Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Lexington Realty Trust — Merger or Acquisition (September 2012)
20 slides from Lxp Industrial Trust's merger presentation, Sep 6, 2012
Slide 1: Acquisition of Net Lease Strategic Assets Fund L.P.
Title LEXINGTON REALTY TRUST A real estate investment trust specializing in single - tenant commercial properties. Acquisition of Net Lease Strategic Assets Fund L.P.
Slide 2: Disclosure
Title Disclosure This presentation contains certain forward looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended, which involve known and unknown risks, uncertainties or other factors no
Slide 3: Key Benefits and Transaction Overview
Title Key Benefits and Transaction Overview 3
Slide 4: Key Benefits and Transaction Overview
Title Key Benefits and Transaction Overview 4 Transaction Overview LXP will pay Inland approximately $1.3 million, net of NLS cash balances of $8.1 million, which equals Inland’s expected distribution through December 2012 had a sale not occurred and assume approximately $258.4 million of consolid
Slide 5: Strategic Rationale
Title Strategic Rationale 5
Slide 6: Overview
Title Net Lease Strategic Assets Fund Overview 6 (1) Reflects six months ended as of June 30, 2012. Limited near term debt maturities — 2014 includes $57.5 million prepayable floating rate loan More than half of assets occupied by investment grade tenants Average interest rate on debt is 5.2%
Slide 7: Strategic Rationale: Benefits of the Transaction
Title Strategic Rationale 7 Benefits of the Transaction Immediately Accretive to Shareholders Geographically Diversified Portfolio Ideal Active Management Profile Increased Cash Flow Allows for Increased Dividend Strong cash flowing portfolio of previously owned Net Lease Assets acquired at an att
Slide 8: Pro Forma Impact
Title Net Lease Strategic Assets Fund Pro Forma Impact 8
Slide 9: Geographic Diversity
Title 1 3 9 1 1 1 1 1 1 1 3 1 2 1 1 1 1 1 3 2 1 3 1 Office 26 Properties $18.1 million Cash Base Rent (1) Industrial 13 Properties $8.9 million Cash Base Rent (1) Specialty 2 Properties $0.9 million Cash Base Rent (1) Net Lease Strategic Assets Fund Geographic Diversity 9 NLS’ portfolio provides L
Slide 10: Pro Forma Tenant Profiles
Title Pro Forma Tenant Profiles 10 Consolidated LXP NLS Pro Forma Breakdown of Cash Base Rent by Segment Breakdown of Tenant Credit Profile Consolidated LXP NLS Pro Forma NLS improves LXP’s tenant profile by providing the Company with exposure to additional investment grade tenants Unrated 35.5% N
Slide 11: Pro Forma Lease Expiration Schedule
Title Pro Forma Lease Expiration Schedule 11 (1) Consolidated square footage does not reflect multi - tenant properties. (2) Reflects cash rent for the six months ended June 30, 2012, excludes multi - tenant properties and parking operations. Acquisition of NLS portfolio does not meaningfully alte
Slide 12: Pro Forma Capital Structure
Title Pro Forma Capital Structure (1) Including OP Units and common share price of $9.38 at 8/31/12 and balance sheet data as of June 30, 2012. Strong pro forma balance sheet 12 ($ in millions) Amount Interest Rate /Coupon Debt NLS Revolving Credit Facility $57.5 L + 225 Secured Credit Facility 35
Slide 13: Pro Forma Debt Maturity Schedule
Title Pro Forma Debt Maturity Schedule 13 LXP’s current maturities, with average interest rate of 5.6% through 2015, provide significant refinancing opportunities Pro Forma Debt Maturity Schedule – 6/30/12 ($ in thousands) $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2012 2013 2014 201
Slide 14: Asset Management Opportunities
Title Net Lease Strategic Assets Fund Asset Management Opportunities 14
Slide 15: Lease Expiration Schedule
Title Net Lease Strategic Assets Fund Lease Expiration Schedule 15 (1) Reflects cash rent for the six months ended June 30, 2012. NLS Lease Expiration Schedule (By Cash Rent) (1) Active LXP management of portfolio without the need to obtain partner consent will seek to address lease expiration con
Slide 16: Refinancing To Improve Cash Flow - Proforma
Title Refinancing To Improve Cash Flow - Proforma 16 We believe LXP has a significant opportunity to reduce debt service payments 2012 - 2015 balloon maturities total $880.3 million at a weighted - average rate of 5.6% with a current pay rate of 8.9% 2013 - 2015 Potential Debt Service Savings In
Slide 17: Strong Dividend Yield
Title Strong Dividend Yield 17 LXP has a strong dividend yield relative to its peers, REITs and other equity investments » LXP has increased its dividend by 50% over the last three years » LXP has significant capacity for dividend growth ($ in thousands) 6.3% 5.3% 5.2% 3.9% 2.4% 1.9% 1.6% 0.0% 1.0
Slide 18: Conservative Payout Ratio
Title Conservative Payout Ratio 18 LXP has a conservative payout ratio relative to its peers and the REIT sector » Retained cash flow reinvested and used to reduce debt » A low payout ratio improves growth prospects over time 2012 Estimated FFO Payout Ratio 62.5% 83.1% 65.5% 64.3% 0.0% 10.0% 20.0%
Slide 19: Compelling Value Investment
Title Compelling Value Investment 19 LXP offers a compelling investment proposition with attractive value LXP currently trades at an implied cap rate significantly higher than its peers in the net lease sector (1) Source: Company and Keybanc , August 31, 2012. (2) Based on rent as of 6/30/12. Im
Slide 20: Lexington Realty Trust
Title LEXINGTON REALTY TRUST A real estate investment trust specializing in single - tenant commercial properties. Acquisition of Net Lease Strategic Assets Fund L.P.
Lexington Realty Trust — Merger or Acquisition (September 2012) on 6ix