Lexington Realty CEO Anticipates Higher-Yielding Investment Opportunities in 2017

Will Eglin, president and CEO of Lexington Realty Trust (NYSE: LXP), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.

Lexington primarily makes equity and debt investments in single-tenant, net lease commercial properties across the United States. The company recently sold four land parcels with 96-year ground leases in New York. Given the long-term nature of the leases, “that was the most bond-like holding in our portfolio,” Eglin said.

The sale occurred at better-than-expected pricing, and “given what’s happened in the bond market since the election, that sale looks even more advantageous to us,” he observed.

Meanwhile, given the move in interest rates, there should be higher-yielding investment opportunities in the year ahead, according to Eglin. “We’re very enthusiastic about the opportunity set that we expect to see next year,” he said.

Turning to balance sheet matters, Eglin said the company’s net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio is about 5.3, its lowest level ever.

“Our balance sheet right now is as good as it can be… We’re in a perfectly positioned spot as we move forward from here,” he said.