Lexington Realty Trust (NYSE:LXP) Appeals Shareholders With Upward Revision In FFO Guidance


Among the latest updates that came in from Lexington Realty Trust (NYSE:LXP) includes its third quarter performance for the period ended on September 30, 2015. The company’s total gross revenues came in at $105.4 million, denoting a 1.1% decline from $106.6 million revenue in Q3 2014. Also, the reported number disappointed the Street estimates of $106.60 million.

Earnings highlights

In the third quarter, Lexington posted earnings to the tune of $66.9 million or $0.27 per share, which surpassed the Street’s estimates by $0.01 per share. However, the reported number came lower than the company’s earnings of $68.7 million or $0.28 per share posted in the last year’s same quarter.

The Board of Directors of the company approved quarterly dividend to be payable to the shareholders at the rate of $0.17 per share. The declared dividend is already paid out to the shareholders on October 15, 2015. Net loss to the shareholders in the third quarter was $7.6 million or ($0.03) per share, which compares to the net income of $38.7 million or $0.17 per share in the third quarter of 2014.

2015 Guidance

Lexington further updated that it had entered into a new unsecured credit agreement of $905 million as on September 1, 2015. The new agreement will now replace the company’s existing term loans and revolving credit facility. During July of this year, the company had declared repurchase of 10 million common shares. Lexington highlighted that it had concluded repurchase of nearly 1,594,644 shares of the total 10 million shares at an average stock price of $8.34 per share.

Apart from this, the company has also repaid $0.4 million worth of Guaranteed Notes, which are due to mature in 2030. The repayment has reduced the outstanding due balance to $12.4 million, stated Lexington. The company has guided its FFO in the range of $1.05 to $1.07 for the year 2015, which represents an upward revision from earlier FFO forecast range of $1.02 to $1.06.

The stock price of Lexington Realty Trust (NYSE:LXP) traded down by nearly 3% to $8.21 during the earlier day’s trading session.

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