Lexington Realty Trust Reports Fourth Quarter 2009 Results
NEW YORK, Feb. 24 /PRNewswire-FirstCall/ -- Lexington Realty Trust ("Lexington") (NYSE: LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the fourth quarter ended December 31, 2009.
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Fourth Quarter 2009 Highlights
- Generated Company Funds From Operations ("Company FFO") of $32.5 million or $0.25 per diluted share/unit, adjusted for certain items.
- Reduced overall debt by $72.6 million.
- Executed 20 new and renewal leases, totaling approximately 1.1 million square feet.
- Raised approximately $35.7 million through property and joint venture investment sales.
- Completed a 20 year sale/leaseback transaction on a 128,000 square foot office facility for $10.5 million.
- Recorded non-cash income of $4.6 million related to a previously disclosed forward equity commitment and impairment charges of $60.8 million on real estate.
T. Wilson Eglin, President and Chief Executive Officer of Lexington stated, "Our efforts to strengthen Lexington's financial flexibility continued in the fourth quarter as we once again successfully recycled capital through asset sales, further reducing our debt by an additional $72.6 million and bringing total debt reduction in 2009 to $305.6 million. We also had another strong quarter of leasing with 1.1 million square feet leased, raising our total to 3.8 million square feet leased for 2009. We believe our portfolio continues to perform well with overall portfolio occupancy of approximately 92.0% at year end. Building on our success, we have already retired an additional $116.1 million in debt in the first quarter of 2010, which would have matured in the next two years, primarily by utilizing the proceeds of our successful offering of 6.00% Convertible Notes. During 2010, we expect to remain focused on selling our non-core retail and multi-tenant properties and further deleveraging our balance sheet while being opportunistic with respect to new investments."
FINANCIAL RESULTS | |
Revenues
For the quarter ended December 31, 2009, total gross revenues were $90.1 million, compared with total gross revenues of $98.6 million for the quarter ended December 31, 2008.
Company FFO Applicable to Common Shareholders/Unitholders
The following presents in tabular form items excluded from Company FFO
for the periods presented:
Three Months Ended Twelve Months Ended
------------------------------- -------------------------------
Dec 31 Per Dec 31, Per Dec 31, Per Dec 31 Per
2009 Diluted 2008 Diluted 2009 Diluted 2008 Diluted
Millions Share/ Millions Share/ Millions Share/ Millions Share/
(1) Unit (1) Unit (1) Unit (1) Unit
------- ------- ------- ------- ------- ------- ------- -------
Reported
Company
FFO(A) $(17.0) $(0.13) $37.7 $0.34 $(56.0) $(0.46) $196.5 $1.81
======= ===== ======= =====
Severance
charges — — — 2.0
New
accounting
pronoun-
cements 0.3 0.8 1.3 3.6
Formation
costs –
joint
venture — — — 1.1
Debt
satisf-
action,
net (7.0) (27.8) (28.5) (62.8)
Debt
satisf-
action,
net –
Concord — (1.5) — (7.8)
Forward
equity
commit-
ment (4.6) 2.1 (7.2) 2.1
Impairment
losses –
real
estate 60.8 12.8 99.6 16.5
Impairment
losses –
invest-
ments — — 1.6 —
Impairment
losses/
reserves
- Concord — 19.8 71.4 52.4
Equity
impairment
- Concord — — 68.2 —
Impairment
loss
- JV — — 6.5 1.1
Lease
termination/
deferred
maintenance
payments — — (3.2) (34.9)
Land
transaction
income,
net — — (1.3) —
----- ----- ----- ----- ------ ----- ------ -----
$32.5 $0.25 $43.9 $0.40 $152.4 $1.29 $169.8 $1.57
(B) (B) (B) (B)
===== ===== ===== ===== ====== ===== ====== =====
(A) See the last page of this press release for a reconciliation of GAAP
net income (loss) to Company FFO.
(B) Per diluted share/unit reflects the impact of net shares retired upon
the assumed settlement of the forward equity commitment of
(3,162,470), (1,407,609), (2,356,328) and (353,825) for the three
months ended December 31, 2009 and 2008 and the twelve months ended
December 31, 2009 and 2008, respectively.
Net Loss Attributable to Common Shareholders
For the quarter ended December 31, 2009, net loss attributable to common shareholders was ($52.2) million, or a loss of ($0.43) per diluted share, compared with net loss attributable to common shareholders for the quarter ended December 31, 2008 of ($20.4) million, or a loss of ($0.23) per diluted share.
Financing Activities and Balance Sheet Update
Lexington reduced its consolidated debt during the fourth quarter of 2009 by approximately $72.6 million, including retiring $17.6 million of original principal amount of its 5.45% Exchangeable Notes. During 2009, Lexington reduced the amount of its 5.45% Exchangeable Notes outstanding from $211.0 million to approximately $87.7 million. Subsequent to year end, Lexington retired an additional $23.0 million of its 5.45% Exchangeable Notes, bringing the balance to approximately $64.7 million. In addition, the availability under the revolving portion of Lexington's secured credit facility was increased from $125.0 million to $150.0 million, following the addition of a new bank to the syndicate of lenders and no amounts are currently outstanding.
Common Share Dividend
On November 18, 2009, Lexington announced that it declared a regular common share dividend for the quarter ending December 31, 2009 of $0.10 per common share which was paid in cash on January 15, 2010 to common shareholders of record on December 31, 2009.
OPERATING ACTIVITIES | |
Dispositions
During the fourth quarter of 2009, Lexington sold or disposed of its interests in eight properties to unrelated parties for an aggregate disposition price of approximately $45.7 million. Prior to disposition, the properties generated annualized net operating income of approximately $1.7 million or 3.7% of the aggregate disposition price. In addition, Lexington sold its interest in two joint venture investments generating approximately $12.6 million in net proceeds.
Acquisitions
On December 31, 2009, Lexington acquired a property in Greenville, South Carolina for $10.5 million, consisting of a three-story 106,306 square foot office building and a one-story 21,735 square foot annex building on an approximately 8.0 acre parcel. At closing, the property was net-leased to Canal Insurance Company for 20 years at an initial capitalization rate of 8.60%, with 2.35% rent increases annually during the first ten years and CPI rent increases subject to a floor of 2.0% and a ceiling of 4.0% during the remainder of the term. Canal Insurance Company has an option to purchase the property on the fifth anniversary of the lease commencement at fair market value, but not less than $10.7 million and no greater than $11.6 million. If Canal Insurance Company fails to exercise its purchase option, Lexington has the right to require Canal Insurance Company to purchase the property for approximately $10.7 million.
Canal Insurance Company is an underwriter and provider of property/casualty insurance, primarily for the commercial trucking industry. Canal Insurance Company is rated A(PI) by Standard & Poor's and A+ by A.M. Best.
Leasing Activity
During the fourth quarter of 2009, Lexington executed 20 new and extended leases for approximately 1.1 million square feet and ended the year with portfolio occupancy of approximately 92.0%.
2010 EARNINGS GUIDANCE | |
Lexington estimates that Company FFO will be $0.93 to $0.97 per diluted share/unit for the year ended December 31, 2010. This guidance is forward looking, excludes the impact of certain items, is based on current expectations, and a diluted share count of 145.4 million, which includes 16.2 million common shares underlying the recent issue of $115.0 million of 6.00% Convertible Notes.
4TH QUARTER 2009 CONFERENCE CALL | |
Lexington will host a conference call today, Wednesday, February 24, 2010, at 11:00 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2009. Interested parties may participate in this conference call by dialing (800) 946-0708 or (719) 457-2615. A replay of the call will be available through March 10, 2010, at (888) 203-1112 or (719) 457-0820, Replay Pin Number: 4153488. A live web cast of the conference call will be available at www.lxp.com within the Investor Relations section.
ABOUT LEXINGTON REALTY TRUST | |
Lexington Realty Trust is a real estate investment trust that owns, invests in, and manages office, industrial and retail properties net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington 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, One Penn Plaza, Suite 4015, New York, New York 10119-4015, Attention: Investor Relations.
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. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in Lexington's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the failure to continue to qualify as a real estate investment trust, (2) changes in general business and economic conditions, including the impact of the current global financial and credit crisis, (3) competition, (4) increases in real estate construction costs, (5) changes in interest rates, or (6) changes in accessibility of debt and equity capital markets. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's website at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "estimates," "projects", "is optimistic" or similar expressions. 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.
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Twelve Months ended December 31, 2009 and 2008
(Unaudited and in thousands, except share and per share data)
Three months ended Year ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Gross Revenues:
Rental $79,566 $87,024 $334,224 $376,760
Advisory and
incentive fees 388 360 1,822 1,432
Tenant
reimbursements 10,116 11,186 40,575 39,957
----------- ---------- ----------- ----------
Total gross
revenues 90,070 98,570 376,621 418,149
Expense applicable
to revenues:
Depreciation and
amortization (42,357) (47,542) (174,119) (228,542)
Property operating (20,917) (20,786) (83,343) (75,182)
General and administrative (5,706) (5,054) (23,586) (30,497)
Non-operating income 1,166 1,830 8,117 24,407
Interest and
amortization expense (32,110) (35,943) (131,629) (152,904)
Debt satisfaction
gains, net 155 24,346 17,023 59,710
Change in value of
forward equity commitment 4,586 (2,128) 7,182 (2,128)
Impairment charges
and loan losses (25,773) - (27,350) -
Gains on sale
-affiliates - - - 31,806
----------- ---------- ----------- ----------
Income (loss) before
provision for income
taxes, equity in
earnings (losses) of
non-consolidated
entities and
discontinued
operations (30,886) 13,293 (31,084) 44,819
Provision for
income taxes (727) (380) (2,378) (2,985)
Equity in earnings
(losses) of
non-consolidated
entities 7,637 (20,134) (123,176) (43,305)
----------- ---------- ----------- ----------
Loss from continuing
operations (23,976) (7,221) (156,638) (1,471)
----------- ---------- ----------- ----------
Discontinued
operations:
Income (loss) from
discontinued
operations 368 (506) (1,345) (1,162)
Provision for
income taxes (9) (168) (78) (529)
Debt satisfaction
gains, net 6,864 3,495 11,471 3,062
Gains on sales
of properties 2,854 1,166 9,134 13,151
Impairment charges (35,029) (12,762) (73,816) (16,519)
----------- ---------- ----------- ----------
Total discontinued
operations (24,952) (8,775) (54,634) (1,997)
----------- ---------- ----------- ----------
Net loss (48,928) (15,996) (211,272) (3,468)
Less net loss
attributable to
noncontrolling
interests 2,961 2,206 1,120 6,222
----------- ---------- ----------- ----------
Net income (loss)
attributable to
Lexington Realty Trust (45,967) (13,790) (210,152) 2,754
Dividends attributable
to preferred shares-
Series B (1,590) (1,590) (6,360) (6,360)
Dividends attributable
to preferred shares-
Series C (1,702) (2,111) (7,218) (8,852)
Dividends attributable
to preferred shares-
Series D (2,926) (2,926) (11,703) (11,703)
Redemption discount –
Series C - - - 5,678
Conversion dividend –
Series C - - (6,994) -
----------- ---------- ----------- ----------
Net loss attributable
to common shareholders $(52,185) $(20,417) $(242,427) $(18,483)
=========== ========== =========== ==========
Loss per common
share-basic:
Loss from
continuing
operations $(0.25) $(0.15) $(1.75) $(0.24)
Loss from
discontinued
operations (0.18) (0.08) (0.47) (0.04)
----------- ---------- ----------- ----------
Net loss
attributable
to common
shareholders $(0.43) $(0.23) $(2.22) $(0.28)
=========== ========== =========== ==========
Weighted average
common shares
outstanding - basic 120,530,087 86,895,674 109,280,955 67,872,590
=========== ========== =========== ==========
Loss per common
share-diluted:
Loss from
continuing
operations $(0.25) $(0.15) $(1.75) $(0.24)
Loss from
discontinued
operations (0.18) (0.08) (0.47) (0.04)
----------- ---------- ----------- ----------
Net loss
attributable
to common
shareholders $(0.43) $(0.23) $(2.22) $(0.28)
=========== ========== =========== ==========
Weighted average
common shares
outstanding-
diluted 120,530,087 86,895,674 109,280,955 67,872,590
=========== ========== =========== ==========
Amounts attributable
to common shareholders:
Loss from
continuing
operations $(30,329) $(13,171) $(190,635) $(15,776)
Loss from
discontinued
operations (21,856) (7,246) (51,792) (2,707)
----------- ---------- ----------- ----------
Net loss
attributable
to common
shareholders $(52,185) $(20,417) $(242,427) $(18,483)
=========== ========== =========== ==========
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2009 and December 31, 2008
(Unaudited and in thousands, except share and per share data)
December 31, December 31,
2009 2008
---- ----
Assets:
Real estate, at cost $3,552,806 $3,756,188
Less: accumulated depreciation
and amortization 537,406 461,661
--------- ---------
3,015,400 3,294,527
Properties held for sale-discontinued
operations - 8,150
Intangible assets, net 267,161 343,192
Cash and cash equivalents 53,865 67,798
Restricted cash 21,519 31,369
Investment in and advances to
non-consolidated entities 55,985 179,133
Deferred expenses, net 38,245 35,741
Notes receivable, net 60,567 68,812
Rent receivable-current 11,463 19,829
Rent receivable- deferred 12,529 16,499
Other assets 43,111 40,675
--------- ---------
Total assets $3,579,845 $4,105,725
========= =========
Liabilities and Equity:
Liabilities:
Mortgages and notes payable $1,857,909 $2,033,854
Exchangeable notes payable 85,709 204,074
Trust preferred securities 129,120 129,120
Contract right payable 15,252 14,776
Dividends payable 18,412 24,681
Liabilities-discontinued operations - 6,142
Accounts payable and other liabilities 43,629 33,814
Accrued interest payable 11,068 16,345
Deferred revenue-below market leases, net 107,535 121,722
Prepaid rent 13,975 20,126
--------- ---------
2,282,609 2,604,654
--------- ---------
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001
per share; authorized 100,000,000 shares,
Series B Cumulative Redeemable
Preferred, liquidation preference
$79,000, 3,160,000 shares issued
and outstanding 76,315 76,315
Series C Cumulative Convertible
Preferred, liquidation preference
$104,760 and $129,915 respectively,
and 2,095,200 and 2,598,300 shares
issued and outstanding in 2009
and 2008, respectively 101,778 126,217
Series D Cumulative Redeemable
Preferred, liquidation preference
$155,000, 6,200,000 shares issued
and outstanding 149,774 149,774
Common shares, par value $0.0001 per
share; authorized 400,000,000 shares,
121,943,258 and 100,300,238 shares
issued and outstanding in 2009 and 2008,
respectively 12 10
Additional paid-in-capital 1,750,979 1,638,540
Accumulated distributions in
excess of net income (870,862) (569,131)
Accumulated other comprehensive
income (loss) 673 (15,650)
--------- ---------
Total shareholders' equity 1,208,669 1,406,075
Noncontrolling interests 88,567 94,996
--------- ---------
Total equity 1,297,236 1,501,071
--------- ---------
Total liabilities and equity $3,579,845 $4,105,725
========= =========
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE AND COMPANY FUNDS FROM OPERATIONS PER SHARE
(Unaudited and in thousands, except share and per share data)
Three Months ended Twelve Months ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
EARNINGS PER SHARE: (1)
Basic:
Loss from continuing
operations attributable
to common shareholders $(30,329) $(13,171) $(190,635) $(15,776)
Less: Unvested common
share dividends (64) (69) (449) (491)
----------- ---------- ----------- ----------
Loss attributable to
common shareholders
from continuing
operations for
earnings per share (30,393) (13,240) (191,084) (16,267)
Loss from discontinued
operations attributable
to common shareholders (21,856) (7,246) (51,792) (2,707)
----------- ---------- ----------- ----------
Net loss attributable
to common shareholders
for earnings per share
- basic $(52,249) $(20,486) $(242,876) $(18,974)
=========== ========== =========== ==========
Weighted average number
of common shares
outstanding –
basic 120,530,087 86,895,674 109,280,955 67,872,590
=========== ========== =========== ==========
Loss per common
share-basic:
Loss from continuing
operations $(0.25) $(0.15) $(1.75) $(0.24)
Loss from discontinued
operations (0.18) (0.08) (0.47) (0.04)
----------- ---------- ----------- ----------
Net loss attributable
to common shareholders $(0.43) $(0.23) $(2.22) $(0.28)
=========== ========== =========== ==========
Diluted:
Loss attributable to
common shareholders from
continuing operations
for earnings per
share-basic $(30,393) $(13,240) $(191,084) $(16,267)
Incremental loss
attributed to
assumed conversion of
dilutive securities - - - -
----------- ---------- ----------- ----------
Loss attributable
to common shareholders
from continuing
operations for
earnings per share (30,393) (13,240) (191,084) (16,267)
Loss from discontinued
operations attributable
to common shareholders (21,856) (7,246) (51,792) (2,707)
----------- ---------- ----------- ----------
Net loss attributable
to common shareholders
for earnings per
share - diluted $(52,249) $(20,486) $(242,876) $(18,974)
=========== ========== =========== ==========
Weighted average number
of common shares used
in calculation of
basic earnings
per share 120,530,087 86,895,674 109,280,955 67,872,590
Add incremental
shares representing:
Shares issuable
upon conversion
of dilutive
securities - - - -
----------- ---------- ----------- ----------
Weighted average
number of shares
used in calculation
of diluted earnings
per share 120,530,087 86,895,674 109,280,955 67,872,590
=========== ========== =========== ==========
Loss per common
share-diluted:
Loss from continuing
operations $(0.25) $(0.15) $(1.75) $(0.24)
Loss from discontinued
operations (0.18) (0.08) (0.47) (0.04)
----------- ---------- ----------- ----------
Net loss attributable
to common shareholders $(0.43) $(0.23) $(2.22) $(0.28)
=========== ========== =========== ==========
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE AND COMPANY FUNDS FROM OPERATIONS PER SHARE (Continued)
(Unaudited and in thousands, except share and per share data)
Three Months ended Twelve Months ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
COMPANY FUNDS FROM
OPERATIONS: (1) (2)
Basic and Diluted:
Net loss attributable
to common
shareholders $(52,185) $(20,417) $(242,427) $(18,483)
Adjustments:
Depreciation and
amortization 41,597 50,350 178,000 241,986
Noncontrolling
interests- OP units (2,903) (2,297) (1,970) (12,493)
Amortization of
leasing commissions 794 1,191 3,063 2,684
Joint venture and
noncontrolling
interest adjustment (1,106) 7,933 4,279 23,245
Gain on sale of
joint venture
investment (2,000) - (2,003) -
Noncontrolling
interest share
of gain on sale - - - 1,385
Preferred dividends
- Series C 1,702 2,111 14,212 3,174
Gains on sale
of properties (2,854) (1,166) (9,134) (44,957)
Gain on sale of
marketable
securities - - (19) -
----------- ----------- ----------- -----------
Company FFO $(16,955) $37,705 $(55,999) $196,541
=========== =========== =========== ===========
Basic:
Weighted average
shares outstanding
-basic EPS 120,530,087 86,895,674 109,280,955 67,872,590
Unvested share-based
payment awards 676,145 386,256 698,549 415,741
Operating
partnership units 5,442,773 18,327,874 5,447,974 34,202,572
Preferred Shares
- Series C 5,099,507 5,633,894 5,370,135 6,094,590
----------- ----------- ----------- -----------
Weighted average
shares outstanding
-basic Company FFO 131,748,512 111,243,698 120,797,613 108,585,493
=========== =========== =========== ===========
Company FFO
per share $(0.13) $0.34 $(0.46) $1.81
=========== =========== =========== ===========
Diluted:
Weighted average
shares outstanding
– diluted EPS 120,530,087 86,895,674 109,280,955 67,872,590
Unvested share-based
payment awards 676,145 386,256 698,549 415,741
Operating
partnership units 5,442,773 18,327,874 5,447,974 34,202,572
Preferred Shares
- Series C 5,099,507 5,633,894 5,370,135 6,094,590
----------- ----------- ----------- -----------
Weighted average
shares outstanding
– diluted
Company FFO 131,748,512 111,243,698 120,797,613 108,585,493
=========== =========== =========== ===========
Company FFO
per share $(0.13) $0.34 $(0.46) $1.81
=========== =========== =========== ===========
1 Effective January 1, 2009 the Company adopted new guidance issued by the
FASB relating to the accounting for convertible debt instruments that
may be settled in cash upon conversion (including partial cash
settlement) and new guidance on determining whether instruments granted
in share-based payment transactions are participating securities, both
of which required retrospective application to prior periods. In
accordance with the new FASB guidance, net income attributable to common
shareholders and earnings per common share and accordingly FFO and FFO
per common share are adjusted for an allocation of net income to
unvested share awards. However, net losses will not be allocated to
unvested share awards. The Company's FFO per common share (diluted) and
earnings per common share (diluted) were reduced by the Company's
implementation of this new guidance. FFO per common share (diluted) was
reduced by $0.03 for the three months ended December 31, 2008, and $0.09
for the twelve months ended December 31, 2008 respectively. Loss per
common share (diluted) was increased by $0.02 for the three months ended
December 31, 2008, and loss per common share (diluted) was increased by
$0.09 for the twelve months ended December 31, 2008.
2 Lexington believes that Funds from Operations ("FFO") is a widely
recognized and appropriate measure of the performance of an equity REIT.
Lexington presents FFO because it considers FFO an important
supplemental measure of Lexington's operating performance. Lexington
believes FFO is frequently used by securities analysts, investors and
other interested parties in the evaluation of REITs, many of which
present FFO when reporting their results. FFO is intended to exclude
generally accepted accounting principles ("GAAP"), historical cost
depreciation and amortization of real estate and related assets, which
assumes that the value of real estate diminishes ratably over time.
Historically, however, real estate values have risen or fallen with
market conditions. As a result, FFO provides a performance measure
that, when compared year over year, reflects the impact to operations
from trends in occupancy rates, rental rates, operating costs,
development activities, interest costs and other matters without the
inclusion of depreciation and amortization, providing perspective that
may not necessarily be apparent from net income.
Lexington computes FFO in accordance with standards established by the
National Association of Real Estate Investment Trusts, Inc. ("NAREIT").
FFO is defined by NAREIT as "net income (or loss) computed in accordance
with GAAP, excluding gains (or losses) from sales of property, plus real
estate depreciation and amortization and after adjustments for
unconsolidated partnerships and joint ventures." FFO does not represent
cash generated from operating activities in accordance with GAAP and is
not indicative of cash available to fund cash needs. FFO should not be
considered as an alternative to net income as an indicator of our
operating performance or as an alternative to cash flow as a measure of
liquidity.
Lexington includes in its calculation of FFO, which Lexington refers to
as the "Company's funds from operations" or "Company FFO," Lexington's
operating partnership units and Lexington's Series C Cumulative
Convertible Preferred Shares because these securities are convertible,
at the holder's option, into Lexington's common shares. Management
believes this is appropriate and relevant to securities analysts,
investors and other interested parties because Lexington presents
Company FFO on a company-wide basis as if all securities that are
convertible, at the holder's option, into Lexington's common shares, are
converted. Since others do not calculate FFO in a similar fashion,
Company FFO may not be comparable to similarly titled measures as
reported by others.
SOURCE Lexington Realty Trust
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