Lexington Realty Trust Sells New York City Land Investments for $338 Million
September 30 2016 - 7:00AM
Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate
investment trust (REIT) focused on single-tenant real estate
investments, today announced that it has sold its three remaining
New York City land investments for a gross sales price of
approximately $338.2 million at a GAAP capitalization rate of 13.6%
and a cash capitalization rate of 4.6%. In connection with the
sale, approximately $213.1 million of mortgage debt was assumed by
the buyer.
“The disposition of our remaining New York City
land investments turned out to be a great success. These
investments produced strong cash flow and capital
appreciation for our shareholders and the sale came in at
better than expected pricing. Furthermore, the sale has
reduced our leverage considerably and produced cash to retire the
outstanding balance on our revolving credit facility and fund other
growth opportunities,” said T. Wilson Eglin, Chief Executive
Officer and President of Lexington.
As a result of the sale, Lexington expects to
record an estimated non-cash impairment charge of approximately
$65.0 million in the third quarter of 2016 primarily related to the
writing off of the deferred rent receivable it recognized under
Generally Accepted Accounting Principles (GAAP).
ABOUT LEXINGTON REALTY
TRUST
Lexington Realty Trust (NYSE:LXP) is a publicly
traded real estate investment trust (REIT) that owns a diversified
portfolio of real estate assets consisting primarily of equity and
debt investments in single-tenant net-leased commercial properties
across the United States. Lexington seeks to expand its portfolio
through build-to-suit transactions, sale-leaseback transactions and
acquisitions. For more information or to follow Lexington on
social media, visit www.lxp.com.
GAAP and Cash Capitalization Rate Definition:
GAAP and cash capitalization rates are measures of operating
performance used to evaluate the individual performance of an
investment. These measures are not presented or intended to be
viewed as a liquidity or performance measure that present a
numerical measure of Lexington's historical or future financial
performance, financial position or cash flows. The capitalization
rate is calculated by dividing the annualized net operating income
(except GAAP rent adjustments are added back to rental income to
calculate GAAP capitalization rate) the investment has generated
divided by sale price.
Net Operating Income (NOI) Definition: 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), tenant reimbursements
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 other
companies. Because NOI excludes general and administrative
expenses, interest expense, depreciation and amortization,
acquisition-related expenses, other non-property 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.
Contact:
Investor or Media Inquiries for Lexington Realty Trust:
Heather Gentry, Senior Vice President of Investor Relations
Lexington Realty Trust
Phone: (212) 692-7200 E-mail: hgentry@lxp.com
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