Lexington Realty Trust Announces $480M Acquisition

""Lexington Realty Trust,"":http://www.lxp.com/ a national realty investment trust that owns, manages, and invests in single-tenant office, industrial, and retail properties, ""announced"":http://www.nasdaq.com/article/lexington-realty-trust-to-acquire-net-lease-strategic-assets-fund-20120906-01590 a multi-million-dollar acquisition Thursday with a transaction value of about $480 million.

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Lexington is acquiring ""Inland American Sub's"":http://www.inlandamerican.com/ portion of Net Lease Strategic Assets Fund L.P., which was a joint venture between Inland and Lexington.

Lexington's CEO, T. Wilson Eglin called the acquisition ""highly beneficial to Lexington.""

""This portfolio of 41 office, industrial and specialty assets in 23 states is leased to a high quality roster of tenants including Northrop Grumman, Siemens, Owens Corning and Honeywell,"" Eglin stated.

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Lexington has consolidated its ownership of the portfolio of 98.7 percent leased properties.

Lexington has owned and/or managed these properties for the past several years, since prior to 2007 when it entered the venture with Inland to create Net Strategic Assets Fund.

Net Strategic Assets Fund holds about $8.1 million in cash and about $258 million in consolidated debt as of the end of August.

Lexington reported the cash portion of its purchase price for the fund was $1.3 million.

""We believe we can create significant value for our shareholders by extending lease terms, recycling capital through asset sales and refinancing the underlying debt over time,"" Eglin stated.

Lexington also announced its quarterly dividend at the end of September will be 20 percent higher than the quarterly dividend it offered the previous quarter.

At the end of September shareholders will receive $0.15 per common share/unit, up from $0.125 per common share/unit at the end of the second quarter.

""We are very pleased to announce an upward revision to our 2012 guidance and a substantial increase in our quarterly common share dividend,"" Eglin stated in Thursday's announcement.