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Lexington Realty Trust (LXP) to Acquire Inland American Joint Venture; Boosts FY12 FFO Outlook

September 6, 2012 4:33 PM EDT Send to a Friend
Lexington Realty Trust (NYSE: LXP) has entered into a definitive agreement to acquire, from Inland American (Net Lease) Sub, LLC ("Inland"), Inland's interest in Net Lease Strategic Assets Fund L.P. ("NLS"), an existing joint venture between Inland and Lexington formed in 2007, in a transaction valued at approximately $480.0 million. This transaction expands Lexington's asset base and consolidates Lexington's ownership of a 98.7% leased portfolio, which Lexington owned and/or managed since before NLS was formed. The cash component of Lexington's purchase price is approximately $1.3 million, net of NLS cash balances of $8.1 million at August 31, 2012. In addition, at August 31, 2012, NLS had approximately $258.0 million of consolidated debt.

In conjunction with the transaction, Lexington is raising its 2012 Company FFO, as adjusted, guidance to a range of $0.95 to $0.98 per common share from a range of $0.93 to $0.96 per common share. The Street is looking for FFO of $0.95.

Also today, Lexington declared a regular quarterly dividend/distribution for the quarter ended September 30, 2012, of $0.15 per common share/unit, a 20% increase from the prior quarterly rate of $0.125 per common share/unit. The dividend is payable on October 15, 2012, to common shareholders/unitholders of record as of September 28, 2012. In addition, Lexington declared dividends of $0.8125 per share of its 6.50% Series C Cumulative Convertible Preferred Stock and $0.471875 per share of its 7.55% Series D Cumulative Redeemable Preferred Stock. The Series C dividend is payable on or about November 15, 2012 to shareholders of record as of October 31, 2012. The Series D dividend is payable on October 15, 2012 to shareholders of record as of September 28, 2012.




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