Lexington Realty Trust Reports Fourth Quarter 2013 Results

NEW YORK, Feb. 20, 2014 (GLOBE NEWSWIRE) -- 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, 2013.

Fourth Quarter 2013 Highlights

• 12% increase in Funds From Operations, as adjusted ("Company FFO, as adjusted"), to $0.28 per diluted common share.
• Increased quarterly common share dividend by 10% to $0.165 per share.
• Closed property acquisitions of $405.9 million.
• Invested $19.9 million in current build-to-suit projects and entered into an agreement to acquire an industrial property upon completion for $12.8 million.
• Agreed to lend $85.0 million for a build-to-suit construction project.
• Executed 0.5 million square feet of new and extended leases with overall portfolio 97.6% leased.
• Sold properties for an aggregate disposition price of $46.8 million.

T. Wilson Eglin, President and Chief Executive Officer of Lexington, stated, "The successful execution of our business plan in 2013 has positioned us for strong growth in funds from operations per share in 2014. This growth will be driven by the $717.6 million of investments made in 2013 and our ongoing commitment to lowering our cost of capital which resulted in the Company reducing its financing costs to 4.7% while extending its weighted-average debt maturity to 7.0 years. With a deep pipeline of additional investment opportunities, a flexible balance sheet with substantial credit line capacity and numerous capital recycling opportunities, we believe Lexington is well positioned to create additional shareholder value."

FINANCIAL RESULTS

Revenues

For the quarter ended December 31, 2013, total gross revenues were $109.6 million, compared with total gross revenues of $92.1 million for the quarter ended December 31, 2012. The increase is primarily due to property acquisitions.

Company FFO, As Adjusted

For the quarter ended December 31, 2013, Lexington generated Company FFO, as adjusted, of $65.7 million, or $0.28 per diluted share, compared to Company FFO, as adjusted, for the quarter ended December 31, 2012 of $48.2 million, or $0.25 per diluted share. The calculation of Company FFO, as adjusted, and a reconciliation to net income (loss) attributable to Lexington Realty Trust shareholders is included later in this press release.

Dividends/Distributions

Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended December 31, 2013 of $0.165 per common share/unit, which was paid on January 15, 2014 to common shareholders/unitholders of record as of December 31, 2013, and a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock ("Series C Preferred Shares"), which was paid on February 18, 2014 to Series C Preferred Shareholders of record as of January 31, 2014.

Net Loss Attributable to Common Shareholders

For the quarter ended December 31, 2013, net loss attributable to common shareholders was $(8.9) million, or $(0.04) per diluted share, compared with a net loss attributable to common shareholders for the quarter ended December 31, 2012 of $(7.0) million, or $(0.04) per diluted share.

OPERATING ACTIVITIES

Investment Activity

These acquisitions brought 2013 property acquisition volume to $590.4 million.

Capital Recycling

These dispositions brought total 2013 disposition volume to $167.3 million.

Leasing

During the fourth quarter of 2013, Lexington executed 14 new and extended leases for 0.5 million square feet and ended the quarter with its overall portfolio 97.6% leased.

CAPITAL MARKETS

Capital Activities and Balance Sheet Update

During the fourth quarter of 2013, Lexington issued 11.5 million common shares raising gross proceeds of $126.3 million, after underwriting discounts and commissions.

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. The debt bears interest at a fixed rate of 4.66% and matures in January 2027.

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%. The proceeds from these 2013 financings were used to satisfy amounts outstanding on Lexington's $400.0 million unsecured revolving credit facility, resulting in $48.0 million of credit facility borrowings outstanding as of December 31, 2013.

Subsequent to December 31, 2013, Lexington borrowed the remaining $99.0 million available under its five-year unsecured term loan facility and swapped the LIBOR component of such borrowing for a current fixed interest rate of 2.51%.

2014 EARNINGS GUIDANCE

Lexington estimates that its Company FFO, as adjusted, guidance will be an expected range of $1.11 to $1.15 per diluted share for the year ended December 31, 2014. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FOURTH QUARTER 2013 CONFERENCE CALL

Lexington will host a conference call today, Thursday, February 20, 2014, at 11:00 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2013. Interested parties may participate in this conference call by dialing (888) 312-9852 or (719) 325-2478. A replay of the call will be available through March 6, 2014, at (877) 870-5176 or (858) 384-5517, pin: 8305525. A live webcast 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 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, 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 authorization by Lexington's Board of Trustees of future dividend declarations, including those necessary to achieve an annualized dividend level of $0.66 per common share/unit, (2) Lexington's ability to achieve its estimate of Company FFO, as adjusted, for the year ending December 31, 2014, (3) the successful consummation of any lease, acquisition, build-to-suit, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site 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", "may," "plans," "predicts," "will," "will likely result," "is optimistic," "goal," "objective" or similar expressions. Except as required by law, 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, some of which are consolidated for financial statement purposes and/or disregarded for income tax purposes.

CONTACT: Investor or Media Inquiries,
         T. Wilson Eglin, CEO
         Lexington Realty Trust
         Phone: (212) 692-7200
         E-mail: tweglin@lxp.com