Lexington Corporate Properties Trust Closes Financings Totaling $27.6 Million And Establishes New $35.0 Million Credit Facility

Additional Financing of $32.5 Million Planned



Apr 02, 2001, 01:00 ET from Lexington Corporate Properties Trust

    NEW YORK, Monday, April 2 /PRNewswire/ -- Lexington Corporate Properties
 Trust (NYSE:   LXP) ("Lexington"), a real estate investment trust, today
 announced that it has raised $27.6 million in two financings involving its
 Kmart distribution facility in Warren, Ohio and its Honeywell office property
 in Glendale, Arizona.  The Company also announced that it had obtained a
 $35.0 million unsecured revolving credit facility to replace its credit line
 maturing in July, 2001.  In addition, Lexington announced plans to raise an
 additional $32.5 million through first mortgages on its Decatur, Georgia;
 Auburn Hills, Michigan and Milpitas, California Properties.
 
     Warren, Ohio Property
     Lexington obtained $12.5 million of second mortgage financing which bears
 interest at a floating interest rate that is presently 8.83%, requires
 quarterly interest only payments, and matures on September 30, 2007.  The
 Warren, Ohio property, net-leased to Kmart through September 30, 2007, is
 subject to a 7.0% first mortgage of $33.6 million, which fully amortizes over
 the remaining lease term.
 
     Glendale, Arizona Property
     Lexington obtained a $15.1 million first mortgage secured by its Glendale,
 Arizona property.  The loan bears interest at a fixed rate of 7.4%, matures in
 April, 2011 and requires annual payments of $1.26 million, or 8.3% of the
 amount borrowed.  The property is net-leased to Honeywell, Inc., through
 July 15, 2006.
 
     New Credit Facility
     The Company also announced that it had closed on a $35.0 million unsecured
 revolving credit facility to replace its $60 million unsecured credit facility
 maturing in July, 2001.  The credit facility has a three year term and bears
 interest at 150-250 basis points over LIBOR, depending on the number of
 properties Lexington owns free and clear of mortgage debt.  As of March 30,
 2001, $22.8 million was outstanding under the line at a 6.46% interest rate.
 
     Additional Financings Planned
     Lexington plans on raising an additional $32.5 million in the second
 quarter through mortgage financing on three properties.  Proceeds are expected
 to be used to fund joint venture acquisitions and for general corporate
 purposes including repaying amounts outstanding under the Company's revolving
 credit facility.
 
     Comments From Management
     Commenting on Lexington's financing activities, T. Wilson Eglin, Chief
 Operating Officer said, "The recent decline in both long and short-term
 interest rates created an opportunity for Lexington to add inexpensive capital
 to our balance sheet.  Furthermore, our ability to raise a total of
 $60.1 million in property specific financings illustrates how the value of
 these properties has increased.  These financings will allow us to
 substantially pay down our bank line, invest $18.5 million in order to
 complete our first institutional joint venture program, and create balance
 sheet capacity to make investments in excess of our previously announced
 targets for 2001."
     Patrick Carroll, Lexington's Chief Financial Officer, added, "In addition
 to creating liquidity for investment, these financings improve our balance
 sheet by extending our weighted average debt maturity and addressing the
 majority of our near-term financing needs.  We have just $11.6 million of debt
 maturing in the next two years.  In each case we expect to be able to create
 excess proceeds for reinvestment when these mortgages are refinanced."
 
     About Lexington
     Lexington Corporate Properties Trust is a real estate investment trust
 that owns and manages office, industrial and retail properties net-leased to
 major corporations throughout the United States.  Lexington common shares
 closed Friday, March 30, 2001 at $12.90 per share.   Lexington Realty
 Advisors, Inc., an affiliate of Lexington, provides investment advisory and
 asset management services to investors in the net lease area.  Lexington pays
 an annualized dividend of $1.24 per share and has approximately 19.4 million
 convertible preferred and common shares outstanding and approximately
 5.5 million operating partnership units outstanding, which are convertible
 into common shares.  Additional information about Lexington is available at
 www.lxp.com .
 
     This release contains certain forward-looking statements which involve
 known and unknown risks, uncertainties or other factors not under the
 Company's control which may cause actual results, performance or achievements
 of the Company 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 detailed in the Company's periodic
 filings with the Securities and Exchange Commission.
 
     For more information on Lexington Corporate Properties Trust, via fax at
 no cost, simply dial 1-800-PRO-INFO and enter the ticker symbol LXP.
 
 

SOURCE Lexington Corporate Properties Trust
    NEW YORK, Monday, April 2 /PRNewswire/ -- Lexington Corporate Properties
 Trust (NYSE:   LXP) ("Lexington"), a real estate investment trust, today
 announced that it has raised $27.6 million in two financings involving its
 Kmart distribution facility in Warren, Ohio and its Honeywell office property
 in Glendale, Arizona.  The Company also announced that it had obtained a
 $35.0 million unsecured revolving credit facility to replace its credit line
 maturing in July, 2001.  In addition, Lexington announced plans to raise an
 additional $32.5 million through first mortgages on its Decatur, Georgia;
 Auburn Hills, Michigan and Milpitas, California Properties.
 
     Warren, Ohio Property
     Lexington obtained $12.5 million of second mortgage financing which bears
 interest at a floating interest rate that is presently 8.83%, requires
 quarterly interest only payments, and matures on September 30, 2007.  The
 Warren, Ohio property, net-leased to Kmart through September 30, 2007, is
 subject to a 7.0% first mortgage of $33.6 million, which fully amortizes over
 the remaining lease term.
 
     Glendale, Arizona Property
     Lexington obtained a $15.1 million first mortgage secured by its Glendale,
 Arizona property.  The loan bears interest at a fixed rate of 7.4%, matures in
 April, 2011 and requires annual payments of $1.26 million, or 8.3% of the
 amount borrowed.  The property is net-leased to Honeywell, Inc., through
 July 15, 2006.
 
     New Credit Facility
     The Company also announced that it had closed on a $35.0 million unsecured
 revolving credit facility to replace its $60 million unsecured credit facility
 maturing in July, 2001.  The credit facility has a three year term and bears
 interest at 150-250 basis points over LIBOR, depending on the number of
 properties Lexington owns free and clear of mortgage debt.  As of March 30,
 2001, $22.8 million was outstanding under the line at a 6.46% interest rate.
 
     Additional Financings Planned
     Lexington plans on raising an additional $32.5 million in the second
 quarter through mortgage financing on three properties.  Proceeds are expected
 to be used to fund joint venture acquisitions and for general corporate
 purposes including repaying amounts outstanding under the Company's revolving
 credit facility.
 
     Comments From Management
     Commenting on Lexington's financing activities, T. Wilson Eglin, Chief
 Operating Officer said, "The recent decline in both long and short-term
 interest rates created an opportunity for Lexington to add inexpensive capital
 to our balance sheet.  Furthermore, our ability to raise a total of
 $60.1 million in property specific financings illustrates how the value of
 these properties has increased.  These financings will allow us to
 substantially pay down our bank line, invest $18.5 million in order to
 complete our first institutional joint venture program, and create balance
 sheet capacity to make investments in excess of our previously announced
 targets for 2001."
     Patrick Carroll, Lexington's Chief Financial Officer, added, "In addition
 to creating liquidity for investment, these financings improve our balance
 sheet by extending our weighted average debt maturity and addressing the
 majority of our near-term financing needs.  We have just $11.6 million of debt
 maturing in the next two years.  In each case we expect to be able to create
 excess proceeds for reinvestment when these mortgages are refinanced."
 
     About Lexington
     Lexington Corporate Properties Trust is a real estate investment trust
 that owns and manages office, industrial and retail properties net-leased to
 major corporations throughout the United States.  Lexington common shares
 closed Friday, March 30, 2001 at $12.90 per share.   Lexington Realty
 Advisors, Inc., an affiliate of Lexington, provides investment advisory and
 asset management services to investors in the net lease area.  Lexington pays
 an annualized dividend of $1.24 per share and has approximately 19.4 million
 convertible preferred and common shares outstanding and approximately
 5.5 million operating partnership units outstanding, which are convertible
 into common shares.  Additional information about Lexington is available at
 www.lxp.com .
 
     This release contains certain forward-looking statements which involve
 known and unknown risks, uncertainties or other factors not under the
 Company's control which may cause actual results, performance or achievements
 of the Company 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 detailed in the Company's periodic
 filings with the Securities and Exchange Commission.
 
     For more information on Lexington Corporate Properties Trust, via fax at
 no cost, simply dial 1-800-PRO-INFO and enter the ticker symbol LXP.
 
 SOURCE  Lexington Corporate Properties Trust