Lexington Realty Trust, a real estate investment trust focused on single-tenant commercial property investments, entered into a definitive agreement to acquire Inland American’s interest in Net Lease Strategic Assets Fund.
NLS is a joint venture between Inland and Lexington formed in 2007. It owns 26 office properties, 13 industrial properties and two specialty properties totaling 5.8 million square feet in 23 states.
The transaction, which will close Friday, is valued at about $480 million and expands Lexington's asset base while consolidating its ownership of a 98.7% leased portfolio, which Lexington has held since before NLS’ formation.
The cash component of Lexington's purchase price is about $1.3 million, net of NLS cash balances of $8.1 million at Aug. 31, at which time NLS had about $258 million of consolidated debt.
"This transaction is highly beneficial to Lexington,” the company’s chief executive T. Wilson Eglin said. “This portfolio of 41 office, industrial and specialty assets in 23 states is leased to a high quality roster of tenants including Northrop Grumman (NOC), Siemens (SI), Owens Corning (OC) and Honeywell (HON).”
In conjunction with the transaction, Lexington is raising its 2012 company funds from operation, as adjusted, guidance to a range of 95 cents to 98 cents per common share from a range of 93 cents to 96 cents.