Lexington Realty Trust (LXP) disclosed the divestiture of two office assets in Chicago, IL and Brea, CA. The company garnered around $110.0 million and $34.2 million, respectively, in proceeds from this disposition.
This real estate investment trust (REIT) settled the $29.9 million mortgage loan associated with the vended properties. With the abovementioned transaction, Lexington Realty has vended around $259 million of assets as of Nov 28, 2014. This comprises of roughly $202 million of short-term lease and multi-tenant office properties of the company.
We are encouraged with the deal as it is in sync with the company’s strategic move. Notably, the company aims at offloading the non-core assets and using the dry powder for various corporate purposes such as building its investment pipeline through acquisitions and constructions.
Especially, Lexington Realty focuses on adding long-term net-leased properties to its roster, which will extend its weighted-average lease term and boost its top line in the future. Accordingly, Lexington Realty bought two assets in New York, NY and Vineland, NJ for $49.5 million, subsequent to the end of third-quarter 2014.
Lexington Realty is engaged in the ownership, operation and management of a diversified portfolio of equity and debt interests in single-tenant commercial properties and land. The company intends to grow through acquisitions, build-to-suits, sale-leaseback transactions and other deals.
Currently, Lexington Realty carries a Zacks Rank #3 (Hold). Some better-ranked equity REITs include Arbor Realty Trust Inc. (ABR), Corrections Corporation of America (CXW) and Ashford Hospitality Trust, Inc. (AHT). All three stocks sport a Zacks Rank #1 (Strong Buy).
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