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Lexington Realty Trust Reports Second Quarter 2021 Results

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NEW YORK, Aug. 05, 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 second quarter ended June 30, 2021.

Second Quarter 2021 Highlights

  • Recorded Net Income attributable to common shareholders of $71.0 million, or $0.26 per diluted common share.

  • Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $52.2 million, or $0.18 per diluted common share.

  • Completed 1.1 million square feet of new leases and lease extensions, raising industrial renewal Cash Base Rents by 6.9%.

  • Acquired seven industrial properties for an aggregate cost of $205.5 million.

  • Commenced development of a 1.1 million square foot warehouse/distribution property in the Indianapolis, Indiana market.

  • Invested an aggregate of $23.7 million in six on-going development projects.

  • Disposed of three properties for an aggregate gross disposition price of $125.3 million.

  • Increased industrial portfolio to 93.9% of gross book value of real estate assets, excluding held for sale assets.

Subsequent Events

  • Acquired four industrial properties for an aggregate cost of $105.6 million.

  • Commenced development of three warehouse/distribution properties containing an aggregate of 1.9 million square feet in the Greenville/Spartanburg, South Carolina market.

  • Completed 2.1 million square feet of new industrial leases and lease extensions.

  • Redeemed 1,598,906 operating partnership units in connection with the disposition of three non-industrial properties.

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, “We posted strong second quarter results, closing on $205 million of high-quality warehouse/distribution properties, increasing industrial Base and Cash Base rents 13% and 7%, respectively, and achieving 1.7% same store NOI growth in our industrial portfolio. At quarter end, our balance sheet was well-positioned to support further development activity, with leverage at 4.9x net debt to Adjusted EBITDA and $285.2 million available under our forward equity sales. Our leasing results have been especially strong, and as a result, we announced an increase to both the low and high-ends of our 2021 Adjusted Company FFO guidance range by a penny. With industrial exposure now at 94% of our gross real estate assets, we have nearly completed our portfolio transition to a 100% industrial REIT.”

FINANCIAL RESULTS

Revenues

For the quarter ended June 30, 2021, total gross revenues were $81.5 million, compared with total gross revenues of $81.8 million for the quarter ended June 30, 2020. The slight decrease is primarily attributable to property sales, partially offset by acquisitions.

Net Income Attributable to Common Shareholders

For the quarter ended June 30, 2021, net income attributable to common shareholders was $71.0 million, or $0.26 per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2020 of $17.3 million, or $0.06 per diluted share.

Adjusted Company FFO

For the quarter ended June 30, 2021, Lexington generated Adjusted Company FFO of $52.2 million, or $0.18 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2020 of $51.4 million, or $0.19 per diluted share.

Dividends/Distributions

As previously announced, during the second quarter of 2021, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended June 30, 2021 of $0.1075 per common share/unit, which was paid on July 15, 2021 to common shareholders/unitholders of record as of June 30, 2021. 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 June 30, 2021, which is expected to be paid on August 16, 2021 to Series C Preferred Shareholders of record as of July 30, 2021.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS

Property Type

Market

Sq. Ft.

Initial Basis
($000)

Approximate
Lease Term
(Yrs)

% Leased

Industrial-Warehouse/distribution

Houston, TX

233,190

$

28,292

7

100%

Industrial-Warehouse/distribution

Houston, TX

402,648

37,686

6

100%

Industrial-Warehouse/distribution

Houston, TX

102,863

11,512

3

100%

Industrial-Warehouse/distribution

Cincinnati/Dayton, OH

194,936

18,674

2

100%

Industrial-Warehouse/distribution

Central Florida

510,484

48,593

N/A

—%

Industrial-Warehouse/distribution

Greenville/Spartanburg, SC

396,073

36,903

4

100%

Industrial-Warehouse/distribution

Greenville/Spartanburg, SC

210,820

23,812

7

62%

2,051,014

$

205,472

The above properties were acquired at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 4.8% and 4.7%, respectively. Year to date total 2021 acquisition activity, including development projects placed into service, was $274.8 million at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 5.1% and 5.0%, respectively.

DEVELOPMENT PROJECTS

Project (% owned)

Market

Estimated
Sq. Ft.

Estimated Project Cost
($000)

GAAP Investment Balance as of 6/30/2021 ($000)(1)

Lexington Amount Funded as of 6/30/2021 ($000)

Estimated Building Completion Date

Approximate Lease Term

% Leased

Consolidated:

Fairburn (87%)(2)(3)

Atlanta, GA

910,000

$

53,812

$

47,501

$

43,051

2Q 2021

TBD

—%

KeHE Distributors, BTS (100%)

Phoenix, AZ

468,182

72,000

45,151

38,383

3Q 2021

15

100%

Ocala (80%)(2)

Central Florida

1,085,280

80,900

15,014

10,729

1Q 2022

TBD

—%

Mt. Comfort (80%)(2)

Indianapolis, IN

1,053,360

60,300

8,541

5,739

2Q 2022

TBD

—%

$

267,012

$

116,207

$

97,902

Non-consolidated:

ETNA Park 70 (90%)(4)

Columbus, OH

TBD

TBD

$

12,820

$

13,261

TBD

TBD

0%

ETNA Park 70 East (90%)(4)

Columbus, OH

TBD

TBD

7,844

8,019

TBD

TBD

0%

$

20,664

$

21,280

  1. GAAP investment balance is in real estate under construction for consolidated projects and investments in non-consolidated entities for non-consolidated projects.

  2. Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote.

  3. Base building substantially completed during the second quarter of 2021. Property not in service.

  4. 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

Michelin

Laurens, SC

Industrial

$

40,100

$

3,236

$

3,589

May

100 %

United States of America

Herndon, VA

Office

44,936

1,831

2,833

May

100 %

NJ Natural Gas

Wall, NJ

Office

40,299

2,116

4,233

May

100 %

$

125,335

$

7,183

$

10,655

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

As of June 30, 2021, total consolidated 2021 property disposition volume was $183.4 million and resulted in aggregate weighted-average GAAP and Cash capitalization rates of 7.3% and 7.9%, respectively.

LEASING

LEASE EXTENSIONS

Location

Primary Tenant/Guarantor(1)

Prior
Term

Lease
Expiration Date

Sq. Ft.

Industrial

1

Lumberton

NC

Rubbermaid

11/2021

11/2026

423,280

2

Carrollton

TX

Teasdale Foods

12/2033

06/2035

298,653

3

Crossville

TN

Dana

09/2026

09/2033

222,200

4

Duncan

SC

Undisclosed

04/2025

10/2026

177,320

4

Total industrial lease extensions

1,121,453

Office

1

Arlington

TX

N/A

11/2021

11/2023

4,979

2

Philadelphia

PA

N/A

03/2021

03/2022

1,220

2

Total office lease extensions

6,199

6

Total lease extensions

1,127,652


NEW LEASES

Location

Primary Tenant/Guarantor(1)

Lease Expiration Date

Sq. Ft.

Industrial/Multi-tenant

1

Antioch

TN

Southerland

06/2031

17,772

1

Total new leases

17,772

7

TOTAL NEW AND EXTENDED LEASES

1,145,424

  1. Leases greater than 10,000 square feet.

As of June 30, 2021, Lexington's Stabilized Portfolio was 97.8% leased.

BALANCE SHEET/CAPITAL MARKETS

During the second quarter of 2021, Lexington entered into forward sales contracts through an underwritten offering for an aggregate of 16.0 million common shares that have not yet been settled for an initial settlement amount of $193.7 million. As of June 30, 2021, Lexington had an aggregate of $285.2 million under unsettled forward common share sales contracts, including outstanding contracts under its ATM program, which are subject to adjustment in accordance with the forward sales contracts.

As of June 30, 2021, Lexington had $125.0 million outstanding under its unsecured revolving credit facility and ended the quarter with net debt to Adjusted EBITDA at 4.9x. As of the date of this earnings release, Lexington has an outstanding balance of $215.0 million and availability of $385.0 million under its unsecured revolving credit facility, subject to covenant compliance.

2021 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2021 will be within an expected range of $0.65 to $0.68 per diluted common share.

Additionally, Lexington is increasing the low and high end of its Adjusted Company FFO guidance range for the year ended December 31, 2021 by a penny, to a revised range of $0.74 to $0.77 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

SECOND QUARTER 2021 CONFERENCE CALL
Lexington will host a conference call today, August 5, 2021, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended June 30, 2021. 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 November 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 10158787. 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 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, 2021, (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.

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.

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 second generation tenant improvements, and (8) cash paid for second generation 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.

First Generation Costs: Represents cash spend for tenant improvements, leasing costs and base building work for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, Lexington's presentation may not be comparable to similarly titled measures of other companies.

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). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy including partner promotes, if any.

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.

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation.

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.

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

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Gross revenues:

Rental revenue

$

80,572

$

81,094

$

172,217

$

159,829

Other revenue

969

698

1,881

2,790

Total gross revenues

81,541

81,792

174,098

162,619

Expense applicable to revenues:

Depreciation and amortization

(43,044

)

(39,805

)

(85,220

)

(80,314

)

Property operating

(11,626

)

(10,276

)

(22,560

)

(20,552

)

General and administrative

(7,912

)

(7,555

)

(16,332

)

(15,380

)

Non-operating income

4

84

481

274

Interest and amortization expense

(11,474

)

(14,166

)

(22,960

)

(28,961

)

Debt satisfaction gains, net

1,393

Impairment charges

(1,617

)

(1,617

)

Gains on sales of properties

66,726

11,193

88,645

20,998

Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities

74,215

19,650

116,152

38,460

Provision for income taxes

(344

)

(422

)

(716

)

(1,075

)

Equity in earnings (losses) of non-consolidated entities

(84

)

(97

)

(174

)

166

Net income

73,787

19,131

115,262

37,551

Less net income attributable to noncontrolling interests

(1,109

)

(265

)

(1,542

)

(531

)

Net income attributable to Lexington Realty Trust shareholders

72,678

18,866

113,720

37,020

Dividends attributable to preferred shares – Series C

(1,573

)

(1,573

)

(3,145

)

(3,145

)

Allocation to participating securities

(105

)

(39

)

(178

)

(85

)

Net income attributable to common shareholders

$

71,000

$

17,254

$

110,397

$

33,790

Net income attributable to common shareholders - per common share basic

$

0.26

$

0.07

$

0.40

$

0.13

Weighted-average common shares outstanding – basic

275,568,868

264,785,583

275,493,019

258,911,872

Net income attributable to common shareholders - per common share diluted

$

0.26

$

0.06

$

0.40

$

0.13

Weighted-average common shares outstanding – diluted

277,466,056

269,088,631

276,834,089

263,217,352

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

June 30, 2021

December 31, 2020

Assets:

Real estate, at cost

$

3,630,488

$

3,514,564

Real estate - intangible assets

404,875

409,293

Investments in real estate under construction

116,207

75,906

Real estate, gross

4,151,570

3,999,763

Less: accumulated depreciation and amortization

886,900

884,465

Real estate, net

3,264,670

3,115,298

Assets held for sale

20,271

16,530

Right-of-use assets, net

30,007

31,423

Cash and cash equivalents

196,383

178,795

Restricted cash

729

626

Investments in non-consolidated entities

54,057

56,464

Deferred expenses, net

12,189

15,901

Rent receivable – current

2,160

2,899

Rent receivable – deferred

67,200

66,959

Other assets

13,587

8,331

Total assets

$

3,661,253

$

3,493,226

Liabilities and Equity:

Liabilities:

Mortgages and notes payable, net

$

129,012

$

136,529

Revolving credit facility borrowings

125,000

Term loan payable, net

298,195

297,943

Senior notes payable, net

779,939

779,275

Trust preferred securities, net

127,545

127,495

Dividends payable

33,465

35,401

Liabilities held for sale

1,271

790

Operating lease liabilities

30,946

32,515

Accounts payable and other liabilities

51,363

55,208

Accrued interest payable

5,713

6,334

Deferred revenue - including below market leases, net

16,023

17,264

Prepaid rent

11,412

13,335

Total liabilities

1,609,884

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 issued and outstanding

94,016

94,016

Common shares, par value $0.0001 per share; authorized 400,000,000 shares,

277,660,102 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively

28

28

Additional paid-in-capital

3,195,040

3,196,315

Accumulated distributions in excess of net income

(1,250,735

)

(1,301,726

)

Accumulated other comprehensive loss

(12,041

)

(17,963

)

Total shareholders’ equity

2,026,308

1,970,670

Noncontrolling interests

25,061

20,467

Total equity

2,051,369

1,991,137

Total liabilities and equity

$

3,661,253

$

3,493,226

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

Three Months Ended
June 30,

Six Months Ended
June 30,

2021

2020

2021

2020

EARNINGS PER SHARE:

Basic:

Net income attributable to common shareholders

$

71,000

$

17,254

$

110,397

$

33,790

Weighted-average number of common shares outstanding - basic

275,568,868

264,785,583

275,493,019

258,911,872

Net income attributable to common shareholders - per common share basic

$

0.26

$

0.07

$

0.40

$

0.13

Diluted:

Net income attributable to common shareholders - basic

$

71,000

$

17,254

$

110,397

$

33,790

Impact of assumed conversions

77

184

Net income attributable to common shareholders

$

71,000

$

17,331

$

110,397

$

33,974

Weighted-average common shares outstanding - basic

275,568,868

264,785,583

275,493,019

258,911,872

Effect of dilutive securities:

Shares issuable under forward sales agreements

1,098,031

553,937

Unvested share-based payment awards and options

799,157

1,210,241

787,133

1,185,016

Operating partnership units

3,092,807

3,120,464

Weighted-average common shares outstanding - diluted

277,466,056

269,088,631

276,834,089

263,217,352

Net income attributable to common shareholders - per common share diluted

$

0.26

$

0.06

$

0.40

$

0.13

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

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

FUNDS FROM OPERATIONS:

Basic and Diluted:

Net income attributable to common shareholders

$

71,000

$

17,254

$

110,397

$

33,790

Adjustments:

Depreciation and amortization

42,312

39,030

83,790

78,747

Impairment charges - real estate

1,617

1,617

Noncontrolling interests - OP units

912

77

1,151

184

Amortization of leasing commissions

732

775

1,430

1,567

Joint venture and noncontrolling interest adjustment

2,114

2,155

4,229

4,369

Gains on sales of properties, including non-consolidated entities

(66,726

)

(11,193

)

(88,645

)

(21,547

)

FFO available to common shareholders and unitholders - basic

50,344

49,715

112,352

98,727

Preferred dividends

1,573

1,573

3,145

3,145

Amount allocated to participating securities

105

39

178

85

FFO available to all equityholders and unitholders - diluted

52,022

51,327

115,675

101,957

Transaction costs

130

59

141

80

Debt satisfaction gains, net, including non-consolidated entities

(1,372

)

Adjusted Company FFO available to all equityholders and unitholders - diluted

52,152

51,386

115,816

100,665

FUNDS AVAILABLE FOR DISTRIBUTION:

Adjustments:

Straight-line adjustments

(2,930

)

(4,810

)

(4,950

)

(6,229

)

Lease incentives

194

249

413

518

Amortization of above/below market leases

(437

)

(380

)

(897

)

(675

)

Lease termination payments, net

(661

)

(211

)

1,543

281

Non-cash interest, net

114

360

241

788

Non-cash charges, net

1,811

1,663

3,575

3,321

Second generation tenant improvements

(716

)

(5,630

)

(735

)

(7,122

)

Second generation lease costs

(822

)

(468

)

(3,054

)

(4,419

)

Joint venture and noncontrolling interest adjustment

46

(73

)

(127

)

(184

)

Company Funds Available for Distribution

$

48,751

$

42,086

$

111,825

$

86,944

Per Common Share and Unit Amounts

Basic:

FFO

$

0.18

$

0.19

$

0.40

$

0.38

Diluted:

FFO

$

0.18

$

0.19

$

0.41

$

0.38

Adjusted Company FFO

$

0.18

$

0.19

$

0.41

$

0.38

Basic:

Weighted-average common shares outstanding - basic EPS

275,568,868

264,785,583

275,493,019

258,911,872

Operating partnership units(1)

2,793,718

3,092,807

2,822,907

3,120,464

Weighted-average common shares outstanding - basic FFO

278,362,586

267,878,390

278,315,926

262,032,336

Diluted:

Weighted-average common shares outstanding - diluted EPS

277,466,056

269,088,631

276,834,089

263,217,352

Operating partnership units(1)

2,793,718

2,822,907

Unvested share-based payment awards

44,489

14,028

26,808

19,272

Preferred shares - Series C

4,710,570

4,710,570

4,710,570

4,710,570

Weighted-average common shares outstanding - diluted FFO

285,014,833

273,813,229

284,394,374

267,947,194

  1. Includes all OP units other than OP units held by us.

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES

2021 EARNINGS GUIDANCE

Twelve Months Ended
December 31, 2021

Range

Estimated:

Net income attributable to common shareholders per diluted common share(1)

$

0.65

$

0.68

Depreciation and amortization

0.65

0.65

Impact of capital transactions

(0.56

)

(0.56

)

Estimated Adjusted Company FFO per diluted common share

$

0.74

$

0.77

  1. Assumes all convertible securities are dilutive.