XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Equity | 6 Months Ended
--- | ---
Jun. 30, 2021
Equity [Abstract] |
Equity | Equity Shareholders' Equity: At-The-Market Offering Program. The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares, including through forward sales contracts. There were no common share issuances under the ATM program for the six months ended June 30, 2021. The following table summarizes common share issuances under the ATM program for the six months ended June 30, 2020:
| Six Months Ended June 30, 2020
| Shares Sold | Net Proceeds
2020 ATM Issuances | 5,321,588 | $54,000
The Company entered into forward sales contracts, under its ATM program, for the sale of 3,649,023 common shares during the six months ended June 30, 2021 that have not yet been settled. Subject to the Company's right to elect cash or net share settlement, the Company expects to settle the forward sales contracts by the maturity dates in February 2022. The Company did not enter into forward sales contracts as of June 30, 2020. As of June 30, 2021, an aggregate of 8,639,740 common shares were sold in forward sales contracts that have not been settled and had an aggregate settlement price of $93,339, which is subject to adjustment in accordance with the forward sales contracts. In February 2021, the Company amended the terms of its ATM offering program, under which the Company may, from time to time, sell up to $350,000 of common shares over the term of the program. As of June 30, 2021, common shares with an aggregate value of $309,048 remain available for issuance under the ATM program. Underwritten equity offerings. In May 2021, the Company entered into forward sales contracts for the sale of 16,000,000 common shares at a public offering price of $12.11 per common share in an underwritten equity offering that have not yet settled. Subject to the Company's rights to elect cash or net share settlement, the Company expects to settle the forward sales contracts by the maturity date in May 2022. As of June 30, 2021, the forward sales contracts had an aggregate settlement price of $191,829, which is subject to adjustment in accordance with the forward sales contracts. During 2020, the Company issued 17,250,000 common shares at a public offering price of $9.60 per common share in an underwritten equity offering and generated net proceeds of approximately $164,000. The proceeds were used for general corporate purposes, including acquisitions, and pending the application of the proceeds were used to pay down all of the then outstanding balance under the Company's revolving credit facility. Nonemployee Stock Based Compensation. During the six months ended June 30, 2021 and 2020, the Company issued 27,565 and 23,480, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $300 and $250, respectively. Share Repurchase Program. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 in 2018. This share repurchase program has no expiration date. During the six months ended June 30, 2020, the Company repurchased and retired 1,329,940 common shares at an average price of $8.28 per common share under the share repurchase program. There were no common shares repurchased during the six months ended June 30, 2021. As of June 30, 2021, 8,976,315 common shares remain available for repurchase under this authorization. The Company records a liability for repurchases that have not yet been settled as of the period end. Series C Preferred Stock. The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) outstanding at June 30, 2021. The shares have a dividend of $3.25 per share per annum, have a liquidation preference of $96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of June 30, 2021, each share was convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds. If certain fundamental changes occur, holders may require the Company, in certain circumstances, to repurchase all or part of their shares of Series C Preferred. In addition, upon the occurrence of certain fundamental changes, the Company will, under certain circumstances, increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the shares of Series C Preferred becoming convertible into shares of the public acquiring or surviving company. The Company may, at the Company's option, cause shares of Series C Preferred to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company's common shares equals or exceeds 125% of the then prevailing conversion price of the Series C Preferred. Holders of shares of Series C Preferred generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters and under certain other circumstances. Upon conversion, the Company may choose to deliver the conversion value to investors in cash, common shares, or a combination of cash and common shares. A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:
|  | Six Months Ended June 30,
|  | 2021 |  | 2020
Balance at beginning of period |  | $ | (17,963) |  |  | $ | (1,928) |
Other comprehensive gain (loss) before reclassifications |  | 3,486 |  |  | (19,773) |
Amounts of loss reclassified from accumulated other comprehensive income to interest expense |  | 2,436 |  |  | 971 |
Balance at end of period |  | $ | (12,041) |  |  | $ | (20,730) |
Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued operating partnership units (“OP units”) as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments. As of June 30, 2021, there were approximately 2,458,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference. The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests:
| Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests
| Six Months Ended June 30,
| 2021 |  | 2020
Net income attributable to Lexington Realty Trust shareholders | $ | 113,720 |  |  | $ | 37,020 |
Transfers from noncontrolling interests: |  |  |
Increase in additional paid-in-capital for reallocation of noncontrolling interests | 435 |  |  | — |
Increase in additional paid-in-capital for redemption of noncontrolling OP units | 468 |  |  | 482 |
Change from net income attributable to shareholders and transfers from noncontrolling interests | $ | 114,623 |  |  | $ | 37,502 |

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration