10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2017.

or

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _________________ to ________________

Commission File Number

1-12386 (Lexington Realty Trust)

33-04215 (Lepercq Corporate Income Fund L.P.)

LEXINGTON REALTY TRUST

LEPERCQ CORPORATE INCOME FUND L.P.

(Exact name of registrant as specified in its charter)

Maryland (Lexington Realty Trust)	13-3717318 (Lexington Realty Trust)
Delaware (Lepercq Corporate Income Fund L.P.)	13-3779859 (Lepercq Corporate Income Fund L.P.)
(State or other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)
One Penn Plaza, Suite 4015, New York, NY 10119-4015 (Address of principal executive offices) (zip code)
(212) 692-7200 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Lexington Realty Trust	Yes x   No ¨
Lepercq Corporate Income Fund L.P.	Yes x   No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 

Lexington Realty Trust	Yes x   No ¨
Lepercq Corporate Income Fund L.P.	Yes x   No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Lexington Realty Trust:
Large accelerated filer x	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨	Emerging growth
		(Do not check if a smaller reporting company)		company ¨
Lepercq Corporate Income Fund L.P.:
Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated filer x	Smaller reporting company ¨	Emerging growth
		(Do not check if a smaller reporting company)		company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     

Lexington Realty Trust	Yes ¨   No x
Lepercq Corporate Income Fund L.P.	Yes ¨   No x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Lexington Realty Trust	Yes ¨   No x
Lepercq Corporate Income Fund L.P.	Yes ¨   No x

Indicate the number of shares outstanding of each of Lexington Realty Trust's classes of common stock, as of the latest practicable date: 240,652,170 common shares of beneficial interest, par value $0.0001 per share, as of November 3, 2017.

EXPLANATORY NOTE

This report combines the Quarterly Reports on Form 10-Q for the period ended September 30, 2017, which we refer to as this Quarterly Report, of (1) Lexington Realty Trust, which we refer to as the Company or the Trust, and subsidiaries and (2) Lepercq Corporate Income Fund L.P., which we refer to as the Partnership or LCIF, and subsidiaries. Unless stated otherwise or the context otherwise requires, (1) “we,” “our,” and “us” refer collectively to the Company and its consolidated subsidiaries, including LCIF and its consolidated subsidiaries, and (2) LCIF or the Partnership refers to LCIF and its consolidated subsidiaries. All of the Company's and LCIF's interests in properties are held, and all property operating activities are conducted, through special purpose entities, which we refer to as property owner subsidiaries or lender subsidiaries, which are separate and distinct legal entities, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes.

The Company is the sole equity owner of (1) Lex GP-1 Trust, or Lex GP, a Delaware statutory trust, and (2) Lex LP-1 Trust, or Lex LP, a Delaware statutory trust.  The Company, through Lex GP and Lex LP, holds, as of September 30, 2017, approximately 96% of LCIF's outstanding units of limited partner interest, which we refer to as OP units. The remaining OP units are beneficially owned by E. Robert Roskind, Chairman of the Trust, and certain non-affiliated investors. As the sole equity owner of LCIF’s general partner, the Company has the ability to control all of LCIF’s day-to-day operations subject to the terms of LCIF’s partnership agreement.

OP units not owned by LXP are accounted for as partners’ capital in LCIF’s unaudited condensed consolidated financial statements and as noncontrolling interests in the Trust’s unaudited condensed consolidated financial statements.

We believe it is important to understand the differences between the Trust and LCIF in the context of how the Trust and LCIF operate as an interrelated, consolidated company. The Trust’s and LCIF’s businesses are substantially the same, except that LCIF is dependent on the Trust for management of LCIF’s operations and future investments as LCIF does not have any employees, executive officers or a board of directors.  

The Trust also invests in assets and conducts business directly and through other subsidiaries.  The Trust allocates investments to itself and its other subsidiaries or LCIF as it deems appropriate and in accordance with certain obligations under LCIF’s partnership agreement with respect to allocations of non-recourse liabilities. The Trust and LCIF are co-borrowers under the Trust’s unsecured revolving credit facility and unsecured term loans.  LCIF is a guarantor of the Trust’s publicly-traded debt securities.  

We believe combining the quarterly reports on Form 10-Q of the Trust and LCIF into this single report results in the following benefits:

• combined reports better reflect how management and the analyst community view the business as a single operating unit;

• combined reports enhance investors’ understanding of the Trust and LCIF by enabling them to view the business as a whole and in the same manner as management;

• combined reports are more efficient for the Trust and LCIF and result in savings in time, effort and expense; and

• combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.

To help investors understand the significant differences between the Trust and LCIF, this Quarterly Report separately presents the following for each of the Trust and LCIF: (1) the unaudited condensed consolidated financial statements and the notes thereto, (2) Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, (3) Part I, Item 4. Controls and Procedures, and (4) Exhibit 31 and Exhibit 32 certifications.

2

TABLE OF CONTENTS

PART I. — FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Lexington Realty Trust
Condensed Consolidated Balance Sheets	4
Condensed Consolidated Statements of Operations	5
Condensed Consolidated Statements of Comprehensive Income (Loss)	6
Condensed Consolidated Statements of Changes in Equity	7
Condensed Consolidated Statements of Cash Flows	8
Notes to Condensed Consolidated Financial Statements	9
Lepercq Corporate Income Fund L.P.
Condensed Consolidated Balance Sheets	25
Condensed Consolidated Statements of Operations	26
Condensed Consolidated Statements of Changes in Partners' Capital	27
Condensed Consolidated Statements of Cash Flows	28
Notes to Condensed Consolidated Financial Statements	29
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	49
ITEM 4. Controls and Procedures	49
PART II — OTHER INFORMATION
ITEM 1. Legal Proceedings	52
ITEM 1A. Risk Factors	52
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	52
ITEM 3. Defaults Upon Senior Securities	53
ITEM 4. Mine Safety Disclosures	53
ITEM 5. Other Information	53
ITEM 6. Exhibits	54
SIGNATURES	56

WHERE YOU CAN FIND MORE INFORMATION:

We file and furnish annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, which we refer to as the SEC. You may read and copy any materials that we file or furnish with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. We file and furnish information electronically with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file or furnish electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov. We also maintain a web site at http://www.lxp.com through which you can obtain copies of documents that we file or furnish with the SEC. The contents of that web site are not incorporated by reference in or otherwise a part of this Quarterly Report on Form 10-Q or any other document that we file or furnish with the SEC.

3

PART I. - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share and per share data)

	September 30, 2017			December 31, 2016
Assets:
Real estate, at cost	$	3,837,705		$	3,533,172
Real estate - intangible assets	595,904			597,294
Investments in real estate under construction	—			106,652
	4,433,609			4,237,118
Less: accumulated depreciation and amortization	1,200,814			1,208,792
Real estate, net	3,232,795			3,028,326
Assets held for sale	8,638			23,808
Cash and cash equivalents	140,545			86,637
Restricted cash	34,946			31,142
Investment in and advances to non-consolidated entities	60,683			67,125
Deferred expenses, net	32,426			33,360
Loans receivable, net	—			94,210
Rent receivable – current	6,388			7,516
Rent receivable – deferred	46,611			31,455
Other assets	32,124			37,888
Total assets	$	3,595,156		$	3,441,467
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	670,345		$	738,047
Revolving credit facility borrowings	200,000			—
Term loans payable, net	596,369			501,093
Senior notes payable, net	494,989			494,362
Trust preferred securities, net	127,171			127,096
Dividends payable	48,494			47,264
Liabilities held for sale	442			191
Accounts payable and other liabilities	36,728			59,601
Accrued interest payable	11,683			6,704
Deferred revenue - including below market leases, net	34,069			39,895
Prepaid rent	15,371			14,723
Total liabilities	2,235,661			2,028,976
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding	94,016			94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 240,643,775 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively	24			24
Additional paid-in-capital	2,824,379			2,800,736
Accumulated distributions in excess of net income	(1,576,459		)	(1,500,966		)
Accumulated other comprehensive income (loss)	510			(1,033		)
Total shareholders’ equity	1,342,470			1,392,777
Noncontrolling interests	17,025			19,714
Total equity	1,359,495			1,412,491
Total liabilities and equity	$	3,595,156		$	3,441,467

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except share and per share data)

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Gross revenues:
Rental	$	89,704		$	98,602		$	265,923		$	310,804
Tenant reimbursements	7,985			7,379			23,549			23,366
Total gross revenues	97,689			105,981			289,472			334,170
Expense applicable to revenues:
Depreciation and amortization	(43,495		)	(40,288		)	(128,706		)	(124,687		)
Property operating	(11,694		)	(11,472		)	(36,784		)	(34,843		)
General and administrative	(7,963		)	(7,510		)	(25,561		)	(23,032		)
Litigation reserve	(2,050		)	—			(2,050		)	—
Non-operating income	1,005			3,080			4,997			9,500
Interest and amortization expense	(18,887		)	(23,001		)	(57,828		)	(68,573		)
Debt satisfaction gains (charges), net	2,424			2,538			2,378			(818		)
Impairment charges and loan loss	(21,986		)	(72,890		)	(43,577		)	(75,904		)
Gains on sales of properties	10,645			16,072			55,078			58,413
Income (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entities	5,688			(27,490		)	57,419			74,226
Provision for income taxes	(375		)	(462		)	(1,174		)	(1,099		)
Equity in earnings (losses) of non-consolidated entities	283			340			(1,064		)	6,394
Net income (loss)	5,596			(27,612		)	55,181			79,521
Less net (income) loss attributable to noncontrolling interests	(55		)	2,260			(448		)	102
Net income (loss) attributable to Lexington Realty Trust shareholders	5,541			(25,352		)	54,733			79,623
Dividends attributable to preferred shares – Series C	(1,573		)	(1,573		)	(4,718		)	(4,718		)
Allocation to participating securities	(52		)	(50		)	(183		)	(187		)
Net income (loss) attributable to common shareholders	$	3,916		$	(26,975	)	$	49,832		$	74,718
Net income (loss) attributable to common shareholders - per common share basic	$	0.02		$	(0.12	)	$	0.21		$	0.32
Weighted-average common shares outstanding – basic	237,989,098			234,207,396			237,632,572			233,151,600
Net income (loss) attributable to common shareholders - per common share diluted	$	0.02		$	(0.12	)	$	0.21		$	0.31
Weighted-average common shares outstanding – diluted	241,702,715			234,207,396			241,442,227			237,215,883

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited and in thousands)

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	5,596		$	(27,612	)	$	55,181		$	79,521
Other comprehensive income (loss):
Change in unrealized gain (loss) on interest rate swaps, net	67			2,637			1,543			(2,944		)
Other comprehensive income (loss)	67			2,637			1,543			(2,944		)
Comprehensive income (loss)	5,663			(24,975		)	56,724			76,577
Comprehensive (income) loss attributable to noncontrolling interests	(55		)	2,260			(448		)	102
Comprehensive income (loss) attributable to Lexington Realty Trust shareholders	$	5,608		$	(22,715	)	$	56,276		$	76,679

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited and in thousands)

Nine Months ended September 30, 2017				Lexington Realty Trust Shareholders
	Total			Preferred Shares		Common Shares		Additional Paid-in-Capital		Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
Balance December 31, 2016	$	1,412,491		$	94,016	$	24	$	2,800,736	$	(1,500,966	)	$	(1,033	)	$	19,714
Redemption of noncontrolling OP units for common shares	—			—		—		574		—			—			(574		)
Issuance of common shares and deferred compensation amortization, net	23,069			—		—		23,069		—			—			—
Dividends/distributions	(132,789		)	—		—		—		(130,226		)	—			(2,563		)
Net income	55,181			—		—		—		54,733			—			448
Other comprehensive income	1,543			—		—		—		—			1,543			—
Balance September 30, 2017	$	1,359,495		$	94,016	$	24	$	2,824,379	$	(1,576,459	)	$	510		$	17,025

Nine Months ended September 30, 2016				Lexington Realty Trust Shareholders
	Total			Preferred Shares		Common Shares		Additional Paid-in-Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
Balance December 31, 2015	$	1,462,531		$	94,016	$	23	$	2,776,837		$	(1,428,908	)	$	(1,939	)	$	22,502
Issuance of common shares upon conversion of convertible notes	12,027			—		—		12,027			—			—			—
Repurchase of common shares	(8,973		)	—		—		(8,973		)	—			—			—
Redemption of noncontrolling OP units for common shares	—			—		—		31			—			—			(31		)
Issuance of common shares and deferred compensation amortization, net	9,045			—		1		9,044			—			—			—
Dividends/distributions	(128,319		)	—		—		—			(125,791		)	—			(2,528		)
Net income (loss)	79,521			—		—		—			79,623			—			(102		)
Other comprehensive loss	(2,944		)	—		—		—			—			(2,944		)	—
Balance September 30, 2016	$	1,422,888		$	94,016	$	24	$	2,788,966		$	(1,475,076	)	$	(4,883	)	$	19,841

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

	Nine Months ended September 30,
	2017			2016
Net cash provided by operating activities:	$	172,581		$	180,583
Cash flows from investing activities:
Acquisition of real estate, including intangible assets	(418,574		)	(70,297		)
Investment in real estate under construction	(81,364		)	(105,548		)
Capital expenditures	(13,367		)	(3,267		)
Net proceeds from sale of properties	186,499			293,634
Net proceeds from sale of non-consolidated investment	6,127			—
Principal payments received on loans receivable	89,908			214
Investments in and advances to non-consolidated entities	(4,068		)	(33,554		)
Distributions from non-consolidated entities in excess of accumulated earnings	477			7,299
Increase in deferred leasing costs	(5,284		)	(6,165		)
Change in restricted cash	(5,843		)	(32,450		)
Change in real estate deposits, net	10,938			(20,566		)
Net cash provided by (used in) investing activities	(234,551		)	29,300
Cash flows from financing activities:
Dividends to common and preferred shareholders	(128,996		)	(123,287		)
Principal amortization payments	(23,243		)	(20,887		)
Principal payments on debt, excluding normal amortization	(41,488		)	(103,473		)
Retirement of convertible notes	—			(672		)
Proceeds from term loans	95,000			—
Change in revolving credit facility borrowings, net	200,000			(177,000		)
Payment of developer liabilities	—			(4,016		)
Change in deferred financing costs	(1,252		)	(1,841		)
Proceeds of mortgages and notes payable	—			254,650
Change in restricted cash	1,572			—
Cash distributions to noncontrolling interests	(2,563		)	(2,528		)
Issuance of common shares, net	16,848			2,686
Repurchase of common shares	—			(8,973		)
Net cash provided by (used in) financing activities	115,878			(185,341		)
Change in cash and cash equivalents	53,908			24,542
Cash and cash equivalents, at beginning of period	86,637			93,249
Cash and cash equivalents, at end of period	$	140,545		$	117,791

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(1) The Company and Financial Statement Presentation

Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a diversified portfolio of equity and, from time to time, debt investments in single-tenant commercial properties.

As of September 30, 2017, the Company had ownership interests in approximately 180 consolidated real estate properties, located in 38 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries.

As of September 30, 2017, the Company operated in a manner intended to enable it to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities historically prohibited for REITs in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities.

The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, and (4) investments in joint ventures. References to “OP units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and nine months ended September 30, 2017 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 1, 2017 (“Annual Report”).

Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP.

9

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The Company determined that it was the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities, including LCIF, in which the Company has an approximate 96% interest. See the unaudited condensed consolidated financial statements of LCIF included within this Quarterly Report.

The Company has a joint venture limited partnership with a developer which is a consolidated VIE. In January 2017, the joint venture completed the development of an office campus in Lake Jackson, Texas. The Company currently has a 100% interest in the joint venture; however, the developer has certain protective rights, and, upon project close-out, the developer will be credited with a notional capital account for a profit interest and certain cost savings. As of September 30, 2017, the joint venture had $144,169 in real estate, net.

The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of September 30, 2017, the VIEs' mortgages and notes payable are non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Real estate, net	$	790,185	$	778,265
Total assets	$	898,620	$	899,801
Mortgages and notes payable, net	$	360,426	$	364,099
Total liabilities	$	371,000	$	395,332

Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.

10

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Revision to Previously Issued Financial Statements. During the quarter ended December 31, 2016, the Company corrected an immaterial error in the treatment of a lease termination payment received in the quarter ended June 30, 2016 in the amount of $7,685. The lease termination payment was originally amortized over the life of the new tenant lease that necessitated the lease termination. As corrected, the payment was fully recognized in the Company's total gross revenues in the quarter ended June 30, 2016.

The Company concluded that the error noted above was not material to any historical periods presented. However, in order to correctly present the treatment of the lease termination payment, management elected to revise previously issued financial statements in the Company's next subsequent periodic filing that included such financial statements. The following table shows the affected line items within the Company's unaudited condensed consolidated financial statements:

Three Months ended September 30, 2016
	As Originally Reported			Correction			As Adjusted
Total gross revenues	$	106,331		$	(350	)	$	105,981
Net loss	$	(27,262	)	$	(350	)	$	(27,612	)
Net loss attributable to common shareholders	$	(26,653	)	$	(322	)	$	(26,975	)
Net loss attributable to common shareholders - basic per share	$	(0.11	)	$	(0.01	)	$	(0.12	)
Net loss attributable to common shareholders - diluted per share	$	(0.11	)	$	(0.01	)	$	(0.12	)

Nine Months ended September 30, 2016
	As Originally Reported		Correction		As Adjusted
Total gross revenues	$	327,524	$	6,646	$	334,170
Net income	$	72,875	$	6,646	$	79,521
Net income attributable to common shareholders	$	68,310	$	6,408	$	74,718
Net income attributable to common shareholders - basic per share	$	0.29	$	0.03	$	0.32
Net income attributable to common shareholders - diluted per share	$	0.28	$	0.03	$	0.31

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Company is finalizing its evaluation of the impact of the standard but currently believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The

11

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Company will adopt ASU 2014-09 effective January 1, 2018 and anticipates using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that it will be required to bifurcate lease agreements to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be primarily recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 (upon adoption of ASU 2016-02). Additionally, the new ASU will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; with early adoption permitted. The Company continues to evaluate the impact of the adoption of the new guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new guidance on January 1, 2017. This new guidance did not have a material impact on the Company's consolidated financial statements. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however early adoption is permitted. The Company does not believe this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Company's consolidated statement of cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate.  The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company will adopt ASU 2017-05 effective January 1, 2018, along with the adoption of ASU 2014-09, and it is not expected to have a material impact on its consolidated financial statements.

12

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

(2) Earnings Per Share

A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016:

	Three Months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
BASIC
Net income (loss) attributable to common shareholders	$	3,916		$	(26,975	)	$	49,832		$	74,718
Weighted-average number of common shares outstanding - basic	237,989,098			234,207,396			237,632,572			233,151,600
Net income (loss) attributable to common shareholders - per common share basic	$	0.02		$	(0.12	)	$	0.21		$	0.32
DILUTED
Net income (loss) attributable to common shareholders - basic	$	3,916		$	(26,975	)	$	49,832		$	74,718
Impact of assumed conversions	(173		)	—			(192		)	(845		)
Net income (loss) attributable to common shareholders	$	3,743		$	(26,975	)	$	49,640		$	73,873
Weighted-average common shares outstanding - basic	237,989,098			234,207,396			237,632,572			233,151,600
Effect of dilutive securities:
Share options	66,748			—			95,788			246,166
OP Units	3,646,869			—			3,713,867			3,818,117
Weighted-average common shares outstanding - diluted	241,702,715			234,207,396			241,442,227			237,215,883
Net income (loss) attributable to common shareholders - per common share diluted	$	0.02		$	(0.12	)	$	0.21		$	0.31

For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods.

13

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(3) Investments in Real Estate and Real Estate Under Construction

The Company completed the following acquisition and build-to-suit transactions during the nine months ended September 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
			$	587,583		$	25,870	$	501,547	$	62,956	$	(2,790	)

(1) Completed the construction of the final building of a four-building project. Initial cost basis excludes estimated developer partner payout of approximately $8,000.

The Company recognized aggregate transaction costs of $1,100 and $329 for the nine months ended September 30, 2017 and 2016, respectively, which are included as property operating expenses within the Company's unaudited condensed consolidated statements of operations.

From time to time, the Company is engaged in various forms of build-to-suit development activities. The Company, through lender subsidiaries and property owner subsidiaries, may enter into the following acquisition, development and construction arrangements: (1) lend funds to construct a build-to-suit project subject to a single-tenant lease with an agreement to purchase the property upon completion of construction and commencement of the single-tenant lease, (2) hire a developer to construct a built-to-suit project on owned property leased to a single tenant, (3) fund the construction of a build-to-suit project on owned property pursuant to the terms of a single-tenant lease or (4) enter into a purchase and sale agreement with a developer to acquire a single-tenant build-to-suit property upon completion of construction and commencement of a single-tenant lease. As of September 30, 2017, the Company had no development arrangements outstanding. As of December 31, 2016, the Company's aggregate investment in development arrangements was $106,652, which included $3,442 of capitalized interest and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets.

14

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

As of September 30, 2017, the Company had the following forward purchase commitments:

Location	Square Feet (000's)	Property Type	Maximum Acquisition Cost		Estimated Acquisition Date	Approximate Lease Term (Yrs)
Warren, MI(1)	260	Industrial	$	47,000	4Q 17	15
Romulus, MI	500	Industrial	39,330		4Q 17	15
Lafayette, IN	309	Industrial	17,450		4Q 17	7
	1,069		$	103,780

(1) A $4,600 letter of credit secures the Company's obligation to purchase the property.

The Company can give no assurances that any of these forward purchase commitments will be consummated or, if consummated, will perform to the Company's expectations.

(4) Property Dispositions and Real Estate Impairment

During the nine months ended September 30, 2017, the Company disposed of its interests in various properties for an aggregate gross sale price of $190,368 and conveyed a vacant office property, along with its escrow deposits, in satisfaction of a $3,496 non-recourse mortgage loan. During the nine months ended September 30, 2016, the Company disposed of its interests in various properties, including land investments, for an aggregate gross sale price of $561,817 and conveyed a vacant office property, along with its escrow deposits, in satisfaction of a $14,118 non-recourse mortgage loan; however, the lender brought a claim under the related non-recourse carve out guaranty (see note 13).

During the nine months ended September 30, 2017 and 2016, the Company recognized aggregate gains on sales of properties of $55,078 and $58,413, respectively. In addition, during the nine months ended September 30, 2017 and 2016, the Company recognized debt satisfaction gains (charges), net of $2,381 and $(381), respectively, relating to properties disposed of, including conveyed properties.

As of September 30, 2017 and December 31, 2016, the Company had one property and two properties, respectively, classified as held for sale.

Assets and liabilities of held for sale properties as of September 30, 2017 and December 31, 2016 consisted of the following:

	September 30, 2017		December 31, 2016
Assets:
Real estate, at cost	$	8,607	$	25,957
Real estate, intangible assets	—		7,789
Accumulated depreciation and amortization	—		(13,346		)
Rent receivable - current	11		—
Rent receivable - deferred	—		1,715
Other assets	20		1,693
	$	8,638	$	23,808
Liabilities:
Other	$	442	$	191
	$	442	$	191

The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the nine months ended September 30, 2017 and 2016, the Company recognized aggregate impairment charges of $38,283 and $75,904, respectively, on properties disposed of and properties held for use.

15

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(5) Loans Receivable

As of September 30, 2017, all of the Company's loans receivable were fully satisfied. As of December 31, 2016, the Company's loans receivable were comprised primarily of mortgage loans on real estate.

The following is a summary of the Company's loans receivable as of December 31, 2016:

	Loan carrying-value(1)
Loan		12/31/2016		Interest Rate		Maturity Date
Kennewick, WA(2)		$	85,709	9.00	%	05/2022
Oklahoma City, OK(3)		8,501		11.50	%	03/2016
		$	94,210

(1) Loan carrying value includes accrued interest and is net of origination costs, if any.

(2) Loan provided for a current pay rate of 8.75%, an accrual rate of 9.0% and a balloon of $87,245 at maturity. During the nine months ended September 30, 2017, the loan was assigned to a third party for 94% of its principal balance. The Company recognized a $5,294 loan loss on the transaction.

(3) In June 2015, the Company loaned a tenant-in-common $8,420. The loan was secured by the tenant-in-common's interest in an office property, in which the Company had a 40% tenant-in-common interest. The loan was satisfied in full in February 2017. The Company incurred professional fees of $376 to collect this loan. Such fees are included in general and administrative expenses on the Company's unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017.

(6)    Fair Value Measurements

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	September 30, 2017		(Level 1)		(Level 2)		(Level 3)
Interest rate swap assets	$	510	$	—	$	510	$	—
Impaired real estate assets*	$	20,264	$	—	$	—	$	20,264

	Balance			Fair Value Measurements Using
Description	December 31, 2016			(Level 1)		(Level 2)			(Level 3)
Interest rate swap assets	$	44		$	—	$	44		$	—
Impaired real estate assets*	$	15,801		$	—	$	—		$	15,801
Interest rate swap liabilities	$	(1,077	)	$	—	$	(1,077	)	$	—

*Represents a non-recurring fair value measurement, including assets held for sale. Fair value as of the date of impairment.

16

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of September 30, 2017 and December 31, 2016.

	As of September 30, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Loans Receivable	$	—	$	—	$	94,210	$	94,911
Liabilities
Debt	$	2,088,874	$	2,058,863	$	1,860,598	$	1,814,824

The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2017 and December 31, 2016, the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps have been classified in Level 2 of the fair value hierarchy.

The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

The Company estimated the fair values of its loans receivable utilizing Level 3 inputs by using a discounted cash flow analysis consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use and/or the estimated value of the underlying collateral.

The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates, except for the Company's senior notes payable. The Company determines the fair value of its senior notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

17

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(7) Investment in and Advances to Non-Consolidated Entities

As of September 30, 2017, the Company had ownership interests ranging from 15% to 25% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $46,661 at September 30, 2017 (the Company's proportionate share was $8,395).

In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized gains of $1,452 and $5,378, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities.

During the nine months ended September 30, 2017, the Company recognized an impairment charge of $3,512 on its investment in a retail property in Palm Beach Gardens, Florida due to the bankruptcy of its tenant. This impairment charge reduced the Company's investment balance to zero.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of September 30, 2017, the Company had a 25% equity interest in the joint venture. The joint venture completed the project during 2016 for a total construction cost of $79,964. The Company was contractually obligated to provide construction financing to the joint venture up to $56,686. As of September 30, 2017, the Company's loan balance, net of origination costs, of $48,771 was included in investment in and advances to non-consolidated entities.

(8) Debt

The Company had the following mortgages and notes payable outstanding as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Mortgages and notes payable	$	676,935		$	745,173
Unamortized debt issuance costs	(6,590		)	(7,126		)
	$	670,345		$	738,047

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at September 30, 2017 and December 31, 2016 and all mortgages and notes payables mature between 2017 and 2036 as of September 30, 2017. The weighted-average interest rate was 4.6% at September 30, 2017 and December 31, 2016.

The Company had the following senior notes outstanding as of September 30, 2017 and December 31, 2016:

Issue Date	September 30, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized discount	(1,576		)	(1,780		)
Unamortized debt issuance cost	(3,435		)	(3,858		)
	$	494,989		$	494,362

Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

18

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

In September 2017, the Company's $905,000 unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1,105,000. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the revolving credit facility had $200,000 borrowings outstanding, $4,600 of letters of credit and availability of $300,400, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,631 and $3,907 as of September 30, 2017 and December 31, 2016, respectively.

The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at September 30, 2017.

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and bear interest at a variable rate of three month LIBOR plus 170 basis points thereafter through maturity. The interest rate at September 30, 2017 was 3.011%. As of September 30, 2017 and December 31, 2016, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,949 and $2,024, respectively, of unamortized debt issuance costs.

During the nine months ended September 30, 2017 and 2016, the Company incurred debt satisfaction charges, net of $3 and $437, respectively, on the retirement of various debt instruments, other than those disclosed elsewhere in the Company's condensed consolidated financial statements.

(9) Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.

Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable-rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

19

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the nine months ended September 30, 2017 and 2016.

The Company has designated the interest-rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rate on $505,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the term loans. During the next 12 months, the Company estimates that an additional $297 will be reclassified as a decrease to interest expense.

As of September 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	10	$505,000

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016.

	As of September 30, 2017			As of December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Asset	Other Assets	$	510	Other Assets	$	44
Interest Rate Swap Liability	Accounts Payable and Other Liabilities	$	—	Accounts Payable and Other Liabilities	$	(1,077	)

The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016.

Derivatives in Cash Flow	Amount of Income (Loss) Recognized in OCI on Derivatives (Effective Portion) September 30,					Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) September 30,
Hedging Relationships	2017		2016				2017		2016
Interest Rate Swaps	$	581	$	(6,035	)	Interest expense	$	962	$	3,091

The Company's agreements with swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of September 30, 2017, the Company had not posted any collateral related to the agreements.

20

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(10) Concentration of Risk

The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the nine months ended September 30, 2017 and 2016, no single tenant represented greater than 10% of rental revenues.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions.

(11) Equity

Shareholders' Equity. During the nine months ended September 30, 2017, the Company issued 1,593,603 common shares under its At-The-Market offering program and generated aggregate gross proceeds of $17,362. During the nine months ended September 30, 2016, the Company issued 577,823 common shares under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $4,115.

During the nine months ended September 30, 2017 and 2016, the Company granted common shares to certain employees as follows:

	Nine Months ended September 30,
	2017	2016
Performance Shares(1)
Shares granted:
Index - 1Q	106,706	404,466
Peer - 1Q	106,705	404,463
Index - 2Q	163,466	—
Peer - 2Q	163,463	—
Grant date fair value per share:(2)
Index - 1Q	$6.82	$4.53
Peer - 1Q	$6.34	$4.58
Index - 2Q	$4.05	—
Peer - 2Q	$4.27	—
Non-Vested Common Shares:(3)
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

(1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. The 2Q shares were subject to shareholder approval, which was obtained in May 2017.

(2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model.

(3) The shares vest ratably over a three-year service period.

In addition, during the nine months ended September 30, 2017 and 2016, the Company issued 44,238 and 43,503, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $463 and $350, respectively.

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. During the nine months ended September 30, 2016, the Company repurchased 1,184,113 common shares, at an average price of $7.56 per common share. No repurchases occurred during the nine months ended September 30, 2017.

21

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:

	Nine Months ended September 30,
	2017			2016
Balance at beginning of period	$	(1,033	)	$	(1,939	)
Other comprehensive income (loss) before reclassifications	581			(6,035		)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	962			3,091
Balance at end of period	$	510		$	(4,883	)

Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued 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 September 30, 2017, there were approximately 3,225,000 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.

(12) Related Party Transactions

In connection with efforts to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provided that the Company would reimburse investors providing the funds for such financing if the following occured: (1) the joint venture received such funds, (2) the USCIS denied the financing solely because the project was not permitted under the EB-5 visa program, and (3) the joint venture failed to return such funds.  As of September 30, 2017, USCIS approved the project, and the guaranty terminated by its terms.

In addition, in connection with efforts, on a non-binding basis, to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina owned by LCIF, LCIF has agreed to reimburse the Chairman's affiliate up to approximately $107 for its expenses, but no expenses were reimbursed as of September 30, 2017.

There were no other related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report.

22

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(13) Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, including in Note 12 above, and previously disclosed, the Company has the following commitments and contingencies.

The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion, but no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement.

From time to time, the Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations.

GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015)

On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey.  The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term.  The lender claimed approximately $9,200 in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto.

The lender claimed that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The limited guaranty provides that the guarantor's liability for the guaranteed obligations shall not exceed $10,000.  The Company filed a motion to dismiss, which was generally denied. The parties conducted discovery consisting of document production. The Company recorded a $2,050 litigation reserve during the quarter ended September 30, 2017 relating to this litigation as the Company determined that a liability was "probable" (as defined by FASB ASC 450-20-20). A mediation was held on October 5, 2017, but a settlement was not reached that day. Following the mediation, a settlement agreement was executed that requires a $2,050 payment.

The lender also brought a foreclosure action against the property owner subsidiary. A foreclosure sale was held September 13, 2016 and the lender acquired the property for a nominal amount.

During the nine months ended September 30, 2017, the Company incurred $2,226 in legal costs relating to this litigation, which are included in general and administrative expense on the Company's unaudited condensed consolidated statement of operations.

23

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(14) Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during the nine months ended September 30, 2017 and 2016, the Company paid $50,691 and $62,995, respectively, for interest and $1,687 and $1,163, respectively, for income taxes.

During the nine months ended September 30, 2016, the Company sold its interests in certain properties, which included the assumption by the buyers of such properties of $242,269 of the related non-recourse mortgage debt.

(15) Subsequent Events

Subsequent to September 30, 2017 and in addition to disclosures elsewhere in the unaudited condensed consolidated financial statements, the Company:

• acquired an industrial property in Lafayette, Indiana for $17,450;

• disposed of three properties to unrelated third parties for an aggregate gross sale price of $19,043; and

• transferred an office property in Lisle, Illinois to its lender in full satisfaction of the related $9,120 non-recourse mortgage.

24

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands)

	September 30, 2017		December 31, 2016
Assets:
Real estate, at cost	$	761,733	$	731,202
Real estate - intangible assets	114,134		104,761
Investment in real estate under construction	—		40,443
	875,867		876,406
Less: accumulated depreciation and amortization	234,456		236,930
Real estate, net	641,411		639,476
Cash and cash equivalents	66,887		52,031
Restricted cash	1,540		1,545
Investment in and advances to non-consolidated entities	5,738		5,526
Deferred expenses, net	6,543		5,070
Rent receivable - current	233		358
Rent receivable - deferred	20,616		17,449
Related party advances, net	—		5,967
Other assets	2,713		1,182
Total assets	$	745,681	$	728,604
Liabilities and Partners' Capital:
Liabilities:
Mortgages and notes payable, net	$	168,490	$	169,212
Co-borrower debt	165,839		146,404
Related party advances, net	2,157		—
Accounts payable and other liabilities	5,197		3,559
Accrued interest payable	663		673
Deferred revenue - including below market leases, net	853		1,003
Distributions payable	14,742		16,916
Prepaid rent	3,015		3,214
Total liabilities	360,956		340,981
Commitments and contingencies
Partners' capital	384,725		387,623
Total liabilities and partners' capital	$	745,681	$	728,604

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

25

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except unit data)

	Three Months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Gross revenues:
Rental	$	19,126		$	28,496		$	55,125		$	98,648
Tenant reimbursements	2,116			2,062			6,044			6,782
Total gross revenues	21,242			30,558			61,169			105,430
Expense applicable to revenues:
Depreciation and amortization	(10,114		)	(7,793		)	(28,495		)	(25,402		)
Property operating	(3,000		)	(3,371		)	(9,599		)	(11,079		)
General and administrative	(1,727		)	(2,643		)	(5,019		)	(7,112		)
Non-operating income	3			44			235			299
Interest and amortization expense	(4,099		)	(7,109		)	(11,438		)	(23,835		)
Debt satisfaction charges, net	—			(5,773		)	—			(7,388		)
Impairment charges	(6,802		)	(65,509		)	(12,061		)	(67,935		)
Gains on sales of properties	—			—			—			16,029
Loss before provision for income taxes and equity in earnings of non-consolidated entities	(4,497		)	(61,596		)	(5,208		)	(20,993		)
Provision for income taxes	(4		)	(32		)	(30		)	(57		)
Equity in earnings of non-consolidated entities	79			49			338			252
Net loss	$	(4,422	)	$	(61,579	)	$	(4,900	)	$	(20,798	)
Net loss per unit	$	(0.05	)	$	(0.74	)	$	(0.06	)	$	(0.25	)
Weighted-average units outstanding	83,125,058			83,241,396			83,202,190			83,241,396

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

26

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

(Unaudited and in thousands, except unit amounts)

Nine Months ended September 30, 2017	Units		Partners' Capital
Balance December 31, 2016	83,241,396		$	387,623
Changes in co-borrower debt allocation	—		180,565
Redemption of OP units	(2,675,785	)	(129,990		)
Distributions	—		(48,573		)
Net loss	—		(4,900		)
Balance September 30, 2017	80,565,611		$	384,725
Nine Months ended September 30, 2016
Balance December 31, 2015	83,241,396		$	461,657
Changes in co-borrower debt allocation	—		(17,179		)
Distributions	—		(49,900		)
Net loss	—		(20,798		)
Balance September 30, 2016	83,241,396		$	373,780

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

27

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

	Nine Months ended September 30,
	2017			2016
Net cash provided by operating activities	$	32,685		$	30,975
Cash flows from investing activities:
Acquisition of real estate, including intangible assets	(24,317		)	—
Investments in real estate under construction	(20,894		)	(23,390		)
Capital expenditures	(3,925		)	(1,226		)
Net proceeds from the sale of properties	7,106			185,219
Investment in and advances to non-consolidated entities	(1,067		)	(81		)
Distributions from non-consolidated entities in excess of accumulated earnings	855			425
Increase in deferred leasing costs	(2,157		)	(997		)
Change in restricted cash	5			812
Real estate deposits	(24		)	1,932
Net cash provided by (used in) investing activities	(44,418		)	162,694
Cash flows from financing activities:
Distributions to partners	(50,747		)	(50,200		)
Principal amortization payments	(785		)	(1,053		)
Increase in deferred financing costs	(13		)	(79		)
Principal payments on debt, excluding normal amortization	—			(23,934		)
Co-borrower debt borrowings (payments)	200,000			(58,000		)
OP unit redemptions	(129,990		)	—
Related party advances, net	8,124			553
Net cash provided by (used in) financing activities	26,589			(132,713		)
Change in cash and cash equivalents	14,856			60,956
Cash and cash equivalents, at beginning of period	52,031			19,130
Cash and cash equivalents, at end of period	$	66,887		$	80,086

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

28

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

(1)    The Partnership and Financial Statement Presentation

Lepercq Corporate Income Fund L.P. (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Partnership”) was organized in 1986 as a limited partnership under the Delaware Revised Uniform Limited Partnership Act. The Partnership's sole general partner, Lex GP-1 Trust (the “General Partner”), is a wholly-owned subsidiary of Lexington Realty Trust (“Lexington”). The Partnership serves as an operating partnership subsidiary for Lexington. As of September 30, 2017, Lexington, through Lex LP-1 Trust, a wholly-owned subsidiary, and the General Partner, owned approximately 96% of the outstanding units of the Partnership.

As of September 30, 2017, the Partnership had ownership interests in 33 consolidated real estate properties, located in 21 states. The properties in which the Partnership has an interest are leased to tenants in various industries.

The assets and credit of each property owner subsidiary of the Partnership with a property subject to a mortgage loan are not available to creditors to satisfy the debt and the other obligations of any other person, including any other property owner subsidiary of the Partnership or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and nine months ended September 30, 2017 have been prepared by the Partnership in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Partnership's audited consolidated financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 1, 2017 (“Annual Report”).

Basis of Presentation and Consolidation. The Partnership's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities that the Partnership does not control and entities that are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP.

Earnings Per Unit. Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of units outstanding during the period. There are no potential dilutive securities.

Unit Redemptions. The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for shares of beneficial interests classified as common stock of Lexington, par value $0.0001 per share ("common shares"), on a one to approximately 1.13 basis, subject to future adjustments. These units are not mandatorily redeemable by the Partnership. As of September 30, 2017, Lexington's common shares had a closing price of $10.22 per share. The estimated fair value of these units was $37,117, assuming all outstanding limited partner units not held by Lexington were redeemed on such date.

29

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

Allocation of Overhead Expenses. The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues.

Distributions; Allocations of Income and Loss. As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss. The Partnership paid or accrued gross distributions of $48,573 ($0.58 per weighted-average unit) and $49,900 ($0.60 per weighted-average unit) to its partners during the nine months ended September 30, 2017 and 2016, respectively.

Use of Estimates. The Partnership has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk.

Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of such obligations as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors.

Revision to Previously Issued Financial Statements. During the quarter ended December 31, 2016, the Partnership corrected an immaterial error in the treatment of a lease termination payment received in the quarter of June 30, 2016 in the amount of $7,685. The lease termination payment was originally amortized over the life of the new tenant lease that necessitated the lease termination. As corrected, the payment was fully recognized in the Partnership's total gross revenues in the quarter ended June 30, 2016.

30

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

The Partnership concluded that the error noted above was not material to any historical periods presented. However, in order to correctly present the treatment of the lease termination payment, management elected to revise previously issued financial statements in the Partnership's next subsequent periodic filing that included such financial statements. The following table shows the affected line items within the Partnership's unaudited condensed consolidated financial statements:

For the three months ended September 30, 2016
	As Originally Reported			Correction			As Adjusted
Total gross revenues	$	30,908		$	(350	)	$	30,558
Net loss	$	(60,901	)	$	(678	)	$	(61,579	)
Net loss per unit	$	(0.73	)	$	(0.01	)	$	(0.74	)

For the nine months ended September 30, 2016
	As Originally Reported			Correction		As Adjusted
Total gross revenues	$	98,784		$	6,646	$	105,430
Net income (loss)	$	(26,652	)	$	5,854	$	(20,798	)
Net income (loss) per unit	$	(0.32	)	$	0.07	$	(0.25	)

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Partnership is finalizing its evaluation of the impact of the standard but currently believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Partnership will adopt ASU 2014-09 effective January 1, 2018 and anticipates using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the Partnership does not expect the ASU to have a material impact on the consolidated financial statements upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that it will be required to bifurcate lease agreements to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be primarily recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 (upon adoption of ASU 2016-02). Additionally, the new ASU will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; with early adoption permitted. The Partnership continues to evaluate the impact of the adoption of the new guidance on its consolidated financial statements.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however early adoption is permitted. The Partnership does not believe this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Partnership's consolidated statement of cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership will adopt ASU 2017-05 effective January 1, 2018, along with ASU 2014-09, and it is not expected to have a material impact on its consolidated financial statements.

(2)     Investment in Real Estate and Real Estate Under Construction

The Partnership completed the following acquisitions and build-to-suit arrangements during the nine months ended September 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	April 2017	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166
			$	85,656		$	6,937	$	65,049	$	13,670

During the nine months ended September 30, 2017, the Partnership disposed of its interest in two vacant office properties for an aggregate gross sale price of $7,591 and recognized aggregate impairment charges of $5,259. During the nine months ended September 30, 2016, the Partnership disposed of its interest in certain properties, including land investments, for an aggregate gross sale price of $445,565. The Partnership recognized aggregate gains on sales of properties of $16,029, aggregate impairment charges of $67,935 and aggregate debt satisfaction charges of $7,388 relating to properties disposed of during the nine months ended September 30, 2016. The aggregate impairment charges recorded during the nine months ended September 30, 2016, related primarily to the sale of the three land investments in New York, New York. The land investments were subject to 99-year leases with annual escalations, and the deferred rent receivable balance at the date of sale of $91,213 was written off.

32

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

The Partnership assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the nine months ended September 30, 2017, the Partnership recognized an impairment charge of $6,802 on a partially vacant office property.

(3)    Investments in and Advances to Non-Consolidated Entities

In July 2014, the Partnership acquired a 1.0% interest in an office property in Philadelphia, Pennsylvania for $263. The Partnership accounts for this investment under the cost basis of accounting.

On September 1, 2012, the Partnership acquired a 2% equity interest in Net Lease Strategic Assets Fund L.P. (“NLS”) for cash of $189 and the issuance of 457,211 limited partner units to Lexington.

The Partnership's carrying value in NLS at September 30, 2017 and December 31, 2016 was $5,436 and $5,224, respectively. The Partnership recognized net income from NLS of $323 and $236 in equity in earnings from non-consolidated entities during the nine months ended September 30, 2017 and 2016, respectively. The Partnership contributed $1,067 and $81 to NLS during the nine months ended September 30, 2017 and 2016, respectively. In addition, the Partnership received distributions of $1,178 and $661 from NLS during the nine months ended September 30, 2017 and 2016, respectively.

(4)    Fair Value Measurements

The following table presents the Partnership's assets measured at fair value as of September 30, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	September 30, 2017		(Level 1)		(Level 2)		(Level 3)
Impaired real estate assets*	$	2,090	$	—	$	—	$	2,090

* Represents a non-recurring fair value measurement as of the date of impairment.

The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of September 30, 2017 and December 31, 2016:

	As of September 30, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	334,329	$	333,181	$	315,616	$	314,509

The Partnership estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Partnership may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Partnership has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Partnership under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

33

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

The fair value of the Partnership's debt is primarily estimated utilizing Level 3 inputs by using an estimated discounted cash flow analysis, based upon estimates of market interest rates.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Partnership estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

(5)    Mortgages and Notes Payable and Co-Borrower Debt

The Partnership had the following mortgages and notes payable outstanding as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Mortgages and notes payable	$	169,173		$	169,958
Unamortized debt issuance costs	(683		)	(746		)
	$	168,490		$	169,212

Interest rates, including imputed rates, ranged from 4.0% to 6.5% at September 30, 2017 and December 31, 2016, and the mortgages and notes payable mature between 2019 and 2026. The weighted-average interest rate at September 30, 2017 and December 31, 2016 was approximately 4.7%.

Lexington's, and the Partnership's as co-borrower, $905,000 unsecured credit agreement with KeyBank National Association, as agent, was amended in September 2017 to, among other things, increase the overall facility to $1,105,000. With lender approval, Lexington can increase the size of the amended facility to an aggregate $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the revolving credit facility had $200,000 of borrowings outstanding, $4,600 of letters of credit and availability of $300,400 subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings.

Lexington was in compliance with all applicable financial covenants contained in its corporate level debt agreements at September 30, 2017.

In accordance with the guidance of ASC 405-40, the Partnership, as it is a co-borrower with Lexington, recognizes a proportion of the outstanding amounts of the above-mentioned term loans and revolving credit facility as co-borrower debt in the accompanying unaudited condensed consolidated balances sheets. In accordance with the Partnership’s partnership agreement, the Partnership is allocated a portion of these debts based on gross rental revenues, which represents its agreed to obligation. The Partnership's allocated co-borrower debt was $165,839 and $146,404 as of September 30, 2017 and December 31, 2016, respectively. Non-cash changes in co-borrower debt are recognized in partners’ capital in the accompanying unaudited condensed consolidated statements of changes in partners’ capital.

34

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

(6)    Concentration of Risk

Subject to the terms of the partnership agreement, the Partnership seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the nine months ended September 30, 2017 and 2016, the following tenants represented greater than 10% of rental revenues:

	2017		2016
Preferred Freezer Services of Richland, LLC	17.9	%	N/A
SM Ascott LLC(1)	N/A		13.1	%
Tribeca Ascott LLC(1)	N/A		11.2	%
AL-Stone Ground Tenant LLC(1)	N/A		10.2	%

(1) The Partnership net leased these individual land parcels to the tenants under non-cancellable 99-year (original term) leases. The improvements on these parcels are owned by the tenants and consist of three high-rise hotels located in New York, NY. The Partnership sold these assets in September 2016.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Partnership believes it mitigates this risk by investing in or through major financial institutions.

(7)    Related Party Transactions

The Partnership had the following related party transactions in addition to related party transactions discussed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report.

The Partnership had outstanding net advances owed from (to) Lexington of $(2,157) and $5,967 as of September 30, 2017 and December 31, 2016, respectively. The advances are payable on demand.

Lexington earned distributions of $46,732 and $48,032 during the nine months ended September 30, 2017 and 2016, respectively. In September 2017, the Partnership redeemed 2,675,785 OP units owned by Lexington that were entitled to aggregate annual distributions of $3.25 per unit for $129,990.

The Partnership was allocated interest expense by Lexington, in accordance with the partnership agreement, relating to certain lending facilities of $5,913 and $9,605 for the nine months ended September 30, 2017 and 2016, respectively.

Lexington, on behalf of the General Partner, pays for certain general administrative and other costs on behalf of the Partnership from time to time. These costs are reimbursable by the Partnership. These costs were approximately $4,911 and $7,262 for the nine months ended September 30, 2017 and 2016, respectively.

 A Lexington affiliate provides property management services for certain Partnership properties. The Partnership recognized property operating expenses of $515 and $580 for the nine months ended September 30, 2017 and 2016, respectively, for aggregate fees charged by the affiliate.

(8)    Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, the Partnership has the following commitments and contingencies.

The Partnership is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Partnership, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

35

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 and 2016

(Unaudited and dollars in thousands, except share/unit data)

The Partnership and Lexington are parties to a funding agreement under which Lexington may be required to fund distributions made on account of OP units. Pursuant to the funding agreement, if the Partnership does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington is required to fund the shortfall. Payments under the agreement will be made in the form of loans to the Partnership and will bear interest at prevailing rates as determined by Lexington in its discretion, but no less than the applicable federal rate. The Partnership's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts had been advanced under this funding agreement.

In May 2014, the Partnership guaranteed $250,000 aggregate principal amount of 4.40% Senior Notes due 2024 (“2024 Senior Notes”) issued by Lexington at an issuance price of 99.883% of the principal amount and in June 2013, the Partnership guaranteed $250,000 aggregate principal amount of 4.25% Senior Notes due 2023 (“2023 Senior Notes”) issued by Lexington at an issuance price of 99.026% of the principal amount, collectively referred to as the Senior Notes. The Senior Notes are unsecured and pay interest semi-annually in arrears. Lexington may redeem the Senior Notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

From time to time, the Partnership is directly or indirectly involved in legal proceedings arising in the ordinary course of the Partnership's business. The Partnership believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Partnership's business, financial condition and results of operations.

(9)    Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during the nine months ended September 30, 2017 and 2016, the Partnership paid $11,527 and $23,570, respectively, for interest and $121 and $33, respectively, for income taxes.

In 2016, the Partnership sold its interest in certain land investments, which included the assumption of the aggregate related non-recourse mortgage debt of $242,269.

(10)    Subsequent Events

Subsequent to September 30, 2017, the Partnership sold its interest in a vacant industrial property for $10,000.

36

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Introduction

When we use the terms “the Company,” “we,” “us” and “our,” we mean Lexington Realty Trust and all entities owned by us, including non-consolidated entities, except where it is clear that the term means only Lexington Realty Trust. When we use the terms the “Partnership” or “LCIF”, we mean Lepercq Corporate Income Fund L.P. and all entities owned by it, including non-consolidated entities, except where it is clear that the term means only LCIF. References herein to ‘‘this Quarterly Report” are to this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2017. The results of operations contained herein for the three and nine months ended September 30, 2017 and 2016 are not necessarily indicative of the results that may be expected for a full year.

The following is a discussion and analysis of the unaudited condensed consolidated financial condition and results of operations of Lexington Realty Trust and LCIF for the three and nine months ended September 30, 2017 and 2016, and significant factors that could affect their prospective financial condition and results of operations. This discussion should be read together with the accompanying unaudited condensed consolidated financial statements of the Company and the Partnership included herein and notes thereto and with the consolidated financial statements and notes thereto included in the Company's and the Partnership's most recent Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on March 1, 2017, which we refer to as the Annual Report. Historical results may not be indicative of future performance.

Forward-Looking Statements. This Quarterly Report, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects,” “may,” “plans,” “predicts,” “will,” “will likely result” or similar expressions. Readers should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performances or achievements. In particular, the factors that could cause actual results, performances or achievements to differ materially from current expectations, strategies or plans include, among others, any risks discussed below in the respective “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and under the headings “Risk Factors” in this Quarterly Report and “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report and other periodic reports filed by the Company or the Partnership with the SEC. Except as required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Accordingly, there is no assurance that our expectations will be realized.

Lexington Realty Trust:

Overview

General. We are a Maryland real estate investment trust, or REIT, that owns a diversified portfolio of equity investments in single-tenant commercial properties.

As of September 30, 2017, we had ownership interests in approximately 180 consolidated real estate properties, located in 38 states and containing an aggregate of approximately 47.9 million square feet of space, approximately 97.9% of which was leased, excluding properties subject to secured mortgage loans currently in default. The properties in which we have an interest are primarily net leased to tenants in various industries.

Our revenues and cash flows are generated predominantly from property rent receipts. As a result, growth in revenues and cash flows is directly correlated to our ability to (1) acquire income producing real estate investments and (2) re-lease properties that are vacant, or may become vacant, at favorable rental rates.

Our current business strategy is focused on enhancing our cash flow growth and stability, growing our portfolio with attractive leased investments, reducing lease rollover risk and maintaining a strong and flexible balance sheet to allow us to act on opportunities as they arise. To that end, in 2017, we continued to be an active seller of non-core assets such as vacant properties and properties subject to short-term leases, and we have invested proceeds in predominantly industrial assets.

37

Leasing Activity. Re-leasing properties that are currently vacant or as leases expire at favorable effective rates is one of our primary areas of focus for asset management. We strive to manage down our shorter-term leases and extend our weighted-average lease term on a cash basis, which was approximately 9.1 years at September 30, 2017 on a cash basis. Our weighted-average lease term at September 30, 2016 was 8.6 years on a cash basis.

During the third quarter of 2017, we entered into new leases and lease extensions encompassing approximately 1.2 million square feet. The average U.S. generally accepted accounting principles, or GAAP, base rent on these extended leases was $3.97 per square foot compared to the average GAAP base rent on these leases before extension of $3.74 per square foot. The weighted-average cost of tenant improvements and lease commissions was $2.07 per square foot for extended leases on a GAAP basis and there were no tenant improvements or lease commissions on new leases.

ThirdQuarter2017Transaction Summary.

The following summarizes our significant transactions during the three months ended September 30, 2017.

Investments:

• Acquired four industrial properties for an aggregate cost of $266.1 million. The properties are net leased for an approximate 10-year term.

• Completed the construction of the Opelika, Alabama industrial build-to-suit project for $37.3 million, which is net leased for a 25-year term.

Capital Recycling:

• Disposed of our interests in various consolidated properties for approximately $42.0 million.

Debt:

• Amended our unsecured credit agreement, increasing the borrowing capacity by $200.0 million consisting of a $105.0 million increase to the revolving credit facility, a $50.0 million increase to the term loan maturing in 2020 and a $45.0 million increase to the term loan maturing in 2021.

• Satisfied an aggregate of $25.2 million of non-recourse debt.

Acquisition and Development Activity.

Our acquisition and development activity for the past several years has consisted primarily of build-to-suit transactions whereby we (1) hire a developer, or provide funding to a tenant, to develop a property, or (2) provide capital to developers and commit to purchase the property upon completion. However, none of these transactions are done on a speculative basis without a committed tenant subject to a long-term lease.

During the nine months ended September 30, 2017, we completed the following acquisition and build-to-suit transactions:

Location	Property Type	Square Feet (000's)	Capitalized Cost (millions)		Date Acquired	Approximate Lease Term (Years)
Lake Jackson, TX (1)	Office	275	$	70.4	January 2017	20
Lebanon, IN	Industrial	742	36.2		February 2017	7
New Century, KS	Industrial	447	12.1		February 2017	10
Charlotte, NC	Office	201	61.3		April 2017	15
Cleveland, TN	Industrial	851	34.4		May 2017	7
Grand Prairie, TX	Industrial	215	24.3		June 2017	20
San Antonio, TX	Industrial	849	45.5		June 2017	10
Opelika, AL	Industrial	165	37.3		July 2017	25
McDonough, GA (2)	Industrial	1,121	66.7		August 2017	10
Byhalia, MS	Industrial	616	36.6		September 2017	10
Jackson, TN	Industrial	1,062	57.9		September 2017	10
Smyrna, TN	Industrial	1,505	104.9		September 2017	10
		8,049	$	587.6

(1) Completed the construction of the final building of a four-building project. Capitalized cost excludes estimated developer partner payout of approximately $8.0 million.

(2) Square footage includes a 220 thousand square foot expansion to be completed in 2018.

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In addition, as of September 30, 2017, we had the following forward purchase commitments:

Location	Square Feet (000's)	Property Type	Maximum Acquisition Cost (millions)		Estimated Acquisition Date	Approximate Lease Term (Yrs)
Warren, MI(1)	260	Industrial	$	47.0	4Q 17	15
Romulus, MI	500	Industrial	39.3		4Q 17	15
Lafayette, IN(2)	309	Industrial	17.5		4Q 17	7
	1,069		$	103.8

(1) A $4.6 million letter of credit secures our obligation to purchase the property.

(2) We acquired the property in October 2017.

We can give no assurances that any unconsummated transactions described in this Quarterly Report will be consummated or, if consummated, will perform to our expectations.

Critical Accounting Policies

Management's discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with GAAP. In preparing our unaudited condensed consolidated financial statements in accordance with GAAP and pursuant to the rules and regulations of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue, and expenses, and related disclosures of contingent assets and liabilities. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis, we evaluate our assumptions, judgments and estimates. Certain of our accounting policies are discussed under (1) Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report, (2) note 2 to our consolidated financial statements contained in our Annual Report and (3) note 1 to our unaudited condensed consolidated financial statements contained in this Quarterly Report. We believe there have been no material changes to the items that we disclosed as our critical accounting policies under Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report.

Liquidity and Capital Resources

Cash Flows. We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with applicable REIT requirements in both the short-term and long-term. In addition, we anticipate that cash on hand, borrowings under our unsecured revolving credit facility, capital recycling proceeds, issuances of equity, mortgage proceeds and other debt, as well as other available alternatives, will provide the necessary capital required by our business.

At September 30, 2017, we had $18.4 million and $6.6 million of property specific mortgage balloon debt due in 2017 and 2018, respectively. The 2017 non-recourse maturities aggregating $18.4 million were in maturity default at September 30, 2017. We believe we have sufficient sources of liquidity to meet obligations we are required to meet through cash on hand ($140.5 million at September 30, 2017), property sale proceeds, borrowing capacity under our unsecured revolving credit facility ($300.4 million at September 30, 2017), which expires in 2019, but can be extended by us to 2020, and future cash flows from operations.

The mortgages encumbering the properties in which we have an interest are generally non-recourse to us, such that in situations where we believe it is beneficial to satisfy a mortgage obligation by transferring title of the property to the lender, including through a foreclosure, we may do so.

Cash flows from operations were $172.6 million for the nine months ended September 30, 2017 as compared to $180.6 million for the nine months ended September 30, 2016. The decrease was primarily related to the impact of property sales and vacancies, a decrease in lease termination payments and an increase in payments of legal costs, offset by cash flows generated from acquired properties. The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on mortgage debt and payment of operating and general and administrative costs. We believe the net-lease structure of the leases encumbering a majority of the properties in which we have an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. Collection and timing of tenant rents is closely monitored by management as part of our cash management program.

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Net cash provided by (used in) investing activities totaled $(234.6) million and $29.3 million during the nine months ended September 30, 2017 and 2016, respectively. Cash used in investing activities related primarily to acquisitions of real estate and investments in real estate under construction, capital expenditures, lease costs, changes in restricted cash and investments in and advances to non-consolidated entities. Cash provided by investing activities related primarily to proceeds from the sale of properties, collection of loans receivable and changes in real estate deposits, net.

Net cash provided by (used in) financing activities totaled $115.9 million and $(185.3) million during the nine months ended September 30, 2017 and 2016, respectively. Cash provided by financing activities related primarily to proceeds of term loans and mortgages and notes payable, borrowings under our revolving credit facility and the net proceeds from the issuance of common shares. Cash used in financing activities was primarily attributable to dividend and distribution payments, payment of developer liabilities, repayment of debt obligations and repurchases of common shares.

Dividends. Dividends paid to our common and preferred shareholders were $129.0 million and $123.3 million in the nine months ended September 30, 2017 and 2016, respectively.

UPREIT Structure. As of September 30, 2017, 3.2 million units of limited partner interests, or OP units, in our operating partnership, LCIF, were outstanding not including OP units held by us. Assuming all outstanding OP units not held by us were redeemed on such date, the estimated fair value of such OP units was $37.1 million based on our closing price of $10.22 per common share on September 30, 2017 and a redemption factor of approximately 1.13 common shares per OP unit.

Financings. The following senior notes were outstanding as of September 30, 2017:

Issue Date	Face Amount ($000)		Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000	4.40	%	June 2024	99.883	%
June 2013	250,000		4.25	%	June 2023	99.026	%
	$	500,000

The senior notes are unsecured and pay interest semi-annually in arrears. We may redeem the senior notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the senior notes being redeemed plus a premium.

During September 2017, our $905.0 million unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1.105 billion. With lender approval, we can increase the size of the amended facility to an aggregate $2.01 billion. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505.0 Million Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300.0 Million Term Loan(2)	August 2020	LIBOR + 1.10%
$300.0 Million Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400.0 million. Maturity date can be extended to August 2020 at our option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the unsecured revolving credit facility had $200 million of borrowings outstanding, $4.6 million of letters of credit, and availability of $300.4 million subject to covenant compliance.

(2) Increased from $250.0 million. The interest rate ranges from LIBOR plus 0.90% to 1.75%. We previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250.0 million of outstanding LIBOR-based borrowings.

(3) Increased from $255.0 million. The interest rate ranges from LIBOR plus 0.90% to 1.75%. We previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255.0 million of outstanding LIBOR-based borrowings.

As of September 30, 2017, we were in compliance with all applicable financial covenants contained in our corporate level debt agreements.

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Results of Operations

Three months endedSeptember 30, 2017compared with three months endedSeptember 30, 2016. The increase in net income attributable to common shareholders of $30.9 million was primarily due to the items discussed below.

The decrease in total gross revenues during the three months ended September 30, 2017 of $8.3 million was primarily attributable to a decrease in rental revenue. Rental revenue decreased $8.9 million primarily due to a $17.9 million decrease in revenue from properties disposed of, primarily the New York City land investments, a $1.7 million decrease in termination income and a $1.2 million decrease in revenue from certain held properties due to changes in occupancy, partially offset by 2017 and 2016 property acquisitions rental revenue of $11.5 million.

The increase in depreciation and amortization expense of $3.2 million was primarily due to acquisitions of certain properties.

The increase in general and administrative expense of $0.5 million was primarily due to an increase in professional fees.

The $2.05 million litigation reserve recognized as of September 30, 2017, represents the probable settlement amount related to the litigation disclosed in note 13 to our consolidated financial statements.

The decrease in non-operating income of $2.1 million was due to the collection of loans receivable.

The decrease in interest and amortization expense of $4.1 million related primarily to the satisfaction of mortgage debt in connection with property sales and a decrease in the interest rate on our $129.1 million of trust preferred securities.

The decrease in impairment charges of $50.9 million related to the timing of impairment charges recognized on properties primarily due to sales, vacancies and lack of leasing prospects. In 2016, a $65.5 million impairment charge was recognized on the sale of three of our New York, New York land investments.

The decrease in gains on sales of properties of $5.4 million related to the timing of sales of properties.

The change in net (income) loss attributable to noncontrolling interests of $2.3 million related primarily to a decrease in the net loss of LCIF in 2017 compared to 2016.

Any increase in net income in future periods will be closely tied to the level of acquisitions and dispositions and leasing activity. Without acquisitions and favorable leasing activity, the sources of growth in net income are limited to index-adjusted rents (such as the consumer price index), reduced interest expense on amortizing mortgages and debt refinancings and by controlling other variable overhead costs and, periodically, gains on sales of properties. However, there are many factors beyond management's control that could offset these items including, without limitation, increased interest rates, decreased occupancy rates, tenant monetary defaults, delayed acquisitions and the other risks described in our periodic reports filed with the SEC.

Ninemonths endedSeptember 30, 2017compared withninemonths endedSeptember 30, 2016.The decrease in net income attributable to common shareholders of $24.9 million was primarily due to the items discussed below.

The decrease in total gross revenues during the nine months ended September 30, 2017 of $44.7 million was primarily attributable to a decrease in rental revenue. Rental revenue decreased $44.9 million primarily due to a $57.8 million decrease in revenue from properties disposed of, primarily the New York City land investments, a $12.5 million decrease in termination income and a $3.8 million decrease in revenue from certain held properties due to changes in occupancy, partially offset by 2017 and 2016 property acquisitions rental revenue of $28.4 million.

The increase in depreciation and amortization expense of $4.0 million was primarily due to acquisitions of certain properties.

The increase in property operating expense of $1.9 million was primarily due to costs incurred on properties acquired in 2017 and 2016, costs incurred on vacant properties prior to sale and an increase in acquisition costs, offset in part by reduced operating costs associated with sold properties.

The increase in general and administrative expenses of $2.5 million related primarily to an increase in professional fees, primarily legal fees.

The $2.05 million litigation reserve recognized as of September 30, 2017, represents the probable settlement amount related to the litigation disclosed in note 13 to our consolidated financial statements.

The decrease in non-operating income of $4.5 million was due to the collection of loans receivable.

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The decrease in interest and amortization expense of $10.7 million related primarily to the satisfaction of mortgage debt in connection with property sales and a decrease in the interest rate on our $129.1 million of trust preferred securities.

The change in debt satisfaction gains (charges), net of $3.2 million was primarily due to the timing of debt satisfactions.

The decrease in impairment charges and loan loss of $32.3 million related primarily to the timing of impairment charges recognized on properties due to sales, vacancies and lack of leasing prospects and a $5.3 million loan loss recognized on the sale of our Kennewick, Washington loan receivable in 2017. In 2016, a $65.5 million impairment charge was recognized on the sale of three of our New York, New York land investments.

The decrease in gains on sales of properties of $3.3 million related to the timing of sales of properties.

The change in equity in earnings (losses) of non-consolidated entities of $7.5 million was primarily due to the timing of gains recognized on the sale of non-consolidated investments, partially offset by an impairment charge recognized in 2017 on our investment in Palm Beach Gardens, Florida where the sole tenant filed for bankruptcy.

The change in net (income) loss attributable to noncontrolling interests of $0.6 million related primarily to a decrease in the net loss of LCIF in 2017 compared to 2016.

Same-Store Results

Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned and included in our portfolio for two comparable reporting periods, excluding properties encumbered by mortgage loans in default and the revenue associated with the expansion of properties, as applicable. We define NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), tenant reimbursements and other property income) less property operating expenses. As same-store NOI excludes the change in NOI from acquired and disposed of properties and certain other properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating same-store NOI, and accordingly same-store NOI may not be comparable to other REITs. Management believes that same-store NOI is a useful supplemental measure of the Company's operating performance. However, same-store NOI should not be viewed as an alternative measure of the Company's financial performance since it does not reflect the operations of the Company's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company's results from operations. Lexington believes that net income is the most directly comparable GAAP measure to same-store NOI.

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The following presents our consolidated same-store NOI, for the nine months ended September 30, 2017 and 2016 ($000's):

	2017			2016
Total cash base rent	$	218,871		$	218,710
Tenant reimbursements	18,788			19,807
Property operating expenses	(28,461		)	(28,388		)
Same-store NOI	$	209,198		$	210,129

Our reported same-store NOI decreased from 2016 to 2017 by 0.4%. The decrease in same-store NOI between periods primarily related to an increase in vacancy in certain of our office properties. Our historical same-store square footage leased was 97.2% at September 30, 2017 and 98.9% at September 30, 2016.

Below is a reconciliation of net income to same-store NOI for periods presented ($000's):

	Nine Months ended September 30,
	2017			2016
Net income	$	55,181		$	79,521
Interest and amortization expense	57,828			68,573
Provision for income taxes	1,174			1,099
Depreciation and amortization	128,706			124,687
General and administrative	25,561			23,032
Litigation reserve	2,050			—
Transaction costs	1,100			329
Non-operating income	(4,997		)	(9,500		)
Gains on sales of properties	(55,078		)	(58,413		)
Impairment charges and loan loss	43,577			75,904
Debt satisfaction (gains) charges, net	(2,378		)	818
Equity in (earnings) losses of non-consolidated entities	1,064			(6,394		)
Lease termination income	(2,934		)	(15,390		)
Straight-line adjustments	(12,552		)	(35,697		)
Lease incentives	1,456			1,256
Amortization of above/below market leases	1,180			1,527
NOI	240,938			251,352
Less NOI:
Disposed of properties	(2,455		)	(36,441		)
Acquired properties	(27,047		)	(2,556		)
Properties in default	(2,238		)	(2,226		)
Same-Store NOI	$	209,198		$	210,129

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Funds From Operations

We believe that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. We believe FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (or loss) computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for non-consolidated partnerships and joint ventures.” NAREIT clarified its computation of FFO to exclude impairment charges on depreciable real estate owned directly or indirectly. FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

We present FFO available to common shareholders and unitholders - basic and also present FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period. We also present Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio. We believe this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.

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The following presents a reconciliation of net income (loss) attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for the three and nine months ended September 30, 2017 and 2016 (unaudited and dollars in thousands, except share and per share amounts):

		Three Months ended September 30,						Nine Months ended September 30,
		2017			2016			2017			2016
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income (loss) attributable to common shareholders		$	3,916		$	(26,975	)	$	49,832		$	74,718
Adjustments:
	Depreciation and amortization	42,015			38,642			124,633			119,523
	Impairment charges - real estate, including non-consolidated entities	21,986			72,890			41,795			75,904
	Noncontrolling interests - OP units	(173		)	(2,507		)	(192		)	(845		)
	Amortization of leasing commissions	1,480			1,646			4,073			5,164
	Joint venture and noncontrolling interest adjustment	259			284			864			742
	Gains on sales of properties, including non-consolidated entities	(10,645		)	(16,072		)	(56,530		)	(63,791		)
	Tax on sales of properties	—			—			—			50
FFO available to common shareholders and unitholders - basic		58,838			67,908			164,475			211,465
	Preferred dividends	1,573			1,573			4,718			4,718
	Interest and amortization on 6.00% Convertible Guaranteed Notes	—			47			—			532
	Amount allocated to participating securities	52			50			183			187
FFO available to all equityholders and unitholders - diluted		60,463			69,578			169,376			216,902
	Litigation reserve	2,050			—			2,050			—
	Debt satisfaction (gains) charges, net	(2,424		)	(2,538		)	(2,378		)	818
	Loan loss	—			—			5,294			—
	Transaction costs	612			115			1,100			329
Adjusted Company FFO available to all equityholders and unitholders - diluted		$	60,701		$	67,155		$	175,442		$	218,049

Per Common Share and Unit Amounts
Basic:
FFO	$	0.24	$	0.29	$	0.68	$	0.89
Diluted:
FFO	$	0.24	$	0.29	$	0.69	$	0.89
Adjusted Company FFO	$	0.25	$	0.28	$	0.71	$	0.89

	Three Months ended September 30,		Nine Months ended September 30,
	2017	2016	2017	2016
Weighted-Average Common Shares:
Basic:
Weighted-average common shares outstanding - basic EPS	237,989,098	234,207,396	237,632,572	233,151,600
Operating partnership units(1)	3,646,869	3,815,386	3,713,867	3,818,117
Weighted-average common shares outstanding - basic FFO	241,635,967	238,022,782	241,346,439	236,969,717
Diluted:
Weighted-average common shares outstanding - diluted EPS	241,702,715	234,207,396	241,442,227	237,215,883
Operating partnership units(1)	—	3,815,386	—	—
6.00% Convertible Guaranteed Notes	—	508,912	—	1,439,456
Unvested share-based payment awards	655,228	570,260	650,348	478,329
Share options	—	238,395	—	—
Preferred shares - Series C	4,710,570	4,710,570	4,710,570	4,710,570
Weighted-average common shares outstanding - diluted FFO	247,068,513	244,050,919	246,803,145	243,844,238

(1) Includes all OP units other than OP units held by us.

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Off-Balance Sheet Arrangements

As of September 30, 2017, we had investments in various real estate entities with varying structures. The real estate investments owned by these entities are generally financed with non-recourse debt. Non-recourse debt is generally defined as debt whereby the lenders' sole recourse with respect to borrower defaults is limited to the value of the assets collateralized by the debt. The lender generally does not have recourse against any other assets owned by the borrower or any of the members or partners of the borrower, except for certain specified exceptions listed in the particular loan documents. These exceptions generally relate to "bad boy" acts, including fraud and breaches of material representations. We have guaranteed such obligations for certain of our non-consolidated entities.

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Lepercq Corporate Income Fund L.P.:

Critical Accounting Policies

Management's discussion and analysis of financial condition and results of operations is based upon the Partnership's unaudited condensed consolidated financial statements, which have been prepared in accordance with GAAP. In preparing the Partnership's unaudited condensed consolidated financial statements in accordance with GAAP and pursuant to the rules and regulations of the SEC, the Partnership makes assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue, and expenses, and related disclosures of contingent assets and liabilities. The Partnership bases its assumptions, judgments and estimates on historical experience and various other factors that the Partnership believes to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis, the Partnership evaluates its assumptions, judgments and estimates. Certain of the Partnership's accounting policies are discussed under (1) Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report, (2) note 2 to the consolidated financial statements contained in the Annual Report and (3) note 1 to the Partnership's unaudited condensed consolidated financial statements contained in this Quarterly Report. The Partnership believes there have been no material changes to the items that the Partnership disclosed as the Partnership's critical accounting policies under Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report. 

Liquidity

Cash Flows. The Partnership believes that its cash flows from operations will continue to provide adequate capital to fund its operating and administrative expenses, regular debt service obligations, working capital needs and all distribution payments in accordance with partnership agreement requirements in both the short-term and long-term. However, without a capital event, which would most likely involve the Company, the Partnership does not have the ability to fund balloon payments on maturing mortgages or acquire new investments. 

Cash flows from operations totaled $32.7 million and $31.0 million during the nine months ended September 30, 2017 and 2016, respectively. The increase was primarily due to the impact of cash flow generated from acquired properties and interest cost savings due to mortgage satisfactions offset by reduced cash flows attributable to sold properties. The underlying drivers that impact working capital and therefore cash flows from operations are the timing of (1) the collection of rents and tenant reimbursements, (2) the payment of interest on mortgage debt and (3) operating and general and administrative costs. The Partnership believes the net-lease structure of the leases encumbering a majority of the properties in which the Partnership has an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. Collection and timing of tenant rents is closely monitored by management as part of the Partnership cash management program.

Net cash provided by (used in) investing activities totaled $(44.4) million and $162.7 million during the nine months ended September 30, 2017 and 2016, respectively. Cash provided by investing activities related primarily to proceeds from the sale of properties, real estate deposits and distributions from non-consolidated entities in excess of accumulated earnings. Cash used in investing activities related primarily to capital expenditures on real estate properties, acquisition of real estate, investments in real estate under construction, investments in non-consolidated entities and an increase in deferred lease costs.

Net cash provided by (used in) financing activities totaled $26.6 million and $(132.7) million during the nine months ended September 30, 2017 and 2016, respectively. Cash used in financing activities was primarily attributable to distribution payments, an increase in deferred financing costs, debt payments and OP unit redemptions. Cash provided by financing activities was primarily attributable to related party advances, net and co-borrower debt borrowings.

Property Specific Debt. As of September 30, 2017, the Partnership had no property-specific debt maturing in 2017 and 2018. However, if a mortgage loan is unable to be refinanced upon maturity, the Partnership will be dependent on the Company's liquidity resources to satisfy such mortgage loan to avoid transferring the underlying property to the lender or selling the underlying property to a third party. During the nine months ended September 30, 2016, the Partnership satisfied a $15.0 million balloon maturity on its Byhalia Mississippi property.

Capital Recycling.During the nine months ended September 30, 2017 and 2016, the Partnership disposed of its interests in certain investments for an aggregate gross sales price of $7.6 million and $445.6 million, respectively. During the nine months ended September 30, 2016, the Partnership satisfied an aggregate $251.2 million of non-recourse mortgage debt in connection with the sales.

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Results of Operations

Three months endedSeptember 30, 2017compared with the three months endedSeptember 30, 2016. The decrease in total gross revenues of $9.3 million was primarily attributable to a decrease in rental revenue. The decrease in rental revenue of $9.4 million was primarily due to a reduction in rental revenue of $12.4 million due to a decrease in revenue from properties sold and a reduction in lease termination income, partially offset by rental revenue from newly acquired properties of $2.8 million.

The increase in depreciation and amortization expense of $2.3 million was primarily due to acquisitions of certain properties.

The decrease in general and administrative expense of $0.9 million primarily related to a decrease in the allocation of expenses from Lexington.

The decrease in interest and amortization expense of $3.0 million was primarily due to the sale of encumbered properties in 2016, particularly the New York, New York land investments, and a decrease in the allocation of interest and amortization expense from Lexington.

The decrease in debt satisfaction charges, net of $5.8 million was primarily due to the timing of debt satisfactions.

The decrease in impairment charges of $58.7 million primarily related to the timing of impairment charges recognized on the sales of properties. In 2016, a $65.5 million impairment charge was recognized on the sale of three New York, New York land investments.

Ninemonths endedSeptember 30, 2017compared with theninemonths endedSeptember 30, 2016. The decrease in total gross revenues of $44.3 million was primarily attributable to a decrease in rental revenue. The decrease in rental revenue of $43.5 million was primarily due to a reduction in rental revenue of $49.7 million due to a decrease in revenue from properties sold and a reduction in lease termination income, partially offset by rental revenue from newly acquired properties of $5.7 million.

The increase in depreciation and amortization expense of $3.1 million was primarily due to acquisitions of certain properties.

Property operating expense decreased $1.5 million primarily due to the sale of properties, including multi-tenanted properties, where LCIF had operating expense responsibilities.

The decrease in general and administrative expense of $2.1 million primarily related to a decrease in the allocation of expenses from Lexington.

The decrease in interest and amortization expense of $12.4 million was primarily due to the sale of encumbered properties in 2016, particularly the New York, New York land investments, and a decrease in the allocation of interest and amortization expense from Lexington.

The decrease in debt satisfaction charges, net of $7.4 million was primarily due to the timing of debt satisfactions.

The decrease in impairment charges of $55.9 million related primarily to the timing of impairment charges recognized on the sales of properties. In 2016, a $65.5 million impairment charge was recognized on the sale of three New York, New York land investments.

The decrease in gains on sales of properties of $16.0 million related to the timing of sales of properties.

Off-Balance Sheet Arrangements

The Partnership is a co-borrower or guarantor of corporate borrowing facilities and debt securities of the Company (see notes 5 and 8 to the Partnership's unaudited condensed consolidated financial statements with respect to debt securities). In addition, the Partnership, from time to time, guarantees certain tenant improvement allowances and lease commissions on behalf of its subsidiaries when required by the related tenant or lender. However, the Partnership does not believe these guarantees are material to it as the obligations under and risks associated with such guarantees are priced into the rent under the applicable lease or the value of the applicable property.

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ITEM 3. QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

Our exposure to market risk relates primarily to our variable-rate indebtedness not subject to interest rate swaps and our fixed-rate debt. Our consolidated aggregate principal variable-rate indebtedness was $424.1 million at September 30, 2017, which represented 20.1% of our aggregate principal consolidated indebtedness. We had no consolidated variable-rate indebtedness outstanding at September 30, 2016. During the three-month periods ended September 30, 2017 and 2016, our variable-rate indebtedness had a weighted-average interest rate of 2.9% and 1.5%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for the three months ended September 30, 2017 and 2016 would have increased by $475 thousand and $197 thousand, respectively. During the nine-month period ended September 30, 2017 and 2016, our variable-rate indebtedness had a weighted-average interest rate of 2.9% and 1.4%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for the nine months ended September 30, 2017 and 2016 would have increased by $694 thousand and $1.0 million, respectively. As of September 30, 2017 and 2016, our aggregate principal consolidated fixed-rate debt was $1.7 billion and $1.9 billion, respectively, which represented 79.9% and 100.0%, respectively, of our aggregate principal indebtedness.

For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties. Accordingly, we derive or estimate fair values using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved. However, the determination of estimated cash flows may be subjective and imprecise. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. The following fair value was determined using the interest rates that we believe our outstanding fixed-rate indebtedness would warrant as of September 30, 2017. We believe the fair value is indicative of the interest rate environment as of September 30, 2017, but this amount does not take into consideration the effects of subsequent interest rate fluctuations. Accordingly, we estimate that the fair value of our fixed-rate indebtedness was $1.7 billion as of September 30, 2017.

Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, we manage our exposure to fluctuations in market interest rates through the use of fixed-rate debt instruments to the extent that reasonably favorable rates are obtainable with such arrangements. We may enter into derivative financial instruments such as interest rate swaps or caps to mitigate our interest rate risk on a related financial instrument or to effectively lock the interest rate on a portion of our variable-rate debt. As of September 30, 2017, we had 10 interest rate swap agreements (see note 9 to our unaudited condensed consolidated financial statements contained in this Quarterly Report).

The Partnership has similar exposure to market risk and interest rate risk relating to its variable-rate indebtedness because the Partnership is a co-borrower of the Company's variable-rate debt.

ITEM 4. CONTROLS AND PROCEDURES

Lexington Realty Trust:

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as such terms are defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report to determine if such controls and procedures were effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As discussed in the Annual Report, management has identified a material weakness in our internal control over financial reporting, and management, including each of our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures were not effective as of September 30, 2017 due to this material weakness. Management believes the unaudited condensed consolidated financial statements contained herein present fairly, in all material respects, our financial position as of the specified dates and our results of operations and cash flows for the specified periods.

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Changes in Internal Control Over Financial Reporting. During the quarter ended June 30, 2017, management began implementing a remediation plan that was approved by the Audit Committee of our Board of Trustees with respect to the material weakness described in the Annual Report. Management took the following steps as part of the remediation:

• Evaluated and revised our financial reporting process to align our control environment, business processes and monitoring and personnel with our financial reporting objectives, with an emphasis on critical accounting policies and significant or unusual transactions.

• Improved the documentation of our system of internal control over financial reporting, specifically the application of critical accounting policies and identification of significant or unusual transactions, by establishing a policy guidance for the identification and critical accounting analysis of significant or unusual transactions.

• Implemented additional controls over the communication, review and authorization of significant or unusual transactions, including, appropriate oversight by our Board of Trustees and Audit Committee of our Board of Trustees, as applicable.

The changes resulting from this remediation plan have not been fully tested.  Until testing occurs and the changes operate for an appropriate period of time to insure their effectiveness, the material weakness described in the Annual Report will not be considered remediated. There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this Quarterly Report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls. Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations,  there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

Lepercq Corporate Income Fund L.P.:

Evaluation of Disclosure Controls and Procedures.  The Partnership’s management, with the participation of Lex GP’s President and Lex GP’s Vice President and Treasurer, evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such terms are defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report to determine if such controls and procedures were effective to ensure that information required to be disclosed by the Partnership in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that information required to be disclosed by the Partnership in reports filed or submitted under the Exchange Act is accumulated and communicated to the Partnership’s management, including Lex GP’s President and Lex GP’s Vice President and Treasurer, as appropriate, to allow timely decisions regarding required disclosure. As discussed in the Annual Report, management has identified a material weakness in the Partnership's internal control over financial reporting, and management, including each of Lex GP's President and Lex GP's Vice President and Treasurer, has concluded that the Partnership's disclosure controls and procedures were not effective as of September 30, 2017 due to this material weakness. Management believes the unaudited condensed consolidated financial statements contained herein present fairly, in all material respects, the Partnership's financial position as of the specified dates and the Partnership's results of operations and cash flows for the specified periods.

Changes in Internal Control Over Financial Reporting. During the quarter ended June 30, 2017, the Partnership’s management began implementing a remediation plan that was approved by the Audit Committee of Lexington’s Board of Trustees with respect to the material weakness described in the Annual Report. The Partnership’s management took the following steps as part of the remediation:

• Evaluated and revised the Partnership’s financial reporting process to align the Partnership’s control environment, business processes and monitoring and personnel with the Partnership’s financial reporting objectives, with an emphasis on critical accounting policies and significant or unusual transactions.

• Improved the documentation of the Partnership’s system of internal control over financial reporting, specifically the application of critical accounting policies and identification of significant or unusual transactions, by establishing a policy guidance for the identification and critical accounting analysis of significant or unusual transactions.

• Implemented additional controls over the communication, review and authorization of significant or unusual transactions, including, appropriate oversight by Lexington’s Board of Trustees and Audit Committee of Lexington’s Board of Trustees, as applicable.  

50

The changes resulting from this remediation plan have not been fully tested. Until testing occurs and the changes operate for an appropriate period of time to insure their effectiveness, the material weakness described in the Annual Report will not be considered remediated. There were no changes in the Partnership’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this Quarterly Report relates that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

Limitations on the Effectiveness of Controls. Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations,  there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

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PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings.

From time to time the Company and Partnership are directly and indirectly involved in legal proceedings arising in the ordinary course of the Company's and Partnership's business, including claims by lenders under non-recourse carve-out guarantees. We believe, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's or the Partnership's business, financial condition and results of operations.

GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015)

On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey.  The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term.  The lender claimed approximately $9.2 million in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto.

The lender claimed that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The limited guaranty provides that the guarantor's liability for the guaranteed obligations shall not exceed $10.0 million. The Company filed a motion to dismiss, which was generally denied. The parties conducted discovery consisting of document production. The Company recorded a $2.05 million litigation reserve during the quarter ended September 30, 2017 relating to this litigation as the Company determined that a liability was "probable" (as defined by FASB ASC 450-20-20). A mediation was held on October 5, 2017, but a settlement was not reached that day. Following the mediation, a settlement agreement was executed that requires a $2.05 million payment.

The lender also brought a foreclosure action against the property owner subsidiary. A foreclosure sale was held September 13, 2016 and the lender acquired the property for a nominal amount.

ITEM 1A. Risk Factors.

There have been no material changes in our or the Partnership's risk factors from those disclosed in the Annual Report.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table summarizes repurchases of our common shares/OP units during the three months ended September 30, 2017 pursuant to publicly announced repurchase plans⁽¹⁾:

Issuer Purchases of Equity Securities
Period	(a) Total Number of Shares/Units Purchased	(b) Average Price Paid Per Share/ Unit		(c) Total Number of Shares/Units Purchased as Part of Publicly Announced Plans or Programs(1)	(d) Maximum Number of Shares/Units That May Yet Be Purchased Under the Plans or Programs(1)
July 1 - 31, 2017	—	$	—	—	6,599,088
August 1 - 31, 2017	—	$	—	—	6,599,088
September 1 - 30, 2017	—	$	—	—	6,599,088
Third quarter 2017	—	$	—	—	6,599,088

(1) Share repurchase authorization announced on July 2, 2015, which has no expiration date.

During September 2017, the Partnership redeemed 2,675,785 OP units that were owned by Lexington for $130.0 million or $48.58 per unit.

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ITEM 3. Defaults Upon Senior Securities - not applicable.

ITEM 4. Mine Safety Disclosures - not applicable.

ITEM 5. Other Information - not applicable.

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ITEM 6. Exhibits.

Exhibit No.		Description
3.1	—	Articles of Merger and Amended and Restated Declaration of Trust of the Company, dated December 31, 2006 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed January 8, 2007 (the “01/08/07 8-K”))(1)
3.2	—	Articles Supplementary Relating to the Reclassification of 8.05% Series B Cumulative Redeemable Preferred Stock, par value $0.0001 per share, and 7.55% Series D Cumulative Redeemable Preferred Stock, par value $0.0001 per share (filed as Exhibit 3.4 to the Company's Current Report on Form 8-K filed November 21, 2013)(1)
3.3	—	Amended and Restated By-laws of the Company (filed as Exhibit 3.2 to the 01/08/07 8-K)(1)
3.4	—	First Amendment to Amended and Restated By-laws of the Company (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed November 20, 2009)(1)
3.5	__	Second Amendment to Amended and Restated By-Laws of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed April 3, 2017) (1)
3.6	—	Agreement and Plan of Merger dated as of December 23, 2013, by and among Lepercq Corporate Income Fund L.P. (“LCIF”) and Lepercq Corporate Income Fund II L.P. (“LCIF II”) (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed December 24, 2013)(1)
3.7	—	Sixth Amended and Restated Agreement of Limited Partnership of LCIF, dated as of December 30, 2013 (filed as Exhibit 3.25 to the Company's Annual Report on Form 10-K filed February 26, 2014)(1)
4.1	—	Specimen of Common Shares Certificate of the Company (filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006)(1)
4.2	—	Form of 6.50% Series C Cumulative Convertible Preferred Stock certificate (filed as Exhibit 4.1 to the Company's Registration Statement on Form 8A filed December 8, 2004)(1)
4.3	—	Indenture, dated as of January 29, 2007, among the Company (as successor by merger), the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 29, 2007 (the “01/29/07 8-K”))(1)
4.4	—	Amended and Restated Trust Agreement, dated March 21, 2007, among the Company, The Bank of New York Trust Company, National Association, The Bank of New York (Delaware), the Administrative Trustees (as named therein) and the several holders of the Preferred Securities from time to time (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed March 27, 2007 (the “03/27/2007 8-K”))(1)
4.5	—	Junior Subordinated Indenture, dated as of March 21, 2007, between Lexington Realty Trust and The Bank of New York Trust Company, National Association (filed as Exhibit 4.2 to the 03/27/07 8-K)(1)
4.6	—	Fourth Supplemental Indenture, dated as of December 31, 2008, among the Company, the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 2, 2009)(1)
4.7	—	Fifth Supplemental Indenture, dated as of June 9, 2009, among the Company (as successor to the MLP), the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed June 15, 2009)(1)
4.8	—	Sixth Supplemental Indenture, dated as of January 26, 2010 among the Company, the guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 6.00% Convertible Guaranteed Notes due 2030 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 26, 2010)(1)
4.9	—	Seventh Supplemental Indenture, dated as of September 28, 2012, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed October 3, 2012)(1)
4.10	—	Eighth Supplemental Indenture, dated as of February 13, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed February 13, 2013 (the “02/13/13 8-K”))(1)
4.11	—	Ninth Supplemental Indenture, dated as of May 6, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 8, 2013)(1)
4.12	—	Tenth Supplemental Indenture, dated as of June 13, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.3 to the Company's Current Report on Form 8-K filed on June 13, 2013 (“06/13/13 8-K”))(1)
4.13	—	Tenth Supplemental Indenture, dated as of September 30, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on October 3, 2013 (the “10/03/2013 8-K”))(1)

54

4.14	—	Indenture, dated as of June 10, 2013, among the Company, the subsidiary guarantors named therein, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the 06/13/2013 8-K))(1)
4.15	—	First Supplemental Indenture, dated as of September 30, 2013, among the Company, the subsidiary guarantors named therein, and U.S. Bank National Association, as trustee (filed as Exhibit 4.2 to the 10/03/2013 8-K)(1)
4.16	—	Indenture dated as of May 9, 2014, among the Company, LCIF and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2014)(1)
4.17	—	First Supplemental Indenture, dated as of May 20, 2014, among the Company, LCIF and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 20, 2014)(1)
10.1	—	First Amendment to Credit Agreement and Agreement Regarding Revolving Loan Commitment and Term Loan Increases, dated as of September 29, 2017, among the Company and LCIF, as borrowers, KeyBank National Association, as agent, and each of the lenders signatory thereto (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed October 2, 2017)(1)
31.1	—	Certification pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(2)
31.2	—	Certification pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(2)
31.3	—	Certification pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(2)
31.4	—	Certification pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(2)
32.1	—	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3)
32.2	—	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3)
32.3	—	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3)
32.4	—	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3)
101.INS	—	XBRL Instance Document (2, 5)
101.SCH	—	XBRL Taxonomy Extension Schema (2, 5)
101.CAL	—	XBRL Taxonomy Extension Calculation Linkbase (2, 5)
101.DEF	—	XBRL Taxonomy Extension Definition Linkbase Document (2, 5)
101.LAB	—	XBRL Taxonomy Extension Label Linkbase Document (2, 5)
101.PRE	—	XBRL Taxonomy Extension Presentation Linkbase Document (2, 5)

(1) Incorporated by reference.

(2) Filed herewith.

(3) Furnished herewith. This exhibit shall not be deemed "filed" for purposes of Section 11 or 12 of the Securities Act of 1933, as amended (the "Securities Act"), or Section 18 of the Securities Exchanges Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of those sections, and shall not be part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing or document.

(4) Management contract or compensatory plan or arrangement.

(5) The following materials from this Quarterly Report on Form 10-Q for the period ended September 30, 2017 are formatted in XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Balance Sheets of the Company; (ii) Unaudited Condensed Consolidated Statements of Operations of the Company; (iii) Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) of the Company; (iv) Unaudited Condensed Consolidated Statements of Changes in Equity of the Company; (v) Unaudited Condensed Consolidated Statements of Cash Flows of the Company; (vi) Notes to Unaudited Condensed Consolidated Financial Statements of the Company, detailed tagged; (vii) Unaudited Condensed Consolidated Balance Sheets of LCIF; (viii) Unaudited Condensed Consolidated Statements of Operations of LCIF; (ix) Unaudited Condensed Consolidated Statements of Changes in Partners' Capital of LCIF; (x) Unaudited Condensed Consolidated Statements of Cash Flows of LCIF; and (xi) Notes to Unaudited Condensed Consolidated Financial Statements of LCIF, detailed tagged.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the undersigned registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Lexington Realty Trust
Date:	November 7, 2017	By:	/s/ T. Wilson Eglin
			T. Wilson Eglin
			Chief Executive Officer and President (principal executive officer)
Date:	November 7, 2017	By:	/s/ Patrick Carroll
			Patrick Carroll
			Chief Financial Officer, Executive Vice President and Treasurer (principal financial officer)

		Lepercq Corporate Income Fund L.P.
		By:	Lex GP-1 Trust, its General Partner
Date:	November 7, 2017	By:	/s/ T. Wilson Eglin
			T. Wilson Eglin
			President (principal executive officer)
Date:	November 7, 2017	By:	/s/ Patrick Carroll
			Patrick Carroll
			Vice President and Treasurer (principal financial officer)

56

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, T. Wilson Eglin, certify that:

1. I have reviewed this report on Form 10-Q of Lexington Realty Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 7, 2017

/s/ T. Wilson Eglin

T. Wilson Eglin

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Patrick Carroll, certify that:

1. I have reviewed this report on Form 10-Q of Lexington Realty Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 7, 2017

/s/ Patrick Carroll

Patrick Carroll

Chief Financial Officer

EX-31.3

Exhibit 31.3

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, T. Wilson Eglin, certify that:

1. I have reviewed this report on Form 10-Q of Lepercq Corporate Income Fund L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 7, 2017

/s/ T. Wilson Eglin

T. Wilson Eglin

President (principal executive officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

EX-31.4

Exhibit 31.4

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Patrick Carroll, certify that:

1. I have reviewed this report on Form 10-Q of Lepercq Corporate Income Fund L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 7, 2017

/s/ Patrick Carroll

Patrick Carroll

Vice President and Treasurer (principal financial officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lexington Realty Trust on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, T. Wilson Eglin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ T. Wilson Eglin

T. Wilson Eglin

Chief Executive Officer

November 7, 2017

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lexington Realty Trust on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, Patrick Carroll, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Patrick Carroll

Patrick Carroll

Chief Financial Officer

November 7, 2017

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lepercq Corporate Income Fund L.P. (the “Partnership”) on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, T. Wilson Eglin, President (principal executive officer) of Lex GP-1 Trust, the general partner of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ T. Wilson Eglin

T. Wilson Eglin

President (principal executive officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

November 7, 2017

EX-32.4

Exhibit 32.4

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lepercq Corporate Income Fund L.P. (the “Partnership”) on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, Patrick Carroll, Vice President and Treasurer (principal financial officer) of Lex GP-1 Trust, the general partner of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ Patrick Carroll

Patrick Carroll

Vice President and Treasurer (principal financial officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

November 7, 2017

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
Entity Information [Line Items]
Entity Registrant Name	LEXINGTON REALTY TRUST
Entity Central Index Key	0000910108
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		240,652,170
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period Ended Date	Sep. 30, 2017
LCIF [Member]
Entity Information [Line Items]
Entity Registrant Name	LEPERCQ CORPORATE INCOME FUND L.P.
Entity Central Index Key	0000790877
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period Ended Date	Sep. 30, 2017

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Real estate, at cost	$ 3,837,705	$ 3,533,172
Real estate - intangible assets	595,904	597,294
Investments in real estate under construction	0	106,652
Real estate, gross	4,433,609	4,237,118
Less: accumulated depreciation and amortization	1,200,814	1,208,792
Real estate, net	3,232,795	3,028,326
Assets held for sale	8,638	23,808
Cash and cash equivalents	140,545	86,637
Restricted cash	34,946	31,142
Investment in and advances to non-consolidated entities	60,683	67,125
Deferred expenses, net	32,426	33,360
Loans receivable, net	0	94,210
Rent receivable – current	6,388	7,516
Rent receivable – deferred	46,611	31,455
Other assets	32,124	37,888
Total assets	3,595,156	3,441,467
Liabilities:
Mortgages and notes payable, net	670,345	738,047
Revolving credit facility borrowings	200,000	0
Term loans payable, net	596,369	501,093
Senior notes payable, net	494,989	494,362
Trust preferred securities, net	127,171	127,096
Dividends payable	48,494	47,264
Liabilities held for sale	442	191
Accounts payable and other liabilities	36,728	59,601
Accrued interest payable	11,683	6,704
Deferred revenue - including below market leases, net	34,069	39,895
Prepaid rent	15,371	14,723
Total liabilities	2,235,661	2,028,976
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares: Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding	94,016	94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 240,643,775 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively	24	24
Additional paid-in-capital	2,824,379	2,800,736
Accumulated distributions in excess of net income	(1,576,459)	(1,500,966)
Accumulated other comprehensive income (loss)	510	(1,033)
Total shareholders’ equity	1,342,470	1,392,777
Noncontrolling interests	17,025	19,714
Total equity	1,359,495	1,412,491
Total liabilities and equity	3,595,156	3,441,467
LCIF [Member]
Assets:
Real estate, at cost	761,733	731,202
Real estate - intangible assets	114,134	104,761
Investments in real estate under construction	0	40,443
Real estate, gross	875,867	876,406
Less: accumulated depreciation and amortization	234,456	236,930
Real estate, net	641,411	639,476
Cash and cash equivalents	66,887	52,031
Restricted cash	1,540	1,545
Investment in and advances to non-consolidated entities	5,738	5,526
Deferred expenses, net	6,543	5,070
Rent receivable – current	233	358
Rent receivable – deferred	20,616	17,449
Related party advances, net	0	5,967
Other assets	2,713	1,182
Total assets	745,681	728,604
Liabilities:
Mortgages and notes payable, net	168,490	169,212
Co-borrower debt	165,839	146,404
Related party advances, net	2,157	0
Dividends payable	14,742	16,916
Accounts payable and other liabilities	5,197	3,559
Accrued interest payable	663	673
Deferred revenue - including below market leases, net	853	1,003
Prepaid rent	3,015	3,214
Total liabilities	360,956	340,981
Commitments and contingencies
Equity:
Partners' capital	384,725	387,623
Total liabilities and equity	$ 745,681	$ 728,604

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Equity:
Preferred shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred shares, authorized shares (in shares)	100,000,000	100,000,000
Series C Cumulative Convertible Preferred, liquidation preference	$ 96,770	$ 96,770
Series C Cumulative Convertible Preferred, shares issued (in shares)	1,935,400	1,935,400
Series C Cumulative Convertible Preferred, shares outstanding (in shares)	1,935,400	1,935,400
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common shares, authorized shares (in shares)	400,000,000	400,000,000
Common shares, shares issued (in shares)	240,643,775	238,037,177
Common shares, outstanding (in shares)	240,643,775	238,037,177

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Gross revenues:
Rental	$ 89,704	$ 98,602	$ 265,923	$ 310,804
Tenant reimbursements	7,985	7,379	23,549	23,366
Total gross revenues	97,689	105,981	289,472	334,170
Expense applicable to revenues:
Depreciation and amortization	(43,495)	(40,288)	(128,706)	(124,687)
Property operating	(11,694)	(11,472)	(36,784)	(34,843)
General and administrative	(7,963)	(7,510)	(25,561)	(23,032)
Litigation reserve	(2,050)	0	(2,050)	0
Non-operating income	1,005	3,080	4,997	9,500
Interest and amortization expense	(18,887)	(23,001)	(57,828)	(68,573)
Debt satisfaction gains (charges), net	2,424	2,538	2,378	(818)
Impairment charges and loan loss	(21,986)	(72,890)	(43,577)	(75,904)
Gains on sales of properties	10,645	16,072	55,078	58,413
Income (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entities	5,688	(27,490)	57,419	74,226
Provision for income taxes	(375)	(462)	(1,174)	(1,099)
Equity in earnings (losses) of non-consolidated entities	283	340	(1,064)	6,394
Net income (loss)	5,596	(27,612)	55,181	79,521
Less net (income) loss attributable to noncontrolling interests	(55)	2,260	(448)	102
Net income (loss) attributable to Lexington Realty Trust shareholders	5,541	(25,352)	54,733	79,623
Allocation to participating securities	(52)	(50)	(183)	(187)
Net income (loss) attributable to common shareholders	$ 3,916	$ (26,975)	$ 49,832	$ 74,718
Net income (loss) attributable to common shareholders - per common share basic (in dollars per share)	$ 0.02	$ (0.12)	$ 0.21	$ 0.32
Weighted-average common shares outstanding – basic (in shares)	237,989,098	234,207,396	237,632,572	233,151,600
Net income (loss) attributable to common shareholders – per common share diluted (in dollars per share)	$ 0.02	$ (0.12)	$ 0.21	$ 0.31
Weighted-average common shares outstanding – diluted (in shares)	241,702,715	234,207,396	241,442,227	237,215,883
Series C [Member]
Expense applicable to revenues:
Dividends attributable to preferred shares – Series C	$ (1,573)	$ (1,573)	$ (4,718)	$ (4,718)
LCIF [Member]
Gross revenues:
Rental	19,126	28,496	55,125	98,648
Tenant reimbursements	2,116	2,062	6,044	6,782
Total gross revenues	21,242	30,558	61,169	105,430
Expense applicable to revenues:
Depreciation and amortization	(10,114)	(7,793)	(28,495)	(25,402)
Property operating	(3,000)	(3,371)	(9,599)	(11,079)
General and administrative	(1,727)	(2,643)	(5,019)	(7,112)
Non-operating income	3	44	235	299
Interest and amortization expense	(4,099)	(7,109)	(11,438)	(23,835)
Debt satisfaction gains (charges), net	0	(5,773)	0	(7,388)
Impairment charges and loan loss	(6,802)	(65,509)	(12,061)	(67,935)
Gains on sales of properties	0	0	0	16,029
Income (loss) before provision for income taxes and equity in earnings (losses) of non-consolidated entities	(4,497)	(61,596)	(5,208)	(20,993)
Provision for income taxes	(4)	(32)	(30)	(57)
Equity in earnings (losses) of non-consolidated entities	79	49	338	252
Net income (loss)	$ (4,422)	$ (61,579)	$ (4,900)	$ (20,798)
Net income (loss) per unit (in dollars per unit)	$ (0.05)	$ (0.74)	$ (0.06)	$ (0.25)
Weighted-average units outstanding (in units)	83,125,058	83,241,396	83,202,190	83,241,396

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 5,596	$ (27,612)	$ 55,181	$ 79,521
Other comprehensive income (loss):
Change in unrealized gain (loss) on interest rate swaps, net	67	2,637	1,543	(2,944)
Other comprehensive income (loss)	67	2,637	1,543	(2,944)
Comprehensive income (loss)	5,663	(24,975)	56,724	76,577
Comprehensive (income) loss attributable to noncontrolling interests	(55)	2,260	(448)	102
Comprehensive income (loss) attributable to Lexington Realty Trust shareholders	$ 5,608	$ (22,715)	$ 56,276	$ 76,679

XML

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Preferred Shares [Member]	Common Stock [Member]	Additional Paid-in-Capital [Member]	Accumulated Distributions in Excess of Net Income [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Non-controlling Interests [Member]
Beginning Balance at Dec. 31, 2015	$ 1,462,531	$ 94,016	$ 23	$ 2,776,837	$ (1,428,908)	$ (1,939)	$ 22,502
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common shares upon conversion of convertible notes	12,027			12,027
Repurchase of common shares	(8,973)			(8,973)
Redemption of noncontrolling OP units for common shares	0			31			(31)
Issuance of common shares and deferred compensation amortization, net	9,045		1	9,044
Dividends/distributions	(128,319)				(125,791)		(2,528)
Net income (loss)	79,521				79,623		(102)
Other comprehensive income	(2,944)					(2,944)
Ending Balance at Sep. 30, 2016	1,422,888	94,016	24	2,788,966	(1,475,076)	(4,883)	19,841
Beginning Balance at Dec. 31, 2016	1,412,491	94,016	24	2,800,736	(1,500,966)	(1,033)	19,714
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of noncontrolling OP units for common shares	0			574			(574)
Issuance of common shares and deferred compensation amortization, net	23,069			23,069
Dividends/distributions	(132,789)				(130,226)		(2,563)
Net income (loss)	55,181				54,733		448
Other comprehensive income	1,543					1,543
Ending Balance at Sep. 30, 2017	$ 1,359,495	$ 94,016	$ 24	$ 2,824,379	$ (1,576,459)	$ 510	$ 17,025

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands	Total	LCIF [Member]
Beginning balance (in units) at Dec. 31, 2015		83,241,396
Beginning balance at Dec. 31, 2015		$ 461,657
Increase (Decrease) in Partners' Capital [Roll Forward]
Changes in co-borrower debt allocation		(17,179)
Distributions		(49,900)
Net income (loss)	$ 79,521	$ (20,798)
Ending balance (in units) at Sep. 30, 2016		83,241,396
Ending balance at Sep. 30, 2016		$ 373,780
Beginning balance (in units) at Dec. 31, 2016		83,241,396
Beginning balance at Dec. 31, 2016		$ 387,623
Increase (Decrease) in Partners' Capital [Roll Forward]
Changes in co-borrower debt allocation		$ 180,565
Redemption of OP units (in units)		(2,675,785)
Redemption of OP units		$ (129,990)
Distributions		(48,573)
Net income (loss)	$ 55,181	$ (4,900)
Ending balance (in units) at Sep. 30, 2017	3,225,000	80,565,611
Ending balance at Sep. 30, 2017		$ 384,725

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net cash provided by operating activities:	$ 172,581	$ 180,583
Cash flows from investing activities:
Acquisition of real estate, including intangible assets	(418,574)	(70,297)
Investment in real estate under construction	(81,364)	(105,548)
Capital expenditures	(13,367)	(3,267)
Net proceeds from sale of properties	186,499	293,634
Net proceeds from sale of non-consolidated investment	6,127	0
Principal payments received on loans receivable	89,908	214
Investments in and advances to non-consolidated entities	(4,068)	(33,554)
Distributions from non-consolidated entities in excess of accumulated earnings	477	7,299
Increase in deferred leasing costs	(5,284)	(6,165)
Change in restricted cash	(5,843)	(32,450)
Change in real estate deposits, net	10,938	(20,566)
Net cash provided by (used in) investing activities	(234,551)	29,300
Cash flows from financing activities:
Dividends to common and preferred shareholders	(128,996)	(123,287)
Principal amortization payments	(23,243)	(20,887)
Principal payments on debt, excluding normal amortization	(41,488)	(103,473)
Retirement of convertible notes	0	(672)
Proceeds from term loans	95,000	0
Change in revolving credit facility borrowings, net	200,000	(177,000)
Payment of developer liabilities	0	(4,016)
Change in deferred financing costs	(1,252)	(1,841)
Proceeds of mortgages and notes payable	0	254,650
Change in restricted cash	1,572	0
Cash distributions to noncontrolling interests	(2,563)	(2,528)
Issuance of common shares, net	16,848	2,686
Repurchase of common shares	0	(8,973)
Net cash provided by (used in) financing activities	115,878	(185,341)
Change in cash and cash equivalents	53,908	24,542
Cash and cash equivalents, at beginning of period	86,637	93,249
Cash and cash equivalents, at end of period	140,545	117,791
LCIF [Member]
Net cash provided by operating activities:	32,685	30,975
Cash flows from investing activities:
Acquisition of real estate, including intangible assets	(24,317)	0
Investment in real estate under construction	(20,894)	(23,390)
Capital expenditures	(3,925)	(1,226)
Net proceeds from sale of properties	7,106	185,219
Investments in and advances to non-consolidated entities	(1,067)	(81)
Distributions from non-consolidated entities in excess of accumulated earnings	855	425
Increase in deferred leasing costs	(2,157)	(997)
Change in restricted cash	5	812
Change in real estate deposits, net	(24)	1,932
Net cash provided by (used in) investing activities	(44,418)	162,694
Cash flows from financing activities:
Distributions to partners	(50,747)	(50,200)
Principal amortization payments	(785)	(1,053)
Principal payments on debt, excluding normal amortization	0	(23,934)
Co-borrower debt borrowings (payments)	200,000	(58,000)
Change in deferred financing costs	(13)	(79)
OP unit redemptions	(129,990)	0
Related party advances, net	8,124	553
Net cash provided by (used in) financing activities	26,589	(132,713)
Change in cash and cash equivalents	14,856	60,956
Cash and cash equivalents, at beginning of period	52,031	19,130
Cash and cash equivalents, at end of period	$ 66,887	$ 80,086

XML

The Company and Financial Statement Presentation

9 Months Ended

Sep. 30, 2017

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

The Company and Financial Statement Presentation

The Company and Financial Statement Presentation

Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a diversified portfolio of equity and, from time to time, debt investments in single-tenant commercial properties.

As of September 30, 2017, the Company had ownership interests in approximately 180 consolidated real estate properties, located in 38 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries.

As of September 30, 2017, the Company operated in a manner intended to enable it to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities historically prohibited for REITs in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities.

The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, and (4) investments in joint ventures. References to “OP units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and nine months ended September 30, 2017 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 1, 2017 (“Annual Report”).

Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP.

The Company determined that it was the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities, including LCIF, in which the Company has an approximate 96% interest. See the unaudited condensed consolidated financial statements of LCIF included within this Quarterly Report.

The Company has a joint venture limited partnership with a developer which is a consolidated VIE. In January 2017, the joint venture completed the development of an office campus in Lake Jackson, Texas. The Company currently has a 100% interest in the joint venture; however, the developer has certain protective rights, and, upon project close-out, the developer will be credited with a notional capital account for a profit interest and certain cost savings. As of September 30, 2017, the joint venture had $144,169 in real estate, net.

The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of September 30, 2017, the VIEs' mortgages and notes payable are non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Real estate, net	$	790,185	$	778,265
Total assets	$	898,620	$	899,801
Mortgages and notes payable, net	$	360,426	$	364,099
Total liabilities	$	371,000	$	395,332

Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.

Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Revision to Previously Issued Financial Statements. During the quarter ended December 31, 2016, the Company corrected an immaterial error in the treatment of a lease termination payment received in the quarter ended June 30, 2016 in the amount of $7,685. The lease termination payment was originally amortized over the life of the new tenant lease that necessitated the lease termination. As corrected, the payment was fully recognized in the Company's total gross revenues in the quarter ended June 30, 2016.

The Company concluded that the error noted above was not material to any historical periods presented. However, in order to correctly present the treatment of the lease termination payment, management elected to revise previously issued financial statements in the Company's next subsequent periodic filing that included such financial statements. The following table shows the affected line items within the Company's unaudited condensed consolidated financial statements:

Three Months ended September 30, 2016
	As Originally Reported			Correction			As Adjusted
Total gross revenues	$	106,331		$	(350	)	$	105,981
Net loss	$	(27,262	)	$	(350	)	$	(27,612	)
Net loss attributable to common shareholders	$	(26,653	)	$	(322	)	$	(26,975	)
Net loss attributable to common shareholders - basic per share	$	(0.11	)	$	(0.01	)	$	(0.12	)
Net loss attributable to common shareholders - diluted per share	$	(0.11	)	$	(0.01	)	$	(0.12	)

Nine Months ended September 30, 2016
	As Originally Reported		Correction		As Adjusted
Total gross revenues	$	327,524	$	6,646	$	334,170
Net income	$	72,875	$	6,646	$	79,521
Net income attributable to common shareholders	$	68,310	$	6,408	$	74,718
Net income attributable to common shareholders - basic per share	$	0.29	$	0.03	$	0.32
Net income attributable to common shareholders - diluted per share	$	0.28	$	0.03	$	0.31

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Company is finalizing its evaluation of the impact of the standard but currently believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Company will adopt ASU 2014-09 effective January 1, 2018 and anticipates using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that it will be required to bifurcate lease agreements to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be primarily recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 (upon adoption of ASU 2016-02). Additionally, the new ASU will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; with early adoption permitted. The Company continues to evaluate the impact of the adoption of the new guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new guidance on January 1, 2017. This new guidance did not have a material impact on the Company's consolidated financial statements. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however early adoption is permitted. The Company does not believe this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Company's consolidated statement of cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate.  The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company will adopt ASU 2017-05 effective January 1, 2018, along with the adoption of ASU 2014-09, and it is not expected to have a material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

LCIF [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

The Company and Financial Statement Presentation

The Partnership and Financial Statement Presentation

Lepercq Corporate Income Fund L.P. (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Partnership”) was organized in 1986 as a limited partnership under the Delaware Revised Uniform Limited Partnership Act. The Partnership's sole general partner, Lex GP-1 Trust (the “General Partner”), is a wholly-owned subsidiary of Lexington Realty Trust (“Lexington”). The Partnership serves as an operating partnership subsidiary for Lexington. As of September 30, 2017, Lexington, through Lex LP-1 Trust, a wholly-owned subsidiary, and the General Partner, owned approximately 96% of the outstanding units of the Partnership.

As of September 30, 2017, the Partnership had ownership interests in 33 consolidated real estate properties, located in 21 states. The properties in which the Partnership has an interest are leased to tenants in various industries.

The assets and credit of each property owner subsidiary of the Partnership with a property subject to a mortgage loan are not available to creditors to satisfy the debt and the other obligations of any other person, including any other property owner subsidiary of the Partnership or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three and nine months ended September 30, 2017 have been prepared by the Partnership in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Partnership's audited consolidated financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 1, 2017 (“Annual Report”).

Basis of Presentation and Consolidation. The Partnership's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities that the Partnership does not control and entities that are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP.

Earnings Per Unit. Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of units outstanding during the period. There are no potential dilutive securities.

Unit Redemptions. The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for shares of beneficial interests classified as common stock of Lexington, par value $0.0001 per share ("common shares"), on a one to approximately 1.13 basis, subject to future adjustments. These units are not mandatorily redeemable by the Partnership. As of September 30, 2017, Lexington's common shares had a closing price of $10.22 per share. The estimated fair value of these units was $37,117, assuming all outstanding limited partner units not held by Lexington were redeemed on such date.

Allocation of Overhead Expenses. The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues.

Distributions; Allocations of Income and Loss. As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss. The Partnership paid or accrued gross distributions of $48,573 ($0.58 per weighted-average unit) and $49,900 ($0.60 per weighted-average unit) to its partners during the nine months ended September 30, 2017 and 2016, respectively.

Use of Estimates. The Partnership has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk.

Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of such obligations as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors.

Revision to Previously Issued Financial Statements. During the quarter ended December 31, 2016, the Partnership corrected an immaterial error in the treatment of a lease termination payment received in the quarter of June 30, 2016 in the amount of $7,685. The lease termination payment was originally amortized over the life of the new tenant lease that necessitated the lease termination. As corrected, the payment was fully recognized in the Partnership's total gross revenues in the quarter ended June 30, 2016.

The Partnership concluded that the error noted above was not material to any historical periods presented. However, in order to correctly present the treatment of the lease termination payment, management elected to revise previously issued financial statements in the Partnership's next subsequent periodic filing that included such financial statements. The following table shows the affected line items within the Partnership's unaudited condensed consolidated financial statements:

For the three months ended September 30, 2016
	As Originally Reported			Correction			As Adjusted
Total gross revenues	$	30,908		$	(350	)	$	30,558
Net loss	$	(60,901	)	$	(678	)	$	(61,579	)
Net loss per unit	$	(0.73	)	$	(0.01	)	$	(0.74	)

For the nine months ended September 30, 2016
	As Originally Reported			Correction		As Adjusted
Total gross revenues	$	98,784		$	6,646	$	105,430
Net income (loss)	$	(26,652	)	$	5,854	$	(20,798	)
Net income (loss) per unit	$	(0.32	)	$	0.07	$	(0.25	)

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Partnership is finalizing its evaluation of the impact of the standard but currently believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Partnership will adopt ASU 2014-09 effective January 1, 2018 and anticipates using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the Partnership does not expect the ASU to have a material impact on the consolidated financial statements upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that it will be required to bifurcate lease agreements to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be primarily recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 (upon adoption of ASU 2016-02). Additionally, the new ASU will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; with early adoption permitted. The Partnership continues to evaluate the impact of the adoption of the new guidance on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however early adoption is permitted. The Partnership does not believe this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Partnership's consolidated statement of cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership will adopt ASU 2017-05 effective January 1, 2018, along with ASU 2014-09, and it is not expected to have a material impact on its consolidated financial statements.

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Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016:

	Three Months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
BASIC
Net income (loss) attributable to common shareholders	$	3,916		$	(26,975	)	$	49,832		$	74,718
Weighted-average number of common shares outstanding - basic	237,989,098			234,207,396			237,632,572			233,151,600
Net income (loss) attributable to common shareholders - per common share basic	$	0.02		$	(0.12	)	$	0.21		$	0.32
DILUTED
Net income (loss) attributable to common shareholders - basic	$	3,916		$	(26,975	)	$	49,832		$	74,718
Impact of assumed conversions	(173		)	—			(192		)	(845		)
Net income (loss) attributable to common shareholders	$	3,743		$	(26,975	)	$	49,640		$	73,873
Weighted-average common shares outstanding - basic	237,989,098			234,207,396			237,632,572			233,151,600
Effect of dilutive securities:
Share options	66,748			—			95,788			246,166
OP Units	3,646,869			—			3,713,867			3,818,117
Weighted-average common shares outstanding - diluted	241,702,715			234,207,396			241,442,227			237,215,883
Net income (loss) attributable to common shareholders - per common share diluted	$	0.02		$	(0.12	)	$	0.21		$	0.31

For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods.

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Investments in Real Estate and Real Estate Under Construction

9 Months Ended

Sep. 30, 2017

Real Estate [Line Items]

Investments in Real Estate and Real Estate Under Construction

Investments in Real Estate and Real Estate Under Construction

The Company completed the following acquisition and build-to-suit transactions during the nine months ended September 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
			$	587,583		$	25,870	$	501,547	$	62,956	$	(2,790	)

(1) Completed the construction of the final building of a four-building project. Initial cost basis excludes estimated developer partner payout of approximately $8,000.

The Company recognized aggregate transaction costs of $1,100 and $329 for the nine months ended September 30, 2017 and 2016, respectively, which are included as property operating expenses within the Company's unaudited condensed consolidated statements of operations.

From time to time, the Company is engaged in various forms of build-to-suit development activities. The Company, through lender subsidiaries and property owner subsidiaries, may enter into the following acquisition, development and construction arrangements: (1) lend funds to construct a build-to-suit project subject to a single-tenant lease with an agreement to purchase the property upon completion of construction and commencement of the single-tenant lease, (2) hire a developer to construct a built-to-suit project on owned property leased to a single tenant, (3) fund the construction of a build-to-suit project on owned property pursuant to the terms of a single-tenant lease or (4) enter into a purchase and sale agreement with a developer to acquire a single-tenant build-to-suit property upon completion of construction and commencement of a single-tenant lease. As of September 30, 2017, the Company had no development arrangements outstanding. As of December 31, 2016, the Company's aggregate investment in development arrangements was $106,652, which included $3,442 of capitalized interest and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets.

As of September 30, 2017, the Company had the following forward purchase commitments:

Location	Square Feet (000's)	Property Type	Maximum Acquisition Cost		Estimated Acquisition Date	Approximate Lease Term (Yrs)
Warren, MI(1)	260	Industrial	$	47,000	4Q 17	15
Romulus, MI	500	Industrial	39,330		4Q 17	15
Lafayette, IN	309	Industrial	17,450		4Q 17	7
	1,069		$	103,780

(1) A $4,600 letter of credit secures the Company's obligation to purchase the property.

The Company can give no assurances that any of these forward purchase commitments will be consummated or, if consummated, will perform to the Company's expectations.

LCIF [Member]

Real Estate [Line Items]

Investments in Real Estate and Real Estate Under Construction

Investment in Real Estate and Real Estate Under Construction

The Partnership completed the following acquisitions and build-to-suit arrangements during the nine months ended September 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	April 2017	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166
			$	85,656		$	6,937	$	65,049	$	13,670

During the nine months ended September 30, 2017, the Partnership disposed of its interest in two vacant office properties for an aggregate gross sale price of $7,591 and recognized aggregate impairment charges of $5,259. During the nine months ended September 30, 2016, the Partnership disposed of its interest in certain properties, including land investments, for an aggregate gross sale price of $445,565. The Partnership recognized aggregate gains on sales of properties of $16,029, aggregate impairment charges of $67,935 and aggregate debt satisfaction charges of $7,388 relating to properties disposed of during the nine months ended September 30, 2016. The aggregate impairment charges recorded during the nine months ended September 30, 2016, related primarily to the sale of the three land investments in New York, New York. The land investments were subject to 99-year leases with annual escalations, and the deferred rent receivable balance at the date of sale of $91,213 was written off.

The Partnership assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the nine months ended September 30, 2017, the Partnership recognized an impairment charge of $6,802 on a partially vacant office property.

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Property Dispositions and Real Estate Impairment

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions and Real Estate Impairment

Property Dispositions and Real Estate Impairment

During the nine months ended September 30, 2017, the Company disposed of its interests in various properties for an aggregate gross sale price of $190,368 and conveyed a vacant office property, along with its escrow deposits, in satisfaction of a $3,496 non-recourse mortgage loan. During the nine months ended September 30, 2016, the Company disposed of its interests in various properties, including land investments, for an aggregate gross sale price of $561,817 and conveyed a vacant office property, along with its escrow deposits, in satisfaction of a $14,118 non-recourse mortgage loan; however, the lender brought a claim under the related non-recourse carve out guaranty (see note 13).

During the nine months ended September 30, 2017 and 2016, the Company recognized aggregate gains on sales of properties of $55,078 and $58,413, respectively. In addition, during the nine months ended September 30, 2017 and 2016, the Company recognized debt satisfaction gains (charges), net of $2,381 and $(381), respectively, relating to properties disposed of, including conveyed properties.

As of September 30, 2017 and December 31, 2016, the Company had one property and two properties, respectively, classified as held for sale.

Assets and liabilities of held for sale properties as of September 30, 2017 and December 31, 2016 consisted of the following:

	September 30, 2017		December 31, 2016
Assets:
Real estate, at cost	$	8,607	$	25,957
Real estate, intangible assets	—		7,789
Accumulated depreciation and amortization	—		(13,346		)
Rent receivable - current	11		—
Rent receivable - deferred	—		1,715
Other assets	20		1,693
	$	8,638	$	23,808
Liabilities:
Other	$	442	$	191
	$	442	$	191

The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the nine months ended September 30, 2017 and 2016, the Company recognized aggregate impairment charges of $38,283 and $75,904, respectively, on properties disposed of and properties held for use.

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Loans Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans Receivable

Loans Receivable

As of September 30, 2017, all of the Company's loans receivable were fully satisfied. As of December 31, 2016, the Company's loans receivable were comprised primarily of mortgage loans on real estate.

The following is a summary of the Company's loans receivable as of December 31, 2016:

	Loan carrying-value(1)
Loan		12/31/2016		Interest Rate		Maturity Date
Kennewick, WA(2)		$	85,709	9.00	%	05/2022
Oklahoma City, OK(3)		8,501		11.50	%	03/2016
		$	94,210

(1) Loan carrying value includes accrued interest and is net of origination costs, if any.

(2) Loan provided for a current pay rate of 8.75%, an accrual rate of 9.0% and a balloon of $87,245 at maturity. During the nine months ended September 30, 2017, the loan was assigned to a third party for 94% of its principal balance. The Company recognized a $5,294 loan loss on the transaction.

(3) In June 2015, the Company loaned a tenant-in-common $8,420. The loan was secured by the tenant-in-common's interest in an office property, in which the Company had a 40% tenant-in-common interest. The loan was satisfied in full in February 2017. The Company incurred professional fees of $376 to collect this loan. Such fees are included in general and administrative expenses on the Company's unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements

Fair Value Measurements

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	September 30, 2017		(Level 1)		(Level 2)		(Level 3)
Interest rate swap assets	$	510	$	—	$	510	$	—
Impaired real estate assets*	$	20,264	$	—	$	—	$	20,264

	Balance			Fair Value Measurements Using
Description	December 31, 2016			(Level 1)		(Level 2)			(Level 3)
Interest rate swap assets	$	44		$	—	$	44		$	—
Impaired real estate assets*	$	15,801		$	—	$	—		$	15,801
Interest rate swap liabilities	$	(1,077	)	$	—	$	(1,077	)	$	—

*Represents a non-recurring fair value measurement, including assets held for sale. Fair value as of the date of impairment.

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of September 30, 2017 and December 31, 2016.

	As of September 30, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Loans Receivable	$	—	$	—	$	94,210	$	94,911
Liabilities
Debt	$	2,088,874	$	2,058,863	$	1,860,598	$	1,814,824

The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2017 and December 31, 2016, the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps have been classified in Level 2 of the fair value hierarchy.

The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

The Company estimated the fair values of its loans receivable utilizing Level 3 inputs by using a discounted cash flow analysis consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use and/or the estimated value of the underlying collateral.

The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates, except for the Company's senior notes payable. The Company determines the fair value of its senior notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

LCIF [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements

Fair Value Measurements

The following table presents the Partnership's assets measured at fair value as of September 30, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	September 30, 2017		(Level 1)		(Level 2)		(Level 3)
Impaired real estate assets*	$	2,090	$	—	$	—	$	2,090

* Represents a non-recurring fair value measurement as of the date of impairment.

The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of September 30, 2017 and December 31, 2016:

	As of September 30, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	334,329	$	333,181	$	315,616	$	314,509

The Partnership estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Partnership may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Partnership has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Partnership under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

The fair value of the Partnership's debt is primarily estimated utilizing Level 3 inputs by using an estimated discounted cash flow analysis, based upon estimates of market interest rates.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Partnership estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

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Investment in and Advances to Non-Consolidated Entities

9 Months Ended

Sep. 30, 2017

Schedule of Equity Method Investments [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investment in and Advances to Non-Consolidated Entities

As of September 30, 2017, the Company had ownership interests ranging from 15% to 25% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $46,661 at September 30, 2017 (the Company's proportionate share was $8,395).

In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized gains of $1,452 and $5,378, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities.

During the nine months ended September 30, 2017, the Company recognized an impairment charge of $3,512 on its investment in a retail property in Palm Beach Gardens, Florida due to the bankruptcy of its tenant. This impairment charge reduced the Company's investment balance to zero.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of September 30, 2017, the Company had a 25% equity interest in the joint venture. The joint venture completed the project during 2016 for a total construction cost of $79,964. The Company was contractually obligated to provide construction financing to the joint venture up to $56,686. As of September 30, 2017, the Company's loan balance, net of origination costs, of $48,771 was included in investment in and advances to non-consolidated entities.

LCIF [Member]

Schedule of Equity Method Investments [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investments in and Advances to Non-Consolidated Entities

In July 2014, the Partnership acquired a 1.0% interest in an office property in Philadelphia, Pennsylvania for $263. The Partnership accounts for this investment under the cost basis of accounting.

On September 1, 2012, the Partnership acquired a 2% equity interest in Net Lease Strategic Assets Fund L.P. (“NLS”) for cash of $189 and the issuance of 457,211 limited partner units to Lexington.

The Partnership's carrying value in NLS at September 30, 2017 and December 31, 2016 was $5,436 and $5,224, respectively. The Partnership recognized net income from NLS of $323 and $236 in equity in earnings from non-consolidated entities during the nine months ended September 30, 2017 and 2016, respectively. The Partnership contributed $1,067 and $81 to NLS during the nine months ended September 30, 2017 and 2016, respectively. In addition, the Partnership received distributions of $1,178 and $661 from NLS during the nine months ended September 30, 2017 and 2016, respectively.

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Debt

9 Months Ended

Sep. 30, 2017

Debt Instrument [Line Items]

Debt

Debt

The Company had the following mortgages and notes payable outstanding as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Mortgages and notes payable	$	676,935		$	745,173
Unamortized debt issuance costs	(6,590		)	(7,126		)
	$	670,345		$	738,047

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at September 30, 2017 and December 31, 2016 and all mortgages and notes payables mature between 2017 and 2036 as of September 30, 2017. The weighted-average interest rate was 4.6% at September 30, 2017 and December 31, 2016.

The Company had the following senior notes outstanding as of September 30, 2017 and December 31, 2016:

Issue Date	September 30, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized discount	(1,576		)	(1,780		)
Unamortized debt issuance cost	(3,435		)	(3,858		)
	$	494,989		$	494,362

Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

In September 2017, the Company's $905,000 unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1,105,000. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the revolving credit facility had $200,000 borrowings outstanding, $4,600 of letters of credit and availability of $300,400, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,631 and $3,907 as of September 30, 2017 and December 31, 2016, respectively.

The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at September 30, 2017.

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and bear interest at a variable rate of three month LIBOR plus 170 basis points thereafter through maturity. The interest rate at September 30, 2017 was 3.011%. As of September 30, 2017 and December 31, 2016, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,949 and $2,024, respectively, of unamortized debt issuance costs.

During the nine months ended September 30, 2017 and 2016, the Company incurred debt satisfaction charges, net of $3 and $437, respectively, on the retirement of various debt instruments, other than those disclosed elsewhere in the Company's condensed consolidated financial statements.

LCIF [Member]

Debt Instrument [Line Items]

Debt

Mortgages and Notes Payable and Co-Borrower Debt

The Partnership had the following mortgages and notes payable outstanding as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Mortgages and notes payable	$	169,173		$	169,958
Unamortized debt issuance costs	(683		)	(746		)
	$	168,490		$	169,212

Interest rates, including imputed rates, ranged from 4.0% to 6.5% at September 30, 2017 and December 31, 2016, and the mortgages and notes payable mature between 2019 and 2026. The weighted-average interest rate at September 30, 2017 and December 31, 2016 was approximately 4.7%.

Lexington's, and the Partnership's as co-borrower, $905,000 unsecured credit agreement with KeyBank National Association, as agent, was amended in September 2017 to, among other things, increase the overall facility to $1,105,000. With lender approval, Lexington can increase the size of the amended facility to an aggregate $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the revolving credit facility had $200,000 of borrowings outstanding, $4,600 of letters of credit and availability of $300,400 subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings.

Lexington was in compliance with all applicable financial covenants contained in its corporate level debt agreements at September 30, 2017.

In accordance with the guidance of ASC 405-40, the Partnership, as it is a co-borrower with Lexington, recognizes a proportion of the outstanding amounts of the above-mentioned term loans and revolving credit facility as co-borrower debt in the accompanying unaudited condensed consolidated balances sheets. In accordance with the Partnership’s partnership agreement, the Partnership is allocated a portion of these debts based on gross rental revenues, which represents its agreed to obligation. The Partnership's allocated co-borrower debt was $165,839 and $146,404 as of September 30, 2017 and December 31, 2016, respectively. Non-cash changes in co-borrower debt are recognized in partners’ capital in the accompanying unaudited condensed consolidated statements of changes in partners’ capital.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.

Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable-rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the nine months ended September 30, 2017 and 2016.

The Company has designated the interest-rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rate on $505,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the term loans. During the next 12 months, the Company estimates that an additional $297 will be reclassified as a decrease to interest expense.

As of September 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	10	$505,000

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016.

	As of September 30, 2017			As of December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Asset	Other Assets	$	510	Other Assets	$	44
Interest Rate Swap Liability	Accounts Payable and Other Liabilities	$	—	Accounts Payable and Other Liabilities	$	(1,077	)

The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016.

Derivatives in Cash Flow	Amount of Income (Loss) Recognized in OCI on Derivatives (Effective Portion) September 30,					Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) September 30,
Hedging Relationships	2017		2016				2017		2016
Interest Rate Swaps	$	581	$	(6,035	)	Interest expense	$	962	$	3,091

The Company's agreements with swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of September 30, 2017, the Company had not posted any collateral related to the agreements.

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Concentration of Risk

9 Months Ended

Sep. 30, 2017

Concentration Risk [Line Items]

Concentration of Risk

Concentration of Risk

The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the nine months ended September 30, 2017 and 2016, no single tenant represented greater than 10% of rental revenues.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions.

LCIF [Member]

Concentration Risk [Line Items]

Concentration of Risk

Concentration of Risk

Subject to the terms of the partnership agreement, the Partnership seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the nine months ended September 30, 2017 and 2016, the following tenants represented greater than 10% of rental revenues:

	2017		2016
Preferred Freezer Services of Richland, LLC	17.9	%	N/A
SM Ascott LLC(1)	N/A		13.1	%
Tribeca Ascott LLC(1)	N/A		11.2	%
AL-Stone Ground Tenant LLC(1)	N/A		10.2	%

(1) The Partnership net leased these individual land parcels to the tenants under non-cancellable 99-year (original term) leases. The improvements on these parcels are owned by the tenants and consist of three high-rise hotels located in New York, NY. The Partnership sold these assets in September 2016.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Partnership believes it mitigates this risk by investing in or through major financial institutions.

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Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Equity

Equity

Shareholders' Equity. During the nine months ended September 30, 2017, the Company issued 1,593,603 common shares under its At-The-Market offering program and generated aggregate gross proceeds of $17,362. During the nine months ended September 30, 2016, the Company issued 577,823 common shares under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $4,115.

During the nine months ended September 30, 2017 and 2016, the Company granted common shares to certain employees as follows:

	Nine Months ended September 30,
	2017	2016
Performance Shares(1)
Shares granted:
Index - 1Q	106,706	404,466
Peer - 1Q	106,705	404,463
Index - 2Q	163,466	—
Peer - 2Q	163,463	—
Grant date fair value per share:(2)
Index - 1Q	$6.82	$4.53
Peer - 1Q	$6.34	$4.58
Index - 2Q	$4.05	—
Peer - 2Q	$4.27	—
Non-Vested Common Shares:(3)
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

(1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. The 2Q shares were subject to shareholder approval, which was obtained in May 2017.

(2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model.

(3) The shares vest ratably over a three-year service period.

In addition, during the nine months ended September 30, 2017 and 2016, the Company issued 44,238 and 43,503, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $463 and $350, respectively.

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. During the nine months ended September 30, 2016, the Company repurchased 1,184,113 common shares, at an average price of $7.56 per common share. No repurchases occurred during the nine months ended September 30, 2017.

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:

	Nine Months ended September 30,
	2017			2016
Balance at beginning of period	$	(1,033	)	$	(1,939	)
Other comprehensive income (loss) before reclassifications	581			(6,035		)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	962			3,091
Balance at end of period	$	510		$	(4,883	)

Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued 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 September 30, 2017, there were approximately 3,225,000 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.

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Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transaction [Line Items]

Related Party Transactions

Related Party Transactions

In connection with efforts to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provided that the Company would reimburse investors providing the funds for such financing if the following occured: (1) the joint venture received such funds, (2) the USCIS denied the financing solely because the project was not permitted under the EB-5 visa program, and (3) the joint venture failed to return such funds.  As of September 30, 2017, USCIS approved the project, and the guaranty terminated by its terms.

In addition, in connection with efforts, on a non-binding basis, to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina owned by LCIF, LCIF has agreed to reimburse the Chairman's affiliate up to approximately $107 for its expenses, but no expenses were reimbursed as of September 30, 2017.

There were no other related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report.

LCIF [Member]

Related Party Transaction [Line Items]

Related Party Transactions

Related Party Transactions

The Partnership had the following related party transactions in addition to related party transactions discussed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report.

The Partnership had outstanding net advances owed from (to) Lexington of $(2,157) and $5,967 as of September 30, 2017 and December 31, 2016, respectively. The advances are payable on demand.

Lexington earned distributions of $46,732 and $48,032 during the nine months ended September 30, 2017 and 2016, respectively. In September 2017, the Partnership redeemed 2,675,785 OP units owned by Lexington that were entitled to aggregate annual distributions of $3.25 per unit for $129,990.

The Partnership was allocated interest expense by Lexington, in accordance with the partnership agreement, relating to certain lending facilities of $5,913 and $9,605 for the nine months ended September 30, 2017 and 2016, respectively.

Lexington, on behalf of the General Partner, pays for certain general administrative and other costs on behalf of the Partnership from time to time. These costs are reimbursable by the Partnership. These costs were approximately $4,911 and $7,262 for the nine months ended September 30, 2017 and 2016, respectively.

 A Lexington affiliate provides property management services for certain Partnership properties. The Partnership recognized property operating expenses of $515 and $580 for the nine months ended September 30, 2017 and 2016, respectively, for aggregate fees charged by the affiliate.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies [Line Items]

Commitments and Contingencies

Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, including in Note 12 above, and previously disclosed, the Company has the following commitments and contingencies.

The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion, but no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement.

From time to time, the Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations.

GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015)

On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey.  The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term.  The lender claimed approximately $9,200 in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto.

The lender claimed that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The limited guaranty provides that the guarantor's liability for the guaranteed obligations shall not exceed $10,000.  The Company filed a motion to dismiss, which was generally denied. The parties conducted discovery consisting of document production. The Company recorded a $2,050 litigation reserve during the quarter ended September 30, 2017 relating to this litigation as the Company determined that a liability was "probable" (as defined by FASB ASC 450-20-20). A mediation was held on October 5, 2017, but a settlement was not reached that day. Following the mediation, a settlement agreement was executed that requires a $2,050 payment.

The lender also brought a foreclosure action against the property owner subsidiary. A foreclosure sale was held September 13, 2016 and the lender acquired the property for a nominal amount.

During the nine months ended September 30, 2017, the Company incurred $2,226 in legal costs relating to this litigation, which are included in general and administrative expense on the Company's unaudited condensed consolidated statement of operations.

LCIF [Member]

Commitments and Contingencies [Line Items]

Commitments and Contingencies

Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, the Partnership has the following commitments and contingencies.

The Partnership is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Partnership, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Partnership and Lexington are parties to a funding agreement under which Lexington may be required to fund distributions made on account of OP units. Pursuant to the funding agreement, if the Partnership does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington is required to fund the shortfall. Payments under the agreement will be made in the form of loans to the Partnership and will bear interest at prevailing rates as determined by Lexington in its discretion, but no less than the applicable federal rate. The Partnership's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts had been advanced under this funding agreement.

In May 2014, the Partnership guaranteed $250,000 aggregate principal amount of 4.40% Senior Notes due 2024 (“2024 Senior Notes”) issued by Lexington at an issuance price of 99.883% of the principal amount and in June 2013, the Partnership guaranteed $250,000 aggregate principal amount of 4.25% Senior Notes due 2023 (“2023 Senior Notes”) issued by Lexington at an issuance price of 99.026% of the principal amount, collectively referred to as the Senior Notes. The Senior Notes are unsecured and pay interest semi-annually in arrears. Lexington may redeem the Senior Notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

From time to time, the Partnership is directly or indirectly involved in legal proceedings arising in the ordinary course of the Partnership's business. The Partnership believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Partnership's business, financial condition and results of operations.

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Supplemental Disclosure of Statement of Cash Flow Information

9 Months Ended

Sep. 30, 2017

Condensed Cash Flow Statements, Captions [Line Items]

Supplemental Disclosure of Statement of Cash Flow Information

Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during the nine months ended September 30, 2017 and 2016, the Company paid $50,691 and $62,995, respectively, for interest and $1,687 and $1,163, respectively, for income taxes.

During the nine months ended September 30, 2016, the Company sold its interests in certain properties, which included the assumption by the buyers of such properties of $242,269 of the related non-recourse mortgage debt.

LCIF [Member]

Condensed Cash Flow Statements, Captions [Line Items]

Supplemental Disclosure of Statement of Cash Flow Information

Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during the nine months ended September 30, 2017 and 2016, the Partnership paid $11,527 and $23,570, respectively, for interest and $121 and $33, respectively, for income taxes.

In 2016, the Partnership sold its interest in certain land investments, which included the assumption of the aggregate related non-recourse mortgage debt of $242,269.

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Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Event [Line Items]

Subsequent Events

Subsequent Events

Subsequent to September 30, 2017 and in addition to disclosures elsewhere in the unaudited condensed consolidated financial statements, the Company:

• acquired an industrial property in Lafayette, Indiana for $17,450;

• disposed of three properties to unrelated third parties for an aggregate gross sale price of $19,043; and

• transferred an office property in Lisle, Illinois to its lender in full satisfaction of the related $9,120 non-recourse mortgage.

LCIF [Member]

Subsequent Event [Line Items]

Subsequent Events

Subsequent Events

Subsequent to September 30, 2017, the Partnership sold its interest in a vacant industrial property for $10,000.

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The Company and Financial Statement Presentation (Policies)

9 Months Ended

Sep. 30, 2017

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of presentation and consolidation

Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries.

Variable interest entity

The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP.

The Company determined that it was the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities, including LCIF, in which the Company has an approximate 96% interest.

Use of estimates

Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair value measurements

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.

Acquisition, development and construction arrangements

Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Recently issued accounting guidance

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Company is finalizing its evaluation of the impact of the standard but currently believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Company will adopt ASU 2014-09 effective January 1, 2018 and anticipates using the modified retrospective approach. As the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that it will be required to bifurcate lease agreements to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be primarily recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 (upon adoption of ASU 2016-02). Additionally, the new ASU will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; with early adoption permitted. The Company continues to evaluate the impact of the adoption of the new guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new guidance on January 1, 2017. This new guidance did not have a material impact on the Company's consolidated financial statements. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however early adoption is permitted. The Company does not believe this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Company's consolidated statement of cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate.  The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company will adopt ASU 2017-05 effective January 1, 2018, along with the adoption of ASU 2014-09, and it is not expected to have a material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

LCIF [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of presentation and consolidation

Basis of Presentation and Consolidation. The Partnership's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities that the Partnership does not control and entities that are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP.

Earnings per unit

Earnings Per Unit. Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of units outstanding during the period. There are no potential dilutive securities.

Unit redemptions

Unit Redemptions. The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for shares of beneficial interests classified as common stock of Lexington, par value $0.0001 per share ("common shares"), on a one to approximately 1.13 basis, subject to future adjustments. These units are not mandatorily redeemable by the Partnership.

Use of estimates

Use of Estimates. The Partnership has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair value measurements

Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk.

Acquisition, development and construction arrangements

Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Recently issued accounting guidance

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Partnership is finalizing its evaluation of the impact of the standard but currently believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Partnership will adopt ASU 2014-09 effective January 1, 2018 and anticipates using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the Partnership does not expect the ASU to have a material impact on the consolidated financial statements upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that it will be required to bifurcate lease agreements to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be primarily recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 (upon adoption of ASU 2016-02). Additionally, the new ASU will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; with early adoption permitted. The Partnership continues to evaluate the impact of the adoption of the new guidance on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however early adoption is permitted. The Partnership does not believe this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Partnership's consolidated statement of cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership will adopt ASU 2017-05 effective January 1, 2018, along with ASU 2014-09, and it is not expected to have a material impact on its consolidated financial statements.

Allocation of overhead expenses

Allocation of Overhead Expenses. The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues.

Distributions and allocations of income and loss

Distributions; Allocations of Income and Loss. As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss.

Co-borrower debt

Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of such obligations as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors.

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The Company and Financial Statement Presentation (Tables)

9 Months Ended

Sep. 30, 2017

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of Variable Interest Entities

Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Real estate, net	$	790,185	$	778,265
Total assets	$	898,620	$	899,801
Mortgages and notes payable, net	$	360,426	$	364,099
Total liabilities	$	371,000	$	395,332

Schedule of Error Corrections and Prior Period Adjustments

The following table shows the affected line items within the Company's unaudited condensed consolidated financial statements:

Three Months ended September 30, 2016
	As Originally Reported			Correction			As Adjusted
Total gross revenues	$	106,331		$	(350	)	$	105,981
Net loss	$	(27,262	)	$	(350	)	$	(27,612	)
Net loss attributable to common shareholders	$	(26,653	)	$	(322	)	$	(26,975	)
Net loss attributable to common shareholders - basic per share	$	(0.11	)	$	(0.01	)	$	(0.12	)
Net loss attributable to common shareholders - diluted per share	$	(0.11	)	$	(0.01	)	$	(0.12	)

Nine Months ended September 30, 2016
	As Originally Reported		Correction		As Adjusted
Total gross revenues	$	327,524	$	6,646	$	334,170
Net income	$	72,875	$	6,646	$	79,521
Net income attributable to common shareholders	$	68,310	$	6,408	$	74,718
Net income attributable to common shareholders - basic per share	$	0.29	$	0.03	$	0.32
Net income attributable to common shareholders - diluted per share	$	0.28	$	0.03	$	0.31

LCIF [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of Error Corrections and Prior Period Adjustments

The following table shows the affected line items within the Partnership's unaudited condensed consolidated financial statements:

For the three months ended September 30, 2016
	As Originally Reported			Correction			As Adjusted
Total gross revenues	$	30,908		$	(350	)	$	30,558
Net loss	$	(60,901	)	$	(678	)	$	(61,579	)
Net loss per unit	$	(0.73	)	$	(0.01	)	$	(0.74	)

For the nine months ended September 30, 2016
	As Originally Reported			Correction		As Adjusted
Total gross revenues	$	98,784		$	6,646	$	105,430
Net income (loss)	$	(26,652	)	$	5,854	$	(20,798	)
Net income (loss) per unit	$	(0.32	)	$	0.07	$	(0.25	)

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016:

	Three Months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
BASIC
Net income (loss) attributable to common shareholders	$	3,916		$	(26,975	)	$	49,832		$	74,718
Weighted-average number of common shares outstanding - basic	237,989,098			234,207,396			237,632,572			233,151,600
Net income (loss) attributable to common shareholders - per common share basic	$	0.02		$	(0.12	)	$	0.21		$	0.32
DILUTED
Net income (loss) attributable to common shareholders - basic	$	3,916		$	(26,975	)	$	49,832		$	74,718
Impact of assumed conversions	(173		)	—			(192		)	(845		)
Net income (loss) attributable to common shareholders	$	3,743		$	(26,975	)	$	49,640		$	73,873
Weighted-average common shares outstanding - basic	237,989,098			234,207,396			237,632,572			233,151,600
Effect of dilutive securities:
Share options	66,748			—			95,788			246,166
OP Units	3,646,869			—			3,713,867			3,818,117
Weighted-average common shares outstanding - diluted	241,702,715			234,207,396			241,442,227			237,215,883
Net income (loss) attributable to common shareholders - per common share diluted	$	0.02		$	(0.12	)	$	0.21		$	0.31

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Investments in Real Estate and Real Estate Under Construction (Tables)

9 Months Ended

Sep. 30, 2017

Real Estate [Line Items]

Schedule of acquired properties

The Company completed the following acquisition and build-to-suit transactions during the nine months ended September 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
			$	587,583		$	25,870	$	501,547	$	62,956	$	(2,790	)

(1) Completed the construction of the final building of a four-building project. Initial cost basis excludes estimated developer partner payout of approximately $8,000.

Summary of development arrangements outstanding

As of September 30, 2017, the Company had the following forward purchase commitments:

Location	Square Feet (000's)	Property Type	Maximum Acquisition Cost		Estimated Acquisition Date	Approximate Lease Term (Yrs)
Warren, MI(1)	260	Industrial	$	47,000	4Q 17	15
Romulus, MI	500	Industrial	39,330		4Q 17	15
Lafayette, IN	309	Industrial	17,450		4Q 17	7
	1,069		$	103,780

(1) A $4,600 letter of credit secures the Company's obligation to purchase the property.

LCIF [Member]

Real Estate [Line Items]

Schedule of acquisition development and construction arrangements outstanding

The Partnership completed the following acquisitions and build-to-suit arrangements during the nine months ended September 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	April 2017	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166
			$	85,656		$	6,937	$	65,049	$	13,670

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Property Dispositions and Real Estate Impairment (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Assets and Liabilities Held for Sale

Assets and liabilities of held for sale properties as of September 30, 2017 and December 31, 2016 consisted of the following:

	September 30, 2017		December 31, 2016
Assets:
Real estate, at cost	$	8,607	$	25,957
Real estate, intangible assets	—		7,789
Accumulated depreciation and amortization	—		(13,346		)
Rent receivable - current	11		—
Rent receivable - deferred	—		1,715
Other assets	20		1,693
	$	8,638	$	23,808
Liabilities:
Other	$	442	$	191
	$	442	$	191

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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Summary of Loans Receivable

The following is a summary of the Company's loans receivable as of December 31, 2016:

	Loan carrying-value(1)
Loan		12/31/2016		Interest Rate		Maturity Date
Kennewick, WA(2)		$	85,709	9.00	%	05/2022
Oklahoma City, OK(3)		8,501		11.50	%	03/2016
		$	94,210

(1) Loan carrying value includes accrued interest and is net of origination costs, if any.

(2) Loan provided for a current pay rate of 8.75%, an accrual rate of 9.0% and a balloon of $87,245 at maturity. During the nine months ended September 30, 2017, the loan was assigned to a third party for 94% of its principal balance. The Company recognized a $5,294 loan loss on the transaction.

(3) In June 2015, the Company loaned a tenant-in-common $8,420. The loan was secured by the tenant-in-common's interest in an office property, in which the Company had a 40% tenant-in-common interest. The loan was satisfied in full in February 2017. The Company incurred professional fees of $376 to collect this loan. Such fees are included in general and administrative expenses on the Company's unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value Measurement Inputs

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	September 30, 2017		(Level 1)		(Level 2)		(Level 3)
Interest rate swap assets	$	510	$	—	$	510	$	—
Impaired real estate assets*	$	20,264	$	—	$	—	$	20,264

	Balance			Fair Value Measurements Using
Description	December 31, 2016			(Level 1)		(Level 2)			(Level 3)
Interest rate swap assets	$	44		$	—	$	44		$	—
Impaired real estate assets*	$	15,801		$	—	$	—		$	15,801
Interest rate swap liabilities	$	(1,077	)	$	—	$	(1,077	)	$	—

*Represents a non-recurring fair value measurement, including assets held for sale. Fair value as of the date of impairment.

Schedule of Carrying Amounts and Fair Value of Financial Instruments

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of September 30, 2017 and December 31, 2016.

	As of September 30, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Loans Receivable	$	—	$	—	$	94,210	$	94,911
Liabilities
Debt	$	2,088,874	$	2,058,863	$	1,860,598	$	1,814,824

LCIF [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value Measurement Inputs

The following table presents the Partnership's assets measured at fair value as of September 30, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	September 30, 2017		(Level 1)		(Level 2)		(Level 3)
Impaired real estate assets*	$	2,090	$	—	$	—	$	2,090

* Represents a non-recurring fair value measurement as of the date of impairment.

Schedule of Carrying Amounts and Fair Value of Financial Instruments

The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of September 30, 2017 and December 31, 2016:

	As of September 30, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	334,329	$	333,181	$	315,616	$	314,509

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Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments

The Company had the following mortgages and notes payable outstanding as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Mortgages and notes payable	$	676,935		$	745,173
Unamortized debt issuance costs	(6,590		)	(7,126		)
	$	670,345		$	738,047

Debt Instrument Redemption

The Company had the following senior notes outstanding as of September 30, 2017 and December 31, 2016:

Issue Date	September 30, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized discount	(1,576		)	(1,780		)
Unamortized debt issuance cost	(3,435		)	(3,858		)
	$	494,989		$	494,362

Schedule of Line of Credit Facilities

A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the revolving credit facility had $200,000 borrowings outstanding, $4,600 of letters of credit and availability of $300,400, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,631 and $3,907 as of September 30, 2017 and December 31, 2016, respectively.

LCIF [Member]

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments

The Partnership had the following mortgages and notes payable outstanding as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Mortgages and notes payable	$	169,173		$	169,958
Unamortized debt issuance costs	(683		)	(746		)
	$	168,490		$	169,212

Schedule of Line of Credit Facilities

A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At September 30, 2017, the revolving credit facility had $200,000 of borrowings outstanding, $4,600 of letters of credit and availability of $300,400 subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of outstanding LIBOR-based borrowings.

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges

As of September 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	10	$505,000

Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016.

	As of September 30, 2017			As of December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Asset	Other Assets	$	510	Other Assets	$	44
Interest Rate Swap Liability	Accounts Payable and Other Liabilities	$	—	Accounts Payable and Other Liabilities	$	(1,077	)

Effect of the Company's Derivative Financial Instruments on the Statements of Operation

The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016.

Derivatives in Cash Flow	Amount of Income (Loss) Recognized in OCI on Derivatives (Effective Portion) September 30,					Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) September 30,
Hedging Relationships	2017		2016				2017		2016
Interest Rate Swaps	$	581	$	(6,035	)	Interest expense	$	962	$	3,091

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Concentration of Risk (Tables)

9 Months Ended

Sep. 30, 2017

LCIF [Member]

Concentration Risk [Line Items]

Schedule of Concentration of Risk

For the nine months ended September 30, 2017 and 2016, the following tenants represented greater than 10% of rental revenues:

	2017		2016
Preferred Freezer Services of Richland, LLC	17.9	%	N/A
SM Ascott LLC(1)	N/A		13.1	%
Tribeca Ascott LLC(1)	N/A		11.2	%
AL-Stone Ground Tenant LLC(1)	N/A		10.2	%

(1) The Partnership net leased these individual land parcels to the tenants under non-cancellable 99-year (original term) leases. The improvements on these parcels are owned by the tenants and consist of three high-rise hotels located in New York, NY. The Partnership sold these assets in September 2016.

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Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Common Stock Granted

During the nine months ended September 30, 2017 and 2016, the Company granted common shares to certain employees as follows:

	Nine Months ended September 30,
	2017	2016
Performance Shares(1)
Shares granted:
Index - 1Q	106,706	404,466
Peer - 1Q	106,705	404,463
Index - 2Q	163,466	—
Peer - 2Q	163,463	—
Grant date fair value per share:(2)
Index - 1Q	$6.82	$4.53
Peer - 1Q	$6.34	$4.58
Index - 2Q	$4.05	—
Peer - 2Q	$4.27	—
Non-Vested Common Shares:(3)
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

(1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. The 2Q shares were subject to shareholder approval, which was obtained in May 2017.

(2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model.

(3) The shares vest ratably over a three-year service period.

Schedule of Accumulated Other Comprehensive Income (Loss)

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:

	Nine Months ended September 30,
	2017			2016
Balance at beginning of period	$	(1,033	)	$	(1,939	)
Other comprehensive income (loss) before reclassifications	581			(6,035		)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	962			3,091
Balance at end of period	$	510		$	(4,883	)

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The Company and Financial Statement Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) state Property $ / shares	Sep. 30, 2016 USD ($) $ / shares	Dec. 31, 2016 $ / shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of properties | Property		180
Variable Interest Entity [Line Items]
Number of states in which entity has interests | state		38
Common shares, par value (in dollars per share) | $ / shares		$ 0.0001		$ 0.0001
Partners capital equivalent in common shares		1.13
LCIF [Member]
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of properties | Property		33
Variable Interest Entity [Line Items]
Number of states in which entity has interests | state		21
Distributions		$ 48,573	$ 49,900
Distribution per weighted average unit (in dollars per share) | $ / shares		$ 0.58	$ 0.60
Percentage of outstanding units owned		96.00%
Common shares, par value (in dollars per share) | $ / shares		$ 0.0001
Partners capital equivalent in common shares		1.13
LCIF [Member] | Limited Partner [Member]
Variable Interest Entity [Line Items]
Share price (in dollars per share) | $ / shares		$ 10.22
Equity, fair value disclosure, portion of limited partner		$ 37,117
Variable Interest Entity, Primary Beneficiary [Member] | LCIF [Member]
Variable Interest Entity [Line Items]
VIE, ownership percentage		96.00%
Restatement Adjustment [Member]
Variable Interest Entity [Line Items]
Proceeds from fees received	$ 7,685
Restatement Adjustment [Member] | LCIF [Member]
Variable Interest Entity [Line Items]
Proceeds from fees received	$ 7,685
Office Building [Member] | Lake Jackson, Texas [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Affiliated Entity [Member]
Variable Interest Entity [Line Items]
VIE, ownership percentage		100.00%
Real estate, net		$ 144,169

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The Company and Financial Statement Presentation - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Real estate, net	$ 3,232,795	$ 3,028,326
Total assets	3,595,156	3,441,467
Mortgages and notes payable, net	670,345	738,047
Total liabilities	2,235,661	2,028,976
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Real estate, net	790,185	778,265
Total assets	898,620	899,801
Mortgages and notes payable, net	360,426	364,099
Total liabilities	$ 371,000	$ 395,332

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The Company and Financial Statement Presentation - Schedule of Error Corrections and Prior Period Adjustment Restatement (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total gross revenues	$ 97,689	$ 105,981	$ 289,472	$ 334,170
Net income (loss)	5,596	(27,612)	55,181	79,521
Net income (loss) attributable to common shareholders	$ 3,916	$ (26,975)	$ 49,832	$ 74,718
Net income (loss) attributable to common shares outstanding - basic (in dollars per share)	$ 0.02	$ (0.12)	$ 0.21	$ 0.32
Net income (loss) attributable to common shareholders - per common share diluted (in dollars per share)	$ 0.02	$ (0.12)	$ 0.21	$ 0.31
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total gross revenues		$ 106,331		$ 327,524
Net income (loss)		(27,262)		72,875
Net income (loss) attributable to common shareholders		$ (26,653)		$ 68,310
Net income (loss) attributable to common shares outstanding - basic (in dollars per share)		$ (0.11)		$ 0.29
Net income (loss) attributable to common shareholders - per common share diluted (in dollars per share)		$ (0.11)		$ 0.28
Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total gross revenues		$ (350)		$ 6,646
Net income (loss)		(350)		6,646
Net income (loss) attributable to common shareholders		$ (322)		$ 6,408
Net income (loss) attributable to common shares outstanding - basic (in dollars per share)		$ (0.01)		$ 0.03
Net income (loss) attributable to common shareholders - per common share diluted (in dollars per share)		$ (0.01)		$ 0.03
LCIF [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total gross revenues	$ 21,242	$ 30,558	$ 61,169	$ 105,430
Net income (loss)	$ (4,422)	$ (61,579)	$ (4,900)	$ (20,798)
Net loss per unit (in dollars per unit)		$ (0.74)		$ (0.25)
LCIF [Member] | Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total gross revenues		$ 30,908		$ 98,784
Net income (loss)		$ (60,901)		$ (26,652)
Net loss per unit (in dollars per unit)		$ (0.73)		$ (0.32)
LCIF [Member] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total gross revenues		$ (350)		$ 6,646
Net income (loss)		$ (678)		$ 5,854
Net loss per unit (in dollars per unit)		$ (0.01)		$ 0.07

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
BASIC
Net income (loss) attributable to common shareholders	$ 3,916	$ (26,975)	$ 49,832	$ 74,718
Weighted-average number of common shares outstanding - basic	237,989,098	234,207,396	237,632,572	233,151,600
Income (loss) per common share:
Net income (loss) attributable to common shares outstanding - basic (in dollars per share)	$ 0.02	$ (0.12)	$ 0.21	$ 0.32
DILUTED
Impact of assumed conversions	$ (173)	$ 0	$ (192)	$ (845)
Net income (loss) attributable to common shareholders	$ 3,743	$ (26,975)	$ 49,640	$ 73,873
Effect of dilutive securities:
Share options (in shares)	66,748	0	95,788	246,166
OP Units (in shares)	3,646,869	0	3,713,867	3,818,117
Weighted-average common shares outstanding (in shares)	241,702,715	234,207,396	241,442,227	237,215,883
Income (loss) per common share:
Net income (loss) attributable to common shareholders - per common share diluted (in dollars per share)	$ 0.02	$ (0.12)	$ 0.21	$ 0.31

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Investments in Real Estate and Real Estate Under Construction - Summary of acquisitions and build-to-suit transactions (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) building
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	$ 587,583
Land and Land Estate	25,870
Building and Improvements	501,547
Lease in-place Value Intangible	62,956
Below Market Lease Intangible	(2,790)
Office Building [Member] | Lake Jackson, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	70,401
Land and Land Estate	3,078
Building and Improvements	67,323
Lease in-place Value Intangible	0
Below Market Lease Intangible	$ 0
Number of buildings completed | building	4
Developer partner payout	$ 8,000
Office Building [Member] | Charlotte, North Carolina [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	61,339
Land and Land Estate	3,771
Building and Improvements	47,064
Lease in-place Value Intangible	10,504
Below Market Lease Intangible	0
Industrial Property [Member] | New Century, Kansas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	12,056
Land and Land Estate	0
Building and Improvements	13,198
Lease in-place Value Intangible	1,648
Below Market Lease Intangible	(2,790)
Industrial Property [Member] | Lebanon, Indiana [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	36,194
Land and Land Estate	2,100
Building and Improvements	29,443
Lease in-place Value Intangible	4,651
Below Market Lease Intangible	0
Industrial Property [Member] | Cleveland, Tennessee [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	34,400
Land and Land Estate	1,871
Building and Improvements	29,743
Lease in-place Value Intangible	2,786
Below Market Lease Intangible	0
Industrial Property [Member] | Grand Prairie, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	24,317
Land and Land Estate	3,166
Building and Improvements	17,985
Lease in-place Value Intangible	3,166
Below Market Lease Intangible	0
Industrial Property [Member] | San Antonio, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	45,507
Land and Land Estate	1,311
Building and Improvements	36,644
Lease in-place Value Intangible	7,552
Below Market Lease Intangible	0
Industrial Property [Member] | Opelika, Alabama [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	37,269
Land and Land Estate	134
Building and Improvements	33,183
Lease in-place Value Intangible	3,952
Below Market Lease Intangible	0
Industrial Property [Member] | McDonough, Georgia [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	66,700
Land and Land Estate	5,441
Building and Improvements	52,762
Lease in-place Value Intangible	8,497
Below Market Lease Intangible	0
Industrial Property [Member] | Byhalia, Mississippi [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	36,590
Land and Land Estate	1,751
Building and Improvements	31,236
Lease in-place Value Intangible	3,603
Below Market Lease Intangible	0
Industrial Property [Member] | Jackson, Tennessee [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	57,920
Land and Land Estate	1,454
Building and Improvements	49,026
Lease in-place Value Intangible	7,440
Below Market Lease Intangible	0
Industrial Property [Member] | Smyrna, Tennessee [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	104,890
Land and Land Estate	1,793
Building and Improvements	93,940
Lease in-place Value Intangible	9,157
Below Market Lease Intangible	0
LCIF [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	85,656
Land and Land Estate	6,937
Building and Improvements	65,049
Lease in-place Value Intangible	13,670
LCIF [Member] | Office Building [Member] | Charlotte, North Carolina [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	61,339
Land and Land Estate	3,771
Building and Improvements	47,064
Lease in-place Value Intangible	10,504
LCIF [Member] | Industrial Property [Member] | Grand Prairie, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	24,317
Land and Land Estate	3,166
Building and Improvements	17,985
Lease in-place Value Intangible	$ 3,166

XML

Investments in Real Estate and Real Estate Under Construction - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Property	Sep. 30, 2016 USD ($) Property	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Aggregate acquisition expenses				$ 1,100	$ 329
Construction in progress	$ 0			0		$ 106,652
Proceeds from sale of real estate				186,499	293,634
Debt satisfaction charges, net	(2,424)	$ (2,538)		(2,378)	818
Asset impairment charges	21,986	72,890		43,577	75,904
Development Deals [Member]
Business Acquisition [Line Items]
Capitalized interest						3,442
LCIF [Member]
Business Acquisition [Line Items]
Construction in progress	0			0		$ 40,443
Proceeds from sale of real estate				7,106	185,219
Impairment of real estate				5,259
Debt satisfaction charges, net	0	5,773		0	7,388
Asset impairment charges	$ 6,802	$ 65,509		12,061	$ 67,935
LCIF [Member] | Office Building [Member]
Business Acquisition [Line Items]
Asset impairment charges				$ 6,802
LCIF [Member] | New York, New York [Member]
Business Acquisition [Line Items]
Number of properties sold | Property					3
Lease Term (Years)					99 years
Deferred rent receivables, written off					$ 91,213
LCIF [Member] | Certain Properties [Member]
Business Acquisition [Line Items]
Number of properties sold | Property				2
Proceeds from sale of real estate			$ 445,565	$ 7,591
Gain on sale of properties			16,029
Debt satisfaction charges, net			7,388
Asset impairment charges			$ 67,935

XML

Investments in Real Estate and Real Estate Under Construction - Summary of forward purchase commitments (Details) ft² in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) ft²
Real Estate [Line Items]
Square Feet | ft²	1,069
Maximum Acquisition Cost	$ 103,780
Industrial Property [Member] | Warren, MI [Member]
Real Estate [Line Items]
Square Feet | ft²	260
Maximum Acquisition Cost	$ 47,000
Approximate Lease Term (Yrs)	15 years
Letters of credit outstanding, amount	$ 4,600
Industrial Property [Member] | Romulus, Michigan [Member]
Real Estate [Line Items]
Square Feet | ft²	500
Maximum Acquisition Cost	$ 39,330
Approximate Lease Term (Yrs)	15 years
Industrial Property [Member] | Lafayette, Indiana [Member]
Real Estate [Line Items]
Square Feet | ft²	309
Maximum Acquisition Cost	$ 17,450
Approximate Lease Term (Yrs)	7 years

XML

Property Dispositions and Real Estate Impairment - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) property	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) property	Sep. 30, 2016 USD ($)	Dec. 31, 2016 property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Debt satisfaction gains (charges), net	$ 2,424	$ 2,538	$ 2,378	$ (818)
Number of real estate properties held for sale | property	1		1		2
Impairment of assets held-for-use			$ 38,283	75,904
Office Building [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Debt satisfaction amount			3,496	14,118
Transferred Property [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Debt satisfaction gains (charges), net			2,381	(381)
Transferred Property [Member] | Office Building [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate gross disposition price			190,368
Sold Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate gross disposition price				561,817
Gain on sale of properties			$ 55,078	$ 58,413

XML

Property Dispositions and Real Estate Impairment - Schedule of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Real estate, at cost	$ 8,607	$ 25,957
Real estate, intangible assets	0	7,789
Accumulated depreciation and amortization	0	(13,346)
Rent receivable - current	11	0
Rent receivable - deferred	0	1,715
Other assets	20	1,693
Assets held for sale	8,638	23,808
Liabilities:
Other	442	191
Liabilities held for sale	$ 442	$ 191

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Loans Receivable (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan carrying-value		$ 94,210
Kennewick, Washington [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan carrying-value		$ 85,709
Interest rate of mortgage loans	9.00%	9.00%
Loans receivable, current pay rate	8.75%
Periodic payment terms, balloon payment to be received	$ 87,245
Percent of principal balance	94.00%
Loss on the transaction	$ 5,294
Oklahoma City, Oklahoma [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan carrying-value		$ 8,501
Interest rate of mortgage loans		11.50%
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan carrying-value				$ 8,420
Ownership percentage			40.00%	40.00%
Professional fees	$ 376

XML

Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	$ 510	$ 44
Interest rate swap liabilities		(1,077)
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	0	0
Interest rate swap liabilities		0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	510	44
Interest rate swap liabilities		(1,077)
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	0	0
Interest rate swap liabilities		0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	20,264	15,801
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	20,264	$ 15,801
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	2,090
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	$ 2,090

XML

Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Carrying value of loans receivable	$ 0	$ 94,210
Carrying Amount [Member] | Fair Value Measurements Using Level 3 [Member]
Assets
Carrying value of loans receivable	0	94,210
Liabilities
Carrying value of debt	2,088,874	1,860,598
Carrying Amount [Member] | Fair Value Measurements Using Level 3 [Member] | LCIF [Member]
Liabilities
Carrying value of debt	334,329	315,616
Fair Value [Member] | Fair Value Measurements Using Level 3 [Member]
Assets
Fair value of loans receivable	0	94,911
Liabilities
Fair value of debt	2,058,863	1,814,824
Fair Value [Member] | Fair Value Measurements Using Level 3 [Member] | LCIF [Member]
Liabilities
Fair value of debt	$ 333,181	$ 314,509

XML

Investment in and Advances to Non-Consolidated Entities (Details) - USD ($)		1 Months Ended			3 Months Ended		9 Months Ended		26 Months Ended
	Sep. 01, 2012	Feb. 28, 2017	Jan. 31, 2016	Jul. 31, 2014	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2015
Investments in and Advances to Affiliates [Line Items]
Non-recourse debt					$ 46,661,000		$ 46,661,000
Real estate, at cost					3,837,705,000		3,837,705,000		$ 3,533,172,000
Investment in joint venture							4,068,000	$ 33,554,000
Equity in earnings (losses) of non-consolidated entities					283,000	$ 340,000	(1,064,000)	6,394,000
Palm Beach Gardens, Florida [Member]
Investments in and Advances to Affiliates [Line Items]
Impairment of real estate							3,512,000
Real estate, at cost					$ 0		0
Houston, TX [Member]
Investments in and Advances to Affiliates [Line Items]
Construction cost									79,964,000
Maximum construction financing							56,686,000
Investment in joint venture							$ 48,771,000
Houston, TX [Member] | Joint Venture [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage					25.00%		25.00%
Office Building [Member] | Russellville, Arkansas [Member]
Investments in and Advances to Affiliates [Line Items]
Proceeds from divestiture of interest in joint venture			$ 6,681,000
Gain on sale of properties			$ 5,378,000
Lexington Realty Trust [Member]
Investments in and Advances to Affiliates [Line Items]
Non-recourse debt					$ 8,395,000		$ 8,395,000
LCIF [Member]
Investments in and Advances to Affiliates [Line Items]
Real estate, at cost					761,733,000		761,733,000		731,202,000
Investment in joint venture							1,067,000	81,000
Equity in earnings (losses) of non-consolidated entities					79,000	$ 49,000	338,000	252,000
LCIF [Member] | Net Lease Strategic Assets Fund L.P. [Member] | Equity Method Investments [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	2.00%
Investment in joint venture	$ 189,000
Limited partners' capital account, units issued (in units)	457,211
Partnership carrying value in NLS					$ 5,436,000		5,436,000		$ 5,224,000
Equity in earnings (losses) of non-consolidated entities							323,000	236,000
Contributions to equity method investment							1,067,000	81,000
Distributions received							$ 1,178,000	$ 661,000
LCIF [Member] | Office Building [Member] | Philadelphia, Pennsylvania [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage				1.00%
Investment in non-consolidated entity				$ 263,000
Minimum [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage					15.00%		15.00%
Maximum [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage					25.00%		25.00%
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage										40.00%	40.00%
Proceeds from divestiture of interest in joint venture		$ 6,198,000
Gain on sale of properties		$ 1,452,000

XML

Debt - Schedule of Mortgages and Notes Payable (Details) - Mortgages and Notes Payable [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Mortgages and notes payable	$ 676,935	$ 745,173
Unamortized debt issuance costs	(6,590)	(7,126)
Long-term debt	670,345	738,047
LCIF [Member]
Debt Instrument [Line Items]
Mortgages and notes payable	169,173	169,958
Unamortized debt issuance costs	(683)	(746)
Long-term debt	$ 168,490	$ 169,212

XML

Debt - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2007	Aug. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Debt satisfaction charges, net	$ (2,424,000)	$ (2,538,000)	$ (2,378,000)	$ 818,000
LCIF [Member]
Debt Instrument [Line Items]
Weighted average interest rate	4.70%		4.70%				4.70%
Co-borrower debt	$ 165,839,000		$ 165,839,000				$ 146,404,000
Debt satisfaction charges, net	$ 0	$ 5,773,000	0	7,388,000
Various Debt Instruments [Member]
Debt Instrument [Line Items]
Debt satisfaction charges, net			$ 3,000	$ 437,000
Minimum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Stated interest rate	4.00%		4.00%				4.00%
Maximum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Stated interest rate	6.50%		6.50%				6.50%
Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Weighted average interest rate	4.60%		4.60%				4.60%
Mortgages and Notes Payable [Member] | Minimum [Member]
Debt Instrument [Line Items]
Stated interest rate	2.20%		2.20%				2.20%
Mortgages and Notes Payable [Member] | Maximum [Member]
Debt Instrument [Line Items]
Stated interest rate	7.80%		7.80%				7.80%
Unsecured Debt [Member] | Unsecured Credit Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,105,000,000		$ 1,105,000,000			$ 905,000,000
Maximum borrowing capacity with lender approval	2,010,000,000		2,010,000,000
Unsecured Debt [Member] | Unsecured Credit Agreement [Member] | LCIF [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	1,105,000,000		1,105,000,000			$ 905,000,000
Maximum borrowing capacity with lender approval	2,010,000,000		2,010,000,000
6.804% Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Stated interest rate					6.804%
Face amount of debt instrument					$ 200,000,000
Principal amount outstanding	129,120,000		129,120,000				$ 129,120,000
Unamortized debt issuance costs	$ 1,949,000		$ 1,949,000				$ 2,024,000
Interest rate, effective percentage	3.011%		3.011%
6.804% Trust Preferred Securities [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate					1.70%

XML

Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes [Member] - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Face amount of debt instrument	$ 500,000,000	$ 500,000,000
Unamortized discount	(1,576,000)	(1,780,000)
Unamortized debt issuance costs	(3,435,000)	(3,858,000)
Long-term debt	494,989,000	494,362,000
Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 250,000,000	250,000,000
Stated interest rate	4.40%
Percentage of issuance price	99.883%
Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 250,000,000	$ 250,000,000
Stated interest rate	4.25%
Percentage of issuance price	99.026%

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Debt - Schedule of Credit Agreement Terms (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Aug. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 300,400,000
Revolving credit facility borrowings	200,000,000		$ 0
LCIF [Member]
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 300,400,000
Weighted average interest rate	4.70%		4.70%
Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 3,631,000		$ 3,907,000
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.85%
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.85%
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.55%
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.55%
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility borrowings	$ 200,000,000
Letters of credit outstanding, amount	4,600,000
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member] | LCIF [Member]
Debt Instrument [Line Items]
Revolving credit facility borrowings	200,000,000
Letters of credit outstanding, amount	4,600,000
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 505,000,000	$ 400,000,000
Basis spread on variable rate	1.00%
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member] | LCIF [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 505,000,000	400,000,000
Basis spread on variable rate	1.00%
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000	250,000,000
Basis spread on variable rate	1.10%
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member] | LCIF [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000	250,000,000
Basis spread on variable rate	1.10%
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member] | LCIF [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000	255,000,000
Basis spread on variable rate	1.10%
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member] | LCIF [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000	$ 255,000,000
Basis spread on variable rate	1.10%
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 250,000,000
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member] | LCIF [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 250,000,000
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Weighted average interest rate	1.09%
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member] | LCIF [Member]
Debt Instrument [Line Items]
Weighted average interest rate	1.09%
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 255,000,000
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member] | LCIF [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	$ 255,000,000
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Weighted average interest rate	1.42%
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member] | LCIF [Member]
Debt Instrument [Line Items]
Weighted average interest rate	1.42%

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Derivatives and Hedging Activities (Details)	9 Months Ended
	Sep. 30, 2017 USD ($) Financial_Instrument	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Derivative [Line Items]
Expected amount of derivative related interest to be reclassified to interest expense over the next 12 months	$ 297,000
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative asset	510,000		$ 44,000
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accounts Payable And Other Liabilities [Member]
Derivative [Line Items]
Derivative liability	0		$ (1,077,000)
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount	$ 505,000,000
Number of derivative instruments held | Financial_Instrument	10
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member]
Derivative [Line Items]
Amount of income (loss) recognized in OCI on derivatives (effective portion)	$ 581,000	$ (6,035,000)
Amount of loss reclassified from accumulated OCI into income (effective portion)	$ 962,000	$ 3,091,000

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Concentration of Risk (Details)	9 Months Ended
	Sep. 30, 2017 Property	Sep. 30, 2016 hotel
Concentration Risk [Line Items]
Number of properties	180
LCIF [Member]
Concentration Risk [Line Items]
Lease term (in years)		99 years
Number of properties	33
LCIF [Member] | Tenant Concentration Risk [Member] | Preferred Freezer Services of Richland, LLC [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	17.90%
LCIF [Member] | Tenant Concentration Risk [Member] | SM Ascott LLC [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		13.10%
LCIF [Member] | Tenant Concentration Risk [Member] | Tribeca Ascott LLC [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		11.20%
LCIF [Member] | Tenant Concentration Risk [Member] | AL Stone Ground Tenant LLC [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		10.20%
Hotel [Member] | LCIF [Member]
Concentration Risk [Line Items]
Number of properties | hotel		3

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Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($) $ / shares shares	Jul. 31, 2015 shares
Equity [Line Items]
Proceeds from issuance of common shares | $	$ 16,848	$ 2,686
Authorized amount (in shares)			10,000,000
Treasury stock acquired (in shares)	0	1,184,113
Treasury stock acquired, average cost (in dollars per share) | $ / shares		$ 7.56
OP unit equivalent in common shares	1.13
Partners' capital account (in units)	3,225,000
Stock Compensation Plan [Member]
Equity [Line Items]
Shares granted (in shares)	44,238	43,503
Grant date fair value | $	$ 463	$ 350
At The Market [Member]
Equity [Line Items]
Common shares issued during period (in shares)	1,593,603
Proceeds from issuance of common shares | $	$ 17,362
Direct Share Purchase Plan [Member]
Equity [Line Items]
Common shares issued during period (in shares)		577,823
Proceeds from issuance of common stock, net | $		$ 4,115

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Equity - Schedule of Shares Issued (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Performance Shares [Member]
Class of Stock [Line Items]
Shares vested measurement period (in years)	3 years
Performance Shares [Member] | Index Performance Shares - 1Q [Member]
Class of Stock [Line Items]
Shares granted (in shares)	106,706	404,466
Grant date fair value per share (in dollars per share)	$ 6.82	$ 4.53
Performance Shares [Member] | Peer Performance Shares - 1Q [Member]
Class of Stock [Line Items]
Shares granted (in shares)	106,705	404,463
Grant date fair value per share (in dollars per share)	$ 6.34	$ 4.58
Performance Shares [Member] | Index Performance Shares - 2Q [Member]
Class of Stock [Line Items]
Shares granted (in shares)	163,466	0
Grant date fair value per share (in dollars per share)	$ 4.05	$ 0.00
Performance Shares [Member] | Peer Performance Shares - 2Q [Member]
Class of Stock [Line Items]
Shares granted (in shares)	163,463	0
Grant date fair value per share (in dollars per share)	$ 4.27	$ 0.00
Restricted Stock [Member]
Class of Stock [Line Items]
Shares granted (in shares)	237,560	225,090
Grant date fair value	$ 2,551	$ 1,724
Award requisite service period (in years)	3 years

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Equity - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 1,412,491	$ 1,462,531
Ending Balance	1,359,495	1,422,888
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(1,033)	(1,939)
Ending Balance	510	(4,883)
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications	581	(6,035)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	$ 962	$ 3,091

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Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
LCIF [Member]
Related Party Transaction [Line Items]
Redemption of OP units (in units)		2,675,785
Redemption of OP units		$ 129,990
General and administrative expense		4,911	$ 7,262
Property operating expenses		515	580
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Maximum amount to be distributed from (to) related party	$ (107)	(107)
Lexington Realty Trust [Member] | LCIF [Member]
Related Party Transaction [Line Items]
Maximum amount to be distributed from (to) related party	$ (2,157)	(2,157)		$ 5,967
Unit distributions earned		$ 46,732	48,032
Redemption of OP units (in units)	2,675,785
Distribution amount (in dollars per share)	$ 3.25	$ 3.25
Redemption of OP units	$ 129,990
Interest expense		$ 5,913	$ 9,605

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Commitments and Contingencies (Details) - USD ($)			1 Months Ended		9 Months Ended
	Oct. 06, 2017	Sep. 16, 2015	May 31, 2014	Jun. 30, 2013	Sep. 30, 2017	Dec. 31, 2016
Senior Notes [Member]
Commitments and Contingencies [Line Items]
Face amount of debt instrument					$ 500,000,000	$ 500,000,000
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Commitments and Contingencies [Line Items]
Face amount of debt instrument					$ 250,000,000	250,000,000
Debt instrument, interest rate, stated percentage					4.40%
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Commitments and Contingencies [Line Items]
Face amount of debt instrument					$ 250,000,000	$ 250,000,000
Debt instrument, interest rate, stated percentage					4.25%
LCIF [Member] | Maximum [Member]
Commitments and Contingencies [Line Items]
Debt instrument, interest rate, stated percentage					6.50%	6.50%
LCIF [Member] | Senior Notes [Member] | Senior Notes Due 2024 [Member]
Commitments and Contingencies [Line Items]
Face amount of debt instrument			$ 250,000,000
Debt instrument, interest rate, stated percentage			4.40%
Debt instrument, redemption price, percentage			99.883%
LCIF [Member] | Senior Notes [Member] | Senior Notes Due 2023 [Member]
Commitments and Contingencies [Line Items]
Face amount of debt instrument				$ 250,000,000
Debt instrument, interest rate, stated percentage				4.25%
Debt instrument, redemption price, percentage				99.026%
Bridgewater Hills Corporate Center, LLC [Member]
Commitments and Contingencies [Line Items]
Damages sought		$ 9,200,000
Estimated litigation liability					$ 2,050,000
Litigation reserve					$ 2,226,000
Bridgewater Hills Corporate Center, LLC [Member] | Subsequent Event [Member]
Commitments and Contingencies [Line Items]
Litigation payment	$ 2,050,000
Bridgewater Hills Corporate Center, LLC [Member] | Maximum [Member]
Commitments and Contingencies [Line Items]
Estimate of possible loss (shall not exceed)		$ 10,000,000

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Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Condensed Cash Flow Statements, Captions [Line Items]
Interest paid	$ 50,691	$ 62,995
Income taxes paid, net	1,687	1,163
LCIF [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Interest paid	11,527	23,570
Income taxes paid, net	$ 121	33
Interests Sold [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Assumption of debt		$ 242,269
Interests Sold [Member] | LCIF [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Assumption of debt			$ 242,269

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Subsequent Events (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Nov. 07, 2017 USD ($) Property	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Subsequent Event [Line Items]
Acquisition of real estate		$ 418,574	$ 70,297
Office Building [Member]
Subsequent Event [Line Items]
Debt satisfaction amount		3,496	14,118
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of properties sold | Property	3
Proceeds from sale of real estate	$ 19,043
Subsequent Event [Member] | Industrial Property [Member] | Lafayette, Indiana [Member]
Subsequent Event [Line Items]
Acquisition of real estate	17,450
Subsequent Event [Member] | Office Building [Member] | Lisle, Illinois [Member]
Subsequent Event [Line Items]
Debt satisfaction amount	9,120
LCIF [Member]
Subsequent Event [Line Items]
Acquisition of real estate		$ 24,317	$ 0
LCIF [Member] | Subsequent Event [Member] | Industrial Property [Member]
Subsequent Event [Line Items]
Proceeds from sale of real estate	$ 10,000