Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Lexington Realty Trust — Investor Presentation (May 2013)
28 slides from Lxp Industrial Trust's investor presentation, May 8, 2013
Slide 1: Lexington Realty Trust Spring 2013
hy A Spring 2013 LEXINGTON REALTY TRUST Areal estate investmenttrust specializing in single-tenant ae commercial properties.
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: Ten Reasons To Own LXP
Ten Reasons To Own LXP 4.6% Dividend Yield") Conservative Payout Ratio Advantages of Net Lease Properties Diversified Portfolio Active Asset Management & Capital Recycling Attractive Growth Prospects Strong Balance Sheet Refinancing Opportunity Compelling Value Investment ¢-e¢e OO Experienced Manage
Slide 4: Strong Dividend Yield
Strong Dividend Yield a
Slide 5: Strong Dividend Yield
Strong Dividend Yield @ LXP has a strong dividend yield relative to its peers, REITs and other equity investments > LXP has increasedits dividend by 50% overthe last three years > LXP believesithas capacity for dividend growth Current Dividend Yield LXP NetLease Off/indREITs AIIREITs DowJones $&P500
Slide 6: Conservative Payout Ratio
Conservative Payout Ratio a
Slide 7: Conservative Payout Ratio
Conservative Payout Ratio @ LXP has a conservative payout ratio relative to its peers and the REIT sector > Retained cash flow reinvestedand used to reduce debt >A low payout ratio improves growth prospects overtime 2013 FFO Payout Ratio‘) 2013 Estimated FFO Multiples 90.0% 25.0 80.0% 70.0% 20.0. 60
Slide 8: Advantages of Net Lease Properties
Advantages of Net Lease Properties a
Slide 9: Advantages of Net Lease Properties
Advantages of Net Lease Properties Asset Level Net Lease Benefits Portfolio Benefits @ Sustained, predictable cash flows. A diversified portfolio ® Mitigated inflation risk due to tenant operating = of single-tenant, net expense obligations. lease assets mitigates @ High levels of occupancy and mini
Slide 10: Diversified Portfolio
Diversified Portfolio a 10
Slide 11: Diversified by Geography & Property Type
Diversified by Geography & Property Type Office Industrial Retail/Specialty Multi-Tenant + 116 properties + 60 properties - 31 properties + 13properties + 15.7 million sq ft + 21.6 million sqft + 1.7 million sqft + 2.2 million sq ft States with rental revenue greater than $10 million on an annualize
Slide 12: Strong Tenant Diversification
Strong Tenant Diversification Top 10 Tenants Revenue by Credit Rating Primary Credit Lease Term % of Rating ‘Top 10 Tenants/ Expiration of Annualized Lense Guarantor Year Leases BaseRent S&P __ Moody's Metals Srucural Products, Tne.JDansHalding Corporations 16/25, 7 28% Ba Dana Liited US Government
Slide 13: Lease Expiration Schedule
Lease Expiration Schedule @ Balanced rollover with meaningful progress addressing expirations and extending lease term: Lease Expiration Schedule (By Square Feet in thousands)\ 12,000: maa wai2 10,000 8,000 6000 4000 , a 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thereafter Lease Expiration S
Slide 14: Active Asset Management & Capital Recycling
Active Asset Management & Capital Recycling a 14
Slide 15: Recent Capital Recycling Activity
Recent Capital Recycling Activity Sellnon-core and under-performing assets, includingretail, multi-tenant, and Capital vacant properties. Recycling @ Produce funds for deleveraging and accretive acquisitions to maximize value. Philosophy @ Improve overall portfolio quality. Disposition Volume and Ca
Slide 16: Attractive Growth Prospects
Attractive Growth Prospects a 16
Slide 17: Significant External Growth Opportunities
Significant External Growth Opportunities Four build-to-suit projects underway at 3/31/13 for an aggregate estimated investment of $111.2 million, of which $48.2 imillion was invested as of 3/31/13. ©) @ One forward purchase commitmentfor $39.1 million with 413 delivery date @ = InMarch 2013, acquir
Slide 18: Strong Balance Sheet
Strong Balance Sheet ak 18
Slide 19: Current Capital Structure
Current Capital Structure @ Strong balance sheet Unsecured Trust preferred, Corwertible credit Facility, DP Debt, 9% 0.0% Term Debt, 5.3% Preferred Equity, 5.3% Mortgage Debt, 25.5% Common Equity, 59.3% {2} $175.6.milion of mortgage debt satisfied subsequentto March 31,2013, (2) Redzemad at parinapr
Slide 20: Deleveraging Program A Success
Deleveraging Program A Success Strengthening of Balance Sheet aon 201? IANO 429100 2908 _A2OvT Consolidated leverage reduced by Debt SisstB S18HB F183B §1 79398 $2078 $2308 $3088 ai Market Ecuity $1.4 billion Prefered Shares $0.252B $0228 $0228 $0338 $0339B $0348 $0308 Commenced in January 2008 Comm
Slide 21: Refinancing Opportunity
Refinancing Opportunity a at
Slide 22: Refinancing To Improve Cash Flow
Refinancing To Improve Cash FI @ We believe LXP has a significant opportunity to reduce debt service payments. @ 2013-2015 balloon maturities total $445.1 million at a weighted-average rate of 5.5% with a current pay rate of 8.7%: 2013-2015 Potential Debt Service Savings Interest Rate Annual Savings
Slide 23: Compelling Value Investment
Compelling Value Investment ak 23
Slide 24: Property Type and Valuation
Property Ty} Long-term Industrial, (1) Based onrent as of March 31,2013, (2) Source: KeyBankas of May3,2013.LXP Estimated FFO Multiple based on midpointFFO guidance. 25.0 20.0 16.0 10.0 50 oo 2013 Estimated FFO Multiples 15.7%] LXP Industrial Office NetLease REITs REITs REITs as
Slide 25: Experienced Management
Experienced Management a 25
Slide 26: Impressive Operating / Equity Performance
Impressive Operating / Equity Performance Strong operating performance has led to predictable cash flows and impressive value creation for stakeholders. Occupancy and Leasing Volume Wtd. Average Lease Term") 8,000 % 26 1% 2° asa ge 74% y 98.0% 80 7 tnyears 14 70 2g 6,000 9 96.0% $3 2346 8.1 6.2 Pe 4
Slide 27: Ten Reasons To Own LXP
Ten Reasons To Own LXP 4.6% Dividend Yield") Conservative Payout Ratio Advantages of Net Leases Diversified Portfolio Active Asset Management & Capital Recycling Attractive Growth Prospects Strong Balance Sheet Refinancing Opportunity Compelling Value Investment Si 2 A 2 A 2 Experienced Management a
Slide 28: Lexington Realty Trust
LEXINGTON REALTY TRUST LEXINGTON REALTY TRUST. Areal estate investmenttrust specializingin single tenant commercial properties.
Lexington Realty Trust — Investor Presentation (May 2013) on 6ix