Wells Fargo Securities is acting as sole underwriter for the offering. The underwriter has been granted a 30-day option to purchase up to an additional 1.425 million shares to cover over-allotments, if any, according to a release.
Earlier this month, Lexington and Houston-based Means Knauss Partners announced an asset-management joint venture in which Means Knauss will perform property management and oversee leasing and development for approximately 12 million square feet of Lexington's 45.9-million-square-foot portfolio of single-tenant properties. Phase one of the JV covers properties in 48 cities in 19 states.
In its fourth-quarter 2009 earnings report issued late last month, Lexington said it generated funds from operations of $32.5 million, or 25 cents per share. The REIT said it reduced its overall debt by $72.6 million, arranged 20 leases totaling 1.1 million square feet and raised about $35.7 million through property and joint venture investment sales.
T. Wilson Eglin, Lexington's president and CEO, notes in a statement that the company's portfolio has an overall occupancy rate of 92% as of Dec. 31, 2009. "We have already retired an additional $116.1 million in debt in the first quarter of 2010, which would have matured in the next two years, primarily by utilizing the proceeds of our successful offering of 6% convertible notes," Eglin says.
He adds that during the year, "we expect to remain focused on selling our non-core retail and multi-tenant properties and further deleveraging our balance sheet while being opportunistic with respect to new investments."
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