Lexington Realty Trust Reports Fourth Quarter 2020 Results

Rhea-AI Summary

Lexington Realty Trust (LXP) reported strong fourth-quarter results for 2020, with net income of $102.7 million ($0.37/share) and Adjusted Company FFO of $55.0 million ($0.19/share). The company collected 99.8% of cash base rents, disposed of eight properties for $292.3 million, and acquired four for $182 million. The industrial portfolio rose to 90.8% of total assets. In 2020, net income was $176.8 million ($0.66/share), with rental renewals increasing by 17.5%. The company has healthy leverage at 4.8x and expects 2021 diluted income of $0.58-$0.62/share.

Positive

• Collected 99.8% of cash base rents in Q4 2020.
• Increased industrial portfolio to 90.8% of total assets.
• Net income attributable to common shareholders rose to $102.7 million in Q4.
• Raised $225 million from equity offerings.
• Completed significant acquisition and disposition activities, totaling $611.8 million and $432.8 million respectively.

Negative

• Adjusted Company FFO decreased slightly to $55.0 million in Q4 from $52.4 million in Q4 2019.
• Invested only $33.8 million in development projects in Q4 2020.

NEW YORK, Feb. 18, 2021 (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 fourth quarter and year ended December 31, 2020.

Fourth Quarter 2020 Highlights

• Generated Net Income attributable to common shareholders of $102.7 million, or $0.37 per diluted common share.
• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $55.0 million, or $0.19 per diluted common share.
• Collected 99.8% of Cash Base Rents due during the fourth quarter.
• Disposed of eight properties for an aggregate gross disposition price of $292.3 million.
• Acquired four warehouse/distribution properties for an aggregate cost of $182.0 million.
• Invested an aggregate of $33.8 million in development projects.
• Increased industrial portfolio to 90.8% of gross real estate assets, excluding held for sale assets.
• Completed 1.7 million square feet of lease extensions.
• Fully leased the 320,190 square foot warehouse/distribution speculative development project located in Rickenbacker, Ohio.
• Declared a quarterly common share/unit dividend/distribution of $0.1075 per share/unit, an increase of 2.4%.
• Satisfied $197.1 million of secured debt with a weighted-average interest rate of 4.3%.

Full Year 2020 Highlights

• Generated Net Income attributable to common shareholders of $176.8 million, or $0.66 per diluted common share.
• Generated Adjusted Company FFO of $209.5 million, or $0.76 per diluted common share.
• Collected 99.8% of Cash Base Rents.
• Disposed of 16 properties for an aggregate gross disposition price of $432.8 million.
• Acquired 16 warehouse/distribution properties for an aggregate cost of $611.8 million.
• Invested an aggregate of $60.2 million in development projects.
• Completed 5.2 million square feet of new leases and lease extensions, raising industrial renewal Cash Base Rents by 17.5%.
• Raised net proceeds of approximately $225.0 million through an underwritten equity offering and the ATM program.
• Repurchased 1.3 million common shares at an average price of $8.28 per share.
• 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.
• Satisfied $236.0 million of secured debt with a weighted-average interest rate of 4.5%.
• 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.

Subsequent Events

• Acquired three warehouse/distribution properties for an aggregate gross cost of approximately $50.8 million.
• Disposed of two office properties for an aggregate gross disposition price of $20.2 million.

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, Chief Executive Officer and President of Lexington, commented “Our fourth quarter results were strong, and we are pleased with 2020 execution in all areas of our business. We remained active on both the acquisition and disposition front during the quarter and our industrial exposure reached 91% of our overall gross real estate assets at year-end. In 2020, we added 6.6 million square feet of high-quality warehouse/distribution product to our industrial portfolio and made progress adding to our development pipeline. Consistent rental collections of over 99% were achieved throughout the year, and industrial renewal rents grew over 3% in the fourth quarter and 17.5% overall in 2020. We are well-positioned heading into 2021 with leverage low at 4.8x Net Debt to Adjusted EBITDA, ample cash on the balance sheet, and a healthy investment pipeline.”

FINANCIAL RESULTS

Revenues

For the quarter ended December 31, 2020, total gross revenues were $83.3 million, compared with total gross revenues of $83.0 million for the quarter ended December 31, 2019. The increase was primarily attributable to an increase in rental revenue due to property acquisitions, partially offset by a decrease in rental revenue due to property sales.

Net Income Attributable to Common Shareholders

For the quarter ended December 31, 2020, net income attributable to common shareholders was $102.7 million, or $0.37 per diluted share, compared with net income attributable to common shareholders for the quarter ended December 31, 2019 of $83.6 million, or $0.33 per diluted share.

Adjusted Company FFO

For the quarter ended December 31, 2020, Lexington generated Adjusted Company FFO of $55.0 million, or $0.19 per diluted share, compared to Adjusted Company FFO for the quarter ended December 31, 2019 of $52.4 million, or $0.20 per diluted share.

Dividends/Distributions

As previously announced, during the fourth quarter of 2020, Lexington declared its quarterly common share/unit dividend/distribution for the quarter ended December 31, 2020 of $0.1075 per common share/unit which was paid on January 15, 2021 to common shareholders/unitholders of record as of December 31, 2020. Lexington previously declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended December 31, 2020, which was paid February 16, 2021 to Series C Preferred shareholders of record as of January 31, 2021.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS
Property Type		Market		Sq. Ft.			Initial Basis  ($000)				Approximate  Lease Term  (Yrs)
Industrial - warehouse/distribution		Phoenix, AZ		201,784			$	87,820			12
Industrial - warehouse/distribution		Dallas, TX		500,556			44,030				4
Industrial - warehouse/distribution		Greenville/Spartanburg, SC		213,200			18,595				10
Industrial - warehouse/distribution		Dallas, TX		468,300			31,556				9
				1,383,840			$	182,001

Including fourth quarter acquisition activity, consolidated 2020 acquisition activity totaled $611.8 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.4% and 5.0%, respectively.

DEVELOPMENT PROJECTS
Project (% owned)		Market		Estimated  Sq. Ft.		Estimated  Project  Cost  ($000)				GAAP  Investment  Balance  as of  12/31/2020  ($000)(1)				Lexington  Amount  Funded  as of  12/31/2020  ($000)				Estimated  Completion  Date	Approximate Lease Term (Yrs)	% Leased as of 12/31/2020
Consolidated:
KeHE Distributors BTS (100%)		Phoenix, AZ		468,182		$	72,000			$	19,609			$	17,766			3Q 21	15	100%
Fairburn (90%)(2)		Atlanta, GA		910,000		53,812				39,824				33,195				1Q 21	TBD	0%
Rickenbacker (100%)		Columbus, OH		320,190		20,300				16,473				12,225				2Q 21	3	100%
						$	146,112			$	75,906			$	63,186
Non-consolidated:
ETNA Park 70 (90%)(3)		Columbus, OH		TBD		TBD				$	12,514			$	12,909			TBD	TBD	0%
ETNA Park 70 East (90%)(3)		Columbus, OH		TBD		TBD				7,484				7,614				TBD	TBD	0%
										$	19,998			$	20,523

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 for completion have not been completed and the square footage, project cost and completion date cannot be estimated.

PROPERTY DISPOSITIONS
Primary Tenant		Location		Property  Type		Gross Disposition Price  ($000)				Annualized  Net Income (Loss)(1) ($000)				Annualized NOI(1) ($000)				Month of Disposition		%  Leased
Vacant		Thomson, GA		Industrial		$	6,971			$	—			$	(278	)		October		0%
Vacant (2)		Boca Raton, FL		Office		18,413				(3,160		)		(749		)		October		0%
CardWorks		Orlando, FL		Office		14,250				763				1,019				October		100%
Dow		Lake Jackson, TX		Office		191,992				3,544				12,858				November		100%
TI Automotive		Lavonia, GA		Industrial		13,000				789				870				November		100%
Versum		Tempe, AZ		Office		22,000				593				1,347				December		100%
Kohl's (3)		Pataskala, OH		Industrial		10,645				956				444				December		100%
MAHLE Industries		Olive Branch, MS		Industrial		15,000				650				914				December		100%
						$	292,271			$	4,135			$	16,425

1. Generally, quarterly period prior to sale annualized, excluding impairment charges.
2. Sold in a foreclosure sale. Disposition price reflects non-recourse debt balance.
3. Property acquired from ETNA Park 70 in 2018 for a cost basis of $3.6 million and ground leased to user. Tenant exercised purchase option in accordance with the lease.

Including fourth quarter disposition activity, consolidated 2020 property disposition volume totaled $432.8 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.8% and 5.0%, respectively.

LEASING

During the fourth quarter of 2020, Lexington executed the following extensions:

		LEASE EXTENSIONS
		Location			Primary Tenant(1)		Prior Term		Lease Expiration Date		Sq. Ft.
		Industrial
1		Laurens	SC		Michelin		05/2021		11/2021		1,164,000
2		Dry Ridge	KY		Dana		06/2025		06/2031		336,350
2		Total industrial lease extensions									1,500,350
		Office / Multi-tenant Office
1		Phoenix	AZ		ATOS IT Solutions		03/2021		03/2026		28,576
2		Herndon	VA		United States of America		05/2022		05/2027		159,644
2		Total office lease extensions									188,220
4		TOTAL EXTENDED LEASES									1,688,570

1. Leases greater than 10,000 square feet.

As of December 31, 2020, Lexington's portfolio was 98.3% leased.

BALANCE SHEET/CAPITAL MARKETS

In the fourth quarter of 2020, Lexington satisfied an aggregate of $197.1 million of non-recourse debt with a weighted-average interest rate of 4.3%.

In the fourth quarter of 2020, Lexington entered into forward sales contracts for 1.1 million common shares under its At-the-Market offering program. As of December 31, 2020, the Company had forward sales contracts for 5.0 million common shares with a then settlement price of $55.1 million.

Lexington ended 2020 at 4.8x Net Debt to Adjusted EBITDA. Lexington's $600.0 million unsecured revolving credit facility remains fully available.

2021 EARNINGS GUIDANCE

Lexington estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2021 will be within a range of $0.58 to $0.62. Lexington estimates that its Adjusted Company FFO for the year ended December 31, 2021 will be within an expected range of $0.72 to $0.76 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FOURTH QUARTER 2020 CONFERENCE CALL

Lexington will host a conference call today February 18, 2021, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2020. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through May 18, 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 10151943. 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) focused on single-tenant industrial real estate investments across the United States. Lexington seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. 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 authorization by Lexington's Board of Trustees of future dividend declarations, (2) Lexington's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2021, (3) the successful consummation of any lease, acquisition, build-to-suit, development project, disposition, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

References to Lexington refer to Lexington Realty Trust and its consolidated subsidiaries. All interests in properties and loans are held, 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.

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

	Three months ended December 31,										Twelve months ended December 31,
	2020					2019					2020					2019
Gross revenues:
Rental revenue	$	82,390				$	81,564				$	325,811				$	320,622
Other revenue	925					1,472					4,637					5,347
Total gross revenues	83,315					83,036					330,448					325,969
Expense applicable to revenues:
Depreciation and amortization	(40,723		)			(35,977		)			(161,592		)			(147,594		)
Property operating	(10,019		)			(11,052		)			(41,914		)			(42,018		)
General and administrative	(7,759		)			(7,133		)			(30,371		)			(30,785		)
Non-operating income	429					335					743					2,262
Interest and amortization expense	(12,591		)			(14,380		)			(55,201		)			(65,095		)
Debt satisfaction gains (charges), net	2,502					10					21,452					(4,517		)
Impairment charges	(6,668		)			(2,974		)			(14,460		)			(5,329		)
Gains on sales of properties	97,163					74,227					139,039					250,889
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities	105,649					86,092					188,144					283,782
Provision for income taxes	(223		)			(271		)			(1,584		)			(1,379		)
Equity in earnings (losses) of non-consolidated entities	(204		)			(398		)			(169		)			2,890
Net income	105,222					85,423					186,391					285,293
Less net income attributable to noncontrolling interests	(844		)			(192		)			(3,089		)			(5,383		)
Net income attributable to Lexington Realty Trust shareholders	104,378					85,231					183,302					279,910
Dividends attributable to preferred shares – Series C	(1,572		)			(1,572		)			(6,290		)			(6,290		)
Allocation to participating securities	(94		)			(85		)			(224		)			(395		)
Net income attributable to common shareholders	$	102,712				$	83,574				$	176,788				$	273,225
Net income attributable to common shareholders – per common share basic	$	0.37				$	0.34				$	0.66				$	1.15
Weighted-average common shares outstanding – basic	274,965,603					248,943,975					266,914,843					237,642,048
Net income attributable to common shareholders – per common share diluted	$	0.37				$	0.33				$	0.66				$	1.15
Weighted-average common shares outstanding – diluted	284,076,532					252,939,590					268,182,552					237,934,515

LEXINGTON REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31,
(In thousands, except share and per share data)

	2020					2019
Assets:	(unaudited)
Real estate, at cost	$	3,514,564				$	3,320,574
Real estate - intangible assets	409,293					409,756
Investments in real estate under construction	75,906					13,313
Real estate, gross	3,999,763					3,743,643
Less: accumulated depreciation and amortization	884,465					887,629
Real estate, net	3,115,298					2,856,014
Assets held for sale	16,530					—
Right-of-use assets, net	31,423					38,133
Cash and cash equivalents	178,795					122,666
Restricted cash	626					6,644
Investments in non-consolidated entities	56,464					57,168
Deferred expenses, net	15,901					18,404
Rent receivable - current	2,899					3,229
Rent receivable - deferred	66,959					66,294
Other assets	8,331					11,708
Total assets	$	3,493,226				$	3,180,260
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	136,529				$	390,272
Term loan payable, net	297,943					297,439
Senior notes payable, net	779,275					496,870
Trust preferred securities, net	127,495					127,396
Dividends payable	35,401					32,432
Liabilities held for sale	790					—
Operating lease liabilities	32,515					39,442
Accounts payable and other liabilities	55,208					29,925
Accrued interest payable	6,334					7,897
Deferred revenue - including below market leases, net	17,264					20,350
Prepaid rent	13,335					13,518
Total liabilities	1,502,089					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 and 1,935,400 shares issued and outstanding	94,016					94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 277,152,450 and 254,770,719 shares issued and outstanding in 2020 and 2019, respectively	28					25
Additional paid-in-capital	3,196,315					2,976,670
Accumulated distributions in excess of net income	(1,301,726		)			(1,363,676		)
Accumulated other comprehensive loss	(17,963		)			(1,928		)
Total shareholders’ equity	1,970,670					1,705,107
Noncontrolling interests	20,467					19,612
Total equity	1,991,137					1,724,719
Total liabilities and equity	$	3,493,226				$	3,180,260

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

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2020				2019					2020				2019
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders	$	102,712			$	83,574				$	176,788			$	273,225
Weighted-average common shares outstanding - basic	274,965,603				248,943,975					266,914,843				237,642,048
Net income attributable to common shareholders - per common share basic	$	0.37			$	0.34				$	0.66			$	1.15
Diluted:
Net income attributable to common shareholders - basic	$	102,712			$	83,574				$	176,788			$	273,225
Impact of assumed conversions	2,218				(34		)			—				—
Net income attributable to common shareholders	$	104,930			$	83,540				$	176,788			$	273,225
Weighted-average common shares outstanding - basic	274,965,603				248,943,975					266,914,843				237,642,048
Effect of dilutive securities:
Unvested share-based payment awards and options	1,367,634				639,178					1,267,709				292,467
Operating Partnership Units	3,032,725				3,356,437					—				—
Preferred shares - Series C	4,710,570				—					—				—
Weighted-average common shares outstanding - diluted	284,076,532				252,939,590					268,182,552				237,934,515
Net income attributable to common shareholders - per common share diluted	$	0.37			$	0.33				$	0.66			$	1.15

LEXINGTON REALTY TRUST AND SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
		Three Months Ended December 31,										Twelve Months Ended December 31,
		2020					2019					2020					2019
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders		$	102,712				$	83,574				$	176,788				$	273,225
Adjustments:
	Depreciation and amortization	40,050					35,323					158,655					144,792
	Impairment charges - real estate	6,668					2,974					14,460					5,329
	Noncontrolling interests - OP units	645					(34		)			2,347					4,376
	Amortization of leasing commissions	673					654					2,937					2,802
	Joint venture and noncontrolling interest adjustment	2,115					2,249					8,578					9,449
	Gains on sales of properties, including non-consolidated entities and net of tax	(97,163		)			(74,211		)			(139,596		)			(255,048		)
FFO available to common shareholders and unitholders - basic		55,700					50,529					224,169					184,925
	Preferred dividends	1,572					1,572					6,290					6,290
	Amount allocated to participating securities	94					85					224					395
FFO available to all equityholders and unitholders - diluted		57,366					52,186					230,683					191,610
	Debt satisfaction (gains) charges, net, including non-consolidated entities	(2,502		)			(9		)			(21,396		)			4,773
	Transaction costs	174					202					255					202
Adjusted Company FFO available to all equityholders and unitholders - diluted		55,038					52,379					209,542					196,585
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
	Straight-line adjustments	(3,430		)			(3,656		)			(13,654		)			(14,502		)
	Lease incentives	189					293					921					1,191
	Amortization of above/below market leases	(470		)			(269		)			(1,580		)			(443		)
	Lease termination payments, net	(70		)			25					—					(1,095		)
	Non-cash interest, net	195					563					1,276					2,709
	Non-cash charges, net	1,690					1,577					6,674					6,410
	Tenant improvements	(291		)			(2,885		)			(9,744		)			(7,817		)
	Lease costs	(50		)			(3,743		)			(5,019		)			(14,367		)
	Joint venture and non-controlling interest adjustment	11					(63		)			(319		)			(3,794		)
Company Funds Available for Distribution		$	52,812				$	44,221				$	188,097				$	164,877
Per Common Share and Unit Amounts
Basic:
	FFO	$	0.20				$	0.20				$	0.83				$	0.77
Diluted:
	FFO	$	0.20				$	0.20				$	0.84				$	0.78
	Adjusted Company FFO	$	0.19				$	0.20				$	0.76				$	0.80
Weighted-Average Common Shares
Basic:
	Weighted-average common shares outstanding - basic EPS	274,965,603					248,943,975					266,914,843					237,642,048
	Operating partnership units(1)	3,032,725					3,356,437					3,083,320					3,490,147
	Weighted-average common shares outstanding - basic FFO	277,998,328					252,300,412					269,998,163					241,132,195
Diluted:
	Weighted-average common shares outstanding - diluted EPS	284,076,532					252,939,590					268,182,552					237,934,515
	Unvested share-based payment awards	9,384					36,516					17,180					22,813
	Operating partnership units(1)	—					—					3,083,320					3,490,147
	Preferred shares - Series C	—					4,710,570					4,710,570					4,710,570
	Weighted-average common shares outstanding - diluted FFO	284,085,916					257,686,676					275,993,622					246,158,045

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

LEXINGTON REALTY TRUST AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
2021 EARNINGS GUIDANCE
	Twelve Months Ended December 31, 2021
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.58				$	0.62
Depreciation and amortization	0.60					0.60
Impact of capital transactions	(0.46		)			(0.46		)
Estimated Adjusted Company FFO per diluted common share	$	0.72				$	0.76

(1)        Assumes all convertible securities are dilutive.

 

FAQ

What were Lexington Realty Trust's fourth quarter earnings for 2020?

Lexington reported a net income of $102.7 million or $0.37 per diluted share for Q4 2020.

What is Lexington Realty Trust's stock symbol?

The stock symbol for Lexington Realty Trust is LXP.

How much of the cash base rents did Lexington Realty Trust collect in Q4 2020?

Lexington collected 99.8% of cash base rents due during Q4 2020.

What are the earnings estimates for Lexington Realty Trust in 2021?

Lexington estimates net income per diluted share will be between $0.58 and $0.62 for the year ending December 31, 2021.

What was the total gross revenue for Lexington Realty Trust in Q4 2020?

Total gross revenue for Q4 2020 was $83.3 million.