Market Overview

Lexington Realty Trust Reports Second Quarter 2018 Results

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NEW YORK, Aug. 08, 2018 (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 second quarter ended June 30, 2018.

Second Quarter 2018 Highlights

  • Generated Net Loss attributable to common shareholders of $3.3 million, or $(0.01) per diluted common share.
  • Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted ("Adjusted Company FFO") of $62.4 million, or $0.25 per diluted common share.
  • Acquired three industrial properties for an aggregate cost of $136.8 million.
  • Sold three non-industrial properties for an aggregate of $65.6 million.
  • Financed an industrial property generating initial gross proceeds of $25.9 million.
  • Repurchased and retired 130,000 common shares at an average price of $7.87 per share.
  • Borrowed $95.0 million, net, under its unsecured revolving credit facility.
  • Completed 331,000 square feet of new leases and lease extensions with portfolio 97.3% leased at quarter end.

Subsequent Events

  • Sold three non-industrial properties for an aggregate of $46.6 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, Chief Executive Officer and President of Lexington Realty Trust, commented, "To date, we have added $137 million of new industrial assets to our portfolio and disposed of $175 million of office and other non-core assets.  We remain committed to our business strategy of repositioning our portfolio so that it consists primarily of single-tenant net-leased industrial assets.  Considerable progress has been made on reducing our office exposure and we continue to focus on accelerating our disposition efforts in this area of our business."

FINANCIAL RESULTS

Revenues

For the quarter ended June 30, 2018, total gross revenues were $105.5 million, compared with total gross revenues of $95.7 million for the quarter ended June 30, 2017. The increase was primarily attributable to revenue generated from 2018 and 2017 property acquisitions and new leases, partially offset by property sales and lease expirations.

Net Income (Loss) Attributable to Common Shareholders

For the quarter ended June 30, 2018, net loss attributable to common shareholders was $3.3 million, or $(0.01) per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2017 of $5.5 million, or $0.02 per diluted share. The change between periods relates primarily to the timing of gains on sales and impairments recognized on real estate.

Adjusted Company FFO

For the quarter ended June 30, 2018, Lexington generated Adjusted Company FFO of $62.4 million, or $0.25 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2017 of $57.0 million, or $0.23 per diluted share. The increase was primarily attributable to the items discussed above under "Revenues".

Dividends/Distributions

As previously announced, during the second quarter of 2018, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended June 30, 2018 of $0.1775 per common share/unit, which was paid on July 16, 2018 to common shareholders/unitholders of record as of June 29, 2018. Lexington previously 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, 2018, which is expected to be paid on August 15, 2018 to Series C Preferred Shareholders of record as of July 31, 2018.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS
Tenant   Location   Sq. Ft.   Property Type   Initial Basis
($000)
  Approximate
Lease Term
(Yrs)
Sephora USA, Inc.   Olive Branch, MS   716,080     Industrial   $ 44,090     11
Hamilton Beach Brands, Inc.   Olive Branch, MS   1,170,218     Industrial   48,575     3
Spectrum Brands Pet Group, Inc.   Edwardsville, IL   1,017,780     Industrial   44,178     12
        2,904,078         $ 136,843      
                           

The above were acquired at aggregate weighted-average GAAP and cash capitalization rates of 7.3% and 5.8%, respectively.

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   Lawrence, IN   Other   $ 550     $ (200 )   $ (185 )   May   0 %
Mighty Dollar, LLC   Thomasville, NC   Other   600     66     86     June   100 %
CopperPoint Mutual Insurance Company   Phoenix, AZ   Office   64,499     2,991     4,173     June   100 %
            $ 65,649     $ 2,857     $ 4,074          
                                         

(1)  Quarterly period prior to sale annualized.

These dispositions resulted in aggregate gain on sales of $14.4 million.

LEASING
                       
    LEASE EXTENSIONS        
                       
    Location   Primary Tenant(1) Prior
Term
  Lease
Expiration Date
  Sq. Ft.
    Office                
1   Pascagoula MS   Huntington Ingalls Incorporated   10/2018   10/2023   94,841  
2   Tempe AZ   Versum Materials US, LLC   06/2022   12/2033   95,133  
2   Total office lease extensions             189,974  
                       


    NEW LEASES                  
                       
    Location           Lease
Expiration Date
  Sq. Ft.
    Office/Multi-Tenant                
1   Irving TX   Nissan Motor Acceptance Corporation       03/2023   43,396  
2   Redmond OR   Consumer Cellular, Incorporated       07/2029   77,260  
3   Phoenix AZ   HealthPlanOne, LLC       02/2024   20,164  
3   Total new office leases               140,820  
                     
5   TOTAL NEW AND EXTENDED
LEASES
              330,794  

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

As of June 30, 2018, Lexington's portfolio was 97.3% leased.

BALANCE SHEET/CAPITAL MARKETS

In the second quarter of 2018, Lexington repurchased and retired 130,000 common shares at an average price of $7.87 per share under its repurchase authorization announced on July 2, 2015 in the amount of 10.0 million common shares. As of June 30, 2018, there were approximately 5.7 million common shares remaining to be repurchased under the authorization.

Also, in the second quarter, Lexington obtained $25.9 million in non-recourse financing on an industrial property in Warren, Michigan. The loan matures in November 2032, bears interest at a fixed rate of 5.4% and is interest only through November 2027.

2018 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2018 will be within an expected range of $0.24 to $0.27. Lexington is reaffirming that its Adjusted Company FFO for the year ended December 31, 2018 is expected to be within a range of $0.95 to $0.98 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

SECOND QUARTER 2018 CONFERENCE CALL

Lexington will host a conference call today, August 8, 2018, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended June 30, 2018. 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 November 8, 2018, 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 10122347. A link to a live webcast of the conference call is 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.

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, 2018, (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 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), 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 June 30,   Six months ended June 30,
  2018   2017   2018   2017
Gross revenues:              
Rental $ 97,649     $ 87,565     $ 192,171     $ 176,219  
Tenant reimbursements 7,844     8,119     15,959     15,564  
Total gross revenues 105,493     95,684     208,130     191,783  
Expense applicable to revenues:              
Depreciation and amortization (45,440 )   (42,320 )   (91,977 )   (85,211 )
Property operating (10,906 )   (12,974 )   (22,383 )   (25,090 )
General and administrative (7,421 )   (8,141 )   (16,417 )   (17,598 )
Non-operating income 354     1,371     900     3,992  
Interest and amortization expense (21,734 )   (19,216 )   (42,065 )   (38,941 )
Debt satisfaction charges, net     (46 )       (46 )
Impairment charges and loan loss (35,269 )   (13,599 )   (88,318 )   (21,591 )
Gains on sales of properties 14,432     10,240     37,206     44,433  
Income (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entities (491 )   10,999     (14,924 )   51,731  
Provision for income taxes (379 )   (377 )   (882 )   (799 )
Equity in earnings (losses) of non-consolidated entities 75     (3,257 )   188     (1,347 )
Net income (loss) (795 )   7,365     (15,618 )   49,585  
Less net income attributable to noncontrolling interests (899 )   (213 )   (391 )   (393 )
Net income (loss) attributable to Lexington Realty Trust shareholders (1,694 )   7,152     (16,009 )   49,192  
Dividends attributable to preferred shares – Series C (1,573 )   (1,573 )   (3,145 )   (3,145 )
Allocation to participating securities (60 )   (60 )   (130 )   (131 )
Net income (loss) attributable to common shareholders $ (3,327 )   $ 5,519     $ (19,284 )   $ 45,916  
               
Net income (loss) attributable to common shareholders - per common share basic $ (0.01 )   $ 0.02     $ (0.08 )   $ 0.19  
Weighted-average common shares outstanding – basic 237,312,726     237,720,198     237,690,306     237,451,355  
               
Net income (loss) attributable to common shareholders - per common share diluted $ (0.01 )   $ 0.02     $ (0.08 )   $ 0.19  
Weighted-average common shares outstanding – diluted 237,312,726     241,531,313     237,690,306     241,310,529  
                       


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
 
  June 30, 2018   December 31, 2017
Assets:      
Real estate, at cost $ 3,650,121     $ 3,936,459  
Real estate - intangible assets 523,097     599,091  
  4,173,218     4,535,550  
Less: accumulated depreciation and amortization 1,139,865     1,225,650  
Real estate, net 3,033,353     3,309,900  
Assets held for sale 171,550     2,827  
Cash and cash equivalents 75,373     107,762  
Restricted cash 71,564     4,394  
Investment in and advances to non-consolidated entities 17,199     17,476  
Deferred expenses, net 29,472     31,693  
Rent receivable – current 4,712     5,450  
Rent receivable – deferred 52,861     52,769  
Other assets 20,107     20,749  
Total assets $ 3,476,191     $ 3,553,020  
       
Liabilities and Equity:      
Liabilities:      
Mortgages and notes payable, net $ 701,774     $ 689,810  
Revolving credit facility borrowings 195,000     160,000  
Term loans payable, net 597,251     596,663  
Senior notes payable, net 495,616     495,198  
Trust preferred securities, net 127,246     127,196  
Dividends payable 48,474     49,504  
Liabilities held for sale 2,333      
Accounts payable and other liabilities 26,207     38,644  
Accrued interest payable 6,069     5,378  
Deferred revenue - including below market leases, net 33,736     33,182  
Prepaid rent 13,189     16,610  
Total liabilities 2,246,895     2,212,185  
       
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, 239,888,688 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively 24     24  
Additional paid-in-capital 2,811,981     2,818,520  
Accumulated distributions in excess of net income (1,693,165 )   (1,589,724 )
Accumulated other comprehensive income 1,098     1,065  
Total shareholders' equity 1,213,954     1,323,901  
Noncontrolling interests 15,342     16,934  
Total equity 1,229,296     1,340,835  
Total liabilities and equity $ 3,476,191     $ 3,553,020  
               


LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)
 
      Three Months Ended   Six Months Ended
      June 30,   June 30,
      2018   2017   2018   2017
EARNINGS PER SHARE:                
                 
Basic:                
Net income (loss) attributable to common shareholders   $ (3,327 )   $ 5,519     $ (19,284 )   $ 45,916  
                   
Weighted-average number of common shares outstanding - basic   237,312,726     237,720,198     237,690,306     237,451,355  
                 
Net income (loss) attributable to common shareholders - per common share basic   $ (0.01 )   $ 0.02     $ (0.08 )   $ 0.19  
                   
Diluted:                  
Net income (loss) attributable to common shareholders - basic   $ (3,327 )   $ 5,519     $ (19,284 )   $ 45,916  
Impact of assumed conversions               (19 )
Net income (loss) attributable to common shareholders   $ (3,327 )   $ 5,519     $ (19,284 )   $ 45,897  
                   
Weighted-average common shares outstanding - basic   237,312,726     237,720,198     237,690,306     237,451,355  
Effect of dilutive securities:                
Share options       86,653         111,252  
Operating partnership units       3,724,462         3,747,922  
Weighted-average common shares outstanding - diluted   237,312,726     241,531,313     237,690,306     241,310,529  
                   
Net income (loss) attributable to common shareholders - per common share diluted   $ (0.01 )   $ 0.02     $ (0.08 )   $ 0.19  
                                 


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
June 30,
  Six Months Ended
June 30,
      2018   2017   2018   2017
FUNDS FROM OPERATIONS:            
Basic and Diluted:                
Net income (loss) attributable to common shareholders   $ (3,327 )   $ 5,519     $ (19,284 )   $ 45,916  
Adjustments:                
  Depreciation and amortization   44,225     41,076     89,379     82,618  
  Impairment charges - real estate   35,269     17,111     88,318     19,809  
  Noncontrolling interests - OP units   649         (80 )   (19 )
  Amortization of leasing commissions   1,215     1,244     2,598     2,593  
  Joint venture and noncontrolling interest adjustment   258     265     516     605  
  Gains on sales of properties, including non-consolidated entities   (14,432 )   (10,240 )   (37,206 )   (45,885 )
FFO available to common shareholders and unitholders - basic   63,857     54,975     124,241     105,637  
  Preferred dividends   1,573     1,573     3,145     3,145  
  Amount allocated to participating securities   60     60     130     131  
FFO available to all equityholders and unitholders - diluted   65,490     56,608     127,516     108,913  
  Debt satisfaction charges, net       46         46  
  Loan loss               5,294  
  Other(1)   (3,120 )   302     (3,120 )   488  
Adjusted Company FFO available to all equityholders and unitholders - diluted   62,370     56,956     124,396     114,741  
                 
FUNDS AVAILABLE FOR DISTRIBUTION:                
Adjustments:                
  Straight-line adjustments   (6,013 )   (5,641 )   (10,879 )   (8,550 )
  Lease incentives   519     510     1,055     941  
  Amortization of above/below market leases   246     346     224     860  
  Lease termination payments, net   (309 )   (530 )   (617 )   (295 )
  Non-cash interest, net   1,299     497     2,324     652  
  Non-cash charges, net   1,625     1,987     3,564     4,133  
  Tenant improvements   (662 )   (4,233 )   (6,594 )   (5,995 )
  Lease costs   (1,192 )   (1,385 )   (1,801 )   (3,056 )
Company Funds Available for Distribution   $ 57,883     $ 48,507     $ 111,672     $ 103,431  
                   
Per Common Share and Unit Amounts                
Basic:                
  FFO   $ 0.27     $ 0.23     $ 0.51     $ 0.44  
                     
Diluted:                
  FFO   $ 0.27     $ 0.23     $ 0.52     $ 0.44  
  Adjusted Company FFO   $ 0.25     $ 0.23     $ 0.50     $ 0.47  
                     
Basic:                
  Weighted-average common shares outstanding - basic EPS   237,312,726     237,720,198     237,690,306     237,451,355  
  Operating partnership units(2)   3,619,315     3,724,462     3,624,228     3,747,922  
  Weighted-average common shares outstanding - basic FFO   240,932,041     241,444,660     241,314,534     241,199,277  
                     
Diluted:                
  Weighted-average common shares outstanding - diluted EPS   237,312,726     241,531,313     237,690,306     241,310,529  
  Operating partnership units(2)   3,619,315         3,624,228      
  Unvested share-based payment awards and options   445,283     606,934     503,461     648,810  
  Preferred shares - Series C   4,710,570     4,710,570     4,710,570     4,710,570  
  Weighted-average common shares outstanding - diluted FFO   246,087,894     246,848,817     246,528,565     246,669,909  
                           

(1) "Other" primarily consisted of the acceleration of below-market lease intangible accretion in 2018 and transaction related costs in 2017.

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

 
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
       
2018 EARNINGS GUIDANCE      
  Twelve Months Ended
December 31, 2018
  Range
Estimated:      
Net income attributable to common shareholders per diluted common share(1) $ 0.24     $ 0.27  
Depreciation and amortization 0.73     0.73  
Impact of capital transactions (0.02 )   (0.02 )
Estimated Adjusted Company FFO per diluted common share $ 0.95     $ 0.98  
               

(1) Assumes all convertible securities are dilutive.

 

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