Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Lexington Realty Trust — Investor Presentation (January 2013)
31 slides from Lxp Industrial Trust's investor presentation, Jan 8, 2013
Slide 1: Lexington Realty Trust Winter 2012
hy A Winter 2012 LEXINGTON REALTY TRUST Areal estate investmenttrust specializing in single-tenant eka 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 5.6% 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 Managem
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 6.0% 5.0% 40% 3.0% 2.0% 1.0% LXP NetLease Off/indR
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 2012 Estimated FFO Payout Ratio’) 2013 Estimated FFO Multiples() 100.0% 90.0% 80.0%
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 fuck @ Predictable cash flow @ Operating expenses paid by the tenant @ Highlevels of occupancy @ Long-term leases Adiversified portfolio of net-leased properties should trade at a premium to multi-tenant properties.
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 + 118 properties - 58 properties - 34properties + 13properties + 15.7 million sq ft + 21.3 million sqft + 1.8 million sqft + 2.2 million sq ft States with rental revenue greater than $10 million on an annualized
Slide 12: Strong Tenant Diversification
Strong Tenant Diversification Top 10 Tenants Primary Credit Lease Term of Rating ‘Top 10 Tenants/ Expiration # of Annualized Lease Guarantor Year Leases BareRent_ S&P Moody's Bark of Ametica, NA, 14p9 8 396 A os Matasa Stustual Produ, Inc, Dana Helding Corporation 16,25 7 2a BBs Dana United Federal
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 10,000 8,000 6,000 4000 2oce ee | 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thereafter m12/12 12/11 Lease Exp
Slide 14: Active Asset Management & Capital Recycling
Active Asset Management & Capital Recycling a 14
Slide 15: Leasing & Capital Recycling Success
Leasing & Capital Recycling Success (000's) 8,000 6,000 93.5% Square © 1% 93.4% Feet 4.000 a m i J 2009 2010 2011 Leasing Volume and OccupancyPercentages ($000’s) 300 250 8.2% ‘fai 200 4.2% 74% 7AM lume 54 6.5% 100 50 2008 2009 2010 2011 2012 Disposition Volume and Cap Rates a 15
Slide 16: Attractive Growth Prospects
Attractive Growth Prospects a 16
Slide 17: Growth Highlights
12 Growth Highlights Completed eight build-to-suit transactions for an aggregate capitalized cost of $107.5 million Acquired an office property in Phoenix, AZ for $53.2 million and an industrial property in Missouri City, TX for $23.0 million Formed two joint ventures which acquired a retail propert
Slide 18: Sale-Leaseback Transaction: CopperPoint Mutual Insurance Company
Sale-Leaseback ‘Transaction: CopperPoint Mutual Insurance Company Size: 252,400 square feet Cost: $53.2 million Lease Term: 17 years Cap Rate: 7.12% Escalations 3.0% annuall . com sca : d z y CopperPoint Mutual Insurance Company GAAP Rent: 9.1% of cost Phoenix, Arizona
Slide 19: Build-to-Suit Transaction: Easton-Bell Sports
Build-to-Suit Transaction: Easton-Bell Sports EES Size: 813,000 square feet Cost: $42.6 million Lease Term: 20 years Cap Rate: 8.0% Escalations: 2% annually Easton-Bell Sports GAAP Rent: 9.7% of cost Rantoul. Illinois Expected Completion Date: 4Q13 ik
Slide 20: Build-to-Suit Transaction: FedEx
Build-to-Suit ‘Transaction: FedEx ea Ee Size: Cost: Lease Term: Cap Rate: Escalations: GAAP Rent: Expected Completion Date: 143,000 square feet $46.7 million 15 years 8.5% 7.5% every five years 9.2% of cost FedEx Ground Package System, Inc. Long Island City, New York 1Q 13 a 20
Slide 21: Strong Balance Sheet
Strong Balance Sheet a at
Slide 22: Capital Structure
Capital Structure ® Strong balance sheet Se rilions) Interest Rate Amount /Coupon Trust Convertible Preferred, Debt, 2.0% Debt erm De 3.1% ae Secured Credit Facility Soo L41675 preferred Term Loan Due 2019 255.0 87% Equity, 6.1% Convertible Guaranteed Notes 63.9 6.00% Mortgages 14269 5.80% Trust Pre
Slide 23: Deleveraging Program A Success
Deleveraging Program A Success ¢ Commenced in January 2008 Strengthening of Balance Sheet ¢ Consolidated leveragereduced by $1.2billion = SSS) EEE asso a aaven pase ane Cissus? soz ss28 $0308 some Sosa socK8 CcommonEquly $1008 $1048 912018 so7748 sosme sia68 Telit “sae austen tema sLHeR samme 916m T
Slide 24: Refinancing Opportunity
Refinancing Opportunity a aA
Slide 25: 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 $783.6 million at a weighted-average rate of 5.6% with a current pay rate of 8.5% 2013-2015 Potential Debt Service Savings Interest Rate Annual Savings*
Slide 26: Compelling Value Investment
Compelling Value Investment a 26
Slide 27: LXP offers a compelling investment proposition with attractive value
® LXP offers a compelling investment Implied Cap Rate proposition with attractive value 8.4% 8.2% © LXP currently trades at an implied ee cap rate significantly higher than its 7.5% | peers in the net lease sector 7.8% | 7.2% 7.0% LXP Industrial Office REITs Net Lease) REITs REITs Property Type(2) 2
Slide 28: Experienced Management
Experienced Management ak 28
Slide 29: Our Strategies Are Working
Our Strategies Are Working @ LXP has outperformed the market and management believes LXP has numerous opportunities to continue to create value for shareholders LXP Total Return vs. Indices 500.0% 500.0% 400.0% —ve Soniee —ams Russell 2000 200.0% ser 500 100.0% 0.0% 3/9/2009 8/8/2009 1/9/2010 6/9/20
Slide 30: Ten Reasons To Own LXP
Ten Reasons To Own LXP 5.6% 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 30
Slide 31: Lexington Realty Trust
LEXINGTON REALTY TRUST LEXINGTON REALTY TRUST. Areal estate investmenttrust specializingin single tenant commercial properties.
Lexington Realty Trust — Investor Presentation (January 2013) on 6ix