<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition period from ____________ to ____________
Commission File Number 1-12386
LEXINGTON CORPORATE PROPERTIES, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Maryland 13-3717318
_______________________________________ _______________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
355 Lexington Avenue
New York, NY 10017
_______________________________________ _______________________
(Address of principal executive offices) (Zip Code)
(212) 692-7260
______________________________________________________
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes x No
--------- --------
Indicate the number of shares outstanding of each of the registrant's classes
of common stock, as of the latest practicable date: 9,369,499 shares of common
stock, par value $.0001 per share on April 30, 1996.
<PAGE> 2
PART 1. - FINANCIAL INFORMATION
-------------------------------
ITEM 1. FINANCIAL STATEMENTS
----------------------------
LEXINGTON CORPORATE PROPERTIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 1996 (Unaudited) and December 31, 1995
ASSETS
------
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Real estate, at cost: (notes 4 and 5)
Buildings and building improvements $196,524,707 $196,431,021
Land 34,287,129 34,287,129
Land improvements 2,830,339 2,830,339
Fixtures and equipment 10,674,288 10,674,288
____________ ____________
244,316,463 244,222,777
Less: accumulated depreciation 45,280,788 43,715,721
____________ ____________
199,035,675 200,507,056
Cash 2,510,838 2,588,515
Deferred expenses (net of accumulated amortization
of $2,488,003 in 1996 and $2,343,262 in 1995) (note 2) 3,629,447 3,753,553
Rent receivable (note 2) 7,656,833 7,701,420
Restricted cash 3,879,705 3,464,554
Investment in partnerships 170,202 170,127
Escrow deposits (note 4) 104,400 654,400
Other assets 3,163,087 2,376,611
____________ ____________
$220,150,187 $221,216,236
============ ============
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<S> <C> <C>
Mortgage notes payable (notes 3 and 5) $120,121,263 $121,249,633
Subordinated notes payable, including accrued interest 1,936,435 1,973,241
Accrued interest payable 350,057 440,788
Accounts payable and other liabilities 1,164,475 558,617
Minority interests, net 483,865 475,846
____________ ____________
124,056,095 124,698,125
____________ ____________
Stockholders' equity:
Preferred stock, par value $0.0001 per share;
authorized 10,000,000 shares, issued none - -
Excess stock, par value $0.0001 per share;
authorized 10,200,000 shares, issued none - -
Common stock, par value $0.0001 per share;
authorized 20,000,000 shares, 9,369,499
and 9,331,982 shares issued and outstanding
in 1996 and 1995, respectively 937 933
Additional paid in capital 96,093,155 96,517,178
____________ ____________
Total stockholders' equity 96,094,092 96,518,111
____________ ____________
$220,150,187 $221,216,236
============ ============
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 3
LEXINGTON CORPORATE PROPERTIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Quarters ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended
March 31, March 31,
1996 1995
_____________ _____________
<S> <C> <C>
Revenues:
Rental (notes 2, 3 and 6) $ 6,657,359 $ 5,779,361
Interest and other 141,997 83,158
_____________ _____________
6,799,356 5,862,519
_____________ _____________
Expenses:
Interest expense 2,558,827 2,743,575
Depreciation 1,565,067 1,459,633
Amortization of deferred expenses 146,596 86,422
General and administrative expenses 664,947 534,452
Property operating expenses 136,795 143,036
_____________ ______________
5,072,232 4,967,118
_____________ ______________
Income before gain on sale of properties,
lease termination proceeds, and minority interests 1,727,124 895,401
Gain on sale of properties (note 3) - 1,514,400
Proceeds from lease termination (note 3) - 1,600,000
_____________ ______________
Income before minority interests 1,727,124 4,009,801
Minority interests 53,679 70,172
_____________ ______________
Net income $ 1,673,445 $ 3,939,629
============= ==============
Net income per share $ 0.18 $ 0.43
============= ==============
Weighted average shares outstanding 9,357,527 9,263,702
============= ==============
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 4
LEXINGTON CORPORATE PROPERTIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Quarters ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended
March 31, March 31,
1996 1995
_____________ _____________
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,673,445 $ 3,939,629
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 1,711,663 1,546,055
Gain on sale of properties - (1,514,400)
Write-off of deferred rent receivable - 678,078
Decrease in rent receivable 44,587 183,967
Increase (decrease) in accounts payable and other liabilities 605,858 (416,600)
(Decrease) increase in accrued interest payable (127,537) 109,371
Accrued interest added to principal balance
of mortgage notes - 20,332
Minority interests 53,679 70,172
Amortization of discount on mortgage notes payable 2,191 -
Income from unconsolidated partnerships (1,930) -
Increase in other assets (695,564) (123,224)
_____________ _____________
Total adjustments 1,592,947 553,751
_____________ _____________
Net cash provided by operating activities 3,266,392 4,493,380
_____________ _____________
Cash flows from investing activities:
Additions to real estate assets (93,686) -
Net proceeds from sale of properties - 16,347,058
_____________ _____________
Net cash (used in)
provided by investing activities (93,686) 16,347,058
_____________ _____________
Cash flows from financing activities:
Dividends to stockholders (2,528,621) (2,502,658)
Decrease (increase) in escrow deposits 550,000 (9,845,035)
Repayments on mortgage notes (4,020,561) (7,215,104)
Proceeds of mortgage notes payable 2,890,000 -
Increase in deferred expenses (111,547) -
Common stock issued 431,157 170,922
Common stock repurchased - (447,803)
Increase in restricted cash (415,151) -
Cash distributions to minority interests (45,660) (45,660)
_____________ _____________
Net cash used in financing activities (3,250,383) (19,885,338)
_____________ _____________
(Decrease) increase in cash (77,677) 955,100
Cash at beginning of period 2,588,515 3,096,028
_____________ _____________
Cash at end of period $2,510,838 $ 4,051,128
============= =============
(Continued)
</TABLE>
<PAGE> 5
LEXINGTON CORPORATE PROPERTIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, Continued
Quarters ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended
March 31, March 31,
1996 1995
------------- -------------
<S> <C> <C>
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 2,684,173 $ 2,613,872
============= =============
Cash paid during the period for taxes $ 9,064 $ 49,154
============= =============
Supplemental disclosure of non-cash operating activities:
Deferred expenses reclassified to other assets $ 90,912 $ -
============= =============
See accompanying notes to unaudited consolidated financial statements.
</TABLE>
<PAGE> 6
LEXINGTON CORPORATE PROPERTIES, INC. AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
(1) The Company
-----------
Lexington Corporate Properties, Inc. (the "Company") is a Maryland
corporation which was organized to combine and continue to expand the
business of two affiliated Delaware limited partnerships (the
"Partnerships") which own, operate and manage a diverse portfolio of
real properties. The real properties owned by the Company are subject to
triple net leases to corporate tenants. References herein to the
"Company" shall include references to the Company, the Partnerships and
the Company's predecessor, Lexington Corporate Properties, Inc., a
Delaware corporation which was organized in October 1993 and was merged
into the Company on June 27, 1994.
The unaudited financial statements reflect all adjustments which are, in
the opinion of management, necessary to a fair statement of the results
for the interim periods presented. For a more complete understanding of
the Company's operations and financial position, reference is made to
the financial statements previously filed with the Securities and
Exchange Commission with the Company's Annual Report on Form 10-K for
the year ended December 31, 1995.
(2) Summary of Significant Accounting Policies
------------------------------------------
The Company's financial statements are prepared on the accrual basis of
accounting for financial and Federal income tax reporting purposes. Real
estate, which is held for investment, is carried at cost less
accumulated depreciation unless declines in values of the properties are
considered other than temporary. Depreciation for financial reporting
purposes is determined by the straight-line method over the estimated
economic useful lives of the properties. The Company depreciates
buildings and building improvements over a 40-year period, land
improvements over a 20-year period, and fixtures and equipment over a
12-year period. Depreciation for tax purposes is determined in
accordance with the Modified Accelerated Cost Recovery System.
The financial statements reflect the accounts of the Company, Lepercq
Corporate Income Fund L.P. ("LCIF"), Lepercq Corporate Income Fund II
L.P. ("LCIF II"), Union Hills Associates and Union Hills Associates II
(collectively, "Union Hills"), F.M. Associates and F.M. Associates II
(collectively, "F.M. Associates"), North Tampa Associates, Yankee Drive
Associates, LXP Funding Corp. ("Funding"), LXP Canton, Inc. ("Canton"),
LXP I, L.P. ("LXP I") and LXP II, L.P. ("LXP II"), on a consolidated
basis. LCIF owns an aggregate 99.99% general partnership interest in
each of Union Hills and F.M. Associates. LCIF II owns an aggregate
99.9999% general partnership interest in each of North Tampa Associates
and Yankee Drive Associates. Funding and Canton are both wholly-owned
subsidiaries of the Company. LCIF and LCIF II own 99% limited
partnership interests in LXP I and LXP II, respectively. LXP I, Inc. and
LXP II, Inc., wholly owned subsidiaries of the Company, own 1% general
partnership interests in LXP I and LXP II, respectively. In addition,
partnerships in which the Company has an interest of greater than 50%
are accounted for on a consolidated basis and partnership interests of
less than 50% are accounted for under the equity method.
The Company has determined that the leases relating to the properties
owned by the Company are operating leases. Rental revenue is recognized
on a straight-line basis over the minimum lease terms. The Company's
rent receivable primarily consists of the amounts of the excess of
rental revenues recognized on a straight-line basis over the annual
rents collectible under the leases.
<PAGE> 7
Deferred expenses are composed principally of debt placement, mortgage
loan and other loan fees, and are amortized using the straight-line
method, which approximates the interest method, over the terms of the
mortgages.
Fees incurred in connection with properties acquired have been
capitalized as a cost of the properties upon acquisition.
The Company has qualified as a real estate investment trust ("REIT")
under the Internal Revenue Code of 1986, as amended (the "Code"). A real
estate investment trust is generally not subject to Federal income tax
on that portion of its real estate investment trust taxable income
("Taxable Income") which is distributed to its stockholders, provided
that at least 95% of Taxable Income is distributed. No provision for
Federal income taxes has been made in the consolidated financial
statements, as the Company believes it is in compliance with the Code
and has distributed all of its Taxable Income.
The Company and its consolidated subsidiaries are required to file tax
returns in various states. States vary with respect to the taxation of
REITs. Some states have a tax based on capital within the state; other
states, not recognizing the REIT dividends paid deduction, have a tax
based on apportioned income as it would any corporation. There are
states that tax under both methods as well as states that have no
additional taxes other than the minimum state tax requirement. The
provision for state taxes is included in general and administrative
expenses in the consolidated statements of income.
Net income per share is computed on the basis of the weighted average
shares of common stock outstanding. The weighted average number of
shares outstanding during the quarters ended March 31, 1996 and 1995 was
9,357,527 and 9,263,702, respectively.
Certain amounts included in the prior years' financial statements have
been reclassified to conform with the current year's presentation.
The Financial Accounting Standards Board's Statement of Financial
Accounting Standards ("SFAS") No. 107, "Disclosures about Fair Value of
Financial Instruments," defines fair value of a financial instrument as
the amount at which the instrument could be exchanged in a current
transaction between willing parties. The Company's cash, mortgage notes
payable, subordinated notes payable, and accounts payable and other
liabilities are carried at cost which approximates fair value.
On January 1, 1996, the Company adopted SFAS No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of." This SFAS establishes the recognition and measurement
criteria for impairment losses on long-lived assets, certain
identifiable intangibles and goodwill related to those assets to be held
and used and for long-lived assets and certain identifiable intangibles
to be disposed of. This SFAS requires that an impairment loss be
recognized when events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. The adoption of this
SFAS had no effect on the Company's results of operations or its
financial condition for the quarter ended March 31, 1996.
On January 1, 1996, the Company adopted SFAS No. 123, "Accounting for
Stock-Based Compensation." This SFAS encourages the adoption of a new
accounting method for employee stock-based compensation plans and
applies to all arrangements whereby an employee receives stock or other
equity instruments of an employer based on the price of the employer's
stock. These arrangements include restricted stock, stock options and
stock appreciation rights. The SFAS also permits the retention of the
Company's current method of accounting for these plans under "Accounting
Principles Board" Opinion No. 25. The Company will continue its current
method of accounting for stock-based compensation and therefore, pro
forma disclosures in footnotes will be provided on an annual basis with
the Company's Annual Report on Form 10-K.
Management of the Company has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure
of contingent assets and liabilities to prepare these financial
statements in conformity with generally accepted accounting principles.
Actual results could differ from those estimates.
<PAGE> 8
(3) Sale of Properties
------------------
On March 15, 1995, the Company sold a portion of the land on the
Jacksonville, Florida property to the tenant of the property, receiving
proceeds of $31,959 and realizing a gain of approximately $15,000.
On March 31, 1995, the Company sold the Eagan, Minnesota Property for
$16,550,000, realizing a gain of approximately $1.5 million. The
Property had been encumbered by a mortgage in the amount of
approximately $6,562,000 which mortgage was satisfied from the sales
proceeds. Additionally, the Company received lease termination proceeds
of $1,600,000 in connection with this transaction. Approximately
$9,845,000 of the sales proceeds (plus $69,000 of interest earned),
which had been held in an escrow account, was later used along with
excess proceeds of the "REMIC" financing (which was completed in May
1995) to repay the mortgage on the Glendale, Arizona Property. The
Company also incurred a write-off of deferred rent receivable in the
amount of $678,078 relating to the sale of this property, which was
recorded as a reduction of rental revenue on the consolidated statements
of income.
(4) Escrow Deposits
---------------
On December 7, 1995, the Company, through its wholly owned subsidiary,
LXP Canton, Inc. ("Canton"), acquired a fitness center in Canton, Ohio.
The purchase price was $4,100,000 with such consideration consisting of
100,000 shares of Common Stock of the Company and $3,012,500 in cash. As
a condition relating to the issuance of the Common Stock, the Company
was required to register the stock within 90 days of the closing, or it
would have been obligated to repurchase all of the Common Stock at
$10.875 per share.
To secure the obligation of the Company to effect the registration of
the Common Stock or to repurchase the Common Stock, the Company was
required at the closing to deposit $550,000 into an escrow account. On
March 6, 1996, the registration of the Common Stock was effected,
resulting in a return of the escrow monies to the Company.
(5) Mortgage Notes Payable
----------------------
On February 26, 1996, first mortgage financing of $2.89 million was
obtained, secured by the Canton, Ohio Property, which was acquired on
December 7, 1995. The loan has a thirteen year term to maturity and
bears interest at 9.49% per annum.
On February 29, 1996, the Company used approximately $2.87 million of
the Canton, Ohio Property mortgage proceeds and approximately $630,000
in cash to reduce the amount outstanding under the revolving credit
facility on that date by $3.5 million, from $14.6 million to $11.1
million.
(6) Leases
------
Minimum future rents receivable under non-cancelable operating leases as
of March 31, 1996 are as follows:
Year ending
December 31
-----------
1996 (9 months) $ 19,027,340
1997 23,836,863
1998 22,010,939
1999 20,382,059
2000 18,404,646
2001 17,447,875
Thereafter 78,724,167
------------
$199,833,889
============
<PAGE> 9
(7) Subsequent Events
-----------------
On April 16, 1996, the Company declared a dividend of $.27 per share to
stockholders of record on April 30, 1996 to be paid on May 15, 1996.
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
------------------------------------------------
General
- - -------
As of March 31, 1996, the Company was the indirect or direct owner of
twenty-eight real estate properties (or interests therein) (the "Properties")
triple net leased to corporations and located in seventeen states, and owned
minority interests in two additional triple net leased properties. The
Properties contain an aggregate of 4,211,850 square feet of net rentable space.
Each Property is subject to a single tenant triple net lease, which is
generally characterized as a lease in which each tenant generally pays all or
substantially all of the cost and cost increases for real estate taxes, capital
expenditures, insurance and ordinary maintenance of the Property.
Liquidity and Capital Resources
- - -------------------------------
The Company paid a dividend of $.27 per share to stockholders for each of the
calendar quarters of 1994 and 1995. On April 16, 1996, the Company declared a
dividend for the first quarter of 1996 of $.27 per share to stockholders of
record as of April 30, 1996 to be paid on May 15, 1996. The Company's
annualized dividend rate is currently $1.08 per share.
The Company's principal sources of liquidity are revenues generated from the
Properties, interest on cash balances and amounts available under its revolving
credit facility. For the quarter ended March 31, 1996, leases on the Properties
generated approximately $6,657,000 in revenue compared to $6,457,000 for the
same period in 1995 (before the write-off of deferred rent receivable on the
Eagan Property resulting from the sale on March 31, 1995, which reduced the
reported rental revenue to approximately $5,779,000).
The Company's revolving credit facility, in a maximum committed amount of $25
million, bears interest at 1.5% over LIBOR and matures on November 14, 1998. On
such date, under certain conditions, the facility may be converted at the
Company's option to a five-year fully-amortizing term loan. On February 26,
1996, first mortgage financing of $2.89 million was obtained, secured by the
Canton, Ohio Property. On February 29, 1996, the Company used approximately
$2.87 million of the Canton, Ohio mortgage proceeds and approximately $630,000
in cash to reduce the amount outstanding under the Company's revolving credit
facility on that date by $3.5 million to $11.1 million. As the revolving credit
facility is collateralized by two of the Company's Properties, the current
outstanding principal amount of $11.1 million is included in the balance of
mortgage notes payable as of March 31, 1996.
The Company's principal liquidity needs are the payment of interest and
principal on outstanding mortgage debt. As of March 31, 1996, a total of
twenty-six Properties were subject to outstanding mortgages which had an
aggregate principal amount (including accrued interest in the amount of
$350,057) of approximately $120,471,000. The weighted average interest rate on
the Company's debt on that date was 8.0%. Approximate principal amounts of
mortgages are due as follows: $1,747,000 in 1996 (9 months); $2,549,000 in
1997; $12,633,000 in 1998; $8,188,000 in 1999; $10,531,000 in 2000; $2,233,000
in 2001. Included in the amount for 1998 are balloon payments for the Tampa
Property - $4,289,775; and the North Tampa Property - $5,717,444. Included in
the amount for 1999 is a balloon payment for the Phoenix Property - $5,562,818.
Included in the amount for 2000 is a balloon payment for the Marlborough
Property - $7,965,712. Balloon payments in the aggregate of $60 million on the
notes issued in the REMIC financing, are due in 2005. In addition, any amounts
outstanding under the revolving credit facility on November 14, 1998 would be
due and owing on such date, except that, under certain conditions, the Company
has a right to convert the credit facility to a five-year fully-amortizing loan.
The ability of the Company to make such balloon payments will depend upon its
ability to refinance the mortgage related thereto, sell the related property or
have available amounts under any credit facilities sufficient to satisfy such
balloon payments. The ability of the Company to accomplish such goals will be
affected by numerous
<PAGE> 11
economic factors affecting the real estate industry, including the available
mortgage rates at the time, the Company's equity in the mortgaged properties,
the financial condition of the Company, the operating history of the
mortgaged properties, the then current tax laws and the general national,
regional and local economic conditions at the time.
Because the Company's tenants bear all or substantially all of the cost of
property maintenance and capital improvements, the Company does not anticipate
significant needs for cash for property maintenance or repairs. The Company
generally funds property expansions with additional secured borrowings, the
repayment of which are funded out of rental increases under the leases covering
the expanded properties.
On November 15, 1994, the Company announced that its Board of Directors had
authorized the Company to repurchase, from time to time, up to 1,000,000 shares
of its outstanding common stock, depending on market conditions and other
factors. As of December 31, 1995, the Company had repurchased 172,100 shares at
an average price of approximately $9.80 per share. No additional shares were
repurchased during the quarter ended March 31, 1996.
Results of Operations
- - ---------------------
Quarter ended March 31, 1996 compared to quarter ended March 31, 1995
- - ---------------------------------------------------------------------
Total Revenues. Total revenues for the quarter ended March 31, 1996 were
$6,799,356, an increase of $936,837 from the same period in 1995. The increase
in revenues was attributable to increases in rental revenue and interest and
other revenue of $877,998 and $58,839, respectively. Rental revenue
increased primarily due to revenues from properties acquired in August and
December 1995, and a non-recurring write-off of deferred rent receivable of
approximately $678,000 relating to the sale of the Eagan Property on March 31,
1995. The increase in interest and other revenue was attributable to higher
interest-bearing cash balances in 1996.
Total Expenses. Total expenses for the quarter ended March 31, 1996 were
$5,072,232, an increase of $105,114 from the same period in 1995. The increase
was attributable to increases in general and administrative expenses,
depreciation and amortization, offset by a decrease in interest expense.
General and administrative expenses for the quarter ended March 31, 1996, in the
amount of $664,947, increased $130,495 from the same period in 1995 primarily
due to an expense of $147,066 relating to performance-based stock compensation
incurred in 1996. Depreciation expense for the quarter ended March 31, 1996, in
the amount of $1,565,067, increased $105,434 from the same period in 1995
primarily due to properties acquired in August and December 1995. Amortization
expense for the quarter ended March 31, 1996, in the amount of $146,596,
increased $60,174 from the same period in 1995 due to an increase in
amortizable deferred loan expenses incurred in connection with the REMIC and
revolving credit facility financings in 1995.
Interest expense for the quarter ended March 31, 1996, in the amount of
$2,558,827, decreased $184,748 from the same period in 1995 due to debt
refinancing in 1995.
Net Income. Net income for the quarter ended March 31, 1996 was $1,673,445, a
decrease of $2,266,184 from the same period in 1995. The decrease is primarily
attributable to non-recurring items in 1995 relating to the sale of the Eagan
Property on March 31, 1995, consisting of a gain on the sale of approximately
$1.5 million and proceeds from lease termination of $1.6 million, offset by the
related write-off of deferred rent receivable of approximately $678,000,
discussed above.
Funds from Operations
- - ---------------------
The Company considers funds from operations to be an appropriate measure of the
performance of an equity REIT. Funds from operations is defined by the National
Association of Real Estate Investment Trusts as "net income
<PAGE> 12
(computed in accordance with generally accepted accounting principles),
excluding gains (or losses) from debt restructuring and sales of property, plus
depreciation and after adjustments for unconsolidated partnerships and joint
ventures." Funds from operations should not be considered as an alternative to
net income as an indicator of operating performance or to cash flows as a
measure of liquidity as defined by generally accepted accounting principles,
and is not necessarily indicative of funds available to fund cash needs.
The Company's funds from operations totalled $3,236,582 and $3,884,862 for the
quarters ended March 31, 1996 and 1995, respectively. Funds from operations for
the quarter ended March 31, 1995 includes the non-recurring effects of the
lease termination proceeds of $1.6 million relating to the sale of the Eagan
Property on March 31, 1995, offset by the related write-off of deferred rent
receivable of approximately $678,000, previously discussed above. The Company's
quarterly dividend of $.27 per share amounted to approximately 78% of the
Company's funds from operations for the quarter ended March 31, 1996.
<PAGE> 13
PART II - OTHER INFORMATION
<TABLE>
<S> <C>
ITEM 1. Legal Proceedings - not applicable.
ITEM 2. Changes in Securities - not applicable.
ITEM 3. Defaults under the Senior Securities - not applicable.
ITEM 4. Submission of Matters to a Vote of Security Holders - not applicable.
ITEM 5. Other Information - not applicable.
ITEM 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit No. Exhibit
----------- -------
27 Financial Data Schedule
(b) Reports on Form 8-K filed during the quarter ended March 31, 1996.
None.
</TABLE>
<PAGE> 14
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Lexington Corporate Properties, Inc.
5/15 /s/ E. Robert Roskind
Date:_____________________ By:___________________________________________
E. Robert Roskind
Chairman and Co-Chief Executive Officer
5/15 /s/ Paul R. Wood
Date:_____________________ By:___________________________________________
Paul R. Wood
Vice President and Chief Accounting Officer
<PAGE> 15
EXHIBIT INDEX
Exhibit No. Description
- - ---------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
INTERIM CONSOLIDATED STATEMENT OF INCOME FOR THE QUARTER ENDED MARCH 31, 1996
AND THE CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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0
0
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