Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Lexington Realty Trust — Investor Presentation (March 2013)
31 slides from Lxp Industrial Trust's investor presentation, Mar 11, 2013
Slide 1: Lexington Realty Trust Winter 2013
Winter 2013 LEXINGTON REALTY TRUST A real estate investment trust specializing in single - tenant commercial properties.
Slide 2: Disclosure
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 not un
Slide 3: Ten Reasons To Own LXP
Ten Reasons To Own LXP 5.2% Dividend Yield (1) 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 Experienced Management 3
Slide 4: Strong Dividend Yield
Strong Dividend Yield ak
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 increased its dividend by 50% over the last three years » LXP believes it has capacity for dividend growth Current Dividend Yield 5 Source: LXP data based on $0.60 annual dividen
Slide 6: Conservative Payout Ratio
Conservative Payout Ratio ak
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 reinvested and used to reduce debt » A low payout ratio improves growth prospects over time 7 (1) Source: LXP FFO Payout Ratio data based on $0.60 annual dividend. Other data:
Slide 8: Advantages of Net Lease Properties
Advantages of Net Lease Properties 8
Slide 9: Advantages of Net Lease Properties
Advantages of Net Lease Properties Predictable cash flow Operating expenses paid by the tenant High levels of occupancy Long - term leases A diversified portfolio of net - leased properties should trade at a premium to multi - tenant properties. 9
Slide 10: Diversified Portfolio
Diversified Portfolio ak 10
Slide 11: Diversified by Geography & Property Type
Diversified by Geography & Property Type 11 Office • 117 properties • 15.7 million sq ft Industrial • 58 properties • 21.3 million sq ft Retail/Specialty • 32 properties • 1.8 million sq ft Multi - Tenant • 14 properties • 2.4 million sq ft 24 1 6 7 1 1 3 2 3 3 1 1 3 6 2 3 5 14 14 15 2 1 10 6 9 3 7
Slide 12: Strong Tenant Diversification
Strong Tenant Diversification 12 Primary Lease Term % of Credit Rating 1 Top 10 Tenants/ Lease Guarantor Expiration Year # of Leases Annualized Base Rent S&P Moody’s Bank of America, N.A. 14/19 8 3.0% A A3 Metalsa Structural Products, Inc./ Dana Holding Corporation/ Dana Limited 16/25 7 2.8% BB Ba3
Slide 13: Lease Expiration Schedule
Lease Expiration Schedule 13 Balanced rollover with meaningful progress addressing expirations and extending lease term 0 2,000 4,000 6,000 8,000 10,000 12,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thereafter Lease Expiration Schedule (By Square Feet in thousands) (1) 12/12 12/11 - 20,00
Slide 14: Active Asset Management & Capital Recycling
Active Asset Management & Capital Recycling 14
Slide 15: Leasing & Capital Recycling Success
Leasing & Capital Recycling Success 15 93.5% 92.0% 93.4% 95.9% 97.3% - 2,000 4,000 6,000 8,000 2008 2009 2010 2011 2012 6.2% 6.6% 4.2% 7.4% 7.2% - 50 100 150 200 250 300 2008 2009 2010 2011 2012 Square Feet Leasing Volume and Occupancy Percentages Volume Disposition Volume and Cap Rates ($000’s) (00
Slide 16: Attractive Growth Prospects
Attractive Growth Prospects 16
Slide 17: 2012 Growth Highlights
2012 Growth Highlights Completed eight build - to - suit transactions for an aggregate capitalized cost of $107.3 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 p
Slide 18: Sale-Leaseback Transaction: CopperPoint Mutual Insurance Company
Sale - Leaseback Transaction: CopperPoint Mutual Insurance Company 18 Type: Office Size: 252,400 square feet Cost: $53.2 million Lease Term: 17 years Cap Rate: 7.12% Escalations: 3.0% annually GAAP Rent: 9.1% of cost CopperPoint Mutual Insurance Company Phoenix, Arizona
Slide 19: Build-to-Suit Transaction: Easton-Bell Sports
Build - to - Suit Transaction: Easton - Bell Sports Type: Industrial Size: 813,000 square feet Cost: $42.6 million Lease Term: 20 years Cap Rate: 8.0% Escalations: 2% annually GAAP Rent: 9.7% of cost Expected Completion Date: 4Q 13 19 Easton - Bell Sports Rantoul, Illinois
Slide 20: Build-to-Suit Transaction: FedEx
Build - to - Suit Transaction: FedEx Type: Industrial Size: 143,000 square feet Cost: $46.7 million Lease Term: 15 years Cap Rate: 8.5% Escalations: 7.5% every five years GAAP Rent: 9.2% of cost Expected Completion Date : 1Q 13 20 FedEx Ground Package System, Inc. Long Island City, New York
Slide 21: Strong Balance Sheet
Strong Balance Sheet ak 21
Slide 22: Current Capital Structure
Current Capital Structure 22 (1) Balance sheet data as of December 31, 2012 includes OP Units and reflects a common share price of $11.56 at 3/4/13 and the im pac t of the conversion of $35.0 million of Convertible Guaranteed Notes for 5.0 million common shares in 1Q 13 plus the retirement of secure
Slide 23: Deleveraging Program A Success
Deleveraging Program A Success 23 Commenced in January 2008 Consolidated leverage reduced by $ 1.2 billion 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 Debt $1.849 B $1.673 B $ 1.793 B $ 2.078 B $ 2.389 B $ 3.048 B Market Equity Preferred Shares $0.252 B $0.322 B $ 0.339 B $ 0.339 B $ 0.364
Slide 24: Refinancing Opportunity
Refinancing Opportunity ak 24
Slide 25: Refinancing To Improve Cash Flow
Refinancing To Improve Cash Flow 25 We believe LXP has a significant opportunity to reduce debt service payments 2013 - 2015 balloon maturities total $640.6 million at a weighted - average rate of 5.6% with a current pay rate of 8.7% 2013 - 2015 Potential Debt Service Savings Interest Rate Annual Sa
Slide 26: Compelling Value Investment
Compelling Value Investment 26
Slide 27: Compelling Value Investment
Compelling Value Investment LXP offers a compelling investment proposition with attractive value Property Type (1) Industrial, 15.1% Multi - tenant, 9.0% Office, 50.0% Long - term lease, 23.1% 27 (1) Based on rent as of 12/31/12. (2) Source: KeyBank as of March 1, 2013 and Net Lease REITs comprise t
Slide 28: Experienced Management
Experienced Management ak 28
Slide 29: Our Strategies Are Working
Our Strategies Are Working 29 LXP has outperformed the market and management believes LXP has numerous opportunities to continue to create value for shareholders Source: SNL Financial LLC 0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0% LXP Total Return vs. Indices LXP RMS Russell 2000 S&P 500
Slide 30: Ten Reasons To Own LXP
Ten Reasons To Own LXP 5.2% Dividend Yield (1) 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 Experienced Management 30 (1) Based
Slide 31: Lexington Realty Trust Winter 2013
Winter 2013 LEXINGTON REALTY TRUST. A real estate investment trust specializing in single tenant commercial properties.
Lexington Realty Trust — Investor Presentation (March 2013) on 6ix