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 5, 2016
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 5, 2016, we issued a press release announcing our financial results for the quarter ended March 31, 2016. 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 5, 2016, we made available supplemental information, which we refer to as the Quarterly Earnings and Supplemental Operating and Financial Data, March 31, 2016, a copy of which is furnished herewith as Exhibit 99.1.
Also on May 5, 2016, 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. Information contained on our web site is not incorporated by reference into this Current Report on Form 8-K.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
99.1 | Quarterly Earnings and Supplemental Operating and Financial Data, March 31, 2016. | |
99.2 | May 5, 2016 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 6, 2016 | By: | /s/ Patrick Carroll | |
Patrick Carroll | |||
Chief Financial Officer |
Exhibit Index
99.1 | Quarterly Earnings and Supplemental Operating and Financial Data, March 31, 2016. |
99.2 | May 5, 2016 Conference Call Transcript. |
Exhibit 99.1
Quarterly Earnings and
Supplemental Operating and Financial Data
March 31, 2016
LEXINGTON REALTY TRUST
SUPPLEMENTAL REPORTING PACKAGE
March 31, 2016
Table of Contents
Section | Page | |
First Quarter 2016 Earnings Press Release | 3 | |
Portfolio Data | ||
2016 First Quarter Investment/Capital Recycling Summary | 13 | |
Build-To-Suit Projects | 14 | |
2016 First Quarter Financing Summary | 15 | |
2016 First Quarter Leasing Summary | 16 | |
Other Revenue Data | 17 | |
Portfolio Detail By Asset Class | 19 | |
Portfolio Composition | 20 | |
Components of Net Asset Value | 21 | |
Top Markets | 22 | |
Single-Tenant Office Markets | 23 | |
Tenant Industry Diversification | 24 | |
Top 10 Tenants or Guarantors | 25 | |
Lease Rollover Schedules – GAAP Basis | 26 | |
Property Leases and Vacancies – Consolidated Portfolio | 28 | |
Select Credit Metrics Summary | 36 | |
Historical Credit Metrics Summary | 37 | |
Financial Covenants | 38 | |
Mortgages and Notes Payable | 39 | |
Debt Maturity Schedule | 42 | |
Mortgage Loans Receivable | 43 | |
Partnership Interests | 44 | |
Selected Balance Sheet and Income Statement Account Data | 45 | |
Investor Information | 46 |
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, (2) Lexington’s ability to achieve its estimate of Company FFO for the year ending December 31, 2016, (3) the successful consummation of any lease, acquisition, build-to-suit, disposition, 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 2016 RESULTS
New York, NY - Thursday, May 5, 2016 - 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, 2016.
First Quarter 2016 Highlights
• | Generated Company Funds From Operations (“Company FFO”) of $72.1 million, or $0.30 per diluted common share. |
• | Disposed of three properties and a non-consolidated investment in an office property for aggregate gross disposition proceeds of $64.9 million. |
• | Acquired an industrial property in Detroit, Michigan for $29.7 million. |
• | Invested $33.7 million in on-going build-to-suit projects. |
• | Completed 1.7 million square feet of new leases and lease extensions with overall portfolio 96.7% leased at quarter end. |
• | Obtained $57.5 million 15-year non-recourse financing, which bears interest at a 5.2% fixed rate and is secured by the Richmond, Virginia property. |
• | Retired $8.3 million of secured debt and $30.0 million of credit facility borrowings. |
• | Repurchased 1.2 million common shares at an average price of $7.56 per share. |
Subsequent Events
• | Entered into an agreement to fund the construction of an industrial facility in Opelika, Alabama for a maximum commitment of $37.0 million. Upon completion, the property will be net leased for a 25-year term. |
• | Disposed of 15 W. 45th Street land investment for gross proceeds of $37.5 million and an office property for gross proceeds of $19.0 million. |
T. Wilson Eglin, President and Chief Executive Officer of Lexington, stated “We had an excellent first quarter with increased revenues and strong Company FFO of $0.30 per share. Our disposition program is fully underway, and during the quarter we sold approximately $58 million of consolidated properties at an average cap rate of 6.5% and we just announced the $37.5 million sale of our West 45th Street land investment at a 4.1% cap rate. Our overall portfolio was 96.7% leased with elevated leasing volume of 1.7 million square feet including some significant 2016 and 2017 lease renewals. Given a strong first quarter and our expectations for the remainder of the year, we are tightening our 2016 Company FFO guidance to an expected range of $1.03-$1.08 per share.”
Mr. Eglin added, “Looking ahead, we are making good progress with our sales program and the execution of our plan is expected to reduce leverage, generate strong cash flows in relation to our dividend and share price, and improve the overall quality of our portfolio.”
3 |
FINANCIAL RESULTS
Revenues
For the quarter ended March 31, 2016, total gross revenues were $111.6 million, a 3.0% increase compared with total gross revenues of $108.4 million for the quarter ended March 31, 2015. The increase is primarily attributable to revenue generated from property acquisitions and new leases signed, offset by 2015 and 2016 property sales and lease expirations.
Company FFO
For the quarter ended March 31, 2016, Lexington generated Company FFO of $72.1 million, or $0.30 per diluted share, compared to Company FFO for the quarter ended March 31, 2015 of $64.5 million, or $0.26 per diluted share. The calculation of Company FFO and a reconciliation to net income 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, 2016 of $0.17 per common share/unit, which was paid on April 15, 2016 to common shareholders/unitholders of record as of March 31, 2016. Lexington also declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred Shares”), which is payable on August 15, 2016 to Series C Preferred Shareholders of record as of July 29, 2016.
Net Income Attributable to Common Shareholders
For the quarter ended March 31, 2016, net income attributable to common shareholders was $48.1 million, or $0.21 per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2015 of $31.8 million, or $0.14 per diluted share.
OPERATING ACTIVITIES
During the quarter, Lexington acquired the following property:
ACQUISITIONS | ||||||||||||||||||||||||
Tenant | Location | Property Type | Initial Basis ($000) | Initial Annualized Cash Rent ($000) | Initial Cash Yield | Estimated GAAP Yield | Approximate Lease Term (Yrs) | |||||||||||||||||
FCA US LLC (f/k/a Chrysler Group LLC) | Detroit, MI | Industrial | $ | 29,697 | $ | 2,204 | 7.4 | % | 7.4 | % | 20 |
4 |
During the quarter, Lexington funded $33.7 million of the projected costs of the following projects:
ON-GOING BUILD-TO-SUIT PROJECTS | ||||||||||||||||||||||||||
Location | Sq. Ft. | Property Type | Lease Term (Years) | Maximum Commitment/ Estimated Completion Cost ($000) | GAAP Investment Balance as of 3/31/2016 ($000) | Estimated Acquisition/ Completion Date | Estimated Initial Cash Yield | Estimated GAAP Yield | ||||||||||||||||||
Anderson, SC | 1,325,000 | Industrial | 20 | $ | 70,012 | $ | 37,051 | 2Q 16 | 5.9 | % | 7.3 | % | ||||||||||||||
Lake Jackson, TX | 664,000 | Office | 20 | 166,164 | 63,278 | 4Q 16 | 7.3 | % | 8.9 | % | ||||||||||||||||
Charlotte, NC | 201,000 | Office | 15 | 62,445 | 14,968 | 1Q 17 | 8.3 | % | 9.5 | % | ||||||||||||||||
Houston, TX(1) | 274,000 | Retail/Specialty | 20 | 86,491 | 53,536 | 3Q 16 | 7.5 | % | 7.5 | % | ||||||||||||||||
2,464,000 | $ | 385,112 | $ | 168,833 |
(1) | Lexington has a 25% interest as of March 31, 2016. Lexington is providing construction financing up to $56.7 million to the joint venture of which $23.6 million has been funded as of March 31, 2016. Lease contains annual CPI increases. |
Subsequent to March 31, 2016, Lexington entered into an agreement to fund the construction of a 165,000 square foot industrial facility in Opelika, Alabama for a maximum cost of $37.0 million (7.05% initial capitalization rate). Upon completion, estimated to be May 2017, the property will be net leased for a 25-year term and the lease provides for 2.0% annual escalations.
During the quarter, Lexington sold the following properties:
PROPERTY DISPOSITIONS | ||||||||||||||
Primary Tenant | Location | Property Type | Gross Sale Price ($000) | Annualized NOI(1) ($000) | Month of Disposition | |||||||||
Parkway Chevrolet, Inc. | Tomball, TX | Specialty/ Retail | $ | 17,575 | (2) | $ | 1,459 | February | ||||||
Multi-Tenant / The Weiss Group, LLC | Palm Beach Gardens, FL | Multi-tenant/ Office | 30,050 | 1,457 | March | |||||||||
AT&T Services, Inc. | Harrisburg, PA | Office | 10,600 | 887 | March | |||||||||
$ | 58,225 | $ | 3,803 |
(1) | Quarter prior to sale annualized. |
(2) | Mortgage of $8.3 million was satisfied at closing and the gross sale price excludes mortgage defeasance costs of $0.3 million reimbursed by purchaser. |
In addition, Lexington disposed of its interest in a non-consolidated investment in an office property in Russellville, Arkansas, receiving $6.7 million in connection with the sale, and sold a vacant land parcel for $0.4 million.
In April 2016, Lexington sold its 15 West 45th Street land investment for gross proceeds of $37.5 million at a 4.1% capitalization rate. The buyer assumed the $29.2 million mortgage in connection with the sale. In May 2016, Lexington sold an office property in Lake Forest, California for gross proceeds of $19.0 million at a 7.9% capitalization rate.
5 |
LEASING
As of March 31, 2016, Lexington's portfolio was 96.7% leased, excluding properties subject to secured mortgage loans currently in default.
During the first quarter of 2016, Lexington executed the following new and extended leases:
LEASE EXTENSIONS | ||||||||||||||
Location | Primary Tenant(1) | Prior Term | Lease Expiration Date | Sq. Ft. | ||||||||||
Office | ||||||||||||||
1 | Phoenix | AZ | Avnet, Inc. | 02/2023 | 08/2026 | 176,402 | ||||||||
2 | Milford | OH | Siemens Corporation | 09/2016 | 04/2026 | 221,215 | ||||||||
2 | Total office lease extensions | 397,617 | ||||||||||||
Industrial/Multi-Tenant | ||||||||||||||
1 | Rockford | IL | Pierce Packaging Co. | 12/2016 | 12/2019 | 93,000 | ||||||||
2 | Antioch | TN | Wirtgen America, Inc. | MTM | 12/2016 | 73,500 | ||||||||
3 | Memphis | TN | Sears, Roebuck and Co./Sears Logistic Services | 02/2017 | 02/2027 | 780,000 | ||||||||
4 | Winchester | VA | Kraft Heinz Foods Company | 05/2016 | 05/2021 | 344,700 | ||||||||
4 | Total industrial lease extensions | 1,291,200 | ||||||||||||
6 | Total lease extensions | 1,688,817 | ||||||||||||
NEW LEASES | ||||||||||||||
Location | Lease Expiration Date | Sq. Ft. | ||||||||||||
Office/Multi-Tenant | ||||||||||||||
1 | Honolulu | HI | N/A | QTQ | 1,900 | |||||||||
2 | Philadelphia | PA | N/A | 01/2027 | 1,975 | |||||||||
3 | Charleston | SC | Hagemeyer North America, Inc. | 06/2019 | 20,424 | |||||||||
3 | Total new office leases | 24,299 | ||||||||||||
9 | TOTAL NEW AND EXTENDED LEASES | 1,713,116 |
(1) | Leases greater than 10,000 square feet. |
BALANCE SHEET/CAPITAL MARKETS
In February 2016, Lexington financed its office property in Richmond, Virginia with a $57.5 million non-recourse secured mortgage. The loan bears interest at a fixed rate of 5.2% and matures in 2031.
During 2015, Lexington announced a 10.0 million common share repurchase authorization. In the first quarter of 2016, Lexington repurchased 1,184,113 common shares at an average price of $7.56 per share, bringing the total common shares repurchased under this authorization to 3,400,912 common shares at an average price of $8.04 per share.
6 |
2016 EARNINGS GUIDANCE
Lexington is tightening its Company FFO guidance for the year ended March 31, 2016 to an expected range of $1.03 to $1.08 per diluted share from a range of $1.00 to $1.10 per diluted share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.
FIRST QUARTER 2016 CONFERENCE CALL
Lexington will host a conference call today, Thursday, May 5, 2016, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2016. 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 19, 2016, at 877-870-5176 or 858-384-5517, pin code for both numbers is 13635173. 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 (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity and debt investments in single-tenant net-leased commercial properties and land across the United States. Lexington seeks to expand its portfolio through build-to-suit transactions, sale-leaseback transactions and acquisitions. For more information or to follow Lexington on social media, visit www.lxp.com.
Contact:
Investor or Media Inquiries for Lexington Realty Trust:
Heather Gentry, Senior Vice President of Investor Relations
Lexington Realty Trust
Phone: (212) 692-7200 E-mail: hgentry@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, (2) Lexington's ability to achieve its estimate of Company FFO for the year ending December 31, 2016, (3) the successful consummation of any lease, acquisition, build-to-suit, disposition, 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, | ||||||||
2016 | 2015 | |||||||
Gross revenues: | ||||||||
Rental | $ | 103,559 | $ | 100,016 | ||||
Tenant reimbursements | 8,057 | 8,426 | ||||||
Total gross revenues | 111,616 | 108,442 | ||||||
Expense applicable to revenues: | ||||||||
Depreciation and amortization | (43,127 | ) | (40,274 | ) | ||||
Property operating | (12,078 | ) | (16,582 | ) | ||||
General and administrative | (7,775 | ) | (7,822 | ) | ||||
Non-operating income | 2,867 | 2,614 | ||||||
Interest and amortization expense | (22,893 | ) | (23,003 | ) | ||||
Debt satisfaction gains (charges), net | (162 | ) | 10,375 | |||||
Impairment charges | — | (1,139 | ) | |||||
Gains on sales of properties | 17,015 | 148 | ||||||
Income before provision for income taxes, equity in earnings of non-consolidated entities and discontinued operations | 45,463 | 32,759 | ||||||
Provision for income taxes | (413 | ) | (441 | ) | ||||
Equity in earnings of non-consolidated entities | 5,742 | 366 | ||||||
Income from continuing operations | 50,792 | 32,684 | ||||||
Discontinued operations: | ||||||||
Income from discontinued operations | — | 110 | ||||||
Gain on sale of property | — | 1,577 | ||||||
Total discontinued operations | — | 1,687 | ||||||
Net income | 50,792 | 34,371 | ||||||
Less net income attributable to noncontrolling interests | (1,023 | ) | (866 | ) | ||||
Net income attributable to Lexington Realty Trust shareholders | 49,769 | 33,505 | ||||||
Dividends attributable to preferred shares – Series C | (1,572 | ) | (1,572 | ) | ||||
Allocation to participating securities | (90 | ) | (104 | ) | ||||
Net income attributable to common shareholders | $ | 48,107 | $ | 31,829 | ||||
Income per common share – basic: | ||||||||
Income from continuing operations | $ | 0.21 | $ | 0.13 | ||||
Income from discontinued operations | — | 0.01 | ||||||
Net income attributable to common shareholders | $ | 0.21 | $ | 0.14 | ||||
Weighted-average common shares outstanding – basic | 232,642,803 | 232,525,675 | ||||||
Income per common share – diluted: | ||||||||
Income from continuing operations | $ | 0.21 | $ | 0.13 | ||||
Income from discontinued operations | — | 0.01 | ||||||
Net income attributable to common shareholders | $ | 0.21 | $ | 0.14 | ||||
Weighted-average common shares outstanding – diluted | 238,885,171 | 232,957,265 | ||||||
Amounts attributable to common shareholders: | ||||||||
Income from continuing operations | $ | 48,107 | $ | 30,142 | ||||
Income from discontinued operations | — | 1,687 | ||||||
Net income attributable to common shareholders | $ | 48,107 | $ | 31,829 |
8 |
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
March 31, 2016 | December 31, 2015 | |||||||
Assets: | ||||||||
Real estate, at cost | $ | 3,773,333 | $ | 3,789,711 | ||||
Real estate - intangible assets | 692,654 | 692,778 | ||||||
Investments in real estate under construction | 115,297 | 95,402 | ||||||
4,581,284 | 4,577,891 | |||||||
Less: accumulated depreciation and amortization | 1,201,220 | 1,179,969 | ||||||
Real estate, net | 3,380,064 | 3,397,922 | ||||||
Assets held for sale | 10,147 | 24,425 | ||||||
Cash and cash equivalents | 80,894 | 93,249 | ||||||
Restricted cash | 42,830 | 10,637 | ||||||
Investment in and advances to non-consolidated entities | 44,926 | 31,054 | ||||||
Deferred expenses, net | 39,839 | 42,000 | ||||||
Loans receivable, net | 95,770 | 95,871 | ||||||
Rent receivable – current | 20,094 | 7,193 | ||||||
Rent receivable – deferred | 93,320 | 87,547 | ||||||
Other assets | 18,176 | 18,505 | ||||||
Total assets | $ | 3,826,060 | $ | 3,808,403 | ||||
Liabilities and Equity: | ||||||||
Liabilities: | ||||||||
Mortgages and notes payable, net | $ | 922,320 | $ | 872,643 | ||||
Revolving credit facility borrowings | 147,000 | 177,000 | ||||||
Term loans payable, net | 500,330 | 500,076 | ||||||
Senior notes payable, net | 493,735 | 493,526 | ||||||
Convertible guaranteed notes payable, net | 12,192 | 12,126 | ||||||
Trust preferred securities, net | 127,021 | 126,996 | ||||||
Dividends payable | 45,673 | 45,440 | ||||||
Liabilities held for sale | — | 8,405 | ||||||
Accounts payable and other liabilities | 35,688 | 41,479 | ||||||
Accrued interest payable | 14,746 | 8,851 | ||||||
Deferred revenue - including below market leases, net | 44,026 | 42,524 | ||||||
Prepaid rent | 19,783 | 16,806 | ||||||
Total liabilities | 2,362,514 | 2,345,872 | ||||||
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, 235,009,739 and 234,575,225 shares issued and outstanding in 2016 and 2015, respectively | 24 | 23 | ||||||
Additional paid-in-capital | 2,773,788 | 2,776,837 | ||||||
Accumulated distributions in excess of net income | (1,420,554 | ) | (1,428,908 | ) | ||||
Accumulated other comprehensive loss | (6,564 | ) | (1,939 | ) | ||||
Total shareholders’ equity | 1,440,710 | 1,440,029 | ||||||
Noncontrolling interests | 22,836 | 22,502 | ||||||
Total equity | 1,463,546 | 1,462,531 | ||||||
Total liabilities and equity | $ | 3,826,060 | $ | 3,808,403 |
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, | ||||||||
2016 | 2015 | |||||||
EARNINGS PER SHARE: | ||||||||
Basic: | ||||||||
Income from continuing operations attributable to common shareholders | $ | 48,107 | $ | 30,142 | ||||
Income from discontinued operations attributable to common shareholders | — | 1,687 | ||||||
Net income attributable to common shareholders | $ | 48,107 | $ | 31,829 | ||||
Weighted-average number of common shares outstanding | 232,642,803 | 232,525,675 | ||||||
Income per common share: | ||||||||
Income from continuing operations | $ | 0.21 | $ | 0.13 | ||||
Income from discontinued operations | — | 0.01 | ||||||
Net income attributable to common shareholders | $ | 0.21 | $ | 0.14 | ||||
Diluted: | ||||||||
Income from continuing operations attributable to common shareholders - basic | $ | 48,107 | $ | 30,142 | ||||
Impact of assumed conversions | 1,058 | — | ||||||
Income from continuing operations attributable to common shareholders | 49,165 | 30,142 | ||||||
Income from discontinued operations attributable to common shareholders - basic | — | 1,687 | ||||||
Impact of assumed conversions | — | — | ||||||
Income from discontinued operations attributable to common shareholders | — | 1,687 | ||||||
Net income attributable to common shareholders | $ | 49,165 | $ | 31,829 | ||||
Weighted-average common shares outstanding - basic | 232,642,803 | 232,525,675 | ||||||
Effect of dilutive securities: | ||||||||
Share options | 132,191 | 431,590 | ||||||
6.00% Convertible Guaranteed Notes | 1,941,237 | — | ||||||
Non-vested shares | 348,748 | — | ||||||
Operating Partnership Units | 3,820,192 | — | ||||||
Weighted-average common shares outstanding | 238,885,171 | 232,957,265 | ||||||
Income per common share: | ||||||||
Income from continuing operations | $ | 0.21 | $ | 0.13 | ||||
Income from discontinued operations | — | 0.01 | ||||||
Net income attributable to common shareholders | $ | 0.21 | $ | 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, | ||||||||
2016 | 2015 | |||||||
FUNDS FROM OPERATIONS: (1) | ||||||||
Basic and Diluted: | ||||||||
Net income attributable to common shareholders | $ | 48,107 | $ | 31,829 | ||||
Adjustments: | ||||||||
Depreciation and amortization | 41,193 | 38,922 | ||||||
Impairment charges - real estate | — | 1,139 | ||||||
Noncontrolling interests - OP units | 747 | 550 | ||||||
Amortization of leasing commissions | 1,934 | 1,352 | ||||||
Joint venture and noncontrolling interest adjustment | 236 | 321 | ||||||
Gains on sales of properties, net of tax, including non-consolidated entities | (22,343 | ) | (1,725 | ) | ||||
FFO available to common shareholders and unitholders - basic | 69,874 | 72,388 | ||||||
Preferred dividends | 1,572 | 1,572 | ||||||
Interest and amortization on 6.00% Convertible Notes | 252 | 319 | ||||||
Amount allocated to participating securities | 90 | 104 | ||||||
FFO available to common shareholders and unitholders - diluted | 71,788 | 74,383 | ||||||
Debt satisfaction (gains) charges, net | 162 | (10,375 | ) | |||||
Transaction costs/other | 146 | 468 | ||||||
Company FFO available to common shareholders and unitholders - diluted | 72,096 | 64,476 | ||||||
FUNDS AVAILABLE FOR DISTRIBUTION: (2) | ||||||||
Adjustments: | ||||||||
Straight-line rents | (11,139 | ) | (5,309 | ) | ||||
Lease incentives | 423 | 457 | ||||||
Amortization of below/above market leases | 456 | (621 | ) | |||||
Lease termination payments, net | (2,749 | ) | (806 | ) | ||||
Non-cash interest, net | (382 | ) | (635 | ) | ||||
Non-cash charges, net | 2,207 | 2,256 | ||||||
Tenant improvements | (720 | ) | (1,081 | ) | ||||
Lease costs | (1,230 | ) | (1,420 | ) | ||||
Company Funds Available for Distribution | $ | 58,962 | $ | 57,317 | ||||
Per Common Share and Unit Amounts | ||||||||
Basic: | ||||||||
FFO | $ | 0.30 | $ | 0.31 | ||||
Diluted: | ||||||||
FFO | $ | 0.29 | $ | 0.30 | ||||
Company FFO | $ | 0.30 | $ | 0.26 | ||||
Company FAD | $ | 0.24 | $ | 0.23 | ||||
Weighted-Average Common Shares: | ||||||||
Basic(3) | 236,462,995 | 236,378,649 | ||||||
Diluted | 243,595,741 | 244,045,197 |
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) lease termination payments, net, (5) non-cash interest, net, (6) non-cash charges, net, (7) cash paid for tenant improvements, and (8) cash paid for lease costs. 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 other than OP units held by Lexington.
# # #
12 |
LEXINGTON REALTY TRUST
2016 First Quarter Investment / Capital Recycling Summary
PROPERTY INVESTMENTS | ||||||||||||||||||||||||||||
Primary Tenant | Location | Property Type | Initial
Basis ($000) | Initial
Annualized Cash Rent ($000) | Initial
Cash Yield | Initial GAAP Yield | Month Closed | Primary Lease Expiration | ||||||||||||||||||||
1 | FCA US LLC (1) | Detroit | MI | Industrial | $ | 29,697 | $ | 2,204 | 7.4 | % | 7.4 | % | January | 10/2035 | ||||||||||||||
1 | TOTAL PROPERTY INVESTMENT |
CAPITAL RECYCLING | ||||||||||||||||||||||||||
PROPERTY DISPOSITIONS (2) | ||||||||||||||||||||||||||
Primary Tenant (Guarantor) | Location | Property Type | Gross
Sale Price ($000) | Annualized
NOI (3) ($000) | Month of Disposition | % Leased | Gross
Sale Price PSF | |||||||||||||||||||
1 | Parkway Chevrolet, Inc. (Jean W. Durdin) (4) | Tomball | TX | Specialty / Retail | $ | 17,575 | $ | 1,459 | February | 100 | % | $ | 228.02 | |||||||||||||
2 | Multi-Tenant / The Weiss Group, LLC | Palm Beach Gardens | FL | Multi-Tenant / Office | 30,050 | 1,457 | March | 100 | % | 264.61 | ||||||||||||||||
3 | AT&T Services, Inc. | Harrisburg | PA | Office | 10,600 | 887 | March | 100 | % | 120.84 | ||||||||||||||||
3 | TOTAL PROPERTY DISPOSITIONS | $ | 58,225 | $ | 3,803 |
Footnotes
(1) | Formerly known as Chrysler Group LLC. |
(2) | In addition, Lexington received $6.7 million in connection with the sale of a non-consolidated office property in Russellville, Arkansas. Also, Lexington sold a vacant parcel of land for $0.4 million. |
(3) | 4Q 2015 NOI annualized. |
(4) | Gross sale price excludes mortgage defeasance costs of $0.3 million reimbursed by the purchaser. |
13 |
LEXINGTON REALTY TRUST
BUILD-TO-SUIT PROJECTS
3/31/2016
BUILD-TO-SUIT PROJECTED CONSTRUCTION FUNDING SCHEDULE (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Location | Sq. Ft | Asset Type | Lease
Term (Years) | Maximum Commitment/ Estimated Completion Cost ($000) | Investment balance as of 3/31/16 ($000) | Estimated Cash Investment Next 12 Months ($000) | Estimated Completion/ Acquisition Date | Estimated Initial Cash Yield | Estimated GAAP Yield | |||||||||||||||||||||||||||||||||||||
Q2 2016 | Q3 2016 | Q3 2016 | Q1 2017 | |||||||||||||||||||||||||||||||||||||||||||
1 | Anderson | SC | 1,325,000 | Industrial | 20 | $ | 70,012 | $ | 37,051 | $ | 27,226 | $ | - | $ | - | $ | - | 2Q16 | 5.9 | % | 7.3 | % | ||||||||||||||||||||||||
2 | Lake Jackson | TX | 664,000 | Office | 20 | 166,164 | 63,278 | 20,000 | 60,000 | 20,000 | - | 4Q 16 | 7.3 | % | 8.9 | % | ||||||||||||||||||||||||||||||
3 | Charlotte | NC | 201,000 | Office | 15 | 62,445 | 14,968 | 10,700 | 12,155 | 12,155 | 12,155 | 1Q 17 | 8.3 | % | 9.5 | % | ||||||||||||||||||||||||||||||
3 | TOTAL CONSOLIDATED BUILD-TO-SUIT PROJECTS (2) | $ | 298,621 | $ | 115,297 | $ | 57,926 | $ | 72,155 | $ | 32,155 | $ | 12,155 | |||||||||||||||||||||||||||||||||
1 | Houston (3) | TX | 274,000 | Retail/Specialty | 20 | $ | 86,491 | $ | 53,536 | $ | 15,098 | $ | 15,098 | $ | - | $ | - | 3Q 16 | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||
1 | TOTAL NON-CONSOLIDATED BUILD-TO-SUIT PROJECTS | $ | 86,491 | $ | 53,536 | $ | 15,098 | $ | 15,098 | $ | - | $ | - | |||||||||||||||||||||||||||||||||
4 | TOTAL BUILD-TO-SUIT PROJECTS | $ | 385,112 | $ | 168,833 | $ | 73,024 | $ | 87,253 | $ | 32,155 | $ | 12,155 |
BUILD-TO-SUIT NOI (4) | ||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 1Q 2016 | |||||||||||||||||||
Net operating income ($000) | $ | 1,156 | $ | 5,268 | $ | 11,920 | $ | 21,438 | $ | 27,462 | $ | 9,359 |
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 or, if completed, will perform to Lexington's expectations. |
(2) | Investment balance in accordance with GAAP included in investment in real estate under construction. Aggregate equity invested is $118.8 million. |
(3) | Lexington has a 25% interest as of March 31, 2016. Lexington is providing construction financing up to $56.7 million to the joint venture, of which $23.6 million has been funded as of March 31, 2016. Estimated cash investments for the next 12 months are Lexington's estimated loan amounts. Lease contains annual CPI increases. |
(4) | Net operating income generated from completed build-to-suit projects funded by Lexington beginning in 2010. |
14 |
LEXINGTON REALTY TRUST
2016 First Quarter Financing Summary
DEBT RETIRED | ||||||||||||||||
Location | Tenant (Guarantor) | Property Type | Face
/ Satisfaction ($000) | Fixed Rate | Maturity Date | |||||||||||
Consolidated Mortgage Debt: | ||||||||||||||||
Tomball, Texas | Parkway Chevrolet, Inc. (Jean W. Durdin) | Specialty / Retail | $ | 8,274 | 6.06 | % | 11/2016 |
PROPERTY LEVEL FINANCING | ||||||||||||||
Location | Primary Tenant | Property Type | Face ($000) | Fixed Rate | Maturity Date | |||||||||
Richmond, Virginia | McGuireWoods LLP | Office | $ | 57,500 | 5.19 | % | 02/2031 | |||||||
CORPORATE LEVEL DEBT | ||||||||||||||
Quarterly Activity, Net ($000) | ||||||||||||||
Revolving Credit Facility | $30,000 repayment |
15 |
LEXINGTON REALTY TRUST
2016 First Quarter Leasing Summary
LEASE EXTENSIONS | ||||||||||||||||||||||||||||||
Tenant | Location | Prior Term | Lease Expiration Date | Sq. Ft. | New
Cash Rent Per Annum ($000)(1) | Prior
Cash Rent Per Annum ($000) | New
GAAP Rent Per Annum ($000)(1) | Prior
GAAP Rent Per Annum ($000) | ||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||
1 | Avnet, Inc. | Phoenix | AZ | 02/2023 | 08/2026 | 176,402 | $ | 2,690 | $ | 2,203 | $ | 2,672 | $ | 2,697 | ||||||||||||||||
2 | Siemens Corporation | Milford | OH | 09/2016 | 04/2026 | 221,215 | 2,455 | 2,486 | 2,682 | 2,318 | ||||||||||||||||||||
2 | Total office lease extensions | 397,617 | $ | 5,145 | $ | 4,689 | $ | 5,354 | $ | 5,015 | ||||||||||||||||||||
Industrial / Multi-Tenant | ||||||||||||||||||||||||||||||
1 | Pierce Packaging Co. | Rockford | IL | 12/2016 | 12/2019 | 93,000 | $ | 312 | $ | 307 | $ | 312 | $ | 307 | ||||||||||||||||
2 | Wirtgen America, Inc. | Antioch | TN | MTM | 12/2016 | 73,500 | 210 | 201 | 210 | 201 | ||||||||||||||||||||
3 | Sears, Roebuck and Co. / Sears Logistics Services | Memphis | TN | 02/2017 | 02/2027 | 780,000 | 1,592 | 1,592 | 1,694 | 1,694 | ||||||||||||||||||||
4 | Kraft Heinz Foods Company | Winchester | VA | 05/2016 | 05/2021 | 344,700 | 1,362 | 1,306 | 1,421 | 1,289 | ||||||||||||||||||||
4 | Total industrial lease extensions | 1,291,200 | $ | 3,476 | $ | 3,406 | $ | 3,637 | $ | 3,491 | ||||||||||||||||||||
6 | TOTAL EXTENDED LEASES | 1,688,817 | $ | 8,621 | $ | 8,095 | $ | 8,991 | $ | 8,506 |
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 | Wayne Sadoyama | Honolulu | HI | QTQ | 1,900 | $ | 36 | $ | 36 | |||||||||||||
2 | Drybar Holdings LLC | Philadelphia | PA | 01/2027 | 1,975 | 103 | 103 | |||||||||||||||
3 | Hagemeyer North America, Inc. | Charleston | SC | 06/2019 | 20,424 | 378 | 378 | |||||||||||||||
3 | TOTAL NEW LEASES | 24,299 | $ | 517 | $ | 517 | ||||||||||||||||
9 | TOTAL NEW AND EXTENDED LEASES | 1,713,116 | $ | 9,138 | $ | 9,508 |
LEASE NON-RENEWALS (2) | ||||||||||||||||||||
Tenant (Guarantor) | Location | Lease
Expiration Date | Sq. Ft. | 2015 Cash Rent ($000) | 2015 GAAP Rent ($000) | |||||||||||||||
Office | ||||||||||||||||||||
1 | Nextel of Texas, Inc. (Nextel Finance Company) (3) | Temple | TX | 01/2016 | 54,683 | $ | 842 | $ | 451 | |||||||||||
1 | TOTAL LEASE NON-RENEWAL |
Footnotes
(1) | Assumes three months rent from the later of 4/1/16 or full lease commencement/extension, excluding free rent periods as applicable. |
(2) | Excludes non-renewal space that was leased to new tenants.Excludes multi-tenant properties. |
(3) | Property subject to non-recourse mortgage debt of $7.5 million currently in default. |
16 |
LEXINGTON REALTY TRUST
Other Revenue Data
3/31/2016
($000)
Other Revenue Data
GAAP Rent | ||||||||||||
Asset Class | Three months ended | |||||||||||
3/31/16 (1) | 3/31/16 Percentage | 3/31/15 Percentage | ||||||||||
Office | $ | 51,557 | 50.3 | % | 50.9 | % | ||||||
Industrial | 31,095 | 30.4 | % | 24.0 | % | |||||||
Land / Infrastructure | 15,515 | 15.1 | % | 15.3 | % | |||||||
Multi-tenant | 1,850 | 1.8 | % | 6.3 | % | |||||||
Retail/Specialty | 2,432 | 2.4 | % | 3.5 | % | |||||||
$ | 102,449 | 100.0 | % | 100.0 | % | |||||||
GAAP Rent | ||||||||||||
Credit Ratings (2) | Three months ended | |||||||||||
3/31/16 (1) | 3/31/16 Percentage | 3/31/15 Percentage | ||||||||||
Investment Grade | $ | 33,554 | 32.8 | % | 36.9 | % | ||||||
Non-Investment Grade | 14,975 | 14.6 | % | 14.0 | % | |||||||
Unrated | 53,920 | 52.6 | % | 49.1 | % | |||||||
$ | 102,449 | 100.0 | % | 100.0 | % |
Weighted-Average Lease Term - Cash Basis | As of 3/31/16 | As of 3/31/15 | ||||
12.7 years | 12.4 years | |||||
Weighted-Average Lease Term - Cash Basis - Adjusted (3) | As of 3/31/16 | As of 3/31/15 | ||||
9.2 years | 8.9 years |
Rent Estimates for Current Assets | ||||||||||||||
Year | Cash (4) | GAAP (4) | Projected Straight-line / GAAP Rent Adjustment | |||||||||||
2016 - remaining | $ | 266,532 | $ | 299,663 | $ | (33,131 | ) | |||||||
2017 | $ | 338,605 | $ | 380,268 | $ | (41,663 | ) |
Footnotes
(1) | Three months ended 3/31/2016 GAAP rent recognized for consolidated properties owned as of 3/31/2016. |
(2) | Credit ratings are based upon either tenant, guarantor or parent. Generally, multi-tenant assets are included in unrated. |
(3) | Adjusted to reflect NY land leases to the first purchase option date. |
(4) | Amounts assume (1) lease terms for non-cancellable periods only, (2) no new or renegotiated leases are entered into after 3/31/2016, and (3) no properties are sold or acquired after 3/31/2016. |
17 |
LEXINGTON REALTY TRUST
Other Revenue Data (Continued)
3/31/2016
($000)
Same-Store NOI (1)(2) | Actual | Adjusted (3) | ||||||||||||||
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Total Cash Base Rent | $ | 79,357 | $ | 85,228 | $ | 79,357 | $ | 79,982 | ||||||||
Tenant Reimbursements | 6,676 | 7,369 | 6,676 | 7,369 | ||||||||||||
Property Operating Expenses | (10,314 | ) | (11,899 | ) | (10,314 | ) | (11,899 | ) | ||||||||
Same-Store NOI | $ | 75,719 | $ | 80,698 | $ | 75,719 | $ | 75,452 | ||||||||
Change in Same-Store NOI | (6.2 | )% | 0.4 | % | ||||||||||||
Same-Store Percent Leased (2) | As of 3/31/16 | As of 3/31/15 | ||||||||||||||
97.7 | % | 97.5 | % |
Lease Escalation Data (4)
Footnotes
(1) | NOI is on a consolidated cash basis for all consolidated properties except properties acquired/expanded and sold in 2016 and 2015 and excludes lease termination payments. |
(2) | Adjusted for properties subject to secured mortgage loans in default as of 3/31/2016. |
(3) | Total base rent was adjusted for two tenants that paid rent semi-annually in 2015. The 2015 base rents were adjusted to reflect rent as if it was paid monthly. |
(4) | Based on three months consolidated cash base rents for single-tenant leases. Excludes parking operations and $3.8 million in step-down leases. |
18 |
LEXINGTON REALTY TRUST
Portfolio Detail By Asset Class
3/31/2016
( $000, except square footage)
Asset Class | YE 2013 | YE 2014 | YE 2015 | 1Q 2016 | ||||||||||||
Office | ||||||||||||||||
% of ABR (1) | 61.3 | % | 51.4 | % | 50.1 | % | 50.3 | % | ||||||||
LTL (5) | 26.8 | % | 31.8 | % | 23.4 | % | 28.6 | % | ||||||||
STL (6) | 73.2 | % | 68.2 | % | 76.6 | % | 71.4 | % | ||||||||
Leased | 99.0 | % | 98.6 | % | 99.6 | % | 99.6 | % | ||||||||
Wtd. Avg. Lease Term (2) | 7.2 | 7.4 | 7.2 | 7.2 | ||||||||||||
Mortgage Debt | $ | 692,460 | $ | 426,635 | $ | 329,696 | $ | 374,580 | ||||||||
% Investment Grade (1) | 57.2 | % | 53.7 | % | 48.7 | % | 46.4 | % | ||||||||
Square Feet | 15,316,875 | 13,264,134 | 12,847,877 | 12,632,799 | ||||||||||||
Cash Base Rent | $ | 214,774 | $ | 192,865 | $ | 183,249 | $ | 47,702 | ||||||||
Industrial | ||||||||||||||||
% of ABR (1) | 23.2 | % | 23.0 | % | 27.9 | % | 30.4 | % | ||||||||
LTL (5) | 35.2 | % | 42.8 | % | 43.1 | % | 49.3 | % | ||||||||
STL (6) | 64.8 | % | 57.2 | % | 56.9 | % | 50.7 | % | ||||||||
Leased | 99.8 | % | 99.7 | % | 99.6 | % | 99.6 | % | ||||||||
Wtd. Avg. Lease Term (2) | 7.2 | 7.9 | 9.5 | 9.6 | ||||||||||||
Mortgage Debt | $ | 206,209 | $ | 177,951 | $ | 292,293 | $ | 290,530 | ||||||||
% Investment Grade (1) | 34.1 | % | 29.3 | % | 30.3 | % | 27.3 | % | ||||||||
Square Feet | 21,473,994 | 22,612,691 | 25,561,136 | 25,751,139 | ||||||||||||
Cash Base Rent | $ | 84,039 | $ | 89,991 | $ | 105,032 | $ | 31,629 | ||||||||
Land/Infrastructure | ||||||||||||||||
% of ABR (1) | 4.9 | % | 14.3 | % | 16.0 | % | 15.1 | % | ||||||||
LTL (5) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
STL (6) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Leased | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Wtd. Avg. Lease Term (2) | 72.7 | 73.1 | 70.3 | 70.2 | ||||||||||||
Wtd. Avg. Lease Term Adjusted (3) | 23.7 | 22.8 | 22.8 | 23.3 | ||||||||||||
Mortgage Debt | $ | 213,500 | $ | 213,475 | $ | 242,494 | $ | 242,419 | ||||||||
% Investment Grade (1) | 0.2 | % | 0.4 | % | 0.4 | % | 3.8 | % | ||||||||
Cash Base Rent | $ | 9,259 | $ | 22,717 | $ | 25,651 | $ | 6,621 | ||||||||
Multi-Tenant | ||||||||||||||||
% of ABR (1) | 7.9 | % | 8.7 | % | 3.0 | % | 1.8 | % | ||||||||
Leased | 66.4 | % | 53.9 | % | 44.1 | % | 41.6 | % | ||||||||
Wtd. Avg. Lease Term (2) | 7.0 | 6.9 | 3.4 | 3.3 | ||||||||||||
Mortgage Debt | $ | 71,754 | $ | 116,763 | $ | 14,118 | $ | 21,581 | ||||||||
% Investment Grade (1) | 34.5 | % | 19.3 | % | 36.9 | % | 5.5 | % | ||||||||
Square Feet | 2,259,189 | 2,414,889 | 2,301,864 | 2,315,599 | ||||||||||||
Cash Base Rent | $ | 27,941 | $ | 34,458 | $ | 11,425 | $ | 1,879 | ||||||||
Retail/Specialty | ||||||||||||||||
% of ABR (1) | 2.7 | % | 2.6 | % | 3.0 | % | 2.4 | % | ||||||||
LTL (5) | 21.0 | % | 28.1 | % | 34.7 | % | 27.8 | % | ||||||||
STL (6) | 79.0 | % | 71.9 | % | 65.3 | % | 72.2 | % | ||||||||
Leased | 98.5 | % | 94.3 | % | 97.9 | % | 97.8 | % | ||||||||
Wtd. Avg. Lease Term (2) | 7.2 | 9.1 | 8.4 | 7.7 | ||||||||||||
Mortgage Debt | $ | 13,566 | $ | 13,170 | $ | 12,724 | $ | 4,320 | ||||||||
% Investment Grade (1) | 18.7 | % | 22.4 | % | 16.4 | % | 20.0 | % | ||||||||
Square Feet | 1,489,267 | 1,447,724 | 1,395,517 | 1,318,441 | ||||||||||||
Cash Base Rent | $ | 7,947 | $ | 8,948 | $ | 9,557 | $ | 1,624 | ||||||||
Loans Receivable | $ | 99,443 | $ | 105,635 | $ | 95,871 | $ | 95,770 | ||||||||
Construction in progress (4) | $ | 78,656 | $ | 121,184 | $ | 103,954 | $ | 117,261 |
Footnotes
(1) | Percentage of GAAP rent. |
(2) | Cash basis. |
(3) | Cash basis adjusted to reflect NY land leases to the first purchase option date. |
(4) | Includes development classified as real estate under construction on a consolidated basis. |
(5) | Long-term leases ("LTL") are defined as leases having a term of ten years or longer. |
(6) | Short-term leases ("STL") are defined as leases having a term of less than ten years. |
19 |
LEXINGTON REALTY TRUST
Portfolio Composition
3/31/2016
Footnotes
(1) | Based on gross book value of real estate assets, real estate under construction, and loans receivable as of 3/31/2016. |
(2) | Based on three months GAAP rent as of 3/31/2016. |
20 |
LEXINGTON REALTY TRUST
Components of Net Asset Value
3/31/2016
($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 three month cash net operating income (NOI) (1) | ||||
Office | $ | 45,606 | ||
Industrial | 29,712 | |||
Land/ Infrastructure | 6,604 | |||
Multi-Tenant | 815 | |||
Retail/Specialty | 1,930 | |||
Total Net Operating Income | $ | 84,667 | ||
Lexington's share of non-consolidated three month NOI (1) | ||||
Office | $ | 263 | ||
Retail/Specialty | 300 | |||
$ | 563 | |||
Other income | ||||
Advisory fees | $ | 277 |
In service assets not fairly valued by capitalized NOI method (1) | ||||
Wholly-owned assets | $ | 89,242 | ||
Add other assets: | ||||
Assets held for sale | $ | 10,147 | ||
Loans receivable | 95,770 | |||
Development investment at cost incurred | 152,263 | |||
Cash and cash equivalents | 80,894 | |||
Restricted cash | 42,830 | |||
Accounts receivable, net | 20,094 | |||
Other assets | 18,176 | |||
Total other assets | $ | 420,174 | ||
Liabilities: | ||||
Corporate level debt (face amount) | $ | 1,293,520 | ||
Mortgages and notes payable (face amount) | 933,430 | |||
Dividends payable | 45,673 | |||
Accounts payable, accrued expenses and other liabilities | 70,217 | |||
Preferred stock, at liquidation value | 96,770 | |||
Lexington's share of non-consolidated mortgages | 8,561 | |||
Total deductions | $ | 2,448,171 | ||
Common shares & OP units at 3/31/2016 | 238,829,931 |
Footnotes
(1) | Three months ended March 31, 2016 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 period, as applicable. |
21 |
LEXINGTON REALTY TRUST
Top Markets
3/31/2016
Core Based Statistical Area (2) | Percent of GAAP Rent as of 3/31/16 (1) | |||||
1 | New York-Northern New Jersey-Long Island, NY-NJ-PA | 15.6 | % | |||
2 | Houston-Sugar Land-Baytown, TX | 6.8 | % | |||
3 | Dallas-Fort Worth-Arlington, TX | 6.5 | % | |||
4 | Memphis, TN-MS-AR | 4.3 | % | |||
5 | Kansas City, MO-KS | 3.6 | % | |||
6 | Phoenix-Mesa-Scottsdale, AZ | 3.6 | % | |||
7 | Kennewick-Pasco-Richland, WA | 3.2 | % | |||
8 | Richmond, VA | 3.0 | % | |||
9 | Detroit-Warren-Livonia, MI | 2.7 | % | |||
10 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 2.1 | % | |||
11 | Denver-Aurora, CO | 2.1 | % | |||
12 | Indianapolis-Carmel, IN | 2.0 | % | |||
13 | Columbus, OH | 1.8 | % | |||
14 | Las Vegas-Paradise, NV | 1.7 | % | |||
15 | San Jose-Sunnyvale-Santa Clara, CA | 1.6 | % | |||
16 | Charlotte-Gastonia-Rock Hill, NC-SC | 1.6 | % | |||
17 | Jackson, MS | 1.5 | % | |||
18 | Chicago-Naperville-Joliet, IL-IN-WI | 1.5 | % | |||
19 | Orlando-Kissimmee, FL | 1.3 | % | |||
20 | Atlanta-Sandy Springs-Marietta, GA | 1.3 | % | |||
Total Top Markets (3) | 67.8 | % |
Footnotes
(1) | Three months ended 3/31/2016 GAAP rent recognized for consolidated properties owned as of 3/31/2016. |
(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
Single-Tenant Office Markets
3/31/2016
Footnotes
(1) | Three months ended 3/31/2016 GAAP rent recognized for consolidated office properties owned as of 3/31/2016. |
(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. |
23 |
LEXINGTON REALTY TRUST
Tenant Industry Diversification
3/31/2016
Footnotes
(1) | Three months ended 3/31/2016 GAAP rent recognized for consolidated properties owned as of 3/31/2016. |
24 |
LEXINGTON REALTY TRUST
Top 10 Tenants or Guarantors
3/31/2016
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 Rent as of 3/31/2016 ($000) (1) | Percent of Cash Rent as of 3/31/2016 ($000) (1) (2) | |||||||||||||
FedEx Corporation / Federal Express Corporation | 3 | 787,829 | 1.9 | % | $ | 3,153 | 3.5 | % | ||||||||||
Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC) | 1 | 456,412 | 1.1 | % | 2,698 | 3.0 | % | |||||||||||
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 7 | 2,053,359 | 4.9 | % | 2,555 | 2.9 | % | |||||||||||
Nissan North America, Inc. | 2 | 1,691,049 | 4.0 | % | 2,337 | 2.6 | % | |||||||||||
Heidelberg Americas, Inc. (Heidelberg Druckmaschinen AG) (4) | 1 | 500,500 | 1.2 | % | 2,167 | 2.4 | % | |||||||||||
United States of America | 3 | 398,214 | 0.9 | % | 2,159 | 2.4 | % | |||||||||||
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation | 2 | 476,123 | 1.1 | % | 1,903 | 2.1 | % | |||||||||||
Xerox Corporation | 1 | 202,000 | 0.5 | % | 1,767 | 2.0 | % | |||||||||||
Michelin North America, Inc. | 3 | 2,503,916 | 5.9 | % | 1,766 | 2.0 | % | |||||||||||
Morgan, Lewis and Bockius LLP | 1 | 289,432 | 0.7 | % | 1,764 | 2.0 | % | |||||||||||
24 | 9,358,834 | 22.2 | % | $ | 22,269 | 24.9 | % |
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 Rent as of 3/31/2016 ($000) (3) | Percent of GAAP Rent as of 3/31/2016 ($000) (3) (2) | |||||||||||||
SM Ascott LLC | 1 | - | 0.0 | % | $ | 4,343 | 4.2 | % | ||||||||||
FC-Canal Ground Tenant LLC | 1 | - | 0.0 | % | 3,722 | 3.6 | % | |||||||||||
AL-Stone Ground Tenant LLC | 1 | - | 0.0 | % | 3,397 | 3.3 | % | |||||||||||
Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC) | 1 | 456,412 | 1.1 | % | 3,283 | 3.2 | % | |||||||||||
FedEx Corporation / Federal Express Corporation | 3 | 787,829 | 1.9 | % | 3,224 | 3.1 | % | |||||||||||
United States of America | 3 | 398,214 | 0.9 | % | 2,710 | 2.6 | % | |||||||||||
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 7 | 2,053,359 | 4.9 | % | 2,485 | 2.4 | % | |||||||||||
Nissan North America, Inc. | 2 | 1,691,049 | 4.0 | % | 2,406 | 2.3 | % | |||||||||||
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation | 2 | 476,123 | 1.1 | % | 1,910 | 1.9 | % | |||||||||||
McGuireWoods LLP | 1 | 224,537 | 0.5 | % | 1,796 | 1.8 | % | |||||||||||
22 | 6,087,523 | 14.4 | % | $ | 29,276 | 28.6 | % |
Footnotes
(1) | Three months ended 3/31/2016 cash rent recognized for consolidated properties owned as of 3/31/2016. |
(2) | Total shown may differ from detailed amounts due to rounding. |
(3) | Three months ended 3/31/2016 GAAP rent recognized for consolidated properties owned as of 3/31/2016. |
(4) | Tenant pays rent semi-annually in uneven amounts. |
25 |
LEXINGTON REALTY TRUST
Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis
3/31/2016
($000)
Year | Number of Leases Expiring | GAAP Rent as of 3/31/2016 | Percent of GAAP Rent as of 3/31/2016 | Percent of GAAP Rent as of 3/31/2015 | ||||||||||||
2016 - remaining | 7 | $ | 2,404 | 2.4 | % | 4.3 | % | |||||||||
2017 | 18 | 7,286 | 7.3 | % | 5.5 | % | ||||||||||
2018 | 30 | 5,956 | 6.0 | % | 6.9 | % | ||||||||||
2019 | 22 | 7,644 | 7.6 | % | 7.9 | % | ||||||||||
2020 | 15 | 5,645 | 5.6 | % | 7.6 | % | ||||||||||
2021 | 13 | 6,217 | 6.2 | % | 5.7 | % | ||||||||||
2022 | 7 | 3,159 | 3.2 | % | 3.4 | % | ||||||||||
2023 | 6 | 2,896 | 2.9 | % | 3.8 | % | ||||||||||
2024 | 8 | 3,056 | 3.1 | % | 3.7 | % | ||||||||||
2025 | 19 | 8,152 | 8.2 | % | 11.0 | % | ||||||||||
Thereafter | 69 | 47,505 | 47.5 | % | 36.9 | % | ||||||||||
Total (1) | 214 | $ | 99,920 | 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
3/31/2016
($000)
Year | Number of Leases Expiring | GAAP Rent as of 3/31/2016 | Percent of GAAP Rent as of 3/31/2016 | |||||||||
2016 - remaining | 39 | $ | 2,629 | 2.6 | % | |||||||
2017 | 28 | 7,405 | 7.3 | % | ||||||||
2018 | 35 | 6,476 | 6.4 | % | ||||||||
2019 | 25 | 7,883 | 7.7 | % | ||||||||
2020 | 16 | 5,671 | 5.6 | % | ||||||||
2021 | 17 | 6,834 | 6.7 | % | ||||||||
2022 | 7 | 3,159 | 3.1 | % | ||||||||
2023 | 6 | 2,896 | 2.8 | % | ||||||||
2024 | 8 | 3,056 | 3.0 | % | ||||||||
2025 | 20 | 8,255 | 8.1 | % | ||||||||
Thereafter | 69 | 47,505 | 46.7 | % | ||||||||
Total (1) | 270 | $ | 101,769 | 100.0 | % |
Footnotes
(1) | Total shown may differ from detailed amounts due to rounding and does not include parking operations. |
27 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year of Lease Expiration | Date of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft. Leased or Available (1) | Cash Rent as of 3/31/2016 ($000) (2) | GAAP Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||||||||||||||
2016 | 4/30/2016 | 11511 Luna Rd. | Farmers Branch | TX | — | Haggar Clothing Co. (Texas Holding Clothing Corporation and Haggar Corp.) | 114,489 | 393 | 506 | 18,373 | 07/2016 | |||||||||||||||||||||
5/31/2016 | 1200 Jupiter Rd. | Garland | TX | — | Raytheon Company | 278,759 | 377 | 406 | - | - | ||||||||||||||||||||||
7/8/2016 | 1460 Tobias Gadsen Blvd. | Charleston | SC | 13 | Hagemeyer North America, Inc. | 29,652 | 129 | 296 | 7,161 | 02/2021 | ||||||||||||||||||||||
7/14/2016 | 1400 Northeast McWilliams Rd. | Bremerton | WA | — | Nextel West Corporation (Nextel Finance Company) | 60,200 | 304 | 304 | 5,479 | 04/2016 | ||||||||||||||||||||||
10/31/2016 | 104 & 110 South Front St. | Memphis | TN | — | Hnedak Bobo Group, Inc. | 37,229 | 130 | 125 | 3,537 | 01/2017 | ||||||||||||||||||||||
2017 | 1/31/2017 | 10300 Kincaid Dr. | Fishers | IN | 16 | Roche Diagnostics Operations, Inc. | 193,000 | 893 | 1,374 | - | - | |||||||||||||||||||||
1311 Broadfield Blvd. | Houston | TX | 5 | Transocean Offshore Deepwater Drilling, Inc. (Transocean Sedco Forex, Inc.) | 155,040 | 659 | 1,454 | - | - | |||||||||||||||||||||||
3/31/2017 | 1701 Market St. | Philadelphia | PA | — | Car-Tel Communications, Inc. | 1,220 | 14 | 14 | - | - | ||||||||||||||||||||||
6/30/2017 | 10419 North 30th St. | Tampa | FL | 9 | Time Customer Service, Inc. (Time Incorporated) | 132,981 | 380 | 299 | - | - | ||||||||||||||||||||||
9/30/2017 | 9201 East Dry Creek Rd. | Centennial | CO | — | Arrow Electronics, Inc. | 128,500 | 691 | 758 | - | - | ||||||||||||||||||||||
10/31/2017 | 4455 American Way | Baton Rouge | LA | — | New Cingular Wireless PCS, LLC | 70,100 | 270 | 265 | - | - | ||||||||||||||||||||||
5201 West Barraque St. | Pine Bluff | AR | — | Entergy Services, Inc. | 27,189 | 97 | 80 | - | - | |||||||||||||||||||||||
11/30/2017 | 6200 Northwest Pkwy. | San Antonio | TX | — | United HealthCare Services, Inc. / PacifiCare Healthsystems, LLC | 142,500 | 502 | 467 | - | - | ||||||||||||||||||||||
12/1/2017 | 800 East Canal St. | Richmond | VA | — | CRG-Richmond Tenant, LLC | 51,450 | 177 | 177 | - | - | ||||||||||||||||||||||
2018 | 1/31/2018 | 820 Gears Rd. | Houston | TX | — | Ricoh Americas Corporation | 78,895 | 273 | 289 | - | - | |||||||||||||||||||||
2/28/2018 | 850-950 Warrenville Rd. | Lisle | IL | — | Flexible Steel Lacing Company, d/b/a Flexco, Inc. | 7,535 | 36 | 36 | - | - | ||||||||||||||||||||||
5/30/2018 | 13651 McLearen Rd. | Herndon | VA | — | United States of America | 159,644 | 908 | 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 | 129 | 127 | - | - | ||||||||||||||||||||||
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 | 45 | 45 | - | - | ||||||||||||||||||||||
3500 North Loop Rd. | McDonough | GA | — | Litton Loan Servicing LP | 62,218 | 332 | 238 | - | - | |||||||||||||||||||||||
9/30/2018 | 1701 Market St. | Philadelphia | PA | — | 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 / Swiss Re Management (US) Corporation | 320,198 | 1,306 | 1,313 | 33,977 | 05/2019 | ||||||||||||||||||||||
2019 | 1/31/2019 | 2999 Southwest 6th St. | Redmond | OR | — | VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.) | 77,484 | 435 | 367 | - | - | |||||||||||||||||||||
4/1/2019 | 9201 Stateline Rd. | Kansas City | MO | — | Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation | 155,925 | 597 | 597 | 16,196 | 05/2019 | ||||||||||||||||||||||
6/19/2019 | 3965 Airways Blvd. | Memphis | TN | — | Federal Express Corporation | 521,286 | 1,754 | 1,753 | - | - | ||||||||||||||||||||||
6/30/2019 | 1460 Tobias Gadsen Blvd. | Charleston | SC | — | Hagemeyer North America, Inc. | 20,424 | 89 | 204 | - | - | ||||||||||||||||||||||
3265 East Goldstone Dr. | Meridian | ID | — | VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.) | 77,484 | 356 | 276 | 9,213 | 08/2019 | |||||||||||||||||||||||
7/15/2019 | 19019 North 59th Ave. | Glendale | AZ | — | Honeywell International Inc. | 252,300 | 475 | 475 | - | - | ||||||||||||||||||||||
7/31/2019 | 500 Jackson St. | Columbus | IN | — | Cummins, Inc. | 390,100 | 1,190 | 1,135 | 19,911 | 07/2019 | ||||||||||||||||||||||
10/31/2019 | 10475 Crosspoint Blvd. | Indianapolis | IN | — | John Wiley & Sons, Inc. | 123,416 | 571 | 567 | - | - | ||||||||||||||||||||||
9601 Renner Blvd. | Lenexa | KS | — | VoiceStream PCS II Corporation (T-Mobile USA, Inc.) | 77,484 | 364 | 286 | 9,362 | 12/2019 | |||||||||||||||||||||||
12/31/2019 | 400 Butler Farm Rd. | Hampton | VA | — | Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) | 100,632 | 253 | 251 | - | - | ||||||||||||||||||||||
850-950 Warrenville Rd. | Lisle | IL | — | National-Louis University / James J. Benes & Associates, Inc. | 91,879 | 387 | 391 | 9,406 | 06/2016 | |||||||||||||||||||||||
2020 | 2/14/2020 | 5600 Broken Sound Blvd. | Boca Raton | FL | — | Canon Solutions America, Inc. (Oce - USA Holding, Inc.) | 143,290 | 596 | 561 | 19,559 | 02/2020 | |||||||||||||||||||||
5/31/2020 | 2401 Cherahala Blvd. | Knoxville | TN | — | CaremarkPCS, L.L.C. | 59,748 | 187 | 193 | - | - | ||||||||||||||||||||||
6/30/2020 | 3711 San Gabriel | Mission | TX | — | VoiceStream PCS II Corporation / T-Mobile West Corporation | 75,016 | 234 | 247 | - | - | ||||||||||||||||||||||
7/31/2020 | 13775 McLearen Rd. | Herndon | VA | 12 | Orange Business Services U.S., Inc. (Equant N.V.) | 132,617 | 436 | 415 | - | - | ||||||||||||||||||||||
8/31/2020 | 133 First Park Dr. | Oakland | ME | — | Omnipoint Holdings, Inc. (T-Mobile USA, Inc.) | 78,610 | 361 | 287 | 8,777 | 10/2020 | ||||||||||||||||||||||
9/30/2020 | 600 Business Center Dr. | Lake Mary | FL | — | JPMorgan Chase Bank, National Association | 125,155 | 417 | 439 | - | - | ||||||||||||||||||||||
9200 South Park Center Loop | Orlando | FL | — | Zenith Education Group, Inc. (ECMC Group, Inc.) | 59,927 | 286 | 284 | 9,433 | 02/2017 | |||||||||||||||||||||||
550 International Parkway | Lake Mary | FL | — | JPMorgan Chase Bank, National Association | 125,920 | 420 | 441 | - | - | |||||||||||||||||||||||
10/31/2020 | 12209 West Markham St. | Little Rock | AR | — | Entergy Arkansas, Inc. | 36,311 | 59 | 59 | - | - | ||||||||||||||||||||||
2021 | 1/31/2021 | 1701 Market St. | Philadelphia | PA | — | Morgan, Lewis & Bockius LLP | 289,432 | 1,085 | 1,074 | - | - |
28 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year
of Lease Expiration | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft. Leased or Available (1) | Cash Rent as of 3/31/2016 ($000) (2) | GAAP Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||||||||||||||
4/30/2021 | 11511 Luna Rd. | Farmers Branch | TX | 11 | International Business Machines Corporation | 66,018 | 227 | 291 | - | - | ||||||||||||||||||||||
6/30/2021 | 1415 Wyckoff Rd. | Wall | NJ | — | New Jersey Natural Gas Company | 157,511 | 943 | 943 | 16,198 | 01/2021 | ||||||||||||||||||||||
2050 Roanoke Rd. | Westlake | TX | 18 | TD Auto Finance LLC / Charles Schwab & Co, Inc. | 130,199 | 289 | 651 | - | - | |||||||||||||||||||||||
8/31/2021 | 333 Three D Systems Cir. | 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 | 633 | 582 | 13,581 | 11/2021 | ||||||||||||||||||||||
12/31/2021 | 2800 Waterford Lake Dr. | Midlothian | VA | — | Alstom Power, Inc. | 99,057 | 564 | 546 | - | - | ||||||||||||||||||||||
2022 | 1/31/2022 | 26210 and 26220 Enterprise Ct. | Lake Forest | CA | 7 | Apria Healthcare, Inc. (Apria Healthcare Group, Inc.) | 100,012 | 345 | 300 | - | - | |||||||||||||||||||||
6/30/2022 | 8555 South River Pkwy. | Tempe | AZ | — | DA Nanomaterials L.L.C./ Air Products and Chemicals, Inc. | 95,133 | 406 | 427 | - | - | ||||||||||||||||||||||
7/31/2022 | 1440 E 15th Street | Tucson | AZ | — | CoxCom, LLC | 28,591 | 140 | 140 | - | - | ||||||||||||||||||||||
11/30/2022 | 4201 Marsh Ln. | Carrollton | TX | — | Carlson Restaurants Inc. (Carlson, Inc.) | 130,000 | 540 | 466 | - | - | ||||||||||||||||||||||
12/31/2022 | 147 Milk St. | Boston | MA | — | Atrius Health, Inc. | 52,337 | 425 | 415 | 12,241 | 12/2018 | ||||||||||||||||||||||
231 N. Martingale Rd. | Schaumburg | IL | — | CEC Educational Services, LLC (Career Education Corporation) | 317,198 | 1,100 | 1,076 | - | - | |||||||||||||||||||||||
2023 | 2/28/2023 | 1315 West Century Dr. | Louisville | CO | — | Rogue Wave Software, Inc. | 20,000 | 23 | 37 | - | - | |||||||||||||||||||||
3/31/2023 | 8900 Freeport Pkwy. | Irving | TX | — | Nissan Motor Acceptance Corporation (Nissan North America, Inc.) | 225,049 | 904 | 856 | - | - | ||||||||||||||||||||||
12/14/2023 | 3333 Coyote Hill Rd. | Palo Alto | CA | — | Xerox Corporation | 202,000 | 1,767 | 1,661 | 47,225 | 12/2023 | ||||||||||||||||||||||
2024 | 2/14/2024 | 1362 Celebration Blvd. | Florence | SC | — | MED3000, Inc. | 32,000 | 137 | 143 | - | - | |||||||||||||||||||||
5/31/2024 | 3476 Stateview Blvd. | Fort Mill | SC | — | Wells Fargo Bank, N.A. | 169,083 | 460 | 489 | - | - | ||||||||||||||||||||||
3480 Stateview Blvd. | Fort Mill | SC | — | Wells Fargo Bank, N.A. | 169,218 | 460 | 506 | - | - | |||||||||||||||||||||||
8/31/2024 | 10475 Crosspoint Blvd. | Indianapolis | IN | — | RGN-Indianapolis I, LLC | 14,236 | 73 | 73 | - | - | ||||||||||||||||||||||
10/31/2024 | 1409 Centerpoint Blvd. | Knoxville | TN | — | Alstom Power, Inc. | 84,404 | 286 | 314 | - | - | ||||||||||||||||||||||
12/31/2024 | 12000 & 12025 Tech Center Dr. | Livonia | MI | — | Kelsey-Hayes Company (TRW Automotive Inc.) | 180,230 | 401 | 422 | - | - | ||||||||||||||||||||||
2025 | 1/31/2025 | 1401 Nolan Ryan Expy. | Arlington | TX | — | Triumph Aerostructures, LLC (Triumph Group, Inc.) | 111,409 | 418 | 405 | - | - | |||||||||||||||||||||
2/28/2025 | 6555 Sierra Dr. | Irving | TX | — | TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC) | 247,254 | 747 | 701 | - | - | ||||||||||||||||||||||
1401 Nolan Ryan Expy. | Arlington | TX | — | Cyient, Inc. (Infotech Enterprise Limited) | 13,590 | 51 | 49 | - | - | |||||||||||||||||||||||
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 | 211 | 228 | - | - | ||||||||||||||||||||||
5/31/2025 | 1701 Market St. | Philadelphia | PA | — | TruMark Financial Credit Union | 2,641 | 59 | 59 | - | - | ||||||||||||||||||||||
6/30/2025 | 2500 Patrick Henry Pkwy. | McDonough | GA | — | Georgia Power Company | 111,911 | 332 | 355 | - | - | ||||||||||||||||||||||
9/30/2025 | 10001 Richmond Ave. | Houston | TX | — | Schlumberger Holdings Corp. | 554,385 | 1,317 | 1,510 | - | - | ||||||||||||||||||||||
11/30/2025 | 11707 Miracle Hills Dr. | Omaha | NE | — | Infocrossing, Inc. | 85,200 | 292 | 292 | 7,560 | 04/2016 | ||||||||||||||||||||||
12/31/2025 | 2005 East Technology Cir. | Tempe | AZ | — | Infocrossing, Inc. | 60,000 | 282 | 282 | 7,140 | 04/2016 | ||||||||||||||||||||||
4001 International Pkwy. | Carrollton | TX | — | Motel 6 Operating, LP | 138,443 | 532 | 556 | - | - | |||||||||||||||||||||||
2026 | 3/31/2026 | 500 Olde Worthington Rd. | Westerville | OH | — | InVentiv Communications, Inc. | 97,000 | 140 | 277 | - | - | |||||||||||||||||||||
4/30/2026 | 2000 Eastman Dr. | Milford | OH | — | Siemens Corporation | 221,215 | 622 | 618 | - | - | ||||||||||||||||||||||
800 East Canal St. | Richmond | VA | — | Richmond Belly Ventures, LLC (David Duke, Lauren Duke, Terrence Kee, Cara Kee and John Bokel) | 2,568 | - | - | - | - | |||||||||||||||||||||||
8/31/2026 | 2211 South 47th St. | Phoenix | AZ | — | Avnet, Inc. | 176,402 | 551 | 669 | - | - | ||||||||||||||||||||||
11/30/2026 | 500 Kinetic Dr. | Huntington | WV | — | AMZN WVCS LLC (Amazon.com, Inc.) | 68,693 | 272 | 317 | 6,500 | 02/2017 | ||||||||||||||||||||||
12/29/2026 | 5500 New Albany Rd. | Columbus | OH | — | Evans, Mechwart, Hambleton & Tilton, Inc. | 104,807 | 411 | 434 | - | - | ||||||||||||||||||||||
2027 | 1/31/2027 | 1701 Market St. | Philadelphia | PA | — | Drybar Holdings LLC | 1,975 | - | - | - | - | |||||||||||||||||||||
4/30/2027 | 1315 West Century Dr. | Louisville | CO | — | Global Healthcare Exchange, Inc. (Global Healthcare Exchange, LLC) | 86,877 | 297 | 322 | - | - | ||||||||||||||||||||||
6/30/2027 | 3902 Gene Field Rd. | St. Joseph | MO | — | Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation) | 98,849 | 455 | 498 | - | - | ||||||||||||||||||||||
7/6/2027 | 2221 Schrock Rd. | Columbus | OH | — | MS Consultants, Inc. | 42,290 | 149 | 160 | - | - | ||||||||||||||||||||||
8/7/2027 | 25 Lakeview Dr. | Jessup | PA | — | TMG Health, Inc. | 150,000 | 507 | 625 | - | - | ||||||||||||||||||||||
10/31/2027 | 11201 Renner Blvd. | Lenexa | KS | — | United States of America | 169,585 | 1,087 | 1,525 | 36,251 | 11/2027 | ||||||||||||||||||||||
11/30/2027 | 1700 Millrace Dr. | Eugene | OR | 10 | Oregon Research Institute / Educational Policy Improvement Center | 80,011 | 432 | 521 | - | - | ||||||||||||||||||||||
12/31/2027 | 333 Mt. Hope Ave. | Rockaway | NJ | — | Atlantic Health System, Inc. | 92,326 | 329 | 299 | - | - |
29 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year
of Lease Expiration | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft. Leased or Available (1) | Cash Rent as of 3/31/2016 ($000) (2) | GAAP Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||||
OFFICE PROPERTIES | ||||||||||||||||||||||||||||||||
2028 | 4/30/2028 | 9655 Maroon Cir. | Englewood | CO | — | TriZetto Corporation | 166,912 | 879 | 961 | - | - | |||||||||||||||||||||
2029 | 1/31/2029 | 6226 West Sahara Ave. | Las Vegas | NV | — | Nevada Power Company | 282,000 | 772 | 1,063 | - | - | |||||||||||||||||||||
3/31/2029 | 2800 High Meadow Cir. | Auburn Hills | MI | — | Faurecia USA Holdings, Inc. | 278,000 | 781 | 887 | - | - | ||||||||||||||||||||||
2030 | 7/31/2030 | 3940 South Teller St. | Lakewood | CO | — | Addenbrooke Classical Academy | 68,165 | 96 | 87 | - | - | |||||||||||||||||||||
8/31/2030 | 800 East Canal St. | Richmond | VA | — | McGuireWoods LLP | 224,537 | 1,623 | 1,796 | 57,500 | 02/2031 | ||||||||||||||||||||||
9/30/2030 | 800 East Canal St. | Richmond | VA | — | CCA Industries, Inc. (The Riverstone Group, LLC), | 25,707 | 164 | 173 | - | - | ||||||||||||||||||||||
2031 | 1/10/2031 | 810 Gears Rd. | Houston | TX | — | United States of America | 68,985 | 164 | 334 | - | - | |||||||||||||||||||||
3/1/2031 | 800 East Canal St. | Richmond | VA | — | Towne Bank | 26,047 | 54 | 252 | - | - | ||||||||||||||||||||||
2032 | 10/31/2032 | 143 Diamond Ave. | Parachute | CO | — | Encana Oil and Gas (USA) Inc. (Alenco Inc.) | 49,024 | 274 | 321 | - | - | |||||||||||||||||||||
12/31/2032 | 3030 North 3rd St. | Phoenix | AZ | — | CopperPoint Mutual Insurance Company | 252,400 | 1,034 | 1,264 | - | - | ||||||||||||||||||||||
2033 | 11/30/2033 | 1331 Capitol Ave. | Omaha | NE | — | The Gavilon Group, LLC | 127,810 | 721 | 828 | - | - | |||||||||||||||||||||
12/31/2033 | 3000 Busch Lake Blvd. | Tampa | FL | — | BluePearl Holdings, LLC | 17,000 | 126 | 126 | - | - | ||||||||||||||||||||||
2910 Busch Lake Blvd. | Tampa | FL | — | BluePearl Holdings, LLC | 2,500 | 14 | 14 | - | - | |||||||||||||||||||||||
2950 Busch Lake Blvd. | Tampa | FL | — | BluePearl Holdings, LLC | 8,000 | 40 | 40 | - | - | |||||||||||||||||||||||
19311 SH 249 | Houston | TX | — | BluePearl Holdings, LLC | 12,622 | 56 | 56 | - | - | |||||||||||||||||||||||
2039 | 3/31/2039 | 854 Paragon Way | Rock Hill | SC | — | Physicians Choice Laboratory Services, LLC | 104,497 | 472 | 464 | - | - | |||||||||||||||||||||
2088 | 8/8/2088 | 800 East Canal St. | Richmond | VA | — | The City of Richmond, Virginia | - | 103 | 103 | - | - | |||||||||||||||||||||
N/A | N/A | 1701 Market St. | Philadelphia | PA | — | Parking Operations | - | 679 | 679 | - | - | |||||||||||||||||||||
Vacancy | 10475 Crosspoint Blvd. | Indianapolis | IN | — | (Available for Lease) | 3,764 | - | - | - | - | ||||||||||||||||||||||
1701 Market St. | Philadelphia | PA | — | (Available for Lease) | 699 | - | - | - | - | |||||||||||||||||||||||
810 Gears Rd. | Houston | TX | — | (Available for Lease) | 9,910 | - | - | - | - | |||||||||||||||||||||||
1401 Nolan Ryan Expy. | Arlington | TX | — | (Available for Lease) | 36,809 | - | - | - | - | |||||||||||||||||||||||
OFFICE TOTAL/WEIGHTED AVERAGE | 99.6% Leased | 12,632,799 | 47,702 | 51,557 | 374,580 |
30 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year
of Lease Expiration | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.
Ft. Leased or Available (1) | Cash Rent as of 3/31/2016 ($000) (2) | GAAP Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||||
INDUSTRIAL PROPERTIES | ||||||||||||||||||||||||||||||||
2016 | 7/31/2016 | 7111 Crabb Rd. | Temperance | MI | — | Michelin North America, Inc. | 744,570 | 571 | 571 | - | - | |||||||||||||||||||||
12/31/2016 | 2935 Van Vactor Dr. | Plymouth | IN | — | Bay Valley Foods, LLC | 300,500 | 207 | 196 | 5,766 | 09/2016 | ||||||||||||||||||||||
2017 | 4/30/2017 | 3600 Army Post Rd. | Des Moines | IA | — | HP Enterprise Services, LLC | 405,000 | 658 | 513 | - | - | |||||||||||||||||||||
5/31/2017 | 191 Arrowhead Dr. | Hebron | OH | — | Owens Corning Insulating Systems, LLC | 250,410 | 139 | 139 | - | - | ||||||||||||||||||||||
200 Arrowhead Dr. | Hebron | OH | — | Owens Corning Insulating Systems, LLC | 400,522 | 222 | 222 | - | - | |||||||||||||||||||||||
6/30/2017 | 7500 Chavenelle Rd. | Dubuque | IA | — | The McGraw-Hill Companies, Inc. | 330,988 | 322 | 291 | 9,014 | 06/2017 | ||||||||||||||||||||||
9/30/2017 | 250 Swathmore Ave. | High Point | NC | — | Steelcase Inc. | 244,851 | 286 | 272 | - | - | ||||||||||||||||||||||
10/31/2017 | 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 | 513 | 479 | - | - | ||||||||||||||||||||||
2018 | 6/30/2018 | 1133 Poplar Creek Rd. | Henderson | NC | — | Staples, Inc. | 196,946 | 209 | 215 | - | - | |||||||||||||||||||||
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 | - | - | ||||||||||||||||||||||
749 Southrock Dr. | Rockford | IL | — | Jacobson Warehouse Company, Inc. (Jacobson Distribution Company, Inc. and Jacobson Transportation Company, Inc.) | 150,000 | 131 | 118 | - | - | |||||||||||||||||||||||
2019 | 10/17/2019 | 10345 Philipp Pkwy. | Streetsboro | OH | — | L'Oreal USA S/D, Inc. (L’Oreal USA, Inc.) | 649,250 | 704 | 653 | 17,546 | 09/2019 | |||||||||||||||||||||
12/31/2019 | 2415 US Hwy. 78 East | Moody | AL | — | Michelin North America, Inc. | 595,346 | 348 | 352 | - | - | ||||||||||||||||||||||
3686 South Central Ave. | Rockford | IL | — | Pierce Packaging Co. | 93,000 | 77 | 77 | - | - | |||||||||||||||||||||||
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 | 7,596 | 12/2020 | ||||||||||||||||||||||
6/30/2020 | 3102 Queen Palm Dr. | Tampa | FL | — | Time Customer Service, Inc. (Time Incorporated) | 229,605 | 321 | 309 | - | - | ||||||||||||||||||||||
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 | 3/31/2021 | 2455 Premier Dr. | Orlando | FL | — | Walgreen Co. / Walgreen Eastern Co. | 205,016 | 127 | 196 | - | - | |||||||||||||||||||||
5/31/2021 | 291 Park Center Dr. | Winchester | VA | — | Kraft Heinz Foods Company | 344,700 | 326 | 346 | - | - | ||||||||||||||||||||||
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 | 348 | 339 | - | - | ||||||||||||||||||||||
2022 | 3/31/2022 | 5417 Campus Dr. | Shreveport | LA | — | The Tire Rack, Inc. | 257,849 | 319 | 335 | - | - | |||||||||||||||||||||
2023 | 2/28/2023 | 7670 Hacks Cross Rd. | Olive Branch | MS | — | MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated) | 268,104 | 232 | 226 | - | - | |||||||||||||||||||||
12/31/2023 | 1601 Pratt Ave. | Marshall | MI | — | Autocam Corporation | 58,707 | 77 | 77 | - | - | ||||||||||||||||||||||
2024 | 4/30/2024 | 113 Wells St. | North Berwick | ME | — | United Technologies Corporation | 993,685 | 491 | 450 | 4,468 | 04/2019 | |||||||||||||||||||||
5/31/2024 | 901 East Bingen Point Way | Bingen | WA | — | The Boeing Company | 124,539 | 632 | 659 | - | - | ||||||||||||||||||||||
2025 | 6/30/2025 | 10000 Business Blvd. | Dry Ridge | KY | — | Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited) | 336,350 | 336 | 336 | - | - | |||||||||||||||||||||
301 Bill Bryan Rd. | Hopkinsville | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 424,904 | 422 | 422 | - | - | |||||||||||||||||||||||
4010 Airpark Dr. | Owensboro | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 211,598 | 302 | 302 | - | - | |||||||||||||||||||||||
730 North Black Branch Rd. | Elizabethtown | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 167,770 | 134 | 134 | - | - | |||||||||||||||||||||||
750 North Black Branch Rd. | Elizabethtown | KY | — | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 539,592 | 710 | 710 | - | - | |||||||||||||||||||||||
7/14/2025 | 590 Ecology Ln. | Chester | SC | — | Boral Stone Products LLC (Boral Limited) | 420,597 | 565 | 416 | 8,570 | 08/2025 | ||||||||||||||||||||||
7/31/2025 | 7005 Cochran Rd. | Glenwillow | OH | — | Royal Appliance Mfg. Co. | 458,000 | 525 | 515 | 15,230 | 09/2016 | ||||||||||||||||||||||
12/31/2025 | 1700 47th Ave North | Minneapolis | MN | — | Owens Corning Roofing and Asphalt, LLC | 18,620 | 138 | 138 | - | - | ||||||||||||||||||||||
2026 | 3/30/2026 | 121 Technology Dr. | Durham | NH | 15 | Heidelberg Americas, Inc. (Heidelberger Druckmaschinen AG) / Goss International Americas, Inc. (Goss International Corporation) | 500,500 | 2,167 | 634 | - | - | |||||||||||||||||||||
3/31/2026 | 633 Garrett Pkwy. | Lewisburg | TN | — | Calsonic Kansei North America, Inc. | 310,000 | 299 | 322 | - | - | ||||||||||||||||||||||
6/30/2026 | 351 Chamber Dr. | Chillicothe | OH | — | The Kitchen Collection, Inc. | 475,218 | 270 | 290 | - | - | ||||||||||||||||||||||
9/30/2026 | 900 Industrial Blvd. | Crossville | TN | — | Dana Commercial Vehicle Products, LLC | 222,200 | 144 | 144 | - | - |
31 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year of Lease Expiration | Date of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.
Ft. Leased or Available (1) | Cash Rent as of 3/31/2016 ($000) (2) | GAAP Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||||
INDUSTRIAL PROPERTIES | ||||||||||||||||||||||||||||||||
10/31/2026 | 5001 Greenwood Rd. | Shreveport | LA | — | Libbey Glass Inc. (Libbey Inc.) | 646,000 | 532 | 541 | 19,000 | 07/2017 | ||||||||||||||||||||||
11/30/2026 | 250 Rittenhouse Cir. | Bristol | PA | — | Northtec LLC (The Estée Lauder Companies Inc.) | 241,977 | 278 | 287 | - | - | ||||||||||||||||||||||
736 Addison Rd. | Erwin | NY | — | Corning Property Management Corporation | 408,000 | 334 | 308 | 7,742 | 10/2018 | |||||||||||||||||||||||
2027 | 2/28/2027 | 3456 Meyers Ave. | Memphis | TN | — | Sears, Roebuck and Co. / Sears Logistics Services | 780,000 | 398 | 424 | - | - | |||||||||||||||||||||
554 Nissan Pkwy. | Canton | MS | — | Nissan North America, Inc. | 1,466,000 | 1,433 | 1,550 | - | - | |||||||||||||||||||||||
4/30/2027 | 2424 Alpine Rd. | Eau Claire | WI | 20 | Silver Spring Foods, Inc. (Huntsinger Farms, Inc.) | 159,000 | 267 | 251 | - | - | ||||||||||||||||||||||
12/31/2027 | 10590 Hamilton Ave. | Cincinnati | OH | — | The Hillman Group, Inc. | 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) | 140,330 | 1,193 | 1,284 | 48,450 | 03/2028 | |||||||||||||||||||||
8/31/2028 | 1420 Greenwood Rd. | McDonough | GA | 19 | Americold Logistics, LLC / United States Cold Storage, Inc | 296,972 | 680 | 529 | 22,148 | 11/2017 | ||||||||||||||||||||||
2029 | 11/24/2029 | 318 Pappy Dunn Blvd. | Anniston | AL | — | International Automotive Components Group North America, Inc. | 276,782 | 399 | 435 | - | - | |||||||||||||||||||||
2030 | 3/31/2030 | 549 Wingo Rd. | Byhalia | MS | — | Asics America Corporation (Asics Corporation) | 855,878 | 975 | 1,106 | 15,000 | 06/2016 | |||||||||||||||||||||
5/31/2030 | 3301 Stagecoach Rd. NE | Thomson | GA | — | Hollander Sleep Products, LLC (Hollander Home Fashions Holdings) | 208,000 | 209 | 232 | - | - | ||||||||||||||||||||||
2031 | 5/31/2031 | 671 Washburn Switch Rd. | Shelby | NC | — | Clearwater Paper Corporation | 673,518 | 579 | 650 | - | - | |||||||||||||||||||||
2033 | 10/31/2033 | 1001 Innovation Rd. | Rantoul | IL | — | Easton-Bell Sports, Inc. | 813,126 | 886 | 1,037 | - | - | |||||||||||||||||||||
2034 | 9/30/2034 | 5625 North Sloan Ln. | North Las Vegas | NV | — | Nicholas and Co., Inc. | 180,235 | 546 | 639 | - | - | |||||||||||||||||||||
2035 | 3/31/2035 | 7007 F.M. 362 | Brookshire | TX | — | Orizon Industries, Inc. (Spitzer Industries, Inc.) | 262,095 | 393 | 478 | - | - | |||||||||||||||||||||
13863 Industrial Rd. | Houston | TX | — | Curtis Kelly, Inc. (Spitzer Industries, Inc.) | 187,800 | 501 | 609 | - | - | |||||||||||||||||||||||
6/30/2035 | 111 West Oakview Pkwy. | Oak Creek | WI | — | Stella & Chewy's, LLC | 164,007 | 466 | 524 | - | - | ||||||||||||||||||||||
8/31/2035 | 2800 Polar Way | Richland | WA | 21 | Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC) | 456,412 | 2,698 | 3,283 | 110,000 | 01/2026 | ||||||||||||||||||||||
10/22/2035 | 2860 Clark St. | Detroit | MI | — | FCA US LLC (f/k/a Chrysler Group LLC) | 190,003 | 521 | 521 | - | - | ||||||||||||||||||||||
N/A | Vacancy | 324 Industrial Park Rd. | Franklin | NC | — | (Available for Lease) | 72,868 | - | - | - | - | |||||||||||||||||||||
3350 Miac Cove Rd. | Memphis | TN | — | (Available for Lease) | 32,679 | - | - | - | - | |||||||||||||||||||||||
INDUSTRIAL TOTAL/WEIGHTED AVERAGE | 99.6% Leased | 25,751,139 | 31,629 | 31,095 | 290,530 |
32 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year of Lease Expiration | Date of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft.
Leased or Available (1) | Cash
Rent as of 3/31/2016 ($000) (2) | GAAP
Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||||
LAND AND INFRASTRUCTURE PROPERTIES | ||||||||||||||||||||||||||||||||
2029 | 1/31/2029 | 175 Holt Garrison Pkwy. | Danville | VA | — | Home Depot USA, Inc. | - | 65 | 54 | - | - | |||||||||||||||||||||
2032 | 4/30/2032 | 13930 Pike Rd. | Missouri City | TX | — | Vulcan Construction Materials, LP (Vulcan Materials Company) | - | 464 | 531 | - | - | |||||||||||||||||||||
2038 | 3/31/2038 | 13901/14035 Industrial Rd. | Houston | TX | — | Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC) | 132,449 | 1,375 | 1,693 | - | - | |||||||||||||||||||||
2048 | 12/31/2048 | 30 Light St | Baltimore | MD | — | 30 Charm City, LLC | - | 75 | 75 | - | - | |||||||||||||||||||||
2055 | 1/31/2055 | 499 Derbyshire Dr. | Venice | FL | — | Littlestone Brotherhood LLC | 31,180 | 320 | 477 | - | - | |||||||||||||||||||||
2112 | 8/31/2112 | 201-215 N. Charles St. | Baltimore | MD | — | 201 NC Leasehold LLC | - | 68 | 68 | - | - | |||||||||||||||||||||
10/31/2112 | 350 and 370-372 Canal St. | New York | NY | — | FC-Canal Ground Tenant LLC | - | 1,257 | 3,722 | 69,241 | 01/2027 | ||||||||||||||||||||||
309-313 West 39th St. | New York | NY | — | SM Ascott LLC | - | 1,467 | 4,343 | 80,789 | 01/2027 | |||||||||||||||||||||||
8-12 Stone St. | New York | NY | — | AL-Stone Ground Tenant LLC | - | 1,147 | 3,397 | 63,196 | 01/2027 | |||||||||||||||||||||||
2113 | 10/31/2113 | 15 West 45th St. | New York | NY | 7 | ZE-45 Ground Tenant LLC | - | 383 | 1,155 | 29,193 | 01/2025 | |||||||||||||||||||||
LAND AND INFRASTRUCTURE TOTAL/WEIGHTED AVERAGE | 100.0% Leased | 163,629 | 6,621 | 15,515 | 242,419 |
33 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year
of Lease Expiration | Date
of Lease Expiration | Property Location | City | State | Note | Primary Tenant | Sq.Ft. | Percentage Leased | Cash
Rent as of 3/31/2016 ($000) (2) | GAAP
Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | ||||||||||||||||||||||||
MULTI-TENANT PROPERTIES (8,14) | ||||||||||||||||||||||||||||||||||||
Various | Various | 13430 North Black Canyon Fwy. | Phoenix | AZ | — | Multi-Tenant | 138,940 | 92 | % | 521 | 580 | - | - | |||||||||||||||||||||||
1501 Nolan Ryan Expy. | Arlington | TX | 4 | Multi-Tenant | 74,739 | 0 | % | - | - | - | - | |||||||||||||||||||||||||
1600 Eberhardt Rd. | Temple | TX | — | Nextel of Texas, Inc. (Nextel Finance Company) | 108,800 | 49 | % | 273 | 202 | 7,463 | 01/2016 | |||||||||||||||||||||||||
2210 Enterprise Dr. | Florence | SC | 11 | Caliber Funding, LLC | 176,557 | 21 | % | 194 | 182 | - | - | |||||||||||||||||||||||||
26555 Northwestern Pkwy. | Southfield | MI | — | Multi-Tenant | 359,645 | 0 | % | - | - | - | - | |||||||||||||||||||||||||
275 Technology Dr. | Canonsburg | PA | — | Multi-Tenant | 107,872 | 0 | % | - | - | - | - | |||||||||||||||||||||||||
33 Commercial St. | Foxborough | MA | — | Multi-Tenant | 160,719 | 5 | % | 37 | 37 | - | - | |||||||||||||||||||||||||
3165 McKelvey Rd. | Bridgeton | MO | — | BJC Health System | 51,067 | 50 | % | 108 | 101 | - | - | |||||||||||||||||||||||||
6050 Dana Way | Antioch | TN | — | Multi-Tenant | 674,528 | 98 | % | 562 | 564 | - | - | |||||||||||||||||||||||||
700 US Hwy. Route 202-206 | Bridgewater | NJ | — | Multi-Tenant | 115,558 | 0 | % | - | - | 14,118 | 03/2016 | |||||||||||||||||||||||||
700 Oakmont Ln. | Westmont | IL | — | Multi-Tenant | 269,715 | 0 | % | - | - | - | - | |||||||||||||||||||||||||
King St./1042 Fort St. Mall | Honolulu | HI | — | Multi-Tenant | 77,459 | 62 | % | 184 | 184 | - | - | |||||||||||||||||||||||||
MULTI-TENANT TOTAL/WEIGHTED AVERAGE | 41.6% Leased | 2,315,599 | $ | 1,879 | $ | 1,850 | $ | 21,581 |
34 |
LEXINGTON REALTY TRUST
Property Leases and Vacancies - Consolidated Portfolio - 3/31/2016
Year of Lease Expiration | Date of Lease Expiration | Property Location | City | State | Note | Primary Tenant (Guarantor) | Sq.Ft.
Leased or Available (1) | Cash Rent as of 3/31/2016 ($000) (2) | GAAP
Rent as of 3/31/2016 ($000) (3) | 3/31/2016 Debt Balance ($000) | Debt Maturity | |||||||||||||||||||
RETAIL/SPECIALTY PROPERTIES | ||||||||||||||||||||||||||||||
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., NW | 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 | 35 | 35 | - | - | ||||||||||||||||||||
2411 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 | — | St Anthony Supermarket Corp. (Anthony Pena, Marina Pena, Anthony Corona, Robert Corona) | 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 | 465 | 07/2018 | ||||||||||||||||||||
12080 Carmel Mountain Rd. | San Diego | CA | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 107,210 | 12 | 188 | 528 | 07/2018 | |||||||||||||||||||||
21082 Pioneer Plaza Dr. | Watertown | NY | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 120,727 | 18 | 120 | 779 | 07/2018 | |||||||||||||||||||||
255 Northgate Dr. | Manteca | CA | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 107,489 | 19 | 139 | 828 | 07/2018 | |||||||||||||||||||||
5350 Leavitt Rd. | Lorain | OH | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 193,193 | 27 | 183 | 1,173 | 07/2018 | |||||||||||||||||||||
97 Seneca Trail | Fairlea | WV | — | Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.) | 90,933 | 13 | 87 | 547 | 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 | 39 | - | - | |||||||||||||||||||
2026 | 5/31/2026 | 6910 South Memorial Hwy. | Tulsa | OK | — | Toys “R” Us, Inc. / Toys "R" Us-Delaware, Inc. | 43,123 | 59 | 59 | - | - | |||||||||||||||||||
2028 | 8/31/2028 | 9803 Edmonds Way | Edmonds | WA | — | Pudget Consumers Co-op d/b/a PCC Natural Markets | 35,459 | 162 | 162 | - | - | |||||||||||||||||||
11/30/2028 | 832 N. Westover Blvd . | Albany | GA | — | Gander Mountain Company | 45,554 | 157 | 173 | - | - | ||||||||||||||||||||
2043 | 2/28/2043 | 1237 W. Sherman Ave. | Vineland | NJ | — | HealthSouth Rehabilitation Hospital of South Jersey, LLC (HealthSouth Corporation) | 39,287 | 281 | 281 | - | - | |||||||||||||||||||
N/A | Vacancy | 1084 East Second St. | Franklin | OH | — | (Available for Lease) | 29,119 | - | - | - | - | |||||||||||||||||||
RETAIL/SPECIALTY TOTAL/WEIGHTED AVERAGE | 97.8% Leased | 1,318,441 | 1,624 | 2,432 | 4,320 | |||||||||||||||||||||||||
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE | 96.4% Leased (17) | 42,181,607 | 89,455 | 102,449 | 933,430 |
Footnotes
1 | Square foot leased or available. |
2 | Three months ended 3/31/2016 cash rent. |
3 | Three months ended 3/31/2016 GAAP rent. |
4 | Subsequent to 3/31/2016, Lexington entered into a 10-year lease for the entire space. |
5 | Tenant terminated its lease effective 1/31/2017 for a cash payment of $3.5 million received in 2015. |
6 | Lexington has a 71.1% interest in this property. |
7 | Property sold subsequent to 3/31/2016. |
8 | Multi-tenant properties are properties less than 50% leased to a single tenant. |
9 | Tenant terminated its lease effective 6/30/2017 for a cash payment of $0.4 million received in 2015. |
10 | 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. |
11 | Cash and GAAP rent amounts represent/include prior tenant. |
12 | 21,365 square feet is leased to 7/31/2025. |
13 | Tenant terminated its lease effective 7/8/2016 for a cash payment of $1.5 million received in 2015. |
14 | The multi-tenanted properties incurred approximately $1.5 million in operating expenses, net for the three months ended 3/31/2016. |
15 | Heidelberg Americas, Inc. lease expires 3/30/2021, however, new tenant (Goss International Americas, Inc.) lease expires 3/30/2026. |
16 | Tenant terminated its lease effective 1/31/2017 for a cash payment of $2.0 million received in July 2015 and an additional $2.0 million is due in 2017. |
17 | Consolidated portfolio is 96.7% leased, excluding properties owned subject to mortgages in default. |
18 | TD Auto Finance LLC lease rent terminated effective 2/29/2016 for a payment of $7.7 million was paid in April 2016. New lease with Charles Schwab & Co. Inc. commenced 3/1/2016. |
19 | Americold Logistics, LLC lease terminated effective 4/15/2016 for $1.0 million to be paid over an 18 month period. New lease with United States Cold Storage, Inc. commenced 4/16/2016. |
20 | Tenant exercised purchase option for $13.6 million. Property classified as held for sale. |
21 | ConAgra Foods, Inc. provides credit support. |
35 |
LEXINGTON REALTY TRUST
Select Credit Metrics Summary
3/31/2015 | 3/31/2016 | |||||||
Company FFO Payout Ratio | 65.4 | % | 56.7 | % | ||||
Unencumbered Assets (1) | $ | 3.20 billion | $ | 3.20 billion | ||||
Unencumbered NOI | 68.4 | % | 67.0 | % | ||||
(Debt + Preferred) / Gross Assets | 44.1 | % | 45.5 | % | ||||
Debt/Gross Assets | 42.2 | % | 43.6 | % | ||||
Market Cap Leverage | 46.7 | % | 50.6 | % | ||||
Secured Debt / Gross Assets | 17.7 | % | 18.3 | % | ||||
Net Debt / EBITDA (3) | 6.5 | x | 6.5 | x | ||||
(Net Debt + Preferred) / EBITDA (3) | 6.8 | x | 6.8 | x | ||||
Credit Facilities Availability (2) | $ | 294.9 million | $ | 253.0 million | ||||
Development / Gross Assets | 2.9 | % | 2.3 | % | ||||
EBITDA / Revenue (3) | 75.3 | % | 75.7 | % | ||||
EBITDA / (PrefDiv + Interest Expense) (3) | 3.4 | x | 3.6 | x | ||||
(JV + Advisory Income) / Revenues | 0.5 | % | 0.6 | % |
Footnotes
(1) | Includes loans receivable. |
(2) | Subject to covenant compliance. |
(3) | EBITDA is defined as GAAP net income (loss) adjusted for (i) interest expense, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) gains and impairments relating to assets, (v) debt satisfaction charges (gains), (vi) the impact of straight-line rent on contractual lease terms, excluding tenant lease termination adjustments, (vii) above and below market lease amortization, (viii) non-cash charges and gains, (ix) minority interests, net, (x) equity in earnings of non-consolidated entities, and (xi) our share of EBITDA for non-consolidated entities calculated in the same manner. |
36 |
LEXINGTON REALTY TRUST
Historical Credit Metrics Summary
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Company FFO Payout Ratio | 48.5 | % | 56.1 | % | 60.3 | % | 60.8 | % | 61.8 | % | ||||||||||
Unencumbered Assets (1)(2) | $ | 1.15 billion | $ | 1.76 billion | $ | 2.59 billion | $ | 2.87 billion | $ | 3.30 billion | ||||||||||
Unencumbered NOI (1) | 25.9 | % | 34.5 | % | 55.3 | % | 59.9 | % | 69.2 | % | ||||||||||
(Debt + Preferred) / Gross Assets | 48.7 | % | 46.6 | % | 43.0 | % | 44.0 | % | 45.9 | % | ||||||||||
Debt/Gross Assets | 40.9 | % | 41.1 | % | 41.1 | % | 42.0 | % | 44.0 | % | ||||||||||
Market Cap Leverage | 52.5 | % | 46.6 | % | 45.4 | % | 43.7 | % | 52.5 | % | ||||||||||
Secured Debt / Gross Assets (1) | 31.9 | % | 30.9 | % | 23.9 | % | 19.0 | % | 17.7 | % | ||||||||||
Net Debt / EBITDA (4) | 5.5 | x | 6.5 | x | 6.4 | x | 5.7 | x | 6.7 | x | ||||||||||
(Net Debt + Preferred) / EBITDA (4) | 6.6 | x | 7.3 | x | 6.7 | x | 6.0 | x | 7.0 | x | ||||||||||
Credit Facilities Availability (3) | $ | 294.3 million | $ | 296.3 million | $ | 443.4 million | $ | 385.4 million | $ | 223.0 million | ||||||||||
Development / Gross Assets | 0.9 | % | 1.6 | % | 1.6 | % | 2.4 | % | 2.1 | % | ||||||||||
EBITDA / Revenue (4) | 77.0 | % | 76.5 | % | 74.4 | % | 71.8 | % | 71.8 | % | ||||||||||
EBITDA / (PrefDiv + Interest Expense) (4) | 2.3 | x | 2.4 | x | 3.1 | x | 3.1 | x | 3.3 | x | ||||||||||
(JV + Advisory Income) / Revenues | 8.5 | % | 4.4 | % | 0.5 | % | 0.4 | % | 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. |
(4) | EBITDA is defined as GAAP net income (loss) adjusted for (i) interest expense, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) gains and impairments relating to assets, (v) debt satisfaction charges (gains), (vi) the impact of straight-line rent on contractual lease terms, excluding tenant lease termination adjustments, (vii) above and below market lease amortization, (viii) non-cash charges and gains, (ix) minority interests, net, (x) equity in earnings of non-consolidated entities, and (xi) our share of EBITDA for non-consolidated entities calculated in the same manner. |
37 |
LEXINGTON REALTY TRUST
FINANCIAL COVENANTS (1)
Corporate Level Debt
Must be: | 3/31/2016 | |||
Bank Loans: | ||||
Maximum Leverage | < 60% | 47.9% | ||
Fixed Charge Coverage | > 1.5X | 2.6X | ||
Recourse Secured Indebtedness Ratio | < 10% cap value | 0.0% | ||
Secured Indebtedness Ratio | < 45% | 20.9% | ||
Unsecured Debt Service Coverage | > 2.0X | 4.7X | ||
Unencumbered Leverage | < 60% | 40.4% | ||
Bonds: | ||||
Debt to Total Assets | < 60% | 44.8% | ||
Secured Debt to Total Assets | < 40% | 18.8% | ||
Debt Service Coverage | > 1.5X | 4.0X | ||
Unencumbered Assets to Unsecured Debt | > 150% | 264.0% |
Footnotes
(1) | As defined in respective loan/bond agreements. |
38 |
LEXINGTON REALTY TRUST
Consolidated Properties: Mortgages and Notes Payable
3/31/2016
Property | Footnotes | Debt Balance ($000) | Interest Rate (%) | Maturity (a) | Current Estimated Annual Debt Service ($000) (d) | Balloon Payment ($000) | ||||||||||||||
Mortgages with Balloons | ||||||||||||||||||||
Temple, TX | (b) | $ | 7,463 | 6.090 | % | 01/2016 | $ | - | $ | 7,463 | ||||||||||
Bridgewater, NJ | (b) | 14,118 | 5.732 | % | 03/2016 | - | 14,118 | |||||||||||||
Omaha, NE | (q) | 7,560 | 5.610 | % | 04/2016 | 37 | 7,560 | |||||||||||||
Bremerton, WA | (o) | 5,479 | 6.090 | % | 04/2016 | 14 | 5,479 | |||||||||||||
Tempe, AZ | (q) | 7,140 | 5.610 | % | 04/2016 | 34 | 7,140 | |||||||||||||
Byhalia, MS | (j) | 15,000 | 4.710 | % | 06/2016 | 184 | 15,000 | |||||||||||||
Lisle, IL | 9,406 | 6.500 | % | 06/2016 | 185 | 9,377 | ||||||||||||||
Farmers Branch, TX | 18,373 | 5.939 | % | 07/2016 | 380 | 18,363 | ||||||||||||||
Glenwillow, OH | 15,230 | 6.130 | % | 09/2016 | 493 | 15,132 | ||||||||||||||
Plymouth, IN | 5,766 | 6.315 | % | 09/2016 | 197 | 5,723 | ||||||||||||||
Memphis, TN | 3,537 | 5.710 | % | 01/2017 | 223 | 3,484 | ||||||||||||||
Huntington, WV | 6,500 | 4.150 | % | 02/2017 | 248 | 6,500 | ||||||||||||||
Orlando, FL | 9,433 | 5.722 | % | 02/2017 | 626 | 9,309 | ||||||||||||||
Dubuque, IA | 9,014 | 5.402 | % | 06/2017 | 733 | 8,727 | ||||||||||||||
Shreveport, LA | 19,000 | 5.690 | % | 07/2017 | 1,099 | 19,000 | ||||||||||||||
McDonough, GA | 22,148 | 6.110 | % | 11/2017 | 1,674 | 21,651 | ||||||||||||||
Erwin, NY | 7,742 | 5.910 | % | 10/2018 | 728 | 6,637 | ||||||||||||||
Boston, MA | 12,241 | 6.100 | % | 12/2018 | 996 | 11,520 | ||||||||||||||
Overland Park, KS | 33,977 | 5.891 | % | 05/2019 | 2,657 | 31,812 | ||||||||||||||
Kansas City, MO | 16,196 | 5.883 | % | 05/2019 | 1,268 | 15,179 | ||||||||||||||
Columbus, IN | 19,911 | 2.210 | % | 07/2019 | 4,757 | 4,993 | ||||||||||||||
Meridian, ID | 9,213 | 6.010 | % | 08/2019 | 753 | 7,675 | ||||||||||||||
Streetsboro, OH | 17,546 | 5.749 | % | 09/2019 | 1,344 | 16,338 | ||||||||||||||
Lenexa, KS | 9,362 | 6.270 | % | 12/2019 | 774 | 7,770 | ||||||||||||||
Boca Raton, FL | 19,559 | 6.470 | % | 02/2020 | 1,542 | 18,414 | ||||||||||||||
Oakland, ME | 8,777 | 5.930 | % | 10/2020 | 750 | 7,660 | ||||||||||||||
Lavonia, GA | 7,596 | 5.460 | % | 12/2020 | 741 | 5,895 | ||||||||||||||
Charleston, SC | 7,161 | 5.850 | % | 02/2021 | 520 | 6,632 | ||||||||||||||
Whippany, NJ | 13,581 | 6.298 | % | 11/2021 | 1,344 | 10,400 | ||||||||||||||
New York, NY | (q) | 29,193 | 4.100 | % | 01/2025 | 1,217 | 29,193 | |||||||||||||
Chester, SC | 8,570 | 5.380 | % | 08/2025 | 1,144 | 362 | ||||||||||||||
Richland, WA | 110,000 | 4.000 | % | 01/2026 | 4,400 | 99,492 | ||||||||||||||
New York, NY | (e) | 213,226 | 4.660 | % | 01/2027 | 10,295 | 200,632 | |||||||||||||
Lenexa, KS | 36,251 | 3.700 | % | 11/2027 | 3,025 | 10,000 | ||||||||||||||
Richmond, VA | 57,500 | 5.191 | % | 02/2031 | 3,026 | 53,176 | ||||||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 812,769 | 4.996 | % | 7.1 | $ | 47,408 | $ | 717,806 |
39 |
LEXINGTON REALTY TRUST
Consolidated Properties: Mortgages and Notes Payable
3/31/2016
Property | Footnotes | Debt Balance ($000) | Interest Rate (%) | Maturity (a) | Current Estimated Annual Debt Service ($000) (d) | Balloon Payment ($000) | ||||||||||||||
Full Amortizing Mortgages | ||||||||||||||||||||
Lorain, OH | 1,173 | 7.750 | % | 07/2018 | 481 | - | ||||||||||||||
Manteca, CA | 828 | 7.750 | % | 07/2018 | 339 | - | ||||||||||||||
Watertown, NY | 779 | 7.750 | % | 07/2018 | 319 | - | ||||||||||||||
Fairlea, WV | 547 | 7.750 | % | 07/2018 | 224 | - | ||||||||||||||
San Diego, CA | 528 | 7.750 | % | 07/2018 | 216 | - | ||||||||||||||
Galesburg, IL | 465 | 7.750 | % | 07/2018 | 191 | - | ||||||||||||||
North Berwick, ME | 4,468 | 3.560 | % | 04/2019 | 1,532 | - | ||||||||||||||
Wall, NJ | 16,198 | 6.250 | % | 01/2021 | 3,774 | - | ||||||||||||||
Palo Alto, CA | 47,225 | 3.970 | % | 12/2023 | 7,059 | - | ||||||||||||||
Long Island City, NY | 48,450 | 3.500 | % | 03/2028 | 4,538 | - | ||||||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 120,661 | 4.208 | % | 8.6 | $ | 18,673 | $ | - | |||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 933,430 | 4.894 | % | 7.3 | $ | 66,081 | $ | 717,806 | |||||||||||
Corporate (k) | ||||||||||||||||||||
Revolving Credit Facility | (p) | $ | 147,000 | 1.438 | % | 08/2019 | $ | 2,143 | $ | 147,000 | ||||||||||
Term Loan | (m) | 250,000 | 2.192 | % | 08/2020 | 5,556 | 250,000 | |||||||||||||
Term Loan | (n) | 255,000 | 2.523 | % | 01/2021 | 6,523 | 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 | (i)(c) | 12,400 | 6.000 | % | 01/2030 | 744 | 12,400 | |||||||||||||
Trust Preferred Notes | (g) | 129,120 | 6.804 | % | 04/2037 | 8,785 | 129,120 | |||||||||||||
Subtotal/Wtg. Avg./Years Remaining (l) | $ | 1,293,520 | 3.493 | % | 7.2 | $ | 45,376 | $ | 1,293,520 | |||||||||||
Total/Wtg. Avg./Years Remaining (l) | $ | 2,226,950 | 4.080 | % | 7.2 | $ | 111,457 | $ | 2,011,326 |
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 $167 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 $239 excluded from balance. |
(g) | Rate fixed through 04/2017; thereafter, LIBOR plus 170 bps. |
(h) | Represents full payable of notes; discount of $1,745 excluded from balance. |
(i) | Holders have the right to redeem the notes on 01/15/17, 01/15/20 and 01/15/25. |
(j) | Property was expanded. Mortgage is recourse during expansion and Lexington was not released from the guaranty as of 3/31/2016. |
(k) | Unsecured. |
(l) | Total shown may differ from detailed amounts due to rounding. |
(m) | Rate ranges from LIBOR plus 0.90% to 1.75%. LIBOR rate fixed at 1.09% through February 2018 via interest rate swap agreements. |
(n) | Rate ranges from LIBOR plus 0.90% to 1.75%. LIBOR rate fixed at 1.42% through January 2019 via interest rate swap agreements. |
(o) | Subsequent to 3/31/2016, loan is in default. |
(p) | Rate ranges from LIBOR plus 0.85% and 1.55%. |
(q) | Loan satisfied subsequent to 3/31/16. |
40 |
LEXINGTON REALTY TRUST
Non- Consolidated Investments: Mortgages & Notes Payable
3/31/2016
Joint Venture | Debt
Balance ($000) | LXP
Proportionate Share ($000) (3) | Interest
Rate (%) | Maturity | Current Estimated Annual Debt Service ($000) | Balloon Payment ($000) | Proportionate
Share Balloon Payment ($000) (3) | |||||||||||||||||||
Rehab Humble Lessee | $ | 14,290 | $ | 2,143 | 4.700 | % | 05/2017 | $ | 950 | $ | 13,982 | $ | 2,097 | |||||||||||||
Gan Palm Beach Lessee | 14,395 | 3,599 | 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) | $ | 47,476 | $ | 8,561 | 4.052 | % | 1.9 | $ | 2,556 | $ | 46,541 | $ | 8,358 |
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. |
41 |
LEXINGTON REALTY TRUST
Debt Maturity Schedule
3/31/2016
($000)
Consolidated Properties | ||||||||||||
Year | Mortgage Scheduled Amortization | Mortgage Balloon Payments | Corporate Debt | |||||||||
2016 - remaining | $ | 19,108 | $ | 105,355 | $ | - | ||||||
2017 | 26,834 | 68,671 | 12,400 | |||||||||
2018 | 26,507 | 18,157 | - | |||||||||
2019 | 22,580 | 83,767 | 147,000 | |||||||||
2020 | 18,787 | 31,969 | 250,000 | |||||||||
$ | 113,816 | $ | 307,919 | $ | 409,400 | |||||||
Non-Consolidated Investments - LXP Proportionate Share | ||||||||||||
Year | Mortgage Scheduled Amortization | Mortgage Balloon Payments | ||||||||||
2016 - remaining | $ | 88 | $ | - | ||||||||
2017 | 94 | 2,097 | ||||||||||
2018 | 21 | 6,261 | ||||||||||
2019 | - | - | ||||||||||
2020 | - | - | ||||||||||
$ | 203 | $ | 8,358 |
Footnotes
(1) | Percentage denotes weighted-average interest rate. |
42 |
LEXINGTON REALTY TRUST
Mortgage Loans Receivable
3/31/2016
Collateral | ||||||||||||||||||||||
City | State | Loan Balance ($000)(1) | Interest Rate | Maturity Date | Current Estimated Annual Debt Service ($000)(2) | Balloon Payment ($000) | ||||||||||||||||
Office | Oklahoma City (3) | OK | $ | 8,420 | 11.50 | % | 03/2016 | $ | - | $ | 8,420 | |||||||||||
Retail | Various | Various | 857 | 8.00 | % | 02/2021 | 219 | - | ||||||||||||||
Various | Various | 404 | 8.00 | % | 12/2021 | 94 | - | |||||||||||||||
Various | Various | 535 | 8.00 | % | 03/2022 | 112 | - | |||||||||||||||
Hospital | Kennewick | WA | 85,554 | 9.00 | % | 05/2022 | 7,438 | 87,245 | ||||||||||||||
Total Mortgage Loans Receivable | $ | 95,770 | $ | 7,863 | $ | 95,665 |
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) | Short-term loan to joint venture partner. Loan is in default. |
43 |
LEXINGTON REALTY TRUST
Partnership Interests
Three months ended March 31, 2016
($000)
Noncontrolling Interest Properties - Partners' Proportionate Share (1) | ||||
EBITDA | $ | 160 | ||
Depreciation and amortization | $ | 8 | ||
Non-Consolidated Net Leased Real Estate - Lexington's Share | ||||
EBITDA | $ | 636 | ||
Interest expense | $ | 88 |
Footnotes
(1) | Excludes OP unit noncontrolling interests. |
44 |
LEXINGTON REALTY TRUST
Selected Balance Sheet and Income Statement Account Data
3/31/2016
($000)
Balance Sheet | ||||
Other assets | $ | 18,176 | ||
The components of other assets are: | ||||
Deposits | $ | 368 | ||
Equipment | 686 | |||
Prepaids | 3,359 | |||
Other receivables | 550 | |||
Deferred lease incentives | 13,061 | |||
Deferred tax asset | 27 | |||
Other | 125 | |||
Accounts payable and other liabilities | ||||
The components of accounts payable and other liabilities are: | $ | 35,688 | ||
Accounts payable and accrued expenses | $ | 9,950 | ||
CIP accruals and other | 3,180 | |||
Taxes | 2,551 | |||
Deferred lease and loan costs | 6,275 | |||
Deposits | 1,085 | |||
Escrows | 1,387 | |||
Transaction / build-to-suit costs | 4,696 | |||
Interest rate swap derivative liability | 6,564 | |||
Income Statement - Three months ended March 31, 2016 | ||||
Non-cash interest expense, net | $ | 20 |
45 |
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 |
Heather Gentry
Senior Vice President, Investor Relations
Telephone (direct) | (212) 692-7219 |
Facsimile (main) | (212) 594-6600 |
hgentry@lxp.com |
Research Coverage |
Bank of America/Merrill Lynch | Ladenburg Thalmann & Co., Inc. | |||
James Feldman | (646) 855-5808 | Daniel P. Donlan | (212) 409-2056 | |
Barclays Capital | Stifel Nicolaus | |||
Ross L. Smotrich | (212) 526-2306 | John W. Guinee | (443) 224-1307 | |
Evercore Partners | Wells Fargo Securities, LLC | |||
Sheila K. McGrath | (212) 497-0882 | Todd J. Stender | (562) 637-1371 | |
J.P. Morgan Chase | Jeffries & Company, Inc. | |||
Anthony Paolone | (212) 622-6682 | Omotayo Okusanya | (212) 336-7076 | |
KeyBanc Capital Markets Inc. | ||||
Craig Mailman | (917) 368-2316 |
46 |
Exhibit 99.2
Lexington Realty Trust – UNEDITED TRANSCRIPT
Q1 2016 Earnings Call
Company Participants:
T. Wilson Eglin, Chief Executive Officer and President
Patrick Carroll, Chief Financial Officer
Heather Gentry, Senior Vice President of Investor Relations
Operator:
Greetings and welcome to the Lexington Realty Trust First Quarter 2016 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation (Operator Instructions). It's now my pleasure to introduce your host, Heather Gentry, Investor Relations for Lexington Realty. Thank you. You may begin.
Heather Gentry:
Hello and welcome to the Lexington Reality Trust First Quarter 2016 Conference Call. The earnings press release was distributed over the wire this morning and the release and supplemental disclosure package will be furnished on a 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 receive a copy, these documents are available on our 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 the expectations reflected in any forward-looking statements are based on
reasonable assumptions, Lexington can give no assurance that its expectations will be attained.
Factors and risks that could cause actual results to differ materially from those expressed or implied by forward-looking statements, are detailed in today's press release and from time to time, in Lexington's filings with the SEC. And include the successful confirmation of any lease, acquisition, build-to-suit financing, disposition or other transaction, or the final terms of any such transaction. Except as required by law, Lexington does not undertake a duty to update any forward-looking statements. Operating performance measures of an individual investment are not presented or intended to be viewed as liquidity or performance measures that present a numerical measure of Lexington's historical or future financial performance, financial position or cash flows.
Joining me today to discuss Lexington's First Quarter 2016 results are Will Eglin, Chief Executive Officer; Pat Carroll, Chief Financial Officer and other executive members of management.
With that, I will turn the call over to Will.
Will Eglin:
Thanks, Heather. Welcome everyone and thank you for joining the call today. I'd like to start by discussing our operating results and notable highlights for the first quarter of 2016. We had a great quarter in which we completed approximately $65 million of non-core asset sales and raise cash renewal rents 6.5% on strong leasing volume of 1.7 million square feet. Company funds for operations were $0.30 per diluted share for the quarter, which represents a 3.4% increase over fourth quarter 2015. The increase was primarily due to higher revenues associated with acquisitions, principally the Preferred Freezer and McGuire Woods build-to-suit projects completed in the fourth quarter of 2015 and the Fiat Chrysler Automobiles acquisition in 2016, as well as operating cost savings. We just announced that we sold two additional assets subsequent to the end of the first quarter, which includes the $37.5 million sale of one of our New York City land investments at a 4.1% cap rate. Given the strong first quarter and our expectations for the remainder of the year, we are tightening our 2016 Company FFO guidance to a range of $1.03 to $1.08 per diluted share from a $1.00 to $1.10 per diluted share. Our new guidance still assumes we sell the remaining land investments as of June 30, 2016 at a sub 4.75% cap rate.
Turning to investments in January, we closed on the acquisition of a newly constructed 190,000 square foot industrial facility in Detroit, Michigan for $29.7 million. Initial cash and GAAP yields for the asset are 7.4% and the property is 100% leased for a 20-year term to Fiat Chrysler Automobiles.
During the quarter, we invested approximately $34 million in four ongoing build-to-suit projects. Our expectations are that three of these projects will be completed in 2016 and one will be completed in the first quarter of 2017. These assets will have a weighted average lease term of almost 19 years, and the three wholly owned properties are estimated to add annual rental revenue to the portfolio of approximately $26 million once completed.
After the quarter ended, we signed an agreement to fund the construction of a 165,000 square foot industrial facility in Opelika, Alabama for a maximum commitment of $37.0 million at an initial cash cap rate of 7.05%. The property will be net leased for 25 year term with 2% annual rent bumps to Golden State Foods, one of the largest food service providers to quick service restaurants around the country. We expect the property to be completed in May of 2017.
Investment opportunities remain plentiful, but there continues to be a lot of capital chasing transactions, especially in the purchase market. The build-to-suit market, which remains our most appealing investment choice due to the yield premium we can achieve versus other markets, looks more attractive than it did a year ago with going in cap rates in some cases having moved 100 basis points in our favor.
We are interested in adding to our 2017 pipeline and believe there will be attractive opportunities in the built-to-suit area going forward. That said, we will continue to be very selective and believe that patience and discipline are likely to be rewarded.
On our last call we spent some time discussing our 10 million common share repurchase program. Given where our share price was at the time, we felt that buying back shares offered a compelling value compared to other investment choices. With the upward movement in our stock price, we have not been active since early March in repurchasing shares. We may execute on share repurchases to the extent market volatility creates a more significant discount between our share price and net asset value per share or our projected forward cash flow. For the quarter, we were able to repurchase approximately 1.2 million shares at an average price of $7.56 per share, and since we've authorized the program in July of 2015, we have repurchased a total of 3.4 million shares at an average price of $8.04 per share.
Our disposition plan is fully underway. During the quarter we sold three wholly owned properties for gross proceeds of approximately $58.2 million at a weighted average capitalization rate of 6.5%. This included a car dealership in suburban Houston for $17.6 million and two suburban office assets in Florida and Pennsylvania for approximately $40.6 million. Consistent with our capital recycling objectives, these sales allowed us to further reduce our short-term leased office multi-tenant and specialty retail exposure. The Palm Beach Garden sale in particular represented a favorable outcome as we were able to fully stabilize the property prior to sale and sell it for approximately $30 million. Also during the quarter we disposed of our interest in non-consolidated office investment located in Russellville, Arkansas, receiving $6.7 million in connection with the sale, as well as a vacant land parcel for $400,000. Net gains generated from the sales totaled $22.3 million. As I mentioned previously, we just sold our West 45th Street land investment for gross proceeds of $37.5 million at a 4.1% cap rate, which compares favorably to our $30.4 million purchase price. Additionally, we sold a 100,000 square foot office building tenanted by Apria Healthcare in Lake Forest, California for $19 million at a 7.9% cap rate. Year-to-date disposition gross proceeds total $121.8 million which included $115.1 million of wholly owned assets sold at an average cap rate of 5.9%.
Our expectation is still to be a net seller in 2016, selling an aggregate total of approximately $600 million to $700 million of assets at an average cap rate of 5.75% to 6.5%. We believe we are making good progress with our sales program despite some changes in the credit markets, which we prepared for when creating our disposition plan. Net sale proceeds are expected to range between $300 million and $400 million excluding transaction costs and will be used to fund our investment commitments, retire debt, acquire properties or repurchase stock.
Moving on to leasing, we were very busy this quarter executing three new leases and six lease extensions of approximately 1.7 million square feet to end the quarter 96.7% leased. Leasing spreads were positive for the quarter, up 6.5% on a cash basis and 5.7% on a GAAP basis as a result of strong rents achieved on the majority of our lease renewals. Lease extensions comprised nearly all of this leasing volume with several significant leases signed that were scheduled to expire in 2016 and 2017. This included a five year lease extension with Kraft Heinz Foods Company for approximately 345,000 square feet in Winchester, Virginia, a 10 year lease extension with Siemens Corporation in Milford, Ohio for approximately 221,000 square feet and a 10 year lease extension with Sears and Memphis, Tennessee for 780,000 square feet. Given healthy leasing activity in the first quarter, we have been able to address the majority of our forecasted leasing activity in our initial guidance and we believe that leasing this year will exceed our prior expectations. As discussed on previous calls, we have approximately 745,000 square feet of space expiring in July of this year at our Temperance, Michigan industrial property, which is currently tenanted by Micelin North America. This property is being actively marketed for lease and has generated interest from prospects looking for both partial and full building use.
As of March, 31, 2016, 2016 expirations totaled 1.7 million square feet, only about 2.6% of our GAAP revenue with vacant space totaling 1.5 million square feet. We are hopeful that by the end of 2016, we can address roughly 38% of expiring or vacant square footage through dispositions and leasing. We have active lease negotiations underway on 2 million square feet and are already in the process of negotiating early renewals for half a dozen leases expiring in 2017. As part of our investment strategy, we continue to manage down our shorter-term leases and expand our weighted average lease term, which is approximately 12.7 years on a cash basis and 9.2 years after adjusting our New York City ground parcels lease term to their first purchase option. Our overall lease maturity schedule remains well staggered, providing us cash flow stability and approximately 80% of our revenue is from leases with built in escalations, which is a positive for long-term cash flow growth.
Balance sheet flexibility remains a top priority, so that we may access whichever source of capital is most effective when we needed. As of March 31, 2016, our 2016 mortgage maturities totaled approximately $105 million and have a weighted average interest rate of 5.8%. We have a large unencumbered asset base, which represents 67% of net operating income and we continually look for ways to achieve cost savings through refinancing and extending out our debt maturities to better match our lease expirations. We expect to lock-in some long-term secured financing in 2016 with the goal of paying down our revolving credit facility, which we paid down by $30 million in the first quarter to $147 million.
Before turning the call over to Pat, I'd like to summarize where we are at this point in the year and where we expect to be at year-end. To-date, we have sold approximately $122 million of assets, retired approximately $52 million of secured debt and paid down $33 million of corporate level debt. We still expect our remaining New York City land investments to be sold by the end of June, subject to a $213 million mortgage assumption.
Sources of capital from sales and new long-term secured financing through year-end are expected to be approximately $720 million to $820 million, which we anticipate will be used to retire $325 million of mortgage debt, fund the remaining $215 million of 2016 investment commitments and pay transaction costs with the balance available to pay down our credit lines, repurchase stock or invest in build-to-suit projects and other long-term leased investment opportunities. Portfolio occupancy is expected to stay healthy throughout 2016. If successfully executed, our current plan is expected to reduce our leverage to a range of 6 times to 6.5 times net debt to EBITDA, generate meaningful Company FFO and Company FFO per share in relation to our dividend and share price and further upgrade the quality of our portfolio. Now I'll turn the call over to Pat, who will review our financial results in more detail.
Patrick Carroll:
Thanks, Will. Hello, everyone. Before I get started, just a reminder that a new FASB rule went into effect in 2015 so property sales are no longer reclassified to discontinued operations on the income statement. So income statement fluctuations between periods generally relate to that.
Gross revenues for the quarter ended March 31, 2016 totaled $111.6 million comprised primarily of lease rents and tenant reimbursements, which represented a 3% increase compared to gross revenues of $108.4 million in the first quarter of 2015. The increase relates primarily to revenue generated from our recent property acquisitions and new leases signed, offset by 2015 and 2016 property sales and lease expirations.
For the quarter ended March 31, 2016, we generated Company FFO of $72.1 million or $0.30 per diluted common share compared to $64.5 million or $0.26 per diluted common share for the quarter ended March 31, 2015. Company FFO 2016 guidance was tightened to $1.03 to $1.08 per diluted share from $1.00 to $1.10 per diluted share given a strong first quarter with better visibility on the remainder of the year. This guidance assumes that the three remaining New York City land investments are sold as of June 30, 2016 at a sub 4.75% cap rate and has been modified to reflect that we may not completed the 10 million common share repurchase authorization during 2016. Keep in mind this guidance forward-looking, excludes the impact of certain items and is based on current expectations.
For the quarter ended March 31, 2016, GAAP rents were in excess of cash rents by approximately $13 million, which relates primarily to our New York City land investments. On page 17 of the supplement, we have included our estimates of both cash and GAAP rents for the remainder of 2016 and 2017 for leases in place at March 31, 2016. This disclosure does not assume any kind of tenant re-leasing our vacant space, tenant lease extensions on properties with scheduled lease expirations, property sales or property acquisitions.
For the quarter ended March 31, 2016, same-store net operating income was $75.7 million, a decrease of approximately 6.2% compared to the first quarter of 2015. We believe this decrease is misleading as it relates almost entirely to two leases on properties in which rent was paid semi-annually during the first and third quarters resulting in uneven amounts in 2015. As I've talked about on previous calls, these leases were the reason we had a large shifts historically in GAAP and cash rents by quarter. For 2016, one of these properties has a new tenant, who is paying rent monthly and the second property is currently vacant. If we adjust the 2015 semi-annual rent payments to reflect them as paid as monthly, same store NOI would have increased 0.4%. We believe this is a more appropriate way to view same-store NOI and therefore want to show both presentations on page 18 of the supplemental.
Property operating costs and deal cost expenses decreased $4.5 million in the first quarter of 2016 compared to the first quarter of 2015, primarily due to the sale of some multi-tenanted properties and a reduction in deal costs.
G&A expenses were approximately $7.8 million for the first quarter of 2016. Generally, first quarter G&A tends to run a little higher due to the payment of the annual grants earned by our Board of Trustees and other one-time annual costs. We are still projecting the G&A for 2016 will be comparable to 2015 at approximately $30 million.
Moving on to discuss our balance sheet, we had $123.7 million of cash at quarter-end, including cash classified as restricted. Restricted cash balances relate to money held with agents to complete 1031 exchange transactions and with lenders as escrow deposits on mortgages.
At the end of the first quarter, we had $2.2 billion of consolidated debt outstanding which had a weighted average interest rate of 4.1% of which approximately 93% is at fixed rates including debt currently covered by interest rate swap agreements. In February, 2016, we closed on a 15 year mortgage financing on Gateway Plaza in Richmond, Virginia. The loan bears interest at a fixed rate of 5.2% and it's interest only for 10 years.
The term to maturity matches the lease term of the tenant McGuire Woods. For the quarter ended March 31, 2016, our interest coverage was approximately 3.6 times and net debt-to-EBITDA was approximately 6.5 times. We're targeting a net debt-to-EBITDA of approximately 6 times to 6.5 times at the end of 2016, with a bias toward shrinking our leverage further.
Debt maturities remain well-laddered, as of March 31, 2016 we had approximately $105.4 million of balloon mortgage payments, with an average interest rate of 5.8% coming due this year which are expected to be retired in connection with dispositions, cash from dispositions and financing proceeds. As of March 31, 2016, our unencumbered asset base was approximately $3.2 billion representing 67% of our NOI.
We're still expecting to add $175 million to $200 million of long-term fixed rate debt to the balance sheet and retire shorter term maturities over the course of the year including the 2016 maturing mortgage debt and the amounts outstanding under our revolving credit facility.
During the quarter ended March 31, 2016, we paid approximately $1.2 million in lease costs and approximately $720,000 in tenant improvements. Our TI and leasing costs budget for the remainder of 2016 is approximately $25 million.
In closing, we had investment commitments of about $192 million as of March 31, 2016. More details can be found on page 14 of the supplement on the funding projections for our build-to-suit projects along with our historical NOI recognized on build-to-suit projects that have come on line. Now I'd like to turn the call back over to Will.
Will Eglin:
Thanks, Pat. Operator, I have no further comments at this time. So we are ready for you to conduct the question and answer portion of the call.
Operator
[Operator Instructions]. Sheila McGrath, Evercore ISI.
Sheila McGrath, Evercore ISI:
Good morning to all. I was wondering if you could provide some clarity on FFO or FAD impacts from the ground leases and also on the impact on cash flow and leverage?
Will Eglin:
The ground lease investments generate about $0.04 a share per quarter in FFO, but $0.06 of FAD. So if you think about the sale, if you annualized that FAD number, it's about $5.9 million. So, if we take the proceeds and reinvest in real estate on an unlevered basis, we'll have more FADs than we do now and all the leverage from the land investments will be go on. So we will have shed $242 million without any negative impact on our FAD. So, in our mind, even though we would end up in the back half of the year with lower FFO than we do now, our FAD will continue to be strong and we will have shrunk our leverage considerably.
Sheila McGrath:
And can you help us understand the timings, so the first ground lease sales just recently closed and what are your expectations for the balance of closings?
Will Eglin:
We're still forecasting our mid-year sales of the other three parcels, they're not under contract yet, but we're making good progress.
Sheila McGrath:
Okay. Two other quick questions, on the sale of the first parcel, it looks like you made money on that, could you just discuss maybe the IRR there or how we should think about how that ended up?
Will Eglin:
Recall that it was a pretty highly leveraged investment with not of a large equity investment on our part, but our leveraged IRR will be in the mid-30s on it. So, it worked out quite well if they going in cap rate that we bought that asset forwards 4.93% and we had a rent bumps, so the fact that we can sell it in a 4.1 cap rate, it's a good outcome for us.
Sheila McGrath:
Okay. And last question just on the dividend versus buyback, how are you thinking, will you refrain from a bump in the dividend or how are you think about that?
Will Eglin:
No, I don't think that they have to be mutually exclusive, in fact having executed partly on the buyback makes it more likely that we'll be able to return to dividend growth sooner. In June, it will be two years since we increased the dividend, we did grow the dividend pretty rapidly before that period of time. So, arguably shareholders have had some front loaded yield during this two year period, but everything we've done in the last two years with respect to sales, investing and what we've done with the balance sheet has been designed to put the company back into a position where it increased its dividend annually with a high degree of certainty. So we are inching closer to that date. And we look forward to being able to return to that policy.
Operator:
Todd Stender, Wells Fargo.
Todd Stender - Wells Fargo – Analyst:
Thanks guys. Just on the remaining land leases teed up for sale. Just as a reminder, are there mortgages on those?
Will Eglin:
Yes, Todd they were about $211 million worth of mortgages loan.
Todd Stender:
And in general, is that more difficult for a buyer to assume a mortgage loan, just because it's a ground lease versus a traditional building sale?
Will Eglin:
No, I don't think the type of asset it really impacts it at all.
Todd Stender:
And then just as a reminder, how do you guys look at buying back shares, is it a return that you're looking at or is it simple as saying your shares trade below NAV and it's just a prudent use of capital.
Will Eglin:
It's a combination of the two, in our minds, there is a cost to shrinking the capitalization of the company. So the discount to NAV should be very wide and we believe our share buyback program has to be used during times when the market is really trading our shares poorly and there is an opportunity for us to retire stock in size at really cheap prices. So we still have an authorization out there and we're very optimistic about the direction of the share price, but to the extent we find ourselves in a market that's very weak again, we won't hesitate to buy in stock in size.
Operator:
Craig Mailman, KeyBanc Capital Markets.
Craig Mailman - KeyBanc Capital Markets – Analyst:
Just a follow-up on the buyback question. I know you guys were able to buy back a million shares at a pretty wide discount to NAV, what was the constrain on buying back even more given that discount relative to, where you put the capital to use in the industrial asset in Detroit at a 7.4%.
Will Eglin:
Well, we were blacked out for earnings for a good portion of first quarter and following filing of the 10-K, we were able to buy some stock, but the stock has been on an upward tear since then. And we haven't been chasing it. So there's been many places for us to make an arbitration in our business. One is selling assets and buying in stock. But we can also make an arb selling assets into the auction market this year and selectively committing to some build-to-suit opportunities as well.
Craig Mailman:
And then just one quick one on Detroit, is that a CPI base lease?
Will Eglin:
No, that's a flat rent and it was a build-to-suit that we committed to probably a year in advance of when we closed it Craig, so it's not like the acquisition just showed up in December last year when our stock is very cheap, it had actually been committed to at a previous time.
Craig Mailman:
And then could you just talk to your comment that the build-to-suit markets maybe moved to 100 basis points in your favor. Can you just expand on that, are there any specific markets where it's happening. Is it in industrial only or other kind of pockets?
Will Eglin:
No, in the last six months we've committed to two new transactions in an each case we've thought the going in cap rate was 90 basis points to 100 basis points higher than it would have been a year ago. So it's just been a handful of cases so we'll see where the market goes, but that part of our business has become better for us compared to two year ago.
Craig Mailman:
Was there anything special about those cases, given industrial cap rates more broadly have in some markets compressed further or kind of stayed flat, anything going on there?
Will Eglin:
No, in one was an office building and one was an industrial building. I think it's the forward commitment market, any time there is a concern about the nature of credit markets, the direction of interest rates, etcetera, pricing moves in our favor, just because it's risky for builders not to try to lock in the profits early. So we've seen a little bit of that, that's good for our business. And hopefully, we'll see more opportunity, not less.
Craig Mailman:
And then just lastly, could you talk about the profile of the buyer on the land sale.
Will Eglin:
Not specifically. But that type of investment tends to be popular with pension funds and family office type investors.
Operator:
John Guinee, Stifel.
John Guinee - Stifel – Analyst:
I'm not sure if I'm the right person, but I'll try, first though why the 8:30 AM pajama party?
Patrick Carroll:
We just wanted to get the call done before the market opens.
John Guinee:
Is this going to be the new format?
Will Eglin:
Yes.
John Guinee:
Alright, now I have to get up earlier. And what was the lease term fee of about $2.9 million, which asset was that?
Patrick Carroll:
It's on a combination of assets, John. When a tenant exercises the lease termination, many times they have exercised, but they still have lease term left, meaning they have to pay the money maybe a year or 18 months in advance. So on the GAAP, we have to spread it out over the life of the lease or the remaining lease term. So the handful of them and it's the ones that we talked about generally in the fourth quarter of last year that we disclosed for the lease termination payment. So it's like five or six tenants.
John Guinee:
We apologize for not remembering those tenants from last year's call. Okay. And can you run through just looking at to pages 28 and maybe 32 run through your major tenants and what you think's going to happen in terms of renewal, extension, move-outs, etcetera of the office is on page 28 and the industrial is on page 31.
Will Eglin:
What we've said for 2016, is that there will not be leasing activity. There are several properties that we think will be in the disposition program that's in office. We mentioned Michelin in industrial as vacancy in July and the other industrial property at the end of this year, we think we want to extend.
John Guinee:
About 2017, -- any clarity there?
Will Eglin:
It's a little premature. Typically, we would go lease-by-lease later in the year, but half a dozen of those leases are in negotiation for renewal presently.
John Guinee:
I have one more question, cannot remember what it is, but thank you.
Will Eglin:
You remember and just come back into the queue, John.
Operator:
Gene Lusavin, JPMorgan.
Gene Lusavin - JPMorgan – Analyst:
Thank you. Can you just give a rundown of cap rates and opportunities in the market, we're seeing some compression in the net least based on your competitors?
Will Eglin:
In the forward market, which is our focus, we think we've seen a little bit of widening compared to a year-ago. I will say that one of the sales that we've been executing, we've done very well so far, candidly, and if we can get the three parcels of land sold in Manhattan that will mean two-thirds of our program will be basically done in the first half of the year and we will have executed it at prices that are better than better than we thought when we gave initial guidance. We have seen interest rates come back down and spreads start to tighten in the debt area. So that typically given that net leased properties are long-term lease assets that are very much liked by bonds, that tends to mean that cap rates can compress some.
Gene Lusavin:
Thank you. And focusing on the expense line item as you sell some presumably vacant buildings, what can we expect the run rate coming towards the end of the year?
Will Eglin:
The expenses on the industrial facilities vacant, they are honestly, it's not a lot, it's the multi-tenanted. But I think from a standpoint of tenant reimbursements less the operating expenses. So we look at it as a net number, for 2016, the number could be $18 million to $19 million on a net basis.
Gene Lusavin:
Okay. And are there any credit issues in the portfolio that you can I guess bring to our attention?
Will Eglin:
All our rents have been collected. We do have one tenant in one property that's about a $165,000 a month in rent through during the quarter we did restructure their payment from payments in advance to payment in arrears. They have paid through to-date. But that's the only one I would say in the portfolio from a credit standpoint that we are looking at.
Gene Lusavin:
And final question, are there any step-ups in the leases that we should anticipate this year may be going into effect or step down to that matter?
Will Eglin:
Most of our, about 80% of our leases now have some level of step-ups. We generally range from 1.5% to 2%. So I think from a broad standpoint, you can look at it that way. I don't think there are any significant downs this year.
Gene Lusavin:
But to just contractual rent bumps, okay?
Patrick Carroll:
Yeah, or flat.
Operator:
Jamie Feldman, Bank of America.
Jamie Feldman - Bank of America – Analyst:
I think you have said you feel pretty good about the investment pipeline for the build-to-suits. Can you talk more about the size of that pipeline and then as you're thinking about projects, just how do you think about the geographic diversification for the portfolio going forward. Another one you signed this quarter in Alabama. Just how should we think about that.
Will Eglin:
Well, right now we have about $100 million for delivery to finish funding next year, which is not sizable that's in addition to the $250 million or so that we're committed to fund in the last nine months, this year. So, I mean the pipeline is not growing hugely, it is growing selectively where we think we can find high-quality assets. In the case of the Alabama facility, it's rare to find a 25-year lease with such a sizable credit behind the lease and with annual escalations. So there is huge value in the 25-year lease in that case, then we will continue to build out our build-to-suit business that will probably become more diversified over time from a location standpoint, but that will be driven by where corporations want to build and how long the lease, they're willing to commit to.
Jamie Feldman:
So how the current pipeline, investable pipeline -- you're ramping it up so much, but when you look at the landscape many have taken this business -- working with, what sort of annual start level you think you could maintain?
Will Eglin:
Well, that will be dependent on our own liquidity and balance sheet capacity and cost of capital, but we did $500 million worth of business last year and it's not a stretch, it's a very large market. So and there is lots of opportunity for us.
Jamie Feldman:
Okay. And then just going back to Will's comments and Pat's comment on the guidance. So, it sounds like you did good first quarter, maybe some of the sales are weighing on the back half. Can you just kind of walk through the moving pieces that get you get pretty much keep your mid-point in line with where you were?
Will Eglin:
Yes, I mean the real question, Jamie will be what do we do with cash in the back half of the year. Because the disposition program combined with some, a little bit of long-term financing likely results in cash increasing in the second half of the year end and we've assumed that cash is not invested in our guidance. So if we can find good opportunities to put that cash to work, whether that's in further buyback or other investments, that will be the swing factor with respect to how the second half of the year turns out.
Jamie Feldman:
Okay. So what is your guidance now -- like a year-end cash balance or excess cash?
Will Eglin:
Over $200 million.
Jamie Feldman:
Okay. Great, thank you.
Operator:
(Operator Instructions). John Guinee, Stifel.
John Guinee:
Same guy, John Guinee here. How does this 30, 27, 25, 24 sound good for a quarterly first quarter 30, second quarter 27, third quarter 25, fourth quarter 24.
Will Eglin:
We don't give quarterly guidance John.
John Guinee:
Well, you could, if you wanted to.
Will Eglin:
We could if we wanted to, but we think you’re very capable of modeling the company based our disclosure and our comments.
John Guinee:
Well, it looks like you have some steady deliveries of your build-to-suits in 2Q, 4Q and 1Q 2017. So it looks like there is just momentary low before Lake Jackson hits. Is that an early or late 4Q stabilization.
Patrick Carroll:
November.
John Guinee:
November, okay. And then essentially the story here on the arb is you're going to sell at a 4.75% cash cap rate, is that roughly a 14% GAAP cap rate to buy that about in eight.
Will Eglin:
Yes, that's about right.
John Guinee:
Okay, great.
Will Eglin:
John. Keep your eye on FAD, because our FFO has been obviously inflated by the GAAP revenue on the ground lease investments. So, you're right to point out that FFO will be lower in the back half of this year compared to now. But the underlying cash flows of the company should be solid.
Operator:
Thank you. Ladies and gentlemen, we have no further questions in queue at this time, I would like to turn the floor back over to management for closing comments.
Will Eglin:
Thanks again, everyone. And if you have any questions please don't hesitate to reach out to us.
Operator:
Thank you, ladies and gentlemen, this does conclude the teleconference for today. You may now disconnect your lines at this time. Thank you for your participation and have a wonderful day.
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