After earnings LXP will be back above $5. With all the bad news (loss from investments) behind us, the way should be cleared for the recovery of stock price.
Went back to the supplementals and was able to calculate that since 1Q-08, lxp bought back $411m in exchangable notes and senior securities at a discount of $94m. Makes up for a good chunk of the $162.5m lost on lex-win.
When I first read that, like you, I thought that just meant they were effectively walking away from Concord. But, as you suggest, perhaps they have some exposure to their partners for failing to pony up the funds. Good question for the cc.
On page 31 of 2Q-09, it indicates that lxp's share of debt maturing thru 2010 is $102m for concord and that "none of this debt is recourse and they have decided not to provide any equity capital to concord to retire this debt."
Inland was required to put up $100m but they only put in $76m and it refuses to put up the remaining $24m so there is a lawsuit about that.
It sounds like lxp is off the hook but who knows if the partners will sue each other??
I continue to say it. Something has to happen like a management shakeup. They are clearly out of touch. They continue to award large amounts of shares to the board members and incentive bonuses to board members. The only way it stops is either a management shakeup happens or someone acquires enough stock and forces change.
It is hard to say what is driving us lower. You could say it was the Capmark BK, but it hasn't adversely affected other REITs. If there is something company specific coming out, I hope the SEC looks to see how it leaked out in advance as we continue to be in freefall.
It is indeed discouraging because the fundamentals don't seem to support what's happening to us.