Lexington Realty Trust (LXP) Tops Q4 EPS by 5c, Revenues Beat; Offers FY19 EPS Outlook

Lexington Realty Trust (NYSE: LXP) reported Q4 EPS of $0.10, $0.05 better than the analyst estimate of $0.05. Revenue for the quarter came in at $87.25 million versus the consensus estimate of $85.3 million.

• Generated Net Income attributable to common shareholders of $23.8 million, or $0.10 per diluted common share.
• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $53.7 million, or $0.22 per diluted common share.
• Acquired two industrial properties for an aggregate cost of $107.7 million.
• Disposed of nine non-industrial properties for an aggregate gross sale price of $93.3 million.
• Repurchased and retired 4.0 million common shares at an average price of $8.07 per share and increased repurchase authorization by 10.0 million common shares.
• Repaid remaining 2020 term loan balance of $149.0 million.
• Completed 452,000 square feet of new leases and lease extensions.

T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented “Through our targeted disposition and investment efforts in 2018, we increased our industrial exposure to 71% of our total gross book value at year end compared to 49% at year-end 2017. We were very active in our share buyback plan during the fourth quarter, bringing our total 2018 share repurchases to almost six million shares at an average price of $8.05 per share.

“We remain focused on transitioning to a single-tenant net-leased industrial REIT, and our disposition plan contemplates the sale of primarily office and other non-core assets with this objective in mind. Proceeds from sales, available cash, and low leverage will provide further capital to fund industrial purchases and build-to-suit opportunities.

“In connection with the repositioning of our portfolio and growth plans going forward, last year we announced that in 2019 we would revise our distribution policy in order to retain and reinvest as much of our cash flow as possible. We believe this is a prudent course which will enhance our earnings growth and net asset value per share over time. Accordingly, we announced today a new annualized dividend rate of $0.41 per common share.”

GUIDANCE:

Lexington Realty Trust sees FY2019 EPS of $1.36-$1.40, versus the consensus of $0.44.

2019 EARNINGS GUIDANCE

Lexington estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2019 will be within an expected range of $1.36 to $1.40. Lexington estimates that its Adjusted Company FFO for the year ended December 31, 2019 will be within an expected range of $0.75 to $0.79 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

For earnings history and earnings-related data on Lexington Realty Trust (LXP) click here.

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