Lexington Realty Trust posts Q4 funds-from-operations loss of US$17M, largely due to reduced values in some of its real estate holdings

Cindy Allen

NEW YORK , February 25, 2010 (Associated Press) –
Lexington Realty Trust on Wednesday posted a funds-from-operations loss for its fourth quarter, largely due to reductions in the value of some of its real estate holdings.

The real estate investment trust posted an FFO loss of $17 million, or 13 cents per share, reversing a positive FFO of $37.7 million, or 34 cents per share, for the 2008 fourth quarter.

Adjusted for $60.8 in impairment charges on real estate and several other items, Lexington Trust said FFO was $32.5 million, or 25 cents per share, in the latest quarter.

FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, back to the company's net income or loss.

Revenue slipped 9 percent to $90.1 million, from $98.6 million in the prior-year period.

For the quarter, Lexington posted a net loss after paying preferred dividends of $52.2 million, or 43 cents per share, compared with a loss for the 2008 fourth quarter of $20.4 million, or 23 cents per share. There were 39 percent more shares outstanding in the 2009 quarter, which has the effect of diluting the per-share results.

The company, which focuses mainly on single-occupancy commercial buildings, said its overall portfolio occupancy was approximately 92 percent at the end of the year.

For the full year 2009, Lexington posted an FFO loss of $56 million, or 46 cents per share, versus positive FFO of $196.5 million, or $1.81 per share, for 2008.

The net loss for the year, after paying preferred dividends, was $242.4 million, or $2.22 per share. In 2008, the net loss was $18.5 million, or 28 cents per share.

President and CEO T. Wilson Eglin said the REIT will focus in 2010, on selling its non-core retail and multi-tenant properties and further paying down debt.

For 2010, Lexington said it expects FFO in the range of 93 cents to 97 cents per share.

Lexington ended Wednesday unchanged at $6.05. The stock has changed hands between $1.93 and $6.73 in the past 52 weeks.

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