EX-99 3 a4439198ex99.txt EXHIBIT 99.1 PRESS RELEASE RE: LEXINGTON CORPORATE PROPERTIES TRUST 355 LEXINGTON AVENUE NEW YORK, NY 10017 FOR FURTHER INFORMATION: AT THE COMPANY: AT FRB|WEBERSHANDWICK: T.Wilson Eglin Claire Koeneman Diane Hettwer Chief Executive Officer General Inquiries General Inquiries (212) 692-7260 (312) 640-6745 (312) 640-6760 FOR IMMEDIATE RELEASE WEDNESDAY, JULY 23, 2003 LEXINGTON CORPORATE PROPERTIES TRUST ANNOUNCES Second Quarter Operating Results New York, NY - July 23, 2003 - Lexington Corporate Properties Trust (NYSE:LXP), a real estate investment trust, today announced results for its second quarter ended June 30, 2003. Quarterly Results Funds from operations were $9.49 million, or $0.25 per diluted share/unit for the second quarter of 2003, after $7.69 million ($0.20 per diluted share/unit) in debt satisfaction charges, compared to $15.54 million, or $0.48 per diluted share/unit, for the second quarter of 2003. Before the effect of the debt satisfaction charges, FFO were $17.18 million, or $0.45 per diluted share/unit. As a result of the common share and preferred share offerings in the second quarter of 2003, Lexington operated with greater cash balances and lower leverage than in the prior year and this reduced FFO per share. Revenues for the quarter totaled $29.14 million, compared with revenues of $24.19 million for the same period last year. Net income allocable to common shareholders was $2.27 million in the second quarter of 2003, including the impact of $7.69 million in debt satisfaction charges and $0.68 million in gains on sales, compared to $7.88 million for the same period last year which included $0.28 million in gains on sale. Six Month Results For the six months ended June 30, 2003, FFO were $26.50 million, or $0.72 per diluted share/unit, after $7.69 million ($0.21 per diluted share/unit) in debt satisfaction charges, compared to $30.46 million, or $0.95 per diluted share/unit, for the same period last year. Revenues for the six months ended June 30, 2003 totaled $57.93 million, compared to revenues of $48.45 million for the same period last year. Net income allocable to common shareholders for the six months ended June 30, 2003 was $11.03 million, including the impact of the debt satisfaction charges described above and $1.14 million in gains on sales, compared to $15.15 million, which includes $1.02 million in gains on sales, for the same period last year. Dividend Declaration The Company declared a dividend of $0.335 per common share for the second quarter of 2003, payable on August 14, 2003 to common shareholders of record on July 31, 2003. The Company also declared a pro rata dividend on its Cumulative Redeemable Preferred Shares of $0.067083 per preferred share, payable on August 15, 2003 to preferred shareholders of record on July 31, 2003. Conference Call Management will discuss the financial results on a conference call today at 2pm Eastern Time. The toll-free dial in number is 800-366-3908. The replay of the call will be available through July 30, 2003. The toll-free telephone number for the replay is 800-405-2236 or 303-590-3000, passcode 545099. The conference call can also be accessed on the internet at www.lxp.com and www.Streetevents.com. A supplemental reporting package can be accessed in the Company Profile section at www.lxp.com. Comments From Management Commenting on Lexington's results, T. Wilson Eglin, Chief Executive Officer and President, said, " During the second quarter, Lexington significantly increased its balance sheet strength and capacity for future growth by raising approximately $150 million in equity capital and retiring $78.1 million of debt with unfavorable terms. As a result, we are well positioned to take advantage of favorable acquisition opportunities that may arise. Our acquisition pipeline is strong and we expect to be an active investor over the balance of the year. Based on our anticipated acquisitions, we expect FFO to be $1.85 - $1.88 per share this year before the impact of the debt satisfaction charges and $1.90 - $1.95 per share in 2004." About Lexington Lexington Corporate Properties Trust is a real estate investment trust that owns and manages office, industrial and retail properties net leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington common shares, with annualized dividend of $1.34 per share, closed Tuesday, July 22, 2003 at $18.23 per share. Lexington preferred shares, with annualized dividend of $2.0125 per share, closed Tuesday, July 22, 2003 at $25.85 per share. Additional information about Lexington is available at www.lxp.com. Financial tables follow
LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 ---- ---- ---- ---- Revenues: Rental $ 27,266 $ 22,646 $ 54,022 $ 45,087 Equity in earnings of non-consolidated 1,312 937 2,575 2,363 entities Advisory fees 269 - 680 - Interest and other 293 608 650 1,000 ---------- ---------- ---------- ---------- 29,140 24,191 57,927 48,450 ---------- ---------- ---------- ---------- Expenses: Interest 9,306 8,050 18,652 16,270 Debt satisfaction charges 7,685 - 7,685 - Depreciation 6,840 5,124 13,153 10,185 General and administrative 2,448 1,191 4,751 2,763 Property operating 744 452 1,655 1,248 Amortization 513 459 1,044 944 ---------- ---------- ---------- ---------- 27,536 15,276 46,940 31,410 ---------- ---------- ---------- ---------- Income from continuing operations before minority 1,604 8,915 10,987 17,040 interests Minority interests 98 (1,493) (1,186) (2,748) ---------- ----------- ---------- ---------- Income from continuing operations 1,702 7,422 9,801 14,292 ---------- ---------- ---------- ---------- Discontinued operations: Income from discontinued operations 97 180 302 532 Gains on sales of properties 684 277 1,143 1,016 ---------- ---------- ---------- ---------- Total discontinued operations 781 457 1,445 1,548 ---------- ---------- ---------- ---------- Net income 2,483 7,879 11,246 15,840 Dividends attributable to preferred shares - Series A - - - (693) Dividends attributable to preferred shares - Series B (212) - (212) - ----------- ---------- ----------- ---------- Net income allocable to common shareholders $ 2,271 $ 7,879 $ 11,034 $ 15,147 Depreciation 6,860 5,192 13,221 10,375 Minority interests-OP Units (138) 1,454 1,101 2,686 Amortization of leasing commissions 200 174 400 348 Joint venture adjustment-depreciation 981 1,114 1,889 2,226 Gains on sales of properties (684) (277) (1,143) (1,016) Series A preferred dividends - - - 693 ---------- ---------- ---------- ---------- Funds from operations $ 9,490 $ 15,536 $ 26,502 $ 30,459 ========== ========== ========== ========== Rent below GAAP revenue1 $ 1,013 $ 581 $ 2,150 $ 1,226 ========== ========== ========== ========== Per share/unit Basic net income $ 0.07 $ 0.30 $ 0.35 $ 0.59 Diluted net income $ 0.06 $ 0.29 $ 0.33 $ 0.58 Funds from operations2-basic $ 0.25 $ 0.48 $ 0.72 $ 0.95 Funds from operations2-diluted $ 0.25 $ 0.48 $ 0.72 $ 0.95
LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands) 6/30/03 12/31/02 Real estate, at cost $ 972,014 $ 913,370 Accumulated depreciation (148,659) (134,220) Investment in non-consolidated entities 56,645 54,261 Cash and cash equivalents 71,564 12,097 Deferred assets 7,305 8,168 Rent receivable - current - 3,535 Rent receivable - deferred 22,518 20,115 Other assets 19,711 25,145 ------------------ ------------- $ 1,001,098 $ 902,471 ================ ============= Mortgages and notes payable $ 444,897 $ 491,517 Other liabilities 15,481 17,323 Prepaid rent 3,356 - Minority interests 54,240 56,846 Shareholders' equity 483,124 336,785 ------------------ ------------- $ 1,001,098 $ 902,471 ================ ============= Common shares 35,086,134 30,030,048 Preferred shares-Series B 3,160,000 - Operating partnership units 5,203,970 5,257,365 ------------------ ------------- 43,450,104 35,287,413 ================ ==========
1 Equal to the difference between rents collected and straight-line rental income recognized under generally accepted accounting principles. 2 The Company believes that Funds From Operations ("FFO") enhances an investor's understanding of the Company's financial condition, results of operations and cash flows. The Company believes that FFO is an appropriate, but limited, measure of the performance of an equity REIT, and that it can be one measure of a REIT's ability to make cash distributions. FFO is defined in the October 1999 "White Paper" issued by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as "net income (or loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures." FFO should not be considered an alternative to net income as an indicator of operating performance or to cash flows from operating activities as determined in accordance with GAAP, or as a measure of liquidity to other consolidated income or cash flow statement data as determined in accordance with GAAP.
LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES EARNINGS PER SHARE AND FUNDS FROM OPERTATIONS PER SHARE (dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 ---- ---- ---- ---- Earning Per Share Basic Income from continuing operations $ 1,702 $ 7,422 $ 9,801 $ 14,292 Less preferred dividends (212) - (212) (693) ---------- ----------- ---------- ---------- Income allocable to common shareholders from continuing operations - basic 1,490 7,422 9,589 13,599 Total income from discontinued operations - basic 781 457 1,445 1,548 ----------- ----------- ----------- ---------- Net income allocable to common shareholders $ 2,271 $ 7,879 $ 11,034 $ 15,147 ========== ============ ========== =========== Weighted average number of common shares outstanding 32,920,546 26,584,426 31,460,135 25,552,478 ========== ========== ========== ========== Per share data: Income from continuing operations $ 0.05 $ 0.28 $ 0.30 $ 0.53 Income from discontinued operations 0.02 0.02 0.05 0.06 ----------- ----------- ----------- ---------- Net income $ 0.07 $ 0.30 $ 0.35 $ 0.59 ========== =========== ========== ========== Diluted Income allocable to common shareholders from continuing operations-basic $ 1,490 $ 7,422 $ 9,589 $ 13,599 Adjustments: Incremental income (loss) attributed to assumed conversion of dilutive securities (138) - 1,098 2,665 ----------- ----------- ----------- ---------- Income allocable to common shareholders from continuing operations-diluted 1,352 7,422 10,687 16,264 Total income from discontinued operations - diluted 787 457 1,560 1,686 ----------- ----------- ----------- ---------- Net income allocable to common shares - diluted $ 2,139 $ 7,879 $ 12,247 $ 17,950 ========== =========== ========== ========== Weighted average number of shares used in calculation of basic earnings per share 32,920,546 26,584,426 31,460,135 25,552,478 Add incremental shares representing: Shares issuable upon exercises of employee share options 199,986 304,165 181,690 276,020 Shares issuable upon conversion of dilutive securities 5,212,514 219,780 5,231,012 5,292,412 --------- ----------- --------- --------- Weighted average number of shares used in calculation of diluted earnings per common share 38,333,046 27,108,371 36,872,837 31,120,910 ========== ========== ========== ========== Per share data: Income from continuing operations - diluted $ 0.04 $ 0.27 $ 0.29 $ 0.52 Income from discontinued operations - diluted 0.02 0.02 0.04 0.06 ---------- ----------- ----------- ---------- Net income - diluted $ 0.06 $ 0.29 $ 0.33 $ 0.58 ========== =========== ========== ===========
LEXINGTON CORPORATE PROPERTIES TRUST AND CONSOLIDATED SUBSIDIARIES EARNINGS PER SHARE AND FUNDS FROM OPERTATIONS PER SHARE (dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 ---- ---- ---- ---- Funds From Operations Basic and Diluted Net income allocable to common shareholders-basic $ 2,271 $ 7,879 $ 11,034 $ 15,147 Adjustments: Depreciation 6,860 5,192 13,221 10,375 Minority interests-OP Units (138) 1,454 1,101 2,686 Amortization of leasing commissions 200 174 400 348 Joint venture adjustment-depreciation 981 1,114 1,889 2,226 Gains on sale of properties (684) (277) (1,143) (1,016) Preferred dividends-Series A - - - 693 ------------ ------------ -------------- -------------- Funds from operations $ 9,490 $ 15,536 $ 26,502 $ 30,459 ============ ============ ============== ============== Basic Weighted average shares outstanding-basic EPS 32,920,546 26,584,426 31,460,135 25,552,478 Operating partnership units 5,212,514 5,277,964 5,231,012 5,292,412 Preferred shares - Series A - 219,780 - 1,104,972 ------------ ------------ ------------ -------------- Weighted average shares outstanding-basic FFO 38,133,060 32,082,170 36,691,147 31,949,862 ============ ============ ========== ============ FFO per share $ 0.25 $ 0.48 $ 0.72 $ 0.95 ============ ============ ========== ============ Diluted ------- Weighted average shares outstanding-diluted EPS 38,333,046 27,108,371 36,872,837 31,120,910 Operating partnership units - 5,277,964 - - Preferred shares - Series A - - - 1,104,972 ------------ ------------ ------------ ------------ Weighted average shares outstanding-diluted FFO 38,333,046 32,386,335 36,872,837 32,225,882 ========== ========= ========== ========== FFO per share $ 0.25 $ 0.48 $ 0.72 $ 0.95 ========== ========== =========== ========== ###