Lexington Realty Trust Reports First Quarter 2020 Results

5/7/20

NEW YORK, May 07, 2020 (GLOBE NEWSWIRE) -- Lexington Realty Trust (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the first quarter ended March 31, 2020.

First Quarter 2020 Highlights

  • Recorded Net Income attributable to common shareholders of $16.5 million, or $0.06 per diluted common share.
  • Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $49.3 million, or $0.19 per diluted common share.
  • Acquired four industrial properties for an aggregate cost of $195.5 million.
  • Disposed of two office properties for an aggregate gross price of $29.6 million.
  • Raised net proceeds of $17.3 million by issuing approximately 1.6 million common shares through the ATM program at an average price of $11.24 per share.
  • Repurchased 1.3 million common shares at an average price of $8.28 per share.
  • Completed 337 thousand square feet of new lease and lease extensions.
  • Increased industrial portfolio to 83.2% of gross real estate assets.

Subsequent Events

  • Collected 99.8% of April 2020 Cash Base Rents.
  • Raised net proceeds of $37.1 million by issuing approximately 3.8 million common shares through the ATM program.
  • Acquired one industrial asset for a cost of approximately $34.7 million.
  • Sold one office property for a gross sales price of $10.7 million.

Adjusted Company FFO is a non-GAAP financial measure. It and certain other non-GAAP financial measures are defined and reconciled later in this press release.

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, “Our portfolio has performed well during the Covid-19 pandemic, demonstrating resilience that is a hallmark of our investment strategy. In this environment, we believe investment opportunities are likely to be more favorable than they have been in the recent past and we plan to use disposition proceeds, retained cash flow, our balance sheet flexibility and access to capital to grow our industrial portfolio. Furthermore, the pandemic has accelerated e-commerce growth, demonstrated the value of more resilient supply chains, and increased the possibility of greater domestic production of goods going forward. These trends bode well for our industrial growth strategy.”

COVID-19 RENT UPDATE

As of May 6, 2020, 99.8% of April Cash Base Rents have been paid. Information regarding historical collections should not be considered an indication of expected future collections.

Lexington has received rent relief requests from certain tenants. The amount of rent relief requests Lexington has received represented 5.5% of its 2019 annual Cash Base rents. Lexington estimates the portion of tenants warranting relief represented less than 1% of its 2019 annual Cash Base Rents. Lexington is currently evaluating these requests, but, absent material tenant defaults, Lexington does not expect any material impact to its rental revenues resulting from rent relief requests. However, Lexington can give no assurances on the outcomes of the negotiation of rent relief requests, the success of any tenant’s financial prospects or the amount of relief requests that it will ultimately receive or grant.

FINANCIAL RESULTS

Revenues

For the quarter ended March 31, 2020, total gross revenues were $80.8 million, compared with total gross revenues of $81.2 million for the quarter ended March 31, 2019. The decrease is primarily attributable to sales, partially offset by property acquisitions and higher fee income.

Net Income Attributable to Common Shareholders

For the quarter ended March 31, 2020, net income attributable to common shareholders was $16.5 million, or $0.06 per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2019 of $26.4 million, or $0.11 per diluted share.

Adjusted Company FFO

For the quarter ended March 31, 2020, Lexington generated Adjusted Company FFO of $49.3 million, or $0.19 per diluted share, compared to Adjusted Company FFO for the quarter ended March 31, 2019 of $47.2 million, or $0.20 per diluted share.

Dividends/Distributions

As previously announced, during the first quarter of 2020, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March 31, 2020 of $0.1050 per common share/unit, which was paid on April 15, 2020 to common shareholders/unitholders of record as of March 31, 2020. Lexington also declared a cash dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended March 31, 2020, which is expected to be paid on May 15, 2020 to Series C Preferred Shareholders of record as of April 30, 2020.

BALANCE SHEET/CAPITAL MARKETS

During the first quarter of 2020, Lexington issued 1.6 million common shares under its ATM program raising net proceeds of $17.3 million. During the second quarter of 2020, Lexington issued an additional 3.8 million common shares under its ATM program raising net proceeds of $37.1 million.

In the first quarter of 2020, Lexington repurchased 1.3 million common shares at an average price of $8.28 per share under its share repurchase authorization. As of March 31, 2020, there were approximately 9.0 million common shares remaining to be repurchased under the authorization.

Year to date, Lexington has issued approximately 4.0 million common shares, net, at an average price of $11.06 per share.

During the first quarter, Lexington borrowed $130.0 million on its unsecured revolving credit facility. As of the date of this earnings release, Lexington has $470.0 million of availability under its unsecured revolving credit facility subject to covenant compliance.

2020 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2020 will be within an expected range of $0.77 to $0.80 per diluted common share.

Additionally, Lexington is reaffirming that its Adjusted Company FFO for the year ended December 31, 2020 is expected to be within a range of $0.74 to $0.77 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions. For more information, including Lexington's Quarterly Supplemental Information package, or to follow Lexington on social media, visit www.lxp.com.