Lxp Industrial Trust · NYSE:LXP
Lxp Industrial Trust — Lexington Realty Trust — Investor Presentation (September 2012)
37 slides from Lxp Industrial Trust's investor presentation, Sep 6, 2012
Slide 1: Fall 2012 Lexington Realty Trust
Fall 2012 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 6.3% Dividend Yield (1) Conservative Payout Ratio Advantages of Net Lease Properties Diversified Portfolio Attractive Growth Prospects Strong Balance Sheet Deleveraging To Improve Valuation Refinancing Opportunity Compelling Value Investment Management 3 (1
Slide 4: Strong Dividend Yield
Strong Dividend Yield ik
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 has capacity for dividend growth Current Dividend Yield 5 Source: LXP data based on $0.60 annual dividend and Sept
Slide 6: Conservative Payout Ratio
Conservative Payout Ratio ik
Slide 7: Conservative Payout Ratio
2012 Estimated FFO Payout Ratio 62.5% 83.1% 65.5% 64.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% LXP Net Lease REITs Off/Ind REITs All REITs Conservative Payout Ratio LXP has a conservative payout ratio relative to its peers and the REIT sector » Retained cash flow reinvested and
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 10
Slide 11: Diversified by Geography & Property Type
Diversified by Geography & Property Type 11 Office • 119 properties • 15.9 million sq ft Industrial • 59 properties • 21.6 million sq ft Retail/Specialty • 34 properties • 1.8 million sq ft Multi - Tenant • 12 properties • 2.1 million sq ft 29 1 6 7 1 1 2 3 3 2 1 1 4 6 2 4 6 14 14 14 1 1 10 6 8 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 14/19 8 3.2% A A3 Baker Hughes, Inc. 15 2 3.1% A A2 Metalsa Structural Products/ Dana Holding Corporation/ Dana Limite
Slide 13: Pro Forma Tenant Profiles – NLS Acquisition
Pro Forma Tenant Profiles – NLS Acquisition 13 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 Unr
Slide 14: Balanced Lease Rollover Schedule
Balanced Lease Rollover Schedule (1) 14 Note: Data as of 6/30/12 1. Based on rents from single - tenant office and industrial properties only compared to total portfolio. 0 1,000,000 2,000,000 3,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Office sf Industrial sf 0.0% 5.0% 10.0% 15.0% 2
Slide 15: Pro Forma Lease Expiration Schedule – NLS Acquisition
Pro Forma Lease Expiration Schedule – NLS Acquisition 15 (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 meani
Slide 16: LXP: A History of Leasing & Capital Recycling Success
LXP: A History of Leasing & Capital Recycling Success 16 - 1,000 2,000 3,000 4,000 5,000 6,000 2008 2009 2010 2011 6.2% 6.6% 4.2% 7.4% - 50 100 150 200 250 300 2008 2009 2010 2011 Square Feet Leasing Volume Volume Disposition Volume & Cap Rates ($000’s) (000’s)
Slide 17: Attractive Growth Prospects
Attractive Growth Prospects 17
Slide 18: Build-to-Suit Transaction: BIVI
Build - to - Suit Transaction: BIVI 18 Type: Office Size: 99,000 square feet Cost: $18.0 million Lease Term: 15 years Cap Rate: 9.4% Escalations: 2.25% annually GAAP Rent: 11.0% of cost Expected Completion Date : 3Q 12 Boehringer Ingelheim Vetmedica, Inc. St. Joseph, Missouri
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: Build-to-Suit Transaction: TMG Health, Inc.
Build - to - Suit Transaction: TMG Health, Inc. Type: Office Size: 150,000 square feet Cost: $20.8 million Lease Term: 15 years Cap Rate: 9.2% Escalations: 2% annually GAAP Rent: 10.6% of cost Acquisition Date: 3Q 12 21 TMG Health Jessup, Pennsylvania
Slide 22: Strong Balance Sheet
Strong Balance Sheet 22
Slide 23: Capital Structure
Capital Structure 23 Note: Includes OP Units and is based on $9.38 share price as of August 31, 2012 and June 30, 2012 balance sheet. ($ in millions) Amount Interest Rate /Coupon Debt Secured Credit Facility $35.0 L + 187.5 Term Loan Due 2019 206.0 3.76% Convertible Guaranteed Notes 115.0 6.00% Mort
Slide 24: Pro Forma Capital Structure – NLS Acquisition
Pro Forma Capital Structure – NLS Acquisition 24 (1) Including OP Units and common share price of $9.38 at 8/31/12 and balance sheet data as of June 30, 2012. Strong pro forma balance sheet ($ in millions) Amount Interest Rate /Coupon Debt NLS Revolving Credit Facility $57.5 L + 225 Secured Credit
Slide 25: Deleveraging Program A Success
Deleveraging Program A Success 25 Commenced in January 2008 Consolidated leverage reduced by $ 1.3 billion 6/30/12 12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 Debt $1.748 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.
Slide 26: Pro Forma Debt Maturity Schedule – NLS Acquisition
Pro Forma Debt Maturity Schedule – NLS Acquisition 26 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 2
Slide 27: Deleveraging To Improve Valuation
Deleveraging To Improve Valuation 27
Slide 28: Opportunity For Multiple Expansion
Opportunity For Multiple Expansion 28 Source: BofA Merrill Lynch. Note: Stock price is as of September 4, 2012. Net debt figures include pro rata share of joint venture debt. PLD DCT EGP FR FPO STAG TRNO SPG GGP MAC TCO CBL SKT GRT PEI ELS SUI EQR AVB UDR CPT ESS ACC AIV HME BRE MAA PPS CLP EDR AEC
Slide 29: Refinancing Opportunity
Refinancing Opportunity 29
Slide 30: Refinancing To Improve Cash Flow
Refinancing To Improve Cash Flow LXP has a significant opportunity to reduce debt service payments 2012 - 2015 balloon maturities total $795.6 million at a weighted - average rate of 5.6% with a pay rate of 8.4% LXP recently obtained 7 - year term financing and fixed the LIBOR on $206.0 millio
Slide 31: Refinancing To Improve Cash Flow – Pro Forma NLS Acquisition
Refinancing To Improve Cash Flow – Pro Forma NLS Acquisition 31 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
Slide 32: Compelling Value Investment
Compelling Value Investment 32
Slide 33: Compelling Value Investment
Compelling Value Investment 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 Implied Cap Rate (1) Property Type (2) Industrial, 14.8% Retail, 3.4% Multi - tenant, 7.8% Offi
Slide 34: Management
Management 34
Slide 35: Our Strategies Are Working
Our Strategies Are Working 35 LXP has outperformed the market and has numerous opportunities to continue to create value for shareholders Source: SNL Financial LLC 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% 400.0% 450.0% 500.0% 3/9/2009 8/9/2009 1/9/2010 6/9/2010 11/9/2010 4/9/2011 9/9/2
Slide 36: Ten Reasons To Own LXP
Ten Reasons To Own LXP 6.3% Dividend Yield (1) Conservative Payout Ratio Advantages of Net Leases Diversified Portfolio Attractive Growth Prospects Strong Balance Sheet Deleveraging to Drive Improve Valuation Refinancing Opportunity Compelling Value Investment Management 36 (1) B
Slide 37: Fall 2012 Lexington Realty Trust
Fall 2012 LEXINGTON REALTY TRUST. A real estate investment trust specializing in single tenant commercial properties.
Lexington Realty Trust — Investor Presentation (September 2012) on 6ix