Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period Ended Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-12386 | |
Entity Registrant Name | LEXINGTON REALTY TRUST | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-3717318 | |
Entity Address, Address Line One | One Penn Plaza, Suite 4015 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10119-4015 | |
City Area Code | 212 | |
Local Phone Number | 692-7200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 234,727,257 | |
Entity Central Index Key | 0000910108 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock | |
Trading Symbol | LXP | |
Security Exchange Name | NYSE | |
Series C | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share | |
Trading Symbol | LXPPRC | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Real estate, at cost | $ 3,112,620 | $ 3,090,134 |
Real estate - intangible assets | 405,656 | 419,612 |
Real estate, gross | 3,518,276 | 3,509,746 |
Less: accumulated depreciation and amortization | 963,432 | 954,087 |
Real estate, net | 2,554,844 | 2,555,659 |
Assets held for sale | 181,152 | 63,868 |
Operating right-of-use assets, net | 39,981 | 0 |
Cash and cash equivalents | 43,789 | 168,750 |
Restricted cash | 17,167 | 8,497 |
Investments in non-consolidated entities | 59,866 | 66,183 |
Deferred expenses, net | 20,859 | 15,937 |
Rent receivable – current | 2,025 | 3,475 |
Rent receivable – deferred | 63,439 | 58,692 |
Other assets | 13,794 | 12,779 |
Total assets | 2,996,916 | 2,953,840 |
Liabilities: | ||
Mortgages and notes payable, net | 432,354 | 570,420 |
Revolving credit facility borrowings | 55,000 | 0 |
Term loan payable, net | 298,954 | 298,733 |
Senior notes payable, net | 496,452 | 496,034 |
Trust preferred securities, net | 127,346 | 127,296 |
Dividends payable | 29,069 | 48,774 |
Liabilities held for sale | 111,755 | 386 |
Operating lease liabilities | 41,077 | 0 |
Accounts payable and other liabilities | 23,816 | 30,790 |
Accrued interest payable | 6,135 | 4,523 |
Deferred revenue - including below market leases, net | 19,021 | 20,531 |
Prepaid rent | 11,763 | 9,675 |
Total liabilities | 1,652,742 | 1,607,162 |
Commitments and contingencies | ||
Equity: | ||
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares: Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding | 94,016 | 94,016 |
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 234,870,168 and 235,008,554 shares issued and outstanding in 2019 and 2018, respectively | 23 | 24 |
Additional paid-in-capital | 2,771,213 | 2,772,855 |
Accumulated distributions in excess of net income | (1,536,752) | (1,537,100) |
Accumulated other comprehensive income | 0 | 76 |
Total shareholders’ equity | 1,328,500 | 1,329,871 |
Noncontrolling interests | 15,674 | 16,807 |
Total equity | 1,344,174 | 1,346,678 |
Total liabilities and equity | $ 2,996,916 | $ 2,953,840 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Equity: | ||
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Series C Cumulative Convertible Preferred, liquidation preference | $ 96,770 | $ 96,770 |
Series C Cumulative Convertible Preferred, shares issued (in shares) | 1,935,400 | 1,935,400 |
Series C Cumulative Convertible Preferred, shares outstanding (in shares) | 1,935,400 | 1,935,400 |
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common shares, shares issued (in shares) | 234,870,168 | 235,008,554 |
Common shares, outstanding (in shares) | 234,870,168 | 235,008,554 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gross revenues: | ||||
Rental revenue | $ 78,758 | $ 158,733 | ||
Rental revenue | $ 105,493 | $ 208,130 | ||
Total gross revenues | 80,135 | 105,673 | 161,383 | 208,494 |
Expense applicable to revenues: | ||||
Depreciation and amortization | (36,811) | (45,440) | (74,406) | (91,977) |
General and administrative | (7,334) | (7,421) | (15,861) | (16,417) |
Non-operating income | 914 | 174 | 1,395 | 536 |
Interest and amortization expense | (17,026) | (21,734) | (34,234) | (42,065) |
Debt satisfaction charges, net | 0 | 0 | (103) | 0 |
Impairment charges | (1,094) | (35,269) | (1,682) | (88,318) |
Gains on sales of properties | 15,244 | 14,432 | 36,201 | 37,206 |
Income (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entities | 24,240 | (491) | 52,338 | (14,924) |
Provision for income taxes | (430) | (379) | (867) | (882) |
Equity in earnings (losses) of non-consolidated entities | (41) | 75 | 578 | 188 |
Net income (loss) | 23,769 | (795) | 52,049 | (15,618) |
Less net income attributable to noncontrolling interests | (436) | (899) | (689) | (391) |
Net income (loss) attributable to Lexington Realty Trust shareholders | 23,333 | (1,694) | 51,360 | (16,009) |
Allocation to participating securities | (39) | (60) | (85) | (130) |
Net income (loss) attributable to common shareholders | $ 21,721 | $ (3,327) | $ 48,130 | $ (19,284) |
Net income (loss) attributable to common shareholders - per common share basic (in dollars per share) | $ 0.09 | $ (0.01) | $ 0.21 | $ (0.08) |
Weighted-average common shares outstanding – basic (in shares) | 232,635,137 | 237,312,726 | 232,587,083 | 237,690,306 |
Net income (loss) attributable to common shareholders – per common share diluted (in dollars per share) | $ 0.09 | $ (0.01) | $ 0.20 | $ (0.08) |
Weighted-average common shares outstanding – diluted (in shares) | 236,299,878 | 237,312,726 | 236,221,330 | 237,690,306 |
Series C | ||||
Expense applicable to revenues: | ||||
Dividends attributable to preferred shares – Series C | $ (1,573) | $ (1,573) | $ (3,145) | $ (3,145) |
Other Revenue | ||||
Gross revenues: | ||||
Other revenue | 1,377 | 180 | 2,650 | 364 |
Property Operating | ||||
Expense applicable to revenues: | ||||
Property operating | $ (9,788) | $ (10,906) | $ (20,355) | $ (22,383) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 23,769 | $ (795) | $ 52,049 | $ (15,618) |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on interest rate swaps, net | 0 | (213) | (76) | 33 |
Other comprehensive income (loss) | 0 | (213) | (76) | 33 |
Comprehensive income (loss) | 23,769 | (1,008) | 51,973 | (15,585) |
Comprehensive (income) attributable to noncontrolling interests | (436) | (899) | (689) | (391) |
Comprehensive income (loss) attributable to Lexington Realty Trust shareholders | $ 23,333 | $ (1,907) | $ 51,284 | $ (15,976) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Shares | Common Stock | Additional Paid-in-Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Income | Non-controlling Interests |
Beginning Balance at Dec. 31, 2017 | $ 1,340,835 | $ 94,016 | $ 24 | $ 2,818,520 | $ (1,589,724) | $ 1,065 | $ 16,934 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Redemption of noncontrolling OP units for common shares | 0 | 63 | (63) | ||||
Issuance of common shares and deferred compensation amortization, net | 3,391 | 3,391 | |||||
Repurchase of common shares | (7,362) | (7,362) | |||||
Repurchase of common shares to settle tax obligations | (2,544) | (2,544) | |||||
Forfeiture of employee common shares | (78) | (87) | 9 | ||||
Dividends/distributions | (89,361) | (87,441) | (1,920) | ||||
Net income (loss) | (15,618) | (16,009) | 391 | ||||
Other comprehensive income (loss) | 33 | 33 | |||||
Ending Balance at Jun. 30, 2018 | 1,229,296 | 94,016 | 24 | 2,811,981 | (1,693,165) | 1,098 | 15,342 |
Beginning Balance at Mar. 31, 2018 | 1,274,384 | 94,016 | 24 | 2,811,213 | (1,647,804) | 1,311 | 15,624 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Redemption of noncontrolling OP units for common shares | 63 | (63) | |||||
Issuance of common shares and deferred compensation amortization, net | 1,731 | 1,731 | |||||
Repurchase of common shares | (1,026) | (1,026) | |||||
Dividends/distributions | (44,785) | (43,667) | (1,118) | ||||
Net income (loss) | (795) | (1,694) | 899 | ||||
Other comprehensive income (loss) | (213) | (213) | |||||
Ending Balance at Jun. 30, 2018 | 1,229,296 | 94,016 | 24 | 2,811,981 | (1,693,165) | 1,098 | 15,342 |
Beginning Balance at Dec. 31, 2018 | 1,346,678 | 94,016 | 24 | 2,772,855 | (1,537,100) | 76 | 16,807 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Redemption of noncontrolling OP units for common shares | 0 | 161 | (161) | ||||
Issuance of common shares and deferred compensation amortization, net | 3,096 | 3,096 | |||||
Repurchase of common shares | (958) | (958) | |||||
Repurchase of common shares to settle tax obligations | (3,942) | (1) | (3,941) | ||||
Forfeiture of employee common shares | 5 | 5 | |||||
Dividends/distributions | (52,678) | (51,017) | (1,661) | ||||
Net income (loss) | 52,049 | 51,360 | 689 | ||||
Other comprehensive income (loss) | (76) | (76) | |||||
Ending Balance at Jun. 30, 2019 | 1,344,174 | 94,016 | 23 | 2,771,213 | (1,536,752) | 0 | 15,674 |
Beginning Balance at Mar. 31, 2019 | 1,345,334 | 94,016 | 23 | 2,769,822 | (1,534,539) | 16,012 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Redemption of noncontrolling OP units for common shares | 5 | (5) | |||||
Issuance of common shares and deferred compensation amortization, net | 1,386 | 1,386 | |||||
Dividends/distributions | (26,315) | (25,546) | (769) | ||||
Net income (loss) | 23,769 | 23,333 | 436 | ||||
Other comprehensive income (loss) | 0 | ||||||
Ending Balance at Jun. 30, 2019 | $ 1,344,174 | $ 94,016 | $ 23 | $ 2,771,213 | $ (1,536,752) | $ 0 | $ 15,674 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 88,557 | $ 110,881 |
Cash flows from investing activities: | ||
Acquisition of real estate, including intangible assets | (259,867) | (136,776) |
Capital expenditures | (8,636) | (10,566) |
Net proceeds from sale of properties | 119,406 | 127,035 |
Investments in non-consolidated entities | (1,120) | (187) |
Distributions from non-consolidated entities in excess of accumulated earnings | 6,943 | 389 |
Increase in deferred leasing costs | (4,673) | (1,801) |
Change in real estate deposits, net | 766 | (111) |
Net cash used in investing activities | (147,181) | (22,017) |
Cash flows from financing activities: | ||
Dividends to common and preferred shareholders | (70,722) | (88,471) |
Principal amortization payments | (13,410) | (14,369) |
Principal payments on debt, excluding normal amortization | (15,462) | 0 |
Revolving credit facility borrowings | 55,000 | 135,000 |
Revolving credit facility payments | 0 | (100,000) |
Deferred financing costs | (3,678) | (493) |
Payment of early extinguishment of debt charges | (1) | 0 |
Proceeds from mortgages and notes payable | 0 | 26,350 |
Cash distributions to noncontrolling interests | (1,661) | (1,920) |
Repurchases to settle tax obligations | (4,135) | (2,818) |
Repurchase of common shares | (3,598) | (7,362) |
Net cash provided by (used in) financing activities | (57,667) | (54,083) |
Change in cash, cash equivalents and restricted cash | (116,291) | 34,781 |
Cash, cash equivalents and restricted cash, at beginning of period | 177,247 | 112,156 |
Cash, cash equivalents and restricted cash, at end of period | 60,956 | 146,937 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents at beginning of period | 168,750 | 107,762 |
Cash and cash equivalents at end of period | 43,789 | 75,373 |
Restricted cash at beginning of period | 8,497 | 4,394 |
Restricted cash at end of period | $ 17,167 | $ 71,564 |
The Company and Financial State
The Company and Financial Statement Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Financial Statement Presentation | The Company and Financial Statement Presentation Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a diversified portfolio of equity investments in single-tenant commercial properties. As of June 30, 2019 , the Company had ownership interests in approximately 140 consolidated real estate properties, located in 33 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries. The Company believes that it continues to be operated in a manner that enables it to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities. The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries, which are single-purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unitholder of the general partner and the sole unitholder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, and (4) investments in joint ventures. References to “OP units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest. Each property owner subsidiary is a separate and distinct legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors. The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and six months ended June 30, 2019 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 13, 2019 (“Annual Report”). Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP. The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of June 30, 2019 and December 31, 2018 , the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Real estate, net $ 474,667 $ 509,916 Total assets $ 671,826 $ 607,963 Mortgages and notes payable, net $ 83,117 $ 192,791 Total liabilities $ 205,201 $ 203,322 In addition, the Company acquires, from time to time, properties using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a "reverse 1031 exchange") and, as such, the properties are in the possession of an Exchange Accommodation Titleholder ("EAT") until the reverse 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the EAT's economic performance and can collapse the 1031 exchange structure at any time. The assets of the EAT primarily consist of leased property (net real estate and intangibles). Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. Reclassifications . Certain amounts included in the 2018 unaudited condensed consolidated financial statements have been reclassified to conform to the 2019 presentation. New Accounting Standards Adopted in 2019. In June 2018, the FASB issued Accounting Standard Update (“ASU”) No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. The Company adopted this guidance effective January 1, 2019 on a prospective basis. The Company's adoption of this guidance did not have a material impact on its financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. The Company adopted this guidance effective January 1, 2019 on a prospective basis. The Company's adoption of this guidance did not have a material impact on its financial statements. Additionally, the Company adopted ASU No. 2016-02, Leases (Topic 842) effective January 1, 2019. Topic 842 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The Company adopted Topic 842 using the modified retrospective transition approach with January 1, 2019 as the Company's date of initial application, thus periods prior to January 1, 2019 conform to ASC Topic 840. The Company has elected other practical expedients permitted under the transition guidance including: • a package of practical expedients that allows the Company to carryforward its assessment of whether a contract is or contains a lease, whether costs incurred qualify as initial direct costs, and historical lease classification for any leases that existed prior to the adoption; • to account for lease and non-lease components as a single component if the (i) timing and patterns of transfer are the same for the lease and non-lease component and (ii) related lease component and the combined single lease component would be classified as an operating lease; • to exclude from the consideration in the contract and variable lease payments not included in the consideration in the contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the lessor from the lessee. Taxes assessed on the Company’s total gross receipts are excluded from this accounting policy election; • to not assess if existing land easements in place prior to adoption meet the definition of a lease; and • not recognizing leases with a term of 12 months or less on the balance sheet. The Company did not elect the hindsight practical expedient to determine lease term. The adoption of this guidance required the Company to record right-of-use assets and lease liabilities on the Company's unaudited condensed consolidated balance sheet. The Company did not recognize a cumulative adjustment to equity upon adoption. The adoption of this guidance did not have a material impact on the Company's unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. See note 9, “Lease Accounting” for further disclosures. Recently Issued Accounting Guidance. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 BASIC Net income (loss) attributable to common shareholders $ 21,721 $ (3,327 ) $ 48,130 $ (19,284 ) Weighted-average number of common shares outstanding - basic 232,635,137 237,312,726 232,587,083 237,690,306 Net income (loss) attributable to common shareholders - per common share basic $ 0.09 $ (0.01 ) $ 0.21 $ (0.08 ) DILUTED Net income (loss) attributable to common shareholders - basic $ 21,721 $ (3,327 ) $ 48,130 $ (19,284 ) Impact of assumed conversions 165 — 166 — Net income (loss) attributable to common shareholders $ 21,886 $ (3,327 ) $ 48,296 $ (19,284 ) Weighted-average common shares outstanding - basic 232,635,137 237,312,726 232,587,083 237,690,306 Effect of dilutive securities: Unvested share-based payment awards and options 129,810 — 91,637 — OP Units 3,534,931 — 3,542,610 — Weighted-average common shares outstanding - diluted 236,299,878 237,312,726 236,221,330 237,690,306 Net income (loss) attributable to common shareholders - per common share diluted $ 0.09 $ (0.01 ) $ 0.20 $ (0.08 ) For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods. |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate The Company completed the following acquisition transactions during the six months ended June 30, 2019 : Property Type Market Acquisition Date Initial Cost Basis Primary Lease Expiration Land Building and Improvements Lease in-place Value Intangible Industrial Indianapolis, IN January 2019 $ 20,809 07/2025 $ 1,954 $ 16,820 $ 2,035 Industrial Atlanta, GA February 2019 37,182 10/2023 3,253 30,951 2,978 Industrial Dallas, TX April 2019 28,201 08/2023 2,420 23,330 2,451 Industrial Spartanburg, SC April 2019 33,253 01/2024 1,615 27,829 3,809 Industrial Memphis, TN May 2019 49,395 04/2024 2,646 40,452 6,297 Industrial Memphis, TN May 2019 18,316 05/2023 851 15,465 2,000 Industrial Atlanta, GA June 2019 45,441 05/2020 3,251 40,023 2,167 Industrial Atlanta, GA June 2019 27,353 05/2024 2,536 22,825 1,992 $ 259,950 $ 18,526 $ 217,695 $ 23,729 In addition, during the six months ended June 30, 2019 , the Company entered into an agreement to purchase upon completion the expansion of the Richland, Washington industrial property for $67,000 . |
Dispositions and Impairment
Dispositions and Impairment | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions and Impairment | Dispositions and Impairment During the six months ended June 30, 2019 and 2018 , the Company disposed of its interests in various properties for an aggregate gross disposition price of $120,328 and $128,324 , respectively, and recognized aggregate gains on sales of properties of $36,201 and $37,206 , respectively. As of June 30, 2019 , the Company had seven properties classified as held for sale. As of December 31, 2018 , the Company had two properties classified as held for sale. The properties were classified as held for sale because the properties were either under contract for sale and/or a sale of the property to a third party within the next 12 months was deemed probable. Assets and liabilities of held for sale properties as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 Assets: Real estate, at cost $ 204,289 $ 63,639 Real estate, intangible assets 34,545 14,498 Accumulated depreciation and amortization (61,977 ) (16,873 ) Rent receivable - deferred 2,788 2,439 Other 1,507 165 $ 181,152 $ 63,868 Liabilities: Mortgage notes payable, net $ 109,527 $ — Accounts payable and other liabilities 1,205 42 Prepaid rent 1,023 344 $ 111,755 $ 386 The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered. During the six months ended June 30, 2019 and 2018 , the Company recognized aggregate impairment charges on real estate properties of $1,682 and $88,318 , respectively. Included in the impairment charges recognized during the six months ended June 30, 2019 are impairment charges of $1,433 and $249 recognized on unencumbered and vacant retail properties in Watertown, New York and Albany, Georgia, respectively, which were held for sale at June 30, 2019 . Included in the impairment charges recognized during the six months ended June 30, 2018 , are impairment charges of $17,906 recognized on a vacant encumbered office property in Overland Park, Kansas, whose mortgage is currently in default, $5,591 recognized on an office property in Kansas City, Missouri, and $25,585 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2019 and December 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description June 30, 2019 (Level 1) (Level 2) (Level 3) Impaired properties held for sale (1) $ 2,700 $ — $ 1,500 $ 1,200 Balance Fair Value Measurements Using Description December 31, 2018 (Level 1) (Level 2) (Level 3) Interest rate swap assets (2) $ 76 $ — $ 76 $ — Impaired real estate assets (3) $ 35,036 $ — $ — $ 35,036 (1) Represents a non-recurring fair value measurement. Fair value as of the date of the impairment was determined by the signed purchase agreement for the property located in Albany, GA and an internal valuation of fair value prepared for the property located in Watertown, NY. (2) The interest rate swap assets related to the Company's $300,000 term loan expired in January 2019. (3) Represents a non-recurring fair value measurement as of the date of impairment. The majority of the inputs used to value the Company's interest rate swaps fell within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2018 , the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps were classified in Level 2 of the fair value hierarchy. The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale contracts (Level 2 inputs) or recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated. The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of June 30, 2019 and December 31, 2018 , excluding held for sale assets. As of June 30, 2019 As of December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities Debt $ 1,410,106 $ 1,362,438 $ 1,492,483 $ 1,409,773 The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates, except for the Company's senior notes payable. The Company determines the fair value of its senior notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low. Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts. Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable . The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments. |
Investments in Non-Consolidated
Investments in Non-Consolidated Entities | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Investments in Non-Consolidated Entities | Investments in Non-Consolidated Entities Below is a schedule of the Company's investments in non-consolidated entities: Percentage Ownership at Investment Balance as of Investment June 30, 2019 June 30, 2019 December 31, 2018 NNN Office JV (“NNN JV”) (1) 20% $ 48,520 $ 53,144 Etna Park 70 LLC (2) 90% 5,849 4,774 Other (3) 25% 5,497 8,265 $ 59,866 $ 66,183 (1) During 2018, the Company disposed of 21 office assets to NNN JV for an aggregate gross disposition price of $725,800 and acquired a 20% interest in NNN JV. Two of the 21 properties, with a combined estimated fair value of $45,653 , were contributed to NNN JV along with cash of $8,053 . The Company recognized a gain of $14,645 in connection with the contribution of the two office assets to NNN JV, and in addition, NNN JV assumed an aggregate of $103,400 of non-recourse mortgage debt in the transaction. NNN JV obtained an aggregate of $362,800 of non-recourse mortgage financing which bears interest at LIBOR plus 200 basis points and has an initial term of three years but can be extended for two additional terms of one -year each. There is a rate increase of 15 basis points upon each extension. NNN JV entered into interest rate agreements which cap the LIBOR component of the $362,800 mortgage financing at 4.0% for two years . As of June 30, 2019 , NNN JV had total assets of $698,770 and total liabilities of $456,554 . The properties are encumbered by an aggregate of $436,200 of non-recourse mortgage debt as of June 30, 2019 . (2) Joint venture formed in 2017 with a developer entity to acquire a 151 -acre parcel of developable land and pursue industrial build-to-suit opportunities. The developer entity has substantive participation rights. In December 2018, the parcel was subdivided and the Company received a distribution of an ownership interest in a 57 -acre parcel with a historic cost of $3,008 . The Company acquired control of the 57 -acre parcel via the purchase of the Company's joint venture partners' interest. (3) As of June 30, 2019 , represents one joint venture investment, which owns a single-tenant, net-leased asset. In February 2019, a non-consolidated real estate entity, in which the Company owned a 15% ownership interest, sold its only asset and the Company received $2,317 of proceeds. The Company recognized a gain on the transaction of $803 , which is included in "Equity in earnings (losses) of non-consolidated entities" in its unaudited condensed consolidated statement of operations. In May 2019, NNN JV sold one asset. The Company recognized a gain on the transaction of $270 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company had the following mortgages and notes payable outstanding as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Mortgages and notes payable $ 436,642 $ 575,514 Unamortized debt issuance costs (4,288 ) (5,094 ) $ 432,354 $ 570,420 Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 6.5% at June 30, 2019 and December 31, 2018 and all mortgages and notes payables mature between 2019 and 2036 as of June 30, 2019 . The weighted-average interest rate was 4.6% and 4.5% at June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019, the Richland, Washington property, which was held for sale, was encumbered by a $110,000 mortgage that bears interest at 4.0% and is not included in the June 30, 2019 table above. As of June 30, 2019 , the Company had two non-recourse mortgage loans that were in default with an outstanding aggregate principal balance of $38,942 . Each mortgage loan is secured by an office property (Overland Park, Kansas and Charleston, South Carolina), which was vacant or mostly vacant at June 30, 2019 . The Company had the following senior notes outstanding as of June 30, 2019 and December 31, 2018 : Issue Date June 30, 2019 December 31, 2018 Interest Rate Maturity Date Issue Price May 2014 $ 250,000 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 250,000 4.25 % June 2023 99.026 % 500,000 500,000 Unamortized debt discount (1,099 ) (1,235 ) Unamortized debt issuance cost (2,449 ) (2,731 ) $ 496,452 $ 496,034 Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. The Company has an unsecured credit agreement with KeyBank National Association, as agent. A summary of the significant terms, as of June 30, 2019 , is as follows: Current $600,000 Revolving Credit Facility (1) February 2023 LIBOR + 0.90% $300,000 Term Loan (1)(2) January 2021 LIBOR + 1.00% (1) In February 2019, the Company replaced its revolving credit facility and the 2021 term loan with a new revolving credit facility and the continuation of the 2021 term loan (the “2019 Credit Agreement”). The 2019 Credit Agreement, among other things: (i) increased the total commitment of the revolving credit facility from $505,000 under the previous credit facility to $600,000 under the 2019 Credit Agreement; (ii) extended the maturity date of the revolving credit facility from August 2019 to February 2023 and allowed for the extension to February 2024 at the Company's option; and (iii) reduced the applicable margin rates on both the revolving credit facility and the 2021 term loan. The Company recognized $93 of debt satisfaction charges in connection with the transaction. At June 30, 2019 , the revolving credit facility had $55,000 in borrowings outstanding and availability of $545,000 , subject to covenant compliance. (2) The aggregate unamortized debt issuance costs for the term loan was $1,046 and $1,267 as of June 30, 2019 and December 31, 2018 , respectively. The Company was compliant with all applicable financial covenants contained in its corporate level debt agreements at June 30, 2019 . During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at June 30, 2019 was 4.283% . As of June 30, 2019 and December 31, 2018 , there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,774 and $1,824 , respectively, of unamortized debt issuance costs. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Risk Management Objective of Using Derivatives . The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which is determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings. Cash Flow Hedges of Interest Rate Risk . The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable-rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the six months ended June 30, 2019 and 2018 . As of June 30, 2019 , the Company does not have any interest rate swap agreements related to its outstanding variable rate debt. The LIBOR swap rate on $255,000 of LIBOR-indexed variable-rate unsecured term loans expired in January 2019. Accordingly, the fair value of the swap was reclassified from other comprehensive income and as of June 30, 2019 , the Company had no outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheet as of December 31, 2018 . As of December 31, 2018 Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 76 The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the six months ended June 30, 2019 and 2018 . Derivatives in Cash Flow Amount of Income Amount of Income (1) Hedging Relationships 2019 2018 2019 2018 Interest Rate Swaps $ 1 $ 606 $ (77 ) $ (573 ) (1) Amounts reclassified from accumulated other comprehensive income to interest expense within the unaudited condensed consolidated statement of operations. |
Lease Accounting
Lease Accounting | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Accounting | Lease Accounting The following is a summary of the Company's accounting for leases as of and during the six-month period ended June 30, 2019 : Lessor Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred. Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before. Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions. From a lessor perspective, the Company concluded that revenue from lease components are primarily recognized on a straight-line basis over the lease term unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a Consumer Price Index (CPI) with no floor. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition commences when the improvements are substantially complete and control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the unaudited condensed consolidated balance sheets. The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease payments were considered not probable. During the six months ended June 30, 2019 , rental revenue was reduced by $307 for accounts receivable deemed uncollectable primarily related to the tenant in Thompson, GA filing for bankruptcy. The Company determined that the lease and non-lease components in its leases are a single lease component and is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service that is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of June 30, 2019 , the Company incurred $161 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities . The Company does not have residual value guarantees on specific properties. The following table presents the Company’s classification of rental revenue for its operating leases for the six months ended June 30, 2019 : Classification Fixed Variable (1) Total Rental revenue $ 145,412 $ 13,321 $ 158,733 (1) Primarily comprised of tenant reimbursements. Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of June 30, 2019 are as follows: 2019 - remainder $ 141,556 2020 274,827 2021 259,348 2022 243,809 2023 239,912 2024 210,944 Thereafter 1,534,665 Total $ 2,905,061 Minimum future lease payments under the non-cancellable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter in accordance with ASC Topic 840 as of December 31, 2018 were as follows: Year ending December 31, Total 2019 $ 270,557 2020 253,660 2021 233,192 2022 212,893 2023 211,387 Thereafter 1,619,848 $ 2,801,537 Lessee The Company has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of June 30, 2019 . The leases have remaining lease terms of up to 44 years , some of which include options to extend the leases in 5 to 10 -year increments for up to 54 years . Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred. The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate. The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease. As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases. Supplemental information related to operating leases is as follows: Weighted-average remaining lease term Operating leases (years) 12.6 Weighted-average discount rate Operating leases 4.1 % The components of lease expense for the six months ended June 30, 2019 are as follows: Income Statement Classification Fixed Variable Total Property operating $ 1,992 $ — $ 1,992 General and administrative 671 57 728 Total $ 2,663 $ 57 $ 2,720 The Company recognized sublease income of $1,882 for the six months ended June 30, 2019 . The following table shows the Company's maturity analysis of its operating lease liabilities as of June 30, 2019 : Operating Leases 2019 - remainder $ 2,448 2020 5,239 2021 5,062 2022 5,137 2023 5,280 2024 5,301 Thereafter 25,622 Total lease payments $ 54,089 Less: Imputed interest (13,012 ) Present value of lease liabilities $ 41,077 The following table shows the Company's future minimum lease rental payments under non-cancellable leasehold interests in accordance with ASC Topic 840 as of December 31, 2018: Year ending December 31, Total 2019 $ 3,826 2020 3,827 2021 3,769 2022 3,834 2023 4,008 Thereafter 28,326 $ 47,590 |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the six months ended June 30, 2019 and 2018 , no single tenant represented greater than 10% of rental revenues. Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Equity Shareholders' Equity. During the six months ended June 30, 2019 , the Company updated its At-The-Market offering program under which the Company may currently issue up to $100,000 in common shares over the term of the program. The Company did not issue common shares under its At-The-Market offering program during the six months ended June 30, 2019 and 2018 . In addition, during the six months ended June 30, 2019 and 2018 , the Company issued 41,186 and 46,561 , respectively, fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $345 and $431 , respectively. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and, in 2018, increased this authorization by 10,000,000 common shares. This share repurchase program has no expiration date. During the six months ended June 30, 2019 and 2018 , the Company repurchased and retired 441,581 and 925,775 common shares, respectively, at an average price of $8.13 and $7.93 , respectively, per common share under the share repurchase program. The Company records a liability for repurchases that have not yet been settled as of period end. There were no unsettled repurchases as of June 30, 2019 . A summary of the changes in accumulated other comprehensive income related to the Company's cash flow hedges is as follows: Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 76 $ 1,065 Other comprehensive income before reclassifications 1 606 Amounts of income reclassified from accumulated other comprehensive income to interest expense (77 ) (573 ) Balance at end of period $ — $ 1,098 Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments. As of June 30, 2019 , there were approximately 3,138,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference. The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests: Net Income (Loss) Attributable to Shareholders and Transfers from Noncontrolling Interests Six Months Ended June 30, 2019 2018 Net income (loss) attributable to Lexington Realty Trust shareholders $ 51,360 $ (16,009 ) Transfers from noncontrolling interests: Increase in additional paid-in-capital for redemption of noncontrolling OP units 161 63 Change from net income (loss) attributable to shareholders and transfers from noncontrolling interests $ 51,521 $ (15,946 ) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In 2018, a joint venture that owns a property in Houston, Texas obtained $8,500 of mezzanine financing from an affiliate of the Company's former Chairman, E. Robert Roskind. The non-recourse mezzanine financing was funded pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”). The joint venture reimbursed the former Chairman's affiliate $150 for its expenses. Under an indemnity agreement, the joint venture is required to pay an affiliate of the Company's former Chairman 0.625% of the outstanding principal amount of the EB-5 mezzanine financing per annum. In addition, during 2017, the Company obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of the Company's former Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina. In January 2018, the Company obtained an additional $500 of financing proceeds. The Company reimbursed the former Chairman's affiliate approximately $105 for its expenses and paid a $128 structuring fee to the former Chairman's affiliate. The property was subsequently contributed to, and the financing was assumed by, NNN JV. See note 6. There were no other related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In addition to the commitments and contingencies disclosed elsewhere and previously disclosed, the Company has the following commitments and contingencies. The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries. The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion, but no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement. From time to time, the Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations, except for the following: Cummins Inc. v. Lexington Columbus (Jackson Street) L.P. and Wells Fargo Trust Company, N.A. (State of Indiana, County of Bartholomew, in the Bartholomew Superior Court). On October 25, 2018, Cummins Inc., the tenant in the Columbus, Indiana office building, filed a complaint for declaratory relief against Lexington Columbus (Jackson Street) L.P. (“Lex Columbus”), the Company's property owner subsidiary, and Wells Fargo Trust Company, N.A., the trustee for the noteholders with a security interest in the office building. Under the subject lease, Cummins Inc.’s tenancy extends through July 31, 2024, with options to further extend for additional time periods. Despite failing to timely provide notice of intent to exercise a purchase option for the office building that was expressly due by July 15, 2018, where time was of the essence, Cummins Inc. has asked the court for a declaration that it is entitled to purchase the building at the option price and to terminate the lease effective July 31, 2019. Cummins Inc. does not dispute that it failed to comply with the requirements of the purchase option, but alleges that it is entitled to relief under several equitable theories. Lex Columbus filed a motion to dismiss the complaint on January 8, 2019, which was denied on May 24, 2019. Lex Columbus filed a Motion to Certify for Interlocutory Appeal the order denying Lex Columbus's Motion to Dismiss, which was granted on June 17, 2019 together with a stay order until the completion of any subsequent appellate proceedings. On June 24, 2019, Cummins Inc. filed a motion to reconsider the Court's June 17, 2019 orders, which the Court granted the same day, thereby vacating its June 17, 2019 orders. Lex Columbus filed a motion for the Court to reconsider its June 24, 2019 order on June 27, 2019. Following a hearing on July 26, 2019, the Court denied Lex Columbus's motion to reconsider and granted a motion by Cummins Inc. to deposit future rent due under the lease into a Court administered account. Cummins Inc. filed a motion to authorize depositing of the purchase price under the unexercised option to purchase into a special court administered account on July 31, 2019. Lex Columbus intends to file an answer, affirmative and other defenses and a counterclaim for damages and declaratory relief and jury demand on August 7, 2019. Discovery is ongoing. The Company believes that Indiana law supports Lex Columbus's right to enforce strict compliance with the terms of the option to purchase under the lease and retain ownership of the building and the Company intends to vigorously defend this claim. |
Supplemental Disclosure of Stat
Supplemental Disclosure of Statement of Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information In addition to disclosures discussed elsewhere, during the six months ended June 30, 2019 and 2018 , the Company paid $30,676 and $39,046 , respectively, for interest and $1,330 and $1,219 , respectively, for income taxes. Upon adoption of Topic 842, the Company recognized initial operating lease right-of-use assets of $41,755 and initial operating lease liabilities of $43,004 . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to June 30, 2019 , the Company: • satisfied an aggregate of $21,408 non-recourse mortgage loans; and • extended the maturity of the $300,000 term loan to January 2025 and swapped the LIBOR portion of the interest rate to obtain a current fixed rate of 2.732% |
The Company and Financial Sta_2
The Company and Financial Statement Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and consolidation | Basis of Presentation and Consolidation. |
Variable interest entity | The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP. |
Use of estimates | Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. |
Fair value measurements | Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. |
Reclassifications | Reclassifications . Certain amounts included in the 2018 unaudited condensed consolidated financial statements have been reclassified to conform to the 2019 presentation. |
Recently issued accounting guidance | New Accounting Standards Adopted in 2019. In June 2018, the FASB issued Accounting Standard Update (“ASU”) No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. The Company adopted this guidance effective January 1, 2019 on a prospective basis. The Company's adoption of this guidance did not have a material impact on its financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. The Company adopted this guidance effective January 1, 2019 on a prospective basis. The Company's adoption of this guidance did not have a material impact on its financial statements. Additionally, the Company adopted ASU No. 2016-02, Leases (Topic 842) effective January 1, 2019. Topic 842 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The Company adopted Topic 842 using the modified retrospective transition approach with January 1, 2019 as the Company's date of initial application, thus periods prior to January 1, 2019 conform to ASC Topic 840. The Company has elected other practical expedients permitted under the transition guidance including: • a package of practical expedients that allows the Company to carryforward its assessment of whether a contract is or contains a lease, whether costs incurred qualify as initial direct costs, and historical lease classification for any leases that existed prior to the adoption; • to account for lease and non-lease components as a single component if the (i) timing and patterns of transfer are the same for the lease and non-lease component and (ii) related lease component and the combined single lease component would be classified as an operating lease; • to exclude from the consideration in the contract and variable lease payments not included in the consideration in the contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the lessor from the lessee. Taxes assessed on the Company’s total gross receipts are excluded from this accounting policy election; • to not assess if existing land easements in place prior to adoption meet the definition of a lease; and • not recognizing leases with a term of 12 months or less on the balance sheet. The Company did not elect the hindsight practical expedient to determine lease term. The adoption of this guidance required the Company to record right-of-use assets and lease liabilities on the Company's unaudited condensed consolidated balance sheet. The Company did not recognize a cumulative adjustment to equity upon adoption. The adoption of this guidance did not have a material impact on the Company's unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. See note 9, “Lease Accounting” for further disclosures. Recently Issued Accounting Guidance. |
Lessor | Lessor Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred. Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before. Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions. From a lessor perspective, the Company concluded that revenue from lease components are primarily recognized on a straight-line basis over the lease term unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a Consumer Price Index (CPI) with no floor. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition commences when the improvements are substantially complete and control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the unaudited condensed consolidated balance sheets. The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease payments were considered not probable. During the six months ended June 30, 2019 , rental revenue was reduced by $307 for accounts receivable deemed uncollectable primarily related to the tenant in Thompson, GA filing for bankruptcy. The Company determined that the lease and non-lease components in its leases are a single lease component and is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service that is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of June 30, 2019 , the Company incurred $161 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities . The Company does not have residual value guarantees on specific properties. |
Lessee | Lessee The Company has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of June 30, 2019 . The leases have remaining lease terms of up to 44 years , some of which include options to extend the leases in 5 to 10 -year increments for up to 54 years . Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred. The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate. The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease. As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases. |
The Company and Financial Sta_3
The Company and Financial Statement Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Real estate, net $ 474,667 $ 509,916 Total assets $ 671,826 $ 607,963 Mortgages and notes payable, net $ 83,117 $ 192,791 Total liabilities $ 205,201 $ 203,322 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 BASIC Net income (loss) attributable to common shareholders $ 21,721 $ (3,327 ) $ 48,130 $ (19,284 ) Weighted-average number of common shares outstanding - basic 232,635,137 237,312,726 232,587,083 237,690,306 Net income (loss) attributable to common shareholders - per common share basic $ 0.09 $ (0.01 ) $ 0.21 $ (0.08 ) DILUTED Net income (loss) attributable to common shareholders - basic $ 21,721 $ (3,327 ) $ 48,130 $ (19,284 ) Impact of assumed conversions 165 — 166 — Net income (loss) attributable to common shareholders $ 21,886 $ (3,327 ) $ 48,296 $ (19,284 ) Weighted-average common shares outstanding - basic 232,635,137 237,312,726 232,587,083 237,690,306 Effect of dilutive securities: Unvested share-based payment awards and options 129,810 — 91,637 — OP Units 3,534,931 — 3,542,610 — Weighted-average common shares outstanding - diluted 236,299,878 237,312,726 236,221,330 237,690,306 Net income (loss) attributable to common shareholders - per common share diluted $ 0.09 $ (0.01 ) $ 0.20 $ (0.08 ) |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Acquired Properties | The Company completed the following acquisition transactions during the six months ended June 30, 2019 : Property Type Market Acquisition Date Initial Cost Basis Primary Lease Expiration Land Building and Improvements Lease in-place Value Intangible Industrial Indianapolis, IN January 2019 $ 20,809 07/2025 $ 1,954 $ 16,820 $ 2,035 Industrial Atlanta, GA February 2019 37,182 10/2023 3,253 30,951 2,978 Industrial Dallas, TX April 2019 28,201 08/2023 2,420 23,330 2,451 Industrial Spartanburg, SC April 2019 33,253 01/2024 1,615 27,829 3,809 Industrial Memphis, TN May 2019 49,395 04/2024 2,646 40,452 6,297 Industrial Memphis, TN May 2019 18,316 05/2023 851 15,465 2,000 Industrial Atlanta, GA June 2019 45,441 05/2020 3,251 40,023 2,167 Industrial Atlanta, GA June 2019 27,353 05/2024 2,536 22,825 1,992 $ 259,950 $ 18,526 $ 217,695 $ 23,729 In addition, during the six months ended June 30, 2019 , the Company entered into an agreement to purchase upon completion the expansion of the Richland, Washington industrial property for $67,000 . |
Disposition and Impairment (Tab
Disposition and Impairment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Assets and liabilities of held for sale properties as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 Assets: Real estate, at cost $ 204,289 $ 63,639 Real estate, intangible assets 34,545 14,498 Accumulated depreciation and amortization (61,977 ) (16,873 ) Rent receivable - deferred 2,788 2,439 Other 1,507 165 $ 181,152 $ 63,868 Liabilities: Mortgage notes payable, net $ 109,527 $ — Accounts payable and other liabilities 1,205 42 Prepaid rent 1,023 344 $ 111,755 $ 386 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Fair Value Measurement Inputs | The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2019 and December 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description June 30, 2019 (Level 1) (Level 2) (Level 3) Impaired properties held for sale (1) $ 2,700 $ — $ 1,500 $ 1,200 Balance Fair Value Measurements Using Description December 31, 2018 (Level 1) (Level 2) (Level 3) Interest rate swap assets (2) $ 76 $ — $ 76 $ — Impaired real estate assets (3) $ 35,036 $ — $ — $ 35,036 (1) Represents a non-recurring fair value measurement. Fair value as of the date of the impairment was determined by the signed purchase agreement for the property located in Albany, GA and an internal valuation of fair value prepared for the property located in Watertown, NY. (2) The interest rate swap assets related to the Company's $300,000 term loan expired in January 2019. (3) Represents a non-recurring fair value measurement as of the date of impairment. |
Schedule of Carrying Amounts and Fair Value of Financial Instruments | The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of June 30, 2019 and December 31, 2018 , excluding held for sale assets. As of June 30, 2019 As of December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities Debt $ 1,410,106 $ 1,362,438 $ 1,492,483 $ 1,409,773 |
Investments in Non-Consolidat_2
Investments in Non-Consolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Investments in and Advances to Affiliates | Below is a schedule of the Company's investments in non-consolidated entities: Percentage Ownership at Investment Balance as of Investment June 30, 2019 June 30, 2019 December 31, 2018 NNN Office JV (“NNN JV”) (1) 20% $ 48,520 $ 53,144 Etna Park 70 LLC (2) 90% 5,849 4,774 Other (3) 25% 5,497 8,265 $ 59,866 $ 66,183 (1) During 2018, the Company disposed of 21 office assets to NNN JV for an aggregate gross disposition price of $725,800 and acquired a 20% interest in NNN JV. Two of the 21 properties, with a combined estimated fair value of $45,653 , were contributed to NNN JV along with cash of $8,053 . The Company recognized a gain of $14,645 in connection with the contribution of the two office assets to NNN JV, and in addition, NNN JV assumed an aggregate of $103,400 of non-recourse mortgage debt in the transaction. NNN JV obtained an aggregate of $362,800 of non-recourse mortgage financing which bears interest at LIBOR plus 200 basis points and has an initial term of three years but can be extended for two additional terms of one -year each. There is a rate increase of 15 basis points upon each extension. NNN JV entered into interest rate agreements which cap the LIBOR component of the $362,800 mortgage financing at 4.0% for two years . As of June 30, 2019 , NNN JV had total assets of $698,770 and total liabilities of $456,554 . The properties are encumbered by an aggregate of $436,200 of non-recourse mortgage debt as of June 30, 2019 . (2) Joint venture formed in 2017 with a developer entity to acquire a 151 -acre parcel of developable land and pursue industrial build-to-suit opportunities. The developer entity has substantive participation rights. In December 2018, the parcel was subdivided and the Company received a distribution of an ownership interest in a 57 -acre parcel with a historic cost of $3,008 . The Company acquired control of the 57 -acre parcel via the purchase of the Company's joint venture partners' interest. (3) As of June 30, 2019 , represents one joint venture investment, which owns a single-tenant, net-leased asset. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company had the following mortgages and notes payable outstanding as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Mortgages and notes payable $ 436,642 $ 575,514 Unamortized debt issuance costs (4,288 ) (5,094 ) $ 432,354 $ 570,420 |
Debt Instrument Redemption | The Company had the following senior notes outstanding as of June 30, 2019 and December 31, 2018 : Issue Date June 30, 2019 December 31, 2018 Interest Rate Maturity Date Issue Price May 2014 $ 250,000 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 250,000 4.25 % June 2023 99.026 % 500,000 500,000 Unamortized debt discount (1,099 ) (1,235 ) Unamortized debt issuance cost (2,449 ) (2,731 ) $ 496,452 $ 496,034 |
Schedule of Line of Credit Facilities | A summary of the significant terms, as of June 30, 2019 , is as follows: Current $600,000 Revolving Credit Facility (1) February 2023 LIBOR + 0.90% $300,000 Term Loan (1)(2) January 2021 LIBOR + 1.00% (1) In February 2019, the Company replaced its revolving credit facility and the 2021 term loan with a new revolving credit facility and the continuation of the 2021 term loan (the “2019 Credit Agreement”). The 2019 Credit Agreement, among other things: (i) increased the total commitment of the revolving credit facility from $505,000 under the previous credit facility to $600,000 under the 2019 Credit Agreement; (ii) extended the maturity date of the revolving credit facility from August 2019 to February 2023 and allowed for the extension to February 2024 at the Company's option; and (iii) reduced the applicable margin rates on both the revolving credit facility and the 2021 term loan. The Company recognized $93 of debt satisfaction charges in connection with the transaction. At June 30, 2019 , the revolving credit facility had $55,000 in borrowings outstanding and availability of $545,000 , subject to covenant compliance. (2) The aggregate unamortized debt issuance costs for the term loan was $1,046 and $1,267 as of June 30, 2019 and December 31, 2018 , respectively. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheet as of December 31, 2018 . As of December 31, 2018 Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 76 |
Effect of the Company's Derivative Financial Instruments on the Statements of Operation | The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the six months ended June 30, 2019 and 2018 . Derivatives in Cash Flow Amount of Income Amount of Income (1) Hedging Relationships 2019 2018 2019 2018 Interest Rate Swaps $ 1 $ 606 $ (77 ) $ (573 ) (1) Amounts reclassified from accumulated other comprehensive income to interest expense within the unaudited condensed consolidated statement of operations. |
Lease Accounting (Tables)
Lease Accounting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The following table presents the Company’s classification of rental revenue for its operating leases for the six months ended June 30, 2019 : Classification Fixed Variable (1) Total Rental revenue $ 145,412 $ 13,321 $ 158,733 (1) Primarily comprised of tenant reimbursements. |
Lessor, Operating Lease, Payments to be Received, Maturity | Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of June 30, 2019 are as follows: 2019 - remainder $ 141,556 2020 274,827 2021 259,348 2022 243,809 2023 239,912 2024 210,944 Thereafter 1,534,665 Total $ 2,905,061 Minimum future lease payments under the non-cancellable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter in accordance with ASC Topic 840 as of December 31, 2018 were as follows: Year ending December 31, Total 2019 $ 270,557 2020 253,660 2021 233,192 2022 212,893 2023 211,387 Thereafter 1,619,848 $ 2,801,537 |
Assets and Liabilities, Lessee | Supplemental information related to operating leases is as follows: Weighted-average remaining lease term Operating leases (years) 12.6 Weighted-average discount rate Operating leases 4.1 % |
Lease, Cost | The components of lease expense for the six months ended June 30, 2019 are as follows: Income Statement Classification Fixed Variable Total Property operating $ 1,992 $ — $ 1,992 General and administrative 671 57 728 Total $ 2,663 $ 57 $ 2,720 |
Lessee, Operating Lease, Liability, Maturity | The following table shows the Company's maturity analysis of its operating lease liabilities as of June 30, 2019 : Operating Leases 2019 - remainder $ 2,448 2020 5,239 2021 5,062 2022 5,137 2023 5,280 2024 5,301 Thereafter 25,622 Total lease payments $ 54,089 Less: Imputed interest (13,012 ) Present value of lease liabilities $ 41,077 The following table shows the Company's future minimum lease rental payments under non-cancellable leasehold interests in accordance with ASC Topic 840 as of December 31, 2018: Year ending December 31, Total 2019 $ 3,826 2020 3,827 2021 3,769 2022 3,834 2023 4,008 Thereafter 28,326 $ 47,590 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of the changes in accumulated other comprehensive income related to the Company's cash flow hedges is as follows: Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 76 $ 1,065 Other comprehensive income before reclassifications 1 606 Amounts of income reclassified from accumulated other comprehensive income to interest expense (77 ) (573 ) Balance at end of period $ — $ 1,098 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests: Net Income (Loss) Attributable to Shareholders and Transfers from Noncontrolling Interests Six Months Ended June 30, 2019 2018 Net income (loss) attributable to Lexington Realty Trust shareholders $ 51,360 $ (16,009 ) Transfers from noncontrolling interests: Increase in additional paid-in-capital for redemption of noncontrolling OP units 161 63 Change from net income (loss) attributable to shareholders and transfers from noncontrolling interests $ 51,521 $ (15,946 ) |
The Company and Financial Sta_4
The Company and Financial Statement Presentation - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019Propertystate | |
Variable Interest Entity [Line Items] | |
Number of properties | Property | 140 |
Number of states in which entity has interests | state | 33 |
Variable Interest Entity, Primary Beneficiary | LCIF | |
Variable Interest Entity [Line Items] | |
VIE, ownership percentage | 96.00% |
The Company and Financial Sta_5
The Company and Financial Statement Presentation - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Real estate, net | $ 2,554,844 | $ 2,555,659 |
Total assets | 2,996,916 | 2,953,840 |
Mortgages and notes payable, net | 432,354 | 570,420 |
Total liabilities | 1,652,742 | 1,607,162 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Real estate, net | 474,667 | 509,916 |
Total assets | 671,826 | 607,963 |
Mortgages and notes payable, net | 83,117 | 192,791 |
Total liabilities | $ 205,201 | $ 203,322 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
BASIC | ||||
Net income (loss) attributable to common shareholders | $ 21,721 | $ (3,327) | $ 48,130 | $ (19,284) |
Weighted-average number of common shares outstanding - basic | 232,635,137 | 237,312,726 | 232,587,083 | 237,690,306 |
Income (loss) per common share: | ||||
Net income (loss) attributable to common shares outstanding - basic (in dollars per share) | $ 0.09 | $ (0.01) | $ 0.21 | $ (0.08) |
DILUTED | ||||
Impact of assumed conversions | $ 165 | $ 0 | $ 166 | $ 0 |
Net income (loss) attributable to common shareholders | $ 21,886 | $ (3,327) | $ 48,296 | $ (19,284) |
Effect of dilutive securities: | ||||
Unvested share-based payment awards (in shares) | 129,810 | 0 | 91,637 | 0 |
OP Units (in shares) | 3,534,931 | 0 | 3,542,610 | 0 |
Weighted-average common shares outstanding - diluted (in shares) | 236,299,878 | 237,312,726 | 236,221,330 | 237,690,306 |
Net income (loss) attributable to common shareholders - per common share diluted (in dollars per share) | $ 0.09 | $ (0.01) | $ 0.20 | $ (0.08) |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Real Estate Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Real Estate [Line Items] | ||
Initial Cost Basis | $ 259,950 | |
Land | 18,526 | |
Building and Improvements | 217,695 | |
Lease in-place Value Intangible | 23,729 | |
Indianapolis, Indiana | Industrial Property | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 20,809 | |
Land | 1,954 | |
Building and Improvements | 16,820 | |
Lease in-place Value Intangible | 2,035 | |
Atlanta, Georgia | Industrial Property | Atlanta, Georgia, Industrial Property Acquired in February 2019 | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 37,182 | |
Land | 3,253 | |
Building and Improvements | 30,951 | |
Lease in-place Value Intangible | 2,978 | |
Atlanta, Georgia | Industrial Property | Atlanta, Georgia, Industrial Property Acquired in June 2019, Property 1 | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 45,441 | |
Land | 3,251 | |
Building and Improvements | 40,023 | |
Lease in-place Value Intangible | 2,167 | |
Atlanta, Georgia | Industrial Property | Atlanta, Georgia, Industrial Property Acquired in June 2019, Property 2 | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 27,353 | |
Land | 2,536 | |
Building and Improvements | 22,825 | |
Lease in-place Value Intangible | 1,992 | |
Dallas, Texas | Industrial Property | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 28,201 | |
Land | 2,420 | |
Building and Improvements | 23,330 | |
Lease in-place Value Intangible | 2,451 | |
Spartanburg, South Carolina | Industrial Property | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 33,253 | |
Land | 1,615 | |
Building and Improvements | 27,829 | |
Lease in-place Value Intangible | 3,809 | |
Memphis, Tennessee | Industrial Property | Memphis, Tennessee, Industrial Property Expiring 2024 | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 49,395 | |
Land | 2,646 | |
Building and Improvements | 40,452 | |
Lease in-place Value Intangible | 6,297 | |
Memphis, Tennessee | Industrial Property | Memphis, Tennessee, Industrial Property Expiring 2023 | ||
Real Estate [Line Items] | ||
Initial Cost Basis | 18,316 | |
Land | 851 | |
Building and Improvements | 15,465 | |
Lease in-place Value Intangible | $ 2,000 | |
Richland, Washington | Industrial Property | Forecast | ||
Real Estate [Line Items] | ||
Initial Cost Basis | $ 67,000 |
Dispositions and Impairment - A
Dispositions and Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)property | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)property | Jun. 30, 2018USD ($) | Dec. 31, 2018property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of real estate properties held for sale | property | 7 | 7 | 2 | ||
Asset impairment charges | $ 1,094 | $ 35,269 | $ 1,682 | $ 88,318 | |
Watertown, New York | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset impairment charges | 1,433 | ||||
Albany, Georgia | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset impairment charges | 249 | ||||
Overland Park, Kansas | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset impairment charges | 17,906 | ||||
Kansas City, Missouri | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset impairment charges | 5,591 | ||||
Memphis, Tennessee | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset impairment charges | 25,585 | ||||
Transferred Property | Office Building | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Aggregate gross disposition price | 120,328 | 128,324 | |||
Sold Properties | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of properties | $ 36,201 | $ 37,206 |
Dispositions and Impairment - S
Dispositions and Impairment - Schedule of Properties Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Liabilities: | ||
Liabilities held for sale | $ 111,755 | $ 386 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Assets: | ||
Real estate, at cost | 204,289 | 63,639 |
Real estate, intangible assets | 34,545 | 14,498 |
Accumulated depreciation and amortization | (61,977) | (16,873) |
Rent receivable - deferred | 2,788 | 2,439 |
Other | 1,507 | 165 |
Assets held for sale | 181,152 | 63,868 |
Liabilities: | ||
Mortgage notes payable, net | 109,527 | 0 |
Accounts payable and other liabilities | 1,205 | 42 |
Prepaid rent | 1,023 | 344 |
Liabilities held for sale | $ 111,755 | $ 386 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) - USD ($) | Jun. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2018 |
Unsecured Term Loan | Unsecured Term Loan, Expiring January 2021 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Face amount of debt instrument | $ 300,000,000 | $ 300,000,000 | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | $ 76,000 | ||
Fair Value, Recurring | Fair Value Measurements Using Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 0 | ||
Fair Value, Recurring | Fair Value Measurements Using Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 76,000 | ||
Fair Value, Recurring | Fair Value Measurements Using Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 0 | ||
Fair Value, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired properties held for sale | 2,700,000 | ||
Impaired real estate assets | 35,036,000 | ||
Fair Value, Nonrecurring | Fair Value Measurements Using Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired properties held for sale | 0 | ||
Impaired real estate assets | 0 | ||
Fair Value, Nonrecurring | Fair Value Measurements Using Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired properties held for sale | 1,500,000 | ||
Impaired real estate assets | 0 | ||
Fair Value, Nonrecurring | Fair Value Measurements Using Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired properties held for sale | $ 1,200,000 | ||
Impaired real estate assets | $ 35,036,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - Fair Value Measurements Using Level 3 - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Liabilities | ||
Carrying value of debt | $ 1,410,106 | $ 1,492,483 |
Fair Value | ||
Liabilities | ||
Fair value of debt | $ 1,362,438 | $ 1,409,773 |
Investments in Non-Consolidat_3
Investments in Non-Consolidated Entities - Schedule of Investment in Non-Consolidated Entities (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2018USD ($)aterm | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)abuildingterm | Dec. 31, 2017a | |
Investments in and Advances to Affiliates [Line Items] | |||||||
Investment balance | $ 66,183 | $ 59,866 | $ 66,183 | ||||
Unconsolidated Properties | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Aggregate gross disposition price | $ 2,317 | ||||||
Gain (loss) on disposition of assets | $ 803 | ||||||
NNN Office Joint Venture | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Non-recourse debt | 436,200 | ||||||
NNN Office Joint Venture | Mortgages | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Non-recourse debt | $ 362,800 | $ 362,800 | |||||
Long-term debt, term | 3 years | 3 years | |||||
Number of additional extensions available | term | 2 | 2 | |||||
Term of additional extensions | 1 year | ||||||
Term of contract | 2 years | ||||||
NNN Office Joint Venture | Mortgages | London Interbank Offered Rate (LIBOR) | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Basis spread rate increase per extension | 0.15% | ||||||
Cap interest rate | 4.00% | 4.00% | |||||
NNN Office Joint Venture Properties | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity method investment, assets | 698,770 | ||||||
Equity method investment, liabilities | 456,554 | ||||||
Office Building | Transferred Property | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Aggregate gross disposition price | $ 120,328 | $ 128,324 | |||||
Office Building | NNN Office Joint Venture Properties | Transferred Property | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Number of properties sold | building | 21 | ||||||
Aggregate gross disposition price | $ 725,800 | ||||||
NNN Office Joint Venture | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Ownership percentage | 20.00% | 20.00% | 20.00% | ||||
Investment balance | $ 53,144 | $ 48,520 | $ 53,144 | ||||
Gain (loss) on disposition of assets | $ 270 | ||||||
NNN Office Joint Venture | 2 of 21 Transferred Properties | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Fair value of contributed property | 45,653 | ||||||
Payments to acquire interest in joint venture | 8,053 | ||||||
Gain (loss) on disposition of assets | 14,645 | ||||||
Loans assumed | 103,400 | ||||||
Etna Park 70 | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Ownership percentage | 90.00% | ||||||
Investment balance | 4,774 | $ 5,849 | $ 4,774 | ||||
Payments to acquire interest in joint venture | $ 3,008 | ||||||
Area of real estate property | a | 57 | 57 | 151 | ||||
Other Joint Ventures | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Ownership percentage | 25.00% | ||||||
Investment balance | $ 8,265 | $ 5,497 | $ 8,265 | ||||
Non-consolidated Real Estate Entity | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Ownership percentage | 15.00% |
Debt - Schedule of Mortgages an
Debt - Schedule of Mortgages and Notes Payable (Details) - Mortgages and Notes Payable - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Mortgages and notes payable | $ 436,642 | $ 575,514 |
Unamortized debt issuance costs | (4,288) | (5,094) |
Long-term debt | $ 432,354 | $ 570,420 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2007USD ($) | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Debt default, number of loans | loan | 2 | ||
Debt default, amount | $ 38,942,000 | ||
Mortgages and Notes Payable | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.60% | 4.50% | |
Mortgages payable | $ 436,642,000 | $ 575,514,000 | |
6.804% Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.804% | ||
Face amount of debt instrument | $ 200,000,000 | ||
Interest rate, effective percentage | 4.283% | ||
Principal amount outstanding | $ 129,120,000 | 129,120,000 | |
Unamortized debt issuance costs | $ 1,774,000 | $ 1,824,000 | |
6.804% Trust Preferred Securities | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
Richland, Washington | Mortgages | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.00% | ||
Mortgages payable | $ 110,000,000 | ||
Minimum | Mortgages and Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.20% | ||
Maximum | Mortgages and Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.50% |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 500,000,000 | $ 500,000,000 |
Unamortized debt discount | (1,099,000) | (1,235,000) |
Unamortized debt issuance costs | (2,449,000) | (2,731,000) |
Long-term debt | 496,452,000 | 496,034,000 |
Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | 250,000,000 |
Stated interest rate | 4.40% | |
Percentage of issuance price | 99.883% | |
Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | $ 250,000,000 |
Stated interest rate | 4.25% | |
Percentage of issuance price | 99.026% |
Debt - Schedule of Credit Agree
Debt - Schedule of Credit Agreement Terms (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Feb. 28, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Revolving credit facility borrowings | $ 55,000,000 | $ 55,000,000 | $ 0 | ||||
Debt satisfaction charges, net | 0 | $ 0 | 103,000 | $ 0 | |||
Unsecured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | 1,046,000 | 1,046,000 | $ 1,267,000 | ||||
Unsecured Revolving Credit Facility, Expiring August 2019 | Unsecured Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | 600,000,000 | 600,000,000 | |||||
Maximum borrowing capacity | $ 600,000,000 | $ 505,000,000 | |||||
Revolving credit facility borrowings | 55,000,000 | 55,000,000 | |||||
Remaining borrowing capacity | 545,000,000 | 545,000,000 | |||||
Debt satisfaction charges, net | 93,000 | ||||||
Unsecured Term Loan, Expiring January 2021 | Unsecured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt instrument | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||||
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring August 2019 | Unsecured Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.90% | ||||||
London Interbank Offered Rate (LIBOR) | Unsecured Term Loan, Expiring January 2021 | Unsecured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - Interest Rate Swap - Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | |
Other Assets | ||||
Derivative [Line Items] | ||||
Derivative asset | $ 76 | |||
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | $ 255,000 | |||
Cash Flow Hedging | Interest Expense | ||||
Derivative [Line Items] | ||||
Amount of income (loss) recognized in OCI on derivatives (effective portion) | $ 1 | $ 606 | ||
Amount of (income) loss reclassified from accumulated OCI into income (effective portion) | $ (77) | $ (573) |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Receivable deemed uncollectable | $ 307 |
Lease execution costs | $ 161 |
Remaining lease term | 44 years |
Renewal term | 54 years |
Sublease income | $ 1,882 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 10 years |
Lease Accounting - Lease Income
Lease Accounting - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Fixed | $ 145,412 | |
Variable lease income | 13,321 | |
Total | $ 78,758 | $ 158,733 |
Lease Accounting - Future Fixed
Lease Accounting - Future Fixed Rental Receipts (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 - remainder | $ 141,556 |
2020 | 274,827 |
2021 | 259,348 |
2022 | 243,809 |
2023 | 239,912 |
2024 | 210,944 |
Thereafter | 1,534,665 |
Total | $ 2,905,061 |
Lease Accounting - Minimum Futu
Lease Accounting - Minimum Future Rentals Under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 270,557 |
2020 | 253,660 |
2021 | 233,192 |
2022 | 212,893 |
2023 | 211,387 |
Thereafter | 1,619,848 |
Future minimum payments receivable | $ 2,801,537 |
Lease Accounting - Supplemental
Lease Accounting - Supplemental Balance Sheet Information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, operating leases (years) | 12 years 7 months 6 days |
Weighted-average discount rate, operating leases | 4.10% |
Lease Accounting - Components o
Lease Accounting - Components of Lease Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Fixed | $ 2,663 |
Variable | 57 |
Total | 2,720 |
Property Operating Expense | |
Lessee, Lease, Description [Line Items] | |
Fixed | 1,992 |
Variable | 0 |
Total | 1,992 |
General and Administrative Expense | |
Lessee, Lease, Description [Line Items] | |
Fixed | 671 |
Variable | 57 |
Total | $ 728 |
Lease Accounting - Operating Le
Lease Accounting - Operating Lease Liabilities Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 - remainder | $ 2,448 | |
2020 | 5,239 | |
2021 | 5,062 | |
2022 | 5,137 | |
2023 | 5,280 | |
2024 | 5,301 | |
Thereafter | 25,622 | |
Total lease payments | 54,089 | |
Less: Imputed interest | (13,012) | |
Present value of lease liabilities | $ 41,077 | $ 0 |
Lease Accounting - Operating _2
Lease Accounting - Operating Lease Liabilities Maturity Under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 3,826 |
2020 | 3,827 |
2021 | 3,769 |
2022 | 3,834 |
2023 | 4,008 |
Thereafter | 28,326 |
Future minimum payments due | $ 47,590 |
Equity - Additional Information
Equity - Additional Information (Details) | 6 Months Ended | |||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018shares | Jul. 31, 2015shares | |
Equity [Line Items] | ||||
Authorized amount (in shares) | 10,000,000 | 10,000,000 | ||
Treasury stock acquired (in shares) | 441,581 | 925,775 | ||
Treasury stock acquired, average cost (in dollars per share) | $ / shares | $ 8.13 | $ 7.93 | ||
OP unit equivalent in common shares | 1.13 | |||
Partners' capital account (in units) | 3,138,000 | |||
Share-based Payment Arrangement | ||||
Equity [Line Items] | ||||
Shares granted (in shares) | 41,186 | 46,561 | ||
Grant date fair value | $ | $ 345,000 | $ 431,000 | ||
At The Market | ||||
Equity [Line Items] | ||||
Sale of stock, authorized amount (up to) | $ | $ 100,000,000 |
Equity - Changes in Other Compr
Equity - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,346,678 | $ 1,340,835 |
Ending Balance | 1,344,174 | 1,229,296 |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 76 | 1,065 |
Ending Balance | 0 | 1,098 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other comprehensive income before reclassifications | 1 | 606 |
Amounts of income reclassified from accumulated other comprehensive income to interest expense | $ (77) | $ (573) |
Equity - Effects of Changes in
Equity - Effects of Changes in Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Net income (loss) attributable to Lexington Realty Trust shareholders | $ 23,333 | $ (1,694) | $ 51,360 | $ (16,009) |
Transfers from noncontrolling interests: | ||||
Increase in additional paid-in-capital for redemption of noncontrolling OP units | 161 | 63 | ||
Change from net income (loss) attributable to shareholders and transfers from noncontrolling interests | $ 51,521 | $ (15,946) |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Notes payable, related party | $ 8,500 | $ 8,000 | $ 500 |
Related party transaction, rate | 0.625% | ||
Expense Reimbursement | |||
Related Party Transaction [Line Items] | |||
Property operating expenses | $ 150 | 105 | |
Structuring Fee | |||
Related Party Transaction [Line Items] | |||
Property operating expenses | $ 128 |
Supplemental Disclosure of St_2
Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Interest paid | $ 30,676 | $ 39,046 | ||
Income taxes paid, net | 1,330 | $ 1,219 | ||
Operating right-of-use assets, net | 39,981 | $ 0 | ||
Operating lease liabilities | $ 41,077 | $ 0 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating right-of-use assets, net | $ 41,755 | |||
Operating lease liabilities | $ 43,004 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | ||
Aug. 07, 2019 | Jun. 30, 2019 | Jan. 31, 2019 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Extinguishment of debt, amount | $ 21,408,000 | ||
Unsecured Term Loan | Unsecured Term Loan, Expiring January 2021 | |||
Subsequent Event [Line Items] | |||
Face amount of debt instrument | $ 300,000,000 | $ 300,000,000 | |
Unsecured Term Loan | Unsecured Term Loan, Expiring January 2021 | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stated interest rate | 2.732% |