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Lexington Realty Trust Reports First Quarter 2017 Results

NEW YORK, May 09, 2017 (GLOBE NEWSWIRE) -- Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the first quarter ended March 31, 2017.

First Quarter 2017 Highlights

  • Generated Net Income attributable to common shareholders of $40.4 million, or $0.17 per diluted common share.
  • Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $57.8 million, or $0.23 per diluted common share.
  • Acquired two industrial properties for an aggregated cost of $48.3 million and completed the last building of the Lake Jackson, TX build-to-suit project for $70.4 million.
  • Invested $17.8 million in on-going build-to-suit projects.
  • Sold seven properties for $92.8 million.
  • Sold a non-consolidated interest for $6.2 million and collected $8.5 million in full satisfaction of a loan receivable.
  • Sold the Kennewick, Washington loan receivable for $80.4 million.
  • Completed 207,000 square feet of new leases and lease extensions with overall portfolio 96.2% leased at quarter end.
  • Issued 1.6 million common shares at an average gross price of $10.89 per share under its ATM offering program.

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, Chief Executive Officer and President of Lexington Realty Trust, commented, “During the quarter, property and loan disposition volume totaled $188 million. Consistent with our strategy, these transactions further simplified our portfolio by addressing vacancy, considerably reduced our loan portfolio and contributed to increasing the weighted-average lease term of our office portfolio by almost 6% to 7.6 years. Sale proceeds are expected to be used to acquire industrial assets and to fund office and industrial build-to-suit projects. We continue to be well-positioned to act on investment opportunities as they arise over the balance of the year and expect to be most active in the industrial sector."

FINANCIAL RESULTS

Revenues

For the quarter ended March 31, 2017, total gross revenues were $96.1 million, compared with total gross revenues of $111.3 million for the quarter ended March 31, 2016. The decrease was primarily attributable to 2017 and 2016 property sales, particularly the sale of the New York City land investments in 2016, and lease expirations, partially offset by revenue generated from property acquisitions and new leases.

Net Income Attributable to Common Shareholders

For the quarter ended March 31, 2017, net income attributable to common shareholders was $40.4 million, or $0.17 per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2016 of $47.8 million, or $0.20 per diluted share.

Adjusted Company FFO

For the quarter ended March 31, 2017, Lexington generated Adjusted Company FFO of $57.8 million, or $0.23 per diluted share, compared to Adjusted Company FFO for the quarter ended March 31, 2016 of $71.8 million, or $0.29 per diluted share. The decrease was primarily attributable to the items discussed above under "Revenues".

Dividends/Distributions

As previously announced, during the first quarter of 2017, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March 31, 2017 of $ 0.175 per common share/unit, which was paid on April 17, 2017 to common shareholders/unitholders of record as of March 31, 2017. Lexington also declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock, which will be paid on May 15, 2017 to Series C Preferred Shareholders of record as of April 28, 2017.

TRANSACTION ACTIVITY

ACQUISITIONS AND COMPLETED BUILD-TO-SUIT TRANSACTIONS
Tenant Location Sq. Ft. Property
Type
Initial
Basis
($000)
Estimated
Annualized
GAAP Rent
($000)
Initial
Annualized
Cash

Rent ($000)
Estimated
GAAP
Yield
Initial
Cash

Yield
Approximate
Lease
Term (Yrs)
The Dow Chemical Company(1) Lake Jackson, TX 275,000 Office $70,401 $6,177 $5,022 9.5% 7.7% 20
Amazon.com.ksdc, LLC (Amazon.com Inc.) (2) New Century, KS 447,000 Industrial 12,056 1,240 1,049 7.1% 6.0% 10
Continental Tire the Americas, LLC(3) Lebanon, IN 742,000 Industrial 36,194 2,281 2,337 6.3% 6.5% 7
1,464,000 $118,651 $9,698 $8,408 8.1% 7.0%
(1) Final building completed. Estimated GAAP and cash yields reflect estimated annualized GAAP and initial cash rents for all four buildings of $14.9 million and $12.1 million, respectively, estimated costs of completion of all four buildings and estimated developer partner payout of approximately $8.0 million.
(2) Initial basis excludes a $2.3 million future tenant allowance, which was credited at closing. Property is subject to a ground lease with an initial annual payment of $188 thousand subject to CPI adjustments.
(3) Initial estimated annualized cash rent excludes a year-one partial rent abatement, which was credited at closing.


ON-GOING BUILD-TO-SUIT PROJECTS
Location Sq. Ft. Property Type Maximum Commitment/Estimated Completion Cost
($000)
GAAP Investment Balance as of
3/31/2017 ($000)
Estimated Acquisition/ Completion Date Estimated Initial GAAP Yield Estimated Initial Cash Yield Approximate Lease Term
(Yrs)
Charlotte, NC 201,000 Office $62,445 $49,210 2Q 17 9.5% 8.3% 15
Opelika, AL 165,000 Industrial 37,000 19,918 2Q 17 9.0% 7.1% 25
366,000 $99,445 $69,128 9.3% 7.8%


FORWARD PURCHASE COMMITMENTS
Location Sq. Ft. Property Type Maximum Acquisition Cost
($000)
Estimated Acquisition Date Estimated Initial GAAP Yield Estimated Initial Cash Yield Approximate Lease Term (Yrs)
Grand Prairie, TX 215,000 Industrial $24,725 2Q 17 7.6% 6.2% 20
Warren, MI(1) 260,000 Industrial 47,000 3Q 17 8.3% 7.3% 15
475,000 $71,725 8.0% 6.9%
(1) Lexington provided a $4.6 million letter of credit to secure its obligation to purchase this property.


PROPERTY DISPOSITIONS
Primary Tenant Location Property Type Gross Disposition
Price
($000)
Annualized Net
Income(1) ($000)
Annualized
NOI(1)
($000)
Month of Disposition
JPMorgan Chase Bank National Association(2) Lake Mary, FL Office $38,000 $2,490 $3,245 January
Puget Consumers Co-op d/b/a PCC Natural Markets Edmunds, WA Other 2,900 143 292 January
Carlson Restaurants, Inc. Carrollton, TX Office 29,406 1,790 2,161 February
James Hardie Building Products, Inc. Waxahachie, TX Industrial 16,420 1,850 3,400 February
Vacant Garland, TX Office 1,900 (12) (6) February
Vacant Foxboro, MA Office 4,130 (1,105) (415) March
$92,756 $5,156 $8,677
(1) Quarterly period prior to sale annualized.
(2) Includes two properties.

These sales resulted in aggregate gains of $34.2 million and aggregate impairment charges of $2.7 million.

In addition, Lexington sold its 40% tenant-in-common interest in the Oklahoma City, Oklahoma office property for $6.2 million resulting in a gain of $1.5 million.

LOAN INVESTMENT DISPOSITIONS

Lexington collected $8.5 million in full satisfaction of the loan receivable owed from a tenant-in-common of the Oklahoma City, Oklahoma office property. In addition, Lexington sold the Kennewick, Washington loan receivable for $80.4 million, which resulted in a loan loss of $5.3 million.

LEASING

During the first quarter of 2017, Lexington executed the following new and extended leases:

LEASE EXTENSIONS
Location Primary Tenant(1)Prior Term Lease
Expiration Date
Sq. Ft.
Office/Multi-Tenant
1 HoustonTX Ricoh USA, Inc 01/2018 01/2019 78,895
2 PhiladelphiaPA N/A 03/2020 03/2021 1,220
2 Total office lease extensions 80,115
Industrial / Multi-Tenant
1 AntiochTN N/A 02/2017 02/2020 474
1 Total industrial lease extensions 474
Other
1 StauntonVA Food Lion, LLC/Delhaize America, Inc 02/2018 02/2023 23,000
2 LexingtonNC Food Lion, LLC/Delhaize America, Inc 02/2018 02/2023 23,000
2 Total other lease extensions 46,000
5 Total lease extensions 126,589
NEW LEASES
Location Lease
Expiration Date
Sq. Ft.
Office/Multi-Tenant
1 HoustonTX Saipem America, Inc. 03/2028 54,426
2 Des MoinesIA Marketlink, Inc. 04/2018 24,385
3-6 HonoluluHI N/A 2017-2020 1,403
6 Total new office leases
80,214
6 Total new leases
80,214
11 TOTAL NEW AND EXTENDED LEASES 206,803
(1) Leases greater than 10,000 square feet.

As of March 31, 2017, Lexington's portfolio was 96.2% leased, excluding any property subject to a mortgage loan in default.

BALANCE SHEET/CAPITAL MARKETS

In the first quarter of 2017, Lexington issued 1,593,603 common shares at an average price of $10.89 per share under its ATM offering program.

2017 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2017 will be within an expected range of $0.57 to $0.61. Lexington is reaffirming that its Adjusted Company FFO for the year ended December 31, 2017 will be within an expected range of $0.94 to $0.98 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FIRST QUARTER 2017 CONFERENCE CALL

Lexington will host a conference call today, Tuesday, May 9, 2017, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2017. 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 August 9, 2017, 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 10105943. A live webcast of the conference call will be available at www.lxp.com within the Investors section.

ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust (NYSE:LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its portfolio through build-to-suit transactions, sale-leaseback transactions and 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.

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, 2017, (3) the successful consummation of any lease, acquisition, build-to-suit, 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.

Cash Rent: Cash Rent is calculated by making adjustments to GAAP rent to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents relating to free rent periods and contractual rent increases. Cash Rent excludes lease termination income. Lexington believes Cash Rent provides a meaningful indication of an investment's 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 (or loss) computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for non-consolidated partnerships and joint ventures.” NAREIT clarified its computation of FFO to exclude impairment charges on depreciable real estate owned directly or indirectly. 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 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), tenant reimbursements and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other 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 March 31,
2017 2016
Gross revenues:
Rental$88,654 $103,220
Tenant reimbursements7,445 8,057
Total gross revenues96,099 111,277
Expense applicable to revenues:
Depreciation and amortization(42,891) (43,127)
Property operating(12,116) (12,078)
General and administrative(9,457) (7,775)
Non-operating income2,621 2,867
Interest and amortization expense(19,725) (22,893)
Debt satisfaction charges, net (162)
Impairment charges and loan losses(7,992)
Gains on sales of properties34,193 17,015
Income before provision for income taxes and equity in earnings of non-consolidated entities40,732 45,124
Provision for income taxes(422) (413)
Equity in earnings of non-consolidated entities1,910 5,742
Net income42,220 50,453
Less net income attributable to noncontrolling interests(180) (1,010)
Net income attributable to Lexington Realty Trust shareholders42,040 49,443
Dividends attributable to preferred shares – Series C(1,572) (1,572)
Allocation to participating securities(71) (90)
Net income attributable to common shareholders$40,397 $47,781
Net income attributable to common shareholders - per common share basic$0.17 $0.21
Weighted-average common shares outstanding – basic 237,179,526 232,642,803
Net income attributable to common shareholders - per common share diluted$0.17 $0.20
Weighted-average common shares outstanding – diluted 241,088,049 238,885,171


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
March 31,
2017
December 31,
2016
Assets:
Real estate, at cost$3,577,239 $3,533,172
Real estate - intangible assets574,570 597,294
Investments in real estate under construction69,128 106,652
4,220,937 4,237,118
Less: accumulated depreciation and amortization1,193,639 1,208,792
Real estate, net3,027,298 3,028,326
Assets held for sale10,080 23,808
Cash and cash equivalents177,301 86,637
Restricted cash63,548 31,142
Investment in and advances to non-consolidated entities62,963 67,125
Deferred expenses, net32,431 33,360
Loans receivable, net 94,210
Rent receivable – current6,622 7,516
Rent receivable – deferred35,811 31,455
Other assets30,651 37,888
Total assets$3,446,705 $3,441,467
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net$730,310 $738,047
Term loans payable, net501,348 501,093
Senior notes payable, net494,571 494,362
Trust preferred securities, net127,121 127,096
Dividends payable47,719 47,264
Liabilities held for sale48 191
Accounts payable and other liabilities44,326 59,601
Accrued interest payable11,870 6,704
Deferred revenue - including below market leases, net41,464 39,895
Prepaid rent17,934 14,723
Total liabilities2,016,711 2,028,976
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, 240,394,082 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively24 24
Additional paid-in-capital2,819,058 2,800,736
Accumulated distributions in excess of net income(1,502,217) (1,500,966)
Accumulated other comprehensive income (loss)259 (1,033)
Total shareholders’ equity1,411,140 1,392,777
Noncontrolling interests18,854 19,714
Total equity1,429,994 1,412,491
Total liabilities and equity$3,446,705 $3,441,467


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)
Three Months Ended
March 31,
2017 2016
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders $40,397 $47,781
Weighted-average number of common shares outstanding - basic 237,179,526 232,642,803
Net income attributable to common shareholders - per common share basic $0.17 $0.21
Diluted:
Net income attributable to common shareholders - basic $40,397 $47,781
Impact of assumed conversions (19) 1,046
Net income attributable to common shareholders $40,378 $48,827
Weighted-average common shares outstanding - basic 237,179,526 232,642,803
Effect of dilutive securities:
Share options 136,881 132,191
6.00% Convertible Guaranteed Notes 1,941,237
Operating Partnership Units 3,771,642 3,820,192
Non-vested shares 348,748
Weighted-average common shares outstanding - diluted 241,088,049 238,885,171
Net income attributable to common shareholders - per common share diluted $0.17 $0.20


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
March 31,
2017 2016
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders $40,397 $47,781
Adjustments:
Depreciation and amortization 41,542 41,193
Impairment charges - real estate 2,698
Noncontrolling interests - OP units (19) 735
Amortization of leasing commissions 1,349 1,934
Joint venture and noncontrolling interest adjustment 340 236
Gains on sales of properties, including non-consolidated entities (35,645) (22,343)
FFO available to common shareholders and unitholders - basic 50,662 69,536
Preferred dividends 1,572 1,572
Interest and amortization on 6.00% Convertible Guaranteed Notes 252
Amount allocated to participating securities 71 90
FFO available to all equityholders and unitholders - diluted 52,305 71,450
Debt satisfaction charges, net 162
Loan loss 5,294
Transaction costs 186 146
Adjusted Company FFO available to all equityholders and unitholders - diluted 57,785 71,758
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
Straight-line adjustments (2,909) (11,139)
Lease incentives 431 423
Amortization of above/below market leases 514 456
Lease termination payments, net 235 (2,411)
Non-cash interest, net 155 (382)
Non-cash charges, net 2,146 2,207
Tenant improvements (1,762) (720)
Lease costs (1,671) (1,230)
Company Funds Available for Distribution $54,924 $58,962
Per Common Share and Unit Amounts
Basic:
FFO $0.21 $0.29
Diluted:
FFO $0.21 $0.29
Adjusted Company FFO $0.23 $0.29
Basic:
Weighted-average common shares outstanding - basic EPS 237,179,526 232,642,803
Operating partnership units(1) 3,771,642 3,820,192
Weighted-average common shares outstanding - basic FFO 240,951,168 236,462,995
Diluted:
Weighted-average common shares outstanding - diluted EPS 241,088,049 238,885,171
Unvested share-based payment awards 691,936
Preferred shares - Series C 4,710,570 4,710,570
Weighted-average common shares outstanding - diluted FFO 246,490,555 243,595,741
(1)Includes OP units other than OP units held by Lexington.


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
2017 EARNINGS GUIDANCE
Twelve Months Ended
December 31, 2017
Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)$0.57 $0.61
Depreciation and amortization0.68 0.68
Impact of capital transactions(0.31) (0.31)
Estimated Adjusted Company FFO per diluted common share$0.94 $0.98
(1) Assumes all convertible securities are dilutive.

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

Source:Lexington Realty Trust