UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): May 7, 2015
LEXINGTON REALTY TRUST | ||
(Exact name of registrant as specified in its charter) | ||
Maryland | 1-12386 | 13-3717318 |
(State or other jurisdiction of incorporation) |
(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.):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | 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 Condition. |
On May 7, 2015, we issued a press release announcing our financial results for the quarter ended March 31, 2015. A copy of the press release is furnished herewith as part of 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, which we refer to as the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, which we refer to as the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. | Regulation FD Disclosure. |
On May 7, 2015, we made available supplemental information, which we refer to as the Quarterly Earnings and Supplemental Operating and Financial Data, March 31, 2015, a copy of which is furnished herewith as Exhibit 99.1.
Also on May 7, 2015, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.2.
The information furnished pursuant to this “Item 7.01 - Regulation FD Disclosure”, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
99.1 | Quarterly Earnings and Supplemental Operating and Financial Data, March 31, 2015. |
99.2 | May 7, 2015 Conference Call Transcript. |
SIGNATURES
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 Realty Trust | ||
Date: May 8, 2015 | By: | /s/ Patrick Carroll |
Patrick Carroll | ||
Chief Financial Officer |
Exhibit Index
99.1 | Quarterly Earnings and Supplemental Operating and Financial Data, March 31, 2015. |
99.2 | May 7, 2015 Conference Call Transcript. |
Exhibit 99.1
Quarterly Earnings and
Supplemental Operating and Financial Data
March 31, 2015
LEXINGTON REALTY TRUST
SUPPLEMENTAL REPORTING PACKAGE
March 31, 2015
Table of Contents
Section | Page | |
First Quarter 2015 Earnings Press Release | 3 | |
Portfolio Data | ||
2015 First Quarter Investment/Capital Recycling Summary | 13 | |
Build-To-Suit Projects/Forward Commitments | 14 | |
2015 First Quarter Financing Summary | 15 | |
2015 First Quarter Leasing Summary | 16 | |
Portfolio Detail By Asset Class | 18 | |
Components of Net Asset Value | 19 | |
Other Revenue Data | 20 | |
Top 20 Markets | 22 | |
Tenant Industry Diversification | 24 | |
Top 10 Tenants or Guarantors | 25 | |
Lease Rollover Schedule – GAAP Basis | 26 | |
Property Leases and Vacancies – Consolidated Portfolio | 28 | |
Select Credit Metrics | 35 | |
Historical Credit Metrics Summary | 36 | |
Financial Covenants | 37 | |
Mortgages and Notes Payable | 38 | |
Debt Maturity Schedule | 41 | |
Mortgage Loans Receivable | 42 | |
Partnership Interests | 43 | |
Selected Balance Sheet and Income Statement Account Data | 44 | |
Investor Information | 45 | |
Appendix A |
This Quarterly Earnings Release and Supplemental Reporting Package contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of Lexington Realty Trust “Lexington”, 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. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington’s periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the authorization of Lexington’s Board of Trustees of future dividend declarations, including those necessary to achieve an annualized dividend level of $0.68 per common share/unit (2) Lexington’s ability to achieve its estimate of Company FFO for the year ending December 31, 2015, (3) the successful consummation of any lease, acquisition, build-to-suit, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any new legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington’s web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington’s future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects,” may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, 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.
LEXINGTON REALTY TRUST
TRADED: NYSE: LXP
ONE PENN PLAZA, SUITE 4015
NEW YORK, NY 10119-4015
FOR IMMEDIATE RELEASE
LEXINGTON REALTY TRUST REPORTS FIRST QUARTER 2015 RESULTS
New York, NY - Thursday, May 7, 2015 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the first quarter ended March 31, 2015.
First Quarter 2015 Highlights
• | Generated Company Funds From Operations (“Company FFO”) of $64.5 million, or $0.26 per diluted common share. |
• | Raised low end of 2015 FFO guidance by $0.01 per share to new range of $1.01 - $1.05 per share. |
• | Acquired five properties for $197.3 million. |
• | Invested $21.5 million in on-going build-to-suit projects and agreed to acquire an industrial property for $29.7 million. |
• | Disposed of three office buildings for gross disposition proceeds of $35.2 million. |
• | Retired $113.6 million of secured debt and closed $80.8 million of long-term financing with a weighted-average fixed interest rate of 3.7% and a weighted-average term of approximately 12 years. |
• | Completed 0.9 million square feet of new leases and lease extensions with overall portfolio 96.7% leased. |
• | Leased Lakewood, CO office property subsequent to quarter end. |
T. Wilson Eglin, President and Chief Executive Officer of Lexington, stated “We believe both our investment activity and leasing results were outstanding in the first quarter. We ended the quarter with our portfolio 96.7% leased, a 30 basis point improvement compared to the prior quarter. As we look ahead, we have just one office lease expiring over the balance of the year and are in renewal discussions with most of our tenants with office leases expiring next year.”
Mr. Eglin continued, “We made meaningful progress on our portfolio repositioning effort, disposing of three office properties and acquiring five properties for $197.3 million, the majority of which were industrial properties subject to long-term net leases. These efforts continue the diversification of our portfolio to include more properties with long-term net leases, typically with lower capital expenditure requirements. The steps that we have taken in the last year have extended the weighted-average lease term in our portfolio from 11.1 years to 12.4 years. In addition, we have taken further advantage of market conditions to enhance our capital structure by unencumbering assets, retiring short-term secured debt, lowering our borrowing costs and extending our debt maturities.”
3 |
FINANCIAL RESULTS
Revenues
For the quarter ended March 31, 2015, total gross revenues were $108.6 million, compared with total gross revenues of $104.1 million for the quarter ended March 31, 2014. The increase is primarily due to property acquisitions.
Company FFO
For the quarter ended March 31, 2015, Lexington generated Company FFO of $64.5 million, or $0.26 per diluted share, compared to Company FFO for the quarter ended March 31, 2014 of $66.5 million, or $0.28 per diluted share. The calculation of Company FFO and a reconciliation to net income (loss) attributable to common shareholders is included later in this press release.
Dividends/Distributions
Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March 31, 2015 of $0.17 per common share/unit, which was paid on April 15, 2015 to common shareholders/unitholders of record as of March 31, 2015, and a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred Shares”), which will be paid on May 15, 2015 to Series C Preferred Shareholders of record as of April 30, 2015.
Net Income (Loss) Attributable to Common Shareholders
For the quarter ended March 31, 2015, net income attributable to common shareholders was $31.8 million, or $0.14 per diluted share, compared with a net loss attributable to common shareholders for the quarter ended March 31, 2014 of $(0.8) million, or $(–) per diluted share.
OPERATING ACTIVITIES
Investment Activity
During the quarter, the Company acquired five properties, each of which is subject to a lease having a term in excess of ten years (an “LTL”).
Acquisitions
Tenant/Guarantor | Location | Property Type | Initial Basis ($000) | Initial Annualized Cash Rent ($000) | Initial Cash Yield | Estimated GAAP Yield | Lease Term | |||||||||||||||||
Faurecia USA Holdings, Inc. | Auburn Hills, MI | LTL - Office | $ | 40,025 | $ | 3,105 | 7.8 | % | 8.9 | % | 14 | |||||||||||||
Spitzer Industries, Inc.(1) | Houston and Brookshire, TX | LTL - Industrial | 51,100 | 3,577 | 7.0 | % | 8.5 | % | 20 | |||||||||||||||
Nissan North America, Inc. | Canton, MS | LTL - Industrial | 89,300 | 5,702 | 6.4 | % | 6.9 | % | 12 | |||||||||||||||
Littlestone Brotherhood LLC | Venice, FL | LTL - Land/Infrastructure | 16,850 | 1,264 | 7.5 | % | 11.3 | % | 40 | |||||||||||||||
$ | 197,275 | $ | 13,648 | 6.9 | % | 8.1 | % |
1. | Spitzer Industries, Inc. is the guarantor of two individual leases. Curtis Kelly, Inc. (Houston, TX) and Orizon Industries, Inc. (Brookshire, TX) are the tenants. |
4 |
The Company also funded $21.5 million of the projected costs of the following projects:
On-going Build-to-Suit Projects
Location | Sq. Ft. | Property Type | Lease (Years) | Maximum Commitment/ Estimated Completion Cost ($000) | GAAP Investment Balance as of 3/31/2015 ($000) | Estimated Completion Date | ||||||||||||||
Oak Creek, WI | 164,000 | LTL - Industrial | 20 | $ | 22,609 | $ | 16,362 | 2Q 15 | ||||||||||||
Thomson, GA | 208,000 | LTL - Industrial | 15 | 10,245 | 6,574 | 2Q 15 | ||||||||||||||
Richmond, VA | 330,000 | LTL - Office | 15 | 110,137 | 73,617 | 3Q 15 | ||||||||||||||
Lake Jackson, TX | 664,000 | LTL - Office | 20 | 166,164 | 29,018 | 4Q 16 | ||||||||||||||
Houston, TX(1) | 274,000 | LTL - Retail/Specialty | 20 | 86,491 | 17,292 | 3Q 16 | ||||||||||||||
1,640,000 | $ | 395,646 | $ | 142,863 |
1. | Lexington has a 25% interest as of March 31, 2015. Lexington may provide construction financing up to $56.7 million to the joint venture. |
In addition, the Company has committed to acquire the following properties upon completion of construction.
Forward Commitments
Location | Property Type | Estimated Acquisition Cost ($000) | Lease Term (Years) | Estimated Cash Yield | Estimated Yield | Estimated
Completion Date | ||||||||||||||
Richland, WA | LTL - Industrial | $ | 155,000 | 20 | 7.1 | % | 8.6 | % | 4Q 15 | |||||||||||
Detroit, MI | LTL - Industrial | 29,680 | 20 | 7.4 | % | 7.4 | % | 1Q 16 | ||||||||||||
$ | 184,680 | 7.2 | % | 8.4 | % |
Capital Recycling
Property Dispositions
Tenant | Location | Property Type | Gross
Disposition Price ($000) | Annualized
NOI ($000) | Month
of Disposition | |||||||||
Baker Hughes, Inc.(1) | Houston, TX | Office | $ | 4,950 | $ | 925 | March | |||||||
Vacant(2) | Issaquah, WA | Office | 30,293 | — | March | |||||||||
$ | 35,243 | $ | 925 |
1. | $2.2 million secured debt satisfied at closing. Tenant lease expires 09/2015. |
2. | Two properties. Deed-in-lieu of foreclosure to satisfy $30.3 million of non-recourse mortgage debt. |
Balance Sheet
During the first quarter of 2015, Lexington satisfied $113.6 million of secured debt with a weighted-average interest rate of 5.6%, unencumbering six properties with estimated 2015 annual net operating income of approximately $13.9 million.
5 |
During the first quarter of 2015, Lexington obtained the following secured loans:
Tenant/Guarantor | Location | Property Type | Amount
($000) | Fixed
Rate | Maturity Date | |||||||||
ZE-45 Ground Tenant LLC | New York, NY | LTL - Land/Infrastructure | $ | 29,193 | 4.1 | % | 01/2025 | |||||||
FedEx Corporation | Long Island City, NY | LTL - Industrial | 51,650 | 3.5 | % | 03/2028 | ||||||||
$ | 80,843 | 3.7 | % |
The properties generate annual net operating income of approximately $6.3 million.
Leasing
During the first quarter of 2015, Lexington executed the following new and extended leases:
LEASE EXTENSIONS | ||||||||||
Location | Prior Term | Lease Expiration Date | Sq. Ft. | |||||||
Office/Multi-Tenant Office | ||||||||||
1 | Los Angeles, CA | 08/2015 | 08/2018 | 20,203 | ||||||
2 | Westerville, OH | 09/2015 | 03/2026 | 97,000 | ||||||
3 | Rock Hill, SC | 03/2034 | 03/2039 | 104,497 | ||||||
4 | Irving, TX | 03/2023 | 02/2025 | 247,254 | ||||||
5 | Mission, TX | 06/2015 | 06/2020 | 75,016 | ||||||
6-8 | Various | 2015 | 2016-2017 | 1,328 | ||||||
8 | Total office lease extensions | 545,298 | ||||||||
Industrial | ||||||||||
1 | Plymouth, IN | 06/2015 | 12/2016 | 300,500 | ||||||
1 | Total industrial lease extensions | 300,500 | ||||||||
9 | Total lease extensions | 845,798 |
NEW LEASES | ||||||||||
Location | Lease Expiration Date | Sq. Ft. | ||||||||
Office/Multi-Tenant Office | ||||||||||
1 | Louisville, CO | 05/2023 | 20,000 | |||||||
2 | Baltimore, MD | 03/2028 | 15,338 | |||||||
3 | Harrisburg, PA | 10/2025 | 23,535 | |||||||
3 | Total new leases | 58,873 | ||||||||
12 | TOTAL NEW AND EXTENDED LEASES | 904,671 |
6 |
2015 EARNINGS GUIDANCE
Lexington raised the low end of its Company FFO guidance by $0.01 per share to an expected range of $1.01 to $1.05 per diluted share for the year ended December 31, 2015. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.
FIRST QUARTER 2015 CONFERENCE CALL
Lexington will host a conference call today, Thursday, May 7, 2015, at 11:00 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2015. Interested parties may participate in this conference call by dialing (877) 407-0789 or (201) 689-8562. A replay of the call will be available through May 21, 2015, at (877) 870-5176 or (858) 384-5517, pin: 13606775. A live webcast of the conference call will be available at www.lxp.com within the Investors section.
ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust is a real estate investment trust that owns a diversified portfolio of equity and debt interests in single-tenant commercial properties and land. Lexington seeks to expand its portfolio through acquisitions, sale-leaseback transactions, build-to-suit arrangements and other transactions. A majority of these properties and all land interests are subject to net or similar leases, where the tenant bears all or substantially all of the operating costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. Lexington also provides investment advisory and asset management services to investors in the single-tenant area. Lexington common shares are traded on the New York Stock Exchange under the symbol “LXP”. Additional information about Lexington is available on-line at www.lxp.com or by contacting Lexington Realty Trust, One Penn Plaza, Suite 4015, New York, New York 10119-4015, Attention: Investor Relations.
Contact:
Investor or Media Inquiries, T. Wilson Eglin, CEO
Lexington Realty Trust
Phone: (212) 692-7200 E-mail: tweglin@lxp.com
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. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the authorization by Lexington's Board of Trustees of future dividend declarations, including those necessary to achieve an annualized dividend level of $0.68 per common share/unit, (2) Lexington's ability to achieve its estimate of Company FFO for the year ending December 31, 2015, (3) the successful consummation of any lease, acquisition, build-to-suit, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, 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.
References to Lexington refer to Lexington Realty Trust and its consolidated subsidiaries. All interests in properties and loans are held through special purpose entities, which are separate and distinct legal entities, some of which are consolidated for financial statement purposes and/or disregarded for income tax purposes.
7 |
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Gross revenues: | ||||||||
Rental | $ | 100,016 | $ | 96,365 | ||||
Advisory and incentive fees | 146 | 122 | ||||||
Tenant reimbursements | 8,426 | 7,651 | ||||||
Total gross revenues | 108,588 | 104,138 | ||||||
Expense applicable to revenues: | ||||||||
Depreciation and amortization | (40,274 | ) | (37,947 | ) | ||||
Property operating | (16,582 | ) | (15,621 | ) | ||||
General and administrative | (7,822 | ) | (8,037 | ) | ||||
Non-operating income | 2,468 | 2,951 | ||||||
Interest and amortization expense | (23,003 | ) | (23,816 | ) | ||||
Debt satisfaction gains (charges), net | 10,375 | (3,304 | ) | |||||
Impairment charges | (1,139 | ) | (16,400 | ) | ||||
Gain on sale of property | 148 | — | ||||||
Income before provision for income taxes, equity in earnings of non-consolidated entities and discontinued operations | 32,759 | 1,964 | ||||||
Provision for income taxes | (441 | ) | (591 | ) | ||||
Equity in earnings of non-consolidated entities | 366 | 281 | ||||||
Income from continuing operations | 32,684 | 1,654 | ||||||
Discontinued operations: | ||||||||
Income from discontinued operations | 110 | 2,487 | ||||||
Provision for income taxes | — | (18 | ) | |||||
Gain on sale of property | 1,577 | — | ||||||
Impairment charges | — | (2,309 | ) | |||||
Total discontinued operations | 1,687 | 160 | ||||||
Net income | 34,371 | 1,814 | ||||||
Less net income attributable to noncontrolling interests | (866 | ) | (928 | ) | ||||
Net income attributable to Lexington Realty Trust shareholders | 33,505 | 886 | ||||||
Dividends attributable to preferred shares – Series C | (1,572 | ) | (1,572 | ) | ||||
Allocation to participating securities | (104 | ) | (153 | ) | ||||
Net income (loss) attributable to common shareholders | $ | 31,829 | $ | (839 | ) | |||
Income (loss) per common share – basic: | ||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | — | ||||
Income from discontinued operations | 0.01 | — | ||||||
Net income (loss) attributable to common shareholders | $ | 0.14 | $ | — | ||||
Weighted-average common shares outstanding – basic | 232,525,675 | 227,156,690 | ||||||
Income (loss) per common share – diluted: | ||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | — | ||||
Income from discontinued operations | 0.01 | — | ||||||
Net income (loss) attributable to common shareholders | $ | 0.14 | $ | — | ||||
Weighted-average common shares outstanding – diluted | 232,957,265 | 227,156,690 | ||||||
Amounts attributable to common shareholders: | ||||||||
Income (loss) from continuing operations | $ | 30,142 | $ | (980 | ) | |||
Income from discontinued operations | 1,687 | 141 | ||||||
Net income (loss) attributable to common shareholders | $ | 31,829 | $ | (839 | ) |
8 |
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
March 31, 2015 | December 31, 2014 | |||||||
Assets: | ||||||||
Real estate, at cost | $ | 3,828,966 | $ | 3,671,560 | ||||
Real estate - intangible assets | 732,080 | 705,566 | ||||||
Investments in real estate under construction | 125,571 | 106,238 | ||||||
4,686,617 | 4,483,364 | |||||||
Less: accumulated depreciation and amortization | 1,235,733 | 1,196,114 | ||||||
Real estate, net | 3,450,884 | 3,287,250 | ||||||
Assets held for sale | — | 3,379 | ||||||
Cash and cash equivalents | 54,821 | 191,077 | ||||||
Restricted cash | 17,290 | 17,379 | ||||||
Investment in and advances to non-consolidated entities | 21,836 | 19,402 | ||||||
Deferred expenses, net | 67,827 | 65,860 | ||||||
Loans receivable, net | 105,827 | 105,635 | ||||||
Rent receivable – current | 9,692 | 6,311 | ||||||
Rent receivable – deferred | 74,541 | 61,372 | ||||||
Other assets | 24,240 | 20,229 | ||||||
Total assets | $ | 3,826,958 | $ | 3,777,894 | ||||
Liabilities and Equity: | ||||||||
Liabilities: | ||||||||
Mortgages and notes payable | $ | 901,328 | $ | 945,216 | ||||
Credit facility borrowings | 93,000 | — | ||||||
Term loans payable | 505,000 | 505,000 | ||||||
Senior notes payable | 497,743 | 497,675 | ||||||
Convertible notes payable | 15,152 | 15,664 | ||||||
Trust preferred securities | 129,120 | 129,120 | ||||||
Dividends payable | 43,202 | 42,864 | ||||||
Liabilities held for sale | — | 2,843 | ||||||
Accounts payable and other liabilities | 32,915 | 37,740 | ||||||
Accrued interest payable | 13,112 | 8,301 | ||||||
Deferred revenue - including below market leases, net | 66,162 | 68,215 | ||||||
Prepaid rent | 23,745 | 16,336 | ||||||
Total liabilities | 2,320,479 | 2,268,974 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares: | ||||||||
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding | 94,016 | 94,016 | ||||||
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 234,819,421 and 233,278,037 shares issued and outstanding in 2015 and 2014, respectively | 23 | 23 | ||||||
Additional paid-in-capital | 2,772,841 | 2,763,374 | ||||||
Accumulated distributions in excess of net income | (1,379,929 | ) | (1,372,051 | ) | ||||
Accumulated other comprehensive income (loss) | (3,692 | ) | 404 | |||||
Total shareholders’ equity | 1,483,259 | 1,485,766 | ||||||
Noncontrolling interests | 23,220 | 23,154 | ||||||
Total equity | 1,506,479 | 1,508,920 | ||||||
Total liabilities and equity | $ | 3,826,958 | $ | 3,777,894 |
9 |
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES |
EARNINGS PER SHARE |
(Unaudited and in thousands, except share and per share data) |
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
EARNINGS PER SHARE: | ||||||||
Basic: | ||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | 30,142 | $ | (980 | ) | |||
Income from discontinued operations attributable to common shareholders | 1,687 | 141 | ||||||
Net income (loss) attributable to common shareholders | $ | 31,829 | $ | (839 | ) | |||
Weighted-average number of common shares outstanding | 232,525,675 | 227,156,690 | ||||||
Income (loss) per common share: | ||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | — | ||||
Income from discontinued operations | 0.01 | — | ||||||
Net income (loss) attributable to common shareholders | $ | 0.14 | $ | — | ||||
Diluted: | ||||||||
Income (loss) from continuing operations attributable to common shareholders - basic | $ | 30,142 | $ | (980 | ) | |||
Impact of assumed conversions: | ||||||||
Share options | — | — | ||||||
Income (loss) from continuing operations attributable to common shareholders | 30,142 | (980 | ) | |||||
Income from discontinued operations attributable to common shareholders - basic | 1,687 | 141 | ||||||
Impact of assumed conversions: | ||||||||
Share options | — | — | ||||||
Income from discontinued operations attributable to common shareholders | 1,687 | 141 | ||||||
Net income (loss) attributable to common shareholders | $ | 31,829 | $ | (839 | ) | |||
Weighted-average common shares outstanding - basic | 232,525,675 | 227,156,690 | ||||||
Effect of dilutive securities: | ||||||||
Share options | 431,590 | — | ||||||
Weighted-average common shares outstanding | 232,957,265 | 227,156,690 | ||||||
Income (loss) per common share: | ||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | — | ||||
Income from discontinued operations | 0.01 | — | ||||||
Net income (loss) attributable to common shareholders | $ | 0.14 | $ | — |
10 |
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES |
COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION |
(Unaudited and in thousands, except share and per share data) |
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
FUNDS FROM OPERATIONS: (1) | ||||||||
Basic and Diluted: | ||||||||
Net income (loss) attributable to common shareholders | $ | 31,829 | $ | (839 | ) | |||
Adjustments: | ||||||||
Depreciation and amortization | 38,922 | 39,939 | ||||||
Impairment charges - real estate | 1,139 | 18,709 | ||||||
Noncontrolling interests - OP units | 550 | 581 | ||||||
Amortization of leasing commissions | 1,352 | 1,454 | ||||||
Joint venture and noncontrolling interest adjustment | 321 | 633 | ||||||
Gains on sales of properties, net of tax | (1,725 | ) | — | |||||
FFO available to common shareholders and unitholders - basic | 72,388 | 60,477 | ||||||
Preferred dividends | 1,572 | 1,572 | ||||||
Interest and amortization on 6.00% Convertible Guaranteed Notes | 319 | 579 | ||||||
Amount allocated to participating securities | 104 | 153 | ||||||
FFO available to common shareholders and unitholders - diluted | 74,383 | 62,781 | ||||||
Debt satisfaction (gains) charges, net | (10,375 | ) | 3,304 | |||||
Other / Transaction costs | 468 | 372 | ||||||
Company FFO available to common shareholders and unitholders - diluted | 64,476 | 66,457 | ||||||
FUNDS AVAILABLE FOR DISTRIBUTION: (2) | ||||||||
Adjustments: | ||||||||
Straight-line rents | (5,309 | ) | (577 | ) | ||||
Lease incentives | 457 | 437 | ||||||
Amortization of below/above market leases | (621 | ) | 264 | |||||
Non-cash interest, net | (635 | ) | (1,152 | ) | ||||
Non-cash charges, net | 2,256 | 2,301 | ||||||
Tenant improvements | (1,081 | ) | (2,419 | ) | ||||
Lease costs | (1,420 | ) | (3,985 | ) | ||||
Company Funds Available for Distribution | $ | 58,123 | $ | 61,326 | ||||
Per Common Share and Unit Amounts | ||||||||
Basic: | ||||||||
FFO | $ | 0.31 | $ | 0.26 | ||||
Diluted: | ||||||||
FFO | $ | 0.30 | $ | 0.26 | ||||
Company FFO | $ | 0.26 | $ | 0.28 | ||||
Company FAD | $ | 0.24 | $ | 0.25 | ||||
Weighted-Average Common Shares: | ||||||||
Basic(3) | 236,378,649 | 231,037,595 | ||||||
Diluted | 244,045,197 | 240,619,535 |
11 |
1 Lexington believes that Funds from Operations (“FFO”), which is not a measure under generally accepted accounting principles (“GAAP”), is a widely recognized and appropriate measure of the performance of an equity REIT. 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 GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. 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.
The National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) defines FFO 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.” NAREIT clarified its computation of FFO to exclude impairment charges on depreciable real estate owned directly or indirectly. FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.
Lexington presents FFO available to common shareholders and unitholders - basic. Lexington also presents FFO available to common shareholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into Lexington's common shares, are converted at the beginning of the period. Lexington also presents Company FFO which adjusts FFO for certain items which Management believes are not indicative of the operating results of its real estate portfolio. Management believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate funds from operations in a similar fashion, Company FFO may not be comparable to similarly titled measures as reported by others. Company 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.
2 Company Funds Available for Distribution ("FAD") is calculated by making adjustments to Company FFO for (1) straight-line rent revenue, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) cash paid for tenant improvements, (5) cash paid for lease costs, (6) non-cash interest, net and (7) non-cash charges, net. Although FAD may not be comparable to that of other REITs, Lexington believes it provides a meaningful indication of its ability to fund cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.
3 Includes OP units.
# # #
12 |
LEXINGTON REALTY TRUST
2015 First Quarter Investment/Capital Recycling Summary
PROPERTY INVESTMENTS - LONG TERM LEASES ("LTL")
Tenant / Guarantor | Location | Property Type | Initial
Basis ($000) | Initial
Annualized Cash Rent ($000) | Initial
Cash Yield | Initial
GAAP Yield | Month
Closed | Lease
Expiration | ||||||||||||||||||||
1 | Faurecia USA Holdings, Inc. | Auburn Hills | MI | LTL - Office | $ | 40,025 | $ | 3,105 | 7.8 | % | 8.9 | % | March | 03/2029 | ||||||||||||||
2-3 | Spitzer Industries Inc. (1) | Houston and Brookshire | TX | LTL - Industrial | $ | 51,100 | $ | 3,577 | 7.0 | % | 8.5 | % | March | 03/2035 | ||||||||||||||
4 | Nissan North America, Inc. | Canton | MS | LTL - Industrial | $ | 89,300 | $ | 5,702 | 6.4 | % | 6.9 | % | March | 02/2027 | ||||||||||||||
5 | Littlestone Brotherhood LLC | Venice | FL | LTL - Land/Infrastructure | $ | 16,850 | $ | 1,264 | 7.5 | % | 11.3 | % | January | 01/2055 | ||||||||||||||
5 | TOTAL PROPERTY INVESTMENTS | $ | 197,275 | $ | 13,648 | 6.9 | % | 8.1 | % |
CAPITAL RECYCLING
PROPERTY DISPOSITIONS
Tenant | Location | Property
Type | Gross
Disposition Price ($000) | Annualized
NOI ($000) | Month
of Disposition | |||||||||||||
1 | Baker Hughes, Inc. (2) | Houston | TX | Office | $ | 4,950 | $ | 925 | March | |||||||||
2-3 | Vacant (3) | Issaquah | WA | Office | $ | 30,293 | $ | - | March | |||||||||
3 | TOTAL PROPERTY DISPOSITIONS | $ | 35,243 | $ | 925 |
Footnotes
(1) | Spitzer Industries, Inc. is the guarantor of two individual leases. Curtis Kelly, Inc. (Houston, TX) and Orizon Industries, Inc. (Brookshire, TX) are the tenants. |
(2) | Tenant lease expires 09/2015 |
(3) | Deed-in-lieu of foreclosure to fully satisfy a $30.3 million non-recourse mortgage. |
13 |
LEXINGTON REALTY TRUST
BUILD-TO-SUIT PROJECTS / FORWARD COMMITMENTS
3/31/2015
BUILD-TO-SUIT PROJECTED FUNDING SCHEDULE - LONG TERM LEASES (1)
Location | Sq. Ft | Asset Type | Lease
Term (Years) | Maximum Commitment/Estimated Completion Cost ($000) | Investment balance as of 3/31/15 ($000) | Estimated Cash Investment Next 12 Months ($000) | Estimated Completion Date | Estimated Initial Cash Yield | Estimated GAAP Yield | |||||||||||||||||||||||||||||||||||||||
Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | |||||||||||||||||||||||||||||||||||||||||||||
1 | Oak Creek | WI | 164,000 | LTL - Industrial | 20 | $ | 22,609 | $ | 16,362 | $ | 5,999 | $ | - | $ | - | $ | - | 2Q 15 | 8.3 | % | 9.3 | % | ||||||||||||||||||||||||||
2 | Thomson | GA | 208,000 | LTL - Industrial | 15 | $ | 10,245 | $ | 6,574 | $ | 3,500 | $ | - | $ | - | $ | - | 2Q 15 | 8.2 | % | 9.1 | % | ||||||||||||||||||||||||||
3 | Richmond | VA | 330,000 | LTL - Office | 15 | $ | 110,137 | $ | 73,617 | $ | 17,492 | $ | 17,492 | $ | - | $ | - | 3Q 15 | 8.0 | % | 8.6 | % | ||||||||||||||||||||||||||
4 | Lake Jackson | TX | 664,000 | LTL - Office | 20 | $ | 166,164 | $ | 29,018 | $ | 500 | $ | 500 | $ | 31,000 | $ | 31,000 | 4Q 16 | 7.3 | % | 8.9 | % | ||||||||||||||||||||||||||
4 | TOTAL CONSOLIDATED BUILD-TO-SUIT PROJECTS (2) | $ | 309,155 | $ | 125,571 | $ | 27,491 | $ | 17,992 | $ | 31,000 | $ | 31,000 | |||||||||||||||||||||||||||||||||||
1 | Houston (3) | TX | 274,000 | LTL - Retail/Specialty | 20 | $ | 86,491 | $ | 17,292 | $ | 9,155 | $ | 9,448 | $ | 9,448 | $ | 9,448 | 3Q 16 | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||||
1 | TOTAL NON-CONSOLIDATED BUILD-TO-SUIT PROJECTS | $ | 86,491 | $ | 17,292 | $ | 9,155 | $ | 9,448 | $ | 9,448 | $ | 9,448 | |||||||||||||||||||||||||||||||||||
5 | TOTAL BUILD-TO-SUIT PROJECTS | $ | 395,646 | $ | 142,863 | $ | 36,646 | $ | 27,440 | $ | 40,448 | $ | 40,448 |
FORWARD COMMITMENTS - LONG TERM LEASES (1)
Tenant | Location | Property Type | Sq. Ft. | Estimated
Acquisition Cost ($000) | Estimated Completion Date | Estimated
Initial Cash Yield | Estimated
GAAP Yield | Lease Term | ||||||||||||||||||
1 | Preferred Freezer Services of Richland LLC (5) | Richland, WA | LTL - Industrial | 456,412 | $ | 155,000 | 4Q 15 | 7.1 | % | 8.6 | % | 20 yrs | ||||||||||||||
2 | Chrysler Group LLC (4) | Detroit, MI | LTL - Industrial | 189,960 | $ | 29,680 | 1Q 16 | 7.4 | % | 7.4 | % | 20 yrs | ||||||||||||||
2 | TOTAL FORWARD COMMITMENTS | 646,372 | $ | 184,680 | 7.2 | % | 8.4 | % |
BUILD-TO-SUIT NOI (6) | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 1Q 2015 | ||||||||||||||||
Net operating income ($000) | $ | 1,156 | $ | 5,268 | $ | 11,920 | $ | 21,438 | $ | 6,331 |
Footnotes
(1) | Lexington can give no assurance that any of the build-to-suit projects or other potential investments that are under commitment or contract or in process will be completed. |
(2) | Investment balance in accordance with GAAP included in investment in real estate under construction. Aggregate equity invested is $129.8 million. |
(3) | Lexington has a 25% interest as of March 31,2015. Lexington may provide construction financing up to $56.7 million to the joint venture. Estimated cash investments for next 12 months are Lexington's estimated contributions / loan amounts. Lease contains annual CPI increases. |
(4) | Lexington funded a $2.5 million deposit. |
(5) | Lexington funded a $10.0 million letter of credit. |
(6) | Net operating income generated from completed build-to-suit projects funded by Lexington beginning in 2010. |
14 |
LEXINGTON REALTY TRUST
2015 First Quarter Financing Summary
DEBT RETIRED
Location | Tenant (Guarantor) | Property Type | Face
/ Satisfaction ($000) | 2015
Estimated Property NOI ($000) | Fixed Rate | Maturity
Date | ||||||||||||
Los Angeles, CA | Bank of America National Association / Sony Electronics Inc. | Office | $ | 9,824 | $ | 226 | 5.110 | % | 05/2015 | |||||||||
Harrisburg, PA | AT&T Services, Inc. | Office | $ | 7,808 | $ | 783 | 5.110 | % | 05/2015 | |||||||||
Houston, TX | Baker Hughes Incorporated / Schlumberger Holdings Corp. | LTL - Office | $ | 18,161 | $ | 7,406 | 6.250 | % | 09/2015 | |||||||||
Kalamazoo, MI | Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited) | Industrial | $ | 15,115 | $ | 2,027 | 5.411 | % | 05/2015 | |||||||||
Carrolton, TX | Motel 6 Operating LP | LTL - Office | $ | 18,803 | $ | 2,122 | 5.725 | % | 07/2015 | |||||||||
McDonough, GA | Georgia Power Company | LTL - Office | $ | 11,406 | $ | 1,306 | 5.212 | % | 06/2015 | |||||||||
Houston, TX (1) | Baker Hughes Incorporated | Office | $ | 2,203 | N/A | 8.036 | % | 09/2015 | ||||||||||
Issaquah, WA (2) | Vacant | Office | $ | 30,293 | N/A | 5.665 | % | 12/2014 | ||||||||||
6% Convertible Notes | N/A | N/A | $ | 600 | N/A | 6.000 | % | 01/2017 | ||||||||||
$ | 114,213 | $ | 13,870 |
PROPERTY LEVEL FINANCING
Location | Tenant or Guarantor | Property Type | Face ($000) | 2015
Estimated Property NOI ($000) | Fixed Rate | Maturity
Date | ||||||||||||
New York, NY | ZE-45 Ground Tenant LLC | LTL-Land/ Infrastructure | $ | 29,193 | $ | 1,505 | 4.100 | % | 01/2025 | |||||||||
Long Island City, NY | FedEx Corporation | LTL-Industrial | $ | 51,650 | $ | 4,770 | 3.500 | % | 03/2028 | |||||||||
$ | 80,843 | $ | 6,275 | 3.700 | % |
CORPORATE LEVEL BORROWINGS
Amount | Rate | Maturity Date | ||||||
Revolving Credit Facility | $ | 93,000 | LIBOR + 115 bp | 02/2017 |
Footnotes
(1) | Property sold 03/2015. |
(2) | Deed-in-lieu of foreclosure. |
15 |
LEXINGTON REALTY TRUST
2015 First Quarter Leasing Summary
LEASE EXTENSIONS
Tenant (Guarantor) | Location | Prior
Term | Lease
Expiration Date | Sq. Ft. | New
Cash Rent
Per Annum | Prior Cash
Rent Per
Annum ($000) | New
GAAP Rent Per Annum ($000)(1) | Prior
GAAP Rent Per Annum ($000) | ||||||||||||||||||||||
Office / Multi-Tenant Office | 2015 Extensions | |||||||||||||||||||||||||||||
1 | Sony Electronics, Inc. | Los Angeles | CA | 8/31/2015 | 8/31/2018 | 20,203 | $ | 182 | $ | 230 | $ | 182 | $ | 230 | ||||||||||||||||
2 | InVentiv Communications, Inc. | Westerville | OH | 9/30/2015 | 3/31/2026 | 97,000 | $ | 1,116 | $ | 1,111 | $ | 1,106 | $ | 1,254 | ||||||||||||||||
3 | VoiceStream PCS II Corporation / T-Mobile West Corporation | Mission | TX | 6/30/2015 | 6/30/2020 | 75,016 | $ | 938 | $ | 1,050 | $ | 989 | $ | 843 | ||||||||||||||||
4-6 | Various | Various | 2015 | 2016-2017 | 1,328 | $ | 36 | $ | 35 | $ | 36 | $ | 35 | |||||||||||||||||
2023 and later Extensions | ||||||||||||||||||||||||||||||
7 | Physicians Choice Laboratory Services, LLC | Rock Hill | SC | 3/31/2034 | 3/31/2039 | 104,497 | $ | 1,922 | $ | 1,726 | $ | 2,505 | $ | 2,202 | ||||||||||||||||
8 | TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC) | Irving | TX | 3/31/2023 | 2/28/2025 | 247,254 | $ | 2,972 | $ | 3,192 | $ | 2,804 | $ | 2,952 | ||||||||||||||||
8 | Total office lease extensions | 545,298 | $ | 7,166 | $ | 7,344 | $ | 7,622 | $ | 7,516 | ||||||||||||||||||||
Industrial | 2015 Extensions | |||||||||||||||||||||||||||||
1 | Bay Valley Foods, LLC | Plymouth | IN | 6/30/2015 | 12/31/2016 | 300,500 | $ | 826 | $ | 843 | $ | 785 | $ | 843 | ||||||||||||||||
1 | Total industrial lease extensions | 300,500 | $ | 826 | $ | 843 | $ | 785 | $ | 843 | ||||||||||||||||||||
` | ||||||||||||||||||||||||||||||
9 | TOTAL EXTENDED LEASES | 845,798 | $ | 7,992 | $ | 8,187 | $ | 8,407 | $ | 8,359 |
NEW LEASES
Tenant | Location | Lease Expiration Date | Sq. Ft. | New Cash Rent Per Annum ($000)(1) | New GAAP Rent Per Annum ($000)(1) | |||||||||||||||
Office/Multi-Tenant Office | ||||||||||||||||||||
1 | Rogue Wave Software, Inc. | Louisville | CO | 5/31/2023 | 20,000 | $ | 280 | $ | 280 | |||||||||||
2 | Miles & Stockbridge P.C. | Baltimore | MD | 3/31/2028 | 15,338 | $ | 492 | $ | 505 | |||||||||||
3 | Crump Life Insurance Services, Inc. | Harrisburg | PA | 10/31/2025 | 23,535 | $ | 440 | $ | 476 | |||||||||||
3 | Total office new leases | 58,873 | $ | 1,212 | $ | 1,261 | ||||||||||||||
3 | TOTAL NEW LEASES | 58,873 | $ | 1,212 | $ | 1,261 | ||||||||||||||
12 | TOTAL NEW AND EXTENDED LEASES | 904,671 | $ | 9,204 | $ | 9,668 |
16 |
LEXINGTON REALTY TRUST
2015 First Quarter Leasing Summary (Continued)
LEASE NON-RENEWALS (2)
Tenants (Guarantors) | Location | Lease Expiration Date | Sq. Ft. | 2014 Cash Rent ($000) | 2014 GAAP Rent ($000) | |||||||||||||||
Office | ||||||||||||||||||||
1 | Federal-Mogul Holdings Corp. | Southfield | MI | 01/2015 | 187,163 | $ | 1,158 | $ | 1,418 | |||||||||||
2 | MoneyGram Payment Systems, Inc. (3) | Lakewood | CO | 03/2015 | 68,165 | $ | 1,104 | $ | 1,091 | |||||||||||
2 | TOTAL LEASE NON-RENEWALS | 255,328 | $ | 2,262 | $ | 2,509 |
Footnotes
(1) | Assumes twelve months rent from the later of 4/1/15 or lease commencement/extension, excluding free rent periods as applicable. |
(2) | Excludes multi-tenant properties. |
(3) | Subsequent to March 31, 2015, the property was fully leased to a new tenant for 15 years at an estimated annual GAAP rent of $0.9 million commencing August 2015. |
17 |
LEXINGTON REALTY TRUST |
Portfolio Detail By Asset Class |
3/31/2015 |
( $000, except square footage) |
Asset Class | YE 2012 | YE 2013 | YE 2014 | 1Q 2015 | ||||||||||||
Land/Infrastructure | ||||||||||||||||
% of ABR (1) | 0.5 | % | 4.9 | % | 14.3 | % | 15.3 | % | ||||||||
Leased | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Wtd. Avg. Lease Term (2) | 19.1 | 72.7 | 73.1 | 67.2 | ||||||||||||
Mortgage Debt | $ | - | $ | 213,500 | $ | 213,475 | $ | 242,631 | ||||||||
% Investment Grade (1) | 0.0 | % | 0.2 | % | 0.4 | % | 0.4 | % | ||||||||
Cash Rent | $ | 1,219 | $ | 9,259 | $ | 22,717 | $ | 6,286 | ||||||||
Office | ||||||||||||||||
% of ABR (1) | 64.3 | % | 61.3 | % | 51.4 | % | 50.9 | % | ||||||||
Leased | 98.6 | % | 99.0 | % | 98.6 | % | 98.9 | % | ||||||||
Wtd. Avg. Lease Term (2) | 6.6 | 7.2 | 7.4 | 7.3 | ||||||||||||
Mortgage Debt | $ | 1,078,345 | $ | 692,460 | $ | 426,635 | $ | 347,812 | ||||||||
% Investment Grade (1) | 62.1 | % | 57.2 | % | 53.7 | % | 54.5 | % | ||||||||
Square Feet | 15,726,609 | 15,316,875 | 13,264,134 | 12,943,306 | ||||||||||||
Cash Rent | $ | 198,183 | $ | 214,774 | $ | 192,865 | $ | 54,349 | ||||||||
Industrial | ||||||||||||||||
% of ABR (1) | 22.9 | % | 23.2 | % | 23.0 | % | 24.0 | % | ||||||||
Leased | 99.6 | % | 99.8 | % | 99.7 | % | 99.8 | % | ||||||||
Wtd. Avg. Lease Term (2) | 7.5 | 7.2 | 7.9 | 10.1 | ||||||||||||
Mortgage Debt | $ | 221,055 | $ | 206,209 | $ | 177,951 | $ | 211,490 | ||||||||
% Investment Grade (1) | 23.1 | % | 34.1 | % | 29.3 | % | 28.8 | % | ||||||||
Square Feet | 21,317,359 | 21,473,994 | 22,612,691 | 24,816,313 | ||||||||||||
Cash Rent | $ | 70,600 | $ | 84,039 | $ | 89,991 | $ | 25,204 | ||||||||
Multi-Tenant | ||||||||||||||||
% of ABR (1) | 9.0 | % | 7.9 | % | 8.7 | % | 6.3 | % | ||||||||
Leased | 67.4 | % | 66.4 | % | 53.9 | % | 53.2 | % | ||||||||
Wtd. Avg. Lease Term (2) | 7.1 | 7.0 | 6.9 | 6.7 | ||||||||||||
Mortgage Debt | $ | 102,582 | $ | 71,754 | $ | 116,763 | $ | 86,352 | ||||||||
% Investment Grade (1) | 33.2 | % | 34.5 | % | 19.3 | % | 22.9 | % | ||||||||
Square Feet | 2,396,631 | 2,259,189 | 2,414,889 | 2,469,572 | ||||||||||||
Cash Rent | $ | 25,169 | $ | 27,941 | $ | 34,458 | $ | 6,176 | ||||||||
Retail/Specialty | ||||||||||||||||
% of ABR (1) | 3.3 | % | 2.7 | % | 2.6 | % | 3.5 | % | ||||||||
Leased | 99.3 | % | 98.5 | % | 94.3 | % | 97.9 | % | ||||||||
Wtd. Avg. Lease Term (2) | 8.0 | 7.2 | 9.1 | 9.9 | ||||||||||||
Mortgage Debt | $ | 13,979 | $ | 13,566 | $ | 13,170 | $ | 13,043 | ||||||||
% Investment Grade (1) | 22.0 | % | 18.7 | % | 22.4 | % | 21.7 | % | ||||||||
Square Feet | 1,755,608 | 1,489,267 | 1,447,724 | 1,395,517 | ||||||||||||
Cash Rent | $ | 8,186 | $ | 7,947 | $ | 8,948 | $ | 1,983 | ||||||||
Loans Receivable | $ | 72,540 | $ | 99,443 | $ | 105,635 | $ | 105,827 | ||||||||
Construction in progress (3) | $ | 71,634 | $ | 78,656 | $ | 121,184 | $ | 145,304 |
Footnotes
(1) | Percentage of GAAP base rent. |
(2) | Cash basis. |
(3) | Includes development classified as real estate under construction on a consolidated basis. |
18 |
LEXINGTON REALTY TRUST
Components of Net Asset Value
3/31/2015
($000)
The purpose of providing the following information is to enable readers to derive their own estimate of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation.
Consolidated properties quarterly cash net operating income (NOI) (1) | ||||
Land/ Infrastructure | $ | 6,333 | ||
Office | 46,073 | |||
Industrial | 25,838 | |||
Multi-Tenant | 3,604 | |||
Retail/Specialty | 2,288 | |||
Total Net Operating Income | $ | 84,136 | ||
Lexington's share of non-consolidated quarterly NOI (1) | ||||
Land/Infrastructure | $ | 67 | ||
Office | 500 | |||
Retail/Specialty | 303 | |||
$ | 870 | |||
Other income | ||||
Advisory fees | $ | 146 | ||
In service assets not fairly valued by capitalized NOI method (1) | ||||
Wholly-owned assets | $ | 97,972 | ||
Add other assets: | ||||
Loans receivable | $ | 105,827 | ||
Development investment at cost incurred | 155,475 | |||
Cash and cash equivalents | 54,821 | |||
Restricted cash | 17,290 | |||
Accounts receivable, net | 9,692 | |||
Other assets | 24,240 | |||
Total other assets | $ | 367,345 | ||
Liabilities: | ||||
Corporate level debt | $ | 1,240,015 | ||
Mortgages and notes payable | 901,328 | |||
Dividends payable | 43,202 | |||
Accounts payable, accrued expenses and other liabilities | 69,772 | |||
Preferred stock, at liquidation value | 96,770 | |||
Lexington's share of non-consolidated mortgages | 14,152 | |||
Total deductions | $ | 2,365,239 | ||
Common shares & OP units at 3/31/2015 | 238,672,395 |
Footnotes
(1) | Quarterly 2015 Cash NOI for the existing property portfolio excludes straight-line income, other GAAP adjustments, minority interests' share of NOI and NOI related to assets undervalued by a capitalized NOI method. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70%. For assets in this category an NOI capitalization approach is not appropriate and accordingly the company's net book value has been used. NOI has been adjusted for acquisitions, divestitures, and changes in occupancy during the quarter. |
19 |
LEXINGTON REALTY TRUST
Other Revenue Data
3/31/2015
($000)
Other Revenue Data
GAAP Base Rent | ||||||||||||
Asset Class | Three months ended | |||||||||||
3/31/15 (1) | 3/31/15 Percentage | 3/31/14 Percentage | ||||||||||
Long-Term Leases (2) | $ | 42,180 | 42.2 | % | 40.2 | % | ||||||
Office | 35,736 | 35.7 | % | 37.9 | % | |||||||
Industrial | 13,218 | 13.2 | % | 12.7 | % | |||||||
Multi-tenant | 6,322 | 6.3 | % | 7.3 | % | |||||||
Retail/Specialty | 2,554 | 2.6 | % | 1.9 | % | |||||||
$ | 100,010 | 100.0 | % | 100.0 | % |
GAAP Base Rent | ||||||||||||
Long-Term Leases (2) | Three months ended | |||||||||||
3/31/15 (1) | 3/31/15 Percentage | 3/31/14 Percentage | ||||||||||
Land / Infrastructure | $ | 15,269 | 36.2 | % | 32.8 | % | ||||||
Office | 15,199 | 36.0 | % | 43.6 | % | |||||||
Industrial | 10,747 | 25.5 | % | 21.9 | % | |||||||
Retail/Specialty | 965 | 2.3 | % | 1.7 | % | |||||||
$ | 42,180 | 100.0 | % | 100.0 | % |
GAAP Base Rent | ||||||||||||
Asset Class (3) | Three months ended | |||||||||||
3/31/15 (1) | 3/31/15 Percentage | 3/31/14 Percentage | ||||||||||
Land/ Infrastructure | $ | 15,269 | 15.3 | % | 13.2 | % | ||||||
Office | 50,935 | 50.9 | % | 55.5 | % | |||||||
Industrial | 23,965 | 24.0 | % | 21.5 | % | |||||||
Multi-Tenant | 6,322 | 6.3 | % | 7.3 | % | |||||||
Retail/Specialty | 3,519 | 3.5 | % | 2.5 | % | |||||||
$ | 100,010 | 100.0 | % | 100.0 | % |
GAAP Base Rent | ||||||||||||
Credit Ratings (4) | Three months ended | |||||||||||
3/31/15 (1) | 3/31/15 Percentage | 3/31/14 Percentage | ||||||||||
Investment Grade | $ | 36,936 | 36.9 | % | 40.2 | % | ||||||
Non-Investment Grade | 13,942 | 14.0 | % | 11.7 | % | |||||||
Unrated | 49,132 | 49.1 | % | 48.1 | % | |||||||
$ | 100,010 | 100.0 | % | 100.0 | % |
Footnotes
(1) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated properties owned as of 3/31/2015. |
(2) | Long-term leases are defined as leases having a term of ten years or longer. |
(3) | Long-term leases included and reclassified by property type. |
(4) | Credit ratings are based upon either tenant, guarantor or parent. Generally, multi-tenant assets are included in unrated. |
20 |
LEXINGTON REALTY TRUST |
Other Revenue Data (Continued) |
3/31/2015 |
($000) |
Weighted-Average Lease Term - Cash Basis | As of 3/31/15 | As of 3/31/14 | ||
12.4 years | 11.1 years |
Base Rent Estimates for Current Assets
Year | Cash (1) | GAAP (1) | Projected Straight- line / GAAP Rent Adjustment | |||||||||
2015-remaining | $ | 259,738 | $ | 300,130 | $ | (40,392 | ) | |||||
2016 | $ | 344,208 | $ | 384,327 | $ | (40,119 | ) |
Same-Store NOI (2)
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Total Base Rent | $ | 89,431 | $ | 92,538 | ||||
Tenant Reimbursements | 8,358 | 7,638 | ||||||
Property Operating Expenses | (15,983 | ) | (15,263 | ) | ||||
Same-Store NOI | $ | 81,806 | $ | 84,913 | ||||
Change in Same-Store NOI | (3.7 | )% |
Footnotes
(1) | Amounts assume (1) lease terms for non-cancellable periods only and (2) no new or renegotiated leases are entered into after 3/31/2015. |
(2) | NOI is on a consolidated cash basis. |
21 |
LEXINGTON REALTY TRUST
Top 20 Markets
3/31/2015
Core Based Statistical Area (2) | Percent of GAAP Base Rent as of 3/31/15 (1) | |||||
1 | New York-Northern New Jersey-Long Island, NY-NJ-PA | 15.7 | % | |||
2 | Dallas-Fort Worth-Arlington, TX | 6.5 | % | |||
3 | Houston-Sugar Land-Baytown, TX | 5.5 | % | |||
4 | Baltimore-Towson, MD | 4.1 | % | |||
5 | Memphis, TN-MS-AR | 4.0 | % | |||
6 | Kansas City, MO-KS | 3.7 | % | |||
7 | Phoenix-Mesa-Scottsdale, AZ | 3.7 | % | |||
8 | Orlando-Kissimmee, FL | 3.6 | % | |||
9 | Boston-Cambridge-Quincy, MA-NH | 2.9 | % | |||
10 | Denver-Aurora, CO | 2.3 | % | |||
11 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 2.0 | % | |||
12 | Columbus, OH | 1.9 | % | |||
13 | Cincinnati-Middletown, OH-KY-IN | 1.9 | % | |||
14 | Detroit-Warren-Livonia, MI | 1.8 | % | |||
15 | Charlotte-Gastonia-Rock Hill, NC-SC | 1.8 | % | |||
16 | Las Vegas-Paradise, NV | 1.7 | % | |||
17 | San Jose-Sunnyvale-Santa Clara, CA | 1.7 | % | |||
18 | Indianapolis-Carmel, IN | 1.5 | % | |||
19 | Chicago-Naperville-Joliet, IL-IN-WI | 1.5 | % | |||
20 | Atlanta-Sandy Springs-Marietta, GA | 1.4 | % | |||
Total Top 20 Markets (3) | 69.1 | % |
Footnotes
(1) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated properties owned as of 3/31/2015. |
(2) | A Core Based Statistical Area is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000. These standards are used to replace the definitions of metropolitan areas that were defined in 1990. |
(3) | Total shown may differ from detailed amounts due to rounding. |
22 |
LEXINGTON REALTY TRUST |
Top 20 Markets - Single Tenant Office Portfolio |
3/31/2015 |
Core Based Statistical Area (2) | Percent of GAAP Base Rent as of 3/31/15 (1) | |||||
1 | Dallas-Fort Worth-Arlington, TX | 11.1 | % | |||
2 | Kansas City, MO-KS | 7.3 | % | |||
3 | Orlando-Kissimmee, FL | 6.7 | % | |||
4 | Phoenix-Mesa-Scottsdale, AZ | 6.0 | % | |||
5 | Houston-Sugar Land-Baytown, TX | 5.6 | % | |||
6 | Boston-Cambridge-Quincy, MA-NH | 4.5 | % | |||
7 | Denver-Aurora, CO | 4.0 | % | |||
8 | Memphis, TN-MS-AR | 3.7 | % | |||
9 | Charlotte-Gastonia-Rock Hill, NC-SC | 3.5 | % | |||
10 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 3.5 | % | |||
11 | San Jose-Sunnyvale-Santa Clara, CA | 3.3 | % | |||
12 | New York-Northern New Jersey-Long Island, NY-NJ-PA | 3.1 | % | |||
13 | Indianapolis-Carmel, IN | 2.9 | % | |||
14 | Chicago-Naperville-Joliet, IL-IN-WI | 2.9 | % | |||
15 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 2.4 | % | |||
16 | Columbus, IN | 2.2 | % | |||
17 | Omaha-Council Bluffs, NE-IA | 2.2 | % | |||
18 | Las Vegas-Paradise, NV | 2.1 | % | |||
19 | Columbus, OH | 1.8 | % | |||
20 | Scranton-Wilkes-Barre, PA | 1.2 | % | |||
Total Top 20 Markets - Single Tenant Office Portfolio (3) | 80.0 | % |
Footnotes
(1) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated office properties owned as of 3/31/2015. |
Includes | long-term office properties. |
(2) | A Core Based Statistical Area is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000. These standards are used to replace the definitions of metropolitan areas that were defined in 1990. |
(3) | Total shown may differ from detailed amounts due to rounding. |
23 |
LEXINGTON REALTY TRUST |
Tenant Industry Diversification |
3/31/2015 |
Industry Category | Percent of GAAP Base Rent as of 3/31/2015 (1) (2) | |||
Service | 22.7 | % | ||
Technology | 10.1 | % | ||
Finance/Insurance | 8.7 | % | ||
Automotive | 8.6 | % | ||
Transportation/Logistics | 8.0 | % | ||
Energy | 6.8 | % | ||
Healthcare | 6.1 | % | ||
Consumer Products | 5.6 | % | ||
Food | 4.1 | % | ||
Aerospace/Defense | 3.5 | % | ||
Telecommunications | 3.5 | % | ||
Construction/Materials | 3.0 | % | ||
Printing/Production | 2.2 | % | ||
Education | 2.0 | % | ||
Apparel | 1.5 | % | ||
Retail Department | 1.2 | % | ||
Retail Specialty | 1.1 | % | ||
Media/Advertising | 0.7 | % | ||
Real Estate | 0.6 | % | ||
Retail Electronics | 0.1 | % | ||
100.0 | % |
Footnotes
(1) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated properties owned as of 3/31/2015. |
(2) | Total shown may differ from detailed amounts due to rounding. |
24 |
LEXINGTON REALTY TRUST
Top 10 Tenants or Guarantors
3/31/2015
Top 10 Tenants or Guarantors - Cash Basis
Tenants or Guarantors | Number of Leases | Sq. Ft. Leased | Sq. Ft. Leased as a Percent of Consolidated Portfolio (2) | Cash Base Rent as of 3/31/2015 ($000) (1) | Percent of Cash Base Rent as of 3/31/2015 ($000) (1) (2) | |||||||||||||
Baker Hughes, Inc. (4) | 1 | 554,385 | 1.3 | % | $ | 5,613 | 6.0 | % | ||||||||||
Invensys Systems, Inc. (Siebe, Inc.) (4) | 1 | 164,689 | 0.4 | % | $ | 3,270 | 3.5 | % | ||||||||||
FedEx Corporation / Federal Express Corporation | 3 | 787,829 | 1.9 | % | $ | 3,142 | 3.3 | % | ||||||||||
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 7 | 2,053,359 | 4.9 | % | $ | 2,554 | 2.7 | % | ||||||||||
United States of America | 3 | 398,214 | 1.0 | % | $ | 2,279 | 2.4 | % | ||||||||||
Heidelberg Americas, Inc. (Heidelberg Druckmaschinen AG) (4) | 1 | 500,500 | 1.2 | % | $ | 2,105 | 2.2 | % | ||||||||||
Swiss Re America Holding Corporation / Westport Insurance Corporation | 2 | 476,123 | 1.1 | % | $ | 1,879 | 2.0 | % | ||||||||||
Xerox Corporation | 1 | 202,000 | 0.5 | % | $ | 1,767 | 1.9 | % | ||||||||||
Michelin North America, Inc. | 3 | 2,503,916 | 6.0 | % | $ | 1,759 | 1.9 | % | ||||||||||
T-Mobile USA, Inc. / T-Mobile West Corporation | 5 | 386,078 | 0.9 | % | $ | 1,738 | 1.8 | % | ||||||||||
27 | 8,027,093 | 19.2 | % | $ | 26,106 | 27.8 | % |
Top 10 Tenants or Guarantors - GAAP Basis
Tenants or Guarantors | Number of Leases | Sq. Ft. Leased | Sq. Ft. Leased as a Percent of Consolidated Portfolio (2) | GAAP Base Rent as of 3/31/2015 ($000) (3) | Percent of GAAP Base Rent as of 3/31/2015 ($000) (3) (2) | |||||||||||||
LG-39 Ground Tenant LLC | 1 | 0 | 0.0 | % | $ | 4,343 | 4.3 | % | ||||||||||
FC-Canal Ground Tenant LLC | 1 | 0 | 0.0 | % | $ | 3,722 | 3.7 | % | ||||||||||
AL-Stone Ground Tenant LLC | 1 | 0 | 0.0 | % | $ | 3,397 | 3.4 | % | ||||||||||
FedEx Corporation / Federal Express Corporation | 3 | 787,829 | 1.9 | % | $ | 3,224 | 3.2 | % | ||||||||||
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 7 | 2,053,359 | 4.9 | % | $ | 2,484 | 2.5 | % | ||||||||||
United States of America | 3 | 398,214 | 1.0 | % | $ | 2,377 | 2.4 | % | ||||||||||
Swiss Re America Holding Corporation / Westport Insurance Corporation | 2 | 476,123 | 1.1 | % | $ | 1,887 | 1.9 | % | ||||||||||
Invensys Systems, Inc. (Siebe, Inc.) | 1 | 164,689 | 0.4 | % | $ | 1,862 | 1.9 | % | ||||||||||
Baker Hughes, Inc. | 1 | 554,385 | 1.3 | % | $ | 1,844 | 1.8 | % | ||||||||||
Michelin North America, Inc. | 3 | 2,503,916 | 6.0 | % | $ | 1,770 | 1.8 | % | ||||||||||
23 | 6,938,515 | 16.6 | % | $ | 26,910 | 26.9 | % |
Footnotes
(1) | Three months ended 3/31/2015 Cash base rent recognized for consolidated properties owned as of 3/31/2015. |
(2) | Total shown may differ from detailed amounts due to rounding. |
(3) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated properties owned as of 3/31/2015. |
(4) | Tenant pays rent semi-annually in uneven amounts. |
25 |
LEXINGTON REALTY TRUST
Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis
3/31/2015
Year | Number of Leases Expiring | GAAP Base Rent as of 3/31/2015 ($000) | Percent of GAAP Base Rent as of 3/31/2015 | Percent of GAAP Base Rent as of 3/31/2014 | ||||||||||
2015 - remaining | 3 | $ | 2,045 | 2.2 | % | 4.3 | % | |||||||
2016 | 15 | $ | 4,728 | 5.1 | % | 6.1 | % | |||||||
2017 | 17 | $ | 5,118 | 5.5 | % | 6.7 | % | |||||||
2018 | 30 | $ | 6,394 | 6.9 | % | 6.8 | % | |||||||
2019 | 20 | $ | 7,330 | 7.9 | % | 7.3 | % | |||||||
2020 | 18 | $ | 7,017 | 7.6 | % | 5.2 | % | |||||||
2021 | 10 | $ | 5,273 | 5.7 | % | 5.5 | % | |||||||
2022 | 8 | $ | 3,171 | 3.4 | % | 3.3 | % | |||||||
2023 | 6 | $ | 3,546 | 3.8 | % | 6.6 | % | |||||||
2024 | 9 | $ | 3,405 | 3.7 | % | 4.6 | % | |||||||
2025 - Q1 | 5 | $ | 2,113 | 2.3 | % | 1.2 | % | |||||||
Thereafter | 65 | $ | 42,180 | 45.7 | % | 38.1 | % | |||||||
Total (1) | 206 | $ | 92,320 | 100.0 | % |
Footnotes
(1) | Total shown may differ from detailed amounts due to rounding and does not include multi-tenant properties and parking operations. |
26 |
LEXINGTON REALTY TRUST
Lease Rollover Schedule - Consolidated Properties GAAP Basis
3/31/2015
Year | Number of Leases Expiring | GAAP Base Rent as of 3/31/2015 ($000) | Percent of GAAP Base Rent as of 3/31/2015 | |||||||||
2015 - remaining | 40 | $ | 2,346 | 2.4 | % | |||||||
2016 | 32 | $ | 5,177 | 5.3 | % | |||||||
2017 | 20 | $ | 5,139 | 5.3 | % | |||||||
2018 | 34 | $ | 6,939 | 7.1 | % | |||||||
2019 | 30 | $ | 8,200 | 8.4 | % | |||||||
2020 | 20 | $ | 7,100 | 7.3 | % | |||||||
2021 | 13 | $ | 6,798 | 7.0 | % | |||||||
2022 | 9 | $ | 3,171 | 3.2 | % | |||||||
2023 | 7 | $ | 3,546 | 3.6 | % | |||||||
2024 | 11 | $ | 3,462 | 3.5 | % | |||||||
2025 - Q1 | 5 | $ | 2,113 | 2.2 | % | |||||||
Thereafter | 67 | $ | 43,815 | 44.8 | % | |||||||
Total (1) | 288 | $ | 97,806 | 100.0 | % |
Footnotes
(1) | Total shown may differ from detailed amounts due to rounding and does not include parking operations. |
27 |
LEXINGTON REALTY TRUST
Long-Term Leases- Consolidated Portfolio - 3/31/2015
Year
of Lease | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Property Type | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | ||||||||||||||||||||
LONG-TERM LEASE PROPERTIES | ||||||||||||||||||||||||||||||||
2025 | 6/30/2025 | 10000 Business Blvd. | Dry Ridge | KY | — | Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited) | Industrial | 336,350 | 336 | 336 | 2,094 | 07/2015 | ||||||||||||||||||||
2500 Patrick Henry Pkwy. | McDonough | GA | — | Georgia Power Company | Office | 111,911 | 325 | 309 | - | - | ||||||||||||||||||||||
301 Bill Bryan Rd. | Hopkinsville | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | Industrial | 424,904 | 422 | 422 | 6,827 | 07/2015 | ||||||||||||||||||||||
4010 Airpark Dr. | Owensboro | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | Industrial | 211,598 | 302 | 302 | 1,722 | 07/2015 | ||||||||||||||||||||||
730 North Black Branch Rd. | Elizabethtown | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | Industrial | 167,770 | 134 | 134 | 2,195 | 07/2015 | ||||||||||||||||||||||
750 North Black Branch Rd. | Elizabethtown | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | Industrial | 539,592 | 709 | 709 | 11,685 | 07/2015 | ||||||||||||||||||||||
7/14/2025 | 590 Ecology Ln. | Chester | SC | — | Boral Stone Products LLC (Boral Limited) | Industrial | 420,597 | 555 | 407 | 9,226 | 08/2025 | |||||||||||||||||||||
7/31/2025 | 7005 Cochran Rd. | Glenwillow | OH | — | Royal Appliance Mfg. Co. | Industrial | 458,000 | 510 | 563 | 15,533 | 09/2016 | |||||||||||||||||||||
9/30/2025 | 10001 Richmond Ave. | Houston | TX | 18 | Baker Hughes Incorporated / Schlumberger Holdings Corp. | Office | 554,385 | 5,613 | 1,844 | - | - | |||||||||||||||||||||
10/31/2025 | 6277 Sea Harbor Dr. | Orlando | FL | 19 | Wyndham Vacation Ownership, Inc. (Wyndham Worldwide Corporation) / Aramark Corporation | Office | 357,166 | 1,924 | 1,791 | - | - | |||||||||||||||||||||
11/30/2025 | 11707 Miracle Hills Dr. | Omaha | NE | — | Infocrossing, Inc. | Office | 85,200 | 292 | 292 | 7,730 | 04/2016 | |||||||||||||||||||||
12/31/2025 | 1700 47th Ave North | Minneapolis | MN | — | Owens Corning Roofing and Asphalt, LLC | Industrial | 18,620 | 137 | 137 | - | - | |||||||||||||||||||||
2005 East Technology Cir. | Tempe | AZ | — | Infocrossing, Inc. | Office | 60,000 | 282 | 282 | 7,300 | 04/2016 | ||||||||||||||||||||||
4001 International Pkwy. | Carrollton | TX | — | Motel 6 Operating, LP | Office | 138,443 | 517 | 557 | - | - | ||||||||||||||||||||||
2026 | 3/30/2026 | 121 Technology Dr. | Durham | NH | 15 | Heidelberg Americas, Inc. (Heidelberger Druckmaschinen AG) / Goss International Americas, Inc. (Goss International Corporation) | Industrial | 500,500 | 2,105 | 634 | - | - | ||||||||||||||||||||
3/31/2026 | 500 Olde Worthington Rd. | Westerville | OH | — | InVentiv Communications, Inc. | Office | 97,000 | 278 | 314 | - | - | |||||||||||||||||||||
459 Wingo Rd. | Byhalia | MS | — | Asics America Corporation (Asics Corporation) | Industrial | 513,734 | 674 | 734 | 15,000 | 06/2016 | ||||||||||||||||||||||
633 Garrett Pkwy. | Lewisburg | TN | — | Calsonic Kansei North America, Inc. | Industrial | 310,000 | 299 | 322 | - | - | ||||||||||||||||||||||
6/30/2026 | 333 Mt. Hope Ave. | Rockaway | NJ | — | Atlantic Health System, Inc. | Office | 60,258 | - | 188 | - | - | |||||||||||||||||||||
351 Chamber Dr. | Chillicothe | OH | — | The Kitchen Collection, Inc. | Industrial | 475,218 | 265 | 290 | - | - | ||||||||||||||||||||||
8/31/2026 | 25500 State Hwy. 249 | Tomball | TX | — | Parkway Chevrolet, Inc. (Raymond Durdin & Jean W. Durdin) | Specialty | 77,076 | 357 | 351 | 8,663 | 11/2016 | |||||||||||||||||||||
9/30/2026 | 900 Industrial Blvd. | Crossville | TN | — | Dana Commercial Vehicle Products, LLC | Industrial | 222,200 | 144 | 144 | - | - | |||||||||||||||||||||
10/31/2026 | 5001 Greenwood Rd. | Shreveport | LA | — | Libbey Glass Inc. (Libbey Inc.) | Industrial | 646,000 | 525 | 541 | 19,000 | 07/2017 | |||||||||||||||||||||
11/30/2026 | 250 Rittenhouse Cir. | Bristol | PA | — | Northtec LLC (The Estée Lauder Companies Inc.) | Industrial | 241,977 | 273 | 287 | - | - | |||||||||||||||||||||
500 Kinetic Dr. | Huntington | WV | — | AMZN WVCS LLC (Amazon.com, Inc.) | Office | 68,693 | 267 | 317 | 6,500 | 02/2017 | ||||||||||||||||||||||
12/29/2026 | 5500 New Albany Rd. | Columbus | OH | — | Evans, Mechwart, Hambleton & Tilton, Inc. | Office | 104,807 | 403 | 434 | - | - | |||||||||||||||||||||
2027 | 2/28/2027 | 554 Nissan Parkway | Canton | MS | — | Nissan North America, Inc. | Industrial | 1,466,000 | 15 | 17 | - | - | ||||||||||||||||||||
4/30/2027 | 1315 West Century Dr. | Louisville | CO | 5 | Global Healthcare Exchange, Inc. (Global Healthcare Exchange, LLC) | Office | 106,877 | 288 | 314 | - | - | |||||||||||||||||||||
2424 Alpine Rd. | Eau Claire | WI | — | Silver Spring Foods, Inc. (Huntsinger Farms, Inc.) | Industrial | 159,000 | 267 | 251 | - | - | ||||||||||||||||||||||
6/30/2027 | 3902 Gene Field Rd | St. Joseph | MO | — | Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation) | Office | 98,849 | 446 | 498 | - | - | |||||||||||||||||||||
7/6/2027 | 2221 Schrock Rd. | Columbus | OH | — | MS Consultants, Inc. | Office | 42,290 | 146 | 160 | - | - | |||||||||||||||||||||
8/7/2027 | 25 Lakeview Dr. | Jessup | PA | — | TMG Health, Inc. | Office | 150,000 | 497 | 625 | - | - | |||||||||||||||||||||
10/31/2027 | 11201 Renner Blvd. | Lenexa | KS | — | United States of America | Office | 169,585 | 1,397 | 1,526 | 37,894 | 11/2027 | |||||||||||||||||||||
11/30/2027 | 1700 Millrace Dr. | Eugene | OR | 17 | Oregon Research Institute / Educational Policy Improvement Center | Office | 80,011 | 419 | 519 | - | - | |||||||||||||||||||||
12/31/2027 | 10590 Hamilton Ave. | Cincinnati | OH | — | The Hillman Group, Inc. | Industrial | 264,598 | 195 | 203 | - | - | |||||||||||||||||||||
2028 | 3/31/2028 | 29-01-Borden Ave./29-10 Hunters Point Ave. | Long Island City | NY | — | FedEx Ground Package System, Inc. (FedEx Corporation) | Industrial | 140,330 | 1,193 | 1,284 | 50,967 | 03/2028 | ||||||||||||||||||||
4/30/2028 | 9655 Maroon Circle | Englewood | CO | — | TriZetto Corporation | Office | 166,912 | 859 | 961 | - | - | |||||||||||||||||||||
8/31/2028 | 9803 Edmonds Way | Edmonds | WA | — | Pudget Consumers Co-op d/b/a PCC Natural Markets | Retail | 35,459 | 162 | 162 | - | - | |||||||||||||||||||||
11/30/2028 | 832 N. Westover Blvd . | Albany | GA | — | Gander Mountain Company | Retail | 45,554 | 157 | 173 | - | - | |||||||||||||||||||||
2029 | 1/31/2029 | 6226 West Sahara Ave. | Las Vegas | NV | — | Nevada Power Company | Office | 282,000 | 772 | 1,063 | - | - | ||||||||||||||||||||
175 Holt Garrison Pkwy. | Danville | VA | — | Home Depot USA, Inc. | Land/Infrastructure | - | 65 | 54 | - | - | ||||||||||||||||||||||
3/31/2029 | 2800 High Meadow Circle | Auburn Hills | MI | — | Faurecia USA Holdings, Inc. | Industrial | 278,000 | 184 | 210 | - | - | |||||||||||||||||||||
11/24/2029 | 318 Pappy Dunn Blvd. | Anniston | AL | — | International Automotive Components Group North America, Inc. | Industrial | 276,782 | 393 | 435 | - | - | |||||||||||||||||||||
12/31/2029 | 3030 North 3rd St. | Phoenix | AZ | — | CopperPoint Mutual Insurance Company | Office | 252,400 | 1,004 | 1,211 | - | - | |||||||||||||||||||||
2030 | 4/7/2030 | 810 Gears Rd. | Houston | TX | — | United States of America | Office | 68,985 | - | - | - | - | ||||||||||||||||||||
2031 | 5/31/2031 | 671 Washburn Switch Rd. | Shelby | NC | — | Clearwater Paper Corporation | Industrial | 673,518 | 568 | 650 | - | - | ||||||||||||||||||||
2032 | 4/30/2032 | 13930 Pike Rd. | Missouri City | TX | — | Vulcan Construction Materials, LP (Vulcan Materials Company) | Land/Infrastructure | - | 455 | 531 | - | - | ||||||||||||||||||||
10/31/2032 | 143 Diamond Avenue | Parachute | CO | — | Encana Oil and Gas (USA) Inc. (Alenco Inc.) | Office | 49,024 | 254 | 321 | - | - |
28 |
LEXINGTON REALTY TRUST
Long-Term Leases- Consolidated Portfolio - 3/31/2015
Year
of Lease | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Property Type | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | ||||||||||||||||||||
LONG-TERM LEASE PROPERTIES | ||||||||||||||||||||||||||||||||
2033 | 10/31/2033 | 1001 Innovation Road | Rantoul | IL | — | Easton-Bell Sports, Inc. | Industrial | 813,126 | 869 | 1,037 | - | - | ||||||||||||||||||||
11/30/2033 | 1331 Capitol Ave. | Omaha | NE | — | The Gavilon Group, LLC | Office | 127,810 | 706 | 828 | - | - | |||||||||||||||||||||
12/31/2033 | 3000 Busch Lake Blvd. | Tampa | FL | — | BluePearl Holdings, LLC | Office | 17,000 | 122 | 122 | - | - | |||||||||||||||||||||
2910 Busch Lake Blvd. | Tampa | FL | — | BluePearl Holdings, LLC | Office | 2,500 | 14 | 14 | - | - | ||||||||||||||||||||||
2950 Busch Lake Blvd. | Tampa | FL | — | BluePearl Holdings, LLC | Office | 8,000 | 39 | 39 | - | - | ||||||||||||||||||||||
19311 SH 249 | Houston | TX | — | BluePearl Holdings, LLC | Office | 12,622 | 55 | 55 | - | - | ||||||||||||||||||||||
2034 | 9/30/2034 | 5625 North Sloan Ln. | North Las Vegas | NV | — | Nicholas and Co., Inc. | Industrial | 180,235 | 535 | 639 | - | - | ||||||||||||||||||||
2035 | 3/31/2035 | 7007 F.M. 362 | Brookshire | TX | — | Orizon Industries, Inc. (Spitzer Industries, Inc.) | Industrial | 262,095 | 22 | 26 | - | - | ||||||||||||||||||||
13863 Industrial Road | Houston | TX | — | Curtis Kelly, Inc. (Spitzer Industries, Inc.) | Industrial | 187,800 | 27 | 33 | - | - | ||||||||||||||||||||||
2038 | 3/31/2038 | 13901/14035 Industrial Rd. | Houston | TX | — | Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC) | Land/Infrastructure | 132,449 | 1,348 | 1,693 | - | - | ||||||||||||||||||||
2039 | 3/31/2039 | 854 Paragon Way | Rock Hill | SC | — | Physicians Choice Laboratory Services, LLC | Office | 104,497 | 457 | 615 | - | - | ||||||||||||||||||||
2043 | 2/28/2043 | 1237 W. Sherman Avenue | Vineland | NJ | - | HealthSouth Rehabilitation Hospital of South Jersey, LLC (HealthSouth Corporation) | Specialty | 39,287 | 279 | 279 | - | - | ||||||||||||||||||||
2055 | 1/31/2055 | 499 Derbyshire Drive | Venice | FL | — | Littlestone Brotherhood LLC | Land/Infrastructure | 31,180 | 248 | 374 | - | - | ||||||||||||||||||||
2112 | 10/31/2112 | 350 and 370-372 Canal St. | New York | NY | — | FC-Canal Ground Tenant LLC | Land/Infrastructure | - | 1,232 | 3,722 | 69,309 | 01/2027 | ||||||||||||||||||||
309-313 West 39th St. | New York | NY | — | LG-39 Ground Tenant LLC | Land/Infrastructure | - | 1,438 | 4,343 | 80,870 | 01/2027 | ||||||||||||||||||||||
8-12 Stone St. | New York | NY | — | AL-Stone Ground Tenant LLC | Land/Infrastructure | - | 1,125 | 3,397 | 63,259 | 01/2027 | ||||||||||||||||||||||
2113 | 10/31/2113 | 15 West 45th St. | New York | NY | — | ZE-45 Ground Tenant LLC | Land/Infrastructure | - | 375 | 1,155 | 29,193 | 01/2025 | ||||||||||||||||||||
N/A | Vacancy | 333 Mt. Hope Ave. | Rockaway | NJ | — | (Available for Lease) | Office | 32,068 | - | - | - | - | ||||||||||||||||||||
6277 Sea Harbor Dr. | Orlando | FL | — | (Available for Lease) | Office | 1,215 | - | - | - | - | ||||||||||||||||||||||
810 Gears Rd. | Houston | TX | — | (Available for Lease) | Office | 9,910 | - | - | - | - | ||||||||||||||||||||||
LONG TERM TOTAL/WEIGHTED AVERAGE | 99.7% Leased | 13,969,967 | $ | 36,275 | $ | 42,180 | $ | 444,967 |
29 |
LEXINGTON
REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2015
Year
of Lease | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||||||||||||
2015 | 6/30/2015 | 33 Commercial St. | Foxboro | MA | — | Invensys Systems, Inc. (Siebe, Inc.) | 164,689 | 3,270 | 1,862 | - | - | |||||||||||||||||||
2016 | 1/31/2016 | 1600 Eberhardt Rd. | Temple | TX | — | Nextel of Texas, Inc. (Nextel Finance Company) | 108,800 | 419 | 337 | 7,765 | 01/2016 | |||||||||||||||||||
4/30/2016 | 11511 Luna Rd. | Farmers Branch | TX | — | Haggar Clothing Co. (Texas Holding Clothing Corporation and Haggar Corp.) | 180,507 | 608 | 797 | 18,401 | 07/2016 | ||||||||||||||||||||
2000 Eastman Dr. | Milford | OH | — | Siemens Corporation | 221,215 | 622 | 580 | - | - | |||||||||||||||||||||
5/31/2016 | 1200 Jupiter Rd. | Garland | TX | — | Raytheon Company | 278,759 | 377 | 433 | - | - | ||||||||||||||||||||
7/14/2016 | 1400 Northeast McWilliams Rd. | Bremerton | WA | — | Nextel West Corporation (Nextel Finance Company) | 60,200 | 304 | 304 | 5,774 | 04/2016 | ||||||||||||||||||||
10/31/2016 | 104 & 110 South Front St. | Memphis | TN | — | Hnedak Bobo Group, Inc. | 37,229 | 130 | 125 | 3,605 | 01/2017 | ||||||||||||||||||||
2017 | 3/31/2017 | 1701 Market St. | Philadelphia | PA | 4 | Car-Tel Communications, Inc. | 1,220 | 14 | 14 | - | - | |||||||||||||||||||
9/30/2017 | 9201 East Dry Creek Rd. | Centennial | CO | — | Arrow Electronics, Inc. | 128,500 | 869 | 758 | - | - | ||||||||||||||||||||
10/31/2017 | 4455 American Way | Baton Rouge | LA | — | New Cingular Wireless PCS, LLC | 70,100 | 264 | 265 | - | - | ||||||||||||||||||||
5201 West Barraque St. | Pine Bluff | AR | — | Entergy Services, Inc. | 27,189 | 48 | 67 | - | - | |||||||||||||||||||||
11/30/2017 | 6200 Northwest Pkwy. | San Antonio | TX | — | United HealthCare Services, Inc. / PacifiCare Healthsystems, LLC | 142,500 | 492 | 467 | - | - | ||||||||||||||||||||
2018 | 1/31/2018 | 820 Gears Rd. | Houston | TX | — | Ricoh Americas Corporation | 78,895 | 263 | 289 | - | - | |||||||||||||||||||
2/28/2018 | 850-950 Warrenville Rd. | Lisle | IL | — | Flexible Steel Lacing Company, d/b/a Flexco, Inc. | 7,535 | 34 | 45 | - | - | ||||||||||||||||||||
4/30/2018 | Sandlake Rd./Kirkman Rd. | Orlando | FL | — | Lockheed Martin Corporation | 184,000 | 240 | 467 | - | - | ||||||||||||||||||||
5/30/2018 | 13651 McLearen Rd. | Herndon | VA | — | United States of America | 159,644 | 882 | 851 | - | - | ||||||||||||||||||||
5/31/2018 | 8900 Freeport Pkwy. | Irving | TX | — | Pacific Union Financial, LLC. | 43,396 | 220 | 196 | - | - | ||||||||||||||||||||
6/30/2018 | 100 Barnes Rd. | Wallingford | CT | — | 3M Company | 44,400 | 126 | 126 | - | - | ||||||||||||||||||||
420 Riverport Rd. | Kingsport | TN | — | Kingsport Power Company | 42,770 | 78 | 32 | - | - | |||||||||||||||||||||
8/31/2018 | 2706 Media Center Dr. | Los Angeles | CA | — | Sony Electronics Inc. | 20,203 | 58 | 58 | - | - | ||||||||||||||||||||
3500 North Loop Rd. | McDonough | GA | — | Litton Loan Servicing LP | 62,218 | 324 | 229 | - | - | |||||||||||||||||||||
9/30/2018 | 1701 Market St. | Philadelphia | PA | 4 | CBC Restaurant Corp. | 8,070 | 56 | 53 | - | - | ||||||||||||||||||||
10/31/2018 | 3943 Denny Ave. | Pascagoula | MS | — | Huntington Ingalls Incorporated | 94,841 | 148 | 148 | - | - | ||||||||||||||||||||
12/22/2018 | 5200 Metcalf Ave. | Overland Park | KS | — | Swiss Re America Holding Corporation / Westport Insurance Corporation | 320,198 | 1,282 | 1,290 | 34,579 | 05/2019 | ||||||||||||||||||||
12/31/2018 | 2550 Interstate Dr. | Harrisburg | PA | 20 | AT&T Services, Inc. | 85,301 | 293 | 316 | - | - | ||||||||||||||||||||
2019 | 1/31/2019 | 2999 Southwest 6th St. | Redmond | OR | — | VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.) | 77,484 | 415 | 367 | - | - | |||||||||||||||||||
4/1/2019 | 9201 Stateline Rd. | Kansas City | MO | — | Swiss Re America Holding Corporation / Westport Insurance Corporation | 155,925 | 597 | 597 | 16,486 | 05/2019 | ||||||||||||||||||||
6/19/2019 | 3965 Airways Blvd. | Memphis | TN | — | Federal Express Corporation | 521,286 | 1,743 | 1,753 | - | - | ||||||||||||||||||||
6/28/2019 | 3265 East Goldstone Dr. | Meridian | ID | — | VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.) | 77,484 | 349 | 276 | 9,640 | 08/2019 | ||||||||||||||||||||
7/15/2019 | 19019 North 59th Ave. | Glendale | AZ | — | Honeywell International Inc. | 252,300 | 465 | 475 | - | - | ||||||||||||||||||||
7/31/2019 | 500 Jackson St. | Columbus | IN | — | Cummins, Inc. | 390,100 | 1,148 | 1,135 | 24,119 | 07/2019 | ||||||||||||||||||||
10/31/2019 | 10475 Crosspoint Blvd. | Indianapolis | IN | — | John Wiley & Sons, Inc. | 123,416 | 563 | 567 | - | - | ||||||||||||||||||||
9601 Renner Blvd. | Lenexa | KS | — | VoiceStream PCS II Corporation (T-Mobile USA, Inc.) | 77,484 | 357 | 286 | 9,757 | 12/2019 | |||||||||||||||||||||
12/31/2019 | 400 Butler Farm Rd. | Hampton | VA | — | Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) | 100,632 | 246 | 251 | - | - | ||||||||||||||||||||
850-950 Warrenville Rd. | Lisle | IL | — | National-Louis University / James J. Benes & Associates, Inc. | 91,879 | 353 | 358 | 9,571 | 06/2016 | |||||||||||||||||||||
2020 | 1/31/2020 | 10300 Kincaid Dr. | Fishers | IN | — | Roche Diagnostics Operations, Inc. | 193,000 | 881 | 856 | - | - | |||||||||||||||||||
2/14/2020 | 5600 Broken Sound Blvd. | Boca Raton | FL | — | Canon Solutions America, Inc. (Oce - USA Holding, Inc.) | 143,290 | 581 | 561 | 19,806 | 02/2020 | ||||||||||||||||||||
5/31/2020 | 2401 Cherahala Blvd. | Knoxville | TN | — | AdvancePCS, Inc. / CaremarkPCS, L.L.C. | 59,748 | 183 | 193 | - | - | ||||||||||||||||||||
6/30/2020 | 10419 North 30th St. | Tampa | FL | — | Time Customer Service, Inc. (Time Incorporated) | 132,981 | 370 | 362 | - | - | ||||||||||||||||||||
3711 San Gabriel | Mission | TX | — | VoiceStream PCS II Corporation / T-Mobile West Corporation | 75,016 | 263 | 210 | 5,395 | 06/2015 | |||||||||||||||||||||
7/8/2020 | 1460 Tobias Gadsen Blvd. | Charleston | SC | — | Hagemeyer North America, Inc. | 50,076 | 213 | 210 | 7,253 | 02/2021 | ||||||||||||||||||||
7/31/2020 | 13775 McLearen Rd. | Herndon | VA | 12 | Orange Business Services U.S., Inc. (Equant N.V.) | 132,617 | 315 | 386 | - | - | ||||||||||||||||||||
8/31/2020 | 133 First Park Dr. | Oakland | ME | — | Omnipoint Holdings, Inc. (T-Mobile USA, Inc.) | 78,610 | 354 | 287 | 9,007 | 10/2020 | ||||||||||||||||||||
9/30/2020 | 600 Business Center Dr. | Lake Mary | FL | — | JPMorgan Chase Bank, National Association | 125,155 | 407 | 439 | - | - | ||||||||||||||||||||
9200 South Park Center Loop | Orlando | FL | — | Zenith Education Group, Inc. (ECMC Group, Inc.) | 59,927 | 281 | 284 | 9,576 | 02/2017 | |||||||||||||||||||||
550 International Parkway | Lake Mary | FL | — | JPMorgan Chase Bank, National Association | 125,920 | 409 | 441 | - | - | |||||||||||||||||||||
10/31/2020 | 12209 West Markham St. | Little Rock | AR | — | Entergy Arkansas, Inc. | 36,311 | 59 | 59 | - | - |
30 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2015
Year
of Lease | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||||||||||||
2021 | 1/31/2021 | 1701 Market St. | Philadelphia | PA | 4 , 10 | Morgan, Lewis & Bockius LLP | 292,073 | 1,067 | 1,074 | - | - | |||||||||||||||||||
3/31/2021 | 1311 Broadfield Blvd. | Houston | TX | — | Transocean Offshore Deepwater Drilling, Inc. (Transocean Sedco Forex, Inc.) | 155,040 | 659 | 656 | - | - | ||||||||||||||||||||
6/30/2021 | 1415 Wyckoff Rd. | Wall | NJ | — | New Jersey Natural Gas Company | 157,511 | 828 | 828 | 18,834 | 01/2021 | ||||||||||||||||||||
8/31/2021 | 333 Three D Systems Circle | Rock Hill | SC | — | 3D Systems Corporation | 80,028 | 167 | 172 | - | - | ||||||||||||||||||||
11/30/2021 | 29 South Jefferson Rd. | Whippany | NJ | — | CAE SimuFlite, Inc. (CAE INC.) | 123,734 | 624 | 581 | 14,039 | 11/2021 | ||||||||||||||||||||
12/31/2021 | 2800 Waterford Lake Dr. | Midlothian | VA | — | Alstom Power, Inc. | 99,057 | 551 | 546 | - | - | ||||||||||||||||||||
2022 | 1/31/2022 | 26210 and 26220 Enterprise Court | Lake Forest | CA | — | Apria Healthcare, Inc. (Apria Healthcare Group, Inc.) | 100,012 | 330 | 300 | - | - | |||||||||||||||||||
3/14/2022 | 4400 Northcorp Pkwy. | Palm Beach Gardens | FL | — | The Weiss Group, LLC | 18,500 | 15 | 15 | - | - | ||||||||||||||||||||
6/30/2022 | 8555 South River Pkwy. | Tempe | AZ | — | DA Nanomaterials L.L.C./ Air Products and Chemicals, Inc. | 95,133 | 401 | 427 | - | - | ||||||||||||||||||||
7/31/2022 | 1440 E 15th Street | Tucson | AZ | — | CoxCom, LLC | 28,591 | 137 | 137 | - | - | ||||||||||||||||||||
11/30/2022 | 4201 Marsh Ln. | Carrollton | TX | — | Carlson Restaurants Inc. (Carlson, Inc.) | 130,000 | 504 | 466 | - | - | ||||||||||||||||||||
12/31/2022 | 147 Milk St. | Boston | MA | — | Harvard Vanguard Medical Associates, Inc. | 52,337 | 425 | 415 | 12,482 | 12/2018 | ||||||||||||||||||||
231 N. Martingale Rd. | Schaumburg | IL | — | CEC Educational Services, LLC (Career Education Corporation) | 317,198 | 1,078 | 1,076 | - | - | |||||||||||||||||||||
2023 | 2/28/2023 | 2211 South 47th St. | Phoenix | AZ | — | Avnet, Inc. | 176,402 | 551 | 674 | - | - | |||||||||||||||||||
3/31/2023 | 8900 Freeport Pkwy. | Irving | TX | — | Nissan Motor Acceptance Corporation (Nissan North America, Inc.) | 225,049 | 891 | 856 | - | - | ||||||||||||||||||||
6/30/2023 | 12600 Gateway Blvd. | Fort Myers | FL | 7 | Alta Resources Corp. | 63,261 | 226 | 242 | - | - | ||||||||||||||||||||
12/14/2023 | 3333 Coyote Hill Rd. | Palo Alto | CA | — | Xerox Corporation | 202,000 | 1,767 | 1,660 | 52,299 | 12/2023 | ||||||||||||||||||||
2024 | 2/14/2024 | 1362 Celebration Blvd. | Florence | SC | — | MED3000, Inc. | 32,000 | 134 | 143 | - | - | |||||||||||||||||||
5/31/2024 | 3476 Stateview Blvd. | Fort Mill | SC | — | Wells Fargo Bank, N.A. | 169,083 | 451 | 487 | - | - | ||||||||||||||||||||
3480 Stateview Blvd. | Fort Mill | SC | — | Wells Fargo Bank, N.A. | 169,218 | 451 | 506 | - | - | |||||||||||||||||||||
8/31/2024 | 10475 Crosspoint Blvd. | Indianapolis | IN | — | RGN-Indianapolis I, LLC | 14,236 | 71 | 71 | - | - | ||||||||||||||||||||
10/31/2024 | 1409 Centerpoint Blvd. | Knoxville | TN | — | Alstom Power, Inc. | 84,404 | 265 | 305 | - | - | ||||||||||||||||||||
11/30/2024 | 2050 Roanoke Rd. | Westlake | TX | — | TD Auto Finance LLC | 77,906 | 423 | 468 | - | - | ||||||||||||||||||||
12/31/2024 | 12000 & 12025 Tech Center Dr. | Livonia | MI | — | Kelsey-Hayes Company (TRW Automotive Inc.) | 180,230 | 393 | 423 | - | - | ||||||||||||||||||||
2025 | 1/31/2025 | 1401 Nolan Ryan Expy. | Arlington | TX | — | Triumph Aerostructures, LLC (Triumph Group, Inc.) | 111,409 | 395 | 404 | - | - | |||||||||||||||||||
2/28/2025 | 6555 Sierra Dr. | Irving | TX | — | TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC) | 247,254 | 775 | 722 | - | - | ||||||||||||||||||||
1401 Nolan Ryan Expy. | Arlington | TX | — | Cyient, Inc. (Infotech Enterprise Limited) | 13,590 | 20 | 18 | - | - | |||||||||||||||||||||
3/14/2025 | 601 & 701 Experian Pkwy. | Allen | TX | — | Experian Information Solutions, Inc. / TRW, Inc.(Experian Holdings, Inc.) | 292,700 | 768 | 742 | - | - | ||||||||||||||||||||
3/31/2025 | 2706 Media Center Dr. | Los Angeles | CA | — | Bank of America, National Association | 62,323 | - | 227 | - | - | ||||||||||||||||||||
N/A | N/A | 1701 Market St. | Philadelphia | PA | 4 | Parking Operations | - | 620 | 620 | - | - | |||||||||||||||||||
Vacancy | 10475 Crosspoint Blvd. | Indianapolis | IN | — | (Available for Lease) | 3,764 | - | - | - | - | ||||||||||||||||||||
1701 Market St. | Philadelphia | PA | 4 | (Available for Lease) | 2,674 | - | - | - | - | |||||||||||||||||||||
2050 Roanoke Rd. | Westlake | TX | — | (Available for Lease) | 52,293 | - | - | - | - | |||||||||||||||||||||
2550 Interstate Dr. | Harrisburg | PA | — | (Available for Lease) | 4,049 | - | - | - | - | |||||||||||||||||||||
1401 Nolan Ryan Expy. | Arlington | TX | — | (Available for Lease) | 36,809 | 13 | 13 | - | - | |||||||||||||||||||||
OFFICE TOTAL/WEIGHTED AVERAGE | 99.0% Leased | 9,522,888 | $ | 36,973 | $ | 35,736 | $ | 288,388 |
31 |
LEXINGTON
REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2015
Year
of Lease | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.
Ft. Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||
INDUSTRIAL PROPERTIES | ||||||||||||||||||||||||||||||
2015 | 6/30/2015 | 324 Industrial Park Rd. | Franklin | NC | — | SKF USA, Inc. | 72,868 | 75 | 61 | 22 | 04/2015 | |||||||||||||||||||
12/31/2015 | 749 Southrock Dr. | Rockford | IL | — | Jacobson Warehouse Company, Inc. (Jacobson Distribution Company, Inc. and Jacobson Transportation Company, Inc.) | 150,000 | 119 | 122 | - | - | ||||||||||||||||||||
2016 | 2/28/2016 | 7670 Hacks Cross Rd. | Olive Branch | MS | — | MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated) | 268,104 | 239 | 182 | - | - | |||||||||||||||||||
3/31/2016 | 2455 Premier Dr. | Orlando | FL | — | Walgreen Co. / Walgreen Eastern Co. | 205,016 | 127 | 196 | - | - | ||||||||||||||||||||
5/31/2016 | 291 Park Center Dr. | Winchester | VA | — | Kraft Foods Group, Inc. | 344,700 | 320 | 322 | - | - | ||||||||||||||||||||
6/30/2016 | 1133 Poplar Creek Rd. | Henderson | NC | — | Staples, Inc. | 196,946 | 197 | 203 | - | - | ||||||||||||||||||||
7/31/2016 | 7111 Crabb Rd. | Temperance | MI | — | Michelin North America, Inc. | 744,570 | 571 | 571 | - | - | ||||||||||||||||||||
11/30/2016 | 736 Addison Rd. | Erwin | NY | — | Corning, Incorporated | 408,000 | 330 | 330 | 8,171 | 10/2018 | ||||||||||||||||||||
12/31/2016 | 2935 Van Vactor Dr. | Plymouth | IN | — | Bay Valley Foods, LLC | 300,500 | 211 | 208 | 5,897 | 09/2016 | ||||||||||||||||||||
3686 South Central Ave. | Rockford | IL | — | Pierce Packaging Co. | 93,000 | 76 | 76 | - | - | |||||||||||||||||||||
2017 | 1/31/2017 | 109 Stevens St. | Jacksonville | FL | 9 | Wagner Industries, Inc. | 153,648 | 81 | 81 | - | - | |||||||||||||||||||
2/28/2017 | 3456 Meyers Ave. | Memphis | TN | — | Sears, Roebuck and Co. / Sears Logistics Services | 780,000 | 398 | 424 | - | - | ||||||||||||||||||||
4/30/2017 | 3600 Army Post Rd. | Des Moines | IA | — | HP Enterprise Services, LLC | 405,000 | 645 | 513 | - | - | ||||||||||||||||||||
5/31/2017 | 191 Arrowhead Dr. | Hebron | OH | — | Owens Corning Insulating Systems, LLC | 250,410 | 138 | 138 | - | - | ||||||||||||||||||||
200 Arrowhead Dr. | Hebron | OH | — | Owens Corning Insulating Systems, LLC | 400,522 | 220 | 218 | - | - | |||||||||||||||||||||
6/30/2017 | 7500 Chavenelle Rd. | Dubuque | IA | — | The McGraw-Hill Companies, Inc. | 330,988 | 322 | 291 | 9,245 | 06/2017 | ||||||||||||||||||||
9/30/2017 | 250 Swathmore Ave. | High Point | NC | — | Steelcase Inc. | 244,851 | 283 | 272 | - | - | ||||||||||||||||||||
10/31/2017 | 1420 Greenwood Rd. | McDonough | GA | — | Versacold USA, Inc. | 296,972 | 680 | 649 | 22,437 | 11/2017 | ||||||||||||||||||||
43955 Plymouth Oaks Blvd. | Plymouth | MI | — | Tower Automotive Operations USA I, LLC / Tower Automotive Products Inc. (Tower Automotive, Inc.) | 290,133 | 345 | 369 | - | - | |||||||||||||||||||||
12/31/2017 | 2203 Sherrill Dr. | Statesville | NC | — | Ozburn-Hessey Logistics, LLC (OHH Acquisition Corporation) | 639,800 | 500 | 479 | - | - | ||||||||||||||||||||
2018 | 6/30/2018 | 1650-1654 Williams Rd. | Columbus | OH | — | ODW Logistics, Inc. | 772,450 | 337 | 336 | - | - | |||||||||||||||||||
9/30/2018 | 50 Tyger River Dr. | Duncan | SC | — | Plastic Omnium Auto Exteriors, LLC | 221,833 | 256 | 256 | - | - | ||||||||||||||||||||
904 Industrial Rd. | Marshall | MI | — | Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.) | 246,508 | 210 | 174 | - | - | |||||||||||||||||||||
12/31/2018 | 120 Southeast Pkwy. Dr. | Franklin | TN | — | Essex Group, Inc. (United Technologies Corporation) | 289,330 | 184 | 184 | - | - | ||||||||||||||||||||
2019 | 10/17/2019 | 10345 Philipp Pkwy. | Streetsboro | OH | — | L'Oreal USA S/D, Inc. (L’Oreal USA, Inc.) | 649,250 | 704 | 653 | 17,855 | 09/2019 | |||||||||||||||||||
12/31/2019 | 2415 US Hwy. 78 East | Moody | AL | — | Michelin North America, Inc. | 595,346 | 341 | 352 | - | - | ||||||||||||||||||||
2020 | 1/31/2020 | 101 Michelin Dr. | Laurens | SC | — | Michelin North America, Inc. | 1,164,000 | 847 | 847 | - | - | |||||||||||||||||||
3/31/2020 | 2425 Hwy. 77 North | Waxahachie | TX | — | James Hardie Building Products, Inc. (James Hardie NV & James Hardie Industries NV) | 335,610 | 850 | 850 | - | - | ||||||||||||||||||||
5/31/2020 | 359 Gateway Dr. | Lavonia | GA | — | TI Group Automotive Systems, LLC (TI Automotive Ltd.) | 133,221 | 300 | 238 | 7,909 | 12/2020 | ||||||||||||||||||||
6/30/2020 | 3102 Queen Palm Dr. | Tampa | FL | — | Time Customer Service, Inc. (Time Incorporated) | 229,605 | 348 | 319 | - | - | ||||||||||||||||||||
9/30/2020 | 3350 Miac Cove Rd. | Memphis | TN | — | Mimeo.com, Inc. | 107,400 | 110 | 102 | - | - | ||||||||||||||||||||
12/19/2020 | 1901 Ragu Dr. | Owensboro | KY | 6 | Unilever Supply Chain, Inc. (Unilever United States, Inc.) | 443,380 | 299 | 373 | - | - | ||||||||||||||||||||
2021 | 5/31/2021 | 477 Distribution Pkwy. | Collierville | TN | — | Federal Express Corporation / FedEx Techconnect, Inc. | 126,213 | 206 | 187 | - | - | |||||||||||||||||||
9/30/2021 | 3820 Micro Dr. | Millington | TN | — | Ingram Micro L.P. (Ingram Micro Inc.) | 701,819 | 423 | 453 | - | - | ||||||||||||||||||||
10/25/2021 | 6938 Elm Valley Dr. | Kalamazoo | MI | — | Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited) | 150,945 | 507 | 437 | - | - | ||||||||||||||||||||
11/30/2021 | 2880 Kenny Biggs Rd. | Lumberton | NC | — | Quickie Manufacturing Corporation | 423,280 | 343 | 339 | - | - | ||||||||||||||||||||
2022 | 3/31/2022 | 5417 Campus Dr. | Shreveport | LA | — | The Tire Rack, Inc. | 257,849 | 319 | 335 | - | - | |||||||||||||||||||
2023 | 12/31/2023 | 1601 Pratt Ave. | Marshall | MI | — | Autocam Corporation | 58,707 | 76 | 76 | - | - | |||||||||||||||||||
2024 | 4/30/2024 | 113 Wells St. | North Berwick | ME | — | United Technologies Corporation | 972,625 | 384 | 343 | 5,705 | 04/2019 | |||||||||||||||||||
5/31/2024 | 901 East Bingen Point Way | Bingen | WA | — | The Boeing Company | 124,539 | 625 | 659 | - | - | ||||||||||||||||||||
N/A | Vacancy | 109 Stevens St. | Jacksonville | FL | — | (Available for Lease) | 15,152 | - | - | - | - | |||||||||||||||||||
3350 Miac Cove Rd. | Memphis | TN | — | (Available for Lease) | 32,679 | - | - | - | - | |||||||||||||||||||||
INDUSTRIAL TOTAL/WEIGHTED AVERAGE | 99.7% Leased | 14,627,769 | $ | 13,546 | $ | 13,218 | $ | 77,241 |
32 |
LEXINGTON
REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2015
Year
of Lease | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant | Sq.Ft. | Percentage Leased | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | ||||||||||||||||||||||
MULTI-TENANT PROPERTIES (8,14) | ||||||||||||||||||||||||||||||||||
Various | Various | 100 Light St. | Baltimore | MD | 13 | Multi-Tenant | 476,459 | 94 | % | 4,014 | 4,068 | 55,000 | 06/2023 | |||||||||||||||||||||
13430 North Black Canyon Fwy. | Phoenix | AZ | — | Multi-Tenant | 138,940 | 92 | % | 603 | 602 | - | - | |||||||||||||||||||||||
1501 Nolan Ryan Expy. | Arlington | TX | — | Multi-Tenant | 74,739 | 0 | % | - | - | - | - | |||||||||||||||||||||||
180 South Clinton St. | Rochester | NY | — | Multi-Tenant | 226,000 | 0 | % | - | - | 17,234 | 08/2016 | |||||||||||||||||||||||
2210 Enterprise Dr. | Florence | SC | — | Caliber Funding, LLC | 176,557 | 21 | % | 181 | 173 | - | - | |||||||||||||||||||||||
3165 McKelvey Rd. | Bridgeton | MO | — | BJC Health System | 51,067 | 50 | % | 108 | 101 | - | - | |||||||||||||||||||||||
4200 Northcorp Pkwy. | Palm Beach Gardens | FL | — | Multi-Tenant | 95,065 | 95 | % | 218 | 218 | - | - | |||||||||||||||||||||||
6050 Dana Way | Antioch | TN | — | Multi-Tenant | 674,528 | 78 | % | 460 | 454 | - | - | |||||||||||||||||||||||
700 US Hwy. Route 202-206 | Bridgewater | NJ | — | Multi-Tenant | 115,558 | 0 | % | - | - | 14,118 | 03/2016 | |||||||||||||||||||||||
275 Technology Dr. | Canonsburg | PA | — | Multi-Tenant | 107,872 | 0 | % | - | - | - | - | |||||||||||||||||||||||
King St./1042 Fort St. Mall | Honolulu | HI | — | Multi-Tenant | 77,459 | 69 | % | 201 | 201 | - | - | |||||||||||||||||||||||
26555 Northwestern Pkwy | Southfield | MI | 11 | Multi-Tenant | 187,163 | 0 | % | 113 | 232 | - | - | |||||||||||||||||||||||
3940 South Teller St. | Lakewood | CO | 11 , 16 | Multi-Tenant | 68,165 | 0 | % | 278 | 273 | - | - | |||||||||||||||||||||||
MULTI-TENANT TOTAL/WEIGHTED AVERAGE | 53.2% Leased | 2,469,572 | $ | 6,176 | $ | 6,322 | $ | 86,352 |
33 |
LEXINGTON
REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2015
Year
of | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||
RETAIL/SPECIALTY PROPERTIES | ||||||||||||||||||||||||||||||
2016 | 5/31/2016 | 6910 South Memorial Hwy. | Tulsa | OK | — | Toys “R” Us, Inc. / Toys "R" Us-Delaware, Inc. | 43,123 | 64 | 64 | - | - | |||||||||||||||||||
2017 | 6/30/2017 | 1600 East 23rd St. | Chattanooga | TN | — | BI-LO, LLC | 42,130 | 32 | 32 | - | - | |||||||||||||||||||
12/31/2017 | 11411 North Kelly Ave. | Oklahoma City | OK | — | American Golf Corporation | 13,924 | 119 | 81 | - | - | ||||||||||||||||||||
2018 | 2/26/2018 | 4831 Whipple Ave., Northwest | Canton | OH | — | Best Buy Co., Inc. | 46,350 | 116 | 116 | - | - | |||||||||||||||||||
2/28/2018 | 291 Talbert Blvd. | Lexington | NC | — | Food Lion, LLC / Delhaize America, Inc. | 23,000 | 34 | 34 | - | - | ||||||||||||||||||||
3211 West Beverly St. | Staunton | VA | — | Food Lion, LLC / Delhaize America, Inc. | 23,000 | 41 | 41 | - | - | |||||||||||||||||||||
7/1/2018 | 1053 Mineral Springs Rd. | Paris | TN | — | The Kroger Co. | 31,170 | 40 | 42 | - | - | ||||||||||||||||||||
9/30/2018 | 835 Julian Ave. | Thomasville | NC | — | Mighty Dollar, LLC | 23,767 | 20 | 20 | - | - | ||||||||||||||||||||
10/31/2018 | 130 Midland Ave. | Port Chester | NY | — | A&P Real Property, LLC (Pathmark Stores, Inc.) | 59,613 | 115 | 244 | - | - | ||||||||||||||||||||
5104 North Franklin Rd. | Lawrence | IN | — | Marsh Supermarkets, Inc. / Marsh Supermarkets, LLC | 28,721 | 48 | 48 | - | - | |||||||||||||||||||||
12/31/2018 | 1150 West Carl Sandburg Dr. | Galesburg | IL | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 94,970 | 11 | 82 | 471 | 07/2018 | ||||||||||||||||||||
12080 Carmel Mountain Rd. | San Diego | CA | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 107,210 | 12 | 188 | 535 | 07/2018 | |||||||||||||||||||||
21082 Pioneer Plaza Dr. | Watertown | NY | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 120,727 | 18 | 120 | 790 | 07/2018 | |||||||||||||||||||||
255 Northgate Dr. | Manteca | CA | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 107,489 | 19 | 139 | 840 | 07/2018 | |||||||||||||||||||||
5350 Leavitt Rd. | Lorain | OH | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 193,193 | 27 | 183 | 1,189 | 07/2018 | |||||||||||||||||||||
97 Seneca Trail | Fairlea | WV | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 90,933 | 13 | 87 | 555 | 07/2018 | |||||||||||||||||||||
2019 | 3/31/2019 | B.E.C. 45th St./Lee Blvd. | Lawton | OK | — | Associated Wholesale Grocers, Inc. / Safeway, Inc. | 30,757 | 46 | 47 | - | - | |||||||||||||||||||
12/31/2019 | 1066 Main St. | Forest Park | GA | — | Bank of America, N.A. (Bank of America Corporation) | 14,859 | 50 | 50 | - | - | ||||||||||||||||||||
1698 Mountain Industrial Blvd. | Stone Mountain | GA | — | Bank of America, N.A. (Bank of America Corporation) | 5,704 | 24 | 24 | - | - | |||||||||||||||||||||
201 West Main St. | Cumming | GA | — | Bank of America, N.A. (Bank of America Corporation) | 14,208 | 50 | 50 | - | - | |||||||||||||||||||||
2223 North Druid Hills Rd. | Atlanta | GA | — | Bank of America, N.A. (Bank of America Corporation) | 6,260 | 28 | 28 | - | - | |||||||||||||||||||||
4545 Chamblee – Dunwoody Rd. | Dunwoody | GA | — | Bank of America, N.A. (Bank of America Corporation) | 4,565 | 22 | 22 | - | - | |||||||||||||||||||||
825 Southway Dr. | Jonesboro | GA | — | Bank of America, N.A. (Bank of America Corporation) | 4,894 | 19 | 19 | - | - | |||||||||||||||||||||
956 Ponce de Leon Ave. | Atlanta | GA | — | Bank of America, N.A. (Bank of America Corporation) | 3,900 | 20 | 20 | - | - | |||||||||||||||||||||
2023 | 2/28/2023 | 733 East Main St. | Jefferson | NC | — | Food Lion, LLC / Delhaize America, Inc. | 34,555 | 40 | 38 | - | - | |||||||||||||||||||
N/A | Vacancy | 1084 East Second St. | Franklin | OH | 11 | (Available for Lease) | 29,119 | - | 735 | - | - | |||||||||||||||||||
RETAIL/SPECIALTY TOTAL/WEIGHTED AVERAGE | 97.6% Leased | 1,198,141 | $ | 1,028 | $ | 2,554 | $ | 4,380 | ||||||||||||||||||||||
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE | 96.7% Leased | 41,788,337 | $ | 93,998 | $ | 100,010 | $ | 901,328 |
Footnotes
1 | Square foot leased or available. |
2 | Three months ended 3/31/2015 cash rent. |
3 | Three months ended 3/31/2015 GAAP base rent. |
4 | Lexington has an 87.5% interest in this property. |
5 | 20,000 square feet is leased to 5/31/2023. |
6 | Lexington has a 71.1% interest in this property. |
7 | Property disposed subsequent to 3/31/2015. |
8 | Multi-tenant properties are properties less than 50% leased to a single tenant. |
9 | Tenant contracted to 100,000 square feet subsequent to 3/31/2015. |
10 | Includes 2,641 square feet leased to TruMark Financial Credit Union through 5/31/2025. |
11 | Cash and GAAP rent amounts represent/include prior tenant. |
12 | 24,824 square feet is leased to 7/31/2025. |
13 | Includes parking operations. |
14 | The multi-tenanted properties incurred approximately $3.5 million in operating expenses, net for the three months ended 3/31/2015. |
15 | Heidelberg Americas, Inc. lease expires 3/30/2021, however, new tenant (Goss International Americas, Inc.) lease expires 3/30/2026. |
16 | Subsequent to 3/31/2015, new 15-year lease signed for the entire property. |
17 | Educational Policy Improvement Center lease for 10,791 square feet expires 11/2019; however, space is then leased to Oregon Research Institute through 11/2027. |
18 | Baker Hughes Incorporated lease expires 09/2015; however, new tenant (Schlumberger Holdings Corp.) lease expires 09/2025. |
19 | Aramark Corporation lease for 8,261 square feet expires 11/2017 and Orlando /Orange County Convention & Visitor Bureau, Inc. lease for 44,752 square feet expires 09/2024. |
20 | Includes 23,535 square feet leased to 10/31/2025. |
34 |
LEXINGTON REALTY TRUST
Select Credit Metrics
3/31/2014 | 3/31/2015 | |||||||
Company FFO Payout Ratio | 58.9 | % | 65.4 | % | ||||
Unencumbered Assets (1) | $ | 2.72 billion | $ | 3.20 billion | ||||
Unencumbered NOI | 54.6 | % | 68.4 | % | ||||
(Debt + Preferred) / Gross Assets | 43.8 | % | 44.1 | % | ||||
Debt/Gross Assets | 41.9 | % | 42.2 | % | ||||
Market Cap Leverage | 44.4 | % | 46.7 | % | ||||
Secured Debt / Gross Assets | 23.1 | % | 17.7 | % | ||||
Net Debt / EBITDA | 6.5 | x | 6.5 | x | ||||
(Net Debt + Preferred) / EBITDA | 6.8 | x | 6.8 | x | ||||
Credit Facilities Availability (2) | $ | 351.9 million | $ | 294.9 million | ||||
Development / Gross Assets | 1.6 | % | 2.9 | % | ||||
EBITDA / Revenue | 80.3 | % | 75.3 | % | ||||
EBITDA / (PrefDiv + Interest Expense) | 3.6 | x | 3.4 | x | ||||
(JV + Advisory Income) / Revenues | 0.3 | % | 0.5 | % |
Footnotes
(1) | Includes loans receivable. |
(2) | Subject to covenant compliance. |
35 |
LEXINGTON REALTY TRUST
Historical Credit Metrics Summary
2011 | 2012 | 2013 | 2014 | |||||||||||||
Company FFO Payout Ratio | 48.5 | % | 56.1 | % | 60.3 | % | 60.8 | % | ||||||||
Unencumbered Assets (1)(2) | $ | 1.15 billion | $ | 1.76 billion | $ | 2.59 billion | $ | 2.87 billion | ||||||||
Unencumbered NOI (1) | 25.9 | % | 34.5 | % | 55.3 | % | 59.9 | % | ||||||||
(Debt + Preferred) / Gross Assets | 48.7 | % | 46.6 | % | 43.0 | % | 44.0 | % | ||||||||
Debt/Gross Assets | 40.9 | % | 41.1 | % | 41.1 | % | 42.0 | % | ||||||||
Market Cap Leverage | 52.5 | % | 46.6 | % | 45.4 | % | 43.7 | % | ||||||||
Secured Debt / Gross Assets (1) | 31.9 | % | 30.9 | % | 23.9 | % | 19.0 | % | ||||||||
Net Debt / EBITDA | 5.5 | x | 6.5 | x | 6.4 | x | 5.7 | % | ||||||||
(Net Debt + Preferred) / EBITDA | 6.6 | x | 7.3 | x | 6.7 | x | 6.0 | % | ||||||||
Credit Facilities Availability (3) | $ | 294.3 million | $ | 296.3 million | $ | 443.4 million | $ | 385.4 million | ||||||||
Development / Gross Assets | 0.9 | % | 1.6 | % | 1.6 | % | 2.4 | % | ||||||||
EBITDA / Revenue | 77.0 | % | 76.5 | % | 74.4 | % | 71.8 | % | ||||||||
EBITDA / (PrefDiv + Interest Expense) | 2.3 | x | 2.4 | x | 3.1 | x | 3.1 | x | ||||||||
(JV + Advisory Income or (loss)) / Revenues | 8.5 | % | 4.4 | % | 0.5 | % | 0.4 | % |
Footnotes:
(1) | Revolving credit facility and term loans are currently unsecured thus all periods reflect such borrowings as unsecured. |
(2) | Includes loans receivable. |
(3) | Subject to covenant compliance. |
36 |
LEXINGTON REALTY TRUST |
FINANCIAL COVENANTS (1) |
Corporate Level Debt |
Bank Loans: | Must be: | 3/31/2015 | ||||||
Maximum Leverage | < 60% | 50.1 | % | |||||
Interest Coverage | > 1.5X | 3.3 | X | |||||
Fixed Charge Coverage | > 1.4X | 2.2 | X | |||||
Recourse Secured Indebtedness Ratio | < 10% cap value | 0.3 | % | |||||
Secured Indebtedness Ratio | < 45% | 21.1 | % | |||||
Minimum Net Worth | > $2.1 billion | $ | 2.7 billion | |||||
Distribution Limit | < 95% FFO | 76.2 | % | |||||
Floating Rate Debt | < 35% | 10.8 | % | |||||
Unsecured Debt Service Coverage | > 2.0X | 4.0 | X | |||||
Borrowing Base Assets Leverage | < 60% | 46.5 | % | |||||
Restricted Payments | < $20 million | $ | 1.2 million | |||||
Permitted Investments: | ||||||||
A | Joint Venture Investments | < 25% cap value | 1.1 | % | ||||
B | Raw Land | < 10% cap value | 0.0 | % | ||||
C | Construction/Development in Process | < 15% cap value | 4.1 | % | ||||
D | Notes Receivable | < 10% cap value | 2.4 | % | ||||
E | Ground Leases | < 20% cap value | 9.1 | % | ||||
Sum of A through E | < 40% cap value | 16.9 | % | |||||
Sum of B through D | < 25% cap value | 6.6 | % | |||||
Bonds: | ||||||||
Debt to Total Assets | < 60% | 43.3 | % | |||||
Secured Debt to Total Assets | < 40% | 18.1 | % | |||||
Debt Service Coverage | > 1.5X | 3.9 | X | |||||
Unencumbered Assets to Unsecured Debt | > 150% | 268.8 | % |
Footnotes
(1) | As defined in respective loan/bond agreements. |
37 |
LEXINGTON REALTY TRUST
Consolidated Properties: Mortgages and Notes Payable
3/31/2015
Property | Footnotes | Debt Balance ($000) | Interest Rate (%) | Maturity (a) | Current Estimated Annual Debt Service ($000) (d) | Balloon Payment ($000) | ||||||||||||||
Mortgages with Balloons | ||||||||||||||||||||
Mission, TX | $ | 5,395 | 5.783 | % | 06/2015 | $ | 104 | $ | 5,371 | |||||||||||
Elizabethtown, KY | (j) | 11,685 | 4.990 | % | 07/2015 | 447 | 11,381 | |||||||||||||
Hopkinsville, KY | 6,827 | 4.990 | % | 07/2015 | 262 | 6,648 | ||||||||||||||
Dry Ridge, KY | (i) | 2,094 | 4.990 | % | 07/2015 | 272 | 1,983 | |||||||||||||
Owensboro, KY | (i) | 1,722 | 4.990 | % | 07/2015 | 245 | 1,632 | |||||||||||||
Elizabethtown, KY | (j) | 2,195 | 4.990 | % | 07/2015 | 84 | 2,137 | |||||||||||||
Temple, TX | 7,765 | 6.090 | % | 01/2016 | 523 | 7,463 | ||||||||||||||
Bridgewater, NJ | (b) | 14,118 | 5.732 | % | 03/2016 | 1,443 | 13,825 | |||||||||||||
Omaha, NE | 7,730 | 5.610 | % | 04/2016 | 621 | 7,560 | ||||||||||||||
Bremerton, WA | 5,774 | 6.090 | % | 04/2016 | 494 | 5,479 | ||||||||||||||
Tempe, AZ | 7,300 | 5.610 | % | 04/2016 | 586 | 7,140 | ||||||||||||||
Byhalia, MS | (n) | 15,000 | 4.710 | % | 06/2016 | 707 | 15,000 | |||||||||||||
Lisle, IL | 9,571 | 6.500 | % | 06/2016 | 793 | 9,377 | ||||||||||||||
Farmers Branch, TX | 18,401 | 5.939 | % | 07/2016 | 1,139 | 18,363 | ||||||||||||||
Rochester, NY | (b) | 17,234 | 6.210 | % | 08/2016 | 1,614 | 16,765 | |||||||||||||
Glenwillow, OH | 15,533 | 6.130 | % | 09/2016 | 1,240 | 15,132 | ||||||||||||||
Plymouth, IN | 5,897 | 6.315 | % | 09/2016 | 497 | 5,723 | ||||||||||||||
Tomball, TX | 8,663 | 6.063 | % | 11/2016 | 683 | 8,041 | ||||||||||||||
Memphis, TN | 3,605 | 5.710 | % | 01/2017 | 275 | 3,484 | ||||||||||||||
Huntington, WV | 6,500 | 4.150 | % | 02/2017 | 270 | 6,500 | ||||||||||||||
Orlando, FL | 9,576 | 5.722 | % | 02/2017 | 696 | 9,309 | ||||||||||||||
Dubuque, IA | 9,245 | 5.402 | % | 06/2017 | 733 | 8,725 | ||||||||||||||
Shreveport, LA | 19,000 | 5.690 | % | 07/2017 | 1,099 | 19,000 | ||||||||||||||
McDonough, GA | 22,437 | 6.110 | % | 11/2017 | 1,674 | 21,651 | ||||||||||||||
Erwin, NY | 8,171 | 5.910 | % | 10/2018 | 728 | 6,637 | ||||||||||||||
Boston, MA | 12,482 | 6.100 | % | 12/2018 | 996 | 11,520 | ||||||||||||||
Overland Park, KS | 34,579 | 5.891 | % | 05/2019 | 2,657 | 31,812 | ||||||||||||||
Kansas City, MO | 16,486 | 5.883 | % | 05/2019 | 1,268 | 15,179 | ||||||||||||||
Columbus, IN | 24,119 | 2.210 | % | 07/2019 | 4,699 | 4,993 | ||||||||||||||
Meridian, ID | 9,640 | 6.010 | % | 08/2019 | 753 | 7,675 | ||||||||||||||
Streetsboro, OH | 17,855 | 5.749 | % | 09/2019 | 1,344 | 16,338 | ||||||||||||||
Lenexa, KS | 9,757 | 6.270 | % | 12/2019 | 774 | 7,770 | ||||||||||||||
Boca Raton, FL | 19,806 | 6.470 | % | 02/2020 | 1,542 | 18,414 | ||||||||||||||
Oakland, ME | 9,007 | 5.930 | % | 10/2020 | 750 | 7,660 | ||||||||||||||
Lavonia, GA | 7,909 | 5.460 | % | 12/2020 | 741 | 5,895 | ||||||||||||||
Charleston, SC | 7,253 | 5.850 | % | 02/2021 | 520 | 6,632 | ||||||||||||||
Whippany, NJ | 14,039 | 6.298 | % | 11/2021 | 1,344 | 10,400 | ||||||||||||||
Baltimore, MD | 55,000 | 4.320 | % | 06/2023 | 2,376 | 47,676 | ||||||||||||||
New York, NY | 29,193 | 4.100 | % | 01/2025 | 1,217 | 29,193 | ||||||||||||||
Chester, SC | 9,226 | 5.380 | % | 08/2025 | 1,144 | 362 | ||||||||||||||
New York, NY | (e) | 213,438 | 4.660 | % | 01/2027 | 10,155 | 200,632 | |||||||||||||
Lenexa, KS | 37,894 | 3.700 | % | 11/2027 | 3,027 | 10,000 | ||||||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 769,121 | 5.110 | % | 6.5 | $ | 52,536 | $ | 666,477 |
38 |
LEXINGTON REALTY TRUST
Consolidated Properties: Mortgages and Notes Payable
3/31/2015
Property | Footnotes | Debt Balance ($000) | Interest Rate (%) | Maturity (a) | Current Estimated Annual Debt Service ($000) (d) | Balloon Payment ($000) | ||||||||||||||
Full Amortizing Mortgages | ||||||||||||||||||||
Franklin, NC | $ | 22 | 8.500 | % | 04/2015 | $ | 22 | $ | - | |||||||||||
Lorain, OH | 1,189 | 7.750 | % | 07/2018 | 108 | - | ||||||||||||||
Manteca, CA | 840 | 7.750 | % | 07/2018 | 77 | - | ||||||||||||||
Watertown, NY | 790 | 7.750 | % | 07/2018 | 72 | - | ||||||||||||||
Fairlea, WV | 555 | 7.750 | % | 07/2018 | 51 | - | ||||||||||||||
San Diego, CA | 535 | 7.750 | % | 07/2018 | 49 | - | ||||||||||||||
Galesburg, IL | 471 | 7.750 | % | 07/2018 | 43 | - | ||||||||||||||
North Berwick, ME | 5,705 | 3.560 | % | 04/2019 | 1,532 | - | ||||||||||||||
Wall, NJ | 18,834 | 6.250 | % | 01/2021 | 3,774 | - | ||||||||||||||
Palo Alto, CA | 52,299 | 3.970 | % | 12/2023 | 7,059 | - | ||||||||||||||
Long Island City, NY | 50,967 | 3.500 | % | 03/2028 | 4,538 | - | ||||||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 132,207 | 4.222 | % | 9.5 | $ | 17,325 | $ | - | |||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 901,328 | 4.980 | % | 7.0 | $ | 69,861 | $ | 666,477 | |||||||||||
Corporate (k) | ||||||||||||||||||||
Revolving Credit Facility | $ | 93,000 | 1.328 | % | 02/2017 | $ | 1,252 | $ | 93,000 | |||||||||||
Term Loan | 250,000 | 2.442 | % | 02/2018 | 6,190 | 250,000 | ||||||||||||||
Term Loan | 255,000 | 3.173 | % | 01/2019 | 8,204 | 255,000 | ||||||||||||||
Senior Notes | (h) | 250,000 | 4.250 | % | 06/2023 | 10,625 | 250,000 | |||||||||||||
Senior Notes | (f) | 250,000 | 4.400 | % | 06/2024 | 11,000 | 250,000 | |||||||||||||
Convertible Notes | (m)(c) | 15,628 | 6.000 | % | 01/2030 | 938 | 15,628 | |||||||||||||
Trust Preferred Notes | (g) | 129,120 | 6.804 | % | 04/2037 | 8,785 | 129,120 | |||||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 1,242,748 | 3.764 | % | 7.3 | $ | 46,994 | $ | 1,242,748 | |||||||||||
Total/Wtg. Avg./Years Remaining (l) | $ | 2,144,076 | 4.275 | % | 7.1 | $ | 116,855 | $ | 1,909,225 |
Footnotes
(a) | Subtotal and total based on weighted-average term to maturity (or put dates) shown in years based on debt balance. |
(b) | Loan is in default. |
(c) | Represents full payable of notes; discount of $476 excluded from balance. |
(d) | Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months. |
(e) | Loan is cross-collateralized on three properties. |
(f) | Represents full payable of notes; discount of $268 excluded from balance. |
(g) | Rate fixed through 04/2017; thereafter, LIBOR plus 170 bps. |
(h) | Represents full payable of notes; discount of $1,989 excluded from balance. |
(i) | Properties are cross-collateralized. |
(j) | Properties are cross-collateralized. |
(k) | Unsecured. |
(l) | Total shown may differ from detailed amounts due to rounding. |
(m) | Holders have the right to redeem the notes on 01/15/17, 01/15/20 and 01/15/25. |
(n) | Property is currently being expanded. Mortgage is recourse during expansion. |
39 |
LEXINGTON REALTY TRUST
Non- Consolidated Investments: Mortgages & Notes Payable
3/31/2015
Joint Venture | Debt Balance ($000) | LXP
Proportionate Share ($000) (3) | Interest
Rate (%) | Maturity | Current Estimated Annual Debt Service ($000)(4) | Balloon Payment ($000) | Proportionate
Share Balloon Payment ($000) (3) | |||||||||||||||||||
Oklahoma TIC | $ | 13,693 | $ | 5,477 | 5.240 | % | 05/2015 | $ | 141 | $ | 13,673 | $ | 5,469 | |||||||||||||
Rehab Humble Lessee | 14,561 | 2,184 | 4.700 | % | 05/2017 | 950 | 13,982 | 2,097 | ||||||||||||||||||
Gan Palm Beach Lessee | 14,690 | 3,672 | 3.700 | % | 03/2018 | 842 | 13,768 | 3,442 | ||||||||||||||||||
BP Lessee | 18,791 | 2,819 | 4.010 | % | 11/2018 | 764 | 18,791 | 2,819 | ||||||||||||||||||
Total/Wtg. Avg. (1)/Years Remaining (2) | $ | 61,735 | $ | 14,152 | 4.512 | % | 1.8 | $ | 2,697 | $ | 60,214 | $ | 13,827 |
Footnotes
(1) | Weighted-average interest rate based on proportionate share. |
(2) | Weighted-average years remaining on maturities based on proportionate debt balance. |
(3) | Total balance shown may differ from detailed amounts due to rounding. |
(4) | Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months. |
40 |
LEXINGTON REALTY TRUST
Debt Maturity Schedule
3/31/2015
($000)
Consolidated Properties | ||||||||||||
Year | Real Estate Scheduled Amortization | Real Estate Balloon Payments | Corporate Debt | |||||||||
2015 - remaining | $ | 19,111 | $ | 29,152 | $ | - | ||||||
2016 | $ | 27,258 | $ | 129,868 | $ | - | ||||||
2017 | $ | 27,775 | $ | 68,669 | $ | 108,628 | ||||||
2018 | $ | 27,488 | $ | 18,157 | $ | 250,000 | ||||||
2019 | $ | 23,604 | $ | 83,767 | $ | 255,000 | ||||||
$ | 125,236 | $ | 329,613 | $ | 613,628 |
Non-Consolidated Investments - LXP Proportionate Share | ||||||||||||
Year | Real Estate Scheduled Amortization | Real Estate Balloon Payments | ||||||||||
2015 - remaining | $ | 92 | $ | 5,469 | ||||||||
2016 | $ | 118 | $ | - | ||||||||
2017 | $ | 94 | $ | 2,097 | ||||||||
2018 | $ | 21 | $ | 6,261 | ||||||||
2019 | $ | - | $ | - | ||||||||
$ | 325 | $ | 13,827 |
41 |
LEXINGTON REALTY TRUST
Mortgage Loans Receivable
3/31/2015
Collateral | Current | |||||||||||||||||||||||||
Estimated | ||||||||||||||||||||||||||
Annual | ||||||||||||||||||||||||||
Loan Balance | Interest | Maturity | Debt Service | Balloon Payment | Escrow Balance | |||||||||||||||||||||
City | State | ($000)(1) | Rate | Date | ($000)(2) | ($000) | ($000) | |||||||||||||||||||
Office | Southfield (3) | MI | $ | 3,310 | 4.55 | % | 02/2015 | $ | - | $ | 5,810 | $ | - | |||||||||||||
Westmont (4) | IL | $ | 12,221 | 6.45 | % | 10/2015 | $ | - | $ | 25,731 | $ | 2,577 | ||||||||||||||
Retail | Austin | TX | $ | 2,914 | 16.00 | % | 10/2018 | $ | - | $ | 5,104 | $ | - | |||||||||||||
Various | Various | $ | 1,003 | 8.00 | % | 02/2021 | $ | 219 | $ | - | $ | - | ||||||||||||||
Various | Various | $ | 463 | 8.00 | % | 12/2021 | $ | 94 | $ | - | $ | - | ||||||||||||||
Various | Various | $ | 602 | 8.00 | % | 03/2022 | $ | 112 | $ | - | $ | - | ||||||||||||||
Hospital | Kennewick | WA | $ | 85,314 | 9.00 | % | 05/2022 | $ | 7,438 | $ | 87,245 | $ | - | |||||||||||||
Total Mortgage Loans Receivable | $ | 105,827 | $ | 7,863 | $ | 123,890 | $ | 2,577 |
Footnotes
(1) Includes accrued interest receivable, loan losses, and net origination fees.
(2) Remaining collections for debt less than 12 months to maturity, all others are debt service for next 12 months.
(3) Borrower in default. Loan balance includes $2.5 million loan loss. Lexington foreclosed on the borrower subsequent to 03/31/2015.
(4) Escrow balance includes $2.5 million in a collateral securities account maintained by the borrowers. Borrowers are in default and Lexington commenced foreclosure proceedings. Tenant in property terminated the lease effective 11/30/2013 for a termination payment of $1.3 million. Loan balance includes $13.9 million loan loss.
42 |
LEXINGTON REALTY TRUST
Partnership Interests
Three months ended March 31, 2015
($000)
Noncontrolling Interest Properties - Partners' Proportionate Share (1) | ||||
EBITDA | $ | 115 | ||
Interest expense | $ | 12 | ||
Depreciation and amortization | $ | 114 | ||
Non-Consolidated Net Leased Real Estate - Lexington's Share | ||||
EBITDA | $ | 870 | ||
Interest expense | $ | 160 | ||
Footnotes | ||||
(1) Excludes discontinued operations and OP unit noncontrolling interests. |
43 |
LEXINGTON REALTY TRUST
Selected Balance Sheet and Income Statement Account Data
3/31/2015
($000)
Balance Sheet | ||||
Other assets | $ | 24,240 | ||
The components of other assets are: | ||||
Deposits | $ | 2,807 | ||
Equipment | 164 | |||
Prepaids | 4,477 | |||
Other receivables | 1,184 | |||
Deferred lease incentives | 15,484 | |||
Other | 124 | |||
Accounts payable and other liabilities | ||||
The components of accounts payable and other liabilities are: | $ | 32,915 | ||
Accounts payable and accrued expenses | $ | 11,028 | ||
CIP accruals and other | 2,277 | |||
Taxes | 2,343 | |||
Deferred tax liability | 5 | |||
Deferred lease and loan costs | 6,672 | |||
Subordinated notes | 2,693 | |||
Deposits | 1,044 | |||
Escrows | 2,868 | |||
Transaction / build-to-suit costs | 293 | |||
Interest rate swap derivative liability | 3,692 | |||
Income Statement - Three months ended March 31, 2015 | ||||
Non-cash interest expense, net | $ | (368 | ) |
44 |
Investor Information
Transfer Agent |
Computershare | Overnight Correspondence: |
PO Box 30170 | 211 Quality Circle, Suite 210 |
College Station, TX 77842-3170 | College Station, TX, 77845 |
(800) 850-3948 | |
www-us.computershare.com/investor |
Investor Relations |
Patrick Carroll | |
Executive Vice President and Chief Financial Officer | |
Telephone (direct) | (212) 692-7215 |
Facsimile (main) | (212) 594-6600 |
pcarroll@lxp.com |
Research Coverage |
Bank of America/Merrill Lynch | KeyBanc Capital Markets Inc. | |||
James Feldman | (646) 855-5808 | Craig Mailman | (917) 368-2316 | |
Barclays Capital | Ladenburg Thalmann & Co., Inc. | |||
Ross L. Smotrich | (212) 526-2306 | Daniel P. Donlan | (212) 409-2056 | |
Evercore Partners | Stifel Nicolaus | |||
Sheila K. McGrath | (212) 497-0882 | John W. Guinee | (443) 224-1307 | |
J.P. Morgan Chase | Wells Fargo Securities, LLC | |||
Anthony Paolone | (212) 622-6682 | Todd J. Stender | (212) 214-8067 | |
Jeffries & Company, Inc. | ||||
Omotayo Okusanya | (212) 336-7076 |
45 |
Appendix A
Land, Infrastructure & Credit Tenant Finance Group
Supplemental Operating and Financial Data
March 31, 2015
LAND, INFRASTRUCTURE & CREDIT TENANT FINANCE GROUP
SUPPLEMENTAL REPORTING PACKAGE
March 31, 2015
Table of Contents
Section | Page | |
Portfolio Data | ||
Balance Sheet, Income Statement and Company FFO/FAD | A-3 | |
Select Data | A-4 | |
Top 10 Tenants or Guarantors | A-5 | |
Property Leases and Vacancies – Consolidated Portfolio | A-6 | |
Mortgages and Notes Payable | A-7 |
LAND, INFRASTRUCTURE, & CREDIT TENANT FINANCE GROUP |
Balance Sheet, Income Statement and Company FFO/FAD |
3/31/2015 |
($000) |
Balance Sheet | ||||
Land | $ | 321,448 | ||
Buildings, improvements and real estate intangibles, net | 325,667 | |||
Cash | 1,685 | |||
Deferred - accounts receivable | 45,467 | |||
Other assets | 19,652 | |||
Total Assets | $ | 713,919 | ||
Mortgages payable | $ | 441,112 | ||
Other liabilities | 5,637 | |||
Total Liabilities | 446,749 | |||
Equity | 267,170 | |||
Total Liabilities and Equity | $ | 713,919 | ||
Income Statement and Company FFO/FAD | ||||
Revenue: | ||||
Rental | $ | 22,614 | ||
Other | 223 | |||
Expenses: | ||||
Depreciation and amortization | (5,433 | ) | ||
Property operating | (637 | ) | ||
Interest | (4,403 | ) | ||
Other | (28 | ) | ||
Net Income | 12,336 | |||
Adjustments: | ||||
Depreciation and amortization | 5,433 | |||
Other/transaction costs | 172 | |||
Company FFO | 17,941 | |||
GAAP to Cash rent adjustment | (8,999 | ) | ||
Tenant improvements | (5 | ) | ||
Company FAD | $ | 8,937 |
A-3 |
LAND, INFRASTRUCTURE, & CREDIT TENANT FINANCE GROUP
Select Data
3/31/2015
($000)
Other Revenue Data
GAAP Base Rent | ||||||||
Three months ended | ||||||||
Asset Class | 3/31/15 (1) | 3/31/15 Percentage | ||||||
Land and Infrastructure | $ | 15,269 | 67.5 | % | ||||
Office | $ | 5,149 | 22.8 | % | ||||
Industrial | $ | 1,764 | 7.8 | % | ||||
Specialty | $ | 432 | 1.9 | % | ||||
$ | 22,614 | 100.0 | % |
Credit Ratings (2) | GAAP Base Rent | |||||||
Three months ended | ||||||||
3/31/15 (1) | 3/31/15 Percentage | |||||||
Investment Grade | $ | 6,967 | 30.8 | % | ||||
Non-Investment Grade | $ | 531 | 2.4 | % | ||||
Unrated | $ | 15,116 | 66.8 | % | ||||
$ | 22,614 | 100.0 | % |
Weighted-Average Lease Term - Cash Basis
As of 3/31/15 with | ||||
As of 3/31/15 | Lease Term End at First Purchase Option Date | |||
38.1 years | 17.0 years |
Base Rent Estimates for Current Assets
Year | Cash (3) | GAAP (3) | Projected Straight-Line / GAAP Adjustment | |||||||||
2015 - remaining | $ | 41,528 | $ | 68,386 | $ | (26,858 | ) | |||||
2016 | $ | 56,078 | $ | 91,335 | $ | (35,257 | ) |
Footnotes
(1) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated properties owned as of 3/31/2015. |
(2) | Credit ratings are based upon either tenant, guarantor or parent. |
(3) | Amounts assume (1) lease terms for non-cancellable periods only and (2) no new or renegotiated leases are entered into after 3/31/2015. |
A-4 |
LAND, INFRASTRUCTURE, & CREDIT TENANT FINANCE GRIOUP
Top 10 Tenants or Guarantors
3/31/2015
Top 10 Tenants or Guarantors - Cash Basis
Tenants or Guarantors | Number of Leases | Sq. Ft. Leased | Sq. Ft. Leased as a Percent of Consolidated Portfolio (2) | Cash Base Rent as of 3/31/2015 ($000) (1) | Percent of Cash Base Rent as of 3/31/2015 ($000) (1) (2) | |||||||||||||
Xerox Corporation | 1 | 202,000 | 8.8 | % | $ | 1,767 | 13.0 | % | ||||||||||
LG-39 Ground Tenant LLC | 1 | 0 | 0.0 | % | 1,438 | 10.6 | % | |||||||||||
United States of America | 1 | 169,585 | 7.4 | % | 1,397 | 10.3 | % | |||||||||||
Industrial Terminals Management, L.L.C. | 1 | 132,449 | 5.7 | % | 1,348 | 9.9 | % | |||||||||||
FC-Canal Ground Tenant LLC | 1 | 0 | 0.0 | % | 1,232 | 9.0 | % | |||||||||||
FedEx Corporation | 1 | 140,330 | 6.1 | % | 1,193 | 8.8 | % | |||||||||||
Cummins, Inc. | 1 | 390,100 | 16.9 | % | 1,148 | 8.4 | % | |||||||||||
AL-Stone Ground Tenant LLC | 1 | 0 | 0.0 | % | 1,125 | 8.3 | % | |||||||||||
New Jersey Natural Gas Company | 1 | 157,511 | 6.8 | % | 828 | 6.1 | % | |||||||||||
Vulcan Construction Materials, LP (Vulcan Materials Company) | 1 | 0 | 0.0 | % | 455 | 3.3 | % | |||||||||||
10 | 1,191,975 | 51.7 | % | $ | 11,931 | 87.6 | % |
Top 10 Tenants or Guarantors - GAAP Basis
Tenants or Guarantors | Number of Leases | Sq. Ft. Leased | Sq. Ft. Leased as a Percent of Consolidated Portfolio (2) | GAAP Base Rent as of 3/31/2015 ($000) (3) | Percent of GAAP Base Rent as of 3/31/2015 ($000) (3) (2) | |||||||||||||
LG-39 Ground Tenant LLC | 1 | 0 | 0.0 | % | $ | 4,343 | 19.2 | % | ||||||||||
FC-Canal Ground Tenant LLC | 1 | 0 | 0.0 | % | 3,722 | 16.5 | % | |||||||||||
AL-Stone Ground Tenant LLC | 1 | 0 | 0.0 | % | 3,397 | 15.0 | % | |||||||||||
Industrial Terminals Management, L.L.C. | 1 | 132,449 | 5.7 | % | 1,693 | 7.5 | % | |||||||||||
Xerox Corporation | 1 | 202,000 | 8.8 | % | 1,660 | 7.3 | % | |||||||||||
United States of America | 1 | 169,585 | 7.4 | % | 1,526 | 6.7 | % | |||||||||||
FedEx Corporation | 1 | 140,330 | 6.1 | % | 1,284 | 5.7 | % | |||||||||||
ZE-45 Ground Tenant LLC | 1 | 0 | 0.0 | % | 1,155 | 5.1 | % | |||||||||||
Cummins, Inc. | 1 | 390,100 | 16.9 | % | 1,135 | 5.0 | % | |||||||||||
New Jersey Natural Gas Company | 1 | 157,511 | 6.8 | % | 828 | 3.7 | % | |||||||||||
10 | 1,191,975 | 51.7 | % | $ | 20,743 | 91.7 | % |
Footnotes
(1) | Three months ended 3/31/2015 cash base rent recognized for consolidated properties owned as of 3/31/2015. |
(2) | Total shown may differ from detailed amounts due to rounding. |
(3) | Three months ended 3/31/2015 GAAP base rent recognized for consolidated properties owned as of 3/31/2015. |
A-5 |
LAND, INFRASTRUCTURE
AND CREDIT TENANT FINANCE GROUP
Consolidated Portfolio - 3/31/2015
Year
of Lease Expiration | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Property Type | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2015 ($000) (2) | GAAP
Base Rent as of 3/31/2015 ($000) (3) | 3/31/2015
Debt Balance ($000) | Debt Maturity | ||||||||||||||||||||
2017 | 12/31/2017 | 11411 North Kelly Ave. | Oklahoma City | OK | — | American Golf Corporation | Specialty | 13,924 | 119 | 81 | - | - | ||||||||||||||||||||
2019 | 7/31/2019 | 500 Jackson St. | Columbus | IN | — | Cummins, Inc. | Office | 390,100 | 1,148 | 1,135 | 24,119 | 07/2019 | ||||||||||||||||||||
2021 | 6/30/2021 | 1415 Wyckoff Rd. | Wall | NJ | — | New Jersey Natural Gas Company | Office | 157,511 | 828 | 828 | 18,834 | 01/2021 | ||||||||||||||||||||
2023 | 12/14/2023 | 3333 Coyote Hill Rd. | Palo Alto | CA | — | Xerox Corporation | Office | 202,000 | 1,767 | 1,660 | 52,299 | 12/2023 | ||||||||||||||||||||
2024 | 4/30/2024 | 113 Wells St. | North Berwick | ME | — | United Technologies Corporation | Industrial | 972,625 | 384 | 343 | 5,705 | 04/2019 | ||||||||||||||||||||
2025 | 12/31/2025 | 1700 47th Ave North | Minneapolis | MN | — | Owens Corning Roofing and Asphalt, LLC | Industrial | 18,620 | 137 | 137 | - | - | ||||||||||||||||||||
2026 | 8/31/2026 | 25500 State Hwy. 249 | Tomball | TX | — | Parkway Chevrolet, Inc. (Raymond Durdin & Jean W. Durdin) | Specialty | 77,076 | 357 | 351 | 8,663 | 11/2016 | ||||||||||||||||||||
2027 | 10/31/2027 | 11201 Renner Blvd. | Lenexa | KS | — | United States of America | Office | 169,585 | 1,397 | 1,526 | 37,894 | 11/2027 | ||||||||||||||||||||
2028 | 3/31/2028 | 29-01-Borden Ave./29-10 Hunters Point Ave. | Long Island City | NY | — | FedEx Ground Package System, Inc. (FedEx Corporation) | Industrial | 140,330 | 1,193 | 1,284 | 50,967 | 03/2028 | ||||||||||||||||||||
2029 | 1/31/2029 | 175 Holt Garrison Pkwy. | Danville | VA | — | Home Depot USA, Inc. | Land / Infrastructure | 0 | 65 | 54 | - | - | ||||||||||||||||||||
2032 | 4/30/2032 | 13930 Pike Rd. | Missouri City | TX | — | Vulcan Construction Materials, LP (Vulcan Materials Company) | Land / Infrastructure | 0 | 455 | 531 | - | - | ||||||||||||||||||||
2038 | 3/31/2038 | 13901/14035 Industrial Rd. | Houston | TX | — | Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC) | Land / Infrastructure | 132,449 | 1,348 | 1,693 | - | - | ||||||||||||||||||||
2055 | 1/31/2055 | 499 Derbyshire Drive | Venice | FL | — | Littlestone Brotherhood LLC | Land / Infrastructure | 31,180 | 248 | 374 | - | - | ||||||||||||||||||||
2112 | 10/31/2112 | 350 and 370-372 Canal St. | New York | NY | — | FC-Canal Ground Tenant LLC | Land / Infrastructure | 0 | 1,232 | 3,722 | 69,309 | 01/2027 | ||||||||||||||||||||
309-313 West 39th St. | New York | NY | — | LG-39 Ground Tenant LLC | Land / Infrastructure | 0 | 1,438 | 4,343 | 80,870 | 01/2027 | ||||||||||||||||||||||
8-12 Stone St. | New York | NY | — | AL-Stone Ground Tenant LLC | Land / Infrastructure | 0 | 1,125 | 3,397 | 63,259 | 01/2027 | ||||||||||||||||||||||
2113 | 10/31/2113 | 15 West 45th St. | New York | NY | — | ZE-45 Ground Tenant LLC | Land / Infrastructure | 0 | 375 | 1,155 | 29,193 | 01/2025 | ||||||||||||||||||||
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE | 100% Leased | 2,305,400 | $ | 13,616 | $ | 22,614 | $ | 441,112 |
Footnotes
(1) | Square feet leased or available. |
(2) | Three months ended 3/31/2015 cash rent. |
(3) | Three months ended 3/31/2015 GAAP rent. |
A-6 |
LAND, INFRASTRUCTURE & CREDIT TENANT FINANCE GROUP |
Consolidated Properties: Mortgages and Notes Payable |
3/31/2015 |
Property | Footnotes | Debt Balance ($000) | Interest Rate (%) | Maturity (a) | Current Estimated Annual Debt Service ($000) | Balloon Payment ($000) | ||||||||||||||
Tomball, TX | $ | 8,663 | 6.063 | % | 11/2016 | $ | 683 | $ | 8,041 | |||||||||||
North Berwick, ME | 5,705 | 3.560 | % | 04/2019 | 1,532 | - | ||||||||||||||
Columbus, IN | 24,119 | 2.210 | % | 07/2019 | 4,699 | 4,993 | ||||||||||||||
Wall, NJ | 18,834 | 6.250 | % | 01/2021 | 3,774 | - | ||||||||||||||
Palo Alto, CA | 52,299 | 3.970 | % | 12/2023 | 7,059 | - | ||||||||||||||
New York, NY | 29,193 | 4.100 | % | 01/2025 | 1,217 | 29,193 | ||||||||||||||
New York, NY | (b) | 213,438 | 4.660 | % | 01/2027 | 10,155 | 200,632 | |||||||||||||
Lenexa, KS | 37,894 | 3.700 | % | 11/2027 | 3,027 | 10,000 | ||||||||||||||
Long Island City, NY | 50,967 | 3.500 | % | 03/2028 | 4,538 | - | ||||||||||||||
Total/Wtg. Avg./Years Remaining (c) | $ | 441,112 | 4.272 | % | 10.5 | $ | 36,684 | $ | 252,859 |
Footnotes
(a) | Total based on weighted-average term to maturity shown in years based on debt balance. |
(b) | Loan is cross-collateralized on three properties. |
(c) | Total shown may differ from detailed amounts due to rounding. |
A-7 |
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Exhibit 99.2
Lexington Realty Trust PARTICIPANTS
Gabriella Reyes Lexington Realty Trust – Investor Relations
Will Eglin Lexington Realty Trust – Chief Executive Officer
Patrick Carroll Lexington Realty Trust – Chief Financial Officer
Richard Rouse Lexington Realty Trust - Vice Chairman and Chief Investments Officer
Third-Party PARTICIPANTS
Sheila McGrath Evercore ISI - Analyst
John Guinee Stifel Nicolaus - Analyst
Phil DeFelice Wells Fargo Securities - Analyst
Jean Nusensan JPMorgan - Analyst
Lexington Realty Trust PRESENTATION
Operator
Greetings and welcome to the Lexington Realty First Quarter 2015 Earnings Conference Call. (Operator Instructions). As a reminder this conference is being recorded. It is now my pleasure to turn the floor over to your host, Miss Gabriella Reyes Investor Relations. Please begin.
Gabriella Reyes - Lexington Realty Trust - IR
Hello and welcome to the Lexington Realty Trust first quarter 2015 conference call. The earnings press release was distributed over the wire this morning and the release and supplemental disclosure package will be furnished on the Form 8-K. In the press release and supplemental disclosure package Lexington has reconciled all historical non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg. G requirements. If you did not see receive a copy these documents are available on Lexington's website at www.lxp.com in the Investor section. Additionally we are hosting a live webcast of today's call which you can access in the same section.
At this time we would like 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 Lexington believes that 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 today's press release at from time to time in Lexington as filings with the SEC and include the successful consummation of any lease, acquisition, (inaudible) financing or other transaction or the final term of any such transaction. Lexington does not undertake a duty to update any forward-looking statements.
Joining me today from management are Will Eglin, Chief Executive Officer, Robert Roskind, Chairman, Richard Rouse, Vice Chairman and Chief Investments Officer and Patrick Carroll, Chief Financial Officer. Now, I will turn the call over to Will.
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Will Eglin - Lexington Realty Trust - CEO
Thanks, Gabby, and welcome, everyone, and thank you for joining the called to. I would like to begin by discussing our operating results and accomplishments for the quarter. For the first quarter of 2015 our company Funds from Operations were $0.26 per share. During the quarter we made an extraordinary amount of progress in the key areas of our business that affect our performance and we will discuss each of these in some detail today.
On the investment front in the first quarter we invested approximately $21.5 million in ongoing build-to-suit projects, made five acquisitions for approximately $197.3 million, placed a forward purchase under contract for $29.7 million and disposed of three office properties for approximately $35.2 million consistent with our portfolio management and capital recycling objectives. These objectives include reducing our exposure to suburban offers properties and monetizing multi tenants properties upon stabilization of occupancy and transitioning our portfolio so that more revenue is derived from long-term leases.
We are pleased to report that as of quarter-end our weighted average lease term was 12.4 years and approximately 72% of our revenue was derived from leases expiring after 2019. We also had a strong quarter of leasing executing leases totaling approximately 900,000 square feet and ending the quarter with 96.7% of our square footage leased, a 30 basis point improvement from last quarter. Renewal rents increased modestly on a GAAP basis an declined modestly on cash basis. We had two offers leases expire, which were the not renewed but announced today that the Lakewood, Colorado property has been leased with rent expected to commence in September. We also want to highlight the ongoing progress with respect to our refinancing strategy as we continue to execute on our plans to unencumber net operating income and extend our weighted average debt maturity while lowering our borrowing costs. During the quarter we retired $113.6 million of mortgage debt and unencumbered six properties with annual net operating income of $13.9 million. We placed $80.8 million of secured debt on two properties with annual net operating income of $6.3 million. As a result we extended our weighted average maturity to 7.1 years and lowered our weighted average debt cost 20 basis points to 4.3%.
Looking ahead we believe our single tenant investment pipeline continues to contain an attractive mix of purchases and build-to-suit projects and we are optimistic about our investment opportunities for the balance of 2015 and beyond. Based on transactions under contract we expect purchases to total approximately $350 million for the full year including the $197.3 million of transactions completed in the first quarter. Further we expect to fund approximately $105 million in under weight build-to-suit projects bringing the total to approximately $126 million for the year, which includes the $21.5 million, which we funded in the first quarter. In addition, we continue to see a sizable volume of opportunities and we are optimistic that our price line can continue to grow as the year progresses if we determine pricing is favorable and transactions are accretive. Cap rates on our build-to-suit and forward purchase pipeline average about 7.5% on a cash basis and 8.6% on a GAAP basis. While build-to-suits do not generate cash flow or funds from operations until construction is completed we believe this strategy can create significant value for shareholders by adding modern buildings with long-term leases to our portfolio and capturizing stabilized yields above current cap rates in the acquisition market. .
In addition, we believe the long-term leases with escalating rents that we have been adding to the portfolio are strengthening our future cash flows by extending our weighted average lease term, balancing our lease expiration schedule, reducing the average age of our portfolio and supporting our dividend growth objectives. We will continue to execute our disposition strategy and over the balance of the year we are primarily focused on realizing values in our multi tenant portfolio including See Harbor Center now under contract for more than $60 million, Transamerica Tower in Baltimore and Corporate Center at the Gardens in Palm Beach Gardens, Florida.
Secondarily we will be focused on sales in the single tenants suburban office component of our portfolio as we continue to rationalization our office footprint. Overall total disposition activity in 2015 could total $300 million to $350 million as we take advantage of market demand and pricing to meaningfully up grade our portfolio, further reduce our exposure to office properties and accelerate our transition to a company with far more revenue for long-term leases. Of this total multi tenants disposition could total $200 million to $225 million and other dispositions could total up to $100 million to $130 million.
Asset values continue to be strong and dispositions are an attractive option for us in view of our portfolio management objectives, especially as we look at monetizing certain formerly vacant or under occupied properties that we have leased to a high levels of occupancy. Such capital recycling will allow us to create liquidity to redeploy into our investment pipeline including our build-to-suit projects although this approach can have a near term dilutive impact on Funds from Operations it should result in the creation of long-term growth and value for shareholders.
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With regard to leasing we had an exceptional quarter and looking ahead there's very little lease roll over this year. We have one remaining office lease expiring in 2015 and are in discussions with most of our tenants with office leases expiring next year. We are hopeful that this will result in steady progress this year and our 2015 to 2016 single tenants office lease now represent just 4.4% of our revenue. Over all we have active lease negotiations under way on approximately 1.6 million square feet of space.
As of March 32, 2015 we had 1.9 million square feet of space which is vacant or subject to leases that expire through 2015. We believe that by the end of 2015 we can address roughly 40% of such expiring or vacant square footage primarily through dispositions and secondarily through releasing. As a result of our leasing activity and new investments, as of quarter end approximately 42% of our rental revenue for the quarter ended March 31, 2015 came from leases of ten years or longer and we are well on our way to achieve our interim goal of deriving at least half of our revenue from leases ten years or longer.
Our acquisition strategy will continue to focus on properties subject to long-term leases and when this target is achieved we expect to raise the target further and continue building a diversified portfolio of long-term net leases with stable and growing cash flow. With a weighted average lease term in our acquisition pipeline of approximately 19 years reaching these goals will back more visible as we add new assets to our portfolio. Our single tenant lease roll over through 2019 has been reduced to 27.7% of revenue from 31.2% a year-ago and we no longer have concentrated risk of lease roll over in any one year. By any measure we have made very good progress in managing down our shorter-term leases and extending our weighted average lease term which is now approximately 12.4 years on a cash basis. Each of these metrics is an important measure of cash flow stability and we will continue to be focused on further improvement.
The composition of our balance sheet continued to improve during the quarter and we have included details in our supplemental disclosure package on page 35 showing our credit metrics. With 68.4% of our NOI unencumbered we have reached our interim goal of having 65% to 70% of our assets unencumbered ahead of schedule and we have secured debt to less than 18% of gross assets. Our Company has few near-term debt maturities for the remainder of 2015 we believe approximately $86 million of secured balloon debt will leave the balance sheet in connection with dispositions and approximately $29 million of balloon maturities are expected to be refinanced with unsecured debt or retired with cash.
In addition, we will retire approximately $19 million of secured debt through regular principal amortization. In 2016 we have approximately $130 million of mortgage debt maturity at a weighted average interest rate of 5.9% representing a further opportunity to refinance in lower our borrowing costs. While we continue to unencomber but assets from time to time we may access secured financing when we believe it is advantageous to do so particularly in connection with ground sale lease back transactions or financing for a term longer than ten years is available or we can effectively monetize the remaining revenue from the assets such as in a credit tenant lease financing. In the first quarter we financed our ground investment on 45th Street in Manhattan with a mortgage loan of $29.2 million which was 95% loan-to-value. This loan has a term to maturity of ten years and a fixed interest rate of 4.1% providing substantial positive leverage for this investment. We also closed on a $51.7 million mortgage with a 13 year term to maturity and a fixed-rate of 3.5% on our FedEx facility in Long Island City which represented a loan of 100% of our acquisition costs. While we continue to unencumber assets we will finance fewer and fewer properties with mortgages but when we do so we will seek to maximize proceeds and take advantage of market opportunities when they are favorable. In Appendix A to our supplemental disclosure package we have added separate disclosure with respect to our land infrastructure and credits tenant finance group. This aspect of our portfolio includes our ground lease investments other property types where land constitutes the primary component of value and properties which have been monetized with credit tenant lease financing whereby virtually all of the rent is applied to interest and principal. These assets are financed entirely with secured debt and utilize higher leverage than in the rest of our business. Because of its unique return characteristics we believe this portfolio warrants additional disclosure. Half of our remaining secured debt is on these assets which constitute about $810 million of gross asset value.
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Turning to guidance, we raised the low end of our guidance range of company funds from operations per diluted share $0.01 per share so that the new range is $1.01 to $1.05 per share for 2015, which reflects a strong quarter and a generally more optimistic outlook. We continue to be very positive about our prospects and believe the year ahead will reflect additional progress and we remain committed to our strategy of enhancing cash flow growth and stability. Growing our portfolio in a disciplined manner with attractive long-term lease investments and maintaining a strong flexible balance sheet to allow us to act on opportunities as they arise. Now I will turn the call over to Pat who will take you through our results in more detail.
Patrick Carroll - Lexington Realty Trust - CFO
Thanks, Will. During the quarter Lexington had gross revenues of $108.6 million comprised primarily of lease rents and tenant reimbursements. The increase compared to the first quarter of 2014 of $4.5 million relates primarily to acquisition and build-to-suit projects coming online offset in part by sales of properties. For the quarter-ended March 31st, 2015 GAAP rents were in excess of cash rents by approximately $5.5 million. On Page 21 of the supplement we have included our estimates of both cash and GAAP rents for the remainder of 2015 and 2016 for leases in place at March 31st, 2015. This disclosure does not assume any tenant releasing a vacant space or tenant lease extension on properties with scheduled lease expirations. We have also exclude on Page 21 same-store NOI data and the weighted average lease term of our portfolio as of March 31, 2015 and 2014.
Property operating expenses increased $1 million primarily due to an increase in vacancy in certain properties that were previously 100% net-leased and the impact of management of certain properties being transferred between the tenant and us. Debt satisfaction gain of $10.4 million relates primarily to the deed (inaudible) completed during the quarter ended March 31, 2015. During the first quarter of 2015 we incurred impairment charges on a property of $1.1 million and recorded gains on sales of properties of $1.7 million. On page 43 of the supplement we have disclosed selected income statement data for our consolidated but not wholly-owned properties and our joint venture investments. We also have included net noncash interest recognized in the quarter ended March 31, 2015 on page 44 of the supplement. For the quarter ended March 31, 2015 our interest coverage was approximately 3.3 times and net debt to EBITDA of approximately 6.5 times.
Now turning to the balance sheet, we believe our balance sheet is strong as we continue to increase our financial flexibility and capacity. We had $72.1 million of cash at quarter end including cash classified as restricted, restricted cash balances relate to money primarily held with lenders as escrow deposits on mortgages. At year-end we had about $2.1 billion of consolidated debt outstanding which had a weighted average interest rates of 4.3% of which 96% is at fixed rates. We have entered into the LIBOR swaps on both the $255 million outstanding on our term loan which matures in 2019 and $250 million outstanding on our term loan which matures in 2018. The current spread components on our 2019 term loan can range from 1.5% to 2.25% and is currently 1.75% and on our 2018 term loan can range from 1.1% to 2.11% and is currently 1.35%. The significant components of other assets and liabilities are included on page 44 of the supplement.
During the quarter ended March 31st, 2015 we paid approximately $1.4 million in lease costs and approximately $1.1 million in tenant improvements. For the remainder of 2015 we project to spend approximately $23 million in these costs. We have also included on page 14 of the supplement the funding projections for our current build-to-suit projects and our (inaudible) commitments along with the historical NOI recognized on build-to-suit projects that have come online. As it relates to build-to-suit projects, since we fund the construction costs and of the takeout upon completion we do not recognize interest income during the construction nor any rental revenue until the project is complete and the tenant takes occupancy. Our basis in the project upon completion is the actual cash we spent in funding plus any capitalized costs we recognized I think accordance with GAAP. We capitalized interest using our overall borrowing rate. Now I will turn the call back over to Will.
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Will Eglin - Lexington Realty Trust - CEO
Thanks, Pat. Operator, I have no further comments at this time so we are ready for you to conduct a question-and-answer portion of the call.
QUESTION AND ANSWER
Operator
Thank you. (Operator Instructions). Our first question is coming from Sheila McGrath of Evercore ISI, please proceed with your question.
Sheila McGrath - Evercore ISI - Analyst
Yes. Good morning. Will, your stock has been under pressure this year and it seems to be below most any of the estimates. I wonder if you could talk about strategic initiatives to attempt to improve the valuation and your thoughts on considering a share buyback.
Will Eglin - Lexington Realty Trust - CEO
Sure. You know, Sheila, if you look over a couple year period, if we look at our Company two years arguably we traded at a big premium to net asset value and today we probably trade at a discount that's comparably big. And yet during that two-year period our office portfolio, we think, has gotten much stronger. We have a weighted average lease term overall in our office portfolio of more than 7 years today and more than half of our revenue is from investment-grade tenants and many of our rents have been mark-to-market during an environment where it hasn't been so good for landlords.
So you are right to point out there's been a precipitous drop in the share price recently and we think there is a fairly sizable discount between where we trade and the private value of the Company's assets. I guess the easiest way for the shareholders to benefit from that pricing disconnect is via a share repurchase and so that is something that should be on the table for us as we look at ways to add value for shareholders. As long as we could do it in a way that's leverage neutral and fits into the context of our, you know, other funding commitments with respect to build-to-suit. I think beyond that, in spite of what I think is a vastly improved office portfolio, shareholders have been extremely concerned about it and we're going to continue to do work on the office portfolio. So far we have been shaping it with one off dispositions but it's certainly possible given the frothiness of investment sales market and the leverage that's available to private buyers that we would be more active on the disposition front and that could be a source of liquidity for share repurchases.
Sheila McGrath - Evercore ISI - Analyst
Okay. Is there a current buy back program in place or not yet?
Joseph Bonventre - Lexington Realty Trust
There's an approved plan, but it would be, you know, brought to the Board again. It hasn't been approved since, I think, 2007.
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Sheila McGrath - Evercore ISI - Analyst
Okay. Another two quick questions. In the release you mentioned in the commentary renewal discussions are under way with most of 2016 maturities. Could you just help us out there. You know, of the 2016 expirations are there any known vacancies and do you feel pretty good about the office releasing prompts at this point in 2016.
Will Eglin - Lexington Realty Trust - CEO
We do. I think the two offers leases that would be on the watch list for move outs would be Garland, Texas and Bremerton, Washington and on the industrial side we have a facility that we lease to Michelin in Michigan, but beyond that we think that tenant retention is going to be high and that the net impact of renewal rents will probably be about neutral in relation to expiring rents so. We have a period of time where we think things will stabilize with respect to retention and mark to market.
Sheila McGrath - Evercore ISI - Analyst
Okay. Last question. On Transamerica, Sea Harbor, how has the pricing and interest level been since you kind of launched that effort versus your expectations and potential timing of those sales and are those sales already in your guidance?
Will Eglin - Lexington Realty Trust - CEO
Yes. All those sales are in our guidance for the year. Sea Harbor is under contract, the cap rate there is in the low sevens so we do expect that that will close later this quarter. We have been in the market with Transamerica tower and there has been very strong investor interest, but we are not at the point of having a contract to announce. So I would, as I think about that sale that's, I would think likely a third quarter event, perhaps early in the third quarter. So those would be two significant multi-tenant disposition for us that are consistent with our strategy of leasing buildings up to stabilization and turning them into cash to put back into our single tenant business. And beyond Transamerica we would expect to put our Palm Beach Gardens, Florida property into the market for disposition as well.
Sheila McGrath - Evercore ISI - Analyst
Okay. Great. Thank you.
Operator
Thank you. Our next question is from coming John Guinee of Stifel. Please proceed with your question.
John Guinee - Stifel Nicolaus - Analyst
Just following up Sheila, which I think you may have answered question but let me get it a little more explicit. Is it safe to say you are not issuing comment at under ten bucks a share?
Will Eglin - Lexington Realty Trust - CEO
Comment is not on our radar screen.
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John Guinee - Stifel Nicolaus - Analyst
Okay. Thank you. Second, did the investors get cold feet on Transamerica (inaudible) given all the wonderful publicity Baltimore received in the last few weeks.
Will Eglin - Lexington Realty Trust - CEO
I don't think so. I think investors view of Baltimore hasn't been changed that much. (Multiple Speakers) degree of interest and no indications of retrading on valuation on that asset.
John Guinee - Stifel Nicolaus - Analyst
Okay. Just a curiosity question. Little Stone Brotherhood Venice, Florida, which is sort of a retirement community sounds like a possible cult investment. What is it?
Patrick Carroll - Lexington Realty Trust - CFO
Golf course.
John Guinee - Stifel Nicolaus - Analyst
What?
Will Eglin - Lexington Realty Trust - CEO
A golf course.
John Guinee - Stifel Nicolaus - Analyst
And why is a golf course named Little Stone Brotherhood?
Patrick Carroll - Lexington Realty Trust - CFO
That's the tenant.
John Guinee - Stifel Nicolaus - Analyst
Okay. Hey, thanks.
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Operator
Thank you. Our next question is come interesting Phil DeFelice of Wells Fargo Securities. Please proceed with your question.
Phil DeFelice - Wells Fargo Securities - Analyst
Can you provide an update for what you are seeing in the build-to-suit space as far as competition and pricing to stabilized assets?
Will Eglin - Lexington Realty Trust - CEO
We're seeing good transaction flow in the build-to-suit area, Phil. You know, there's no question that pricing is competitive and given the recent move in interest rates and changes in our own share price we have back a little bit more cautious toward making forward commitments. So the premium available in the forward market has narrowed substantially in relation to straight up acquisitions so we think it's prudent to be cautious about forwards, especially looking at forwards that might take two years to deliver.
Phil DeFelice - Wells Fargo Securities - Analyst
So the pipeline's currently close to $400 million is there a level that you feel comfortable with at this point?
Will Eglin - Lexington Realty Trust - CEO
You know, there are a couple of transactions that we might add to the portfolio from a build-to-suit standpoint, but I would not want to, you know, in the context of 2016 I would want to probably limit our funding budget to a few hundred million dollars at this point. And we'll see how this move in interest rate affects the market and how the decline in share price for all the public net-lease companies affects pricing in that segment as well.
Phil DeFelice - Wells Fargo Securities - Analyst
Okay. Thank you. And then can you talk about your lease extension during the quarter for the 300,000 square foot industrial facility in Plymouth, Indiana? It looks like the lease is tended next year. Was there a reason for this and do you anticipate (inaudible) issues that stays beyond that extension?
Will Eglin - Lexington Realty Trust - CEO
Our expectation right now is that it's more likely that Bay Valley Foods will stay longer-term, but they were not in a position to renew for longer than 18 months so our expectation is that they will want to stay in the facility and we're having continuing discussions with them.
Phil DeFelice - Wells Fargo Securities - Analyst
Okay. That makes sense. Thanks, guys.
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Operator
Thank you. Our next question is coming from Jean [Nusendan] of JPMorgan. Please proceed with your question.
Jean Nusensan - JPMorgan - Analyst
Quick question on the 155 incremental acquisitions for the year. Is any of that under contract?
Will Eglin - Lexington Realty Trust - CEO
We do. That's the Preferred freezer facility that's scheduled to close in the fourth quarter and it's on our, if you go to the supplemental we have a schedule that shows that as a forward funding commitment.
Jean Nusensan - JPMorgan - Analyst
Got it. Can you just talk about.
Patrick Carroll - Lexington Realty Trust - CFO
On page 14.
Will Eglin - Lexington Realty Trust - CEO
On page 14.
Jean Nusensan - JPMorgan - Analyst
Got it. Okay. (inaudible). Can you just talk about what component of the portfolio, in your view, is core versus non-core i.e. what you would ultimately want to sell to redeploy?
Will Eglin - Lexington Realty Trust - CEO
Well, anything that's in the multi-tenant piece we view as a source of liquidity. The strategy there is when we have an empty building it needs to be converted to multi-tenant in most cases we will lease it up to stabilization and then turn that into cash. So right now we have more than a couple hundred million dollars of real estate there that's occupancy of above 90% so that would be a logical place for us to focus. We have been selling out of the retail portfolio slowly but that's a very small component of value and we have, beyond that, an interest in continuing to shape our suburban office portfolio so it's a smaller part of our business overall and ends up being concentrated in fewer markets that are characterized by having many large corporate users in case we have vacancy.
Jean Nusensan - JPMorgan - Analyst
Got it. Final question on the acquisition (inaudible), has your focus shifted at quarters on the kind of product that you're underwriting?
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Richard Rouse - Lexington Realty Trust - Vice Chairman and Chief Investments Officer
Yes. It's certainly more oriented towards industrial. This is Dick Rouse. Certainly more oriented towards industrial but keep in mind that we do view developers as our principal clients so if a developer, that we've done business with in the past particularly, brings us an office product we're not going to just pass it up just because it's office. If it's a long-term lease to a good credit we'll certainly consider it but we certainly prefer industrial.
Jean Nusensan - JPMorgan - Analyst
Got it. Thank you.
Operator
Thank you. Our next question is a follow-up coming from John Guinee of Stifel. Please proceed with your question.
John Guinee - Stifel Nicolaus - Analyst
Yes. Richmond, Virginia who is your tenant there? Is that the (inaudible) deal?
Will Eglin - Lexington Realty Trust - CEO
No.
John Guinee - Stifel Nicolaus - Analyst
Who's the tenant in Richmond, the big office building.
Will Eglin - Lexington Realty Trust - CEO
Being built?
John Guinee - Stifel Nicolaus - Analyst
Yes.
Patrick Carroll - Lexington Realty Trust - CFO
It's Maguire Woods, the law firm.
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John Guinee - Stifel Nicolaus - Analyst
Okay. Got you. Sorry. Alright. The second question Richland, Washington, Preferred Freezer Services, Detroit, Michigan Chrysler Group. The freezer is $340 a square foot, the Chrysler Group is $156 a foot. How much of that is base building, how much of that is specialty improvements and how good is the credit on these asset nest on these tenants?
Will Eglin - Lexington Realty Trust - CEO
Well, Chrysler we view as a very good credit and recall that Preferred Freezer Services is a 20-year contract with ConAgra on that facility, John, so that the ultimate credit behind the lease is very strong.
Richard Rouse - Lexington Realty Trust - Vice Chairman and Chief Investments Officer
And I think the other thing that is about the transaction is that that freezer facility is, I believe, 110 feet tall so it's a clear heighth of a 110 feet versus your normal distribution center of let's say 30 feet. So you really need to look at the price per cubic foot as opposed to square foot.
Will Eglin - Lexington Realty Trust - CEO
And you have got 250,000 square feet that could be refrigerated do you know to 10 below so it's an expensive building, John.
John Guinee - Stifel Nicolaus - Analyst
It sure is. Alright. Thank you.
Operator
Sir, did you have any additional questions?
John Guinee - Stifel Nicolaus - Analyst
Oh, no thanks.
Operator
Thank you. At this time I would like to turn the floor back over to management for any additional or closing comments.
Will Eglin - Lexington Realty Trust - CEO
Well, thanks again to all of you for joining us this morning. We continue to be very excited about our prospects for this year and beyond and as always we appreciate your participation and support. If you would like to receive our quarterly supplemental package please contact Gabriella Reyes or you can find additional information on the Company at our website at www.lxp.com. Thanks again.
Operator
Ladies and gentlemen, thank you for your participation. This concludes today's teleconference. You may disconnect your lines at this time and have a wonderful day.
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