"Demand for income-producing properties such as those in our portfolio continues to be exceptionally strong," said T. Wilson Eglin, the firm's chief executive officer. "While this has made it difficult to acquire properties that meet our yield parameters, it also means that we have opportunities to sell properties on advantageous terms as evidenced by total gains of $13.3 million in 2005. It's cyclical and if the opportunities are there… ."

Later in the year, the firm has the intention of having an initial public offering for its recently formed Lexington Strategic Asset Corp. Since its inception, the group has raised $61.7 million in cash and contributed four properties, including mortgages, for a 32.3% interest.

In the fourth quarter Lexington and its affiliated joint venture programs acquired five properties for an aggregate purchase price of approximately $75.9 million. Two of the three joint venture properties were acquired LSAC for approximately $25 million. Lexington's 2005 acquisition volume was 43 properties for an aggregate purchase price of approximately $1.1 billion. Eighteen--with an aggregate purchase price of approximately $573.1 million--were acquired by the joint ventures.

For the 12 months ended Dec. 31, 2005, FFO were $104.2 million, or $1.70 per diluted common share/unit, after $3 million in net debt satisfaction gains. Rental revenues from continuing operations totaled $180.9 million, compared to rental revenues of $133.1 million for the same period last year.

"During 2006, we expect to continue to execute Lexington's business plan and the business plan of its joint venture programs, including Lexington Strategic Asset Corp," said Eglin. "We believe that this will result in improved long-term growth potential for our portfolio while enhancing net asset value per share."

Instant Insights /

Lexington Plans Disposition of Non-Core Assets

Related Stories

Recommended For You