Lexington Poised to Become 'More Active'

NEW YORK CITY-Lexington Realty Trust expects to become “a more active acquirer of properties” in the remaining months of 2008, mainly through joint ventures. “We believe our JV capital and our own financial resources put us in a strong position relative to our competition,” said T. Wilson Eglin, president and CEO of the locally based REIT, during a conference call Thursday.

One of Lexington’s JV partners, Inland American Real Estate Trust Inc., announced a $100-million investment in Concord Debt Holdings, itself a JV of Lexington and Boston-based Winthrop Realty Trust, to make new investments. “This is a very positive development, as it provides Concord with growth capital while allowing Lexington to reduce its capital investment to $100 million over time as loans in that portfolio mature,” Eglin said in discussing his company’s Q2 results.

As a result of Chicago-based Inland’s investment in Concord, “we’re executing on our strategy of enhancing our return on equity in Concord while lowering our exposure,” Eglin said. Inland and Lexington entered into a $1.4-billion JV last August and Q2 ’08 saw the final closing on the initial assets for Lexington’s co-investment program with Inland.