NYSE:LXP

Stock Analysis Report

Executive Summary

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States.

Rewards

Trading at 26.7% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -75.9% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has Lexington Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LXP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

LXP

-0.5%

US REITs

0.5%

US Market


1 Year Return

20.7%

LXP

14.9%

US REITs

20.3%

US Market

Return vs Industry: LXP exceeded the US REITs industry which returned 14.9% over the past year.

Return vs Market: LXP matched the US Market which returned 20.3% over the past year.


Shareholder returns

LXPIndustryMarket
7 Day0.8%-0.5%0.5%
30 Day4.7%2.1%2.0%
90 Day5.5%6.5%9.4%
1 Year25.9%20.7%19.6%14.9%22.8%20.3%
3 Year25.3%2.6%36.4%19.3%50.1%40.4%
5 Year52.1%7.3%58.1%25.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is Lexington Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lexington Realty Trust undervalued compared to its fair value and its price relative to the market?

26.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LXP ($11.49) is trading below our estimate of fair value ($15.68)

Significantly Below Fair Value: LXP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LXP is good value based on its PE Ratio (12.6x) compared to the REITs industry average (36.3x).

PE vs Market: LXP is good value based on its PE Ratio (12.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: LXP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LXP is good value based on its PB Ratio (1.9x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Lexington Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-75.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LXP's earnings are forecast to decline over the next 3 years (-75.9% per year).

Earnings vs Market: LXP's earnings are forecast to decline over the next 3 years (-75.9% per year).

High Growth Earnings: LXP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LXP's revenue (0.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LXP's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LXP's Return on Equity is forecast to be low in 3 years time (0.2%).


Next Steps

Past Performance

How has Lexington Realty Trust performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LXP has a large one-off gain of $177.8M impacting its September 30 2019 financial results.

Growing Profit Margin: LXP's current net profit margins (64.8%) are higher than last year (55.1%).


Past Earnings Growth Analysis

Earnings Trend: LXP's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: LXP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LXP had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the REITs industry average (6.9%).


Return on Equity

High ROE: LXP's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lexington Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LXP has a high level of physical assets or inventory.

Debt Coverage by Assets: LXP's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: LXP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LXP has a sufficient allowance for bad loans.

Low Risk Liabilities: LXP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LXP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LXP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LXP has an appropriate level of bad loans.


Next Steps

Dividend

What is Lexington Realty Trust's current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: LXP's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: LXP's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: LXP's dividend payments have been volatile in the past 10 years.

Growing Dividend: LXP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), LXP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LXP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average management tenure


CEO

Will Eglin (54yo)

17.1yrs

Tenure

US$5,071,152

Compensation

Mr. T. Wilson Eglin, also known as Will, has been the Chief Executive Officer at Lexington Realty Trust since January 2003 and President since April 1996. Mr. Eglin has been the Chairman of the Board at Le ...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD5.07M) is about average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Will's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
T. Eglin
Chairman17.1yrsUS$5.07m1.05% $30.5m
Joseph Bonventre
Executive VP16.1yrsUS$1.28m0.16% $4.7m
Patrick Carroll
Executive VP & Chief Risk Officer17.1yrsUS$1.77m0.39% $11.4m
Lara Johnson
Executive VP & Executive Officer0yrsUS$1.09m0.14% $4.2m
Beth Boulerice
Executive VP0.9yrsno data0.11% $3.1m
Mark Cherone
Chief Accounting Officer0.9yrsno data0.011% $332.4k
Heather Gentry
Senior Vice President of Investor Relations0yrsno datano data
Brendan Mullinix
Executive VP & Executive Officer0yrsno data0.13% $3.7m
Nabil Andrawis
Executive VP & Director of Taxation0yrsno datano data
James Dudley
Executive VP4.5yrsno data0.044% $1.3m

10.3yrs

Average Tenure

45yo

Average Age

Experienced Management: LXP's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
T. Eglin
Chairman17.1yrsUS$5.07m1.05% $30.5m
Richard Frary
Lead Trustee3.1yrsUS$160.21k0.053% $1.5m
Howard Roth
2.3yrsUS$152.48k0.012% $357.4k
Jamie Handwerker
2.9yrsUS$141.49k0.018% $511.6k
Claire Koeneman
4.4yrsUS$146.49k0.024% $699.1k
Lawrence Gray
4.2yrsUS$147.77k0.019% $561.4k

3.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: LXP's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LXP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lexington Realty Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lexington Realty Trust
  • Ticker: LXP
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.910b
  • Market Cap: US$2.848b
  • Shares outstanding: 251.32m
  • Website: https://www.lxp.com

Number of Employees


Location

  • Lexington Realty Trust
  • One Penn Plaza
  • Suite 4015
  • New York
  • New York
  • 10119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LXPNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1993
LXNDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1993
LXP.PRCNYSE (New York Stock Exchange)PFD CONV SER CUSUSDDec 2004

Biography

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:36
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.