they will vacate the building at that time. We currently have a proposal out for a 12-month as-is lease to a user who is constructing their own facility in this market, while -- which would allow us to continue to actively market the property during that lease term.

 

We also have a 330,000 square-foot building in Harrisburg leased to Excel which has been extended through May of next year, while Excel continues to evaluate their long-term space requirements in the market. We have 18,600 square feet of space coming off lease in our 115,000 square-foot West Palm Beach office market, office building and we're beginning to market this space.

 

 

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Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

The lease on our 134,000 square-foot industrial building in Plymouth, Michigan with Johnson Controls expires in late December. Johnson Controls has not exercised their renewal option here and in spite of the fact that they have requested a variety of different lease options to remain in the building, they have not communicated anything to us with respect to their near-term or long-term plans for the location. As we discussed in the past, our lease with Kmart on our large distribution facility in Warren, Ohio expires in September of next year. Kmart has exercised the purchase option at fair market value, upon lease expiration and to -- and the appraisal process has produced an estimation of fair market value of 15.8 million. The lease with Kmart called for the property to be appraised at its fair market value unencumbered by any renewal options. The appraisers have interpreted this to mean value as a vacant property, which we think is not the intent behind the language in the lease.

 

In addition, the appraisal process has ignored replacement costs as a factor in determining value, which we also think is wrong. As Wil indicated we have enjoyed a good rate of return on this investment even at the $15.8 million sale price. However, we are examining avenues for appealing the appraisal process and we will pursue these avenues if we feel that there's a reasonable likelihood of achieving -- of achieving a more desirable outcome.

 

Finally, Fred Meyer stores has exercised its option to extend its ten-year lease on our store in Klamath Falls, Oregon that would take it out to the first quarter of 2018. The rent will be the fair market rent, which is still in the process of being determined. And we expect -- but we expect that there will be a slight increase from the rent they are currently paying. We currently have five tenants operating in bankruptcy. We expect that Owens Corning will formerly emerge from bankruptcy within the next few weeks. At that time, our lease with them on the 250,000 square-foot warehouse in Suburban Columbus will be terminated. Our other lease with Owens Corning for about 400,000 square feet at this location will be affirmed. We are negotiating with Owens Corning to have them remain in the 250,000 square-foot building through April of next year and we are beginning the process of marketing this space. We believe the property is suitable for a wide range of users and we've already had some preliminary indications of interest from an existing tenant of ours in another market.

 

As expected, Dana affirmed 9 of the 11 leases we had with them at the time they entered bankruptcy. One of these nine leases pertains to our property in Gordonsville, Tennessee which expires in I think August of next year. We have reasons to believe that this operation remains in Dana's long-term plans but we have not had any substantive discussions about an extension of the lease.

 

As discussed in our previous calls, our lease with Allied Holdings on our office building in Decatur, Georgia and our lease with Federal Mogul on our office building in South Hill, Michigan have been affirmed and finally Tower Automotive continues to operate at a high utilization rate at our industrial facility in Plymouth, Michigan and we expect that this lease will be affirmed.

 

With respect to our disposition activities, we have sold seven properties for approximately $78 million, so far this year, and we have two properties under a letter of intent for a combined sales price of approximately $29 million. We hope to conclude these sales this year and if we did, that would bring our full-year sales to nine properties at a combined value of approximately $108 million.

 

In growth related matters we are nearing the -- near to finalizing the documentation of an expansion of our refrigerated warehouse facility in Danville, Illinois, which will also entail an extension of our existing lease at this location to 15 years. We also are continuing to evaluate build to suit opportunities on the excess land at our Kerry, North Carolina, Glendale, Arizona and Hebron, Kentucky locations. In summary we continue to operate at high space utilization rates, we're currently about 97% leased and we feel that we have good prospects for retenanting the vast majority of our current impending vacancies. Now I'll turn it back over to Wil.

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

Thanks, John. Overall, we are very well positioned to execute our business plan as we head into 2007. Even as our operating results reflect the impact of vacancy and rent roll down since the third quarter last year and also the impact of slower acquisition growth although investment volume is expected to increase fairly significantly in the fourth quarter. Our balance sheet continues to be in very good shape with moderate leverage, significant cash, and bank line availability and we feel confident that we can deploy our cash balances into investment opportunities in fourth quarter. We believe the leasing environment is improving but we continue to have some leasing challenges, especially in the automotive sector with our Dana building, the facility formerly leased to Lear, and Johnson Controls now but overall our occupancy remains very strong in our portfolio.

 

Before turning to the Q&A I want to remind everyone that our proxy statement for the Newkirk merger is out and that the date of the special meeting of shareholders to vote on the merger is scheduled for November 20, 2006. And that date will allow us to close the merger this year as we expected. We are very excited about the merger and the opportunity to create a company with far greater prospects than the ones either

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

company could ever achieve alone. And by forming Lexington Realty Trust we will be creating a large well capitalized company with very strong tenant credit quality and superior portfolio diversification, which we believe will have great growth potential.

 

Cap rate compression's created a challenging growth environment for all companies with a net lease strategy, but Lexington Realty Trust will have numerous options with respect to how we allocate our investment capital across several asset classes as debt or equity investments either for our own account or an existing or to be formed joint ventures. Overall, the integration is on track, and we are working together on numerous ideas that we believe will create significant shareholder value. We are highly confident that we will execute our 2007 business plan and we are reiterating our 2007 guidance of $1.75 to $1.85 in FFO per share. That ends our formal remarks. Operator, we'll turn it over to you for a question-and-answer session.

QUESTION AND ANSWER

 

Operator

 

Thank you, sir. [OPERATOR INSTRUCTIONS] Our first question is from John Guinee with Stifel Nicolaus.

 

John Guinee - Stifel Nicolaus - Analyst

 

Good day. Two quick questions. First, talk a little bit about your share repurchase program where you're a buyer, where you're not a buyer, 68,000 shares seems like about one day's worth of activity.

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

Well, we had 2 million shares authorized, John. So it's net the 68,000 from that. And you'll see what's left on the authorization. We thought there was an especially good opportunity to repurchase shares. You can just see -- see our average cost. And our big -- we're a big believer of repurchasing shares and when we do so we obviously like to buy them at the lowest price, so we perhaps should have bought more when the stock was down at those levels and we continue to have a fairly large -- large authorization to do so at certain price points.

 

Pat Carroll - Lexington Corporate Properties Trust - CFO

 

Also remember because we were in the process of filing our proxy with Newkirk we really were blocked out for a large portion of that time pending SEC approval of the merger agreement.

 

John Guinee - Stifel Nicolaus - Analyst

 

Okay. Good. Second question is, it's very clear why you did the deal larger, better capitalized, diversified asset pool, expanding your range and breadth of investments. But the key, as you've alluded to in this business, is to reduce your cost of capital. Any ideas as to how you can further reduce the cost of capital off this platform?

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

I think inherent in reducing risk in diversification, suggests that we'll be able to drive down our costs of capital some and I think the other -- the opportunity clearly is for us to take advantage of -- of some better opportunities that we have for growth. We're very excited about some of the things that we're working on but, again, the key is for us to get into 2007, get the integration behind us, and start executing so that the market can get a clearer sense of what we're capable of doing.

 

John Guinee - Stifel Nicolaus - Analyst

 

Great. Thank you.

 

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

Operator

 

Thank you. Our next question is from Anthony Paolone with JP Morgan.

 

Anthony Paolone - JP Morgan - Analyst

 

Thank you. Wil, what really drives the ability to go out and to do equity and debt now and create a lot wider investment opportunity? Is it just the larger balance sheet that you get from Newkirk, is it additional staffing, is it just the idea that you'll do the equity end debt? I mean, what kind of gets you to -- is it just the idea that you'll be able to do a lot more deals?

 

Pat Carroll - Lexington Corporate Properties Trust - CFO

 

Well, there's -- we see a lot of the market and I think combined with the Newkirk management we see even more of the market now. There's certainly some transaction flow that they have sourced that we haven't. So I think that's part of it. Obviously, having developed Lexington Strategic as a pool of capital to invest in different kinds of net lease assets that's part of the plan. Newkirk's retail portfolio combined with ours gives us a little bit bigger presence in that asset class so we're -- we have allocations towards the three core property types. The interest in doing more debt investing in the mezzanine space is a function of high prices. We find that sort of piece of the capital stack more interesting to us than we have over the years. And the Newkirk people bring some specific expertise in that area.

 

Anthony Paolone - JP Morgan - Analyst

 

Do you envision on the debt side financing it as you would normally, your business now, or do you envision that being carved out and financed more like a finance company maybe with higher leverage?

 

Pat Carroll - Lexington Corporate Properties Trust - CFO

 

Well, it's principally through our joint venture with Winthrop. You know, which has a CDO platform. We're 50% an investor in.

 

Anthony Paolone - JP Morgan - Analyst

 

Okay. Thank you.

 

Operator

 

Thank you. Our next question is from Philip Martin with Cantor Fitzgerald.

 

Philip Martin - Cantor Fitzgerald - Analyst

 

Good afternoon. The -- some of the -- well, kind of dovetailing off of Anthony's question. Can you talk a little bit about the pipeline, Wil? On the debt product side, I know -- I noticed you're a -- a little inflection in your voice when you talked about 2007 and some of the products or the pipeline that Newkirk will give you. Can you talk a little bit about that pipeline and what you like about it?

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

We had said that we think that we can originate about 400 million of investments in that kind of space next year and just based on the way Newkirk is executing so far, just quite confident that that will be the case. I mean, one of the things that we've observed is we have sort of a natural, if you will, pipeline of opportunities to generate loan opportunities like that. I mean, if you think about it, we will source this year more than 12 billion of acquisition opportunities through Lexington. And you can see by our volume that we're not closing that many of them, but every potential acquisition that we lose is also a potential opportunity for us to finance the bidder if we choose to. So I think we have that inherent

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

built-in opportunity to capitalize on, we just have to make a greater effort to realize and focus on that opportunity versus being frustrated at the low cap rates that people are paying for assets that in previous years we would have been able to acquire ourselves.

 

Philip Martin - Cantor Fitzgerald - Analyst

 

Okay. And on the -- with Lexington Strategic there, and now Newkirk bringing again expanded opportunities, do you see a greater number -- I mean obviously you probably do, but I'm just trying to get a sense of the value-add -- operationally more intense value-add opportunities out there that -- where you might face less competition? Do you see that pipeline growing and pretty attractive going into 2007?

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

I think there's clearly an opportunity for us , to look at some properties with some shorter lease terms, just -- if we have one year where we don't have a whole lot of lease roll over in the portfolio, looking at perhaps some shorter maturities as yield opportunities, where there's very strong real estate fundamentals. And the Newkirk team has a very good track record, being more sort of opportunistic in those kinds of net lease investments that have a little bit more of a real estate component to them versus sort of the longer term lease assets that we historically focused on.

 

Philip Martin - Cantor Fitzgerald - Analyst

 

Okay. And my last question. On the development front. Is there a chance that -- with now a larger platform, more diverse platform, Lexington Strategic's out there, that you get involved with the development and redevelopment on the redevelopment, development side a bit more?

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

Well, we're trying to take advantage of opportunities where we have excess land in the portfolio, certainly. I think we need to just continue to make every effort to work closely with our partners in the built to suit space. I continue to think the way we're going to play that market for the most part is to be a source of takeout financing for built to suit builders, but we certainly have the flexibility to participate in that market, either as a joint venture partner or participating construction lender. Where we have a situation where a corporate tenant has agreed to take a building upon completion of construction.

 

Philip Martin - Cantor Fitzgerald - Analyst

 

Okay. Thank you very much.

 

Operator

 

Thank you. [OPERATOR INSTRUCTIONS] At this time, I'd like to turn the call back to management for additional remarks.

 

Wil Eglin - Lexington Corporate Properties Trust - CEO

 

Thanks, operator. And thanks to all of you for joining the call today. Hopefully we'll see some of you out at the NAREIT conference and we'll look forward to getting the merger completed, having a smooth integration, and executing our business plan as we head into next year and looking forward to giving you an update on our next conference call. Thank you.

 

Operator

 

Thank you, sir. Ladies and gentlemen, this concludes the Lexington Corporate Properties Trust third-quarter 2006 conference call. If you'd like to listen to a replay of today's conference, please dial 1-800-405-2236 or internationally at 303-405-2236. Pardon me, 303-590-3000, with access number 11072657 followed by the pound sign. Once again if you'd like to listen to a replay of today's conference please dial 1-800-405-2236 or 303-590-3000 with access number 11072657 followed by the pound sign. Thank you so much for your participation and have a pleasant day you may now disconnect.

 

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FINAL TRANSCRIPT

Oct. 26. 2006 / 2:00PM ET, LXP - Q3 2006 Lexington Corporate Properties Trust Earnings Conference Call

 

 

 


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