Investment Activity Property AcquisitionsOn October 5, 2011, Lexington acquired a 475,000 square foot distribution facility in Chillicothe, Ohio for approximately $12.1 million (8.2% initial cap rate). The facility is net-leased to a single tenant for approximately 15 years.
Build-to-Suit Projects Lexington continues to fund the construction of the previously announced build-to-suit projects in (1) Huntington, West Virginia (9.4% initial rap rate), (2) Saint Joseph, Missouri (9.5% initial cap rate), (3) Florence, South Carolina (10.0% initial cap rate), (4) Shreveport, Louisiana (9.5% initial cap rate), (5) Long Island City, New York (8.5% initial cap rate), and (6) Jessup, Pennsylvania (9.2% initial cap rate). The aggregate estimated cost of these six projects is approximately $116.7 million of which approximately $35.9 million was funded as of December 31, 2011.
Balance Sheet Lexington reduced its consolidated debt during the fourth quarter of 2011 by approximately $39.0 million. This includes four mortgages that were to mature in 2012 totaling approximately $34.0 million. Overall indebtedness was reduced by approximately $119.0 million in 2011.
On October 28, 2011, Lexington settled its common share forward purchase obligation with a cash payment of approximately $4.0 million, which resulted in the retirement of approximately 4.0 million common shares underlying the obligation.During the fourth quarter of 2011, Lexington repurchased and retired an aggregate of 419,126 Series B Cumulative Redeemable Preferred Shares and 91,104 Series C Cumulative Convertible Preferred Shares for an aggregate of approximately $14.0 million, at an approximate $1.0 million discount to liquidation preference. Overall, Lexington repurchased approximately $15.5 million of the Series B and Series C shares at an approximate $1.3 million discount to liquidation preference in 2011. Common Share Dividend On November 1, 2011, Lexington increased its regular common share dividend for the quarter ended December 31, 2011 to $0.125 per common share, which is payable on January 17, 2012 to common shareholders of record on December 30, 2011. As of result of the increase in the common share dividend, Lexington's 6.00% Convertible Guaranteed Notes have a current conversion rate of 142.6917 common shares per $1,000 principal amount of the notes, representing a conversion price of $7.01 per common share.
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