LXP
$10.47
Lexington Realty Trust
$.22
2.15%
Earnings Details
3rd Quarter September 2020
Thursday, November 05, 2020 6:00:00 AM
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Summary

Lexington Realty Trust Reaffirms

Lexington Realty Trust (LXP) reported 3rd Quarter September 2020 earnings of $0.19 per share on revenue of $84.5 million. The consensus earnings estimate was $0.19 per share on revenue of $81.0 million. Revenue grew 3.6% on a year-over-year basis.

The company said it continues to expect 2020 funds from operations of $0.74 to $0.76 per share. The current consensus FFO estimate is $0.75 per share for the year ending December 31, 2020.

Lexington Realty Trust is a self-managed and self-administered Maryland statutory real estate investment trust which acquires, owns, and manages a geographically diversified portfolio of net leased office, industrial and retail properties.

Results
Reported Earnings
$0.19
Earnings Whisper
-
Consensus Estimate
$0.19
Reported Revenue
$84.5 Mil
Revenue Estimate
$81.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lexington Realty Trust Reports Third Quarter 2020 Results and Announces Dividend Increase

NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

  • Recorded Net Income attributable to common shareholders of $40.3 million, or $0.15 per diluted common share.
  • Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $53.8 million, or $0.19 per diluted common share.
  • Collected 99.9% of Cash Base Rents due during the third quarter.
  • Acquired two industrial properties for an aggregate cost of $70.1 million.
  • Disposed of three properties for an aggregate gross disposition price of $66.5 million.
  • Increased industrial portfolio to 88.5% of gross book value of real estate assets, excluding held for sale assets.
  • Issued $400.0 million aggregate principal amount of 2.70% Senior Notes due 2030 at an issuance price of 99.233% of the principal amount.
  • Repurchased $61.2 million and $51.1 million aggregate principal amount of outstanding 4.25% Senior Notes due 2023 and 4.40% Senior Notes due 2024, respectively.
  • Repaid the full outstanding balance of $40.0 million on the revolving credit facility.
  • Raised net proceeds of approximately $6.7 million through the ATM program.
  • Entered into forward sales transactions through the ATM program for 3.9 million common shares at an initial weighted-average price of $11.23 per common share.
  • Completed 1.3 million square feet of new leases and lease extensions.

Subsequent Events

  • Disposed of three properties for an aggregate gross disposition price of $39.6 million.
  • Entered into an agreement to fund a build-to-suit industrial property in the Phoenix, Arizona market for an estimated cost of $72.0 million, which will be subject to a 15-year net lease.
  • Declared quarterly common share/unit dividend/distribution of $0.1075 per share/unit, an increase of 2.4%.

Adjusted Company FFO is a non-GAAP financial measure. It and certain other non-GAAP financial measures are defined and reconciled later in this press release.

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, “Our operations continued to produce strong results in the third quarter. We collected nearly 100% of Cash Base Rent and increased our percentage leased to 98.9%. To-date, we have added $429.8 million of high-quality industrial assets to our portfolio. We have made significant progress toward our goal of transitioning to a 100% industrial REIT, with industrial exposure representing 88.5% of total gross real estate assets, excluding held-for-sale assets, at quarter end. Given our strong results and continued progress, we are increasing our annualized common share dividend by 2.4% to $0.43 per common share."

FINANCIAL RESULTS

Revenues

For the quarter ended September 30, 2020, total gross revenues were $84.5 million, compared with total gross revenues of $81.6 million for the quarter ended September 30, 2019. The increase is primarily attributable to acquisitions, partially offset by property sales and a decrease in fee income.

Net Income Attributable to Common Shareholders

For the quarter ended September 30, 2020, net income attributable to common shareholders was $40.3 million, or $0.15 per diluted share, compared with net income attributable to common shareholders for the quarter ended September 30, 2019 of $141.6 million, or $0.59 per diluted share.

Adjusted Company FFO

For the quarter ended September 30, 2020, Lexington generated Adjusted Company FFO of $53.8 million, or $0.19 per diluted share, compared to Adjusted Company FFO for the quarter ended September 30, 2019 of $48.7 million, or $0.20 per diluted share.

Dividends/Distributions

As previously announced, during the third quarter of 2020, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended September 30, 2020 of $0.1050 per common share/unit, which was paid on October 15, 2020 to common shareholders/unitholders of record as of September 30, 2020. Lexington also declared a cash dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended September 30, 2020, which is expected to be paid on November 16, 2020 to Series C Preferred Shareholders of record as of October 30, 2020.

Today, Lexington announced that it declared a regular quarterly common share/unit dividend/distribution for the quarter ending December 31, 2020 of $0.1075 per common share/unit payable on January 15, 2021 to common shareholders/unitholders of record as of December 31, 2020. This represents an increase of 2.4% from the previous quarterly per common share/unit dividend/distribution and equates to an annualized increase of $0.01 per common share/unit and an annualized dividend/distribution of $0.43 per common share/unit, subject to and assuming future declarations.

Lexington also announced that it declared a cash dividend of $0.8125 per share of Series C Preferred for the quarter ending December 31, 2020, which is expected to be paid on February 16, 2021 to shareholders of record as of January 29, 2021

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS
Property Type Market Sq. Ft. Initial Basis
($000)
 Approximate Lease Term (Yrs)
Industrial-Warehouse/distribution DC/Baltimore, MD 324,535 $29,143  4
Industrial-Warehouse/distribution Savannah, GA 419,667 40,908  6
    744,202 $70,051   

The above properties were acquired at aggregate weighted-average GAAP and Cash capitalization rates of 5.7% and 5.3%, respectively.  Year to date total 2020 acquisition activity was $429.8 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.5% and 5.1%, respectively.

DEVELOPMENT PROJECTS  
Project (% owned)  Market Property Type Estimated Sq. Ft. Estimated Project Cost ($000) GAAP Investment Balance as of 9/30/2020 ($000)(1) Lexington Amount Funded as of 9/30/2020 ($000) Estimated Completion Date
Consolidated:              
Fairburn (90%) Atlanta, GA Industrial 910,000 $53,812  $30,638  $22,543  1Q 2021
Rickenbacker (100%) Columbus, OH Industrial 320,000 20,300  11,310  8,233  4Q 2020
        $74,112  $41,948  $30,776   
               
Non-consolidated:              
ETNA Park 70 (90%)(2) Columbus, OH Industrial TBD TBD $11,352  $11,714  TBD
ETNA Park 70 East (90%)(2) Columbus, OH Industrial TBD TBD 7,391  7,431  TBD
          $18,743  $19,145   
               
  1. GAAP investment balance is in real estate under construction for consolidated projects and investments in non-consolidated entities for non-consolidated projects.
  2. Plans and specifications have not been completed and the estimated square footage, project cost and completion date cannot be determined.
PROPERTY DISPOSITIONS  
Primary Tenant Location Property Type Gross Disposition
Price
($000)
 Annualized Net Income(1) ($000) Annualized
NOI(1)
($000)
 Month of Disposition % Leased
Quest Diagnostics Lenexa, KS Office $14,351  $883   $(4)  July 100%
Wal-Mart Moody, AL Industrial 20,046  386   478   July 26%
Vacant(2) Overland Park, KS Office 32,112  (3,269)  (998)  July 0%
      $66,509  $(2,000)  $(524)     

1.     Generally, quarterly period prior to sale, annualized.

2.     Sold in a foreclosure sale. Disposition price reflects non-recourse debt balance.

As of September 30, 2020, total consolidated property disposition volume was $140.6 million at weighted-average GAAP and Cash capitalization rates of  4.3% and 3.8%, respectively.

LEASING
            
  LEASE EXTENSIONS    
            
  Location Primary Tenant/Guarantor(1) Prior
Term
 Lease
Expiration Date
 Sq. Ft.
  Industrial        
           
1 HebronOH Owens Corning 12/2021 03/2022 250,410  
2 HebronOH Owens Corning 12/2021 03/2022 400,522  
3 OrlandoFL Walgreen Co. 03/2021 03/2026 205,016  
3 Total industrial lease extensions       855,948  


  NEW LEASES         
            
  Location Primary Tenant/Guarantor(1)  Lease Expiration Date Sq. Ft.
  Industrial/Multi-tenant        
1 ChillicotheOH Ernie Green Industries   12/2021 42,264  
2 ChillicotheOH Pegasus Industries   06/2026 276,112  
3 HendersonNC Select Tissue   02/2034 147,448  
3 Total industrial/multi-tenant leases       465,824  
            
3 Total New Leases       465,824  
           
6 TOTAL NEW AND EXTENDED LEASES       1,321,772  

(1)   Leases greater than 10,000 square feet.

As of September 30, 2020, Lexington's portfolio was 98.9% leased.

BALANCE SHEET/CAPITAL MARKETS

During the third quarter of 2020, Lexington issued $400.0 million aggregate principal amount of 2.70% Senior Notes due in 2030 at 99.233% of the principal amount. Lexington used a portion of the proceeds to repurchase $61.2 million and $51.1 million aggregate principal amount of outstanding 4.25% Senior Notes due 2023 and 4.40% Senior Notes due 2024, respectively.

During the third quarter of 2020, Lexington issued 0.6 million common shares through its ATM program raising net proceeds of approximately $6.7 million. Also, the Company entered into forward sales transactions for 3.9 million common shares at an initial weighted-average price of $11.23 per common share, which is subject to adjustment in accordance to the forward sales contract. 

During the third quarter, Lexington repaid  $40.0 million on its unsecured revolving credit facility. As of the date of this earnings release, Lexington has $600 million of availability under its unsecured revolving credit facility, subject to covenant compliance.

2020 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2020 will be within an expected range of $0.62 to $0.64 per diluted common share.

Additionally, Lexington affirms its Adjusted Company FFO guidance for the year ended December 31, 2020 to be within a range of $0.74 to $0.76 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

THIRD QUARTER 2020 CONFERENCE CALL

Lexington will host a conference call today, November 5, 2020, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended September 30, 2020. Interested parties may participate in this conference call by dialing1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through February 5, 2021, at 1-877-344-7529 (U.S.), 1-412-317-0088 (International) or 1-855-669-9658 (Canada), pin code for all replay numbers is 10148898. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased industrial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions. For more information, including Lexington's Quarterly Supplemental Information package, or to follow Lexington on social media, visit www.lxp.com.

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

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 potential adverse impact on Lexington or its tenants from the novel coronavirus (COVID-19); (2) the authorization by Lexington's Board of Trustees of future dividend declarations, (3) Lexington's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2020, (4) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any legislation, (7) competition, (8) increases in real estate construction costs, (9) changes in interest rates, (10) changes in accessibility of debt and equity capital markets, and (11) 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, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

Non-GAAP Financial Measures - Definitions

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release 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 measures under generally accepted accounting principles (“GAAP”), 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 cash needs. 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

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.

Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash interest, net, (6) non-cash charges, net, (7) cash paid for tenant improvements, and (8) cash paid for lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), Lexington believes it provides a meaningful indication of its ability to fund cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

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 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.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and 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 yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate (or has generated) divided by the acquisition/completion cost (or sale) price.

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 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.


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)

 Three months ended September 30, Nine months ended September 30,
 2020 2019 2020 2019
Gross revenues:       
Rental revenue$83,592  $80,325  $243,421  $239,058 
Other revenue922  1,225  3,712  3,875 
Total gross revenues84,514  81,550  247,133  242,933 
Expense applicable to revenues:       
Depreciation and amortization(40,555) (37,211) (120,869) (111,617)
Property operating(11,343) (10,611) (31,895) (30,966)
General and administrative(7,232) (7,791) (22,612) (23,652)
Non-operating income40  532  314  1,927 
Interest and amortization expense(13,649) (16,481) (42,610) (50,715)
Debt satisfaction gains (charges), net17,557  (4,424) 18,950  (4,527)
Impairment charges(6,175) (673) (7,792) (2,355)
Gains on sales of properties20,878  140,461  41,876  176,662 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities44,035  145,352  82,495  197,690 
Provision for income taxes(286) (241) (1,361) (1,108)
Equity in earnings (losses) of non-consolidated entities(131) 2,710  35  3,288 
Net income43,618  147,821  81,169  199,870 
Less net income attributable to noncontrolling interests(1,714) (4,502) (2,245) (5,191)
Net income attributable to Lexington Realty Trust shareholders41,904  143,319  78,924  194,679 
Dividends attributable to preferred shares – Series C(1,573) (1,573) (4,718) (4,718)
Allocation to participating securities(46) (186) (118) (304)
Net income attributable to common shareholders$40,285  $141,560  $74,088  $189,657 
        
Net income attributable to common shareholders - per common share basic$0.15  $0.60  $0.28  $0.81 
Weighted-average common shares outstanding – basic274,696,046  236,285,216  264,211,668  233,833,340 
        
Net income attributable to common shareholders - per common share diluted$0.15  $0.59  $0.28  $0.81 
Weighted-average common shares outstanding – diluted276,022,762  241,355,289  265,446,221  234,011,643 


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

 September 30, 2020 December 31, 2019
  (unaudited)  
Assets:   
Real estate, at cost$3,439,314  $3,320,574 
Real estate - intangible assets413,208  409,756 
Investments in real estate under construction41,948  13,313 
Real estate, gross3,894,470  3,743,643 
Less: accumulated depreciation and amortization906,789  887,629 
Real estate, net2,987,681  2,856,014 
Assets held for sale159,210   
Operating lease right-of-use assets, net36,034  38,133 
Cash and cash equivalents287,920  122,666 
Restricted cash1,697  6,644 
Investments in non-consolidated entities56,489  57,168 
Deferred expenses, net16,428  18,404 
Rent receivable – current2,310  3,229 
Rent receivable – deferred66,383  66,294 
Other assets7,699  11,708 
Total assets$3,621,851  $3,180,260 
    
Liabilities and Equity:   
Liabilities:   
Mortgages and notes payable, net$157,723  $390,272 
Term loan payable, net297,817  297,439 
Senior notes payable, net778,943  496,870 
Trust preferred securities, net127,470  127,396 
Dividends payable34,463  32,432 
Liabilities held for sale179,052   
Operating lease liabilities37,338  39,442 
Accounts payable and other liabilities52,819  29,925 
Accrued interest payable9,083  7,897 
Deferred revenue - including below market leases, net18,054  20,350 
Prepaid rent14,740  13,518 
Total liabilities1,707,502  1,455,541 
    
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 issued and outstanding94,016  94,016 
Common shares, par value $0.0001 per share; authorized 400,000,000 shares,   
276,941,239 and 254,770,719 shares issued and outstanding in 2020 and 2019, respectively28  25 
Additional paid-in-capital3,193,751  2,976,670 
Accumulated distributions in excess of net income(1,374,748) (1,363,676)
Accumulated other comprehensive loss(19,687) (1,928)
Total shareholders’ equity1,893,360  1,705,107 
Noncontrolling interests20,989  19,612 
Total equity1,914,349  1,724,719 
Total liabilities and equity$3,621,851  $3,180,260 


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)


   Three Months Ended
September 30,
 Nine Months Ended
September 30,
   2020 2019 2020 2019
EARNINGS PER SHARE:        
         
Basic:        
Net income attributable to common shareholders $40,285  $141,560  $74,088  $189,657 
          
Weighted-average number of common shares outstanding - basic 274,696,046  236,285,216  264,211,668  233,833,340 
         
Net income  attributable to common shareholders - per common share basic $0.15  $0.60  $0.28  $0.81 
          
Diluted:         
Net income attributable to common shareholders - basic $40,285  $141,560  $74,088  $189,657 
Impact of assumed conversions   1,573     
Net income attributable to common shareholders $40,285  $143,133  $74,088  $189,657 
          
Weighted-average common shares outstanding - basic 274,696,046  236,285,216  264,211,668  233,833,340 
Effect of dilutive securities:        
Unvested share-based payment awards and options 1,326,716  359,503  1,234,553  178,303 
Preferred shares - Series C   4,710,570     
Weighted-average common shares outstanding - diluted 276,022,762  241,355,289  265,446,221  234,011,643 
          
Net income attributable to common shareholders - per common share diluted $0.15  $0.59  $0.28  $0.81 


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
           
   Three Months Ended Nine Months Ended
   September 30, September 30,
   2020 2019 2020 2019
FUNDS FROM OPERATIONS:      
Basic and Diluted:        
Net income attributable to common shareholders $40,285  $141,560  $74,088  $189,657 
Adjustments:        
 Depreciation and amortization 39,858  36,537  118,605  109,469 
 Impairment charges - real estate 6,175  673  7,792  2,355 
 Noncontrolling interests - OP units 1,518  4,244  1,702  4,410 
 Amortization of leasing commissions 697  674  2,264  2,148 
 Joint venture and noncontrolling interest adjustment 2,094  2,267  6,463  7,200 
 Gains on sales of properties, including non-consolidated entities (20,886) (143,719) (42,433) (180,837)
FFO available to common shareholders and unitholders - basic 69,741  42,236  168,481  134,402 
 Preferred dividends 1,573  1,573  4,718  4,718 
 Amount allocated to participating securities 46  186  118  304 
FFO available to all equityholders and unitholders - diluted 71,360  43,995  173,317  139,424 
 Transaction costs 1    81   
 Debt satisfaction (gains) charges, net, including non-consolidated entities (17,522) 4,679  (18,894) 4,782 
Adjusted Company FFO available to all equityholders and unitholders - diluted 53,839  48,674  154,504  144,206 
         
FUNDS AVAILABLE FOR DISTRIBUTION:        
Adjustments:        
 Straight-line adjustments (3,995) (4,161) (10,224) (10,846)
 Lease incentives 214  318  732  898 
 Amortization of above/below market leases (435) (142) (1,110) (174)
 Lease termination payments, net (211) (120) 70  (1,120)
 Non-cash interest, net 293  567  1,081  2,146 
 Non-cash charges, net 1,663  1,554  4,984  4,833 
 Tenant improvements (2,332) (1,380) (9,453) (4,932)
 Lease costs (550) (5,951) (4,969) (10,624)
 Joint venture and noncontrolling interest adjustment (146) (3,095) (330) (3,731)
Company Funds Available for Distribution $48,340  $36,264  $135,285  $120,656 
          
Per Common Share and Unit Amounts        
Basic:        
 FFO $0.25  $0.18  $0.63  $0.57 
           
Diluted:        
 FFO $0.25  $0.18  $0.63  $0.58 
 Adjusted Company FFO $0.19  $0.20  $0.57  $0.60 
           
Basic:        
 Weighted-average common shares outstanding - basic EPS 274,696,046  236,285,216  264,211,668  233,833,340 
 Operating partnership units(1) 3,060,436  3,520,643  3,100,309  3,535,207 
 Weighted-average common shares outstanding - basic FFO 277,756,482  239,805,859  267,311,977  237,368,547 
           
Diluted:        
 Weighted-average common shares outstanding - diluted EPS 276,022,762  241,355,289  265,446,221  234,011,643 
 Operating partnership units(1) 3,060,436  3,520,643  3,100,309  3,535,207 
 Unvested share-based payment awards 19,261  25,090  19,813  20,169 
 Preferred shares - Series C 4,710,570    4,710,570  4,710,570 
 Weighted-average common shares outstanding - diluted FFO 283,813,029  244,901,022  273,276,913  242,277,589 

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

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
    
2020 EARNINGS GUIDANCE   
 Twelve Months Ended
December 31, 2020
 Range
Estimated:   
Net income attributable to common shareholders per diluted common share(1)$0.62  $0.64 
Depreciation and amortization0.62  0.62 
Impact of capital transactions(0.50) (0.50)
Estimated Adjusted Company FFO per diluted common share$0.74  $0.76 

(1)   Assumes all convertible securities are dilutive.


Source: Lexington Realty Trust