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Lexington Posts $72M Loss, Pares Down Debt

NEW YORK CITY-The REIT finishes Q1 with 92% occupancy and credits the stability of net leases for strong cash flow.

By Paul Bubny | Updated on May 07, 2009

NEW YORK CITY-Lexington Realty Trust took a net loss of $71.6 million for the first quarter, but also pared its overall debt, according to financial results reported Thursday. For the same time period in 2008, the REIT’s net loss was $1.4 million.

In a statement, T. Wilson Eglin, Lexington’s president and CEO, says that during Q1 the company made “great progress with respect to strengthening its balance sheet. We successfully refinanced the vast majority of our 2009 debt maturities and reduced our overall debt by $52.6 million. In a challenging operating environment, we are pleased to have ended the quarter with 92% occupancy and believe that our real estate portfolio continues to produce strong cash flows supported by a diverse asset base and the stability of net leases. We are also pleased to announce that our credit facility has been increased by $40 million to a total of $290 million.”

The $52.6-million debt reduction included $22.5 million of 5.45% exchangeable notes repurchased at a 34.1% discount, according to an SEC filing. After Q1 ended, Lexington repurchased an additional $14 million original principal amount of these notes at a 25.5% discount, leaving $174.5 million original principal amount outstanding.

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