About T. Eglin
In a September 2015 interview with REIT.com, T. Wilson Eglin, then president and CEO of Lexington Realty Trust, discussed the company's financial performance and investment strategy. Eglin stated that following the financial crisis, the company experienced a "strong rebound in cash flow" driven by refinancing savings and a favorable investment environment, particularly in the build-to-suit segment. He attributed the company's 70% dividend increase over four years to this cash flow momentum.
Eglin said that Lexington's property investments are driven by corporate space use decisions, focusing on states with "favorable" business environments, such as right-to-work states and those with favorable tax regimes. He expressed optimism about sale-leaseback transactions, noting that low interest rates allow companies to secure attractive long-term occupancy costs, and described the period as "an uncommonly good time for sale-leaseback financing."
Source: AI-verified profile updated from T. Eglin's recent appearances.
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Transcript (11 segments)
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Matthew Charbonnet0:08
I'm Matthew Charbonnet at Retail REIT 2015 in New York City for the NAREIT Investor Forum. Joining me for this CEO Spotlight is Will Eglin, President and CEO of Lexington Realty Trust. Well, thanks so much for joining us.
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T. Eglin0:20
Thank you, Matt. It's good to be here.
M
Matthew Charbonnet0:23
Lexington has increased its dividend 70% over the last four years. How has the company been able to achieve that?
T
T. Eglin0:28
Well, coming out of the financial crisis, we had a very strong rebound in our cash flow that was driven by refinancing savings and also an uncommonly good investment environment in our business. Yields were very attractive, especially in the build-to-suit segment, so that helped us create a lot of cash flow momentum, and dividend growth has followed with that.
M
Matthew Charbonnet0:52
And as you dispose of some of your non-core assets, which markets are you targeting for future investment?
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T. Eglin0:59
Well, if you look at where we own property, it tends to track where US corporations want to be located for whichever reason, so it's largely driven by corporate space use decisions. But that begins with picking states where the environment for business is favorable: right-to-work states, favorable tax regimes, etc. So that tends to drive our investment decisions.
M
Matthew Charbonnet1:22
Lastly, do you expect to see continued interest from a variety of companies looking to do sale-leaseback transactions with Lexington?
T
T. Eglin1:28
Well, I would think so. The business is steady from that standpoint right now. Since interest rates are still very low, there's an opportunity for companies to lock in very attractive long-term occupancy costs in connection with a sale-leaseback. So right now we think it's an uncommonly good time for sale-leaseback financing, and we're hopeful that leads to additional good growth opportunities for us.
M
Matthew Charbonnet1:50
Great. Well, thank you so much for joining us.
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Matthew Charbonnet1:54
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