x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 13-3717318 |
(State or other jurisdiction of incorporation of organization) | (I.R.S. Employer Identification No.) |
One Penn Plaza, Suite 4015, New York, NY 10119-4015 (Address of principal executive offices) (zip code) | |
(212) 692-7200 (Registrant's telephone number, including area code) |
Title of each class | Name of each exchange on which registered |
Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock | New York Stock Exchange |
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share | New York Stock Exchange |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) | Emerging growth company ¨ |
Description | Page | ||
PART I | |||
PART II | |||
PART III | |||
PART IV | |||
– | purchased eight industrial assets for an aggregate cost of $315.6 million. |
– | disposed of 21 office assets to NNN JV for an aggregate price of $725.8 million and acquired a 20% equity interest in NNN JV for an aggregate cost of $53.7 million. |
– | disposed of our interests in 25 additional consolidated properties to unaffiliated third parties for an aggregate gross disposition price of $335.3 million. |
– | received $4.3 million in connection with the sale of a non-consolidated investment. |
– | repaid $160.0 million, net under the unsecured revolving credit facility. |
– | repaid the $300.0 million term loan that was scheduled to mature in 2020. |
– | retired an aggregate of $118.0 million in property non-recourse mortgage debt, including debt encumbering assets sold to NNN JV. |
– | obtained $25.9 million of non-recourse mortgage financing with a fixed interest rate of 5.4%, which matures in November 2032 and is secured by an industrial property in Warren, MI. |
– | repurchased and retired approximately 5.9 million common shares at an average price of $8.05 per common share. |
– | amended our unsecured credit facility to remove LCIF as a borrower, which resulted in their automatic release as a guarantor of our outstanding debt securities, |
– | sold a consolidated industrial property for $79.3 million. |
– | acquired two industrial assets for an aggregate purchase price of approximately $58.0 million. |
– | repurchased and retired 441,581 common shares at an average price of $8.13 per common share. |
– | replaced our revolving credit facility and 2021 term loan with a new revolving credit facility and the continuation of the 2021 term loan, which extended the maturity of the revolving credit facility to February 2023 and reduced the applicable margin rates on the revolving credit facility and 2021 term loan. |
– | entered into an agreement to purchase upon completion the expansion of our property in Richland, Washington for $67.0 million. |
– | declared a quarterly common share dividend of $0.1025 per common share. |
• | Unsuccessful development opportunities could cause us to incur direct expenses; |
• | Construction costs of a project may exceed original estimates, possibly making the project less profitable than originally estimated or unprofitable; |
• | Time required to complete the construction of a project or to lease up the completed project may be greater than originally anticipated, thereby adversely affecting our cash flow and liquidity; |
• | Occupancy rates and rents of a completed project may not be sufficient to make the project profitable; and |
• | Favorable financing sources to fund the joint venture's development activities may not be available. |
• | make it more difficult for us to satisfy our indebtedness and debt service obligations and adversely affect our ability to pay distributions; |
• | increase our vulnerability to adverse economic and industry conditions; |
• | require us to dedicate a substantial portion of our cash flow from operations to the payment of interest on and principal of our indebtedness, thereby reducing the availability of cash to fund working capital, capital expenditures and other general corporate purposes; |
• | limit our ability to borrow money or sell stock to fund our development projects, working capital, capital expenditures, general corporate purposes or acquisitions; |
• | restrict us from making strategic acquisitions or exploiting business opportunities; |
• | place us at a disadvantage compared to competitors that have less debt; and |
• | limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate. |
Year | Property-Specific Balloon Payments | Corporate Recourse Balloon Payments | ||||||
2019 | $ | 76.1 | $ | — | ||||
2020 | $ | 32.0 | $ | — | ||||
2021 | $ | 17.0 | $ | 300.0 | ||||
2022 | $ | — | $ | — | ||||
2023 | $ | — | $ | 250.0 |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
Single-tenant properties: | |||||||||
318 Pappy Dunn Blvd. | Anniston | AL | International Automotive Components Group North America, Inc. | 276,782 | 11/24/2029 | 100 | % | ||
2415 U.S. Hwy 78 East | Moody | AL | Michelin North America, Inc. | 595,346 | 12/31/2019 | 100 | % | ||
4801 North Park Dr. | Opelika | AL | Golden State Foods Corp. (Golden State Enterprises, Inc.) | 165,493 | 5/31/2042 | 100 | % | ||
16811 W. Commerce Dr. | Goodyear | AZ | Blue Buffalo Company, LTD (Blue Buffalo Pet Products, Inc.) | 540,349 | 4/30/2026 | 100 | % | ||
2455 Premier Row | Orlando | FL | Walgreen Co. / Walgreen Eastern Co. | 205,016 | 3/31/2021 | 100 | % | ||
3102 Queen Palm Dr. | Tampa | FL | Time Mailing Services, LLC (Time Inc.) | 229,605 | 6/30/2020 | 100 | % | ||
359 Gateway Dr. | Lavonia | GA | TI Group Automotive Systems, LLC (TI Automotive Ltd.) | 133,221 | 5/31/2020 | 100 | % | ||
490 Westridge Pkwy. | McDonough | GA | Georgia-Pacific Consumer Products LP (Georgia-Pacific LLC) | 1,121,120 | 1/31/2028 | 100 | % | ||
1420 Greenwood Rd. | McDonough | GA | United States Cold Storage, Inc. | 296,972 | 8/31/2028 | 100 | % | ||
3301 Stagecoach Rd. NE | Thomson | GA | Hollander Sleep Products, LLC (Hollander Home Fashions Holdings) | 208,000 | 5/31/2030 | 100 | % | ||
3931 Lakeview Corporate Dr. | Edwardsville | IL | AMAZON.COM.DEDC, LLC (Amazon.com, Inc.) | 769,500 | 9/30/2026 | 100 | % | ||
4015 Lakeview Corporate Dr. | Edwardsville | IL | Spectrum Brands Pet Group, Inc. | 1,017,780 | 5/31/2030 | 100 | % | ||
1001 Innovation Rd. | Rantoul | IL | Bell Sports, Inc. (Vista Outdoor Inc.) | 813,126 | 10/31/2034 | 100 | % | ||
3686 S. Central Ave. | Rockford | IL | Pierce Packaging Co. | 93,000 | 12/31/2021 | 100 | % | ||
749 Southrock Dr. | Rockford | IL | Jacobson Warehouse Company, Inc. (Jacobson Distribution Company and Jacobson Transportation Company, Inc.) | 150,000 | MTM | 100 | % | ||
1020 W. Airport Rd. | Romeoville | IL | ARYZTA LLC (ARYZTA AG) | 188,166 | 10/31/2031 | 100 | % | ||
1621 Veterans Memorial Pkwy E | Lafayette | IN | Caterpillar, Inc. | 309,400 | 9/30/2024 | 100 | % | ||
1285 W. State Road 32 | Lebanon | IN | Continental Tire the Americas, LLC | 741,880 | 1/31/2024 | 100 | % | ||
27200 West 157th St. | New Century | KS | Amazon.com.ksdc, LLC (Amazon.com, Inc.) | 446,500 | 1/31/2027 | 100 | % | ||
10000 Business Blvd. | Dry Ridge | KY | Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited) | 336,350 | 6/30/2025 | 100 | % | ||
730 North Black Branch Rd. | Elizabethtown | KY | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 167,770 | 6/30/2025 | 100 | % | ||
750 North Black Branch Rd. | Elizabethtown | KY | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 539,592 | 6/30/2025 | 100 | % | ||
301 Bill Bryan Blvd. | Hopkinsville | KY | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 424,904 | 6/30/2025 | 100 | % |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
4010 Airpark Dr. | Owensboro | KY | Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited) | 211,598 | 6/30/2025 | 100 | % | ||
1901 Ragu Dr. | Owensboro | KY | Unilever Supply Chain, Inc. (Unilever United States, Inc.) | 443,380 | 12/19/2020 | 100 | % | ||
5001 Greenwood Rd. | Shreveport | LA | Libbey Glass Inc. (Libbey Inc.) | 646,000 | 10/31/2026 | 100 | % | ||
5417 Campus Dr. | Shreveport | LA | The Tire Rack, Inc. | 257,849 | 3/31/2022 | 100 | % | ||
113 Wells St. | North Berwick | ME | United Technologies Corporation | 993,685 | 4/30/2024 | 100 | % | ||
2860 Clark St. | Detroit | MI | Undisclosed(1) | 189,960 | 10/22/2035 | 100 | % | ||
6938 Elm Valley Dr. | Kalamazoo | MI | Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited) | 150,945 | 10/25/2021 | 100 | % | ||
904 Industrial Rd. | Marshall | MI | Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.) | 246,508 | 9/30/2028 | 100 | % | ||
43955 Plymouth Oaks Blvd. | Plymouth | MI | Tower Automotive Operations USA I, LLC / Tower Automotive Products Inc. (Tower Automotive, Inc.) | 311,612 | 10/31/2024 | 100 | % | ||
16950 Pine Dr. | Romulus | MI | Undisclosed(1) | 500,023 | 8/24/2032 | 100 | % | ||
26700 Bunert Rd. | Warren | MI | Lipari Foods Operating Company, LLC | 260,243 | 10/31/2032 | 100 | % | ||
1700 47th Ave North | Minneapolis | MN | Owens Corning Roofing and Asphalt, LLC | 18,620 | 12/31/2025 | 100 | % | ||
549 Wingo Rd. | Byhalia | MS | Asics America Corporation (Asics Corporation) | 855,878 | 3/31/2030 | 100 | % | ||
1550 Hwy 302 | Byhalia | MS | McCormick & Company, Inc. | 615,600 | 9/30/2027 | 100 | % | ||
554 Nissan Pkwy. | Canton | MS | Nissan North America, Inc. | 1,466,000 | 2/28/2027 | 100 | % | ||
11624 S. Distribution Cv. | Olive Branch | MS | Hamilton Beach Brands, Inc. | 1,170,218 | 6/30/2021 | 100 | % | ||
7670 Hacks Cross Rd. | Olive Branch | MS | MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated) | 268,104 | 2/28/2023 | 100 | % | ||
8500 Nail Rd. | Olive Branch | MS | Sephora USA, Inc. | 716,080 | 7/31/2029 | 100 | % | ||
2880 Kenny Biggs Rd. | Lumberton | NC | Quickie Manufacturing Corporation | 423,280 | 11/30/2021 | 100 | % | ||
671 Washburn Switch Rd. | Shelby | NC | Clearwater Paper Corporation | 673,425 | 5/31/2036 | 100 | % | ||
2203 Sherrill Dr. | Statesville | NC | Geodis Logistics, LLC (OHH Acquisition Corporation) | 639,800 | 12/31/2020 | 100 | % | ||
121 Technology Dr. | Durham | NH | Heidelberg Americas, Inc. (Heidelberg Druckmaschinen AG) (2021) / Goss International Americas, Inc. (Goss International Corporation) (2026) | 500,500 | 3/30/2026 | 100 | % |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
5625 North Sloan Ln. | North Las Vegas | NV | Nicholas and Co., Inc. | 180,235 | 9/30/2034 | 100 | % | ||
736 Addison Rd. | Erwin | NY | Corning Property Management Corporation | 408,000 | 11/30/2026 | 100 | % | ||
29-01 Borden Ave. / 29-10 Hunters Point Ave. | Long Island City | NY | FedEx Ground Package System, Inc. (FedEx Corporation) | 140,330 | 3/31/2028 | 100 | % | ||
351 Chamber Dr. | Chillicothe | OH | The Kitchen Collection, Inc. | 475,218 | 6/30/2026 | 100 | % | ||
10590 Hamilton Ave. | Cincinnati | OH | The Hillman Group, Inc. | 264,598 | 12/31/2027 | 100 | % | ||
1650 - 1654 Williams Rd. | Columbus | OH | ODW Logistics, Inc. (Nessent Ltd. And Dist-Trans Co, LLC) | 772,450 | 6/30/2020 | 100 | % | ||
7005 Cochran Rd. | Glenwillow | OH | Royal Appliance Mfg. Co. | 458,000 | 7/31/2025 | 100 | % | ||
191 Arrowhead Dr. | Hebron | OH | Owens Corning Insulating Systems, LLC | 250,410 | 12/31/2019 | 100 | % | ||
200 Arrowhead Dr. | Hebron | OH | Owens Corning Insulating Systems, LLC | 400,522 | 12/31/2019 | 100 | % | ||
10345 Philipp Pkwy. | Streetsboro | OH | L'Oreal USA S/D, Inc. (L'Oreal USA, Inc.) | 649,250 | 10/17/2019 | 100 | % | ||
27255 SW 95th Ave. | Wilsonville | OR | Pacific Foods of Oregon Inc. d/b/a Pacific Natural Foods | 508,277 | 10/31/2032 | 100 | % | ||
250 Rittenhouse Cir. | Bristol | PA | Northtec LLC (The Estée Lauder Companies Inc.) | 241,977 | 11/30/2026 | 100 | % | ||
100 Ryobi Dr. | Anderson | SC | One World Technologies, Inc. (Techtronic Industries Co. Ltd.) | 1,327,022 | 6/30/2036 | 100 | % | ||
590 Ecology Ln. | Chester | SC | Boral Stone Products LLC (Boral Limited) | 420,597 | 7/14/2025 | 100 | % | ||
101 Michelin Dr. | Laurens | SC | Michelin North America, Inc. | 1,164,000 | 1/31/2020 | 100 | % | ||
5795 North Blackstock Rd. | Spartanburg | SC | Wal-Mart Stores East, L.P. (Wal-Mart, Inc.) | 341,660 | 7/31/2024 | 100 | % | ||
1520 Lauderdale Memorial Hwy. | Cleveland | TN | General Electric Company | 851,370 | 3/31/2024 | 100 | % | ||
900 Industrial Blvd. | Crossville | TN | Dana Commercial Vehicle Products, LLC | 222,200 | 9/30/2026 | 100 | % | ||
120 Southeast Pkwy Dr. | Franklin | TN | Essex Group, Inc. (United Technologies Corporation) | 289,330 | 12/31/2023 | 100 | % | ||
201 James Lawrence Rd. | Jackson | TN | Kellogg Sales Company (Kellogg Company) | 1,062,055 | 10/31/2027 | 100 | % | ||
633 Garrett Pkwy. | Lewisburg | TN | Calsonic Kansei North America, Inc. | 310,000 | 3/31/2026 | 100 | % | ||
3350 Miac Cove Rd. | Memphis | TN | Mimeo.com, Inc. | 140,079 | 9/30/2020 | 77 | % | ||
3820 Micro Dr. | Millington | TN | Ingram Micro L.P. (Ingram Micro Inc.) | 701,819 | 9/30/2021 | 100 | % | ||
200 Sam Griffin Rd. | Smyrna | TN | Nissan North America, Inc. | 1,505,000 | 4/30/2027 | 100 | % | ||
1501 Nolan Ryan Expy. | Arlington | TX | Arrow Electronics, Inc. | 74,739 | 6/30/2027 | 100 | % | ||
7007 F.M. 362 Rd. | Brookshire | TX | Orizon Industries, Inc. (Spitzer Industries, Inc.) | 262,095 | 3/31/2035 | 100 | % |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
2115 East Belt Line Rd. | Carrollton | TX | Teasdale Foods, Inc. | 356,855 | 12/31/2033 | 100 | % | ||
4005 E I-30 | Grand Prairie | TX | O'Neal Metals (Texas) L.P. (O'Neal Industries, Inc.) | 215,000 | 3/31/2037 | 100 | % | ||
13863 Industrial Rd. | Houston | TX | Curtis Kelly, Inc. (Spitzer Industries, Inc.) | 187,800 | 3/31/2035 | 100 | % | ||
13901/14035 Industrial Rd. | Houston | TX | Watco Dock & Rail III, L.L.C. (Watco Companies, L.L.C.) | 132,449 | 3/31/2038 | 100 | % | ||
13930 Pike Rd. | Missouri City | TX | Vulcan Construction Materials, LP (Vulcan Materials Company) | N/A | 4/30/2032 | 100 | % | ||
10535 Red Bluff Rd. | Pasadena | TX | Unis, LLC | 257,835 | 8/31/2023 | 100 | % | ||
16407 Applewhite Rd. | San Antonio | TX | International Heating, Air-Conditioning and Refrigeration Solutions Company | 849,275 | 4/30/2027 | 100 | % | ||
2601 Bermuda Hundred Rd. | Chester | VA | Philip Morris USA Inc. | 1,034,470 | 6/30/2030 | 100 | % | ||
80 Tyson Dr. | Winchester | VA | Undisclosed(1) | 400,400 | 12/18/2031 | 100 | % | ||
291 Park Center Dr. | Winchester | VA | Kraft Heinz Foods Company | 344,700 | 5/31/2021 | 100 | % | ||
901 East Bingen Point Way | Bingen | WA | The Boeing Company | 124,539 | 5/31/2024 | 100 | % | ||
2800 Polar Way | Richland | WA | Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC) | 456,412 | 8/31/2035 | 100 | % | ||
111 West Oakview Pkwy. | Oak Creek | WI | Stella & Chewy's LLC | 164,007 | 6/30/2035 | 100 | % | ||
Multi-tenant/vacant properties: | |||||||||
2935 Van Vactor Dr. | Plymouth | IN | (Available for lease) | 300,500 | N/A | 0 | % | ||
1133 Poplar Creek Rd. | Henderson | NC | (Available for lease) | 196,946 | N/A | 0 | % | ||
50 Tyger River Dr. | Duncan | SC | (Available for lease) | 221,833 | N/A | 0 | % | ||
6050 Dana Way | Antioch | TN | Multi-tenanted | 674,528 | Various | 97 | % | ||
3456 Meyers Ave. | Memphis | TN | (Available for lease) | 780,000 | N/A | 0 | % | ||
Industrial Total | 41,447,962 | 96.3 | % |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OFFICE | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
Single-tenant properties: | |||||||||
19019 North 59th Ave. | Glendale | AZ | Honeywell International Inc. | 252,300 | 7/15/2024 | 100 | % | ||
8555 South River Pkwy. | Tempe | AZ | Versum Materials US, LLC | 95,133 | 12/31/2033 | 100 | % | ||
1440 East 15th St. | Tucson | AZ | CoxCom, LLC | 28,591 | 7/31/2022 | 100 | % | ||
3333 Coyote Hill Rd. | Palo Alto | CA | Xerox Corporation | 202,000 | 12/14/2023 | 100 | % | ||
5600 Broken Sound Blvd. | Boca Raton | FL | Canon Solutions America, Inc. (Océ -USA Holding, Inc.) | 143,290 | 2/14/2020 | 100 | % | ||
9200 South Park Center Loop | Orlando | FL | CardWorks Servicing, LLC (CardWorks, Inc.) | 59,927 | 9/30/2029 | 100 | % | ||
3500 N. Loop Rd. | McDonough | GA | Total Systems Services, Inc. | 62,218 | 8/31/2021 | 100 | % | ||
3265 E. Goldstone Dr. | Meridian | ID | VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.) | 77,484 | 6/30/2026 | 100 | % | ||
500 Jackson St. | Columbus | IN | Cummins Inc. | 390,100 | 7/31/2024 | 100 | % | ||
10475 Crosspoint Blvd. | Indianapolis | IN | John Wiley & Sons, Inc. | 141,047 | 10/31/2019 | 100 | % | ||
9601 Renner Blvd. | Lenexa | KS | VoiceStream PCS II Corporation (T-Mobile USA, Inc.) | 77,484 | 10/31/2019 | 100 | % | ||
11201 Renner Blvd. | Lenexa | KS | United States of America | 169,585 | 10/31/2027 | 100 | % | ||
4455 American Way | Baton Rouge | LA | New Cingular Wireless PCS, LLC | 70,100 | 10/31/2022 | 100 | % | ||
133 First Park Dr. | Oakland | ME | Omnipoint Holdings, Inc. (T-Mobile USA, Inc.) | 78,610 | 8/31/2020 | 100 | % | ||
2800 High Meadow Cir. | Auburn Hills | MI | Faurecia USA Holdings, Inc. | 278,000 | 3/31/2029 | 100 | % | ||
9201 Stateline Rd. | Kansas City | MO | Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss RE Management (US) Corporation | 155,925 | 4/1/2019 | 100 | % | ||
3943 Denny Ave. | Pascagoula | MS | Huntington Ingalls Incorporated | 94,841 | 10/31/2023 | 100 | % | ||
1415 Wyckoff Rd. | Wall | NJ | New Jersey Natural Gas Company | 157,511 | 6/30/2021 | 100 | % | ||
29 S. Jefferson Rd. | Whippany | NJ | CAE SimuFlite, Inc. (CAE INC.) | 123,734 | 11/30/2021 | 100 | % | ||
2999 Southwest 6th St. | Redmond | OR | VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.) | 77,260 | 7/31/2029 | 100 | % | ||
1701 Market St. | Philadelphia | PA | Morgan, Lewis & Bockius LLP | 304,037 | 1/31/2021 | 99 | % | ||
1362 Celebration Blvd. | Florence | SC | MED3000, Inc. | 32,000 | 2/14/2024 | 100 | % | ||
3476 Stateview Blvd. | Fort Mill | SC | Wells Fargo Bank, N.A. | 169,083 | 5/31/2024 | 100 | % | ||
3480 Stateview Blvd. | Fort Mill | SC | Wells Fargo Bank, N.A. | 169,218 | 5/31/2024 | 100 | % | ||
2401 Cherahala Blvd. | Knoxville | TN | AdvancePCS, Inc. / CaremarkPCS, L.L.C. | 59,748 | 5/31/2027 | 100 | % |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OFFICE | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
1401 Nolan Ryan Expy. | Arlington | TX | Triumph Aerostructures, LLC (Triumph Group, Inc.) | 161,808 | 1/31/2025 | 80 | % | ||
820 Gears Rd. | Houston | TX | Ricoh, USA, Inc. | 78,895 | 1/31/2019 | 100 | % | ||
270 Abner Jackson Pkwy. | Lake Jackson | TX | The Dow Chemical Company | 664,100 | 10/31/2036 | 100 | % | ||
3711 San Gabriel | Mission | TX | VoiceStream PCS II Corporation / T-Mobile West Corporation | 75,016 | 6/30/2020 | 100 | % | ||
2050 Roanoke Rd. | Westlake | TX | Charles Schwab & Co., Inc. | 130,199 | 6/30/2021 | 100 | % | ||
13651 McLearen Rd. | Herndon | VA | United States of America | 159,644 | 5/30/2022 | 100 | % | ||
2800 Waterford Lake Dr. | Midlothian | VA | Alstom Power, Inc. | 99,057 | 12/31/2019 | 100 | % | ||
Multi-tenant/vacant properties: | |||||||||
13430 North Black Canyon Fwy | Phoenix | AZ | Multi-tenanted | 138,940 | Various | 85 | % | ||
5200 Metcalf Ave. | Overland Park | KS | (Available for lease) | 320,198 | N/A | 0 | % | ||
1460 Tobias Gadson Blvd. | Charleston | SC | Vallen Distribution, Inc. | 50,246 | 6/30/2019 | 64 | % | ||
11511 Luna Rd. | Farmers Branch | TX | International Business Machines Corporation | 181,072 | 4/30/2021 | 92 | % | ||
1311 Broadfield Blvd. | Houston | TX | Saipem America, Inc. (Saipem S.p.A.) | 155,407 | 3/31/2028 | 49 | % | ||
Office Total | 5,683,808 | 91.4 | % |
LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OTHER | ||||||||||
As of December 31, 2018 | ||||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Property Type | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | |||
Single-tenant properties: | ||||||||||
499 Derbyshire Dr. | Venice | FL | Littlestone Brotherhood LLC (Ralph Little) | Specialty | 31,180 | 1/31/2055 | 100 | % | ||
30 Light St. | Baltimore | MD | 30 Charm City, LLC | Specialty | N/A | 12/31/2048 | 100 | % | ||
201-215 N. Charles St. | Baltimore | MD | 201 NC Leasehold LLC | Specialty | N/A | 8/31/2112 | 100 | % | ||
10201 Schuster Way | Pataskala | OH | Kohl's Department Stores, Inc. (Kohl's Corporation) | Specialty | N/A | 12/31/2067 | 100 | % | ||
B.E.C. 45th St/Lee Blvd. | Lawton | OK | Associated Wholesale Grocers, Inc. / Safeway, Inc. | Retail | 30,757 | 3/31/2024 | 100 | % | ||
1053 Mineral Springs Rd. | Paris | TN | The Kroger Co. | Retail | 31,170 | 7/1/2023 | 100 | % | ||
175 Holt Garrison Pkwy. | Danville | VA | Home Depot USA, Inc. | Specialty | N/A | 1/31/2029 | 100 | % | ||
Multi-tenant/vacant properties: | ||||||||||
832 N. Westover Blvd. | Albany | GA | (Available for lease) | Retail | 45,554 | N/A | 0 | % | ||
King St./1042 Fort St. Mall | Honolulu | HI | Multi-tenanted | Retail/Office | 77,459 | Various | 46 | % | ||
21082 Pioneer Plaza Dr. | Watertown | NY | (Available for lease) | Retail | 120,727 | N/A | 0 | % | ||
97 Seneca Trail | Fairlea | WV | (Available for lease) | Retail | 90,933 | N/A | 0 | % | ||
Other Total | 427,780 | 30.0 | % | |||||||
Consolidated Portfolio Grand Total | 47,559,550 | 95.1 | % |
LEXINGTON NON-CONSOLIDATED PORTFOLIO PROPERTY CHART | |||||||||
As of December 31, 2018 | |||||||||
Property Location | City | State | Primary Tenant (Guarantor) | Property Type | Net Rentable Square Feet | Current Lease Term Expiration | Percent Leased | ||
9201 E. Dry Creek Rd. | Centennial | CO | Arrow Electronics, Inc. | Office | 128,500 | 3/31/2033 | 100 | % | |
9655 Maroon Cir. | Englewood | CO | TriZetto Corporation (Cognizant Technology Solutions Corporation) | Office | 166,912 | 4/30/2028 | 100 | % | |
1315 West Century Dr. | Louisville | CO | Global Healthcare Exchange, Inc. (GHX Ultimate Partner Corporation) | Office | 106,877 | 4/30/2027 | 100 | % | |
143 Diamond Ave. | Parachute | CO | Encana Oil and Gas (USA) Inc./Caerus Piceanco LLC (Alenco Inc.) | Office | 49,024 | 10/31/2032 | 100 | % | |
2500 Patrick Henry Pkwy. | McDonough | GA | Georgia Power Company | Office | 111,911 | 6/30/2025 | 100 | % | |
231 N. Martingale Rd. | Schaumburg | IL | CEC Educational Services, LLC (Career Education Corporation) | Office | 317,198 | 12/31/2022 | 100 | % | |
3902 Gene Field Rd. | St. Joseph | MO | Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation) | Office | 98,849 | 6/30/2027 | 100 | % | |
1210 AvidXchange Ln. | Charlotte | NC | AvidXchange, Inc. | Office | 201,450 | 4/30/2032 | 100 | % | |
333 Mount Hope Ave. | Rockaway | NJ | Atlantic Health System, Inc. | Office | 92,326 | 12/31/2031 | 100 | % | |
6226 West Sahara Ave. | Las Vegas | NV | Nevada Power Company | Office | 282,000 | 1/31/2029 | 100 | % | |
2221 Schrock Rd. | Columbus | OH | MS Consultants, Inc. | Office | 42,290 | 7/6/2027 | 100 | % | |
500 Olde Worthington Rd. | Westerville | OH | InVentiv Health, Inc. (Syneos Health, Inc.) | Office | 97,000 | 3/31/2026 | 100 | % | |
25 Lakeview Dr. | Jessup | PA | TMG Health, Inc. (Cognizant Technology Solutions Corporation) | Office | 150,000 | 8/7/2027 | 100 | % | |
601 & 701 Experian Pkwy. | Allen | TX | Experian Information Solutions, Inc. / TRW, Inc. (Experian Holdings, Inc.) | Office | 292,700 | 3/14/2025 | 100 | % | |
4001 International Pkwy. | Carrollton | TX | Motel 6 Operating, LP | Office | 138,443 | 12/31/2025 | 100 | % | |
10001 Richmond Ave. | Houston | TX | Schlumberger Holdings Corp. | Office | 554,385 | 9/30/2025 | 100 | % | |
810 Gears Rd. | Houston | TX | United States of America | Office | 78,895 | 1/10/2031 | 87 | % | |
18839 McKay Blvd. | Humble | TX | Triumph Rehabilitation Hospital of Northeast Houston, LLC (RehabCare Group, Inc.) | Other | 55,646 | 1/31/2029 | 100 | % | |
6555 Sierra Dr. | Irving | TX | TXU Energy Retail Company, LLC (Texas Competitive Electric Holding Company, LLC) | Office | 247,254 | 2/28/2025 | 100 | % | |
8900 Freeport Pkwy. | Irving | TX | Nissan Motor Acceptance Corporation (Nissan North America, Inc.) | Office | 268,445 | 3/31/2023 | 100 | % | |
2203 North Westgreen Blvd. | Katy | TX | British Schools of America, LLC | Other | 274,000 | 8/31/2036 | 100 | % | |
800 East Canal St. | Richmond | VA | McGuireWoods LLP | Office | 330,309 | 8/31/2030 | 87 | % | |
500 Kinetic Dr. | Huntington | WV | AMZN WVCS LLC (Amazon.com, Inc.) | Office | 68,693 | 11/30/2026 | 100 | % | |
Total | 4,153,107 | 98.7 | % |
Year | Number of Lease Expirations | Square Feet | GAAP Base Rent ($000) | Percentage of Annual Rent | ||||||||
2019 | 47 | 2,706,226 | $ | 16,498 | 6.0 | % | ||||||
2020 | 17 | 3,840,817 | 15,934 | 5.8 | % | |||||||
2021 | 20 | 4,371,717 | 26,792 | 9.7 | % | |||||||
2022 | 4 | 516,184 | 6,204 | 2.3 | % | |||||||
2023 | 8 | 1,163,086 | 9,766 | 3.5 | % | |||||||
2024 | 19 | 4,851,851 | 24,787 | 9.0 | % | |||||||
2025 | 14 | 2,916,169 | 15,819 | 5.7 | % | |||||||
2026 | 10 | 4,191,228 | 14,357 | 5.2 | % | |||||||
2027 | 12 | 6,536,053 | 30,489 | 11.1 | % | |||||||
2028 | 6 | 1,892,384 | 12,942 | 4.7 | % |
GAAP Base Rent | Percentage | |||||
Investment Grade | $ | 112,242 | 39.1 | % | ||
Non-investment Grade | 54,716 | 19.0 | % | |||
Unrated | 120,369 | 41.9 | % | |||
$ | 287,327 | 100.0 | % |
Name | Business Experience |
T. Wilson Eglin Age 54 | Mr. Eglin has served as our Chief Executive Officer since January 2003, our President since April 1996 and as a trustee since May 1994. He served as one of our Executive Vice Presidents from October 1993 to April 1996 and our Chief Operating Officer from October 1993 to December 2010. |
Patrick Carroll Age 55 | Mr. Carroll has served as our Chief Financial Officer since May 1998, our Treasurer since January 1999 and one of our Executive Vice Presidents since January 2003. Prior to joining us, Mr. Carroll was, from 1986 to 1998, in the real estate practice of Coopers & Lybrand L.L.P., a public accounting firm that was one of the predecessors of PricewaterhouseCoopers LLP. Mr. Carroll is a Certified Public Accountant. |
Joseph S. Bonventre Age 43 | Mr. Bonventre has served as our General Counsel since 2004, one of our Executive Vice Presidents since 2008 and our Secretary since 2014. Prior to joining us in September 2004, Mr. Bonventre was an associate in the corporate department of the law firm now known as Paul Hastings LLP. Mr. Bonventre is admitted to practice law in the State of New York. |
Beth Boulerice Age 54 | Ms. Boulerice has served as our Chief Accounting Officer since January 2011 and one of our Executive Vice Presidents since January 2013. Prior to joining us in January 2007, Ms. Boulerice was employed by First Winthrop Corporation and was the Chief Accounting Officer of Newkirk Realty Trust. Ms. Boulerice is a Certified Public Accountant. |
Brendan P. Mullinix Age 44 | Mr. Mullinix was appointed an executive officer in February 2018 and has served as one of our Executive Vice Presidents focusing on debt capital markets. Mr. Mullinix joined us in 1996 and has previously served as a Senior Vice President and a Vice President. |
Lara Johnson Age 46 | Ms. Johnson was appointed an executive officer in February 2018 and has served as one of our Executive Vice Presidents focusing on dispositions and strategic transactions. Prior to joining us in 2007, Ms. Johnson was an executive vice president of Newkirk Realty Trust and a member of its board of directors. Ms. Johnson previously served as senior vice president of Winthrop Financial Associates, as a vice president of Shelbourne I, Shelbourne II and Shelbourne III, three publicly-traded REITs, and as Director of Investor Relations for National Property Investors, Inc. |
James Dudley Age 38 | Mr. Dudley was appointed an executive officer in February 2018 and has served as an Executive Vice President and Director of Asset Management. He has been with the company since 2006 and has held various roles within the Asset Management Department. Prior to joining the firm, Mr. Dudley was employed by ORIX Capital Markets. |
Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||||||||
Plan Category | (a) | (b) | (c) | |||||||
Equity compensation plans approved by security holders | 118,400 | $ | 7.44 | 4,012,870 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 118,400 | $ | 7.44 | 4,012,870 |
Period | Total number of shares/units purchased | Average price paid per share/unit ($) | Total number of shares/units purchased as part of publicly announced plans or programs | Maximum number of shares/units that may yet be purchased under the plans or programs | ||||||||
October 1-31, 2018 | 2,681,215 | 8.06 | 2,681,215 | 2,046,218 | ||||||||
November 1-30, 2018(2) | — | — | — | 12,046,218 | ||||||||
December 1-31, 2018(3) | 1,298,382 | 8.08 | 1,298,382 | 10,747,836 | ||||||||
Total | 3,979,597 | 8.07 | 3,979,597 | 10,747,836 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Total gross revenues | $ | 395,339 | $ | 391,641 | $ | 429,496 | $ | 430,839 | $ | 423,818 | |||||||||
Expenses applicable to revenues | (210,866 | ) | (223,162 | ) | (213,403 | ) | (222,853 | ) | (218,510 | ) | |||||||||
Interest and amortization expense | (79,880 | ) | (77,883 | ) | (88,032 | ) | (89,739 | ) | (97,303 | ) | |||||||||
Income from continuing operations | 230,906 | 86,629 | 96,450 | 113,209 | 47,842 | ||||||||||||||
Total discontinued operations | — | — | — | 1,682 | 49,621 | ||||||||||||||
Net income | 230,906 | 86,629 | 96,450 | 114,891 | 97,463 | ||||||||||||||
Net income attributable to Lexington Realty Trust shareholders | 227,415 | 85,583 | 95,624 | 111,703 | 93,104 | ||||||||||||||
Net income attributable to common shareholders | 220,838 | 79,067 | 89,109 | 105,100 | 86,324 | ||||||||||||||
Income from continuing operations per common share - basic | 0.93 | 0.33 | 0.38 | 0.44 | 0.17 | ||||||||||||||
Income from discontinued operations - basic | — | — | — | 0.01 | 0.21 | ||||||||||||||
Net income per common share - basic | 0.93 | 0.33 | 0.38 | 0.45 | 0.38 | ||||||||||||||
Income from continuing operations per common share - diluted | 0.93 | 0.33 | 0.37 | 0.44 | 0.17 | ||||||||||||||
Income from discontinued operations per common share - diluted | — | — | — | 0.01 | 0.21 | ||||||||||||||
Net income per common share - diluted | 0.93 | 0.33 | 0.37 | 0.45 | 0.38 | ||||||||||||||
Cash dividends declared per common share | 0.71 | 0.7025 | 0.69 | 0.68 | 0.675 | ||||||||||||||
Net cash provided by operating activities(1) | 217,811 | 227,870 | 239,810 | 245,020 | 221,577 | ||||||||||||||
Net cash provided by (used in) investing activities(1) | 554,891 | (283,074 | ) | 11,384 | (391,016 | ) | (43,984 | ) | |||||||||||
Net cash provided by (used in) financing activities(1) | (707,611 | ) | 49,581 | (237,301 | ) | 41,426 | (66,351 | ) | |||||||||||
Real estate assets, net, including real estate - intangible assets | 2,555,659 | 3,309,900 | 3,028,326 | 3,397,922 | 3,287,250 | ||||||||||||||
Total assets | 2,953,840 | 3,553,020 | 3,441,467 | 3,808,403 | 3,758,483 | ||||||||||||||
Mortgages, notes payable, credit facility and term loans, including discontinued operations | 1,492,483 | 2,068,867 | 1,860,598 | 2,190,740 | 2,076,042 | ||||||||||||||
Shareholders' equity | 1,329,871 | 1,323,901 | 1,392,777 | 1,440,029 | 1,485,766 | ||||||||||||||
Total equity | 1,346,678 | 1,340,835 | 1,412,491 | 1,462,531 | 1,508,920 | ||||||||||||||
Preferred share liquidation preference | 96,770 | 96,770 | 96,770 | 96,770 | 96,770 |
Location | Property Type | Square Feet (000's) | Capitalized Cost (millions) | Approximate Lease Term (Years) | Date Acquired | |||||||||
Olive Branch, MS | Industrial | 716 | $ | 44.1 | 11 | 2Q 2018 | ||||||||
Olive Branch, MS | Industrial | 1,170 | 48.5 | 3 | 2Q 2018 | |||||||||
Edwardsville, IL | Industrial | 1,018 | 44.2 | 12 | 2Q 2018 | |||||||||
Spartanburg, SC | Industrial | 342 | 27.6 | 6 | 3Q 2018 | |||||||||
Pasadena, TX | Industrial | 258 | 23.9 | 5 | 3Q 2018 | |||||||||
Carrollton, TX | Industrial | 357 | 19.6 | 14 | 3Q 2018 | |||||||||
Goodyear, AZ | Industrial | 540 | 41.4 | 7 | 4Q 2018 | |||||||||
Chester, VA | Industrial | 1,034 | 66.3 | 12 | 4Q 2018 | |||||||||
5,435 | $ | 315.6 |
(1) | We acquired a 57-acre parcel of land from a non-consolidated joint venture and leased the parcel to a tenant to develop an industrial property. |
Location | Property Type | Square Feet (000's) | Capitalized Cost (millions) | Approximate Lease Term (Years) | Date Acquired | ||||||||
New Century, KS | Industrial | 447 | $ | 12.1 | 10 | 1Q 2017 | |||||||
Lebanon, IN | Industrial | 742 | 36.2 | 7 | 1Q 2017 | ||||||||
Cleveland, TN | Industrial | 851 | 34.4 | 7 | 2Q 2017 | ||||||||
Grand Prairie, TX | Industrial | 215 | 24.3 | 20 | 2Q 2017 | ||||||||
San Antonio, TX | Industrial | 849 | 45.5 | 10 | 2Q 2017 | ||||||||
McDonough, GA(1) | Industrial | 1,121 | 66.7 | 10 | 3Q 2017 | ||||||||
Byhalia, MS | Industrial | 616 | 36.6 | 10 | 3Q 2017 | ||||||||
Jackson, TN | Industrial | 1,062 | 57.9 | 10 | 3Q 2017 | ||||||||
Smyrna, TN | Industrial | 1,505 | 104.9 | 10 | 3Q 2017 | ||||||||
Lafayette, IN | Industrial | 309 | 17.4 | 7 | 4Q 2017 | ||||||||
Romulus, MI | Industrial | 500 | 38.9 | 15 | 4Q 2017 | ||||||||
Warren, MI | Industrial | 260 | 47.0 | 15 | 4Q 2017 | ||||||||
Winchester, VA | Industrial | 400 | 36.7 | 14 | 4Q 2017 | ||||||||
8,877 | $ | 558.6 |
Location | Property Type | Square Feet (000's) | Initial Capitalized Cost (millions) | Lease Term (Years) | Date Acquired/Completed | Capitalized Cost Per Square Foot | |||||||||||
Lake Jackson, TX(2) | Office | 275 | $ | 70.4 | 20 | 1Q 2017 | $ | 256.09 | |||||||||
Charlotte, NC | Office | 201 | 61.3 | 15 | 2Q 2017 | $ | 304.49 | ||||||||||
Opelika, AL | Industrial | 165 | 37.3 | 25 | 3Q 2017 | $ | 225.20 | ||||||||||
641 | $ | 169.0 |
(1) | Square footage includes a 220-thousand-square-foot expansion which was completed in 2018. |
(2) | Completed the construction on the final building of a four-building project. Initial cost basis excludes developer partner payout of $8.0 million. |
Issue Date | Face Amount (millions) | Interest Rate | Maturity Date | Issue Price | ||||||||
May 2014 | $ | 250.0 | 4.40 | % | June 2024 | 99.883 | % | |||||
June 2013 | 250.0 | 4.25 | % | June 2023 | 99.026 | % | ||||||
$ | 500.0 |
Maturity Date | Interest Rate | |||
$505.0 Million Revolving Credit Facility(1) | 08/2019 | LIBOR + 1.00% | ||
$300.0 Million Term Loan(2) | 01/2021 | LIBOR + 1.10% |
(1) | Maturity date can be extended to August 2020 at our option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2018, the unsecured revolving credit facility had no borrowing outstanding and availability of $505.0 million subject to covenant compliance. |
(2) | The interest rate ranges from LIBOR plus 0.90% to 1.75%. We had aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255.0 million of the $300.0 million outstanding LIBOR-based borrowings. During 2018, we satisfied in full the $300 million term loan due in 2020. |
2018 | 2017 | 2016 | |||||||||
Total cash base rent | $ | 202,233 | $ | 202,690 | $ | 201,862 | |||||
Tenant reimbursements | 12,993 | 11,233 | 11,740 | ||||||||
Property operating expenses | (23,729 | ) | (22,137 | ) | (20,730 | ) | |||||
Same-store NOI | $ | 191,497 | $ | 191,786 | $ | 192,872 |
Twelve Months ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income | $ | 230,906 | $ | 86,629 | $ | 96,450 | |||||
Interest and amortization expense | 79,880 | 77,883 | 88,032 | ||||||||
Provision for income taxes | 1,728 | 1,917 | 1,439 | ||||||||
Depreciation and amortization | 168,191 | 173,968 | 166,048 | ||||||||
General and administrative | 31,662 | 34,158 | 31,104 | ||||||||
Litigation settlement | — | 2,050 | — | ||||||||
Transaction costs | 260 | 2,171 | 836 | ||||||||
Non-operating income | (3,491 | ) | (10,378 | ) | (13,043 | ) | |||||
Gains on sales of properties | (252,913 | ) | (63,428 | ) | (81,510 | ) | |||||
Impairment charges and loan losses | 95,813 | 44,996 | 100,236 | ||||||||
Debt satisfaction (gains) charges, net | 2,596 | (6,196 | ) | 975 | |||||||
Equity in (earnings) losses of non-consolidated entities | (1,708 | ) | 848 | (7,590 | ) | ||||||
Lease termination income | (2,755 | ) | (3,242 | ) | (17,363 | ) | |||||
Straight-line adjustments | (20,968 | ) | (19,784 | ) | (37,748 | ) | |||||
Lease incentives | 1,686 | 1,969 | 1,673 | ||||||||
Amortization of above/below market leases | (10,132 | ) | 1,544 | 2,057 | |||||||
NOI | 320,755 | 325,105 | 331,596 | ||||||||
Less NOI: | |||||||||||
Acquisitions and dispositions | (129,258 | ) | (133,319 | ) | (138,724 | ) | |||||
Same-Store NOI | $ | 191,497 | $ | 191,786 | $ | 192,872 |
2018 | 2017 | 2016 | |||||||||||
FUNDS FROM OPERATIONS: | |||||||||||||
Basic and Diluted: | |||||||||||||
Net income attributable to common shareholders | $ | 220,838 | $ | 79,067 | $ | 89,109 | |||||||
Adjustments: | |||||||||||||
Depreciation and amortization | 164,261 | 168,683 | 159,363 | ||||||||||
Impairment charges - real estate, including non-consolidated entities | 95,813 | 43,214 | 100,236 | ||||||||||
Noncontrolling interests - OP units | 2,528 | 147 | (159 | ) | |||||||||
Amortization of leasing commissions | 3,930 | 5,285 | 6,684 | ||||||||||
Joint venture and noncontrolling interest adjustment | 4,063 | 1,121 | 1,111 | ||||||||||
Gains on sales of properties, including non-consolidated entities and net of tax | (254,269 | ) | (64,880 | ) | (87,468 | ) | |||||||
FFO available to common shareholders and unitholders - basic | 237,164 | 232,637 | 268,876 | ||||||||||
Preferred dividends | 6,290 | 6,290 | 6,290 | ||||||||||
Interest and amortization on 6.00% Convertible Guaranteed Notes | — | — | 532 | ||||||||||
Amount allocated to participating securities | 287 | 226 | 225 | ||||||||||
FFO available to all equityholders and unitholders - diluted | 243,741 | 239,153 | 275,923 | ||||||||||
Litigation settlement | — | 2,050 | — | ||||||||||
Debt satisfaction (gains) charges, net, including non-consolidated entities | 2,596 | (6,174 | ) | 975 | |||||||||
Impairment loss - loan receivable | — | 5,294 | — | ||||||||||
Unearned contingent acquisition consideration | — | (3,922 | ) | — | |||||||||
Other(1) | (10,038 | ) | 2,171 | 837 | |||||||||
Adjusted Company FFO available to all equityholders and unitholders - diluted | $ | 236,299 | $ | 238,572 | $ | 277,735 |
Per Common Share and Unit Amounts | |||||||||||
Basic: | |||||||||||
FFO | $ | 0.99 | $ | 0.96 | $ | 1.13 | |||||
Diluted: | |||||||||||
FFO | $ | 0.99 | $ | 0.97 | $ | 1.13 | |||||
Adjusted Company FFO | $ | 0.96 | $ | 0.97 | $ | 1.14 |
Weighted-Average Common Shares: | ||||||||
Basic: | ||||||||
Weighted-average common shares outstanding - basic EPS | 236,666,375 | 237,758,408 | 233,633,058 | |||||
Operating partnership units(2) | 3,616,120 | 3,693,144 | 3,815,621 | |||||
Weighted-average common shares outstanding - basic FFO | 240,282,495 | 241,451,552 | 237,448,679 | |||||
Diluted: | ||||||||
Weighted-average common shares outstanding - diluted EPS | 240,810,990 | 241,537,837 | 237,679,031 | |||||
Unvested share-based payment awards | — | 666,127 | 549,049 | |||||
6.00% Convertible Guaranteed Notes | — | — | 1,077,626 | |||||
Preferred shares - Series C | 4,710,570 | 4,710,570 | 4,710,570 | |||||
Weighted-average common shares outstanding - diluted FFO | 245,521,560 | 246,914,534 | 244,016,276 |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 and Thereafter | Total | ||||||||||||||||||||||
Mortgages and notes payable(1) | $ | 101,887 | $ | 55,143 | $ | 40,465 | $ | 22,120 | $ | 23,998 | $ | 331,901 | $ | 575,514 | ||||||||||||||
Term loans payable | — | — | 300,000 | — | — | — | 300,000 | |||||||||||||||||||||
Senior notes payable | — | — | — | — | 250,000 | 250,000 | 500,000 | |||||||||||||||||||||
Trust preferred securities | — | — | — | — | — | 129,120 | 129,120 | |||||||||||||||||||||
Interest payable(2) | 60,716 | 56,650 | 44,081 | 42,173 | 35,527 | 152,607 | 391,754 | |||||||||||||||||||||
Operating lease obligations(3) | 5,121 | 5,123 | 5,094 | 5,169 | 5,312 | 31,261 | 57,080 | |||||||||||||||||||||
$ | 167,724 | $ | 116,916 | $ | 389,640 | $ | 69,462 | $ | 314,837 | $ | 894,889 | $ | 1,953,468 |
1. | Includes balloon payments. |
2. | Includes variable-rate debt at the rate in effect at December 31, 2018. Variable-rate debt as of December 31, 2018 is comprised of $129.1 million Trust Preferred Securities (90-day LIBOR plus 1.7% and matures 2037) and $45.0 million term loan (LIBOR plus 1.1% and matures 2021). Also a $255.0 million term loan, which was subject to interest rate swap agreements that expired in in January 2019, bears interest at LIBOR plus 1.1% after expiration of the interest rate swap agreements. |
3. | Includes ground lease payments and office rents. Amounts disclosed do not include rents that adjust to fair market value. In addition, certain ground lease payments due under bond leases allow for a right of offset between the lease obligation and the debt service and accordingly are not included. |
2018 | 2017 | ||||||
Assets: | |||||||
Real estate, at cost | $ | 3,090,134 | $ | 3,936,459 | |||
Real estate - intangible assets | 419,612 | 599,091 | |||||
3,509,746 | 4,535,550 | ||||||
Less: accumulated depreciation and amortization | 954,087 | 1,225,650 | |||||
Real estate, net | 2,555,659 | 3,309,900 | |||||
Assets held for sale | 63,868 | 2,827 | |||||
Cash and cash equivalents | 168,750 | 107,762 | |||||
Restricted cash | 8,497 | 4,394 | |||||
Investment in and advances to non-consolidated entities | 66,183 | 17,476 | |||||
Deferred expenses (net of accumulated amortization of $27,397 in 2018 and $35,072 in 2017) | 15,937 | 31,693 | |||||
Rent receivable - current | 3,475 | 5,450 | |||||
Rent receivable – deferred | 58,692 | 52,769 | |||||
Other assets | 12,779 | 20,749 | |||||
Total assets | $ | 2,953,840 | $ | 3,553,020 | |||
Liabilities and Equity: | |||||||
Liabilities: | |||||||
Mortgages and notes payable, net | $ | 570,420 | $ | 689,810 | |||
Revolving credit facility borrowings | — | 160,000 | |||||
Term loans payable, net | 298,733 | 596,663 | |||||
Senior notes payable, net | 496,034 | 495,198 | |||||
Trust preferred securities, net | 127,296 | 127,196 | |||||
Dividends payable | 48,774 | 49,504 | |||||
Liabilities held for sale | 386 | — | |||||
Accounts payable and other liabilities | 30,790 | 38,644 | |||||
Accrued interest payable | 4,523 | 5,378 | |||||
Deferred revenue - including below market leases (net of accumulated accretion of $17,606 in 2018 and $26,081 in 2017) | 20,531 | 33,182 | |||||
Prepaid rent | 9,675 | 16,610 | |||||
Total liabilities | 1,607,162 | 2,212,185 | |||||
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 and 1,935,400 shares issued and outstanding | 94,016 | 94,016 | |||||
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 235,008,554 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively | 24 | 24 | |||||
Additional paid-in-capital | 2,772,855 | 2,818,520 | |||||
Accumulated distributions in excess of net income | (1,537,100 | ) | (1,589,724 | ) | |||
Accumulated other comprehensive income | 76 | 1,065 | |||||
Total shareholders’ equity | 1,329,871 | 1,323,901 | |||||
Noncontrolling interests | 16,807 | 16,934 | |||||
Total equity | 1,346,678 | 1,340,835 | |||||
Total liabilities and equity | $ | 2,953,840 | $ | 3,553,020 |
2018 | 2017 | 2016 | |||||||||
Gross revenues: | |||||||||||
Rental | $ | 364,731 | $ | 359,832 | $ | 398,065 | |||||
Tenant reimbursements | 30,608 | 31,809 | 31,431 | ||||||||
Total gross revenues | 395,339 | 391,641 | 429,496 | ||||||||
Expense applicable to revenues: | |||||||||||
Depreciation and amortization | (168,191 | ) | (173,968 | ) | (166,048 | ) | |||||
Property operating | (42,675 | ) | (49,194 | ) | (47,355 | ) | |||||
General and administrative | (31,662 | ) | (34,158 | ) | (31,104 | ) | |||||
Litigation settlement | — | (2,050 | ) | — | |||||||
Non-operating income | 3,491 | 10,378 | 13,043 | ||||||||
Interest and amortization expense | (79,880 | ) | (77,883 | ) | (88,032 | ) | |||||
Debt satisfaction gains (charges), net | (2,596 | ) | 6,196 | (975 | ) | ||||||
Impairment charges and loan losses | (95,813 | ) | (44,996 | ) | (100,236 | ) | |||||
Gains on sales of properties | 252,913 | 63,428 | 81,510 | ||||||||
Income before provision for income taxes, equity in earnings (losses) of non-consolidated entities and discontinued operations | 230,926 | 89,394 | 90,299 | ||||||||
Provision for income taxes | (1,728 | ) | (1,917 | ) | (1,439 | ) | |||||
Equity in earnings (losses) of non-consolidated entities | 1,708 | (848 | ) | 7,590 | |||||||
Net income | 230,906 | 86,629 | 96,450 | ||||||||
Less net income attributable to noncontrolling interests | (3,491 | ) | (1,046 | ) | (826 | ) | |||||
Net income attributable to Lexington Realty Trust shareholders | 227,415 | 85,583 | 95,624 | ||||||||
Dividends attributable to preferred shares – Series C – 6.50% rate | (6,290 | ) | (6,290 | ) | (6,290 | ) | |||||
Allocation to participating securities | (287 | ) | (226 | ) | (225 | ) | |||||
Net income attributable to common shareholders | $ | 220,838 | $ | 79,067 | $ | 89,109 | |||||
Net income attributable to common shareholders - per common share basic | $ | 0.93 | $ | 0.33 | $ | 0.38 | |||||
Weighted-average common shares outstanding – basic | 236,666,375 | 237,758,408 | 233,633,058 | ||||||||
Net income attributable to common shareholders - per common share diluted | $ | 0.93 | $ | 0.33 | $ | 0.37 | |||||
Weighted-average common shares outstanding – diluted | 240,810,990 | 241,537,837 | 237,679,031 |
2018 | 2017 | 2016 | |||||||||
Net income | $ | 230,906 | $ | 86,629 | $ | 96,450 | |||||
Other comprehensive income (loss): | |||||||||||
Change in unrealized gain (loss) on interest rate swaps, net | (989 | ) | 2,098 | 906 | |||||||
Other comprehensive income (loss) | (989 | ) | 2,098 | 906 | |||||||
Comprehensive income | 229,917 | 88,727 | 97,356 | ||||||||
Comprehensive income attributable to noncontrolling interests | (3,491 | ) | (1,046 | ) | (826 | ) | |||||
Comprehensive income attributable to Lexington Realty Trust shareholders | $ | 226,426 | $ | 87,681 | $ | 96,530 |
Lexington Realty Trust Shareholders | |||||||||||||||||||||||||||||||||
Total | Number of Preferred Shares | Preferred Shares | Number of Common Shares | Common Shares | Additional Paid-in-Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Income | Noncontrolling Interests | |||||||||||||||||||||||||
Balance December 31, 2017 | $ | 1,340,835 | 1,935,400 | $ | 94,016 | 240,689,081 | $ | 24 | $ | 2,818,520 | $ | (1,589,724 | ) | $ | 1,065 | $ | 16,934 | ||||||||||||||||
Redemption of noncontrolling OP units for common shares | — | — | — | 53,388 | — | 189 | — | — | (189 | ) | |||||||||||||||||||||||
Repurchase of common shares | (49,858 | ) | — | — | (5,851,252 | ) | — | (49,858 | ) | — | — | — | |||||||||||||||||||||
Exercise of employee common share options | 115 | — | — | 16,390 | — | 115 | — | — | — | ||||||||||||||||||||||||
Issuance of common shares and deferred compensation amortization, net | 6,520 | — | — | 966,791 | — | 6,520 | — | — | — | ||||||||||||||||||||||||
Repurchase of common shares to settle tax obligations | (2,544 | ) | — | — | (271,792 | ) | — | (2,544 | ) | — | — | — | |||||||||||||||||||||
Forfeiture of employee common shares | (71 | ) | — | — | (594,052 | ) | — | (87 | ) | 16 | — | — | |||||||||||||||||||||
Dividends/distributions | (178,236 | ) | — | — | — | — | — | (174,807 | ) | — | (3,429 | ) | |||||||||||||||||||||
Net income | 230,906 | — | — | — | — | — | 227,415 | — | 3,491 | ||||||||||||||||||||||||
Other comprehensive loss | (989 | ) | — | — | — | — | — | — | (989 | ) | — | ||||||||||||||||||||||
Balance December 31, 2018 | $ | 1,346,678 | 1,935,400 | $ | 94,016 | 235,008,554 | $ | 24 | $ | 2,772,855 | $ | (1,537,100 | ) | $ | 76 | $ | 16,807 |
Lexington Realty Trust Shareholders | |||||||||||||||||||||||||||||||||
Total | Number of Preferred Shares | Preferred Shares | Number of Common Shares | Common Shares | Additional Paid-in-Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |||||||||||||||||||||||||
Balance December 31, 2016 | $ | 1,412,491 | 1,935,400 | $ | 94,016 | 238,037,177 | $ | 24 | $ | 2,800,736 | $ | (1,500,966 | ) | $ | (1,033 | ) | $ | 19,714 | |||||||||||||||
Redemption of noncontrolling OP units for common shares | — | — | — | 140,746 | — | 584 | — | — | (584 | ) | |||||||||||||||||||||||
Exercise of employee common share options | 478 | — | — | 151,106 | — | 478 | — | — | — | ||||||||||||||||||||||||
Issuance of common shares and deferred compensation amortization, net | 24,673 | — | — | 2,360,052 | — | 24,673 | — | — | — | ||||||||||||||||||||||||
Acquisition of consolidated joint venture partner's equity interest | (7,951 | ) | — | — | — | — | (7,951 | ) | — | — | — | ||||||||||||||||||||||
Dividends/distributions | (177,583 | ) | — | — | — | — | — | (174,341 | ) | — | (3,242 | ) | |||||||||||||||||||||
Net income | 86,629 | — | — | — | — | — | 85,583 | — | 1,046 | ||||||||||||||||||||||||
Other comprehensive income | 2,098 | — | — | — | — | — | — | 2,098 | — | ||||||||||||||||||||||||
Balance December 31, 2017 | $ | 1,340,835 | 1,935,400 | $ | 94,016 | 240,689,081 | $ | 24 | $ | 2,818,520 | $ | (1,589,724 | ) | $ | 1,065 | $ | 16,934 |
Lexington Realty Trust Shareholders | |||||||||||||||||||||||||||||||||
Total | Number of Preferred Shares | Preferred Shares | Number of Common Shares | Common Shares | Additional Paid-in-Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Loss | Noncontrolling Interests | |||||||||||||||||||||||||
Balance December 31, 2015 | $ | 1,462,531 | 1,935,400 | $ | 94,016 | 234,575,225 | $ | 23 | $ | 2,776,837 | $ | (1,428,908 | ) | $ | (1,939 | ) | $ | 22,502 | |||||||||||||||
Redemption of noncontrolling OP units for common shares | — | — | — | 48,549 | — | 210 | — | — | (210 | ) | |||||||||||||||||||||||
Repurchase of common shares | (8,973 | ) | — | — | (1,184,113 | ) | — | (8,973 | ) | — | — | — | |||||||||||||||||||||
Issuance of common shares upon conversion of convertible notes | 12,027 | — | — | 1,892,269 | — | 12,027 | — | — | — | ||||||||||||||||||||||||
Exercise of employee common share options | (1,101 | ) | — | — | 170,412 | — | (1,101 | ) | — | — | — | ||||||||||||||||||||||
Issuance of common shares and deferred compensation amortization, net | 21,737 | — | — | 2,534,835 | 1 | 21,736 | — | — | — | ||||||||||||||||||||||||
Dividends/distributions | (171,086 | ) | — | — | — | — | — | (167,682 | ) | — | (3,404 | ) | |||||||||||||||||||||
Net income | 96,450 | — | — | — | — | — | 95,624 | — | 826 | ||||||||||||||||||||||||
Other comprehensive income | 906 | — | — | — | — | — | — | 906 | — | ||||||||||||||||||||||||
Balance December 31, 2016 | $ | 1,412,491 | 1,935,400 | $ | 94,016 | 238,037,177 | $ | 24 | $ | 2,800,736 | $ | (1,500,966 | ) | $ | (1,033 | ) | $ | 19,714 |
2018 | 2017 | 2016 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 230,906 | $ | 86,629 | $ | 96,450 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 172,088 | 177,561 | 170,038 | ||||||||
Gains on sales of properties | (252,913 | ) | (63,428 | ) | (81,510 | ) | |||||
Debt satisfaction (gains) charges, net | 2,596 | (6,196 | ) | 975 | |||||||
Impairment charges and loan losses | 95,813 | 44,996 | 100,236 | ||||||||
Straight-line rents | (20,207 | ) | (19,568 | ) | (37,445 | ) | |||||
Other non-cash (income) expense, net | (3,060 | ) | 8,093 | 1,656 | |||||||
Equity in (earnings) losses of non-consolidated entities | (1,708 | ) | 848 | (7,590 | ) | ||||||
Distributions of accumulated earnings from non-consolidated entities | 2,083 | 403 | 815 | ||||||||
Unearned contingent acquisition consideration | — | (3,922 | ) | — | |||||||
Deferred taxes, net | — | — | 59 | ||||||||
Change in accounts payable and other liabilities | (129 | ) | (1,141 | ) | (1,657 | ) | |||||
Change in rent receivable and prepaid rent, net | (3,942 | ) | 2,922 | (1,825 | ) | ||||||
Change in accrued interest payable | (891 | ) | 16 | 808 | |||||||
Other adjustments, net | (2,825 | ) | 657 | (1,200 | ) | ||||||
Net cash provided by operating activities: | 217,811 | 227,870 | 239,810 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in real estate, including intangible assets | (315,959 | ) | (558,571 | ) | (167,797 | ) | |||||
Investment in real estate under construction | — | (83,274 | ) | (132,192 | ) | ||||||
Capital expenditures | (15,506 | ) | (15,184 | ) | (4,408 | ) | |||||
Net proceeds from sale of properties | 898,514 | 223,853 | 370,038 | ||||||||
Net proceeds from sale of non-consolidated investment | — | 6,127 | — | ||||||||
Principal payments received on loans receivable | — | 139,042 | 2,214 | ||||||||
Investments in and advances to non-consolidated entities, net | (10,206 | ) | (9,898 | ) | (37,240 | ) | |||||
Distributions from non-consolidated entities in excess of accumulated earnings | 3,330 | 531 | 8,175 | ||||||||
Payments of deferred leasing costs | (4,522 | ) | (6,526 | ) | (6,558 | ) | |||||
Change in real estate deposits | (760 | ) | 20,826 | (20,848 | ) | ||||||
Net cash provided by (used in) investing activities | 554,891 | (283,074 | ) | 11,384 | |||||||
Cash flows from financing activities: | |||||||||||
Dividends to common and preferred shareholders | (175,537 | ) | (172,101 | ) | (165,858 | ) | |||||
Conversion of convertible notes | — | — | (672 | ) | |||||||
Principal amortization payments | (29,666 | ) | (30,082 | ) | (26,796 | ) | |||||
Principal payments on debt, excluding normal amortization | (14,599 | ) | (50,797 | ) | (109,973 | ) | |||||
Proceeds of mortgages and notes payable | 26,350 | 45,400 | 254,650 | ||||||||
Term loan payments | (300,000 | ) | — | — | |||||||
Proceeds from term loans | — | 95,000 | — | ||||||||
Revolving credit facility borrowings | 150,000 | 270,000 | 95,000 | ||||||||
Revolving credit facility payments | (310,000 | ) | (110,000 | ) | (272,000 | ) | |||||
Payment of early extinguishment of debt charges | (5 | ) | (1,326 | ) | (5,603 | ) | |||||
Payment of developer liabilities | — | — | (4,016 | ) | |||||||
Payments of deferred financing costs | (690 | ) | (2,124 | ) | (1,842 | ) | |||||
Cash distributions to noncontrolling interests | (3,429 | ) | (3,242 | ) | (3,404 | ) | |||||
Redemption of a noncontrolling interest | — | (7,951 | ) | — | |||||||
Repurchase of common shares | (47,217 | ) | — | (8,973 | ) | ||||||
Issuance of common shares, net of costs and repurchases to settle tax obligations | (2,818 | ) | 16,804 | 12,186 | |||||||
Net cash provided by (used in) financing activities | (707,611 | ) | 49,581 | (237,301 | ) | ||||||
Change in cash, cash equivalents and restricted cash | 65,091 | (5,623 | ) | 13,893 | |||||||
Cash, cash equivalents and restricted cash, at beginning of year | 112,156 | 117,779 | 103,886 | ||||||||
Cash, cash equivalents and restricted cash, at end of year | $ | 177,247 | $ | 112,156 | $ | 117,779 |
(2) | Summary of Significant Accounting Policies |
December 31, 2018 | December 31, 2017 | ||||||
Real estate, net | $ | 509,916 | $ | 682,587 | |||
Total assets | $ | 607,963 | $ | 766,025 | |||
Mortgages and notes payable, net | $ | 192,791 | $ | 212,792 | |||
Total liabilities | $ | 203,322 | $ | 226,331 |
(3) | Earnings Per Share |
2018 | 2017 | 2016 | |||||||||
BASIC | |||||||||||
Net income attributable to common shareholders | $ | 220,838 | $ | 79,067 | $ | 89,109 | |||||
Weighted-average number of common shares outstanding | 236,666,375 | 237,758,408 | 233,633,058 | ||||||||
Net income attributable to common shareholders - per common share basic | $ | 0.93 | $ | 0.33 | $ | 0.38 |
DILUTED: | |||||||||||
Net income attributable to common shareholders - basic | $ | 220,838 | $ | 79,067 | $ | 89,109 | |||||
Impact of assumed conversions | 2,528 | 147 | (159 | ) | |||||||
Net income attributable to common shareholders | $ | 223,366 | $ | 79,214 | $ | 88,950 | |||||
Weighted-average common shares outstanding - basic | 236,666,375 | 237,758,408 | 233,633,058 | ||||||||
Effect of dilutive securities: | |||||||||||
Unvested share-based payment awards and options | 528,495 | 86,285 | 230,352 | ||||||||
Operating Partnership Units | 3,616,120 | 3,693,144 | 3,815,621 | ||||||||
Weighted-average common shares outstanding - diluted | 240,810,990 | 241,537,837 | 237,679,031 | ||||||||
Net income attributable to common shareholders - per common share diluted | $ | 0.93 | $ | 0.33 | $ | 0.37 |
(4) | Investments in Real Estate |
2018 | 2017 | |||||||
Real estate, at cost: | ||||||||
Buildings and building improvements | $ | 2,746,446 | $ | 3,476,022 | ||||
Land, land estates and land improvements | 341,848 | 456,134 | ||||||
Fixtures and equipment | — | 84 | ||||||
Construction in progress | 1,840 | 4,219 | ||||||
Real estate intangibles: | ||||||||
In-place lease values | 331,607 | 461,624 | ||||||
Tenant relationships | 54,662 | 97,223 | ||||||
Above-market leases | 33,343 | 40,244 | ||||||
3,509,746 | 4,535,550 | |||||||
Accumulated depreciation and amortization(1) | (954,087 | ) | (1,225,650 | ) | ||||
Real estate, net | $ | 2,555,659 | $ | 3,309,900 |
(1) | Includes accumulated amortization of real estate intangible assets of $231,443 and $334,681 in 2018 and 2017, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $24,021 in 2019, $21,442 in 2020, $19,501 in 2021, $17,448 in 2022 and $17,065 in 2023. |
Real Estate Intangibles | |||||||||||||||||||||
Property Type | Location | Acquisition Date | Initial Cost Basis | Lease Expiration | Land and Land Estate | Building and Improvements | Lease in-place Value Intangible | Below Market Lease Intangible | |||||||||||||
Industrial | Olive Branch, MS | April 2018 | $ | 44,090 | 07/2029 | $ | 1,958 | $ | 38,687 | $ | 3,445 | $ | — | ||||||||
Industrial | Olive Branch, MS | April 2018 | 48,575 | 06/2021 | 2,500 | 42,538 | 5,151 | (1,614 | ) | ||||||||||||
Industrial | Edwardsville, IL | June 2018 | 44,178 | 05/2030 | 3,649 | 41,292 | 3,467 | (4,230 | ) | ||||||||||||
Industrial | Spartanburg, SC | August 2018 | 27,632 | 07/2024 | 1,447 | 23,744 | 2,441 | — | |||||||||||||
Industrial | Pasadena, TX | August 2018 | 23,868 | 08/2023 | 4,057 | 17,810 | 2,001 | — | |||||||||||||
Industrial | Carrollton, TX | September 2018 | 19,564 | 12/2033 | 3,228 | 15,766 | 1,247 | (677 | ) | ||||||||||||
Industrial | Goodyear, AZ | November 2018 | 41,372 | 04/2026 | 5,247 | 36,115 | 2,014 | (2,004 | ) | ||||||||||||
Industrial | Chester, VA | December 2018 | 66,311 | 06/2030 | 8,544 | 53,067 | 6,832 | (2,132 | ) | ||||||||||||
$ | 315,590 | $ | 30,630 | $ | 269,019 | $ | 26,598 | $ | (10,657 | ) | |||||||||||
Weighted-average life of intangible assets (years) | 8.4 | 9.4 |
Real Estate Intangibles | |||||||||||||||||||||
Property Type | Location | Acquisition Date | Initial Cost Basis | Lease Expiration | Land and Land Estate | Building and Improvements | Lease in-place Value Intangible | Below Market Lease Intangible | |||||||||||||
Office | Lake Jackson, TX(1) | January 2017 | $ | 70,401 | 10/2036 | $ | 3,078 | $ | 67,323 | $ | — | $ | — | ||||||||
Industrial | New Century, KS | February 2017 | 12,056 | 01/2027 | — | 13,198 | 1,648 | (2,790 | ) | ||||||||||||
Industrial | Lebanon, IN | February 2017 | 36,194 | 01/2024 | 2,100 | 29,443 | 4,651 | — | |||||||||||||
Office | Charlotte, NC(2) | April 2017 | 61,339 | 04/2032 | 3,771 | 47,064 | 10,504 | — | |||||||||||||
Industrial | Cleveland, TN | May 2017 | 34,400 | 03/2024 | 1,871 | 29,743 | 2,786 | — | |||||||||||||
Industrial | Grand Prairie, TX | June 2017 | 24,317 | 03/2037 | 3,166 | 17,985 | 3,166 | — | |||||||||||||
Industrial | San Antonio, TX | June 2017 | 45,507 | 04/2027 | 1,311 | 36,644 | 7,552 | — | |||||||||||||
Industrial | Opelika, AL | July 2017 | 37,269 | 05/2042 | 134 | 33,183 | 3,952 | — | |||||||||||||
Industrial | McDonough, GA | August 2017 | 66,700 | 01/2028 | 5,441 | 52,762 | 8,497 | — | |||||||||||||
Industrial | Byhalia, MS | September 2017 | 36,590 | 09/2027 | 1,751 | 31,236 | 3,603 | — | |||||||||||||
Industrial | Jackson, TN | September 2017 | 57,920 | 10/2027 | 1,454 | 49,026 | 7,440 | — | |||||||||||||
Industrial | Smyrna, TN | September 2017 | 104,890 | 04/2027 | 1,793 | 93,940 | 9,157 | — | |||||||||||||
Industrial | Lafayette, IN | October 2017 | 17,450 | 09/2024 | 662 | 15,578 | 1,210 | — | |||||||||||||
Industrial | Romulus, MI | November 2017 | 38,893 | 08/2032 | 2,438 | 33,786 | 2,669 | — | |||||||||||||
Industrial | Warren, MI | November 2017 | 46,955 | 10/2032 | 972 | 42,521 | 3,462 | — | |||||||||||||
Industrial | Winchester, VA | December 2017 | 36,700 | 12/2031 | 1,988 | 32,501 | 2,211 | — | |||||||||||||
$ | 727,581 | $ | 31,930 | $ | 625,933 | $ | 72,508 | $ | (2,790 | ) | |||||||||||
Weighted-average life of intangible assets (years) | 12.2 | 14.9 |
(1) | Completed the construction of the final building of a four-building project. Initial cost basis excludes developer partner payout of $7,951. |
(2) | Sold to newly-formed joint venture in 2018. See note 7. |
(5) | Dispositions and Impairment |
December 31, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Real estate, at cost | $ | 63,639 | $ | 2,827 | |||
Real estate, intangible assets | 14,498 | — | |||||
Accumulated depreciation and amortization | (16,873 | ) | — | ||||
Rent receivable - deferred | 2,439 | — | |||||
Other | 165 | — | |||||
$ | 63,868 | $ | 2,827 | ||||
Liabilities: | |||||||
Other | $ | 386 | $ | — | |||
$ | 386 | $ | — |
(6) | Fair Value Measurements |
Fair Value Measurements Using | |||||||||||||||
Description | 2018 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Interest rate swap assets | $ | 76 | $ | — | $ | 76 | $ | — | |||||||
Impaired real estate assets* | $ | 35,036 | $ | — | $ | — | $ | 35,036 |
Fair Value Measurements Using | |||||||||||||||
Description | 2017 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Interest rate swap assets | $ | 1,065 | $ | — | $ | 1,065 | $ | — | |||||||
Impaired real estate assets* | $ | 7,829 | $ | — | $ | — | $ | 7,829 |
As of December 31, 2018 | As of December 31, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Liabilities | |||||||||||||||
Debt | $ | 1,492,483 | $ | 1,409,773 | $ | 2,068,867 | $ | 2,013,226 |
(7) | Investment in and Advances to Non-Consolidated Entities |
Percentage Ownership at | Investment Balance as of | |||||||||
Investment | December 31, 2018 | December 31, 2018 | December 31, 2017 | |||||||
NNN JV | (1) | 20% | $ | 53,144 | $ | — | ||||
Etna Park 70 LLC | (2) | 90% | 4,774 | 5,831 | ||||||
Other | (3) | 15% to 25% | 8,265 | 11,645 | ||||||
$ | 66,183 | $ | 17,476 |
(1) | During 2018, the Company disposed of 21 office assets to NNN JV for an aggregate gross disposition price of $725,800 and acquired a 20% interest in NNN JV. Two of the 21 properties, with a combined estimated fair value of $45,653, were contributed to NNN JV along with cash of $8,053. The Company recognized a gain of $14,645 in connection with the contribution of the two office assets to NNN JV, and in addition, NNN JV assumed an aggregate of $103,400 of non-recourse mortgage debt in the transaction. NNN JV obtained an aggregate of $362,800 of non-recourse mortgage financing which bears interest at LIBOR plus 200 basis points and has an initial term of three years but can be extended for two additional terms of one-year each. There is a rate increase of 15 basis points upon each extension. NNN JV entered into interest rate agreements which cap the LIBOR component of the $362,800 mortgage financing at 4.0% for two years. As of December 31, 2018, NNN JV had total assets of $757,811 and total liabilities of $492,091. The properties are encumbered by an aggregate of $466,200 of non-recourse mortgage debt. |
(2) | Joint venture formed in 2017 with a developer entity to acquire a 151-acre parcel of developable land and pursue industrial build-to-suit opportunities. The developer entity has substantive participation rights. In December 2018, the parcel was subdivided and the Company received a distribution of an ownership interest in a 57-acre parcel with a historical cost of $3,008. The Company acquired control of the parcel via the purchase of the Company's joint venture partners' interest. |
(3) | At December 31, 2018, represents two joint venture investments, which own single-tenant, net-leased assets. During 2017, the Company received $49,085 in full satisfaction of a construction financing arrangement that the Company previously provided to one of the joint ventures. |
(8) | Mortgages and Notes Payable |
December 31, 2018 | December 31, 2017 | ||||||
Mortgages and notes payable | $ | 575,514 | $ | 697,068 | |||
Unamortized debt issuance costs | (5,094 | ) | (7,258 | ) | |||
$ | 570,420 | $ | 689,810 |
Maturity Date | Interest Rate | ||
$505,000 Revolving Credit Facility(1) | August 2019 | LIBOR + 1.00% | |
$300,000 Term Loan(2)(3) | January 2021 | LIBOR + 1.10% |
(1) | Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2018, the revolving credit facility had no borrowings outstanding and availability of $505,000, subject to covenant compliance. See note 20. |
(2) | The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company had aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings. During 2018, the Company satisfied in full the $300,000 term loan due in 2020. |
(3) | The aggregate unamortized debt issuance costs for the term loan was $1,267 and $1,804 as of December 31, 2018 and 2017, respectively. |
Year ending December 31, | Total | |||
2019 | $ | 101,887 | ||
2020 | 55,143 | |||
2021 | 340,465 | |||
2022 | 22,120 | |||
2023 | 23,998 | |||
Thereafter | 331,901 | |||
875,514 | ||||
Unamortized debt issuance costs | (6,361 | ) | ||
$ | 869,153 |
(9) | Senior Notes, Convertible Notes and Trust Preferred Securities |
Issue Date | December 31, 2018 | December 31, 2017 | Interest Rate | Maturity Date | Issue Price | |||||||||||
May 2014 | $ | 250,000 | $ | 250,000 | 4.40 | % | June 2024 | 99.883 | % | |||||||
June 2013 | 250,000 | 250,000 | 4.25 | % | June 2023 | 99.026 | % | |||||||||
500,000 | 500,000 | |||||||||||||||
Unamortized debt discount | (1,235 | ) | (1,507 | ) | ||||||||||||
Unamortized debt issuance cost | (2,731 | ) | (3,295 | ) | ||||||||||||
$ | 496,034 | $ | 495,198 |
Year ending December 31, | Total | |||
2019 | $ | — | ||
2020 | — | |||
2021 | — | |||
2022 | — | |||
2023 | 250,000 | |||
Thereafter | 379,120 | |||
629,120 | ||||
Unamortized debt discounts | (1,235 | ) | ||
Unamortized debt issuance costs | (4,555 | ) | ||
$ | 623,330 |
(10) | Derivatives and Hedging Activities |
Interest Rate Derivative | Number of Instruments | Notional |
Interest Rate Swaps | 5 | $255,000 |
As of December 31, 2018 | As of December 31, 2017 | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments: | |||||||||||
Interest Rate Swap Asset | Other Assets | $ | 76 | Other Assets | $ | 1,065 |
Derivatives in Cash Flow | Amount of Income Recognized in OCI on Derivative (Effective Portion) December 31, | Location of Income (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of (Income) Loss Reclassified from Accumulated OCI into Income (Effective Portion) December 31, | ||||||||||||||||
Hedging Relationships | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Interest Rate Swap | $ | 597 | $ | 1,168 | Interest expense | $ | (1,586 | ) | $ | 930 |
Year ending December 31, | Total | |||
2019 | $ | 270,557 | ||
2020 | 253,660 | |||
2021 | 233,192 | |||
2022 | 212,893 | |||
2023 | 211,387 | |||
Thereafter | 1,619,848 | |||
$ | 2,801,537 |
Year ending December 31, | Total | |||
2019 | $ | 3,826 | ||
2020 | 3,827 | |||
2021 | 3,769 | |||
2022 | 3,834 | |||
2023 | 4,008 | |||
Thereafter | 28,326 | |||
$ | 47,590 |
(12) | Concentration of Risk |
(13) | Equity |
Twelve months ended December 31, | ||||||||
2018 | 2017 | |||||||
Balance at beginning of period | $ | 1,065 | $ | (1,033 | ) | |||
Other comprehensive income before reclassifications | 597 | 1,168 | ||||||
Amounts of (income) loss reclassified from accumulated other comprehensive income (loss) to interest expense | (1,586 | ) | 930 | |||||
Balance at end of period | $ | 76 | $ | 1,065 |
Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income attributable to Lexington Realty Trust shareholders | $ | 227,415 | $ | 85,583 | $ | 95,624 | |||||
Transfers from noncontrolling interests: | |||||||||||
Increase in additional paid-in-capital for redemption of noncontrolling OP units | 189 | 584 | 210 | ||||||||
Change from net income attributable to shareholders and transfers from noncontrolling interests | $ | 227,604 | $ | 86,167 | $ | 95,834 |
(14) | Benefit Plans |
2010 Options | 2009 Options | 2008 Options | ||||||||||
Weighted-average fair value of options granted | $ | 1.94 | $ | 2.19 | $ | 1.24 | ||||||
Weighted-average risk-free interest rate | 2.54 | % | 3.29 | % | 1.33 | % | ||||||
Weighted-average expected option lives (in years) | 6.50 | 6.70 | 3.60 | |||||||||
Weighted-average expected volatility | 49.00 | % | 59.08 | % | 59.94 | % | ||||||
Weighted-average expected dividend yield | 7.40 | % | 6.26 | % | 14.40 | % |
Number of Shares | Weighted-Average Exercise Price Per Share | |||||
Balance at December 31, 2016 | 406,241 | $ | 6.78 | |||
Exercised | (271,451 | ) | 6.48 | |||
Balance at December 31, 2017 | 134,790 | 7.39 | ||||
Exercised | (16,390 | ) | 6.99 | |||
Balance at December 31, 2018 | 118,400 | $ | 7.44 |
Number of Shares | Weighted-Average Grant-Date Fair Value Per Share | |||||
Balance at December 31, 2016 | 3,151,310 | $ | 8.09 | |||
Granted | 777,900 | 6.83 | ||||
Vested | (161,912 | ) | 8.90 | |||
Balance at December 31, 2017 | 3,767,298 | 7.79 | ||||
Granted | 899,614 | 6.55 | ||||
Vested | (618,383 | ) | 9.70 | |||
Forfeited | (593,452 | ) | 6.59 | |||
Balance at December 31, 2018 | 3,455,077 | $ | 7.34 |
2018 | 2017 | ||
Performance Shares(1) | |||
Shares issued: | |||
Index - 1Q | 331,025 | 106,706 | |
Peer - 1Q | 331,019 | 106,705 | |
Index - 2Q | 163,466 | ||
Peer - 2Q | 163,463 | ||
Grant date fair value per share:(2) | |||
Index - 1Q | $5.81 | $6.82 | |
Peer - 1Q | $5.37 | $6.34 | |
Index - 2Q | $4.05 | ||
Peer - 2Q | $4.27 | ||
Non-Vested Common Shares:(3) | |||
Shares issued | 237,570 | 237,560 | |
Grant date fair value | $2,190 | $2,551 |
(1) | The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During 2018, 116,926 of the 642,029 performance shares issued in 2015 vested. |
(2) | The fair value of grants was determined at the grant date using a Monte Carlo simulation model. |
(3) | The shares vest ratably over a three-year service period. |
(15) | Related Party Transactions |
(16) | Income Taxes |
2018 | 2017 | 2016 | |||||||||
Current: | |||||||||||
Federal | $ | (60 | ) | $ | (107 | ) | $ | (140 | ) | ||
State and local | (1,668 | ) | (1,810 | ) | (1,299 | ) | |||||
NOL utilized | — | — | 59 | ||||||||
Deferred: | |||||||||||
Federal | — | — | (44 | ) | |||||||
State and local | — | — | (15 | ) | |||||||
$ | (1,728 | ) | $ | (1,917 | ) | $ | (1,439 | ) |
2018 | 2017 | 2016 | |||||||||
Federal provision at statutory tax rate (21% for 2018 and 34% for 2017 and 2016) | $ | (65 | ) | $ | (182 | ) | $ | (154 | ) | ||
State and local taxes, net of federal benefit | (11 | ) | (40 | ) | (30 | ) | |||||
Other | (1,652 | ) | (1,695 | ) | (1,255 | ) | |||||
$ | (1,728 | ) | $ | (1,917 | ) | $ | (1,439 | ) |
2018 | 2017 | 2016 | |||||||||
Total dividends per share | $ | 0.710 | $ | 0.700 | $ | 0.685 | |||||
Ordinary income | 87.89 | % | 59.93 | % | 96.73 | % | |||||
Qualifying dividend | 0.14 | % | 0.15 | % | 0.22 | % | |||||
Capital gain | — | — | — | ||||||||
Return of capital | 11.97 | % | 39.92 | % | 3.05 | % | |||||
100.00 | % | 100.00 | % | 100.00 | % |
2018 | 2017 | 2016 | |||||||||
Total dividends per share | $ | 3.25 | $ | 3.25 | $ | 3.25 | |||||
Ordinary income | 99.84 | % | 99.75 | % | 99.78 | % | |||||
Qualifying dividend | 0.16 | % | 0.25 | % | 0.22 | ||||||
Capital gain | — | — | — | ||||||||
Return of capital | — | — | — | ||||||||
100.00 | % | 100.00 | % | 100.00 | % |
(17) | Commitments and Contingencies |
(18) | Supplemental Disclosure of Statement of Cash Flow Information |
2018 | 2017 | 2016 | |||||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents at beginning of period | $ | 107,762 | $ | 86,637 | $ | 93,249 | |||||
Restricted cash at beginning of period | 4,394 | 31,142 | 10,637 | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ | 112,156 | $ | 117,779 | $ | 103,886 | |||||
Cash and cash equivalents at end of period | $ | 168,750 | $ | 107,762 | $ | 86,637 | |||||
Restricted cash at end of period | 8,497 | 4,394 | 31,142 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 177,247 | $ | 112,156 | $ | 117,779 |
3/31/2018 | 6/30/2018 | 9/30/2018 | 12/31/2018 | ||||||||||||
Total gross revenues | $ | 102,637 | $ | 105,493 | $ | 99,958 | $ | 87,251 | |||||||
Net income (loss) | $ | (14,823 | ) | $ | (795 | ) | $ | 220,850 | $ | 25,674 | |||||
Net income (loss) attributable to common shareholders | $ | (15,957 | ) | $ | (3,327 | ) | $ | 216,190 | $ | 23,796 | |||||
Net income (loss) attributable to common shareholders - basic per share | $ | (0.07 | ) | $ | (0.01 | ) | $ | 0.91 | $ | 0.10 | |||||
Net income (loss) attributable to common shareholders - diluted per share | $ | (0.07 | ) | $ | (0.01 | ) | $ | 0.90 | $ | 0.10 |
3/31/2017 | 6/30/2017 | 9/30/2017 | 12/31/2017 | ||||||||||||
Total gross revenues | $ | 96,099 | $ | 95,684 | $ | 97,689 | $ | 102,169 | |||||||
Net income | $ | 42,220 | $ | 7,365 | $ | 5,596 | $ | 31,448 | |||||||
Net income attributable to common shareholders | $ | 40,397 | $ | 5,519 | $ | 3,916 | $ | 29,235 | |||||||
Net income attributable to common shareholders - basic per share | $ | 0.17 | $ | 0.02 | $ | 0.02 | $ | 0.12 | |||||||
Net income attributable to common shareholders - diluted per share | $ | 0.17 | $ | 0.02 | $ | 0.02 | $ | 0.12 |
(20) | Subsequent Events |
– | sold a consolidated property for $79,300; |
– | acquired two industrial properties for an aggregate purchase price of approximately $58,000; |
– | repurchased and retired 441,581 common shares at an average price of $8.13 per common share; |
– | replaced the Company's revolving credit facility and the 2021 term loan with a new revolving credit facility and the continuation of the 2021 term loan, which extended the maturity of the revolving credit facility to February 2023 and reduced the applicable margin rates on the revolving credit facility and 2021 term loan; |
– | entered into an agreement to purchase upon completion the expansion of the Company's property in Richland, Washington for $67,000; and |
– | declared a quarterly common share dividend of $0.1025 per common share. |
Description | Location | Encumbrances | Land and Land Estates | Buildings and Improvements | Total | Accumulated Depreciation and Amortization(1) | Date Acquired | Date Constructed | |||||||||||
Single-tenant properties | |||||||||||||||||||
Industrial | Anniston, AL | $ | — | $ | 1,201 | $ | 16,771 | $ | 17,972 | $ | 3,159 | Dec-14 | — | ||||||
Industrial | Moody, AL | — | 654 | 9,943 | 10,597 | 7,757 | Feb-04 | — | |||||||||||
Industrial | Opelika, AL | — | 134 | 31,734 | 31,868 | 1,952 | Jul-17 | 2017 | |||||||||||
Industrial | Goodyear, AZ | — | 5,247 | 36,115 | 41,362 | 138 | Nov-18 | — | |||||||||||
Industrial | Orlando, FL | — | 1,030 | 10,869 | 11,899 | 3,678 | Dec-06 | — | |||||||||||
Industrial | Tampa, FL | — | 2,160 | 8,526 | 10,686 | 6,723 | Jul-88 | — | |||||||||||
Industrial | Lavonia, GA | 6,647 | 171 | 7,657 | 7,828 | 1,371 | Sep-12 | — | |||||||||||
Industrial | McDonough, GA | — | 5,441 | 52,762 | 58,203 | 3,101 | Aug-17 | — | |||||||||||
Industrial | McDonough, GA | — | 2,463 | 24,811 | 27,274 | 7,820 | Dec-06 | — | |||||||||||
Industrial | Thomson, GA | — | 909 | 7,746 | 8,655 | 1,368 | May-15 | 2015 | |||||||||||
Industrial | Edwardsville, IL | — | 4,593 | 34,362 | 38,955 | 2,838 | Dec-16 | — | |||||||||||
Industrial | Edwardsville, IL | — | 3,649 | 41,310 | 44,959 | 932 | Jun-18 | — | |||||||||||
Industrial | Rantoul, IL | — | 1,304 | 32,562 | 33,866 | 4,473 | Jan-14 | 2014 | |||||||||||
Industrial | Rockford, IL | — | 371 | 2,619 | 2,990 | 861 | Dec-06 | — | |||||||||||
Industrial | Rockford, IL | — | 509 | 5,289 | 5,798 | 1,740 | Dec-06 | — | |||||||||||
Industrial | Romeoville, IL | — | 7,524 | 40,167 | 47,691 | 3,458 | Dec-16 | — | |||||||||||
Industrial | Lafayette, IN | — | 662 | 15,578 | 16,240 | 1,000 | Oct-17 | — | |||||||||||
Industrial | Lebanon, IN | — | 2,100 | 29,443 | 31,543 | 2,317 | Feb-17 | — | |||||||||||
Industrial | New Century, KS | — | — | 13,198 | 13,198 | 1,079 | Feb-17 | — | |||||||||||
Industrial | Dry Ridge, KY | — | 560 | 12,553 | 13,113 | 5,889 | Jun-05 | — | |||||||||||
Industrial | Elizabethtown, KY | — | 352 | 4,862 | 5,214 | 2,281 | Jun-05 | — | |||||||||||
Industrial | Elizabethtown, KY | — | 890 | 26,868 | 27,758 | 12,605 | Jun-05 | — | |||||||||||
Industrial | Hopkinsville, KY | — | 631 | 16,154 | 16,785 | 8,063 | Jun-05 | — | |||||||||||
Industrial | Owensboro, KY | — | 393 | 11,956 | 12,349 | 6,474 | Jun-05 | — | |||||||||||
Industrial | Owensboro, KY | — | 819 | 2,439 | 3,258 | 1,092 | Dec-06 | — | |||||||||||
Industrial | Shreveport, LA | — | 860 | 21,840 | 22,700 | 6,438 | Mar-07 | — | |||||||||||
Industrial | Shreveport, LA | — | 1,078 | 10,134 | 11,212 | 2,423 | Jun-12 | 2012 | |||||||||||
Industrial | North Berwick, ME | 381 | 1,383 | 35,659 | 37,042 | 10,660 | Dec-06 | — | |||||||||||
Industrial | Detroit, MI | — | 1,133 | 25,009 | 26,142 | 3,903 | Jan-16 | — | |||||||||||
Industrial | Kalamazoo, MI | — | 1,942 | 14,169 | 16,111 | 3,606 | Sep-12 | — | |||||||||||
Industrial | Marshall, MI | — | 143 | 4,302 | 4,445 | 2,884 | Sep-12 | — | |||||||||||
Industrial | Plymouth, MI | — | 2,296 | 15,795 | 18,091 | 6,497 | Jun-07 | — | |||||||||||
Industrial | Romulus, MI | — | 2,438 | 33,786 | 36,224 | 2,069 | Nov-17 | — | |||||||||||
Industrial | Warren, MI | 25,850 | 972 | 42,521 | 43,493 | 2,073 | Nov-17 | — | |||||||||||
Industrial | Minneapolis, MN | — | 1,886 | 1,922 | 3,808 | 381 | Sep-12 | — | |||||||||||
Industrial | Byhalia, MS | — | 1,006 | 35,795 | 36,801 | 6,241 | May-11 | 2011 | |||||||||||
Industrial | Byhalia, MS | — | 1,751 | 31,236 | 32,987 | 2,274 | Sep-17 | — | |||||||||||
Industrial | Canton, MS | — | 5,077 | 71,289 | 76,366 | 12,950 | Mar-15 | — | |||||||||||
Industrial | Olive Branch, MS | — | 2,500 | 42,538 | 45,038 | 1,471 | Apr-18 | — | |||||||||||
Industrial | Olive Branch, MS | — | 198 | 10,276 | 10,474 | 7,539 | Dec-04 | — | |||||||||||
Industrial | Olive Branch, MS | — | 1,958 | 38,687 | 40,645 | 1,342 | Apr-18 | — | |||||||||||
Industrial | Lumberton, NC | — | 405 | 12,049 | 12,454 | 4,651 | Dec-06 | — | |||||||||||
Industrial | Shelby, NC | — | 1,421 | 18,862 | 20,283 | 5,300 | Jun-11 | 2011 | |||||||||||
Industrial | Statesville, NC | — | 891 | 16,771 | 17,662 | 5,751 | Dec-06 | — | |||||||||||
Industrial | Durham, NH | — | 3,464 | 18,094 | 21,558 | 7,002 | Jun-07 | — | |||||||||||
Industrial | North Las Vegas, NV | — | 3,244 | 21,732 | 24,976 | 2,949 | Jul-13 | 2014 | |||||||||||
Industrial | Erwin, NY | — | 1,648 | 12,514 | 14,162 | 2,977 | Sep-12 | — | |||||||||||
Industrial | Long Island City, NY | 39,994 | — | 42,759 | 42,759 | 16,584 | Mar-13 | 2013 | |||||||||||
Industrial | Chillicothe, OH | — | 735 | 9,021 | 9,756 | 3,076 | Oct-11 | — | |||||||||||
Industrial | Cincinnati, OH | — | 1,049 | 8,784 | 9,833 | 3,075 | Dec-06 | — | |||||||||||
Industrial | Columbus, OH | — | 1,990 | 10,767 | 12,757 | 4,194 | Dec-06 | — | |||||||||||
Industrial | Glenwillow, OH | — | 2,228 | 24,530 | 26,758 | 7,774 | Dec-06 | — | |||||||||||
Industrial | Hebron, OH | — | 1,063 | 4,947 | 6,010 | 2,013 | Dec-97 | — | |||||||||||
Industrial | Hebron, OH | — | 1,681 | 8,179 | 9,860 | 3,606 | Dec-01 | — | |||||||||||
Industrial | Streetsboro, OH | 16,565 | 2,441 | 25,282 | 27,723 | 9,629 | Jun-07 | — | |||||||||||
Industrial | Wilsonville, OR | — | 6,815 | 32,380 | 39,195 | 3,188 | Sep-16 | — | |||||||||||
Industrial | Bristol, PA | — | 2,508 | 15,863 | 18,371 | 7,694 | Mar-98 | — |
Description | Location | Encumbrances | Land and Land Estates | Buildings and Improvements | Total | Accumulated Depreciation and Amortization(1) | Date Acquired | Date Constructed | |||||||||||
Industrial | Chester, SC | 6,569 | 1,629 | 8,470 | 10,099 | 1,959 | Sep-12 | — | |||||||||||
Industrial | Laurens, SC | — | 5,552 | 21,908 | 27,460 | 7,834 | Jun-07 | — | |||||||||||
Industrial | Spartanburg,SC | — | 1,447 | 23,744 | 25,191 | 426 | Aug-18 | — | |||||||||||
Industrial | Cleveland, TN | — | 1,871 | 29,743 | 31,614 | 2,163 | May-17 | — | |||||||||||
Industrial | Crossville, TN | — | 545 | 6,999 | 7,544 | 4,571 | Jan-06 | — | |||||||||||
Industrial | Franklin, TN | — | — | 5,673 | 5,673 | 3,057 | Sep-12 | — | |||||||||||
Industrial | Jackson, TN | — | 1,454 | 49,026 | 50,480 | 2,624 | Sep-17 | — | |||||||||||
Industrial | Lewisburg, TN | — | 173 | 10,865 | 11,038 | 1,583 | May-14 | — | |||||||||||
Industrial | Memphis, TN | — | 1,054 | 11,538 | 12,592 | 11,487 | Feb-88 | — | |||||||||||
Industrial | Millington, TN | — | 723 | 19,383 | 20,106 | 12,951 | Apr-05 | — | |||||||||||
Industrial | Smyrna, TN | — | 1,793 | 93,940 | 95,733 | 5,154 | Sep-17 | — | |||||||||||
Industrial | Arlington, TX | — | 589 | 7,739 | 8,328 | 1,604 | Sep-12 | — | |||||||||||
Industrial | Brookshire, TX | — | 2,388 | 16,614 | 19,002 | 2,915 | Mar-15 | — | |||||||||||
Industrial | Carrollton, TX | — | 3,228 | 15,769 | 18,997 | 330 | Sep-18 | — | |||||||||||
Industrial | Grand Prairie, TX | — | 3,166 | 17,985 | 21,151 | 1,170 | Jun-17 | — | |||||||||||
Industrial | Houston, TX | — | 4,674 | 19,540 | 24,214 | 8,016 | Mar-15 | — | |||||||||||
Industrial | Houston, TX | — | 15,055 | 57,949 | 73,004 | 10,371 | Mar-13 | — | |||||||||||
Industrial | Missouri City, TX | — | 14,555 | 5,895 | 20,450 | 5,615 | Apr-12 | — | |||||||||||
Industrial | Pasadena, TX | — | 4,057 | 17,810 | 21,867 | 271 | Aug-18 | — | |||||||||||
Industrial | San Antonio, TX | — | 1,311 | 36,644 | 37,955 | 2,364 | Jun-17 | — | |||||||||||
Industrial | Chester, VA | — | 8,544 | 53,067 | 61,611 | 220 | Dec-18 | — | |||||||||||
Industrial | Winchester, VA | — | 1,988 | 32,536 | 34,524 | 1,392 | Dec-17 | — | |||||||||||
Industrial | Winchester, VA | — | 3,823 | 12,276 | 16,099 | 4,311 | Jun-07 | — | |||||||||||
Industrial | Bingen, WA | — | — | 18,075 | 18,075 | 4,269 | May-14 | 2014 | |||||||||||
Industrial | Richland, WA | 110,000 | 1,293 | 126,947 | 128,240 | 16,632 | Nov-15 | — | |||||||||||
Industrial | Oak Creek, WI | — | 3,015 | 15,300 | 18,315 | 2,352 | Jul-15 | 2015 | |||||||||||
Multi-tenant/vacant properties | |||||||||||||||||||
Industrial | Plymouth, IN | — | 254 | 8,101 | 8,355 | 1,816 | Sep-12 | — | |||||||||||
Industrial | Henderson, NC | — | 1,488 | 5,953 | 7,441 | 2,549 | Nov-01 | — | |||||||||||
Industrial | Duncan, SC | — | 884 | 8,626 | 9,510 | 2,604 | Jun-07 | — | |||||||||||
Industrial | Antioch, TN | — | 3,847 | 12,659 | 16,506 | 3,479 | May-07 | — | |||||||||||
Industrial | Memphis, TN | — | — | — | — | — | Dec-06 | — | |||||||||||
Single-tenant properties | |||||||||||||||||||
Office | Glendale, AZ | — | 9,418 | 8,394 | 17,812 | 4,229 | Sep-12 | — | |||||||||||
Office | Tempe, AZ | — | — | 13,086 | 13,086 | 3,035 | Sep-12 | — | |||||||||||
Office | Tucson, AZ | — | 681 | 4,037 | 4,718 | 1,103 | Sep-12 | — | |||||||||||
Office | Palo Alto, CA | 32,188 | 12,398 | 16,977 | 29,375 | 23,153 | Dec-06 | — | |||||||||||
Office | Boca Raton, FL | 18,785 | 4,290 | 17,160 | 21,450 | 6,811 | Feb-03 | — | |||||||||||
Office | Orlando, FL | — | 3,538 | 9,353 | 12,891 | 6,908 | Jan-07 | — | |||||||||||
Office | McDonough, GA | — | 693 | 6,405 | 7,098 | 1,601 | Sep-12 | — | |||||||||||
Office | Meridian, ID | — | 2,255 | 8,144 | 10,399 | 2,555 | Sep-12 | — | |||||||||||
Office | Columbus, IN | 7,301 | 235 | 45,729 | 45,964 | 37,145 | Dec-06 | — | |||||||||||
Office | Indianapolis, IN | — | 1,700 | 18,719 | 20,419 | 14,193 | Apr-05 | — | |||||||||||
Office | Lenexa, KS | 8,153 | 2,828 | 6,075 | 8,903 | 1,827 | Sep-12 | — | |||||||||||
Office | Lenexa, KS | 31,698 | 6,909 | 41,966 | 48,875 | 15,556 | Jul-08 | — | |||||||||||
Office | Baton Rouge, LA | — | 1,252 | 11,926 | 13,178 | 5,187 | May-07 | — | |||||||||||
Office | Oakland, ME | 8,138 | 551 | 8,774 | 9,325 | 2,282 | Sep-12 | — | |||||||||||
Office | Auburn Hills, MI | — | 4,416 | 30,012 | 34,428 | 5,573 | Mar-15 | — | |||||||||||
Office | Kansas City, MO | 15,272 | 1,525 | 7,691 | 9,216 | 209 | Jun-07 | — | |||||||||||
Office | Pascagoula, MS | — | 618 | 3,677 | 4,295 | 1,009 | Sep-12 | — | |||||||||||
Office | Wall, NJ | 8,847 | 8,985 | 26,961 | 35,946 | 15,722 | Jan-04 | — | |||||||||||
Office | Whippany, NJ | 12,156 | 4,063 | 19,711 | 23,774 | 9,828 | Nov-06 | — | |||||||||||
Office | Redmond, OR | — | 2,064 | 8,316 | 10,380 | 2,272 | Sep-12 | — | |||||||||||
Office | Philadelphia, PA | — | 13,209 | 61,011 | 74,220 | 43,083 | Jun-05 | — | |||||||||||
Office | Florence, SC | — | 774 | 3,629 | 4,403 | 727 | Feb-12 | 2012 | |||||||||||
Office | Fort Mill, SC | — | 3,601 | 16,306 | 19,907 | 6,290 | Dec-02 | — | |||||||||||
Office | Fort Mill, SC | — | 1,798 | 26,947 | 28,745 | 19,565 | Nov-04 | — | |||||||||||
Office | Knoxville, TN | — | 621 | 6,487 | 7,108 | 1,643 | Sep-12 | — |
Description | Location | Encumbrances | Land and Land Estates | Buildings and Improvements | Total | Accumulated Depreciation and Amortization(1) | Date Acquired | Date Constructed | |||||||||||
Office | Arlington, TX | — | 1,274 | 15,309 | 16,583 | 3,489 | Sep-12 | — | |||||||||||
Office | Houston, TX | — | 1,875 | 10,959 | 12,834 | 8,345 | Apr-05 | — | |||||||||||
Office | Lake Jackson, TX | 187,980 | 7,435 | 141,436 | 148,871 | 12,105 | Nov-16 | 2016/2017 | |||||||||||
Office | Mission, TX | — | 2,556 | 2,911 | 5,467 | 1,038 | Sep-12 | — | |||||||||||
Office | Westlake, TX | — | 2,361 | 26,631 | 28,992 | 13,421 | May-07 | — | |||||||||||
Office | Herndon, VA | — | 5,127 | 25,293 | 30,420 | 11,353 | Dec-99 | — | |||||||||||
Multi-tenant/vacant properties | |||||||||||||||||||
Office | Phoenix, AZ | — | 1,096 | 6,193 | 7,289 | 229 | Nov-01 | — | |||||||||||
Office | Overland Park, KS | 32,112 | 2,025 | 10,976 | 13,001 | 4,242 | Jun-07 | — | |||||||||||
Office | Charleston, SC | 6,878 | 1,189 | 9,419 | 10,608 | 4,651 | Nov-06 | — | |||||||||||
Office | Farmers Branch, TX | — | 3,984 | 32,842 | 36,826 | 14,111 | Jun-07 | — | |||||||||||
Office | Houston, TX | — | 800 | 27,667 | 28,467 | 21,686 | Apr-05 | — | |||||||||||
Single-tenant properties | — | ||||||||||||||||||
Other | Venice, FL | — | 4,696 | 11,753 | 16,449 | 9,071 | Jan-15 | — | |||||||||||
Other | Baltimore, MD | — | 4,605 | — | 4,605 | — | Dec-06 | — | |||||||||||
Other | Baltimore, MD | — | 5,000 | — | 5,000 | — | Dec-15 | — | |||||||||||
Other | Pataskala, OH | — | 3,605 | — | 3,605 | — | Dec-18 | — | |||||||||||
Other | Lawton, OK | — | 663 | 1,288 | 1,951 | 587 | Dec-06 | — | |||||||||||
Other | Paris, TN | — | 247 | 547 | 794 | 240 | Dec-06 | — | |||||||||||
Other | Danville, VA | — | 3,454 | — | 3,454 | — | Oct-13 | — | |||||||||||
Multi-tenant/vacant properties | |||||||||||||||||||
Other | Albany, GA | — | 455 | 1,206 | 1,661 | 17 | Oct-13 | 2013 | |||||||||||
Other | Honolulu, HI | — | 8,259 | 7,414 | 15,673 | 6,025 | Dec-06 | — | |||||||||||
Other | Watertown, NY | — | 270 | 2,333 | 2,603 | 52 | May-07 | — | |||||||||||
Other | Fairlea, WV | — | 79 | 216 | 295 | 4 | May-07 | — | |||||||||||
Construction in progress | — | — | — | 1,840 | — | — | — | ||||||||||||
Deferred loan costs, net | (5,094 | ) | |||||||||||||||||
$ | 570,420 | $ | 341,848 | $ | 2,746,446 | $ | 3,090,134 | $ | 722,644 |
Building and improvements | Up to 40 years |
Land estates | Up to 51 years |
Tenant improvements | Shorter of useful life or term of related lease |
2018 | 2017 | 2016 | |||||||||
Reconciliation of real estate, at cost: | |||||||||||
Balance at the beginning of year | $ | 3,936,459 | $ | 3,533,172 | $ | 3,789,711 | |||||
Additions during year | 310,207 | 676,355 | 291,004 | ||||||||
Properties sold and impaired during the year | (1,091,956 | ) | (270,241 | ) | (527,597 | ) | |||||
Other reclassifications | (64,576 | ) | (2,827 | ) | (19,946 | ) | |||||
Balance at end of year | $ | 3,090,134 | $ | 3,936,459 | $ | 3,533,172 | |||||
Reconciliation of accumulated depreciation and amortization: | |||||||||||
Balance at the beginning of year | $ | 890,969 | $ | 844,931 | $ | 812,207 | |||||
Depreciation and amortization expense | 136,571 | 139,493 | 128,384 | ||||||||
Accumulated depreciation and amortization of properties sold and impaired during year | (290,938 | ) | (93,455 | ) | (86,428 | ) | |||||
Other reclassifications | (13,958 | ) | — | (9,232 | ) | ||||||
Balance at end of year | $ | 722,644 | $ | 890,969 | $ | 844,931 |
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101.INS | — | XBRL Instance Document (2, 5) | ||
101.SCH | — | XBRL Taxonomy Extension Schema (2, 5) | ||
101.CAL | — | XBRL Taxonomy Extension Calculation Linkbase (2, 5) | ||
101.DEF | — | XBRL Taxonomy Extension Definition Linkbase Document (2, 5) | ||
101.LAB | — | XBRL Taxonomy Extension Label Linkbase Document (2, 5) | ||
101.PRE | — | XBRL Taxonomy Extension Presentation Linkbase Document (2, 5) |
(1) | Incorporated by reference. |
(2) | Filed herewith. |
(3) | This exhibit shall not be deemed “filed” for purposes of Section 11 or 12 of the Securities Act of 1933, as amended (the “Securities Act”), or Section 18 of the Securities Exchanges Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of those sections, and shall not be part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing or document. |
(4) | Management contract or compensatory plan or arrangement. |
(5) | Attached as Exhibit 101 to this Annual Report on Form 10-K are the following materials, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at December 31, 2018 and 2017; (ii) the Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016; (iii) the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018, 2017 and 2016; (iv) the Consolidated Statements of Changes in Equity for the years ended December 31, 2018, 2017 and 2016; (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016; and (vi) Notes to Consolidated Financial Statements, detailed tagged. |
Lexington Realty Trust | |||
Dated: | March 12, 2019 | By: | /s/ T. Wilson Eglin |
T. Wilson Eglin | |||
Chief Executive Officer | |||
Signature | Title |
/s/ E. Robert Roskind E. Robert Roskind | Chairman of the Board of Trustees of the Trust |
/s/ T. Wilson Eglin T. Wilson Eglin | Chief Executive Officer, President and Trustee of the Trust (principal executive officer) |
/s/ Patrick Carroll Patrick Carroll | Chief Financial Officer, Executive Vice President and Treasurer of the Trust (principal financial officer) |
/s/ Beth Boulerice Beth Boulerice | Executive Vice President and Chief Accounting Officer of the Trust (principal accounting officer) |
/s/ Richard S. Frary Richard S. Frary | Trustee of the Trust |
/s/ Lawrence L. Gray Lawrence L. Gray | Trustee of the Trust |
/s/ Jamie Handwerker Jamie Handwerker | Trustee of the Trust |
/s/ Claire A. Koeneman Claire A. Koeneman | Trustee of the Trust |
/s/ Howard Roth Howard Roth | Trustee of the Trust |
(i) | indicating an election to participate in such offering; |
(ii) | specifying the amount (expressed as a percentage) of such participant’s annual rate of regular basic salary be to contributed each pay period to the purchase of shares of Common Stock under the Plan; |
(iii) | specifying whether, with respect to shares purchased under the Plan, the participant wishes to participate in the Dividend Reinvestment Plan of the Company; and |
(iv) | containing such other provisions as the Committee may require. |
Original Application | Enrollment Date | |||
Change in Payroll Deduction Rate | ||||
Change of Beneficiary (ies) |
Name: (Please Print) | |||||
(First) | (Middle) | (Last) | |||
Relationship | |||||
(Address) |
Name: (Please Print) | |||||
(First) | (Middle) | (Last) | |||
Relationship | |||||
(Address) |
Name: (Please Print) | |||||
(First) | (Middle) | (Last) | |||
Relationship | |||||
(Address) |
Employee's Social Security Number: | |
Employee's Address: | |
Date: | ||
Signature of Employee | ||
Spouse's Signature (If beneficiary other than spouse) |
Name and Address of Participant: | |||
Signature: | |||
Date: |
Name and Address of Participant: | |||
Signature: | |||
Date: |
As of September 19, 2018 | 1 |
As of September 19, 2018 | 2 |
As of September 19, 2018 | 3 |
As of September 19, 2018 | 4 |
As of September 19, 2018 | 5 |
As of September 19, 2018 | 6 |
As of September 19, 2018 | 7 |
As of September 19, 2018 | 8 |
As of September 19, 2018 | 9 |
As of September 19, 2018 | 10 |
As of September 19, 2018 | 11 |
As of September 19, 2018 | 12 |
As of September 19, 2018 | 13 |
As of September 19, 2018 | 14 |
As of September 19, 2018 | 15 |
Signature: | Date: | |||
Print Name: |
As of September 19, 2018 | 16 |
Name | Jurisdiction of Organization | Nature of Equity Interests |
ACQUIPORT LAURENS LLC | DE | Limited Liability Company |
ACQUIPORT LENEXA LLC | DE | Limited Liability Company |
ACQUIPORT LENEXA MANAGER LLC | DE | Limited Liability Company |
ACQUIPORT MERIDIAN LLC | DE | Limited Liability Company |
ACQUIPORT OAKLAND L.P. | DE | Limited Partnership |
ACQUIPORT OAKLAND MANAGER LLC | DE | Limited Liability Company |
ACQUIPORT WINCHESTER LLC | DE | Limited Liability Company |
CTO ASSOCIATES LIMITED PARTNERSHIP | MD | Limited Partnership |
ETNA GL 66 LLC | DE | Limited Liability Company |
FARRAGUT REMAINDER III L.L.C. | NJ | Limited Liability Company |
GENERAL CLARK STREET ASSOCIATES III, LLC | DE | Limited Liability Company |
JERMOR ASSOCIATES LIMITED PARTNERSHIP | CT | Limited Partnership |
LEPERCQ CORPORATE INCOME FUND L.P. | DE | Limited Partnership |
LEX ALBANY L.P. | DE | Limited Partnership |
LEX ALBANY GP LLC | DE | Limited Liability Company |
LEX ANDERSON GP LLC | DE | Limited Liability Company |
LEX ANDERSON L.P. | DE | Limited Partnership |
LEX ANNISTON GP LLC | DE | Limited Liability Company |
LEX ANNISTON L.P. | DE | Limited Partnership |
LEX AUBURN HILLS GP LLC | DE | Limited Liability Company |
LEX AUBURN HILLS L.P. | DE | Limited Partnership |
LEX BINGEN GP LLC | DE | Limited Liability Company |
LEX BINGEN L.P. | DE | Limited Partnership |
LEX BYHALIA MC GP LLC | DE | Limited Liability Company |
LEX BYHALIA MC L.P. | DE | Limited Partnership |
LEX CANTON MS GP LLC | DE | Limited Liability Company |
LEX CANTON MS L.P | DE | Limited Partnership |
LEX CARROLLTON GP LLC | DE | Limited Liability Company |
LEX CARROLLTON L.P. | DE | Limited Partnership |
LEX CARROLLTON 1031 LLC | DE | Limited Liability Company |
LEX CHESTER LLC | DE | Limited Liability Company |
LEX CHESTER 1031 LLC | DE | Limited Liability Company |
LEX CHILLICOTHE GP LLC | DE | Limited Liability Company |
LEX CHILLICOTHE L.P. | DE | Limited Partnership |
LEX CLEVELAND TN LLC | DE | Limited Liability Company |
LEX DANVILLE GP LLC | DE | Limited Liability Company |
LEX DANVILLE L.P. | DE | Limited Partnership |
LEX EDWARDSVILLE GP LLC | DE | Limited Liability Company |
LEX EDWARDSVILLE L.P. | DE | Limited Partnership |
Name | Jurisdiction of Organization | Nature of Equity Interests |
LEX EDWARDSVILLE GP II LLC | DE | Limited Liability Company |
LEX EDWARDSVILLE II L.P. | DE | Limited Partnership |
LEX EDWARDSVILLE II 1031 LLC | DE | Limited Liability Company |
LEX EUGENE GP LLC | DE | Limited Liability Company |
LEX EUGENE L.P. | DE | Limited Partnership |
LEX GOODYEAR GP LLC | DE | Limited Liability Company |
LEX GOODYEAR L.P. | DE | Limited Partnership |
LEX GP HOLDING LLC | DE | Limited Liability Company |
LEX GP-1 TRUST | DE | Statutory Trust |
LEX GRAND PRAIRIE GP LLC | DE | Limited Liability Company |
LEX GRAND PRAIRIE L.P. | DE | Limited Partnership |
LEX HOUSTON GP LLC | DE | Limited Liability Company |
LEX HOUSTON L.P. | DE | Limited Partnership |
LEX HOUSTON II GP LLC | DE | Limited Liability Company |
LEX HOUSTON II L.P. | DE | Limited Partnership |
LEX JACKSON GP LLC | DE | Limited Liability Company |
LEX KANSAS CITY GP LLC | DE | Limited Liability Company |
LEX KANSAS CITY L.P. | DE | Limited Partnership |
LEX LAFAYETTE GP LLC | DE | Limited Liability Company |
LEX LAFAYETTE L.P. | DE | Limited Partnership |
LEX LAKE JACKSON GP LLC | DE | Limited Liability Company |
LEX LAKE JACKSON L.P. | DE | Limited Partnership |
LEX LAS VEGAS L.P. | DE | Limited Partnership |
LEX LAS VEGAS GP LLC | DE | Limited Liability Company |
LEX LEBANON L.P. | DE | Limited Partnership |
LEX LEBANON GP LLC | DE | Limited Liability Company |
LEX LP-1 TRUST | DE | Statutory Trust |
LEX LEWISBURG LLC | DE | Limited Liability Company |
LEX MIAMI LAKES GP LLC | DE | Limited Liability Company |
LEX MIAMI LAKES L.P. | DE | Limited Partnership |
LEX MISSOURI CITY GP LLC | DE | Limited Liability Company |
LEX MISSOURI CITY L.P. | DE | Limited Partnership |
LEX OAK CREEK GP LLC | DE | Limited Liability Company |
LEX OAK CREEK L.P. | DE | Limited Partnership |
LEX OB 1031 LLC | DE | Limited Liability Company |
LEX OB HB GP LLC | DE | Limited Liability Company |
LEX OB HB L.P. | DE | Limited Partnership |
LEX OB SEP GP LLC | DE | Limited Liability Company |
LEX OB SEP L.P. | DE | Limited Partnership |
LEX OCDES LLC | DE | Limited Liability Company |
LEX OCDES I LLC | DE | Limited Liability Company |
Name | Jurisdiction of Organization | Nature of Equity Interests |
LEX OCDES III LLC | DE | Limited Liability Company |
LEX OCDES IV LLC | DE | Limited Liability Company |
LEX OMAHA GP LLC | DE | Limited Liability Company |
LEX OMAHA L.P. | DE | Limited Partnership |
LEX OPELIKA II GP LLC | DE | Limited Liability Company |
LEX OPELIKA II L.P. | DE | Limited Partnership |
LEX PALM BEACH GP LLC | DE | Limited Liability Company |
LEX PASADENA GP LLC | DE | Limited Liability Company |
LEX PASADENA L.P. | DE | Limited Partnership |
LEX PELICAN GP LLC | DE | Limited Liability Company |
LEX PELICAN L.P. | DE | Limited Partnership |
LEX PHOENIX ASSOC LLC | DE | Limited Liability Company |
LEX RANTOUL GP LLC | DE | Limited Liability Company |
LEX RANTOUL L.P. | DE | Limited Partnership |
LEX RICHLAND GP LLC | DE | Limited Liability Company |
LEX RICHLAND L.P. | DE | Limited Partnership |
LEX ROMEOVILLE GP LLC | DE | Limited Liability Company |
LEX ROMEOVILLE L.P. | DE | Limited Partnership |
LEX ROMULUS GP LLC | DE | Limited Liability Company |
LEX ROMULUS L.P. | DE | Limited Partnership |
LEX SAN AN GP LLC | DE | Limited Liability Company |
LEX SAN AN L.P. | DE | Limited Partnership |
LEX SHREVEPORT GP LLC | DE | Limited Liability Company |
LEX SHREVEPORT L.P. | DE | Limited Partnership |
LEX SHREVEPORT II GP LLC | DE | Limited Liability Company |
LEX SHREVEPORT II L.P. | DE | Limited Partnership |
LEX SMYRNA GP LLC | DE | Limited Liability Company |
LEX SPARTANBURG 1031 LLC | DE | Limited Liability Company |
LEX SPARTANBURG GP LLC | DE | Limited Liability Company |
LEX SPARTANBURG L.P. | DE | Limited Partnership |
LEX-SPRINGING MEMBER LLC | DE | Limited Liability Company |
LEX SUNCAP HP GP LLC | DE | Limited Liability Company |
LEX SUNCAP HP L.P. | DE | Limited Partnership |
LEX THOMSON GP LLC | DE | Limited Liability Company |
LEX THOMSON L.P. | DE | Limited Partnership |
LEX VINELAND GP LLC | DE | Limited Liability Company |
LEX VINELAND L.P. | DE | Limited Partnership |
LEX WARREN GP LLC | DE | Limited Liability Company |
LEX WARREN L.P. | DE | Limited Partnership |
LEX WESTRIDGE PKWY GP LLC | DE | Limited Liability Company |
LEX WESTRIDGE PKWY L.P. | DE | Limited Partnership |
Name | Jurisdiction of Organization | Nature of Equity Interests |
LEX WESTRIDGE PKWY II GP LLC | DE | Limited Liability Company |
LEX WESTRIDGE PKWY II 1031 LLC | DE | Limited Liability Company |
LEX WESTRIDGE PKWY II L.P. | DE | Limited Partnership |
LEX WHITESTOWN GP LLC | DE | Limited Liability Company |
LEX WHITESTOWN 1031 LLC | DE | Limited Liability Company |
LEX WHITESTOWN L.P. | DE | Limited Partnership |
LEX WINCHESTER GP LLC | DE | Limited Liability Company |
LEX WINCHESTER L.P. | DE | Limited Partnership |
LEXINGTON ACQUIPORT COMPANY LLC | DE | Limited Liability Company |
LEXINGTON ACQUIPORT COMPANY II LLC | DE | Limited Liability Company |
LEXINGTON AMERICAN WAY LLC | DE | Limited Liability Company |
LEXINGTON ANTIOCH LLC | DE | Limited Liability Company |
LEXINGTON ARLINGTON L.P. | DE | Limited Partnership |
LEXINGTON ARLINGTON MANAGER LLC | DE | Limited Liability Company |
LEXINGTON BOCA LLC | FL | Limited Liability Company |
LEXINGTON BOCA MANAGER LLC | DE | Limited Liability Company |
LEXINGTON BRISTOL L.P. | DE | Limited Partnership |
LEXINGTON BRISTOL GP LLC | DE | Limited Liability Company |
LEXINGTON BROADFIELD L.P. | DE | Limited Partnership |
LEXINGTON BROADFIELD MANAGER LLC | DE | Limited Liability Company |
LEXINGTON CENTERPOINT LLC | DE | Limited Liability Company |
LEXINGTON CHARLESTON L.P. | DE | Limited Partnership |
LEXINGTON CHARLESTON MANAGER LLC | DE | Limited Liability Company |
LEXINGTON CHESTER INDUSTRIAL LLC | SC | Limited Liability Company |
LEXINGTON CHESTER MANAGER LLC | DE | Limited Liability Company |
LEXINGTON COLUMBUS (JACKSON STREET) L.P. | DE | Limited Partnership |
LEXINGTON COLUMBUS (JACKSON STREET) MANAGER LLC | DE | Limited Liability Company |
LEXINGTON CROSSPOINT L.P. | DE | Limited Partnership |
LEXINGTON CROSSPOINT MANAGER LLC | DE | Limited Liability Company |
LEXINGTON DISSOLVED LLC | DE | Limited Liability Company |
LEXINGTON DRY RIDGE CORP. | DE | Corporation |
LEXINGTON DRY RIDGE MEZZ CORP. | DE | Corporation |
LEXINGTON DULLES LLC | DE | Limited Liability Company |
LEXINGTON DULLES MANAGER LLC | DE | Limited Liability Company |
LEXINGTON DUNCAN L.P. | DE | Limited Partnership |
LEXINGTON DUNCAN MANAGER LLC | DE | Limited Liability Company |
LEXINGTON DUNCAN II GP LLC | DE | Limited Liability Company |
LEXINGTON DUNCAN II 1031 LLC | DE | Limited Liability Company |
LEXINGTON DUNCAN II L.P. | DE | Limited Partnership |
LEXINGTON DURHAM LLC | DE | Limited Liability Company |
LEXINGTON DURHAM LIMITED PARTNERSHIP | DE | Limited Partnership |
Name | Jurisdiction of Organization | Nature of Equity Interests |
LEXINGTON ELIZABETHTOWN 730 CORP. | DE | Corporation |
LEXINGTON ELIZABETHTOWN 730 MEZZ CORP. | DE | Corporation |
LEXINGTON ELIZABETHTOWN 750 CORP. | DE | Corporation |
LEXINGTON ELIZABETHTOWN 750 MEZZ CORP. | DE | Corporation |
LEXINGTON FLORENCE LLC | DE | Limited Liability Company |
LEXINGTON FORT MILL II LLC | DE | Limited Liability Company |
LEXINGTON FORT MILL LLC | DE | Limited Liability Company |
LEXINGTON GEARS L.P. | DE | Limited Partnership |
LEXINGTON GEARS MANAGER LLC | DE | Limited Liability Company |
LEXINGTON GLENDALE LLC | DE | Limited Liability Company |
LEXINGTON HONOLULU L.P. | DE | Limited Partnership |
LEXINGTON HONOLULU MANAGER LLC | DE | Limited Liability Company |
LEXINGTON HOPKINSVILLE CORP. | DE | Corporation |
LEXINGTON HOPKINSVILLE MEZZ CORP. | DE | Corporation |
LEXINGTON INDIANAPOLIS PARCEL LLC | DE | Limited Liability Company |
LEXINGTON KALAMAZOO L.P. | DE | Limited Partnership |
LEXINGTON KALAMAZOO MANAGER LLC | DE | Limited Liability Company |
LEXINGTON KANSAS CITY LLC | DE | Limited Liability Company |
LEXINGTON KANSAS CITY MANAGER LLC | DE | Limited Liability Company |
LEXINGTON KNOXVILLE LLC | DE | Limited Liability Company |
LEXINGTON KNOXVILLE MANAGER LLC | DE | Limited Liability Company |
LEXINGTON LAC LENEXA L.P. | DE | Limited Partnership |
LEXINGTON LAC LENEXA GP LLC | DE | Limited Liability Company |
LEXINGTON LION FARMERS BRANCH GP LLC | DE | Limited Liability Company |
LEXINGTON LION FARMERS BRANCH L.P. | DE | Limited Partnership |
LEXINGTON LION MCLEAREN GP LLC | DE | Limited Liability Company |
LEXINGTON LION MCLEAREN L.P | DE | Limited Partnership |
LEXINGTON LION PLYMOUTH GP LLC | DE | Limited Liability Company |
LEXINGTON LION PLYMOUTH L.P. | DE | Limited Partnership |
LEXINGTON/LION VENTURE L.P. | DE | Limited Partnership |
LEXINGTON LIVONIA TI L.P. | DE | Limited Partnership |
LEXINGTON LIVONIA TI MANAGER LLC | DE | Limited Liability Company |
LEXINGTON MARSHALL MS GP LLC | DE | Limited Liability Company |
LEXINGTON MARSHALL MS L.P. | DE | Limited Partnership |
LEXINGTON MEMPHIS (JVF) LLC | DE | Limited Liability Company |
LEXINGTON MIDLOTHIAN L.P. | DE | Limited Partnership |
LEXINGTON MIDLOTHIAN MANAGER LLC | DE | Limited Liability Company |
LEXINGTON MILLINGTON LLC | DE | Limited Liability Company |
LEXINGTON MINNEAPOLIS LLC | DE | Limited Liability Company |
LEXINGTON MISSION L.P. | DE | Limited Partnership |
LEXINGTON MISSION MANAGER LLC | DE | Limited Liability Company |
Name | Jurisdiction of Organization | Nature of Equity Interests |
LEXINGTON MKP MANAGEMENT L.P. | DE | Limited Partnership |
LEXINGTON MLP SHREVEPORT L.P. | DE | Limited Partnership |
LEXINGTON MLP SHREVEPORT MANAGER LLC | DE | Limited Liability Company |
LEXINGTON MOODY L.P. | DE | Limited Partnership |
LEXINGTON MOODY LLC | DE | Limited Liability Company |
LEXINGTON MORTGAGE TRUSTEE LLC | DE | Limited Liability Company |
LEXINGTON OC LLC | DE | Limited Liability Company |
LEXINGTON OLIVE BRANCH LLC | DE | Limited Liability Company |
LEXINGTON OVERLAND PARK LLC | DE | Limited Liability Company |
LEXINGTON OVERLAND PARK MANAGER LLC | DE | Limited Liability Company |
LEXINGTON OWENSBORO CORP. | DE | Corporation |
LEXINGTON OWENSBORO MEZZ CORP. | DE | Corporation |
LEXINGTON PHILADELPHIA TRUST | DE | Statutory Trust |
LEXINGTON REALTY ADVISORS INC. | DE | Corporation |
LEXINGTON REDMOND LLC | DE | Limited Liability Company |
LEXINGTON SHELBY L.P. | DE | Limited Partnership |
LEXINGTON SHELBY GP LLC | DE | Limited Liability Company |
LEXINGTON SIX PENN LLC | DE | Limited Liability Company |
LEXINGTON STREETSBORO LLC | DE | Limited Liability Company |
LEXINGTON STREETSBORO MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TAMPA L.P. | DE | Limited Partnership |
LEXINGTON TAMPA GP LLC | DE | Limited Liability Company |
LEXINGTON TEMPE L.P. | DE | Limited Partnership |
LEXINGTON TEMPE MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TENNESSEE HOLDINGS LLC | DE | Limited Liability Company |
LEXINGTON TNI DES MOINES L.P. | DE | Limited Partnership |
LEXINGTON TNI DES MOINES MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TNI ERWIN L.P. | DE | Limited Partnership |
LEXINGTON TNI ERWIN MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TNI WESTLAKE L.P. | DE | Limited Partnership |
LEXINGTON TNI WESTLAKE MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TRAMK GALESBURG LLC | DE | Limited Liability Company |
LEXINGTON TRAMK GALESBURG REMAINDERMAN | DE | Limited Liability Company |
LEXINGTON TRAMK LEWISBURG LLC | DE | Limited Liability Company |
LEXINGTON TRAMK LEWISBURG REMAINDERMAN LLC | DE | Limited Liability Company |
LEXINGTON TRAMK MANTECA L.P | DE | Limited Partnership |
LEXINGTON TRAMK MANTECA MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TRAMK MANTECA REMAINDERMAN L.P. | DE | Limited Partnership |
LEXINGTON TRAMK SAN DIEGO L.P. | DE | Limited Partnership |
LEXINGTON TRAMK SAN DIEGO MANAGER LLC | DE | Limited Liability Company |
LEXINGTON TRAMK WATERTOWN LLC | DE | Limited Liability Company |
Name | Jurisdiction of Organization | Nature of Equity Interests |
LEXINGTON TRAMK WATERTOWN REMAINDERMAN LLC | DE | Limited Liability Company |
LEXINGTON WALL L.P. | DE | Limited Partnership |
LEXINGTON WALL LLC | DE | Limited Liability Company |
LEXINGTON WALLINGFORD LLC | DE | Limited Liability Company |
LEXINGTON WILSONVILLE L.P. | DE | Limited Partnership |
LEXINGTON WILSONVILLE GP LLC | DE | Limited Liability Company |
LMLP GP LLC | DE | Limited Liability Company |
LOMBARD STREET LOTS, LLC | MD | Limited Liability Company |
LRA CAFÉ LLC | DE | Limited Liability Company |
LRA GP LLC | DE | Limited Liability Company |
LRA LIMITED L.P. | DE | Limited Partnership |
LRA LIMITED GP LLC | DE | Limited Liability Company |
LRA MANAGER CORP. | DE | Corporation |
LRA MKP TRS L.P. | DE | Limited Partnership |
LRA TEXAS GENERAL PARTNER LLC | DE | Limited Liability Company |
LRA TEXAS L.P. | DE | Limited Partnership |
LSAC CROSSVILLE LLC | DE | Limited Liability Company |
LSAC GENERAL PARTNER LLC | DE | Limited Liability Company |
LSAC MORRIS COUNTY L.P. | DE | Limited Partnership |
LSAC MORRIS COUNTY MANAGER LLC | DE | Limited Liability Company |
LSAC OPERATING PARTNERSHIP L.P. | DE | Limited Partnership |
LSAC ORLANDO L.P. | DE | Limited Partnership |
LSAC ORLANDO MANAGER LLC | DE | Limited Liability Company |
LSAC PASCAGOULA L.P. | DE | Limited Partnership |
LSAC PASCAGOULA MANAGER LLC | DE | Limited Liability Company |
LSAC PLYMOUTH L.P. | DE | Limited Partnership |
LSAC PLYMOUTH MANAGER LLC | DE | Limited Liability Company |
LXP CAPITAL TRUST I | DE | Statutory Trust |
LXP CHICAGO LLC | DE | Limited Liability Company |
LXPDK GP LLC | DE | Limited Liability Company |
LXP GP LLC | DE | Limited Liability Company |
LXP HUMBLE GP LLC | DE | Limited Liability Company |
LXP LIMITED L.P. | DE | Limited Partnership |
LXP LIMITED GP LLC | DE | Limited Liability Company |
LXP MANAGER CORP. | DE | Corporation |
NET 1 HENDERSON L.P. | DE | Limited Partnership |
NET 1 PHOENIX L.L.C. | DE | Limited Liability Company |
NET 2 COX LLC | DE | Limited Liability Company |
NET 2 HAMPTON LLC | DE | Limited Liability Company |
NET LEASE STRATEGIC ASSETS FUND L.P. | DE | Limited Partnership |
NEWKIRK ALTENN LLC | DE | Limited Liability Company |
Name | Jurisdiction of Organization | Nature of Equity Interests |
NEWKIRK AVREM LLC | DE | Limited Liability Company |
NEWKIRK ELPORT LLC | DE | Limited Liability Company |
NEWKIRK GP LLC | DE | Limited Liability Company |
NEWKIRK JLE WAY L.P. | DE | Limited Partnership |
NEWKIRK JLE WAY GP LLC | DE | Limited Liability Company |
NEWKIRK MLP UNIT LLC | DE | Limited Liability Company |
NEWKIRK ORPER GP LLC | DE | Limited Liability Company |
NEWKIRK ORPER L.P. | DE | Limited Partnership |
NEWKIRK SALISTOWN GP LLC | DE | Limited Liability Company |
NEWKIRK SALISTOWN L.P. | DE | Limited Partnership |
NEWKIRK SEGUINE GP LLC | DE | Limited Liability Company |
NEWKIRK SEGUINE L.P. | DE | Limited Partnership |
NEWKIRK SUPERWEST GP LLC | DE | Limited Liability Company |
NEWKIRK SUPERWEST L.P. | DE | Limited Partnership |
NEWKIRK SYRCAR LLC | DE | Limited Liability Company |
NEWKIRK WALANDO GP LLC | DE | Limited Liability Company |
NEWKIRK WALANDO L.P. | DE | Limited Partnership |
NK-CINN HAMILTON PROPERTY LLC | DE | Limited Liability Company |
NK-GLENWILLOW PROPERTY LLC | DE | Limited Liability Company |
NK-LOMBARD STREET MANAGER LLC | DE | Limited Liability Company |
NK-LUMBERTON PROPERTY L.P. | DE | Limited Partnership |
NK-LUMBERTON PROPERTY MANAGER LLC | DE | Limited Liability Company |
NK-MCDONOUGH PROPERTY LLC | DE | Limited Liability Company |
NK-ODW/COLUMBUS PROPERTY LLC | DE | Limited Liability Company |
NK-REMAINDER INTEREST LLC | DE | Limited Liability Company |
NK-ROCKFORD PROPERTY LLC | DE | Limited Liability Company |
NK-STATESVILLE PROPERTY L.P. | DE | Limited Partnership |
NK-STATESVILLE PROPERTY MANAGER LLC | DE | Limited Liability Company |
NLSAF LP1 LLC | DE | Limited Liability Company |
NLSAF MARSHALL GP LLC | DE | Limited Liability Company |
NLSAF MARSHALL L.P. | DE | Limited Partnership |
NLSAF MCDONOUGH L.P. | DE | Limited Partnership |
NLSAF MCDONOUGH MANAGER LLC | DE | Limited Liability Company |
PHOENIX HOTEL ASSOCIATES LIMITED PARTNERSHIP | DE | Limited Partnership |
SIX PENN CENTER ASSOCIATES | PA | General Partnership |
SIX PENN CENTER L.P. | DE | Limited Partnership |
TRIPLE NET INVESTMENT COMPANY LLC | DE | Limited Liability Company |
TRIPLE NET INVESTMENT L.P. | DE | Limited Partnership |
UHA LP2 LLC | DE | Limited Liability Company |
UNION HILLS ASSOCIATES | AZ | General Partnership |
UNION HILLS ASSOCIATES II | AZ | General Partnership |
Name | Jurisdiction of Organization | Nature of Equity Interests |
XEL 201 N. CHARLES LLC | DE | Limited Liability Company |
XEL 201 N. CHARLES FEE OWNER LLC | DE | Limited Liability Company |
XEL-EP 70 REIT LLC | DE | Limited Liability Company |
XEL-EP 70 TRS LLC | DE | Limited Liability Company |
XEL FLORENCE GP LLC | DE | Limited Liability Company |
XEL FLORENCE L.P. | DE | Limited Partnership |
Consent of Independent Registered Public Accounting Firm |
The Board of Trustees Lexington Realty Trust: |
We consent to the incorporation by reference in the registration statements (Nos. 333-157860, 333-208755, and 333-223257) on Form S-3 and registration statement (No. 333-223399) on Form S-8 of Lexington Realty Trust of our report dated February 28, 2017, except for the first paragraph of New Accounting Standards Adopted in 2018 in Note 2, as to which the date is March 12, 2019, with respect to the consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for Lexington Realty Trust and subsidiaries for the year ended December 31, 2016, and financial statement schedule III for the year ended December 31, 2016, which report appears in the December 31, 2018 annual report on Form 10-K of Lexington Realty Trust. Our report refers to changes in the method of accounting for how certain cash receipts and cash payments, as well as restricted cash, are presented and classified in the consolidated statement of cash flows. |
(signed) KPMG LLP New York, New York March 12, 2019 |
1. | I have reviewed this report on Form 10-K of Lexington Realty Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
March 12, 2019 |
/s/ T. Wilson Eglin |
T. Wilson Eglin Chief Executive Officer |
1. | I have reviewed this report on Form 10-K of Lexington Realty Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
March 12, 2019 |
/s/ Patrick Carroll |
Patrick Carroll |
Chief Financial Officer |
/s/ T. Wilson Eglin |
T. Wilson Eglin Chief Executive Officer |
March 12, 2019 |
/s/ Patrick Carroll |
Patrick Carroll |
Chief Financial Officer |
March 12, 2019 |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 08, 2019 |
Jun. 29, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LEXINGTON REALTY TRUST | ||
Entity Central Index Key | 0000910108 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned User | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,044,256,426 | ||
Entity Common Stock, Shares Outstanding (in shares) | 235,282,784 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period Ended Date | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Accumulated amortization on deferred expenses | $ 27,397 | $ 35,072 |
Liabilities: | ||
Accumulated accretion on deferred revenue | $ 17,606 | $ 26,081 |
Equity: | ||
Preferred shares, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Preferred shares, liquidation preference | $ 96,770 | $ 96,770 |
Preferred shares, convertible preferred, shares issued (in shares) | 1,935,400 | 1,935,400 |
Preferred shares, redeemable preferred, shares outstanding (in shares) | 1,935,400 | 1,935,400 |
Common shares, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common shares, shares issued (in shares) | 235,008,554 | 240,689,081 |
Common shares, shares outstanding (in shares) | 235,008,554 | 240,689,081 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Statement [Abstract] | |||
Preferred dividend rate | 6.50% | 6.50% | 6.50% |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 230,906 | $ 86,629 | $ 96,450 |
Other comprehensive income (loss): | |||
Change in unrealized gain (loss) on interest rate swaps, net | (989) | 2,098 | 906 |
Other comprehensive income (loss) | (989) | 2,098 | 906 |
Comprehensive income | 229,917 | 88,727 | 97,356 |
Comprehensive income attributable to noncontrolling interests | (3,491) | (1,046) | (826) |
Comprehensive income attributable to Lexington Realty Trust shareholders | $ 226,426 | $ 87,681 | $ 96,530 |
The Company |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland statutory real estate investment trust (“REIT”) that owns a diversified portfolio of equity investments in single-tenant commercial properties. As of December 31, 2018, the Company had equity ownership interests in approximately 135 consolidated properties located in 34 states. The properties in which the Company has an interest are primarily net-leased to tenants in various industries. The Company believes it has qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities. The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (4) investments in joint ventures. References to “OP Units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interest therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors. |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation. The Company's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP. The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. The Company had a joint venture limited partnership that owned the Lake Jackson, Texas property, with a developer which was a consolidated VIE. In 2017, upon the closeout of the build-to-suit project, the developer earned notional capital of $7,951, which was simultaneously redeemed by the limited partnership for $7,951. The Company treated the payment as a reduction in shareholders equity in accordance with ASC 810-10-45-23. As a result, the limited partnership, which is still consolidated, is wholly-owned by the Company and no longer a VIE. The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of December 31, 2018 and 2017, the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the Consolidated Balance Sheets as of December 31, 2018 and 2017:
In addition, the Company acquires, from time to time, properties using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a "reverse 1031 exchange") and, as such, the properties are in the possession of an Exchange Accommodation Titleholder ("EAT") until the reverse 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the EAT's economic performance and can collapse the reverse 1031 exchange structure at any time. The assets of the EAT primarily consist of leased property (net real estate and intangibles). Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) reduced by preferred dividends and amounts allocated to certain non-vested share-based payment awards, if applicable, by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share amounts are similarly computed but include the effect, when dilutive, of in-the-money common share options and non-vested common shares, OP units and put options of certain convertible securities. Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments, valuation of derivative financial instruments, valuation of awards granted under compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets. Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Prior to January 1, 2018, acquisition and pursuit costs were expensed as incurred and were included in property operating expense in the accompanying Consolidated Statement of Operations, which were $2,171 and $836 for 2017 and 2016, respectively. Effective January 1, 2018, the Company's acquisitions are primarily considered asset acquisitions and acquisition costs are now capitalized. The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions. Management generally retains a third party to assist in the allocations. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases. The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods. Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Company generally depreciates its real estate assets over periods ranging up to 40 years. Impairment of Real Estate. The Company evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds its estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results. Investments in Non-Consolidated Entities. The Company accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Company's investment in the entity is insignificant and the Company has no influence over the control of the entity then the entity is accounted for under the cost method. Impairment of Equity Method Investments. The Company assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Company determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment, including the level of the Company's involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Company records capitalized interest during the construction period. In arrangements where the Company engages a developer to construct a property or provide funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. The operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations; if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties. Deferred Expenses. Deferred expenses consist primarily of revolving line of credit debt and leasing costs. Debt costs are amortized using the straight-line method, which approximates the interest method, over the terms of the debt instruments and leasing costs are amortized over the term of the related lease. Derivative Financial Instruments. The Company accounts for its interest rate swap agreements in accordance with FASB ASC Topic 815, Derivatives and Hedging ("Topic 815"). In accordance with Topic 815, these agreements are carried on the balance sheet at their respective fair values, as an asset if fair value is positive, or as a liability if fair value is negative. If the interest rate swap is designated as a cash flow hedge, the effective portion of the interest rate swap's change in fair value is reported as a component of other comprehensive income (loss); the ineffective portion, if any, is recognized in earnings as an increase or decrease to interest expense. Upon entering into hedging transactions, the Company documents the relationship between the interest rate swap agreement and the hedged item. The Company also documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities. The Company assesses, both at inception of a hedge and on an ongoing basis, whether or not the hedge is highly effective. The Company will discontinue hedge accounting on a prospective basis with changes in the estimated fair value reflected in earnings when (1) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions), (2) it is no longer probable that the forecasted transaction will occur or (3) it is determined that designating the derivative as an interest rate swap is no longer appropriate. The Company does and may continue to utilize interest rate swap and cap agreements to manage interest rate risk, but does not anticipate entering into derivative transactions for speculative trading purposes. Stock Compensation. The Company maintains an equity participation plan. Non-vested share grants generally vest either based upon (1) time, (2) performance and/or (3) market conditions. Options granted under the plan in 2010 vested over a five-year period and expire ten years from the date of grant. Options granted under the plan in 2008 vested upon attainment of certain market performance measures and expired ten years from the date of grant. All share-based payments to employees, including grants of employee stock options, are recognized in the Consolidated Statements of Operations based on their fair values. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur. Tax Status. The Company has made an election to qualify, and believes it is operating so as to qualify, as a REIT for federal income tax purposes. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code. As such, the Company is subject to federal and state income taxes on the income from these activities. Income taxes, primarily related to the Company's taxable REIT subsidiaries, are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Cash and Cash Equivalents. The Company considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents. Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders. Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Company has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Company's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of December 31, 2018, the Company was not aware of any environmental matter relating to any of its investments that would have a material impact on the consolidated financial statements. Segment Reporting. The Company operates generally in one industry segment, single-tenant real estate assets. Reclassifications. Certain amounts included in prior years' financial statements have been reclassified to conform to the current year's presentation. New Accounting Standards Adopted in 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. Restricted cash balances are now included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. In addition, separate line items showing changes in restricted cash balances are now eliminated from the Company's consolidated statement of cash flows. These ASUs were effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted these ASUs effective January 1, 2018 on a retrospective basis. The effect of the adoption resulted in (1) a $109 and $4,537 change in cash flows from operating activities for 2017 and 2016, respectively, (2) a $(23,958) and $21,571 change in cash flows from investing activities for 2017 and 2016, respectively, and (3) a $(2,899) and $(5,603) change in cash flows from financing activities for 2017 and 2016, respectively. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU was effective for reporting periods beginning after December 15, 2017. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018 on a prospective basis. The Company's property acquisitions in 2018 were accounted for as asset acquisitions. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The new guidance was effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the adoption of the ASU did not have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The Company adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective approach, however there was no impact to prior balances as there were no open contracts at the date of adoption. During 2018, the Company entered into a transaction in which it contributed consolidated properties to a newly-formed joint venture and acquired a 20% interest in the joint venture. See note 7. Recently Issued Accounting Guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The Company expects the ASU to result in the recognition of a right-of-use asset and related liability to primarily account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. The Company estimates that its initial right-of-use asset and lease liability will be within a range of $35,000 to $45,000 at adoption. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components; however, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements in July 2018, which allows lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. Historically, the Company has capitalized lease commissions and "other" lease related costs, primarily legal expenses. Effective January 1, 2019, the Company will not capitalize these "other" costs, however, the Company does not believe these will be material. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption; however, under ASU 2018-11 companies may elect to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt this new guidance on January 1, 2019 utilizing the cumulative-effect adjustment outlined in ASU 2018-11. In addition, the Company will elect several practical expedients afforded to it at implementation. In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company's consolidated financial statements. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share A significant portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2018:
For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods. |
Investments in Real Estate |
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Real Estate Investments, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Real Estate | Investments in Real Estate The Company's real estate, net, consists of the following at December 31, 2018 and 2017:
The Company had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $17,923 and $23,308, respectively, as of December 31, 2018 and 2017. The estimated accretion for the next five years is $2,144 in 2019, $2,118 in 2020, $1,778 in 2021, $1,499 in 2022 and $1,499 in 2023. The Company completed the following acquisitions and build-to-suit transactions during 2018 and 2017: 2018:
In addition, the Company acquired a 57-acre parcel of land from a non-consolidated joint venture and leased the parcel to a tenant to develop an industrial property. 2017:
From time to time, the Company is engaged in various forms of build-to-suit development activities. As of December 31, 2018 and 2017, the Company had no development arrangements outstanding. During 2017, the Company recognized $3,922 in non-operating income on the Company's Consolidated Statement of Operations due to the write-off of contingent consideration relating to a 2015 build-to-suit project that was not required to be paid by the Company. |
Dispositions and Impairment |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions and Impairment | Dispositions and Impairment For the years ended December 31, 2018, 2017 and 2016, the Company disposed of its interests in certain properties generating aggregate net proceeds of $898,514, $223,853 and $370,038, respectively, which resulted in gains on sales of $252,913, $63,428 and $81,510, respectively, including, in 2018, the disposition of 21 office assets to a newly-formed joint venture, NNN Office JV L.P. (“NNN JV”), with an unaffiliated third-party. See note 7. For the years ended December 31, 2018, 2017 and 2016, the Company recognized net debt satisfaction gains (charges) relating to properties sold of $(1,698), $5,938 and $(532), respectively. The Company had two properties classified as held for sale at December 31, 2018 and one property classified as held for sale at December 31, 2017. Assets and liabilities of held for sale properties as of December 31, 2018 and 2017 consisted of the following:
The Company assesses on a regular basis whether there are any indicators that the carrying value of real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of an asset and the potential sale of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered. During 2018, 2017 and 2016, the Company recognized aggregate impairment charges on real estate properties of $95,813, $39,702 and $100,195, respectively. During 2018, $36,620 of the impairment charges of $95,813 were recognized on properties owned at December 31, 2018. The Company's office assets in Overland Park, Kansas and Kansas City, Missouri incurred an aggregate $23,496 of impairment charges due to a reduction in the anticipated holding period and leasing prospects. During 2017, $18,023 of the impairment charges of $39,702 were recognized on properties held at December 31, 2017. The Company's office asset in Florence, South Carolina and industrial asset in Memphis, Tennessee incurred an aggregate $15,008 of the impairment charges due to a reduction in anticipating holding period. The 2016 impairment charges include an aggregate impairment charge of $65,500 recognized on the sale of three land investments in New York, New York. In February 2017, the Company recognized a $5,294 loan loss on the assignment of a loan receivable secured by a hospital in Kennewick, Washington. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2018 and 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:
*Represents a non-recurring fair value measurement. Fair value as of the date of impairment. The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2018 and 2017:
The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2018 and 2017, the Company determined that the credit valuation adjustment relative to the overall interest rate swaps was not significant. As a result, all interest rate swaps have been classified in Level 2 of the fair value hierarchy. The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated. The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates. The Company determines the fair value of its Senior Notes using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low. Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts. Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments. |
Investment in and Advances to Non-Consolidated Entities |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in and Advances to Non-Consolidated Entities | Investment in and Advances to Non-Consolidated Entities Below is a schedule of the Company's investments in and advances to non-consolidated entities:
In December 2018, the Company received $4,312 from a non-consolidated investment in connection with its sale of a six-property office portfolio. In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized gains of $1,777, $1,452 and $5,378, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities. During 2017, the Company recognized an impairment charge of $3,512 on its investment in a retail property in Palm Beach Gardens, Florida due to the bankruptcy of its tenant. This impairment charge reduced the Company's investment balance to zero. During 2018, the property was sold in a foreclosure sale. LRA earns advisory fees from certain of these non-consolidated entities for services related to acquisitions, asset management and debt placement. Advisory fees earned from these non-consolidated investments were $1,443, $807 and $693 for the years ended December 31, 2018, 2017 and 2016. |
Mortgages and Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages and Notes Payable | Mortgages and Notes Payable The Company had the following mortgages and notes payable outstanding as of December 31, 2018 and 2017:
Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 6.5% at December 31, 2018 and the mortgages and notes payable mature between 2019 and 2036. Interest rates, including imputed rates, ranged from 2.2% to 7.8% at December 31, 2017. The weighted-average interest rate at December 31, 2018 and 2017 was approximately 4.5% and 4.6%, respectively. The Company has an unsecured credit agreement with KeyBank National Association, as agent. A summary of the significant terms, as of December 31, 2018, are as follows:
The unsecured revolving credit facility and the unsecured term loan are subject to financial covenants, which the Company was in compliance with at December 31, 2018. Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments. Scheduled principal and balloon payments for mortgages, notes payable and term loan for the next five years and thereafter are as follows:
Included in the Consolidated Statements of Operations, the Company recognized debt satisfaction gains (charges), net, of $(898), $258 and $(7) for the years ended December 31, 2018, 2017 and 2016, respectively, due to the satisfaction of mortgages and notes payable other than those disclosed elsewhere in these financial statements. In addition, the Company capitalized $15, $1,174 and $4,933 in interest for the years ended 2018, 2017 and 2016, respectively. Senior Notes, Convertible Notes and Trust Preferred Securities The Company had the following Senior Notes outstanding as of December 31, 2018 and 2017:
Each series of the Senior Notes is unsecured and pays interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes. The notes paid interest semi-annually in arrears and were scheduled to mature in January 2030. The notes were fully satisfied/converted in 2016. During 2016, $12,400 aggregate principal amount of the notes were converted for 1,892,269 common shares and an aggregate cash payment of $672 plus accrued and unpaid interest. The Company recognized aggregate debt satisfaction charges of $436 during 2016 relating to the conversions. During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and thereafter bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at December 31, 2018 was 4.220%. As of December 31, 2018 and 2017, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,824 and $1,924, respectively, of unamortized debt issuance costs. Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:
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Senior Notes, Convertible Notes and Trust Preferred Securities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes, Convertible Notes and Trust Preferred Securities | Mortgages and Notes Payable The Company had the following mortgages and notes payable outstanding as of December 31, 2018 and 2017:
Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 6.5% at December 31, 2018 and the mortgages and notes payable mature between 2019 and 2036. Interest rates, including imputed rates, ranged from 2.2% to 7.8% at December 31, 2017. The weighted-average interest rate at December 31, 2018 and 2017 was approximately 4.5% and 4.6%, respectively. The Company has an unsecured credit agreement with KeyBank National Association, as agent. A summary of the significant terms, as of December 31, 2018, are as follows:
The unsecured revolving credit facility and the unsecured term loan are subject to financial covenants, which the Company was in compliance with at December 31, 2018. Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments. Scheduled principal and balloon payments for mortgages, notes payable and term loan for the next five years and thereafter are as follows:
Included in the Consolidated Statements of Operations, the Company recognized debt satisfaction gains (charges), net, of $(898), $258 and $(7) for the years ended December 31, 2018, 2017 and 2016, respectively, due to the satisfaction of mortgages and notes payable other than those disclosed elsewhere in these financial statements. In addition, the Company capitalized $15, $1,174 and $4,933 in interest for the years ended 2018, 2017 and 2016, respectively. Senior Notes, Convertible Notes and Trust Preferred Securities The Company had the following Senior Notes outstanding as of December 31, 2018 and 2017:
Each series of the Senior Notes is unsecured and pays interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes. The notes paid interest semi-annually in arrears and were scheduled to mature in January 2030. The notes were fully satisfied/converted in 2016. During 2016, $12,400 aggregate principal amount of the notes were converted for 1,892,269 common shares and an aggregate cash payment of $672 plus accrued and unpaid interest. The Company recognized aggregate debt satisfaction charges of $436 during 2016 relating to the conversions. During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and thereafter bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at December 31, 2018 was 4.220%. As of December 31, 2018 and 2017, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,824 and $1,924, respectively, of unamortized debt issuance costs. Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:
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Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings. Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during 2018, 2017 and 2016. The Company has designated the interest rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on $255,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the aggregate $255,000 term loans. During the next 12 months, the Company estimates that an additional $76 will be reclassified as a decrease to interest expense if the swaps remain outstanding. As of December 31, 2018, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2018 and 2017.
The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for 2018 and 2017:
The Company's agreements with the swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of December 31, 2018, the Company had not posted any collateral related to the agreements. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessor: Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:
The above minimum lease payments do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases. Certain leases allow for the tenant to terminate the lease if the property is deemed obsolete, as defined, and upon payment of a termination fee to the landlord, as stipulated in the lease. In addition, certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price. Lessee: The Company holds, through property owner subsidiaries, leasehold interests in various properties. Generally, the ground rents on these properties are either paid directly by the tenants to the fee holder or reimbursed to the Company as additional rent. Certain properties are economically owned through the holding of industrial revenue bonds and as such neither ground lease payments nor bond debt service payments are made or received, respectively. For certain of these properties, the Company has an option to purchase the fee interest. Minimum future rental payments under non-cancelable leasehold interests, excluding leases held through industrial revenue bonds and lease payments in the future that are based upon fair market value, for the next five years and thereafter are as follows:
Rent expense for the leasehold interests was $597, $690 and $987 in 2018, 2017 and 2016, respectively. The Company leases its corporate headquarters. The lease expires March 2026. The Company is responsible for its proportionate share of operating expenses and real estate taxes above a base year. In addition, the Company leases office space for its regional offices. The minimum lease payments for the Company's offices are $1,295 for 2019, $1,296 for 2020, $1,325 for 2021, $1,335 for 2022 and $1,304 for 2023 and $2,935 thereafter. Rent expense for 2018, 2017 and 2016 was $1,274, $1,256 and $1,242, respectively. |
Concentration of Risk |
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Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the years ended December 31, 2018, 2017 and 2016, no single tenant represented greater than 10% of rental revenues. Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. |
Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Shareholders' Equity: During 2016, the Company issued 577,823 common shares under its direct share purchase plan, which includes a dividend reinvestment component, raising net proceeds of approximately $4,115. In 2018 and 2017, no shares were issued under this plan. During 2013, the Company implemented, and in 2016, the Company updated, its At-The-Market offering program under which the Company may issue up to $125,000 in common shares over the term of this program. During 2017 and 2016, the Company issued 1,593,603 and 976,109 common shares, respectively, under this program and generated aggregate gross proceeds of $17,362 and $10,498, respectively. No shares were sold under this program in 2018. The proceeds from these issuances were primarily used for general working capital, to fund investments and retire indebtedness. The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) outstanding at December 31, 2018. The shares have a dividend of $3.25 per share per annum, have a liquidation preference of $96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of December 31, 2018, each share was convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds. If certain fundamental changes occur, holders may require the Company, in certain circumstances, to repurchase all or part of their shares of Series C Preferred. In addition, upon the occurrence of certain fundamental changes, the Company will, under certain circumstances, increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the shares of Series C Preferred becoming convertible into shares of the public acquiring or surviving company. The Company may, at the Company's option, cause shares of Series C Preferred to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company's common shares equals or exceeds 125% of the then prevailing conversion price of the Series C Preferred. Investors in shares of Series C Preferred generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters and under certain other circumstances. Upon conversion, the Company may choose to deliver the conversion value to investors in cash, common shares, or a combination of cash and common shares. During 2018, 2017 and 2016, the Company issued 965,932, 835,234 and 1,084,835 of its common shares, respectively, to certain employees and trustees. Typically, trustee share grants vest immediately. Employee share grants generally vest ratably, on anniversaries of the grant date, however, in certain situations vesting is cliff-based after a specific number of years and/or subject to meeting certain performance criteria (see note 14). In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 common shares in 2018. This share repurchase program has no expiration date. During 2018 and 2016, the Company repurchased and retired 5,851,252 and 1,184,113, respectively, common shares at an average price of $8.05 and $7.56, respectively, per common share under this share repurchase program. No shares were repurchased in 2017. There were $2,641 of unsettled repurchases as of December 31, 2018. A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:
Noncontrolling Interests: In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable for approximately 1.13 common shares, subject to future adjustments. During 2018, 2017 and 2016, 53,388, 140,746 and 48,549 common shares, respectively, were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $189, $584 and $210, respectively. As of December 31, 2018, there were approximately 3,177,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference. The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests:
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Benefit Plans |
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Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans The Company maintains an equity award plan pursuant to which qualified and non-qualified options may be issued. No common share options were issued in 2018, 2017 and 2016. The Company granted 1,248,501, 1,265,500 and 2,000,000 common share options on December 31, 2010 (“2010 options”), January 8, 2010 (“2009 options”) and December 31, 2008 (“2008 options”), respectively, at an exercise price of $7.95, $6.39 and $5.60, respectively. The 2010 options (1) vested 20% annually on each December 31, 2011 through 2015 and (2) terminate on the earlier of (x) six months of termination of service with the Company and (y) December 31, 2020. The 2009 options (1) vested 20% annually on each December 31, 2010 through 2014 and (2) terminate on the earlier of (x) six months of termination of service with the Company and (y) December 31, 2019. The 2008 options (1) vested 50% following a 20-day trading period where the average closing price of a common share of the Company on the New York Stock Exchange (“NYSE”) was $8.00 or higher and vested 50% following a 20-day trading period where the average closing price of a common share of the Company on the NYSE was $10.00 or higher, and (2) terminated on the earlier of (x) termination of service with the Company or (y) December 31, 2018. As a result of the share dividends paid in 2009, each of the 2008 options were exchangeable for approximately 1.13 common shares at an exercise price of $4.97 per common share. The Company engaged third parties to value the options as of each option's respective grant date. The third parties determined the value to be $2,422 and $2,771 for the 2010 options and 2009 options, respectively, using the Black-Scholes model and $2,480 for the 2008 options using the Monte Carlo model. The options are considered equity awards as they are settled through the issuance of common shares. As such, the options were valued as of the grant date and do not require subsequent remeasurement. There were several assumptions used to fair value the options including the expected volatility in the Company's common share price based upon the fluctuation in the Company's historical common share price. The more significant assumptions underlying the determination of fair value for options granted were as follows:
The Company recognized compensation expense relating to these options over an average of 5.0 years for the 2010 options and 2009 options and 3.6 years for the 2008 options. All deferred compensation costs relating to the outstanding options were fully amortized by December 31, 2015. The intrinsic value of an option is the amount by which the market value of the underlying common share at the date the option is exercised exceeds the exercise price of the option. The total intrinsic value of options exercised for the years ended December 31, 2018 and 2017 were $26 and $1,064, respectively. Share option activity during the years indicated is as follows:
As of December 31, 2018, the aggregate intrinsic value of options that were outstanding and exercisable was $91. Non-vested share activity for the years ended December 31, 2018 and 2017, is as follows:
During 2018 and 2017, the Company granted common shares to certain employees and trustees as follows:
In addition, during 2018, 2017 and 2016, the Company issued 66,318, 57,334, and 50,816, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $599, $596, and $427, respectively. As of December 31, 2018, of the remaining 3,455,077 non-vested shares, 1,495,608 are subject to time-based vesting and 1,959,469 are subject to performance-based vesting. At December 31, 2018, there are 4,012,870 awards available for grant. The Company has $7,915 in unrecognized compensation costs relating to the non-vested shares that will be charged to compensation expense over an average of approximately 2.1 years. The Company has established a trust for certain officers in which vested common shares granted for the benefit of the officers are deposited. The officers exert no control over the common shares in the trust and the common shares are available to the general creditors of the Company. As of December 31, 2018 and 2017, there were 427,531 common shares in the trust. The Company sponsors a 401(k) retirement savings plan covering all eligible employees. The Company makes a discretionary matching contribution on a portion of employee participant salaries and, based on its profitability, may make an additional discretionary contribution at each fiscal year end to all eligible employees. These discretionary contributions are subject to vesting under a schedule providing for 25% annual vesting starting with the first year of employment and 100% vesting after four years of employment. Approximately $397, $439 and $357 of contributions are applicable to 2018, 2017 and 2016, respectively. During 2018, 2017 and 2016, the Company recognized $6,901, $8,333 and $8,415, respectively, in expense relating to scheduled vesting and issuance of common share grants. |
Related Party Transactions |
12 Months Ended |
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Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has an indemnity obligation to Vornado Realty Trust ("VNO"), one of its significant shareholders, with respect to actions by the Company that affect Vornado Realty Trust's status as a REIT. All related party transactions are approved by the independent members of the Company's Board of Trustees or the Audit Committee as provided for in the Company's Code of Business Conduct and Ethics. The Company leased a property to an entity in which VNO, a significant shareholder, has an interest. During 2017 and 2016, the Company recognized $234 and $236, respectively, in rental revenue from this property. This property was sold in 2017. The Company leases its corporate office from an affiliate of Vornado Realty Trust. Rent expense for this property was $1,192, $1,179 and $1,176 in 2018, 2017 and 2016, respectively. In connection with efforts, on a non-binding basis, to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture investment in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provided that the Company will reimburse investors providing the funds for such financing if the following occurs: (1) the joint venture receives such funds, (2) the USCIS denies the financing solely because the project is not permitted under the EB-5 visa program, and (3) the joint venture fails to return such funds. During 2017, USCIS approved the project, and the guaranty terminated by its terms. In 2018, the joint venture obtained $8,500 of EB-5 mezzanine financing from an affiliate of the Company's Chairman. The joint venture reimbursed the Chairman's affiliate $150 for its expenses. Under an indemnity agreement, the joint venture is required to pay an affiliate of the Company's Chairman 0.625% of the outstanding principal amount of the EB-5 mezzanine financing per annum. In addition, during 2017, the Company obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina. In January 2018, the Company obtained an additional $500 of financing proceeds. The Company reimbursed the Chairman's affiliate approximately $105 for its expenses and paid a $128 structuring fee to the Chairman's affiliate. The property was subsequently contributed to, and the financing assumed by, NNN JV. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provision for income taxes relates primarily to the taxable income of the Company's taxable REIT subsidiaries. The earnings, other than in taxable REIT subsidiaries, of the Company are not generally subject to federal income taxes at the Company level due to the REIT election made by the Company. Income taxes have been provided for on the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities. The Company's provision for income taxes for the years ended December 31, 2018, 2017 and 2016 is summarized as follows:
The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:
For the years ended December 31, 2018, 2017 and 2016, the “other” amount is comprised primarily of state franchise taxes of $1,679, $1,598 and $1,252, respectively. A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2018, is as follows:
A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2018, is as follows:
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Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In addition to the commitments and contingencies disclosed elsewhere, the Company has the following commitments and contingencies. The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries. The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion but, no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement. From time to time, the Company is directly or indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations. Cummins Inc. v. Lexington Columbus (Jackson Street) L.P. and Wells Fargo Bank, N.A. (State of Indiana, County of Bartholomew, in the Bartholomew Superior Court). On October 25, 2018, Cummins Inc., the tenant in the Company's Columbus, Indiana office building, filed a complaint for declaratory relief against Lexington Columbus (Jackson Street) L.P., the Company's property owner subsidiary, and Wells Fargo Bank, N.A., the trustee for the noteholders with a security interest in the office building. Under the subject lease, Cummins Inc.’s tenancy extends through July 31, 2024, with options to further extend for additional time periods. Despite failing to timely exercise a purchase option for the office building that was expressly due by July 15, 2018, where time was of the essence, Cummins Inc. has asked the court for a declaration that it is entitled to purchase the building at the option price and to terminate the lease effective July 31, 2019. Cummins Inc. does not dispute that it failed to comply with the requirements of the purchase option, but alleges that it is entitled to relief under several equitable theories. Lexington Columbus (Jackson Street) L.P. filed a motion to dismiss the complaint on January 8, 2019. The Company believes that Indiana law supports the Company's right to retain ownership of the building, and the Company intends to vigorously defend this claim. As of December 31, 2018, the Company maintained an executive severance policy and entered into related agreements with certain of its executive officers whereby the Company's executives are entitled to severance benefits upon certain events. In January 2018, the Company entered into retirement agreements with two of its then executive officers. One of the retirement agreements provides for contingent payments, not to exceed $795, in 2020 following the receipt of certain incentive fees by the Company, if any. As of December 31, 2018, $89 of these contingent payments was earned. |
Supplemental Disclosure of Statement of Cash Flow Information |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information
In addition to disclosures discussed elsewhere, during 2018, 2017 and 2016, the Company paid $76,562, $75,069 and $87,692, respectively, for interest and $2,025, $2,340 and $1,240, respectively, for income taxes. During 2017 and 2016, the Company conveyed its interests in certain properties to its lenders in full satisfaction of the $12,616 and $21,582, respectively, non-recourse mortgage notes payable. In addition, during 2016, the Company sold its interests in certain properties, which included the assumption by the buyers of the related non-recourse mortgage debt in the aggregate amount of $242,269. |
Unaudited Quarterly Financial Data |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data
The sum of the quarterly income (loss) attributable to common shareholders and per common share amounts may not equal the full year amounts primarily because the computations of amounts allocated to participating securities and the weighted-average number of common shares of the Company outstanding for each quarter and the full year are made independently. |
Subsequent Events |
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Subsequent Events [Abstract] | |||||||||||||||||||||||||
Subsequent Events | Subsequent Events Subsequent to December 31, 2018 and in addition to disclosures elsewhere in the financial statements, the Company:
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation. The Company's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP. |
Variable Interest Entity | The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. |
Earnings Per Share | Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) reduced by preferred dividends and amounts allocated to certain non-vested share-based payment awards, if applicable, by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share amounts are similarly computed but include the effect, when dilutive, of in-the-money common share options and non-vested common shares, OP units and put options of certain convertible securities. |
Use of Estimates | Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments, valuation of derivative financial instruments, valuation of awards granted under compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. |
Fair Value Measurements | Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. |
Revenue Recognition | Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets. |
Acquisition of Real Estate | Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Prior to January 1, 2018, acquisition and pursuit costs were expensed as incurred and were included in property operating expense in the accompanying Consolidated Statement of Operations, which were $2,171 and $836 for 2017 and 2016, respectively. Effective January 1, 2018, the Company's acquisitions are primarily considered asset acquisitions and acquisition costs are now capitalized. The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions. Management generally retains a third party to assist in the allocations. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases. The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods. Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Company generally depreciates its real estate assets over periods ranging up to 40 years. |
Impairment of Real Estate | Impairment of Real Estate. The Company evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds its estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results. |
Investments in Non-Consolidated Entities | Investments in Non-Consolidated Entities. The Company accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Company's investment in the entity is insignificant and the Company has no influence over the control of the entity then the entity is accounted for under the cost method. |
Impairment of Equity Method Investments | Impairment of Equity Method Investments. The Company assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Company determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment, including the level of the Company's involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. |
Acquisition, Development and Construction Arrangements | Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Company records capitalized interest during the construction period. In arrangements where the Company engages a developer to construct a property or provide funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. |
Properties Held For Sale | Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. The operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations; if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties. |
Deferred Expenses | Deferred Expenses. Deferred expenses consist primarily of revolving line of credit debt and leasing costs. Debt costs are amortized using the straight-line method, which approximates the interest method, over the terms of the debt instruments and leasing costs are amortized over the term of the related lease. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company accounts for its interest rate swap agreements in accordance with FASB ASC Topic 815, Derivatives and Hedging ("Topic 815"). In accordance with Topic 815, these agreements are carried on the balance sheet at their respective fair values, as an asset if fair value is positive, or as a liability if fair value is negative. If the interest rate swap is designated as a cash flow hedge, the effective portion of the interest rate swap's change in fair value is reported as a component of other comprehensive income (loss); the ineffective portion, if any, is recognized in earnings as an increase or decrease to interest expense. Upon entering into hedging transactions, the Company documents the relationship between the interest rate swap agreement and the hedged item. The Company also documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities. The Company assesses, both at inception of a hedge and on an ongoing basis, whether or not the hedge is highly effective. The Company will discontinue hedge accounting on a prospective basis with changes in the estimated fair value reflected in earnings when (1) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions), (2) it is no longer probable that the forecasted transaction will occur or (3) it is determined that designating the derivative as an interest rate swap is no longer appropriate. The Company does and may continue to utilize interest rate swap and cap agreements to manage interest rate risk, but does not anticipate entering into derivative transactions for speculative trading purposes. |
Stock Compensation | Stock Compensation. The Company maintains an equity participation plan. Non-vested share grants generally vest either based upon (1) time, (2) performance and/or (3) market conditions. Options granted under the plan in 2010 vested over a five-year period and expire ten years from the date of grant. Options granted under the plan in 2008 vested upon attainment of certain market performance measures and expired ten years from the date of grant. All share-based payments to employees, including grants of employee stock options, are recognized in the Consolidated Statements of Operations based on their fair values. |
Tax Status | Tax Status. The Company has made an election to qualify, and believes it is operating so as to qualify, as a REIT for federal income tax purposes. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code. As such, the Company is subject to federal and state income taxes on the income from these activities. Income taxes, primarily related to the Company's taxable REIT subsidiaries, are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders. |
Environmental Matters | Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Company has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Company's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. |
Segment Reporting | Segment Reporting. The Company operates generally in one industry segment, single-tenant real estate assets. |
Reclassification | Reclassifications. Certain amounts included in prior years' financial statements have been reclassified to conform to the current year's presentation. |
Recently Issued Accounting Guidance | New Accounting Standards Adopted in 2018. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. Restricted cash balances are now included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. In addition, separate line items showing changes in restricted cash balances are now eliminated from the Company's consolidated statement of cash flows. These ASUs were effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted these ASUs effective January 1, 2018 on a retrospective basis. The effect of the adoption resulted in (1) a $109 and $4,537 change in cash flows from operating activities for 2017 and 2016, respectively, (2) a $(23,958) and $21,571 change in cash flows from investing activities for 2017 and 2016, respectively, and (3) a $(2,899) and $(5,603) change in cash flows from financing activities for 2017 and 2016, respectively. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU was effective for reporting periods beginning after December 15, 2017. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018 on a prospective basis. The Company's property acquisitions in 2018 were accounted for as asset acquisitions. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as subsequently amended, which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The new guidance was effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the adoption of the ASU did not have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The Company adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective approach, however there was no impact to prior balances as there were no open contracts at the date of adoption. During 2018, the Company entered into a transaction in which it contributed consolidated properties to a newly-formed joint venture and acquired a 20% interest in the joint venture. See note 7. Recently Issued Accounting Guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The Company expects the ASU to result in the recognition of a right-of-use asset and related liability to primarily account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. The Company estimates that its initial right-of-use asset and lease liability will be within a range of $35,000 to $45,000 at adoption. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components; however, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements in July 2018, which allows lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. Historically, the Company has capitalized lease commissions and "other" lease related costs, primarily legal expenses. Effective January 1, 2019, the Company will not capitalize these "other" costs, however, the Company does not believe these will be material. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption; however, under ASU 2018-11 companies may elect to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt this new guidance on January 1, 2019 utilizing the cumulative-effect adjustment outlined in ASU 2018-11. In addition, the Company will elect several practical expedients afforded to it at implementation. In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company's consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the Consolidated Balance Sheets as of December 31, 2018 and 2017:
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Earnings Per Share (Tables) |
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Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2018:
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Investments in Real Estate (Tables) |
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Schedule of Net Real Estate | The Company's real estate, net, consists of the following at December 31, 2018 and 2017:
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Schedule of Acquired Properties | The Company completed the following acquisitions and build-to-suit transactions during 2018 and 2017: 2018:
In addition, the Company acquired a 57-acre parcel of land from a non-consolidated joint venture and leased the parcel to a tenant to develop an industrial property. 2017:
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Dispositions and Impairment (Tables) |
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Schedule of Assets and Liabilities of Held for Sale Properties | Assets and liabilities of held for sale properties as of December 31, 2018 and 2017 consisted of the following:
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Fair Value Measurements (Tables) |
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Schedule of Fair Value Measurement Inputs | The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2018 and 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:
*Represents a non-recurring fair value measurement. Fair value as of the date of impairment. |
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Fair Value, by Balance Sheet Grouping | The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2018 and 2017:
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Investment in and Advances to Non-Consolidated Entities Investment in and Advances to Non-Consolidated Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advances to Affiliates | Below is a schedule of the Company's investments in and advances to non-consolidated entities:
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Mortgages and Notes Payable (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The Company had the following mortgages and notes payable outstanding as of December 31, 2018 and 2017:
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Schedule of Line of Credit Facilities | A summary of the significant terms, as of December 31, 2018, are as follows:
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Schedule of Maturities of Long-term Debt | Scheduled principal and balloon payments for mortgages, notes payable and term loan for the next five years and thereafter are as follows:
Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:
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Senior Notes, Convertible Notes and Trust Preferred Securities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The Company had the following Senior Notes outstanding as of December 31, 2018 and 2017:
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Schedule of Maturities of Long-term Debt | Scheduled principal and balloon payments for mortgages, notes payable and term loan for the next five years and thereafter are as follows:
Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:
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Derivatives and Hedging Activities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | As of December 31, 2018, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2018 and 2017.
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for 2018 and 2017:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments Receivable for Operating Leases | Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases | Minimum future rental payments under non-cancelable leasehold interests, excluding leases held through industrial revenue bonds and lease payments in the future that are based upon fair market value, for the next five years and thereafter are as follows:
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Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss | A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:
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Effects of Changes in the Company's Ownership Interests in Noncontrolling Interests | The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests:
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Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The more significant assumptions underlying the determination of fair value for options granted were as follows:
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Schedule of Share-based Compensation, Stock Options, Activity | Share option activity during the years indicated is as follows:
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Schedule of Nonvested Share Activity | Non-vested share activity for the years ended December 31, 2018 and 2017, is as follows:
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Schedule of Share-based Compensation, Activity | During 2018 and 2017, the Company granted common shares to certain employees and trustees as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The Company's provision for income taxes for the years ended December 31, 2018, 2017 and 2016 is summarized as follows:
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Statutory Accounting Practices Disclosure | The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:
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Summary of Average Taxable Nature of Dividends | A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2018, is as follows:
A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2018, is as follows:
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Supplemental Disclosure of Statement of Cash Flow Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures |
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Unaudited Quarterly Financial Data (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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The Company (Details) |
Dec. 31, 2018
Property
state
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of consolidated properties | Property | 135 |
Number of states in which entity has interests | state | 34 |
Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Real estate, net | $ 2,555,659 | $ 3,309,900 |
Total assets | 2,953,840 | 3,553,020 |
Mortgages and notes payable, net | 570,420 | 689,810 |
Total liabilities | 1,607,162 | 2,212,185 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Real estate, net | 509,916 | 682,587 |
Total assets | 607,963 | 766,025 |
Mortgages and notes payable, net | 192,791 | 212,792 |
Total liabilities | $ 203,322 | $ 226,331 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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BASIC | |||||||||||
Net income attributable to common shareholders | $ 220,838 | $ 79,067 | $ 89,109 | ||||||||
Weighted-average common shares outstanding - basic (in shares) | 236,666,375 | 237,758,408 | 233,633,058 | ||||||||
Net income attributable to common shareholders - basic (usd per share) | $ 0.10 | $ 0.91 | $ (0.01) | $ (0.07) | $ 0.12 | $ 0.02 | $ 0.02 | $ 0.17 | $ 0.93 | $ 0.33 | $ 0.38 |
DILUTED: | |||||||||||
Net income attributable to common shareholders - basic | $ 220,838 | $ 79,067 | $ 89,109 | ||||||||
Impact of assumed conversions | 2,528 | 147 | (159) | ||||||||
Net income attributable to common shareholders | $ 223,366 | $ 79,214 | $ 88,950 | ||||||||
Weighted-average common shares outstanding - basic (in shares) | 236,666,375 | 237,758,408 | 233,633,058 | ||||||||
Effect of dilutive securities: | |||||||||||
Unvested share-based payment awards and options (in shares) | 528,495 | 86,285 | 230,352 | ||||||||
Operating Partnership Units (in units) | 3,616,120 | 3,693,144 | 3,815,621 | ||||||||
Weighted-average common shares outstanding (in shares) | 240,810,990 | 241,537,837 | 237,679,031 | ||||||||
Net income (loss) attributable to common shareholders - per common share diluted (usd per share) | $ 0.10 | $ 0.90 | $ (0.01) | $ (0.07) | $ 0.12 | $ 0.02 | $ 0.02 | $ 0.17 | $ 0.93 | $ 0.33 | $ 0.37 |
Investments in Real Estate - Additional Information (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017
USD ($)
a
|
Dec. 31, 2018
USD ($)
a
|
|
Real Estate [Line Items] | ||
Below-market leases, net of accretion | $ 23,308 | $ 17,923 |
Future accretion, year 1 | 2,144 | |
Future accretion, year 2 | 2,118 | |
Future accretion, year 3 | 1,778 | |
Future accretion, year 4 | 1,499 | |
Future accretion, year 5 | $ 1,499 | |
Change in amount of contingent consideration | $ 3,922 | |
Etna GL 66 LLC [Member] | ||
Real Estate [Line Items] | ||
Area of land (in acres) | a | 151 | 57 |
Dispositions and Impairment - Schedule of Properties Held for Sale (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Discontinued Operations and Disposal Groups [Abstract] | ||
Real estate, at cost | $ 63,639 | $ 2,827 |
Real estate, intangible assets | 14,498 | 0 |
Accumulated depreciation and amortization | (16,873) | 0 |
Rent receivable - deferred | 2,439 | 0 |
Other | 165 | 0 |
Assets held for sale | 63,868 | 2,827 |
Other | 386 | 0 |
Liabilities held for sale | $ 386 | $ 0 |
Fair Value Measurements - Fair Value, by Balance Sheet Grouping (Details) - Fair Value Measurements Using Level 3 [Member] - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Amount [Member] | ||
Liabilities | ||
Debt, Carrying Amount | $ 1,492,483 | $ 2,068,867 |
Fair Value [Member] | ||
Liabilities | ||
Debt, Fair Value | $ 1,409,773 | $ 2,013,226 |
Mortgages and Notes Payable - Schedule of Mortgages and Notes Payable (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (5,094) | |
Mortgages and Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Mortgages and notes payable | 575,514 | $ 697,068 |
Unamortized debt issuance costs | (5,094) | (7,258) |
Long-term debt | $ 570,420 | $ 689,810 |
Mortgages and Notes Payable - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | |||
Debt satisfaction gains (charges), net | $ (2,596) | $ 6,196 | $ (975) |
Interest paid, capitalized | $ 15 | $ 1,174 | 4,933 |
Mortgages and Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 4.50% | 4.60% | |
Debt satisfaction gains (charges), net | $ (898) | $ 258 | $ (7) |
Minimum [Member] | Mortgages and Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Debt interest rate percentage | 2.20% | ||
Effective interest percentage | 2.20% | ||
Maximum [Member] | Mortgages and Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Debt interest rate percentage | 6.50% | ||
Effective interest percentage | 7.80% |
Mortgages and Notes Payable - Maturities of Long-term Debt (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Unamortized debt issuance costs | $ (5,094) |
Mortgages, Notes Payable, Credit Facility Borrowings, and Term Loans [Member] | |
Debt Instrument [Line Items] | |
2019 | 101,887 |
2020 | 55,143 |
2021 | 340,465 |
2022 | 22,120 |
2023 | 23,998 |
Thereafter | 331,901 |
Long-term debt, gross | 875,514 |
Unamortized debt issuance costs | (6,361) |
Long-term debt | $ 869,153 |
Senior Notes, Convertible Notes and Trust Preferred Securities - Schedule of Long-term Debt Instruments (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (5,094,000) | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt component | 500,000,000 | $ 500,000,000 |
Unamortized debt discounts | (1,235,000) | (1,507,000) |
Unamortized debt issuance costs | (2,731,000) | (3,295,000) |
Long-term debt | 496,034,000 | 495,198,000 |
Senior Notes [Member] | Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt component | $ 250,000,000 | 250,000,000 |
Debt interest rate percentage | 4.40% | |
Issue Price | 99.883% | |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt component | $ 250,000,000 | $ 250,000,000 |
Debt interest rate percentage | 4.25% | |
Issue Price | 99.026% |
Senior Notes, Convertible Notes and Trust Preferred Securities - Schedule of Maturities of Long-term Debt (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Unamortized debt issuance costs | $ (5,094) |
Senior Notes, Convertible Notes, and Trust Preferred Securities [Member] | |
Debt Instrument [Line Items] | |
2019 | 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 250,000 |
Thereafter | 379,120 |
Long-term debt, gross | 629,120 |
Unamortized debt discounts | (1,235) |
Unamortized debt issuance costs | (4,555) |
Long-term debt | $ 623,330 |
Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Minimum Future Rental Receipts [Abstract] | |||
2019 | $ 270,557 | ||
2020 | 253,660 | ||
2021 | 233,192 | ||
2022 | 212,893 | ||
2023 | 211,387 | ||
Thereafter | 1,619,848 | ||
Future Minimum Payments Receivable | 2,801,537 | ||
Leaseholds Interests [Member] | |||
Future Rental Payments [Abstract] | |||
2019 | 3,826 | ||
2020 | 3,827 | ||
2021 | 3,769 | ||
2022 | 3,834 | ||
2023 | 4,008 | ||
Thereafter | 28,326 | ||
Future Minimum Payments Due | 47,590 | ||
Rent expense for leasehold interests | 597 | $ 690 | $ 987 |
Corporate HQ and Office Space [Member] | |||
Future Rental Payments [Abstract] | |||
2019 | 1,295 | ||
2020 | 1,296 | ||
2021 | 1,325 | ||
2022 | 1,335 | ||
2023 | 1,304 | ||
Thereafter | 2,935 | ||
Rent expense for leasehold interests | $ 1,274 | $ 1,256 | $ 1,242 |
Equity - Schedule of Changes in AOCI (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Changes in Accumulated Other Comprehensive Income | ||
Balance at beginning of period | $ 1,340,835 | $ 1,412,491 |
Balance at end of period | 1,346,678 | 1,340,835 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Changes in Accumulated Other Comprehensive Income | ||
Balance at beginning of period | 1,065 | (1,033) |
Balance at end of period | 76 | 1,065 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||
Changes in Accumulated Other Comprehensive Income | ||
Other comprehensive income before reclassifications | 597 | 1,168 |
Amounts of (income) loss reclassified from accumulated other comprehensive income (loss) to interest expense | $ (1,586) | $ 930 |
Equity - Schedule of Effects of Changes in Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Equity [Abstract] | |||||||||||
Net income (loss) attributable to common shareholders | $ 23,796 | $ 216,190 | $ (3,327) | $ (15,957) | $ 29,235 | $ 3,916 | $ 5,519 | $ 40,397 | $ 227,415 | $ 85,583 | $ 95,624 |
Increase in additional paid-in-capital for redemption of noncontrolling OP units | 189 | 584 | 210 | ||||||||
Change from net income attributable to shareholders and transfers from noncontrolling interests | $ 227,604 | $ 86,167 | $ 95,834 |
Benefit Plans - Share Option Activity (Details) - Share Options [Member] - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of shares outstanding, beginning (in shares) | 134,790 | 406,241 |
Number of shares exercised (in shares) | (16,390) | (271,451) |
Number of shares outstanding, ending (in shares) | 118,400 | 134,790 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Price per share outstanding, beginning (usd per share) | $ 7.39 | $ 6.78 |
Price per share exercised (usd per share) | 6.99 | 6.48 |
Price per share outstanding, ending (usd per share) | $ 7.44 | $ 7.39 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Related Party Transaction [Line Items] | ||||
Rent revenue | $ 364,731 | $ 359,832 | $ 398,065 | |
Vorando Realty Trust [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rent revenue | 234 | 236 | ||
Rent expense for corporate headquarters | 1,192 | 1,179 | $ 1,176 | |
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Notes payable, related parties | $ 500 | $ 8,500 | $ 8,000 | |
Related party transaction, rate | 0.625% | |||
Affiliated Entity [Member] | Expense Reimbursement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 105 | $ 150 | ||
Affiliated Entity [Member] | Structuring Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 128 |
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Current: | |||
Federal | $ (60) | $ (107) | $ (140) |
State and local | (1,668) | (1,810) | (1,299) |
NOL utilized | 0 | 0 | 59 |
Deferred: | |||
Federal | 0 | 0 | (44) |
State and local | 0 | 0 | (15) |
Benefit (provision) for income taxes | $ (1,728) | $ (1,917) | $ (1,439) |
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
State taxes paid | $ 1,679 | $ 1,598 | $ 1,252 |
Income Taxes - Statutory Federal Income Tax (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Federal provision at statutory tax rate (21% for 2018 and 34% for 2017 and 2016) | $ (65) | $ (182) | $ (154) |
Federal tax rate | 21.00% | 34.00% | 34.00% |
State and local taxes, net of federal benefit | $ (11) | $ (40) | $ (30) |
Other | (1,652) | (1,695) | (1,255) |
Benefit (provision) for income taxes | $ (1,728) | $ (1,917) | $ (1,439) |
Commitments and Contingencies (Details) - Officer [Member] $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
retirement_agreement
| |
Loss Contingencies [Line Items] | |
Number of retirement agreements | retirement_agreement | 2 |
Maximum retirement agreement amount | $ 795 |
Retirement obligation earned | $ 89 |
Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Other Significant Noncash Transactions [Line Items] | |||
Cash and cash equivalents at beginning of period | $ 107,762 | $ 86,637 | $ 93,249 |
Cash and cash equivalents at end of period | 168,750 | 107,762 | 86,637 |
Restricted cash at beginning of period | 4,394 | 31,142 | 10,637 |
Restricted cash at end of period | 8,497 | 4,394 | 31,142 |
Cash, cash equivalents and restricted cash, at beginning of year | 112,156 | 117,779 | 103,886 |
Cash, cash equivalents and restricted cash, at end of year | 177,247 | 112,156 | 117,779 |
Interest paid | 76,562 | 75,069 | 87,692 |
Income taxes paid, net | $ 2,025 | 2,340 | 1,240 |
Conveyed Interest [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Mortgage loans on real estate, foreclosures | $ 12,616 | 21,582 | |
Interests Sold [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Loans assumed | $ 242,269 |
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 87,251 | $ 99,958 | $ 105,493 | $ 102,637 | $ 102,169 | $ 97,689 | $ 95,684 | $ 96,099 | $ 395,339 | $ 391,641 | $ 429,496 |
Net income | 25,674 | 220,850 | (795) | (14,823) | 31,448 | 5,596 | 7,365 | 42,220 | 230,906 | 86,629 | 96,450 |
Net income (loss) attributable to common shareholders | $ 23,796 | $ 216,190 | $ (3,327) | $ (15,957) | $ 29,235 | $ 3,916 | $ 5,519 | $ 40,397 | $ 227,415 | $ 85,583 | $ 95,624 |
Net income attributable to common shareholders - basic (usd per share) | $ 0.10 | $ 0.91 | $ (0.01) | $ (0.07) | $ 0.12 | $ 0.02 | $ 0.02 | $ 0.17 | $ 0.93 | $ 0.33 | $ 0.38 |
Net income (loss) attributable to common shareholders - per common share diluted (usd per share) | $ 0.10 | $ 0.90 | $ (0.01) | $ (0.07) | $ 0.12 | $ 0.02 | $ 0.02 | $ 0.17 | $ 0.93 | $ 0.33 | $ 0.37 |
Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands |
2 Months Ended |
---|---|
Mar. 12, 2019
USD ($)
property
$ / shares
shares
| |
Subsequent Event [Line Items] | |
Proceeds from sale of real estate | $ 79,300 |
Number of real estate properties acquired | property | 2 |
Payments to acquire real estate | $ 58,000 |
Repurchase of common shares (in shares) | shares | 441,581 |
Average cost per share (usd per share) | $ / shares | $ 8.13 |
Common stock dividends declared (usd per share) | $ / shares | $ 0.1025 |
Richland, Washington [Member] | Scenario, Forecast [Member] | |
Subsequent Event [Line Items] | |
Payments to acquire real estate | $ 67,000 |