Jump to content

Thoughts on LXP


Recommended Posts

I am curious to see if anyone on the board has done any research into LXP, Lexington Realty Trust (REIT).


Through my analysis it is trading at a significant discount to value. Book value less non-controlling investments and other intangibles at 6/30 I estimated at $6.25. The FFO is projected at $1.29-1.34 for 2009 (net of one time charges). It is currently trading at $4.14.


Some analysis (not mine but similar viewpoints). I will try to post mine when I have a bit more time than tonight. I just wanted to get the thread going.




http://messages.finance.yahoo.com/Business_%26_Finance/Investments/Stocks_%28A_to_Z%29/Stocks_L/threadview?bn=27874&tid=1988&mid=2020  (tcorcoran40 has been providing fairly good analysis on his own right on the Yahoo forum but has a bit of an attitude).





Link to comment
Share on other sites

Earlier this year I switched out of some FUR for LXP.  LXP has done some good shareholder friendly actions like buying back debt and preferred at a discount.  The real question here is what will be the cash dividend when they re-instate it next year.  Based upon the current history it may be 0.72 or 1.19 based upon 90% of FFO but analysts have a lower estimate (which is driving the stock price).  So on a potential yield, basis it is undervalued compared to other Triple-net companies such as O and NNN which yield around 7% and imply a LXP value of $10 to $17.  On an EBITDA basis, it is at about 10x EBITDA not cheap but cheaper than NNN and O which have EBITDA's of 17 and 19 respectively.  LXP (if the CFs hold up) is like an inexpensive call option on triple-net RE.  Before the current fall, I was considering moving back to FUR but given the current price I probably will stay with LXP.



Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...