LEXINGTON REALTY TRUST - FORM 8-K - EX-99.2 - QUARTERLY SUPPLEMENTAL INFORMATION, FIRST QUARTER 2021 - May 7, 2021

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EX-99.3 - MAY 7, 2021 CONFERENCE CALL TRANSCRIPT - LEXINGTON REALTY TRUSTex99-3transcript.htm
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8-K - 8-K - LEXINGTON REALTY TRUSTn2525-x1_8k.htm

 

Exhibit 99.2

 

 

 

 

 

LEXINGTON REALTY TRUST

TABLE OF CONTENTS

March 31, 2021

 

    PAGE       PAGE
             
SUMMARY / HIGHTLIGHTS 3   TENANT DATA  
          TOP 15 TENANTS 21
FINANCIAL DATA       QUARTERLY LEASING SUMMARY 22
  CONSOLIDATED BALANCE SHEETS 4     LEASE ROLLOVER SCHEDULES 23
  CONSOLIDATED STATEMENTS OF OPERATIONS 5     PROPERTY LEASES AND VACANCIES 25
  NON-GAAP FINANCIAL DATA 6        
  SELECT CREDIT METRICS SUMMARY 10   DEBT  
  OTHER FINANCIAL DATA 11     MORTGAGES AND NOTES PAYABLE 36
          DEBT MATURITY SCHEDULE 38
CAPITAL DEPLOYMENT / RECYCLING       DEBT COVENANTS 39
  QUARTERLY INVESTMENTS / CAPITAL RECYCLING 12        
  ON-GOING DEVELOPMENT SUMMARY 13   COMPONENTS OF NET ASSET VALUE 40
  CAPITAL EXPENDITURES AND LEASING COSTS 14        
        NON-GAAP MEASURES DEFINITIONS 41
PORTFOLIO DATA          
  PORTFOLIO DATA 15   INVESTOR INFORMATION 45
  SAME STORE DATA 16        
  PORTFOLIO DETAIL BY ASSET CLASS 17        
  PORTFOLIO COMPOSITION 18        
  INDUSTRIAL MARKET AND INDUSTRIES 19        
  INDUSTRIAL PORTFOLIO DETAIL 20        

 

This Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of Lexington Realty Trust (“Lexington”), which may cause actual results, performance or achievements of Lexington and its subsidiaries 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, but not limited to, risks related to: (1) the potential adverse impact on Lexington or its tenants from the novel coronavirus (COVID-19), (2) the authorization of Lexington’s Board of Trustees of future dividend declarations, (3) the successful consummation of any lease, acquisition, build-to-suit, development project, disposition, financing or other transaction on the terms described herein or at all, (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 new 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 revise those forward-looking statements to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized.

 

See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

 

 

 

 

LEXINGTON REALTY TRUST

SUMMARY / HIGHLIGHTS

March 31, 2021

 

Lexington is a real estate investment trust (“REIT”) focused on single-tenant industrial real estate investments. Lexington has been a publicly traded REIT since 1993 (NYSE: LXP). Lexington’s investment strategy is focused on the acquisition and development of high quality and well-located industrial warehouse and distribution facilities. Lexington currently pays an annualized dividend of $0.43 per common share.

 

Quarterly Highlights  Portfolio Statistics
       
 - Net Income - $0.14 per diluted common share  # of Properties:  132
       
- Adjusted Company FFO - $0.22 per diluted common share (1)  # of States:  28
       
- Completed 1.5 million square feet of new leases and lease extensions  Square Footage:  55.9 million
       
- Acquired three warehouse/distribution properties for an aggregate cost of $50.8 million  On-going Development Projects:  5
       
- Substantially completed and placed into service a 320,190 square foot warehouse/distribution property in the Columbus, OH market, at an initial cost of $18.4 million  Stabilized Portfolio % Leased:  97.8%
       
- Commenced development of a 1.1 million square foot warehouse/distribution property in the Central Florida market  # of Leases:  156
      
- Invested an aggregate of $24.0 million in five on-going development projects  % Industrial:  91.3%
      
- Disposed of four properties for an aggregate gross disposition price of $58.1 million  Weighted-Average Lease Term (Cash Basis):  7.3 years
      
- Net Debt to Adjusted EBITDA ratio is 4.6x  Weighted-Average Age:  12.1 years

 

(1) Includes $10.9 million of termination income.

 

3

 

 

LEXINGTON REALTY TRUST

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

   March 31, 2021   December 31, 2020 
   (unaudited)     
Assets:        
Real estate, at cost  $3,523,641   $3,514,564 
Real estate - intangible assets   399,394    409,293 
Investments in real estate under construction   88,374    75,906 
Real estate, gross   4,011,409    3,999,763 
Less: accumulated depreciation and amortization   891,448    884,465 
Real estate, net   3,119,961    3,115,298 
Assets held for sale   18,383    16,530 
Right-of-use assets, net   30,500    31,423 
Cash and cash equivalents   142,074    178,795 
Restricted cash   28,101    626 
Investments in non-consolidated entities   54,185    56,464 
Deferred expenses, net   16,730    15,901 
Rent receivable - current   2,954    2,899 
Rent receivable - deferred   66,680    66,959 
Other assets   10,665    8,331 
Total assets  $3,490,233   $3,493,226 
           
Liabilities and Equity:          
Liabilities:          
Mortgages and notes payable, net  $131,849   $136,529 
Term loan payable, net   298,069    297,943 
Senior notes payable, net   779,607    779,275 
Trust preferred securities, net   127,520    127,495 
Dividends payable   33,317    35,401 
Liabilities held for sale   6    790 
Operating lease liabilities   31,508    32,515 
Accounts payable and other liabilities   45,018    55,208 
Accrued interest payable   7,221    6,334 
Deferred revenue - including below market leases, net   16,680    17,264 
Prepaid rent   14,112    13,335 
Total liabilities   1,484,907    1,502,089 
           
Commitments and contingencies          
Equity:          
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:          
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issues and outstanding   94,016    94,016 
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 277,614,856 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively   28    28 
Additional paid-in-capital   3,193,023    3,196,315 
Accumulated distributions in excess of net income   (1,292,051)   (1,301,726)
Accumulated other comprehensive loss   (12,617)   (17,963)
Total shareholders’ equity   1,982,399    1,970,670 
Noncontrolling interests   22,927    20,467 
Total equity   2,005,326    1,991,137 
Total liabilities and equity  $3,490,233   $3,493,226 

 

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LEXINGTON REALTY TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except share and per share data)

 

   Three months ended March 31, 
   2021   2020 
Gross revenues:          
Rental revenue  $91,645   $78,735 
Other revenue   912    2,092 
Total gross revenues   92,557    80,827 
Expenses applicable to revenues:          
Depreciation and amortization   (42,176)   (40,509)
Property operating   (10,934)   (10,276)
General and administrative   (8,420)   (7,825)
Non-operating income   477    190 
Interest and amortization expense   (11,486)   (14,795)
Debt satisfaction gains, net   -    1,393 
Gains on sales of properties   21,919    9,805 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities   41,937    18,810 
Provision for income taxes   (372)   (653)
Equity in earnings (losses) of non-consolidated entities   (90)   263 
Net income   41,475    18,420 
Less net income attributable to noncontrolling interests   (433)   (266)
Net income attributable to Lexington Realty Trust shareholders   41,042    18,154 
Dividends attributable to preferred shares - Series C   (1,572)   (1,572)
Allocation to participating securities   (69)   (46)
Net income attributable to common shareholders  $39,401   $16,536 
           
Net income attributable to common shareholders - per common share basic  $0.14   $0.07 
Weighted-average common shares outstanding - basic   275,416,327    253,038,161 
           
Net income attributable to common shareholders - per common share diluted  $0.14   $0.06 
Weighted-average common shares outstanding - diluted   279,053,697    257,347,277 

 

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LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA

(Unaudited and in thousands, except share and per share data)

 

   Three months ended March 31, 
   2021   2020 
FUNDS FROM OPERATIONS:        
Basic and Diluted:          
Net income attributable to common shareholders  $39,401   $16,536 
Adjustments:          
Depreciation and amortization   41,478    39,717 
Noncontrolling interest - OP units   239    107 
Amortization of leasing commissions   698    792 
Joint venture and noncontrolling interest adjustment   2,115    2,214 
Gain on sales of properties, including non-consolidated entities   (21,919)   (10,354)
FFO available to common shareholders and unitholders - basic   62,012    49,012 
Preferred dividends   1,572    1,572 
Amount allocated to participating securities   69    46 
FFO available to common equityholders and unitholders - diluted   63,653    50,630 
Transaction costs   11    21 
Debt satisfaction gains, net, including non-consolidated entities   -    (1,372)
Adjusted Company FFO available to all equityholders and unitholders - diluted  $63,664   $49,279 
           
Per Common Share and Unit Amounts:          
Basic:          
FFO  $0.22   $0.19 
           
Diluted:          
FFO  $0.22   $0.19 
Adjusted Company FFO  $0.22   $0.19 
           
Weighted-Average Common Shares:          
Basic:          
Weighted-average common shares outstanding - basic EPS   275,416,327    253,038,161 
Operating partnership units (1)   2,852,419    3,148,122 
Weighted-average common shares outstanding - basic FFO   278,268,746    256,186,283 
           
Diluted:          
Weighted-average common shares outstanding - diluted. EPS   279,053,697    257,347,277 
Unvested share-based payments awards   9,125    24,799 
Preferred shares - Series C   4,710,570    4,710,570 
Weighted-average common shares outstanding - diluted FFO   283,773,392    262,082,646 

 

(1) Includes OP units other than OP units held by Lexington.

 

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LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA (CONTINUED)

(Unaudited and in thousands)

 

   Three months ended March 31, 
   2021   2020 
Adjusted Company FFO available to all equityholders and unitholders - diluted  $63,664   $49,279 
           
FUNDS AVAILABLE FOR DISTRIBUTION          
Adjustments:          
Straight-line adjustments   (2,020)   (1,419)
Lease incentives   219    269 
Amortization of above/below market leases   (460)   (295)
Lease termination payments, net   2,204    492 
Non-cash interest, net   127    428 
Non-cash charges, net   1,764    1,658 
Tenant improvements   (19)   (1,492)
Lease costs   (2,232)   (3,951)
Joint venture and non-controlling interest adjustment   (173)   (111)
Company Funds Available for Distribution  $63,074   $44,858 

 

7

 

 

LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA (CONTINUED)

($000)

 

Net Operating Income (“NOI”):

 

   Three months ended March 31, 
   2021   2020 
Net income  $41,475   $18,420 
           
Interest and amortization expense   11,486    14,795 
Provision for income taxes   372    653 
Depreciation and amortization   42,176    40,509 
General and administrative   8,420    7,825 
Transaction costs   11    21 
Non-operating/advisory fee income   (1,230)   (1,889)
Gains on sales of properties   (21,919)   (9,805)
Debt satisfaction gains, net   -    (1,393)
Equity in (earnings)  losses of non-consolidated entities   90    (263)
Lease termination income   (10,941)   (141)
Straight-line adjustments   (2,020)   (1,419)
Lease incentives   219    269 
Amortization of above/below market leases   (460)   (295)
           
NOI   67,679    67,287 
           
Less NOI:          
   Acquisitions and dispositions   (8,160)   (8,099)
           
Same-Store NOI  $59,519   $59,188 

 

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LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA (CONTINUED)

($000)

 

Adjusted EBITDA:

 

   3/31/2021   12/31/2020   9/30/2020   6/30/2020   Trailing 12 Months 
Net income attributable to Lexington Realty Trust shareholders  $41,042   $104,378   $41,904   $18,866   $206,190 
Interest and amortization expense   11,486    12,591    13,649    14,166    51,892 
Provision for income taxes   372    223    286    422    1,303 
Depreciation and amortization   42,176    40,723    40,555    39,805    163,259 
Straight-line adjustments   (2,020)   (3,430)   (3,995)   (4,810)   (14,255)
Lease incentives   219    189    214    249    871 
Amortization of above/below market leases   (460)   (470)   (435)   (380)   (1,745)
Gains on sales of properties   (21,919)   (97,163)   (20,878)   (11,193)   (151,153)
Impairment charges   -    6,668    6,175    1,617    14,460 
Debt satisfaction gains, net   -    (2,502)   (17,557)   -    (20,059)
Non-cash charges, net   1,764    1,690    1,663    1,663    6,780 
                          
Pro-rata share adjustments:                         
Non-consolidated entities adjustment   2,839    2,925    2,825    2,928    11,517 
Noncontrolling interests adjustment   252    617    1,485    52    2,406 
                          
Adjusted EBITDA  $75,751   $66,439   $65,891   $63,385   $271,466 

 

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LEXINGTON REALTY TRUST

SELECT CREDIT METRICS SUMMARY (1)

 

   12/31/2018  12/31/2019  12/31/2020  3/31/2021
Adjusted Company FFO Payout Ratio  74.0%  51.6%  55.6%  48.9%
             
Unencumbered Assets  $2.8 billion  $3.3 billion  $3.8 billion  $3.8 billion
             
Unencumbered NOI  71.5%  84.1%  89.3%  91.4%
             
(Debt + Preferred) / Gross Assets  40.3%  34.5%  32.5%  32.5%
             
Debt/Gross Assets  37.8%  32.1%  30.4%  30.3%
             
Secured Debt / Gross Assets  14.5%  9.6%  3.1%  3.0%
             
Net Debt / Adjusted EBITDA  4.7x  4.9x  4.8x  4.6x
             
(Net Debt + Preferred) / Adjusted EBITDA  5.0x  5.3x  5.1x  5.0x
             
Credit Facilities Availability (2)  $505.0 million  $600.0 million  $600.0 million  $600.0 million
             
Unsecured Debt / Unencumbered NOI  4.9x  4.6x  5.3x  5.2x

 

Footnotes
(1) Lexington believes these credit metrics provide investors with additional information to evaluate its liquidity and performance.
(2) Subject to covenant compliance.

 

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LEXINGTON REALTY TRUST

OTHER FINANCIAL DATA

3/31/2021

($000)

 

Rent Estimates for Current Assets  

 

Year   Base Rent  (1)   Cash Base Rent (1)   Difference 
2021 - remaining   $209,915   $199,040   $(10,875)
2022    263,363    256,208    (7,155)

 

Balance Sheet     
      
Other assets  $10,665 
      
The components of other assets are:     
      
Deposits  $703 
Equipment   391 
Prepaids   4,343 
Other receivables   400 
Deferred lease incentives   4,828 
      
Accounts payable and other liabilities     
      
The components of accounts payable and other liabilities are:  $45,018 
      
Accounts payable and accrued expenses  $10,669 
CIP accruals and other   12,632 
Taxes   508 
Deferred lease costs   3,861 
Deposits   3,405 
Escrows   1,264 
Transaction costs   62 
Derivative liability   12,617 

 

Footnote
(1) Amounts assume (i) lease terms for non-cancellable periods only, (ii) no new or renegotiated leases are entered into after 3/31/2021, and (iii) no properties are sold or acquired after 3/31/2021.

 

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LEXINGTON REALTY TRUST

QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY

3/31/2021

 

PROPERTY ACQUISITIONS AND COMPLETED DEVELOPMENTS

 

                              
   Property Type  Market  Square Feet   Initial Basis ($000)   Month Closed/
Completed		   Primary Lease Expiration   Percent Leased 
1  Industrial - Warehouse/distribution  Indianapolis  IN   149,072   $14,310   January   12/2024    100%
2  Industrial - Warehouse/distribution  Indianapolis  IN   149,072    14,120   January   08/2025    100%
3  Industrial - Warehouse/distribution  Central Florida      222,134    22,358   January   05/2031    53%
4  Industrial - Warehouse/distribution  Columbus (1)  OH   320,190    18,435   March   03/2024    100%
                                 
4  TOTAL PROPERTY INVESTMENTS      840,468   $69,223              

 

Footnotes
(1) Completed development project. The initial basis at 3/31/2021 does not include certain remaining costs.

 

CAPITAL RECYCLING

 

   Primary Tenant  Location  Property Type  Gross
Disposition Price
($000)		   Annualized Net Income ($000) (1)   Annualized NOI ($000)(1)   Month of Disposition   % Leased   Gross Disposition Price PSF 
1  Vacant  Houston  TX  Office  $2,550   $(427)  $(427)  January    0%  $32.32 
2  Charles Schwab  Westlake  TX  Office   17,693    982    2,294   January    100%   135.89 
3  ODW Logistics  Columbus  OH  Industrial   27,849    1,930    2,153   March    100%   36.05 
4  Multi-Tenant  Honolulu  HI  Other   10,000    (254)   (232)  March    29%   129.10 
                                          
4  TOTAL PROPERTY DISPOSITIONS     $58,092   $2,231   $3,788               

 

Footnotes
(1) Generally, quarterly period prior to sale annualized, excluding impairment charges.

 

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LEXINGTON REALTY TRUST

ON-GOING DEVELOPMENT SUMMARY

3/31/2021

 

                  GAAP  Lexington          
               Estimated  Investment Balance  Amount Funded  Estimated  Approximate  % Leased 
   Project     Property  Estimated  Project Cost  as of 3/31/2021  as of 3/31/2021  Completion  Lease Term  as of 
   (% owned)  Market  Type  Sq. Ft.  ($000)  ($000) (1)  ($000)  Date  (Yrs)  3/31/2021 
Consolidated                              
                                     
1  Fairburn (87%) (2)  Atlanta, GA  Industrial   910,000  $53,812  $45,322  $40,376  2Q 2021  TBD   0%
2  KeHE Distributors BTS (100%)  Phoenix, AZ  Industrial   468,182   72,000   31,165   26,301  3Q 2021  15   100%
3  Ocala (80%)(2)  Central Florida  Industrial   1,085,280   80,900   11,887   7,682  1Q 2022  TBD   0%
                                     
3  Total Consolidated Development Projects      $206,712  $88,374  $74,359           
                                     
                                     
Non - Consolidated                              
                                     
1  ETNA Park 70 (90%) (3)  Columbus, OH  Industrial    TBD    TBD  $12,791  $13,208   TBD   TBD   0%
2  ETNA Park 70 East (90%) (3)  Columbus, OH  Industrial    TBD    TBD   7,716   7,868   TBD   TBD   0%
                                     
2  Total Non-Consolidated Development Projects          $20,507  $21,076           
                                     
5  Total Development Projects          $108,881  $95,435           

 

Footnotes
(1) GAAP  investment balance is in real estate under construction for consolidated projects and in investments in non-consolidated entities for non-consolidated projects.
(2) Estimated project cost excludes potential developer partner promote.
(3) Plans and specifications have not been completed and the square footage, project cost and completion date cannot be estimated.

 

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LEXINGTON REALTY TRUST 

CAPITAL EXPENDITURES AND LEASING COSTS (1)

3/31/2021

($000)

 

   Three months ended March 31, 
         
   2021   2020 
Tenant Improvements          
Industrial  $—   $1,469 
Office/Other   19    36 
Total Tenant Improvements  $19   $1,505 
           
Leasing Costs          
Industrial  $1,893   $516 
Office/Other   339    3,435 
Total Leasing Costs  $2,232   $3,951 
           
Building Improvements          
Industrial  $988   $322 
Office/Other   296    556 
Total Building Improvements  $1,284   $878 
           
Total Capital Expenditures and Leasing Costs  $3,535   $6,334 

 

Footnote
(1)  Consolidated costs on a cash basis. Leasing costs includes payments for lease incentives, if any.

 

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LEXINGTON REALTY TRUST

PORTFOLIO DATA

3/31/2021

($000)

 

   Base Rent 
Asset Class  Three months ended 
   3/31/2021 (1)   3/31/2021
Percentage		   3/31/2020
Percentage		 
Industrial  $62,346    88.3%   79.3%
Office/Other   8,275    11.7%   20.7%
   $70,621    100.0%   100.0%

 

   Base Rent 
Credit Ratings  (2)  Three months ended 
   3/31/2021 (1)   3/31/2021
Percentage		   3/31/2020
Percentage		 
Investment Grade  $35,438    50.2%   51.6%
Non-Investment Grade   13,229    18.7%   22.1%
Unrated   21,954    31.1%   26.3%
   $70,621    100.0%   100.0%

 

Weighted-Average Lease Term - Cash Basis  As of 3/31/2021  As of 3/31/2020
   7.3 years  8.3 years

 

Lease Escalation Data (3)

 

 

Footnotes
(1) Three months ended 3/31/2021 Base Rent recognized for consolidated properties owned as of 3/31/2021.
(2) Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
(3) Based on three months consolidated Cash Base Rents for single-tenant leases (properties greater than 50% leased to a single tenant) owned as of 3/31/2021. Excludes parking operations and rents from prior tenants.

 

15

 

 

LEXINGTON REALTY TRUST 

SAME STORE DATA

3/31/2021

($000)

 

Same-Store NOI (1)      Same-Store NOI by Components (1)     
                         
   Consolidated   Industrial   Office/Other 
   Three months ended March 31,   Three months ended March 31,   Three months ended March 31, 
   2021   2020   2021   2020   2021   2020 
Total Cash Base Rent  $60,695   $60,375   $51,895   $51,174   $8,800   $9,201 
Tenant Reimbursements   7,258    6,732    5,292    4,774    1,966    1,958 
Property Operating Expenses   (8,434)   (7,919)   (5,857)   (5,355)   (2,577)   (2,564)
Same-Store NOI  $59,519   $59,188   $51,330   $50,593   $8,189   $8,595 
                               
Change in Same-Store NOI(2)   0.6%        1.5%        -4.7%     

 

Same-Store Statistics (3)          Same-Store Statistics by Components (3)         
                         
   Consolidated   Industrial   Office/Other 
   As of 3/31/2021   As of 3/31/2020   As of 3/31/2021   As of 3/31/2020   As of 3/31/2021   As of 3/31/2020 
                               
Same-Store # of Properties   112    112    95    95    17    17 
                               
Same-Store Percent Leased   97.5%   99.4%   97.6%   99.5%   94.2%   96.3%

 

Footnotes
(1) NOI is on a consolidated cash basis excluding properties acquired and sold in 2021 and 2020.
(2) Excluding single-tenant vacancies same-store NOI was 1.7% consolidated and 2.8% industrial.
(3) At March 31, 2021, excludes properties acquired or sold in 2021 and 2020.

 

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LEXINGTON REALTY TRUST

PORTFOLIO DETAIL BY ASSET CLASS

3/31/2021

($000, except square footage)

 

Asset Class  YE 2018 (1)   YE 2019   YE 2020   3/31/2021 
                 
Industrial                    
% of Cost (2)   71.2%   81.5%   90.8%   91.3%
% of ABR (3)   65.4%   75.5%   86.3%   88.3%
% Leased (4)   96.3%   97.9%   98.7%   97.9%
Wtd. Avg. Lease Term (5)   9.7    8.3    7.4    7.2 
Mortgage Debt  $206,006   $109,939   $105,419   $104,261 
% Investment Grade (3)   31.6%   45.9%   50.8%   51.7%
Square Feet   41,447,962    48,742,014    53,938,155    54,006,173 
                     
Office/Other                    
% of Cost (2)   28.8%   18.5%   9.2%   8.7%
% of ABR (3)(6)   34.6%   24.5%   13.7%   11.7%
% Leased   87.1%   85.8%   89.3%   94.2%
Wtd. Avg. Lease Term (5)   7.2    8.5    7.2    7.4 
Mortgage Debt  $369,508   $283,933   $32,993   $29,392 
% Investment Grade (3)   53.2%   57.3%   42.0%   38.8%
Square Feet   6,111,588    3,876,294    2,171,633    1,885,080 
                     
Construction in progress (7)  $1,840   $15,208   $79,022   $90,259 

 

Footnotes
(1) Certain amounts reclassified to reflect the current presentation.
(2) Based on gross book value of real estate assets; excludes held for sale assets.
(3) Percentage of Base Rent, for consolidated properties owned as of each respective period.
(4) 2021 is for Stabilized Portfolio.
(5) Cash basis.
(6) YE 2018 excludes the acceleration of below-market lease intangible accretion on one asset subsequently sold.
(7) Includes development classified as real estate under construction on a consolidated basis.

 

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LEXINGTON REALTY TRUST

PORTFOLIO COMPOSITION

3/31/2021

 

As a Percent of Gross Book Value (1)

 

 

Portfolio Composition (2)

 

 

Footnotes
(1) Based on gross book value of real estate assets as of 3/31/2021, excludes held for sale assets.
(2) Based on gross book value of real estate assets as of 3/31/2021, 12/31/2020, 12/31/2019, 12/31/2018 and 12/31/2017, as applicable and excludes held for sale assets.

 

18

 

 

LEXINGTON REALTY TRUST

INDUSTRIAL MARKETS AND INDUSTRIES

3/31/2021

 

Markets (1)  Percent of
Base Rent as
of 3/31/2021  (2)		 
Memphis, TN   7.7%
Greenville/Spartanburg, SC   6.7%
Houston, TX   6.3%
Dallas/Ft Worth, TX   5.8%
Atlanta, GA   5.5%
Phoenix, AZ   5.2%
Chicago, IL   5.0%
Cincinnati/Dayton, OH   5.0%
Nashville, TN   4.5%
Detroit, MI   4.1%
Savannah, GA   2.7%
Jackson, MS   2.5%
St. Louis, MO   2.5%
DC/Baltimore, MD   2.3%
Central Florida   2.2%
New York/New Jersey   2.1%
Cleveland, OH   2.0%
Charlotte, NC   1.9%
Indianapolis, IN   1.8%
Champaign-Urbana, IL   1.7%
Total Industrial Portfolio Concentration (3)   77.4%

 

 

Industries  Percent of
Base Rent as
of 3/31/2021  (2)		 
Consumer Products   23.4%
Automotive   20.8%
Food   15.3%
E-Commerce   14.1%
Transportation/Logistics   10.0%
Construction/Materials   8.6%
Apparel   2.3%
Specialty   1.6%
Technology   1.2%
Aerospace/Defense   1.1%
Printing/Production   1.0%
Other   0.6%
      
Total Industrial Portfolio Concentration (3)   100.0%

 

 

Footnotes
(1) Based on CoStar.com inventory data.
(2) Three months ended 3/31/2021 Base Rent recognized for consolidated industrial properties owned as of 3/31/2021.
(3) Total shown may differ from detailed amounts due to rounding.

 

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LEXINGTON REALTY TRUST

INDUSTRIAL PORTFOLIO DETAIL(1)

3/31/2021

 

   Warehouse/
Distribution		  Cold Storage  Heavy Manufacturing  Light Manufacturing
             
# of Properties  89  4  13  9
             
Square Feet  46,032,958  925,616  4,751,345  2,296,254
             
% of Industrial Base Rent(2)  81%  5%  8%  6%
             
Weighted-Average Age (Years)(3)  9.8  8.7  26.1  21.0
             
Weighted-Average Cash Base Rent per SF(4)  $4.24  $12.72  $4.39  $5.91
             
Weighted-Average Lease Term (Cash Basis - Years)  6.9  10.9  6.3  9.8
             
Average Annual Rent Escalation(5)  2.4%  1.4%  1.7%  1.9%
             
Average Building Size (SF)  517,224  231,404  365,488  255,139
             
Average Clear Height (Feet)(6)  32.5  36.9  35.4  28.1
             
% Top 25 Markets(7)  67.4%  79.2%  37.5%  37.9%
             
% Top 50 Markets(7)  88.4%  100.0%  49.1%  50.2%

 

Footnotes
(1) For industrial properties owned as of 3/31/2021.
(2) Percent of Base Rent for consolidated industrial properties owned as of 3/31/2021.
(3) Weighting based on square footage.
(4) Excludes vacant square footage.
(5) Based on Cash Base Rents for single-tenant leases (properties greater than 50% leased to a single tenant) owned as of 3/31/2021. Excludes rents from prior tenants.
(6) Based on internal and external sources.
(7) Percent of Base Rent based upon CoStar.com inventory data.

 

20

 

 

LEXINGTON REALTY TRUST

TOP 15 TENANTS

3/31/2021

 

Tenants (1)  Property Type  Lease Expirations   Number of Leases   Sq. Ft. Leased   Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3)   Base Rent as of 3/31/2021
($000)		   Percent of Base Rent
as of 3/31/2021
($000) (2)(4)		 
Amazon  Industrial  2026-2033   5    3,334,331    6.1%  $4,242    6.1%
Nissan  Industrial  2027   2    2,971,000    5.4%   3,190    4.6%
Dana  Industrial  2021-2031   7    2,053,359    3.8%   2,566    3.7%
Kellogg  Industrial  2027-2029   3    2,801,916    5.1%   2,433    3.5%
Undisclosed (5)  Industrial  2031-2035   3    1,090,383    2.0%   1,785    2.6%
Watco  Industrial  2038   1    132,449    0.2%   1,693    2.4%
Xerox  Office  2023   1    202,000    0.4%   1,660    2.4%
FedEx  Industrial  2023 & 2028   2    292,021    0.5%   1,430    2.1%
Wal-Mart  Industrial  2024 & 2027   2    1,335,673    2.4%   1,404    2.0%
Undisclosed (5)  Industrial  2034   1    1,318,680    2.4%   1,386    2.0%
Morgan Lewis (6)  Office  2024   1    289,432    0.5%   1,224    1.8%
Unis  Industrial  2023-2027   3    1,005,575    1.8%   1,137    1.6%
Mars Wrigley  Industrial  2025   1    604,852    1.1%   1,101    1.6%
Asics  Industrial  2030   1    855,878    1.6%   1,097    1.6%
Spitzer  Industrial  2035   2    449,895    0.8%   1,087    1.6%
                                
          35    18,737,444    34.3%  $27,435    39.4%

 

Footnotes
(1) Tenant, guarantor or parent.
(2) Total shown may differ from detailed amounts due to rounding.
(3) Excludes vacant square feet.
(4) Three months ended 3/31/2021 Base Rent recognized for consolidated properties owned as of 3/31/2021, excluding rent from prior tenants.
(5) Lease restricts certain disclosures.
(6) Includes parking operations.

 

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LEXINGTON REALTY TRUST

QUARTERLY LEASING SUMMARY

3/31/2021

 

LEASE EXTENSIONS

 

   Tenant/Guarantor (1)  Location  Prior
Term		  Lease Expiration Date  Sq. Ft.   New Base Rent Per Annum ($000)(2)   Prior Base Rent Per Annum ($000)   New Cash Base Rent Per Annum ($000)(2)   Prior Cash Base Rent Per Annum ($000) 
   Industrial                                
1  Kraft Heinz(3)  Winchester  VA  05/2021  05/2031   344,700   $1,726   $1,421   $1,586   $1,499 
2  Ingram Micro  Millington  TN  09/2021  09/2024   701,819    1,985    1,812    1,965    1,874 
3  Adena Health  Chillicothe  OH  02/2021  02/2022   23,270    129    117    129    117 
                                         
3  TOTAL EXTENDED LEASES               1,069,789   $3,840   $3,350   $3,680   $3,490 

 

NEW LEASES

 

   Tenant/Guarantor (1)  Location  Lease Expiration Date   Sq. Ft.   New Base Rent Per Annum ($000)(2)   New Cash Base Rent Per Annum ($000)(2) 
   Industrial / Multi-tenant Industrial                         
1  Southerland  Antioch  TN  06/2031   334,503   $1,413   $1,290 
2  American Logistics Services  Antioch  TN  05/2028   50,400    309    290 
3  University of New Hampshire(4)  Durham  NH  03/2026   45,168    258    258 
                             
3  TOTAL NEW LEASES             430,071    1,980    1,838 
                             
6  TOTAL NEW AND EXTENDED LEASES             1,499,860   $5,820   $5,518 

 

NEW VACANCY (5)

 

Former Tenant  Location   Prior Lease
Expiration
Date		  Sq. Ft.   2020
Base Rent
($000)		   2020
Cash Rent
($000)		 
Industrial                      
Heidelburg  Durham  NH    03/2026   455,332   $2,308   $1,686 

 

Footnotes
(1) Leases greater than 10,000 square feet.
(2) Assumes twelve months rent from the later of 4/1/2021 or lease commencement/extension, excluding free rent periods as applicable.
(3) Five-year extension option to 05/2026 exercised in second quarter 2020.  While determining fair market value rent, lease amended for ten-year extension during first quarter of 2021.  Prior Base Rent and Cash Base Rent reflect rental rates prior to initial five-year extension.
(4) Prior tenant terminated is lease for 500,500 square feet prior to its lease expiration date of March 2026.  Lexington entered into a direct lease with subtenant for a portion of the vacancy.
(5) Excludes multi-tenant properties, disposed properties and non-consolidated investments.

 

22

 

 

LEXINGTON REALTY TRUST

LEASE ROLLOVER SCHEDULE - INDUSTRIAL

3/31/2021

($000)

 

Year  Number of
Leases
Expiring		   Base Rent as of 3/31/2021   Percent of
Base Rent as of
3/31/2021		   Percent of
Base Rent as of
3/31/2020		 
2021 - remaining   8   $2,892    4.7%   5.4%
2022   5    988    1.6%   1.0%
2023   8    2,467    4.0%   4.1%
2024   21    7,107    11.6%   9.9%
2025   17    6,149    10.0%   8.9%
2026   15    4,787    7.8%   8.0%
2027   10    7,655    12.5%   12.5%
2028   6    2,973    4.8%   5.2%
2029   6    4,173    6.8%   6.1%
2030   8    6,629    10.8%   9.6%
Thereafter   25    15,591    25.4%   24.3%
                     
Total (1)   129   $61,411    100.0%     

 

 

Footnotes
(1) Total shown may differ from detailed amounts due to rounding.

 

23

 

 

LEXINGTON REALTY TRUST

LEASE ROLLOVER SCHEDULE - OFFICE/OTHER

3/31/2021

($000)

 

Year  Number of
Leases
Expiring		   Base Rent as of 3/31/2021   Percent of
Base Rent as of
3/31/2021		   Percent of
Base Rent as of
3/31/2020		 
2021 - remaining   4   $304    3.8%   5.8%
2022   2    379    4.7%   6.5%
2023   3    1,759    21.7%   12.8%
2024   6    2,411    29.8%   16.1%
2025   4    511    6.3%   6.6%
2026   1    56    0.7%   0.0%
2027   2    667    8.2%   3.3%
2028   0    —    0.0%   0.0%
2029   0    —    0.0%   1.5%
2030   0    —    0.0%   1.8%
Thereafter   5    2,015    24.9%   43.0%
                     
Total (1)   27   $8,102    100.0%     

 

 

Footnotes
(1) Total shown may differ from detailed amounts due to rounding.

 

24

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
INDUSTRIAL PROPERTIES                       
SINGLE TENANT                              
   WAREHOUSE/DISTRIBUTION                          
2021  6/30/2021  Memphis, TN  11624 S. Distribution Cv.  Olive Branch  MS   --    1,170,218    947    892 
   10/25/2021  West Michigan  6938 Elm Valley Dr.  Kalamazoo  MI   --    150,945    472    507 
   11/30/2021  Greenville/Spartanburg, SC  101 Michelin Dr.  Laurens  SC   14    1,164,000    898    898 
   12/31/2021  Chicago, IL  3686 South Central Ave.  Rockford  IL   --    93,000    83    83 
      Columbus, OH  351 Chamber Drive  Chillicothe  OH   --    42,264    53    53 
2022  2/28/2022  Columbus, OH  351 Chamber Drive  Chillicothe  OH   --    23,270    30    30 
   3/31/2022  Columbus, OH  191 Arrowhead Dr.  Hebron  OH   --    250,410    146    146 
      Columbus, OH  200 Arrowhead Dr.  Hebron  OH   --    400,522    234    234 
      Shreveport/Bossier City, LA  5417 Campus Dr.  Shreveport  LA   --    257,849    336    351 
2023  2/28/2023  Central Florida  3102 Queen Palm Dr.  Tampa  FL   --    229,605    288    299 
   5/31/2023  Memphis, TN  6495 Polk Ln.  Olive Branch  MS   --    151,691    146    144 
   8/31/2023  Houston, TX  10535 Red Bluff Rd.  Pasadena  TX   --    257,835    308    300 
      Dallas/Ft Worth, TX  3737 Duncanville Rd.  Dallas  TX   --    510,400    428    425 
   10/31/2023  Atlanta, GA  493 Westridge Pkwy.  McDonough  GA   --    676,000    508    506 
   12/31/2023  Shreveport/Bossier City, LA  5001 Greenwood Rd.  Shreveport  LA   --    646,000    427    427 
      Cincinnati/Dayton, OH  675 Gateway Blvd.  Monroe  OH   --    143,664    178    176 
2024  1/31/2024  Indianapolis, IN  1285 W. State Road 32  Lebanon  IN   --    741,880    570    615 
      Memphis, TN  6495 Polk Ln.  Olive Branch  MS   --    118,211    124    123 
      Greenville/Spartanburg, SC  70 Tyger River Dr.  Duncan  SC   --    408,000    500    496 
   3/31/2024  Cleveland, TN  1520 Lauderdale Memorial Hwy.  Cleveland  TN   --    851,370    664    673 
      Indianapolis, IN  4600 Albert S. White Dr.  Whitestown  IN   --    53,240    54    56 
      Columbus, OH  2155 Rohr Rd.  Lockbourne  OH   11    320,190    -    - 
   4/30/2024  Memphis, TN  11555 Silo Dr.  Olive Branch  MS   --    927,742    714    719 
   5/31/2024  Atlanta, GA  7225 Goodson Rd.  Union City  GA   --    370,000    361    348 

 

25

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
INDUSTRIAL PROPERTIES                       
   WAREHOUSE/DISTRIBUTION                             
2024  7/31/2024  Greenville/Spartanburg, SC  5795 North Blackstock Rd.  Spartanburg  SC   --    341,660    418    422 
      Greenville/Spartanburg, SC  231 Apple Valley Rd.  Duncan  SC   --    75,320    96    96 
   9/30/2024  Lafayette, IN  1621 Veterans Memorial Pkwy. E  Lafayette  IN   --    309,400    304    301 
      Memphis, TN  3820 Micro Dr.  Millington  TN   --    701,819    456    468 
   10/31/2024  Dallas/Ft Worth, TX  2115 East Belt Line Rd.  Carrollton  TX   --    58,202    58    60 
      Dallas/Ft Worth, TX  17505 Interstate Hwy 35W  Northlake  TX   --    500,556    567    546 
   11/30/2024  DC/Baltimore, MD  150 Mercury Way  Winchester  VA   --    324,535    429    409 
   12/31/2024  Chicago, IL  749 Southrock Dr.  Rockford  IL   --    150,000    159    158 
      Indianapolis, IN  4600 Albert S. White Dr.  Whitestown  IN   --    95,832    92    85 
2025  4/30/2025  Greenville/Spartanburg, SC  235 Apple Valley Rd.  Duncan  SC   --    177,320    234    224 
      Houston, TX  10565 Red Bluff Rd.  Pasadena  TX   --    248,240    309    295 
   5/31/2025  Atlanta, GA  7875 White Road SW  Austell  GA   --    604,852    1,101    1,059 
   6/30/2025  Savannah, GA  1319 Dean Forest Rd.  Savannah  GA   --    355,527    450    422 
   7/31/2025  Cleveland, OH  7005 Cochran Rd.  Glenwillow  OH   --    458,000    515    541 
      Indianapolis, IN  5352 Performance Way  Whitestown  IN   --    380,000    319    315 
   8/31/2025  Savannah, GA  1315 Dean Forest Rd.  Savannah  GA   --    88,503    131    127 
      Indianapolis, IN  4900 Albert S. White Dr.  Whitestown  IN   --    85,232    82    77 
   12/31/2025  Minneapolis/St Paul, MN  1700 47th Ave North  Minneapolis  MN   --    18,620    151    151 
      Phoenix, AZ  4455 N. Cotton Ln.  Goodyear  AZ   --    160,140    252    246 
2026  1/31/2026  Greenville/Spartanburg, SC  231 Apple Valley Rd.  Duncan  SC   --    120,680    150    148 
   3/31/2026  Lewisburg, TN  633 Garrett Pkwy.  Lewisburg  TN   --    310,000    322    329 
      Central Florida  2455 Premier Row  Orlando  FL   --    205,016    196    127 
   4/30/2026  Phoenix, AZ  16811 W. Commerce Dr.  Goodyear  AZ   --    540,349    611    571 
   6/30/2026  Columbus, OH  351 Chamber Drive  Chillicothe  OH   --    136,495    149    149 
      Columbus, OH  351 Chamber Drive  Chillicothe  OH   --    276,112    321    317 

 

26

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
INDUSTRIAL PROPERTIES                       
   WAREHOUSE/DISTRIBUTION                         
2026  7/31/2026  Savannah, GA  1004 Trade Center Pkwy.  Savannah  GA   --    270,252    359    330 
   8/31/2026  Savannah, GA  1004 Trade Center Pkwy.  Savannah  GA   --    149,415    205    193 
   9/30/2026  St. Louis, MO  3931 Lakeview Corporate Dr.  Edwardsville  IL   --    769,500    674    664 
      Phoenix, AZ  9494 W. Buckeye Rd.  Tolleson  AZ   --    186,336    277    264 
   10/31/2026  Cleveland, OH  10345 Philipp Pkwy.  Streetsboro  OH   --    649,250    721    690 
   11/30/2026  Philadelphia, PA  250 Rittenhouse Cir.  Bristol  PA   --    241,977    287    307 
      Erwin, NY  736 Addison Rd.  Erwin  NY   --    408,000    370    372 
2027  1/31/2027  Kansas City, MO  27200 West 157th St.  New Century  KS   --    446,500    310    282 
   2/28/2027  Jackson, MS  554 Nissan Pkwy.  Canton  MS   --    1,466,000    1,550    1,543 
   4/30/2027  San Antonio, TX  16407 Applewhite Rd.  San Antonio  TX   --    849,275    748    724 
      Nashville, TN  200 Sam Griffin Rd.  Smyrna  TN   --    1,505,000    1,640    1,606 
   6/30/2027  Dallas/Ft Worth, TX  1501 Nolan Ryan Expy.  Arlington  TX   --    74,739    102    104 
   7/31/2027  Savannah, GA  335 Morgan Lakes Industrial Blvd.  Pooler  GA   --    499,500    520    512 
   8/31/2027  Cincinnati/Dayton, OH  600 Gateway Blvd.  Monroe  OH   --    994,013    986    831 
   9/30/2027  Memphis, TN  1550 Hwy 302  Byhalia  MS   --    615,600    610    613 
   10/31/2027  Jackson, TN  201 James Lawrence Rd.  Jackson  TN   --    1,062,055    986    964 
2028  1/31/2028  Atlanta, GA  490 Westridge Pkwy.  McDonough  GA   --    1,121,120    934    903 
   3/31/2028  New York/New Jersey  29-01-Borden Ave./29-10 Hunters Point Ave.  Long Island City  NY   --    140,330    1,284    1,282 
   8/31/2028  Indianapolis, IN  4900 Albert S. White Dr.  Whitestown  IN   --    63,840    -    - 
2029  7/31/2029  Memphis, TN  8500 Nail Rd.  Olive Branch  MS   --    716,080    688    666 
   8/31/2029  Dallas/Ft Worth, TX  8601 E. Sam Lee Ln.  Northlake  TX   --    1,214,526    1,069    990 
   9/30/2029  Chicago, IL   6225 E. Minooka Rd.  Minooka  IL   --    1,034,200    733    682 
   11/30/2029  Chicago, IL  1460 Cargo Court  Minooka  IL   --    705,661    714    669 
   12/31/2029  Chicago, IL  200 International Pkwy S  Minooka  IL   --    473,280    534    489 
2030  1/31/2030  Dallas/Ft Worth, TX  3201 N. Houston School Rd.  Lancaster  TX   --    468,300    417    294 

 

27

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
INDUSTRIAL PROPERTIES                       
   WAREHOUSE/DISTRIBUTION                         
2030  3/31/2030  Memphis, TN  549 Wingo Rd.  Byhalia  MS   --    855,878    1,097    1,070 
   5/31/2030  St. Louis, MO  4015 Lakeview Corporate Dr.  Edwardsville  IL   --    1,017,780    865    709 
   6/30/2030  Richmond, VA  2601 Bermuda Hundred Rd.  Chester  VA   12    1,034,470    963    973 
      Cincinnati/Dayton, OH  700 Gateway  Blvd.  Monroe  OH   --    1,299,492    1,379    1,269 
      Dallas/Ft Worth, TX  1704 S. I-45  Hutchins  TX   --    120,960    154    141 
   8/31/2030  Central Florida  3400 NW 35th St.  Ocala  FL   --    617,055    754    686 
   9/30/2030  Phoenix, AZ  255 143rd Ave.  Goodyear  AZ   --    801,424    1,000    920 
2031  2/28/2031  Greenville/Spartanburg, SC  1021 Tyger Lake Rd.  Spartanburg  SC   --    213,200    261    118 
   5/31/2031  DC/Baltimore, MD  291 Park Center Dr.  Winchester  VA   --    344,700    430    375 
   12/18/2031  DC/Baltimore, MD  80 Tyson Dr.  Winchester  VA   --    400,400    592    549 
2032  4/30/2032  Houston, TX  13930 Pike Rd.  Missouri City  TX   --    -    531    512 
   8/24/2032  Detroit, MI  16950 Pine Dr.  Romulus  MI   --    500,023    642    616 
   10/31/2032  Portland, OR  27255 SW 95th Ave.  Wilsonville  OR   --    508,277    780    700 
2033  3/31/2033  Phoenix, AZ  3405 S. McQueen Rd.  Chandler  AZ   --    201,784    1,125    1,001 
2034  4/30/2034  Raleigh, NC  1133 Poplar Creek Rd.  Henderson  NC   --    147,448    137    - 
   10/31/2034  Champaign-Urbana, IL  1001 Innovation Rd.  Rantoul  IL   --    813,126    1,049    978 
   12/31/2034  Greenville/Spartanburg, SC  27 Inland Pkwy.  Greer  SC   --    1,318,680    1,386    791 
2035  10/22/2035  Detroit, MI  2860 Clark St.  Detroit  MI   --    189,960    551    551 
2036  5/31/2036  Charlotte, NC  671 Washburn Switch Rd.  Shelby  NC   --    673,425    696    639 
2038  3/31/2038  Houston, TX  13901/14035 Industrial Rd.  Houston  TX   --    132,449    1,693    1,518 
   WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - SINGLE TENANT             43,995,996   $49,144   $46,234 
   WAREHOUSE/DISTRIBUTION - NOT STABILIZED (13)                         
2031  5/31/2031  Central Florida  5275 Dranefield Rd.  Lakeland  FL   --    117,440    118    - 
   Vacancy  Central Florida  5275 Dranefield Rd.  Lakeland  FL   --    104,694    -    - 
   WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - NOT STABILIZED             222,134   $118   $- 

 

28

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
INDUSTRIAL PROPERTIES                       
MULTI-TENANT / VACANCY (7)(10)                            
   WAREHOUSE/DISTRIBUTION                         
   Various  Nashville, TN  6050 Dana Way  Antioch  TN   3, 8
(97%)		    674,528    557    562 
   Vacancy  Charlotte, NC  2203 Sherrill Dr.  Statesville  NC   --    639,800    -    - 
   Various  Boston, MA  121 Technology Dr.  Durham  NH   3, 8, 15
(9%)		    500,500    626    1,240 
   WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - MULT-TENANT/VACANCY             1,814,828   $1,183   $1,802 
                                    
   WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL             46,032,958   $50,445   $48,036 
SINGLE TENANT                                   
   COLD STORAGE                         
2028  8/31/2028  Atlanta, GA  1420 Greenwood Rd.  McDonough  GA   --    296,972    542    549 
2031  10/31/2031  Chicago, IL  1020 W. Airport Rd.  Romeoville  IL   --    188,166    918    890 
2032  10/31/2032  Detroit, MI  26700 Bunert Rd.  Warren  MI   --    260,243    971    903 
2034  9/30/2034  Las Vegas, NV  5625 North Sloan Ln.  North Las Vegas  NV   --    180,235    639    602 
                                    
   COLD STORAGE INDUSTRIAL SUBTOTAL             925,616   $3,070   $2,944 
SINGLE TENANT                            
   HEAVY MANUFACTURING                         
2023  12/31/2023  Nashville, TN  120 Southeast Pkwy. Dr.  Franklin  TN   --    289,330    184    184 
2024  4/30/2024  Portland/South Portland, ME  113 Wells St.  North Berwick  ME   --    993,685    450    407 
   10/31/2024  Detroit, MI  43955 Plymouth Oaks Blvd.  Plymouth  MI   --    311,612    398    396 
2025  6/30/2025  Owensboro, KY  4010 Airpark Dr.  Owensboro  KY   --    211,598    302    302 
      Elizabethtown-Fort Knox, KY  730 North Black Branch Rd.  Elizabethtown  KY   --    167,770    134    134 
      Elizabethtown-Fort Knox, KY  750 North Black Branch Rd.  Elizabethtown  KY   --    539,592    710    710 
      Nashville, TN  301 Bill Bryan Blvd.  Hopkinsville  KY   --    424,904    422    422 
   7/14/2025  Charlotte, NC  590 Ecology Ln.  Chester  SC   --    420,597    464    613 
   12/19/2025  Owensboro, KY  1901 Ragu Dr.  Owensboro  KY   5    443,380    470    483 
2026  9/30/2026  Crossville, TN  900 Industrial Blvd.  Crossville  TN   --    222,200    144    144 
2029  11/24/2029  Anniston-Oxford, AL  318 Pappy Dunn Blvd.  Anniston  AL   --    276,782    435    430 

 

29

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
INDUSTRIAL PROPERTIES                       
   HEAVY MANUFACTURING                         
2035  3/31/2035  Houston, TX  13863 Industrial Rd.  Houston  TX   --    187,800    609    553 
      Houston, TX  7007 F.M. 362 Rd.  Brookshire  TX   --    262,095    478    434 
                                    
   HEAVY MANUFACTURING INDUSTRIAL SUBTOTAL             4,751,345   $5,200   $5,212 
SINGLE TENANT                            
   LIGHT MANUFACTURING                         
2021  11/30/2021  Lumberton, NC  2880 Kenny Biggs Rd.  Lumberton  NC   16    423,280    339    375 
2022  8/31/2022  Greenville/Spartanburg, SC  50 Tyger River Dr.  Duncan  SC   --    221,833    242    260 
2024  5/31/2024  Bingen, WA  901 East Bingen Point Way  Bingen  WA   --    124,539    659    671 
2027  12/31/2027  Cincinnati/Dayton, OH  10590 Hamilton Ave.  Cincinnati  OH   --    264,598    203    203 
2028  9/30/2028  West Michigan  904 Industrial Rd.  Marshall  MI   --    246,508    203    192 
2031  6/30/2031  Cincinnati/Dayton, OH  10000 Business Blvd.  Dry Ridge  KY   --    336,350    382    351 
2033  12/31/2033  Dallas/Ft Worth, TX  2115 East Belt Line Rd.  Carrollton  TX   --    298,653    324    265 
2037  3/31/2037  Dallas/Ft Worth, TX  4005 E I-30  Grand Prairie  TX   --    215,000    468    408 
2042  5/31/2042  Columbus, GA  4801 North Park Dr.  Opelika  AL   --    165,493    811    665 
                                    
   LIGHT MANUFACTURING INDUSTRIAL SUBTOTAL             2,296,254   $3,631   $3,390 
                                    
INDUSTRIAL TOTAL/WEIGHTED AVERAGE           97.9% Leased (6)    54,006,173   $62,346   $59,582 

 

30

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
OFFICE PROPERTIES                       
SINGLE TENANT                            
2021  4/30/2021  Philadelphia, PA  1701 Market St.  Philadelphia  PA   18    1,220    16    16 
   8/31/2021  Atlanta, GA  3500 North Loop Rd.  McDonough  GA   --    62,218    223    223 
   11/30/2021  Dallas/Ft Worth, TX  1401 Nolan Ryan Expy.  Arlington  TX   17    4,979    24    24 
2022  1/31/2022  Dallas/Ft Worth, TX  1401 Nolan Ryan Expy.  Arlington  TX   4    111,409    235    464 
   7/31/2022  Tucson, AZ  1440 E 15th St.  Tucson  AZ   --    28,591    144    144 
2023  9/30/2023  Philadelphia, PA  1701 Market St.  Philadelphia  PA   --    8,070    -    - 
   12/14/2023  South Bay/San Jose, CA  3333 Coyote Hill Rd.  Palo Alto  CA   --    202,000    1,660    1,768 
2024  1/31/2024  Philadelphia, PA  1701 Market St.  Philadelphia  PA   --    289,432    1,065    1,087 
   2/14/2024  Florence, SC  1362 Celebration Blvd.  Florence  SC   --    32,000    143    151 
   5/31/2024  Charlotte, NC  3476 Stateview Blvd.  Fort Mill  SC   --    169,083    503    508 
      Charlotte, NC  3480 Stateview Blvd.  Fort Mill  SC   --    169,218    522    508 
   9/30/2024  Dallas/Ft Worth, TX  1401 Nolan Ryan Expy.  Arlington  TX   --    23,228    88    83 
2025  2/28/2025  Dallas/Ft Worth, TX  1401 Nolan Ryan Expy.  Arlington  TX   --    13,590    54    55 
   5/31/2025  Philadelphia, PA  1701 Market St.  Philadelphia  PA   --    2,641    67    67 
   6/30/2025  McAllen/Edinburg/Pharr, TX  3711 San Gabriel  Mission  TX   --    75,016    257    259 
2027  1/31/2027  Philadelphia, PA  1701 Market St.  Philadelphia  PA   --    1,975    -    - 
   5/31/2027  DC/Baltimore, MD  13651 McLearen Rd.  Herndon  VA   --    159,644    667    718 
2031  11/30/2031  New York/New Jersey  4 Apollo Drive  Whippany  NJ   --    123,734    510    507 
2037  6/30/2037  New York/New Jersey  1415 Wyckoff Rd.  Wall  NJ   --    157,511    873    1,058 
N/A  Vacancy  Philadelphia, PA  1701 Market St.  Philadelphia  PA   --    699    -    - 
      Dallas/Ft Worth, TX  1401 Nolan Ryan Expy.  Arlington  TX   --    8,602    -    - 
   N/A  Philadelphia, PA  1701 Market St.  Philadelphia  PA   --    -    159    159 
                                    
SINGLE TENANT OFFICE TOTAL                1,644,860   $7,210   $7,799 

 

31

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
OFFICE PROPERTIES                       
MULTI-TENANT / VACANCY (7)(10)                            
   Various  Baton Rouge, LA  4455 American Way  Baton Rouge  LA   3, 8
(34%)		    70,100    99    101 
   Various  Phoenix, AZ  13430 North Black Canyon Fwy.  Phoenix  AZ   3 (61%)    138,940    334    392 
                                    
MULTI-TENANT/VACANCY OFFICE TOTAL                209,040   $433   $493 
                                    
OFFICE SUBTOTAL/WEIGHTED AVERAGE           94.1% Leased    1,853,900   $7,643   $8,292 

 

32

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration  Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
OTHER PROPERTIES                             
SINGLE TENANT                            
SPECIALTY                                   
2048  12/31/2048  DC/Baltimore, MD  30 Light St.  Baltimore  MD   --    -    78    78 
2055  1/31/2055  Central Florida  499 Derbyshire Dr.  Venice  FL   --    31,180    477    353 
2112  8/31/2112  DC/Baltimore, MD  201-215 N. Charles St.  Baltimore  MD   --    -    77    77 
                                    
SINGLE TENANT OTHER TOTAL                31,180   $632   $508 
                                    
OTHER SUBTOTAL/WEIGHTED AVERAGE           100% Leased    31,180   $632   $508 
                                    
TOTAL OFFICE & OTHER/WEIGHTED AVERAGE           94.2% Leased    1,885,080   $8,275   $8,800 
                                    
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE           97.8% Leased (6)    55,891,253   $70,621   $68,382 

 

33

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration   Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   LXP % Ownership   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
NON-CONSOLIDATED PROPERTIES                        
NNN OFFICE JV PROPERTIES                                  
2022   12/31/2022  Chicago, IL  231 N. Martingale Rd.  Schaumburg  IL   --    317,198    20%   1,150    1,213 
2023   3/31/2023  Dallas/Ft Worth, TX  8900 Freeport Pkwy.  Irving  TX   --    268,445    20%   1,232    1,162 
2025   3/14/2025  Dallas/Ft Worth, TX  601 & 701 Experian Pkwy.  Allen  TX   --    292,700    20%   810    768 
    6/30/2025  Atlanta, GA  2500 Patrick Henry Pkwy.  McDonough  GA   --    111,911    20%   407    366 
    12/31/2025  Dallas/Ft Worth, TX  4001 International Pkwy.  Carrollton  TX   --    138,443    20%   634    617 
2026   3/31/2026  Columbus, OH  500 Olde Worthington Rd.  Westerville  OH   --    97,000    20%   336    309 
    4/30/2026  Richmond, VA  800 East Canal St.  Richmond  VA   --    2,568    20%   14    14 
2027   2/28/2027  Richmond, VA  800 East Canal St.  Richmond  VA   --    8,503    20%   52    38 
    6/30/2027  Kansas City, MO  3902 Gene Field Rd.  St. Joseph  MO   --    98,849    20%   529    506 
    7/6/2027  Columbus, OH  2221 Schrock Rd.  Columbus  OH   --    42,290    20%   171    164 
    8/7/2027  Philadelphia, PA  25 Lakeview Dr.  Jessup  PA   --    150,000    20%   583    559 
2030   8/31/2030  Richmond, VA  800 East Canal St.  Richmond  VA   --    224,537    20%   1,748    1,829 
    9/30/2030  Richmond, VA  800 East Canal St.  Richmond  VA   --    25,707    20%   193    167 
    10/31/2030  Richmond, VA  800 East Canal St.  Richmond  VA   --    4,235    20%   23    23 
2031   1/10/2031  Houston, TX  810 Gears Rd.  Houston  TX   --    68,985    20%   300    356 
    3/1/2031  Richmond, VA  800 East Canal St.  Richmond  VA   --    26,047    20%   211    183 
    9/30/2031  Richmond, VA  800 East Canal St.  Richmond  VA   --    7,105    20%   1    1 
2032   4/30/2032  Charlotte, NC  1210 AvidXchange Ln.  Charlotte  NC   --    201,450    20%   1,506    1,370 
    9/30/2032  Houston, TX  10001 Richmond Ave.  Houston  TX   --    554,385    20%   1,480    1,526 
2035   2/28/2035  Dallas/Ft Worth, TX  6555 Sierra Dr.  Irving  TX   --    247,254    20%   1,241    974 
    4/30/2035  Parachute, CO  143 Diamond Ave.  Parachute  CO   --    49,024    20%   289    295 
2088   8/8/2088  Richmond, VA  800 East Canal St.  Richmond  VA   --    -    20%   89    105 
N/A   Vacancy  Houston, TX  810 Gears Rd.  Houston  TX   --    9,910    20%   -    - 
       Richmond, VA  800 East Canal St.  Richmond  VA   --    31,607    20%   -    - 
                                          
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE            98.6% Leased    2,978,153        $12,999   $12,545 

 

34

 

 

LEXINGTON REALTY TRUST

PROPERTY LEASES AND VACANCIES - CONSOLIDATED PORTFOLIO - 3/31/2021

 

Year of Lease Expiration   Date of Lease  Expiration  CoStar Market(9)  Property Location  City  State   Note   Sq. Ft.
Leased or Available (1)		   LXP % Ownership   Base Rent as of
3/31/2021
($000) (2)		   Cash Base Rent as of 3/31/2021
($000) (2)		 
OTHER NON-CONSOLIDATED PROPERTIES                                  
                                          
2036   8/31/2036  Houston, TX  2203 North Westgreen Blvd.  Katy  TX   --    274,000    25%   1,709    1,709 
                                          
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE     100% Leased    274,000        $1,709   $1,709 
                                          
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE     98.7% Leased    3,252,153        $14,708   $14,254 

 

Footnotes
1 Square footage leased or available.
2 Three months ended 3/31/2021 Base Rent and Cash Base Rent.
3 Represents percent leased as of 3/31/2021.
4 Tenant exercised termination option effective January 2022 with a $2.6 million termination payment.
5 Lexington has a 71.1% interest in this property.
6 Percent leased is for Stabilized Portfolio at 3/31/2021.
7 Multi-tenant properties are properties less than 50% leased to a single tenant.
8 Base Rent and Cash Base Rent amounts represent/include prior tenant.
9 Based on CoStar.com inventory data.
10 The multi-tenanted / vacant properties incurred approximately $372 thousand in operating expenses, net for the three months ended 3/31/2021.
11 Development project placed into service at 3/31/2021.  Rent commences 4/1/2021.
12 Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet).
13 Property not in Stabilized Portfolio at 3/31/2021.
14 Property held for sale at 3/31/2021 and property was sold subsequent to 3/31/2021.
15 Primary tenant terminated its lease effective 3/30/2021 for a $10.5 million payment.
16 Subsequent to 3/31/2021, lease extended to 11/30/2026.
17 Subsequent to 3/31/2021, lease extended to 11/30/2023.
18 Subsequent to 3/31/2021, lease extended to 3/31/2022.
19 Subsequent to 3/31/2021, property disposed.

 

35

 

 

LEXINGTON REALTY TRUST

MORTGAGES AND NOTES PAYABLE

3/31/2021

 

Property  Footnotes   Debt
Balance
($000)		   Interest
Rate (%)		   Maturity (a)   Current Estimated Annual Debt Service ($000)  (b)   Balloon Payment
($000)		 
INDUSTRIAL                              
Chester, SC       $4,692    5.380%   08/2025   $1,144   $362 
Long Island City, NY        31,842    3.500%   03/2028    4,879    - 
Goodyear, AZ        41,877    4.290%   08/2031    2,197    33,399 
Warren, MI        25,850    5.380%   11/2032    1,391    22,037 
Industrial Subtotal/Wtg. Avg./Years Remaining (c)       $104,261    4.368%   9.3   $9,611   $55,798 
                               
OFFICE                              
Whippany, NJ       $10,786    6.298%   11/2021   $840   $10,400 
Palo Alto, CA        18,606    3.970%   12/2023    7,059    - 
Office Subtotal/Wtg. Avg./Years Remaining (c)       $29,392    4.824%   1.9   $7,899   $10,400 
                               
Subtotal/Wtg. Avg./Years Remaining (c)       $133,653    4.468%   7.7   $17,510   $66,198 
                               
CORPORATE (e)                              
Revolving Credit Facility   (g)   $-    -    02/2023   $-   $- 
Senior Notes        188,756    4.250%   06/2023    8,022    188,756 
Senior Notes        198,932    4.400%   06/2024    8,753    198,932 
Senior Notes        400,000    2.700%   09/2030    10,800    400,000 
Term Loan   (h)    300,000    2.732%   01/2025    8,310    300,000 
Trust Preferred Notes   (i)    129,120    1.905%   04/2037    2,494    129,120 
Subtotal/Wtg. Avg./Years Remaining (c)       $1,216,808    3.142%   6.6   $38,379   $1,216,808 
                               
Total/Wtg. Avg./Years Remaining (c)   (d)   $1,350,461    3.273%   6.7   $55,889   $1,283,006 

 

36

 

 

LEXINGTON REALTY TRUST

MORTGAGES AND NOTES PAYABLE (CONTINUED)

3/31/2021 

($000)

 

   GAAP Balance   Deferred Loan Costs, net   Discounts   Gross Balance 
                 
Mortgages and notes payable (f)  $131,849   $1,804   $-   $133,653 
Revolving credit facility borrowings (e)   -    -    -    - 
Term loans payable (e)   298,069    1,931    -    300,000 
Senior notes payable(e)   779,607    4,718    3,363    787,688 
Trust preferred securities (e)   127,520    1,600    -    129,120 
Consolidated debt  $1,337,045   $10,053   $3,363   $1,350,461 

 

Footnotes
(a) Subtotal and total based on weighted-average term to maturity shown in years based on debt balance.
(b) Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months.
(c) Total shown may differ from detailed amounts due to rounding.
(d) See reconciliations of non-GAAP measures in this document.
(e) Unsecured.
(f) Secured.
(g) Rate ranges from LIBOR plus 0.775% to 1.45%.
(h) Rate ranges from LIBOR plus 0.85% to 1.65%. LIBOR rate was fixed at 1.732% through January 2025 via interest rate swap agreements.
(i) Rate is three month LIBOR plus 170 bps.

 

37

 

 

LEXINGTON REALTY TRUST

DEBT MATURITY SCHEDULE 3/31/2021

($000)

 

Consolidated Properties 
Year   Mortgage
Scheduled
 Amortization		   Mortgage
Balloon Payments		   Corporate Debt 
2021 - remaining   $8,960   $10,400   $- 
2022    12,224    -    - 
2023    13,267    -    188,756 
2024    6,431    -    198,932 
2025    6,214    362    300,000 
    $47,096   $10,762   $687,688 

 

Debt Maturity Profile (1)

 

 

Footnotes
(1) Percentage denotes weighted-average interest rate.

 

38

 

 

LEXINGTON REALTY TRUST

DEBT COVENANTS (1)

 

CORPORATE LEVEL DEBT            
     MUST BE:     3/31/2021 
Bank Loans:            
             
Maximum Leverage    < 60%     34.2%
Fixed Charge Coverage    > 1.5x     3.5 
Recourse Secured Indebtedness Ratio    < 10% cap value     0.0%
Secured Indebtedness Ratio    < 40%     5.7%
Unsecured Debt Service Coverage    > 2.0x     6.1x
Unencumbered Leverage    < 60%     30.7%
             
             
Bonds:            
             
Debt to Total Assets    < 60%     31.1%
Secured Debt to Total Assets    < 40%     3.1%
Debt Service Coverage    > 1.5x     5.5x
Unencumbered Assets to Unsecured Debt    > 150%     331.8%

 

Footnotes
(1) The above is a summary of the key financial covenants for Lexington’s credit facility and term loan and senior notes, as of March 31, 2021 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date and applicable.  These calculations are presented to show Lexington’s compliance with such covenants only and are not measures of Lexington’s liquidity or performance.

 

39

 

 

LEXINGTON REALTY TRUST

COMPONENTS OF NET ASSEST VALUE 3/31/2021

($000)

 

The purpose of providing the following information is to enable readers to derive their own estimates of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation.

 

Consolidated properties three-month net operating income (NOI) (1)     
Industrial  $56,895 
Office/Other   7,913 
Total Net Operating Income  $64,808 
      
Lexington’s share of non-consolidated three-month NOI (1)     
NNN OFFICE JV     
Office  $2,477 
OTHER JV     
Other  $387 
      
Other income     
Advisory fees  $754 

 

   Three months ended 
NOI for NAV Reconciliation:  3/31/2021 
     
NOI as reported  $67,679 
Less NOI:     
   Disposed of properties   (463)
   Held for sale assets   (897)
   Assets acquired in 2021   (158)
   Assets less than 70% leased / Other   (1,353)
NOI for NAV  $64,808 

 

In service assets not fairly valued by capitalized NOI method (1)    
Wholly-owned assets acquired/completed in 2021  $68,816 
Wholly-owned assets less than 70% leased  $29,345 
      
Add other assets:     
Assets held for sale - consolidated  $18,383 
Construction in progress   1,885 
Developable land   21,076 
Development investment at cost incurred   74,359 
Cash and cash equivalents   142,074 
Restricted cash   28,101 
Accounts receivable   2,954 
Other assets   10,665 
Total other assets  $299,497 
      
Liabilities:     
Corporate level debt (face amount)  $1,216,808 
Mortgages and notes payable (face amount)   133,653 
Dividends payable   33,317 
Liabilities held for sale - consolidated   6 
Accounts payable, accrued expenses and other liabilities   66,351 
Preferred stock, at liquidation value   96,770 
Lexington’s share of non-consolidated mortgages (face amount)   81,688 
Total deductions  $1,628,593 
      
Common shares & OP units at 3/31/2021   280,412,763 

 

Footnotes
(1) NOI for the existing property portfolio at March 31, 2021, excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70%, assets placed into service and assets acquired in 2021. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, Lexington’s net book value has been used.

 

40

 

 

LEXINGTON REALTY TRUST 

NON-GAAP MEASURES

DEFINITIONS

 

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Supplemental Information and in other public disclosures.

 

Lexington believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable Generally Accepted Accounting Principles (“GAAP”) measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund operations. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating Lexington’s financial performance or cash flow from operating, investing, or financing activities or liquidity.

 

Definitions:

 

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties, impairment charges, debt satisfaction gains (charges), net, non-cash charges, net, straight-line adjustments, non-recurring charges and adjustments for pro-rata share of non-wholly owned entities. Lexington’s calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. Lexington believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA.

 

Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. Lexington believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio. The following is a reconciliation of rental revenue to Base Rent.

 

   Three months ended 
   3/31/2021 ($000) 
      
Rental revenue as reported  $91,645 
      
Base Rent from sold properties   (658)
Lease termination income   (10,941)
Ancillary revenue   159 
Reimbursements   (9,584)
      
Base Rent per supplement  $70,621 

 

41

 

 

LEXINGTON REALTY TRUST

NON-GAAP MEASURES

DEFINITIONS

 

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements and lease termination income and includes ancillary income. Lexington believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs. The following is a reconciliation of Base Rent to Cash Base Rent.

 

   Three months ended 
   3/31/2021($000) 
      
Base Rent per supplement  $70,621 
      
Straight-line adjustments   (1,997)
Lease incentive   218 
Amortization of above/below market leases   (460)
      
Cash Base Rent per supplement  $68,382 

 

Funds from Operations (“FFO”) and Adjusted Company FFO: Lexington believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity real estate investment trust (“REIT”). 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 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.

 

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

 

Lexington presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder’s option, into Lexington’s common shares, are converted at the beginning of the period. Lexington also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of Lexington’s real estate portfolio. Lexington believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

 

42

 

 

LEXINGTON REALTY TRUST 

NON-GAAP MEASURES

DEFINITIONS

 

Net Operating Income (NOI): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington’s historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income) and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington’s NOI may not be comparable to that of other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Lexington believes that net income is the most directly comparable GAAP measure to NOI.

 

Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned and included in our portfolio for two comparable reporting periods. As Same-Store NOI excludes the change in NOI from acquired and disposed of properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, Lexington’s Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of Lexington’s operating performance. However, Same-Store NOI should not be viewed as an alternative measure of Lexington ‘s financial performance since it does not reflect the operations of Lexington’s entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of Lexington’s properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact Lexington’s results from operations. Lexington believes that net income is the most directly comparable GAAP measure to Same-Store NOI.

 

Stabilized Portfolio: All real estate properties other than acquired or developed properties that have not achieved 90% occupancy within one-year of acquisition or substantial completion.

 

43

 

 

LEXINGTON REALTY TRUST

SELECT CREDIT METRICS DEFINITIONS

($000)

 

Adjusted Company FFO Payout:  Three months ended
March 31, 2021		   (Debt + Preferred) / Gross Assets:  Three months ended
March 31, 2021		 
Common share dividends per share  $0.1075   Consolidated debt  $1,337,045 
Adjusted Company FFO per diluted share   0.22   Preferred shares liquidation preference   96,770 
Adjusted Company FFO payout ratio   48.9%  Debt and preferred  $1,433,815 
              
Unencumbered Assets:       Total assets  $3,490,233 
Real estate, at cost  $4,011,409   Plus depreciation and amortization:     
held for sale real estate, at cost   35,392   Real estate   891,448 
less encumbered real estate, at cost   (245,493)  Deferred lease costs   11,191 
Unencumbered assets  $3,801,308   Held for sale assets   17,419 
              
Unencumbered NOI:       Gross assets  $4,410,291 
NOI  $67,679         
Disposed of properties NOI   (463)  (Debt + Preferred) / Gross Assets   32.5%
Adjusted NOI   67,216         
less encumbered adjusted NOI   (5,789)  Debt  / Gross Assets:     
Unencumbered adjusted NOI  $61,427   Consolidated debt  $1,337,045 
              
Unencumbered NOI %   91.4%  Gross assets  $4,410,291 
              
Net Debt  / Adjusted EBITDA:       Debt / Gross assets   30.3%
Adjusted EBITDA  $271,466         
        Secured Debt  / Gross Assets:     
Consolidated debt  $1,337,045   Total Secure Debt  $131,849 
less consolidated cash and cash equivalents (1)   (169,059)        
Non-consolidated debt, net   80,398   Gross assets  $4,410,291 
Net debt  $1,248,384         
        Secured Debt / Gross Assets   3.0%
Net debt / Adjusted EBITDA   4.6x        
        Unsecured Debt / Unencumbered NOI:     
(Net Debt + Preferred)  / Adjusted EBITDA:       Consolidated debt  $1,337,045 
Adjusted EBITDA  $271,466   less mortgages and notes payable   (131,849)
        Unsecured Debt  $1,205,196 
Net debt  $1,248,384         
Preferred shares liquidation preference   96,770   Unencumbered adjusted NOI (Annual)  $232,455 
Net debt + preferred  $1,345,154         
        Unsecured Debt / Unencumbered NOI   5.2x
(Net Debt + Preferred) / Adjusted EBITDA   5.0x        

 

For the 12/31/2020, 12/31/2019 and 12/31/2018 Select Credit Metric reconciliation see corresponding period Quarterly Supplemental Information.
(1) Includes funds held at 1031 exchange intermediaries.

 

44

 

 

Investor Information

 

Transfer Agent

 

Computershare Overnight Correspondence:
PO Box 505000 462 South 4th Street, Suite 1600
Louisville, KY 40233 Louisville, KY 40202
(800) 850-3948  
www-us.computershare.com/investor  

 

Investor Relations

 

Heather Gentry  
Senior Vice President, Investor Relations
Telephone (direct) (212) 692-7219
E-mail hgentry@lxp.com

 

Research Coverage

 

Bank of America/Merrill Lynch        
James Feldman (646) 855-5808      
      KeyBanc Capital Markets Inc.  
Evercore Partners     Craig Mailman (917) 368-2316
Sheila K. McGrath (212) 497-0882      
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