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Re: swanlinbar post# 125

Tuesday, 09/25/2018 6:54:27 AM

Tuesday, September 25, 2018 6:54:27 AM

Post# of 193
LXP out yesterday 8.27 very small gain
Expect Dividend Cut to $0.40-0.48/sh in April 2019. Execution
Risk. Watch and Wait. Maintain Sell.

• Lexington Property Trust is pulling off the band-aid with: 1) recently announced and expected office dispositions of over $1B, 2) re-investing a portion of the proceeds into industrial assets,3) de-levering, 4) possibly re-purchasing shares.

• While the merits of the strategy are obvious, the many moving pieces and overall execution risk causes us to maintain our Sell rating.

• We note that LXP is not owned by many of the REIT dedicated crowd, and is in the hands of many income oriented investors; active and passive. We are unsure as to when these shareholders become aware of the dividend adjustment and how they respond.

• While the dividend cut could push the stock lower, it could also provide LXP with an opportunity to increase their share re-purchase program

And so we are told this is the golden age
And gold is the reason for the wars we wage U2