NEW YORK, Jan. 7, 2014 (GLOBE NEWSWIRE) -- Lexington Realty Trust ("Lexington") (NYSE: LXP ), a real estate investment trust (REIT) focused on single-tenant real estate investments, announced the following update on fourth quarter transaction activity, some of which was previously announced.
"In the fourth quarter 2013, we saw a meaningful acceleration in acquisition and investment activity, which contributed to strong overall transaction activity of $717.6 million for the year ended December 31, 2013, including on-going build-to-suit and loan investments," stated T. Wilson Eglin, President and Chief Executive Officer of Lexington. "Further, we achieved strong leasing activity throughout the year including approximately 475,000 square feet of office and multi-tenant leases in the fourth quarter, resulting in 97.6% of our portfolio leased at year end. As a result of our investment and leasing activity, almost half of our single-tenant properties have leases with annual escalations."
Investment Activity
| ACQUISITIONS AND COMPLETED BUILD-TO-SUIT TRANSACTIONS | |||||||
| Tenant | Location | Property Type | Initial Basis ($000) | Initial Annualized Cash Rent ($000) | Initial Cash Yield | Estimated GAAP Yield | Lease Expiration |
| Various – 3 properties | New York, NY | Land | $302,000 | $14,883 | 4.9% | 15.2% | 10/2112 |
| Home Depot USA, Inc. | Danville, VA | Land | 4,727 | 260 | 5.5% | 4.6% | 01/2029 |
| BluePearl Holdings, Inc. 1 | Various | Office | 39,456 | 2,716 | 6.9% | 8.2% | 10/2033 |
| BluePearl Holdings, Inc. 2 | Various | Office | 13,144 | 891 | 6.8% | 6.8% | 12/2033 |
| Gander Mountain, Inc. | Albany, GA | Retail | 7,412 | 671 | 9.1% | 10.0% | 11/2028 |
| The Gavilon Group, LLC | Omaha, NE | Office | 39,125 | 2,770 | 7.1% | 8.5% | 11/2033 |
| $405,864 | $22,191 | 5.5% | 13.4% | ||||
| 1 Lexington has a 15% interest in these six properties. |
| 2 Lexington has a 100% interest in these four properties. |
| ON-GOING BUILD-TO-SUIT PROJECTS | ||||||
| Location | Sq. Ft | Property Type | Lease Term (Years) | Maximum Commitment/Estimated Completion Cost ($000) | GAAP Investment Balance as of 12/31/2013 ($000) | Estimated Completion Date |
| Rantoul, IL | 813,000 | Industrial | 20 | $42,587 | $37,437 | 1Q 14 |
| Bingen, WA | 124,000 | Industrial | 12 | 18,898 | 6,186 | 2Q 14 |
| Las Vegas, NV | 180,000 | Industrial | 20 | 29,585 | 14,457 | 3Q 14 |
| Richmond, VA | 279,000 | Office | 15 | 98,644 | 15,632 | 3Q 15 |
| 1,396,000 | $189,714 | $73,712 | ||||
| FORWARD COMMITMENTS | |||||||
| Tenant | Location | Property Type | Estimated Acquisition Cost ($000) | Estimated Completion Date | Estimated Initial Cash Yield | Estimated GAAP Yield | Lease Term (Years) |
| Calsonic Kansei NA, Inc. | Lewisburg, TN | Industrial | $12,767 | 2Q 14 | 8.6% | 9.3% | 12 |
| LOAN INVESTMENT | ||||||
| Tenant | Location | Property Type | Estimated Loan Amount ($000) | Funded as of 12/31/13 ($000) | Interest Rate | Maturity Date |
| The Kennewick Public Hospital District | Kennewick, WA | Hospital | $85,000 | $35,376 | 9.0% | May 2022 |
Capital Recycling
| PROPERTY DISPOSITIONS | |||||
| Tenant | Location | Property Type | Gross Sale Price ($000) | Annualized NOI ($000) | Month of Disposition |
| Moran Foods, Inc. | Port Orchard, WA | Retail | $ 100 | $ 52 | Oct-13 |
| Toys-R-Us, Inc. | Lynnwood, WA | Retail | 1,436 | 140 | Nov-13 |
| Toys-R-Us, Inc. | Clackamas, OR | Retail | 479 | 49 | Nov-13 |
| Various | Hebron, KY | Multi-office | 4,400 | 228 | Dec-13 |
| Various 1 | Atlanta, GA | Office | 40,356 | 1,081 | Dec-13 |
| $46,771 | $1,550 | ||||
| 1. Purchaser acquired parent entity and, as a result, assumed a $40.4 million non-recourse mortgage. |
Balance Sheet
In December 2013, Lexington obtained $213.5 million of non-recourse secured financing on the three New York, New York land parcels acquired in the fourth quarter of 2013 and included in the above transaction activity table. The loan bears interest at a fixed rate of 4.66% and matures in 13 years.
Lexington borrowed $87.0 million on its five-year unsecured term loan and swapped the LIBOR component of such borrowing for a current fixed interest rate of 2.64%. At year end 2013, Lexington had $99.0 million available under the term loan facility, which must be drawn by February 12, 2014.
The proceeds from these financings were used to satisfy amounts outstanding on Lexington's $400.0 million unsecured revolving credit facility, resulting in $48.0 million outstanding as of December 31, 2013.
Leasing
| LEASE EXTENSIONS | |||||
| Location | Prior Term | Lease Expiration Date | Sq. Ft. | ||
| Office/ Multi-Tenant | |||||
| 1 | Johnson City | TN | 11/2013 | 11/2014 | 5,618 |
| 2 | Bridgeton | MO | 12/2013 | 12/2018 | 25,515 |
| 3 | McDonough | GA | 06/2015 | 06/2025 | 111,911 |
| 4 | Atlanta | GA | 12/2014 | 12/2019 | 6,260 |
| 5 | Atlanta | GA | 12/2014 | 12/2019 | 3,900 |
| 6 | Chamblee | GA | 12/2014 | 12/2019 | 4,565 |
| 7 | Cummings | GA | 12/2014 | 12/2019 | 14,208 |
| 8 | Forest Park | GA | 12/2014 | 12/2019 | 14,859 |
| 9 | Jonesboro | GA | 12/2014 | 12/2019 | 4,894 |
| 10 | Stone Mountain | GA | 12/2014 | 12/2019 | 5,704 |
| 11 | Lisle | IL | 11/2014 | 02/2018 | 7,535 |
| 11 | Total lease extensions | 204,969 | |||
| NEW LEASES | |||||
| Location | Lease Expiration Date | Sq. Ft. | |||
| Office/ Multi-Tenant | |||||
| 1 | Antioch | TN | 12/2014 | 60,000 | |
| 2 | Pascagoula | MS | 10/2018 | 94,841 | |
| 3 | Arlington | TX | 01/2025 | 111,409 | |
| 3 | Total new leases | 266,250 | |||
| 14 | TOTAL NEW AND EXTENDED LEASES | 471,219 | |||
Common Share Dividend/Unit Distribution
During the fourth quarter of 2013, Lexington declared a regular quarterly dividend/distribution for the quarter ended December 31, 2013 of $0.165 per common share/unit, a 10% increase over the previous quarterly rate, which is payable on January 15, 2014 to common shareholders/unitholders of record as of December 31, 2013.
ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust is a real estate investment trust that owns a diversified portfolio of equity and debt interests in single-tenant commercial properties and land. Lexington seeks to expand its portfolio through acquisitions, sale-leaseback transactions, build-to-suit arrangements and other transactions. A majority of these properties and all land interests are subject to net or similar leases, where the tenant bears all or substantially all of the operating costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. Lexington also provides investment advisory and asset management services to investors in the single-tenant area. Lexington common shares are traded on the New York Stock Exchange under the symbol "LXP". Additional information about Lexington is available on-line at www.lxp.com or by contacting Lexington Realty Trust, Investor Relations, One Penn Plaza, Suite 4015, New York, New York 10119-4015.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington's control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those factors and risks detailed in Lexington's periodic filings with the SEC. Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.
References to Lexington refer to Lexington Realty Trust and its consolidated subsidiaries. All interests in properties and loans are held through special purpose entities, which are separate and distinct legal entities, but consolidated for financial statement purposes and/or disregarded for income tax purposes.
Investor or Media Inquiries, T. Wilson Eglin, CEO Lexington Realty Trust Phone: (212) 692-7200 E-mail:
