Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Lexington Realty Trust — Debt Investor Presentation (August 2020)
18 slides from Lxp Industrial Trust's debt investor presentation, Aug 14, 2020
Slide 1: Fixed Income Presentation August 2020
Fixed Income Presentation August 2020
Slide 2: Disclosure
Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve known and unknown risks, uncertainties or other factors not under Le
Slide 3: Company & Portfolio Overview
Company & Portfolio Overview Key Statistics 1 Total Enterprise Value 2 ~$4.8 bn Net Debt 3 / Adjusted EBITDA 5.2x Secured Debt / Gross Assets 8.6% Weighted Average Lease 8.1 years Term Average Contractual Rent 1.7% Growth 4 Portfolio Leased 97.3% Property Type 5 Tenant Credit Ratings 6 1. As of 6/30
Slide 4: COVID-19 Business Update
COVID-19 Business Update COVID-19 Response Overview Management continues to monitor events and is taking steps to mitigate the potential impact and risks to the Company. Continue to successfully execute our business plan in a virtual working environment. Executive management team and employees remai
Slide 5: Portfolio Repositioning & Evolution
Portfolio Repositioning & Evolution Substantial progress made in transitioning portfolio through accelerated non-core disposition activity to focus on high-quality, single-tenant industrial assets. Property Disposition Volume Build-to-Suit and Acquisition Volume2 1. As of 8/6/2020. 2. Includes 100%
Slide 6: Industrial Property Geography
Industrial Property Geography Properties primarily located in the South and Midwest with approximately 60% of portfolio located in top 25 industrial markets. 1 LXP Top Markets ( by Square Footage ) 1 Market Concentration ( by Base Rent ) 2 WA ME MO OR MN NH ID Memphis 8.7% WI NY MA A MI Greenville/S
Slide 7: Industrial Portfolio
Industrial Portfolio Portfolio Metrics 1 Property Type 4 Q2 2020 # of Properties 111 6% 5% Total Square Footage 53.1M Warehouse / Distribution 9% Net Operating Income 2 $105.8M Manufacturing % Leased 98.3% Weighted-Average Lease Term (years) 3 7.8 Light Manufacturing Investment Grade Tenancy 4 50.3%
Slide 8: Consolidated Office/Other Portfolio
Consolidated Office/Other Portfolio Portfolio Metrics 1 Lease Escalations 7 Q2 2020 # of Properties 26 9% Total Square Footage 3.5M 9% Net Operating Income 2 $25.1M Annual Escalations % Leased 82.0% Other Escalations Weighted-Average Lease Term (years) 3 9.4 20% Flat Rent Investment Grade Tenancy 4
Slide 9: Balance Sheet Strategy
Balance Sheet Strategy Since 2014, improved balance sheet and credit metrics with a focus on extending maturities, unencumbering assets and maintaining investment-grade ratings. Credit Metrics Comparison Since Last Bond Offering 12/31/2014 6/30/2020 Change Balance Sheet Credit Metrics: Adjusted Comp
Slide 10: Balance Sheet Transformation
Balance Sheet Transformation Net Debt / Adjusted EBITDA Debt / Gross Assets 7.0x 50.0% 42.0% 5.2x 5.7x 5.0x 37.5% 30.8% 3.0x 25.0% 2014 2015 2016 2017 2018 2019 Q2 2020 2014 2015 2016 2017 2018 2019 Q2 2020 Secured Debt / Gross Assets % Unencumbered NOI 25.0% 90.0% 84.9% 19.0% 15.0% 70.0% 59.9% 8.6%
Slide 11: Measures-Definitions
Non-GAAP Measures-Definitions Lexington has used non-GAAP financial measures as defined by Regulation G promulgated by the Securities and Exchange Commission in this presentation. Lexington believes that the measures defined below are helpful to investors in measuring Lexington’s performance or that
Slide 12: Measures-Definitions, cont.
Non-GAAP Measures-Definitions, cont. Net Operating Income (NOI): 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 Lexingto
Slide 13: Measures-Reconciliations: Q2 2020 NOI
Non-GAAP Measures-Reconciliations Q2 2020 NOI Reconciliation: ($000) Six months ended June 30, 2020 Net income $ 37,551 Interest and amortization expense 28,961 Provision for income taxes 1,075 Depreciation and amortization 80,314 General and administrative 15,380 Transaction costs 80 Non-operating/
Slide 14: Measures-Reconciliations: Q2 2020 Adjusted EBITDA
Non-GAAP Measures-Reconciliations, cont. Q2 2020 Reconciliation to Adjusted EBITDA: ($000) Three months ended Trailing 12 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Months Net income attributable to Lexington Realty Trust shareholders $ 18,866 $ 18,154 $ 85,231 $ 143,319 $ 265,570 Interest and amortiz
Slide 15: Measures-Reconciliations: Q2 2020 Select Credit Metrics
Non-GAAP Measures-Reconciliations, cont. Q2 2020 Reconciliation of Select Credit Metrics: ($000) Six months ended June 30, 2020 Adjusted Company FFO Payout: Common share dividends per share $ 0.21 Adjusted Company FFO per diluted share 0.38 Adjusted Company FFO payout ratio 55.3% Unencumbered Assets
Slide 16: Measures-Reconciliations: FY 2014 NOI
Non-GAAP Measures-Reconciliations, cont. FY 2014 NOI Reconciliation: ($000) Twelve months ended December 31, 2014 Net income $ 97,463 Continuing Operations: Interest and amortization expense 97,303 Provision for income taxes 1,109 Depreciation and amortization 154,837 General and administrative 28,2
Slide 17: Measures-Reconciliations: FY 2014 Adjusted EBITDA
Non-GAAP Measures-Reconciliations, cont. FY 2014 Reconciliation to Adjusted EBITDA: ($000) Twelve months ended December 31, 2014 Net income attributable to Lexington Realty Trust shareholders $ 93,104 Continuing operations: Interest and amortization expense 97,303 Provision for income taxes 1,109 De
Slide 18: Measures-Reconciliations: FY 2014 Select Credit Metrics
Non-GAAP Measures-Reconciliations, cont. FY 2014 Reconciliation of Select Credit Metrics: ($000) Twelve months ended December 31, 2014 Adjusted Company FFO Payout: Common share dividends per share $ 0.675 Adjusted Company FFO per diluted share 1.11 Adjusted Company FFO payout ratio 60.8% Unencumbere
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