Lexington Realty Trust (NYSE:LXP) Q3 2016 Earnings Conference Call - Final Transcript

Nov 03, 2016 • 08:30 am ET


Lexington Realty Trust (NYSE:LXP) Q3 2016 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Lexington Realty Trust Third Quarter Earnings Conference Call and Webcast. [Operator Instructions].

I would now like to turn the conference over to Heather Gentry. Please go ahead.

Heather Gentry

Thank you, operator. Hi and welcome to the Lexington Realty Trust third quarter 2016 conference call. The earnings press release was distributed this morning and the release and supplemental disclosure package will be furnished on a Form 8-K. In the press release and supplemental disclosure package, Lexington has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. If you did not receive a copy, these documents are available on our website at www.lxp.com in the Investors section. Additionally, we are hosting a live webcast of today's call, which you can access in the same section.

At this time, we would like to inform you that certain statements made during this conference call which are not historical may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Lexington believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Lexington can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today's press release and from time-to-time in Lexington's filings with the SEC and include the successful consummation of any lease, acquisitions, build-to-suit financing, disposition or other transaction or the final terms of any such transaction. Except as required by law, Lexington does not undertake a duty to update any forward-looking statements.

References to adjusted company FFO refer to adjusted company FFO available to all equity holders and unit holders on a fully diluted basis. Operating performance measures of an individual investment are not presented or intended to be viewed as liquidity or performance measures that present a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. Joining me today to discuss Lexington's third quarter 2016 results are Will Eglin, Chief Executive Officer; Pat Carroll, Chief Financial Officer and other executive members of management.

With that, I will now turn the call over to Will.

Wilson Eglin

Thanks, Heather and good morning everyone. We appreciate you joining our third quarter earnings call today. It was another productive quarter and overall we were very pleased with our operating results. Our execution has been strong as we continue to focus on the key areas of our business, namely sales, leasing, balance sheet management and acquisitions. Leasing spreads were positive for the quarter on leasing volume of 1 million square feet and disposition activity of approximately $400 million was consistent with our expectations. We substantially reduced our leverage to a net debt to adjusted EBITDA of 5.3 times compared to 6.2 times the prior quarter and we ended the quarter with more cash than usual on our balance sheet due to the timing of sales.

We purchased one industrial asset