Vornado Realty (VNO) sells stakes in LXP and UE; calls 2022 bonds.
Vornado Realty announced today that it has sold its remaining positions in Lexington Realty Trust (LXP) and Urban Edge Properties (UE) for total proceeds of $276.2 million. At the same time, VNO announced the redemption of its $400 million 5.00% bonds due 2002, which the company said would result in a prepayment charge of approximately $23 million.
The sale of the LXP/UE stakes is part of VNO's continuing effort to clean up its balance sheet and increase the focus on core NYC office properties. Previous divestitures have included the initial spin-off transaction of the Urban Edge shopping center portfolio in 2015, and the 2017 contribution of office properties located in Washington, DC, to JBG Smith Properties (JBGS).