8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant

to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 20, 2020

LEXINGTON REALTY TRUST
(Exact name of registrant as specified in its charter)
Maryland	1-12386	13-3717318
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
One Penn Plaza, Suite 4015, New York, New York		10119-4015
(Address of principal executive offices)		(Zip Code)

	(212) 692-7200
(Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

¨    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered	Ticker symbol
Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock	New York Stock Exchange	LXP
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share	New York Stock Exchange	LXPPRC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth 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. ¨ 

Item 2.02. Results of Operations and Financial Condition.

On February 20, 2020, we issued a press release announcing our financial results for the quarter ended December 31, 2020. A copy of the press release is furnished herewith as part of Exhibit 99.1.

The information furnished pursuant to this “Item 2.02 - Results of Operations and Financial Condition”, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, which we refer to as the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

On February 20, 2020, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, Fourth Quarter 2019,” a copy of which is furnished herewith as Exhibit 99.1.

Also on February 20, 2020, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.2.

The information furnished pursuant to this “Item 7.01 - Regulation FD Disclosure”, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing. Information contained on our web site is not incorporated by reference into this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1	Quarterly Supplemental Information, Fourth Quarter 2019.
99.2	February 20, 2020 Conference Call Transcript.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Lexington Realty Trust
Date: February 20, 2020	By:	/s/ Beth Boulerice
		Beth Boulerice
		Chief Financial Officer

EX-99.1

Exhibit 99.1

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

December 31, 2019

Table of Contents

Section	Page
Fourth Quarter 2019 Earnings Press Release	3
Portfolio Data
Investments / Capital Recycling Summary	15
Development Projects	16
Financing Summary	17
Leasing Summary	18
Other Revenue Data	20
Portfolio Detail by Asset Class	22
Portfolio Composition	23
Components of Net Asset Value	24
Portfolio Concentration	25
Tenant Industry Diversification	29
Top 15 Tenants	30
Lease Rollover Schedules	31
Property Leases and Vacancies	33
Select Credit Metrics Summary	43
Financial Covenants	44
Mortgages and Notes Payable	45
Debt Maturity Schedule	46
Selected Balance Sheet Account Data	47
Non-GAAP Measures – Definitions	48
Reconciliation of Non-GAAP Measures	50
Investor Information	54

This Quarterly Earnings Press Release and Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of Lexington Realty Trust (“Lexington”), which may cause actual results, performance or achievements of Lexington and its subsidiaries to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington’s periodic reports filed with the Securities and Exchange Commission, including, but not limited to, risks related to: (1) the authorization of Lexington’s Board of Trustees of future dividend declarations, (2) Lexington’s ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO available to all equity holders and unitholders – diluted for the year ending December 31, 2020, (3) the successful consummation of any lease, acquisition, build-to-suit, development project, disposition, financing or other transaction on the terms described herein or at all, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any new legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington’s web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington’s 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,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to revise those forward-looking statements to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized.

LEXINGTON REALTY TRUST

TRADED: NYSE: LXP

ONE PENN PLAZA, SUITE 4015

NEW YORK, NY 10119-4015

FOR IMMEDIATE RELEASE

LEXINGTON REALTY TRUST REPORTS FOURTH QUARTER 2019 RESULTS

New York, NY - February 20, 2020 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the fourth quarter and year ended December 31, 2019.

Fourth Quarter 2019 Highlights

• Generated Net Income attributable to common shareholders of $83.6 million, or $0.33 per diluted common share.

• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $52.4 million, or $0.20 per diluted common share.

• Raised net proceeds of approximately $71.0 million by issuing approximately 6.6 million common shares through the ATM program.

• Disposed of 10 properties for an aggregate gross sale price of $172.7 million.

• Acquired six industrial properties for an aggregate cost of $264.1 million.

• Invested an aggregate of approximately $15.0 million in three new industrial development projects.

• Completed 2.2 million square feet of new leases and lease extensions.

• Declared a quarterly common share/unit dividend/distribution of $0.105 per share/unit, an increase of 2.4%.

• Increased industrial portfolio to 81.5% of gross real estate assets.

Full Year 2019 Highlights

• Generated Net Income attributable to common shareholders of $273.2 million, or $1.15 per diluted common share.

• Generated Adjusted Company FFO of $196.6 million, or $0.80 per diluted common share.

• Disposed of 22 properties for an aggregate gross sale price of $621.6 million.

• Acquired 17 industrial properties for an aggregate cost of $703.8 million.

• Invested an aggregate of $18.5 million in industrial development projects.

• Increased total gross book value attributable to industrial assets from 71.2% to 81.5%.

• Satisfied $199.2 million of secured debt at a weighted-average interest rate of 4.4%.

• Extended the maturity of the revolving credit facility to 2023 and 2021 term loan to 2025, lowered the applicable margin rate and increased the commitment on the revolving credit facility, and swapped the LIBOR portion of the term loan interest rate to obtain a current fixed interest rate of 2.732% per annum.

• Completed 6.4 million square feet of new leases and lease extensions, raising renewal Base Rents by 7.5%.

3

Subsequent Events

• Acquired four industrial properties for an aggregate gross cost of approximately $195.0 million.

Adjusted Company FFO is a non-GAAP financial measure. It and certain other non-GAAP financial measures are defined and reconciled later in this press release.

T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented “Our excellent fourth quarter execution raised overall 2019 investment activity to more than $700 million of high-quality industrial assets. Further, property sales exceeded $620 million, and leasing volume was approximately six million square feet. Adding to our growth opportunities, we invested approximately $15 million during the quarter in three new development projects. We were also active on the capital markets front during the quarter, raising net proceeds of $71 million through our ATM program.

We continue to focus on becoming a single-tenant industrial REIT, having made tremendous progress thus far in repositioning our portfolio. At year-end, our industrial exposure represented nearly 82% of gross book value, and we are well-positioned to grow our industrial portfolio to 90% or more of gross book value by year-end 2020. As a result of all of these positive developments, we announced early in the fourth quarter an increase in our annualized dividend to $0.42 per share, with the intent of raising it steadily each year moving forward, subject to Board approval.”

FINANCIAL RESULTS

Revenues

For the quarter ended December 31, 2019, total gross revenues were $83.0 million, compared with total gross revenues of $88.2 million for the quarter ended December 31, 2018. The decrease was primarily attributable to a decrease in revenue due to property sales, partially offset by 2019 and 2018 property acquisitions.

Net Income Attributable to Common Shareholders

For the quarter ended December 31, 2019, net income attributable to common shareholders was $83.6 million, or $0.33 per diluted share, compared with net income attributable to common shareholders for the quarter ended December 31, 2018 of $23.8 million, or $0.10 per diluted share.

Adjusted Company FFO

For the quarter ended December 31, 2019, Lexington generated Adjusted Company FFO of $52.4 million, or $0.20 per diluted share, compared to Adjusted Company FFO for the quarter ended December 31, 2018 of $53.7 million, or $0.22 per diluted share.

4

Dividends/Distributions

As previously announced, during the fourth quarter of 2019, Lexington declared its quarterly common share/unit dividend/distribution for the quarter ended December 31, 2019 of $0.105 per common share/unit, an increase of 2.4%, which was paid on January 15, 2020 to common shareholders/unitholders of record as of December 31, 2019. Lexington previously declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended December 31, 2019, which was paid February 18, 2020 to Series C Preferred shareholders of record as of January 31, 2020.

TRANSACTIONS

ACQUISITION TRANSACTIONS

Property Type	Market	Sq. Ft.		Initial Basis ($000)		Approximate Lease Term (Yrs)
Industrial - warehouse/distribution	Greenville/Spartanburg, SC		196,000	$	16,817		5
Industrial - warehouse/distribution	Greenville/Spartanburg, SC		177,320		15,583		6
Industrial - warehouse/distribution	Phoenix, AZ		186,336		21,020		7
Industrial - warehouse/distribution	Phoenix, AZ		801,424		67,079		11
Industrial - warehouse/distribution	Chicago, IL		1,034,200		49,348		10
Industrial - warehouse/distribution	Greenville/Spartanburg, SC		1,318,680		94,233		15
			3,713,960	$	264,080

Including fourth quarter acquisition activity, consolidated 2019 acquisition activity totaled $703.8 million at aggregate weighted-average GAAP and cash capitalization rates of 5.8% and 5.4%, respectively.

DEVELOPMENT PROJECTS

Project (% owned)	Market	Property Type	Estimated Sq. Ft.		Estimated Project Cost ($000)		GAAP Investment Balance as of 12/31/2019 ($000)(1)		Lexington Amount Funded as of 12/31/2019 ($000)		Estimated Completion Date
Consolidated:
Fairburn (90%)	Atlanta, GA	Industrial		910,000	$	53,812	$	10,088	$	7,687	4Q 20
Rickenbacker (100%)	Columbus, OH	Industrial		320,000		20,300		3,225		2,805	1Q 21
					$	74,112	$	13,313	$	10,492
Non-consolidated:
ETNA Park 70 (90%)(2)	Columbus, OH	Industrial		TBD		TBD	$	8,352	$	8,644	TBD
ETNA Park 70 East (90%)(2)	Columbus, OH	Industrial		TBD		TBD		4,310		4,351	TBD
							$	12,662	$	12,995

1. GAAP investment balance is in real estate under construction for consolidated projects and in investments in non-consolidated entities for non-consolidated projects.

2. Plans and specifications for completion have not been completed and the estimated square footage, project cost and completion date cannot be determined.

5

PROPERTY DISPOSITIONS    

Primary Tenant	Location	Property Type	Gross Disposition Price ($000)		Annualized Net Income (Loss)(1) ($000)			Annualized NOI(1) ($000)			Month of Disposition		% Leased
Home Depot	Danville, VA	Other	$	4,650	$	205		$	276			October		100	%
Vacant	Watertown, NY	Other		500		(240	)		(244	)		October		0	%
Multi-Tenant	Indianapolis, IN	Office		8,640		1,212			1,665			November		21	%
Multi-Tenant	Farmers Branch, TX	Office		30,874		844			1,777			November		88	%
Vacant	Fairlea, WV	Other		390		(85	)		(86	)		November		0	%
Faurecia	Auburn Hills, MI	Office		48,363		1,695			3,361			December		100	%
Multi-Tenant	Houston, TX	Office		20,041		(613	)		(477	)		December		66	%
Cummins	Columbus, IN	Office		46,915		2,413			4,868			December		100	%
Mimeo	Memphis, TN	Industrial		4,050		398			459			December		77	%
Alstom Power	Midlothian, VA	Office		8,300		1,654			1,881			December		100	%
			$	172,723	$	7,483		$	13,480

1. Generally, quarterly period prior to sale annualized, excluding impairment charges.

Including fourth quarter disposition activity, consolidated 2019 property disposition volume totaled $621.6 million at aggregate weighted-average GAAP and cash capitalization rates of 6.4% and 5.6%, respectively.

LEASING

During the fourth quarter of 2019, Lexington executed the following new and extended leases:

	LEASE EXTENSIONS
	Location		Primary Tenant(1)	Prior Term	Lease Expiration Date	Sq. Ft.
	Industrial
1	Antioch	TN	Wirtgen	12/2019	12/2021		73,500
2	Laurens	SC	Michelin	03/2020	01/2021		1,164,000
3	Austell	GA	Mars Wrigley	05/2020	05/2025		604,852
3	Total industrial lease extensions						1,842,352

	NEW LEASES
	Location			Lease Expiration Date	Sq. Ft.
	Industrial
1	Tampa	FL	RC Moore	02/2023		229,605
1	Total industrial new leases					229,605
	Office
1	Phoenix	AZ	Valor IT	07/2025		10,785
2	Lenexa	KS	Quest Diagnostics	06/2030		77,484
2	Total office new leases					88,269
3	Total new leases					317,874
6	TOTAL NEW AND EXTENDED LEASES					2,160,226

1. Leases greater than 10,000 square feet.

As of December 31, 2019, Lexington's portfolio was 97.0% leased.

6

BALANCE SHEET/CAPITAL MARKETS

In the fourth quarter of 2019, Lexington issued approximately 6.6 million common shares under its ATM program raising net proceeds of approximately $71.0 million.

In the fourth quarter of 2019, Lexington satisfied $22.0 million of non-recourse debt. In addition, Lexington assumed $41.9 million of non-recourse debt in connection with the acquisition of a property in the Phoenix, Arizona market. The non-recourse debt has a fixed interest rate of 4.29% and matures in 2031.

As of December 31, 2019, Lexington did not have an outstanding balance under its unsecured revolving credit facility.

2020 EARNINGS GUIDANCE

Lexington estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2020 will be within an expected range of $0.95 to $0.98. Lexington estimates that its Adjusted Company FFO for the year ended December 31, 2020 will be within an expected range of $0.74 to $0.77 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FOURTH QUARTER 2019 CONFERENCE CALL

Lexington will host a conference call today February 20, 2020, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2019. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through May 20, 2020, at 1-877-344-7529 (U.S.), 1-412-317-0088 (International) or 1-855-669-9658 (Canada); pin code for all replay numbers is 10138613. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

7

 ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. Lexington seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions, including acquisitions. For more information, including Lexington's Quarterly Supplemental Information package, or to follow Lexington on social media, visit www.lxp.com.

Contact:

Investor or Media Inquiries for Lexington Realty Trust:

Heather Gentry, Senior Vice President of Investor Relations

Lexington Realty Trust

Phone: (212) 692-7200 E-mail: hgentry@lxp.com

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington's control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the authorization by Lexington's Board of Trustees of future dividend declarations, (2) Lexington's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2020, (3) the successful consummation of any lease, acquisition, build-to-suit, development project, disposition, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's 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,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

References to Lexington refer to Lexington Realty Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity 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 special purpose entity or 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 of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

8

Non-GAAP Financial Measures - Definitions

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures.

Lexington believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles (“GAAP”), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating Lexington's financial performance or cash flow from operating, investing or financing activities or liquidity.

Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash interest, net, (6) non-cash charges, net, (7) cash paid for tenant improvements, and (8) cash paid for lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), Lexington believes it provides a meaningful indication of its ability to fund cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

Funds from Operations (“FFO”) and Adjusted Company FFO: Lexington believes 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. Lexington believes 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 (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

Lexington presents FFO available to common shareholders and unitholders - basic and also presents 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 Lexington’s common shares, are converted at the beginning of the period. Lexington also presents 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 Lexington's real estate portfolio. Lexington believes 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 Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate (or has generated) divided by the acquisition/completion cost (or sale) price.

Net Operating Income (“NOI”): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington's NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Lexington believes that net income is the most directly comparable GAAP measure to NOI.

# # #

9

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three months ended December 31,						Twelve months ended December 31,
	2019			2018			2019			2018
Gross revenues:
Rental revenue	$	81,564		$	87,251		$	320,622		$	395,339
Other revenue		1,472			932			5,347			1,632
Total gross revenues		83,036			88,183			325,969			396,971
Expense applicable to revenues:
Depreciation and amortization		(35,977	)		(38,498	)		(147,594	)		(168,191	)
Property operating		(11,052	)		(9,614	)		(42,018	)		(42,675	)
General and administrative		(7,133	)		(7,763	)		(30,785	)		(31,662	)
Non-operating income		335			893			2,262			1,859
Interest and amortization expense		(14,380	)		(16,656	)		(65,095	)		(79,880	)
Debt satisfaction gains (charges), net		10			(368	)		(4,517	)		(2,596	)
Impairment charges		(2,974	)		(4,953	)		(5,329	)		(95,813	)
Gains on sales of properties		74,227			13,336			250,889			252,913
Income before provision for income taxes and  equity in earnings (losses) of non-consolidated entities		86,092			24,560			283,782			230,926
Provision for income taxes		(271	)		(402	)		(1,379	)		(1,728	)
Equity in earnings (losses) of non-consolidated entities		(398	)		1,516			2,890			1,708
Net income		85,423			25,674			285,293			230,906
Less net income attributable to noncontrolling interests		(192	)		(266	)		(5,383	)		(3,491	)
Net income attributable to Lexington Realty Trust shareholders		85,231			25,408			279,910			227,415
Dividends attributable to preferred shares – Series C		(1,572	)		(1,572	)		(6,290	)		(6,290	)
Allocation to participating securities		(85	)		(40	)		(395	)		(287	)
Net income attributable to common shareholders	$	83,574		$	23,796		$	273,225		$	220,838
Net income attributable to common shareholders – per common share basic	$	0.34		$	0.10		$	1.15		$	0.93
Weighted-average common shares outstanding – basic		248,943,975			233,963,608			237,642,048			236,666,375
Net income attributable to common shareholders – per common share diluted	$	0.33		$	0.10		$	1.15		$	0.93
Weighted-average common shares outstanding – diluted		252,939,590			238,292,912			237,934,515			240,810,990

10

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31,

(In thousands, except share and per share data)

	2019			2018
	(unaudited)
Assets:
Real estate, at cost	$	3,320,574		$	3,090,134
Real estate - intangible assets		409,756			419,612
Investments in real estate under construction		13,313			—
Real estate, gross		3,743,643			3,509,746
Less: accumulated depreciation and amortization		887,629			954,087
Real estate, net		2,856,014			2,555,659
Assets held for sale		—			63,868
Operating lease right-of-use assets, net		38,133			—
Cash and cash equivalents		122,666			168,750
Restricted cash		6,644			8,497
Investments in non-consolidated entities		57,168			66,183
Deferred expenses, net		18,404			15,937
Rent receivable – current		3,229			3,475
Rent receivable – deferred		66,294			58,692
Other assets		11,708			12,779
Total assets	$	3,180,260		$	2,953,840
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	390,272		$	570,420
Term loans payable, net		297,439			298,733
Senior notes payable, net		496,870			496,034
Trust preferred securities, net		127,396			127,296
Dividends payable		32,432			48,774
Liabilities held for sale		—			386
Operating lease liabilities		39,442			—
Accounts payable and other liabilities		29,925			30,790
Accrued interest payable		7,897			4,523
Deferred revenue - including below market leases, net		20,350			20,531
Prepaid rent		13,518			9,675
Total liabilities		1,455,541			1,607,162
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, 254,770,719 and 235,008,554 shares issued and outstanding in 2019 and 2018, respectively		25			24
Additional paid-in-capital		2,976,670			2,772,855
Accumulated distributions in excess of net income		(1,363,676	)		(1,537,100	)
Accumulated other comprehensive income (loss)		(1,928	)		76
Total shareholders’ equity		1,705,107			1,329,871
Noncontrolling interests		19,612			16,807
Total equity		1,724,719			1,346,678
Total liabilities and equity	$	3,180,260		$	2,953,840

11

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

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

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2019			2018		2019		2018
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders	$	83,574		$	23,796	$	273,225	$	220,838
Weighted-average common shares outstanding - basic		248,943,975			233,963,608		237,642,048		236,666,375
Net income attributable to common shareholders - per common share basic	$	0.34		$	0.10	$	1.15	$	0.93
Diluted:
Net income attributable to common shareholders - basic	$	83,574		$	23,796	$	273,225	$	220,838
Impact of assumed conversions		(34	)		21		—		2,528
Income from continuing operations attributable to common shareholders	$	83,540		$	23,817	$	273,225	$	223,366
Weighted-average common shares outstanding - basic		248,943,975			233,963,608		237,642,048		236,666,375
Effect of dilutive securities:
Unvested share-based payment awards and options		639,178			723,120		292,467		528,495
Operating Partnership Units		3,356,437			3,606,184		—		3,616,120
Weighted-average common shares outstanding - diluted		252,939,590			238,292,912		237,934,515		240,810,990
Net income attributable to common shareholders - per common share diluted	$	0.33		$	0.10	$	1.15	$	0.93

12

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

ADJUSTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders	$	83,574		$	23,796		$	273,225		$	220,838
Adjustments:
Depreciation and amortization		35,323			37,819			144,792			164,261
Impairment charges - real estate		2,974			4,953			5,329			95,813
Noncontrolling interests - OP units		(34	)		22			4,376			2,528
Amortization of leasing commissions		654			679			2,802			3,930
Joint venture and noncontrolling interest adjustment		2,249			2,567			9,449			4,063
Gains on sales of properties, including non-consolidated entities and net of tax		(74,211	)		(14,821	)		(255,048	)		(254,269	)
FFO available to common shareholders and unitholders - basic		50,529			55,015			184,925			237,164
Preferred dividends		1,572			1,572			6,290			6,290
Amount allocated to participating securities		85			40			395			287
FFO available to all equityholders and unitholders - diluted		52,186			56,627			191,610			243,741
Debt satisfaction (gains) charges, net, including non-consolidated entities		(9	)		368			4,773			2,596
Other(1)		202			(3,305	)		202			(10,038	)
Adjusted Company FFO available to all equityholders and unitholders - diluted		52,379			53,690			196,585			236,299
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
Straight-line rents		(3,656	)		(4,722	)		(14,502	)		(20,968	)
Lease incentives		293			227			1,191			1,686
Amortization of above/below market leases		(269	)		(28	)		(443	)		285
Lease termination payments, net		25			(309	)		(1,095	)		(1,234	)
Non-cash interest, net		563			854			2,709			4,209
Non-cash charges, net		1,577			1,611			6,410			6,810
Tenant improvements		(2,885	)		(1,608	)		(7,817	)		(8,271	)
Lease costs		(3,743	)		(1,448	)		(14,367	)		(4,522	)
Joint venture and non-controlling interest adjustment		(63	)		(449	)		(3,794	)		(505	)
Company Funds Available for Distribution	$	44,221		$	47,818		$	164,877		$	213,789
Per Common Share and Unit Amounts
Basic:
FFO	$	0.20		$	0.23		$	0.77		$	0.99
Diluted:
FFO	$	0.20		$	0.23		$	0.78		$	0.99
Adjusted Company FFO	$	0.20		$	0.22		$	0.80		$	0.96
Weighted-Average Common Shares
Basic:
Weighted-average common shares outstanding - basic EPS		248,943,975			233,963,608			237,642,048			236,666,375
Operating partnership units(2)		3,356,437			3,606,184			3,490,147			3,616,120
Weighted-average common shares outstanding - basic FFO		252,300,412			237,569,792			241,132,195			240,282,495
Diluted:
Weighted-average common shares outstanding - diluted EPS		252,939,590			238,292,912			237,934,515			240,810,990
Unvested share-based payment awards		36,516			—			22,813			—
Operating partnership units(1)		—			—			3,490,147			—
Preferred shares - Series C		4,710,570			4,710,570			4,710,570			4,710,570
Weighted-average common shares outstanding - diluted FFO		257,686,676			243,003,482			246,158,045			245,521,560

(1) "Other" primarily consisted of transaction related costs in 2019 and the acceleration of below-market lease intangible accretion in 2018.

(2) Includes OP units other than OP units held by Lexington.

13

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

2020 EARNINGS GUIDANCE      

	Twelve Months Ended December 31, 2020
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.95		$	0.98
Depreciation and amortization		0.62			0.62
Impact of capital transactions		(0.83	)		(0.83	)
Estimated Adjusted Company FFO per diluted common share	$	0.74		$	0.77

(1) Assumes all convertible securities are dilutive.

14

LEXINGTON REALTY TRUST

2019 Fourth Quarter Investments / Capital Recycling Summary

PROPERTY INVESTMENTS

	Property Type	Market		Square Feet		Initial Basis ($000)		Month Closed		Primary Lease Expiration
1	Industrial - Warehouse/distribution	Greenville/Spartanburg	SC		196,000	$	16,817		October		01/2024
2	Industrial - Warehouse/distribution	Greenville/Spartanburg	SC		177,320		15,583		October		04/2025
3	Industrial - Warehouse/distribution	Phoenix	AZ		186,336		21,020		October		09/2026
4	Industrial - Warehouse/distribution	Phoenix	AZ		801,424		67,079		November		09/2030
5	Industrial - Warehouse/distribution	Chicago	IL		1,034,200		49,348		December		09/2029
6	Industrial - Warehouse/distribution	Greenville/Spartanburg	SC		1,318,680		94,233		December		12/2034
6	TOTAL PROPERTY INVESTMENTS				3,713,960	$	264,080

CAPITAL RECYCLING

PROPERTY DISPOSITIONS

	Primary Tenant	Location		Property Type	Gross Disposition Price ($000)		Annualized Net Income ($000) (1)			Annualized NOI ($000)(1)(2)			Month of Disposition	% Leased		Gross Disposition Price PSF
1	Home Depot	Danville	VA	Other	$	4,650	$	205		$	276		October	100	%	$	-
2	Vacant	Watertown	NY	Other		500		(240	)		(244	)	October	0	%		4.14
3	Multi-Tenant	Indianapolis	IN	Office		8,640		1,212			1,665		November	21	%		61.26
4	Multi-Tenant	Farmers Branch	TX	Office		30,874		844			1,777		November	88	%		170.50
5	Vacant	Fairlea	WV	Other		390		(85	)		(86	)	November	0	%		4.29
6	Faurecia	Auburn Hills	MI	Office		48,363		1,695			3,361		December	100	%		173.97
7	Multi-Tenant	Houston	TX	Office		20,041		(613	)		(477	)	December	66	%		128.96
8	Cummins	Columbus	IN	Office		46,915		2,413			4,868		December	100	%		120.26
9	Mimeo	Memphis	TN	Industrial		4,050		398			459		December	77	%		28.91
10	Alstom Power	Midlothian	VA	Office		8,300		1,654			1,881		December	100	%		83.79
10	TOTAL PROPERTY DISPOSITIONS				$	172,723	$	7,483		$	13,480

Footnotes
(1)	Generally, quarterly period prior to sale annualized, excluding impairment charges.
(2)	See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

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LEXINGTON REALTY TRUST

DEVELOPMENT PROJECTS

12/31/2019

  DEVELOPMENT PROJECTS                        

							GAAP		Lexington
					Estimated		Investment Balance		Amount Funded		Estimated
	Project		Property	Estimated	Project Cost		as of 12/31/19		as of 12/31/19		Completion
	(% owned)	Market	Type	Sq. Ft.	($000)		($000) (1)		($000)		Date
	Consolidated
1	Fairburn (90%)	Atlanta, GA	Industrial	910,000	$	53,812	$	10,088	$	7,687	4Q 2020
2	Rickenbacker (100%)	Columbus, OH	Industrial	320,000		20,300		3,225		2,805	1Q 2021
2	Total Consolidated Development				$	74,112	$	13,313	$	10,492
	Non - Consolidated
1	Etna Park 70 (90%) (2)	Columbus, OH	Industrial	TBD		TBD	$	8,352	$	8,644	TBD
2	Etna Park 70 East (90%) (2)	Columbus, OH	Industrial	TBD		TBD		4,310		4,351	TBD
2	Total Non-Consolidated Development						$	12,662	$	12,995
4	Total Development Projects						$	25,975	$	23,487

Footnotes
(1)	GAAP  investment balance is in real estate under construction for consolidated projects and in investments in non-consolidated entities for non-consolidated projects.
(2)	Plans and specifications for completion have not been completed and the estimated square footage, project cost and completion date cannot be determined.

16

LEXINGTON REALTY TRUST

2019 Fourth Quarter Financing Summary

DEBT RETIRED

	Location	Tenant	Property Type	Face / Satisfaction ($000)		Rate			Maturity Date
1	Oakland, ME	T-Mobile USA	Office	$	7,939		5.930	%	10/2020
2	Lenexa, KS	Quest Diagnostics	Office		7,777		6.270	%	12/2019
3	Lavonia, GA	TI Automotive	Industrial		6,297		5.460	%	12/2020
3	Total Mortgage Debt			$	22,013

PROPERTY LEVEL FINANCING ⁽¹⁾

Location	Tenant (3)	Property Type		Face ($000)	Fixed Rate		Maturity Date
Goodyear, AZ (2)	Undisclosed	Industrial	$	41,877	4.290	%	08/2031

Footnotes
(1)	Also, a 20% owned joint venture incurred an additional $7.3 million of secured debt.
(2)	Assumed mortgage at acquisition.
(3)	Lease restricts certain disclosures.

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LEXINGTON REALTY TRUST

2019 Fourth Quarter Leasing Summary

LEASE EXTENSIONS

	Tenant (1)	Location		Prior Term	Lease Expiration Date	Sq. Ft.	New Base Rent Per Annum ($000)(2)(3)		Prior Base Rent Per Annum ($000)		New Cash Base Rent Per Annum ($000)(2)(3)		Prior Cash Base Rent Per Annum ($000)(3)
	Industrial
1	Wirtgen	Antioch	TN	12/2019	12/2021	73,500	$	184	$	216	$	184	$	216
2	Michelin	Laurens	SC	03/2020	01/2021	1,164,000		3,594		3,594		3,594		3,594
3	Mars Wrigley	Austell	GA	05/2020	05/2025	604,852		4,406		2,590		4,235		3,587
3	Total Industrial Lease Extensions					1,842,352	$	8,184	$	6,400	$	8,013	$	7,397
3	TOTAL EXTENDED LEASES					1,842,352	$	8,184	$	6,400	$	8,013	$	7,397

NEW LEASES         

	Tenant (1)	Location		Lease Expiration  Date	Sq. Ft.		New Base Rent Per Annum ($000)(2)(3)		New Cash Base Rent Per Annum ($000)(2)(3)
	Industrial
1	RC Moore (4)	Tampa	FL	02/2023		229,605	$	1,152	$	1,160
1	Total Industrial New Leases					229,605	$	1,152	$	1,160
	Office
1	Valor IT	Phoenix	AZ	07/2025		10,785	$	215	$	187
2	Quest Diagnostics (5)	Lenexa	KS	06/2030		77,484		1,013		1,103
2	Total Office New Leases					88,269	$	1,228	$	1,290
3	TOTAL NEW LEASES					317,874	$	2,380	$	2,450
6	TOTAL NEW AND EXTENDED LEASES					2,160,226	$	10,564	$	10,463

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LEXINGTON REALTY TRUST

2019 Fourth Quarter Leasing Summary

NEW VACANCY ⁽⁶⁾

			Prior Lease			2019		2019
			Expiration			Base Rent		Cash Rent
Former Tenant	Location		Date	Sq. Ft.		($000)(3)		($000)(3)
Industrial
Michelin	Moody	AL	12/2019		595,346	$	1,408	$	1,450

Footnotes
(1)	Leases greater than 10,000 square feet.
(2)	Assumes twelve months rent from the later of 1/1/20 or lease commencement/extension, excluding free rent periods as applicable.
(3)	See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(4)	Prior tenant terminated lease 12/11/19; new tenant (RC Moore) will lease building effective 1/1/20.
(5)	Previous tenant lease expired and sub-lease tenant (Quest Diagnostics) entered into a direct lease.
(6)	Excludes multi-tenant properties, disposed properties and non-consolidated investments.

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LEXINGTON REALTY TRUST

Other Revenue Data

12/31/2019

($000)

Other Revenue Data

	Base Rent
	Twelve months ended
Asset Class	12/31/19 (1)		12/31/19 Percentage			12/31/18 Percentage
Industrial	$	194,485		75.5	%		65.4	%
Office/Other		63,274		24.5	%		34.6	%
	$	257,759		100.0	%		100.0	%

	Base Rent
	Twelve months ended
Credit Ratings  (2)	12/31/19 (1)		12/31/19 Percentage			12/31/18 Percentage
Investment Grade	$	125,509		48.7	%		39.1	%
Non-Investment Grade		60,016		23.3	%		19.0	%
Unrated		72,234		28.0	%		41.9	%
	$	257,759		100.0	%		100.0	%

Weighted-Average Lease Term - Cash Basis	As of 12/31/19	As of 12/31/18
	8.4 years	8.9 years

Rent Estimates for Current Assets

Year	Base Rent  (3)		Cash Base Rent (3)		Difference
2020	$	279,385	$	265,202	$	(14,183	)
2021		259,213		250,661		(8,552	)

Footnotes

(1) Twelve months ended 12/31/2019 Base Rent recognized for consolidated properties owned as of 12/31/2019.

(2) Credit ratings are based upon either tenant, guarantor or parent/ultimate parent. Historical comparison was not adjusted for subsequent tenant entity changes and multi-tenant was generally reflected as unrated.

(3) Amounts assume (1) lease terms for non-cancellable periods only, (2) no new or renegotiated leases are entered into after 12/31/2019, and (3) no properties are sold or acquired after 12/31/2019.

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LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

12/31/2019

($000)

Same-Store NOI ⁽¹⁾

	Twelve months ended December 31,
	2019			2018
Total Cash Base Rent	$	214,081		$	216,563
Tenant Reimbursements		22,044			17,791
Property Operating Expenses		(28,226	)		(22,924	)
Same-Store NOI	$	207,899		$	211,430
Change in Same-Store NOI (2)		(1.7	)%

Same-Store Percent Leased (3)	As of 12/31/19			As of 12/31/18
		96.7	%		98.5	%

Lease Escalation Data ⁽⁴⁾

 

Footnotes

(1) NOI is on a consolidated cash basis excluding properties acquired and sold in 2019 and 2018 and properties subject to mortgage loans in default at December 31, 2019.

See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

(2) Change in Same-Store NOI was breakeven excluding single-tenant property vacancies.

(3) Excludes properties acquired or sold in 2019 and 2018 and properties subject to mortgage loans in default at December 31, 2019.

(4) Based on twelve months consolidated Cash Base Rents for single-tenant leases (properties greater than 50% leased to a single tenant) owned as of December 31, 2019. Excludes parking operations and rents from prior tenants.

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LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

12/31/2019

($000, except square footage)

Asset Class	YE 2017 (1)			YE 2018 (1)(2)			YE 2019
Industrial
% of Cost (3)		49.3	%		71.2	%		81.5	%
% of ABR (4)		44.3	%		65.4	%		75.5	%
% Leased		99.9	%		96.3	%		97.9	%
Wtd. Avg. Lease Term (5)		10.5			9.7			8.3
Mortgage Debt	$	193,529		$	206,006		$	109,939
% Investment Grade (4)		28.4	%		31.6	%		45.9	%
Square Feet		36,071,422			41,447,962			48,742,014
Office/Other
% of Cost (3)		50.7	%		28.8	%		18.5	%
% of ABR (4)(6)		55.7	%		34.6	%		24.5	%
% Leased		96.0	%		87.1	%		85.8	%
Wtd. Avg. Lease Term (5)		7.9			7.2			8.5
Mortgage Debt	$	503,539		$	369,508		$	283,933
% Investment Grade (4)		49.4	%		53.2	%		57.3	%
Square Feet		12,542,640			6,111,588			3,876,294
Construction in progress (7)	$	4,219		$	1,840		$	15,208

Footnotes

(1) Office and Other properties combined.

(2) Pataskala, Ohio property reclassed to Industrial from Office/Other.

(3) Based on gross book value of real estate assets; excludes held for sale assets.

(4) Percentage of Base Rent, for consolidated properties owned as of each respective period.

(5) Cash basis.

(6) YE 2018 excludes the acceleration of below-market lease intangible accretion on one Kmart asset.

(7) Includes development classified as real estate under construction on a consolidated basis.

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LEXINGTON REALTY TRUST

Portfolio Composition

12/31/2019

As a Percent of Gross Book Value ⁽¹⁾ 

 

Portfolio Composition ⁽²⁾

Footnotes

(1) Based on gross book value of real estate assets as of 12/31/2019.

(2) Based on gross book value of real estate assets as of 12/31/2019, 12/31/2018 and 12/31/2017, as applicable and excludes held for sale assets.

23

LEXINGTON REALTY TRUST

Components of Net Asset Value

12/31/2019

($000)

The purpose of providing the following information is to enable readers to derive their own estimates of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation.

Consolidated properties twelve month net operating income (NOI) (1)
Industrial	$	167,797
Office/Other		57,891
Total Net Operating Income	$	225,688
Lexington's share of non-consolidated twelve month NOI (1)
NNN OFFICE JV
Office	$	10,312
OTHER JV
Other	$	1,490
Other income
Advisory fees	$	3,918
In service assets not fairly valued by capitalized NOI method (1)
Wholly-owned assets acquired in 2019	$	690,720
Wholly-owned assets less than 70% leased	$	42,391
Add other assets:
Construction in progress	$	1,895
Developable land		12,995
Development investment at cost incurred		10,492
Cash and cash equivalents		122,666
Restricted cash		6,644
Accounts receivable		3,229
Other assets		11,708
Total other assets	$	169,629
Liabilities:
Corporate level debt (face amount)	$	929,120
Mortgages and notes payable (face amount)		393,872
Dividends payable		32,432
Accounts payable, accrued expenses and other liabilities		51,340
Preferred stock, at liquidation value		96,770
Lexington's share of non-consolidated mortgages (face amount)		89,418
Total deductions	$	1,592,952
Common shares & OP units at 12/31/2019		257,956,216

Footnotes

(1) NOI for the existing property portfolio at December 31, 2019, excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70% and assets acquired in 2019. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, Lexington's net book value has been used. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

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LEXINGTON REALTY TRUST

Consolidated Portfolio Concentration

12/31/2019

	Markets (1)	Percent of Base Rent as of 12/31/19  (2)
1	Houston, TX		11.4	%
2	Memphis, TN		7.1	%
3	New York, NY		4.3	%
4	Atlanta, GA		4.1	%
5	Detroit, MI		4.0	%
6	Nashville, TN		3.8	%
7	Dallas, TX		3.5	%
8	Philadelphia, PA		2.9	%
9	San Jose, CA		2.6	%
10	Jackson, MS		2.4	%
11	St. Louis, MO		2.4	%
12	Phoenix, AZ		2.2	%
13	Cincinnati, OH		2.1	%
14	Columbus, OH		1.9	%
15	Kansas City, MO		1.7	%
16	Champaign, IL		1.6	%
17	Charlotte, NC		1.6	%
18	Spartanburg, SC		1.6	%
19	Jackson, TN		1.5	%
20	Richmond, VA		1.5	%
	Total Consolidated Portfolio Concentration (3)		64.1	%

Footnotes
(1)	Markets are based on a Core Based Statistical Area, which is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000.  These standards are used to replace the definitions of metropolitan areas that were defined in 1990.
(2)	Twelve months ended 12/31/2019 Base Rent recognized for consolidated properties owned as of 12/31/2019.
(3)	Total shown may differ from detailed amounts due to rounding.

25

LEXINGTON REALTY TRUST

Portfolio Concentration - Industrial

12/31/2019

	Markets (1)	Percent of Base Rent as of 12/31/19  (2)
1	Memphis, TN		9.5	%
2	Houston, TX		7.4	%
3	Detroit, MI		5.3	%
4	Atlanta, GA		5.1	%
5	Nashville, TN		5.0	%
6	Jackson, MS		3.2	%
7	St. Louis, MO		3.2	%
8	Cincinnati, OH		2.7	%
9	New York, NY		2.6	%
10	Dallas, TX		2.6	%
11	Columbus, OH		2.5	%
12	Champaign, IL		2.2	%
13	Spartanburg, SC		2.1	%
14	Jackson, TN		2.0	%
15	Richmond, VA		2.0	%
16	Winchester, VA		2.0	%
17	Greenville, SC		1.9	%
18	Chicago, IL		1.9	%
19	Indianapolis, IN		1.8	%
20	Shreveport, LA		1.8	%
	Total Industrial Portfolio Concentration (3)		66.7	%

Footnotes
(1)	Markets are based on a Core Based Statistical Area, which is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000.  These standards are used to replace the definitions of metropolitan areas that were defined in 1990.
(2)	Twelve months ended 12/31/2019 Base Rent recognized for consolidated industrial properties owned as of 12/31/2019.
(3)	Total shown may differ from detailed amounts due to rounding.

26

LEXINGTON REALTY TRUST

Portfolio Concentration - Office/Other

12/31/2019

	Markets (1)	Percent of Base Rent as of 12/31/19  (2)
1	Houston, TX		23.6	%
2	San Jose, CA		10.5	%
3	Philadelphia, PA		10.1	%
4	New York, NY		9.3	%
5	Charlotte, NC		6.5	%
6	Dallas, TX		6.3	%
7	Washington, DC		4.9	%
8	Kansas City, MO		4.8	%
9	Phoenix, AZ		3.9	%
10	Miami, FL		3.5	%
11	Sarasota, FL		3.0	%
12	Baton Rouge, LA		1.8	%
13	McAllen, TX		1.6	%
14	Augusta, ME		1.5	%
15	Orlando, FL		1.4	%
16	Knoxville, TN		1.4	%
17	Atlanta, GA		1.3	%
18	Baltimore, MD		1.0	%
19	Florence, SC		0.9	%
20	Tucson, AZ		0.9	%
	Total Office/Other Portfolio Concentration (3)		98.3	%

Footnotes
(1)	Markets are based on a Core Based Statistical Area, which is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000.  These standards are used to replace the definitions of metropolitan areas that were defined in 1990.
(2)	Twelve months ended 12/31/2019 Base Rent recognized for consolidated office/other properties owned as of 12/31/2019.
(3)	Total shown may differ from detailed amounts due to rounding.

27

LEXINGTON REALTY TRUST

Tenant Industry Diversification - Industrial Assets ⁽¹⁾

12/31/2019

 

Footnotes

(1) Twelve months ended 12/31/2019 Base Rent recognized for consolidated properties owned as of 12/31/2019.

28

LEXINGTON REALTY TRUST

Tenant Industry Diversification - Office/Other Assets ⁽¹⁾

12/31/2019

 

Footnotes

(1) Twelve months ended 12/31/2019 Base Rent recognized for consolidated properties owned as of 12/31/2019.

29

LEXINGTON REALTY TRUST

Top 15 Tenants

12/31/2019

Top 15 Tenants  

Tenants (1)	Property Type	Lease Expirations	Number of Leases	Sq. Ft. Leased		Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3)			Base Rent as of 12/31/2019 ($000)		Percent of Base Rent as of 12/31/2019 ($000) (2)(4)
Dow	Office	2036	1		664,100		1.3	%	$	14,850		5.9	%
Nissan	Industrial	2027	2		2,971,000		5.8	%		12,760		5.0	%
Dana	Industrial	2021-2026	7		2,053,359		4.0	%		9,941		3.9	%
Undisclosed (5)	Industrial	2031-2035	3		1,090,383		2.1	%		7,139		2.8	%
Watco	Industrial	2038	1		132,449		0.3	%		6,773		2.7	%
Xerox	Office	2023	1		202,000		0.4	%		6,642		2.6	%
Morgan Lewis (6)	Office	2024	1		289,432		0.6	%		5,655		2.2	%
Amazon	Industrial	2026-2030	3		2,515,492		4.9	%		5,637		2.2	%
Undisclosed (5)	Industrial	2023-2027	3		2,132,290		4.2	%		5,527		2.2	%
FedEx	Industrial	2023 & 2028	2		292,021		0.6	%		5,479		2.2	%
Hamilton Beach	Industrial	2021 & 2026	2		1,645,436		3.2	%		4,948		2.0	%
Asics	Industrial	2030	1		855,878		1.7	%		4,388		1.7	%
Spitzer	Industrial	2035	2		449,895		0.9	%		4,344		1.7	%
Vista Outdoor	Industrial	2034	1		813,126		1.6	%		4,195		1.7	%
Wells Fargo	Office	2024	2		338,301		0.7	%		4,101		1.6	%
			32		16,445,162		32.2	%	$	102,379		40.5	%

Footnotes
(1)	Tenant, guarantor or parent.
(2)	Total shown may differ from detailed amounts due to rounding.
(3)	Excludes vacant square feet.
(4)	Twelve months ended 12/31/2019 Base Rent recognized for consolidated properties owned as of 12/31/2019, excluding rent from prior tenants.
(5)	Lease restricts certain disclosures.
(6)	Includes parking operations.

30

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Industrial Properties

12/31/2019

($000)

Year	Number of Leases Expiring		Base Rent as of 12/31/2019		Percent of Base Rent as of 12/31/2019			Percent of Base Rent as of 12/31/2018
2020		4	$	5,363		2.8	%		6.2	%
2021		13		18,136		9.4	%		6.3	%
2022		2		1,907		1.0	%		0.7	%
2023		8		7,468		3.9	%		1.1	%
2024		16		19,168		9.9	%		7.0	%
2025		13		15,476		8.0	%		6.7	%
2026		11		18,392		9.5	%		7.2	%
2027		9		25,835		13.4	%		13.4	%
2028		4		11,855		6.2	%		6.4	%
2029		3		4,507		2.3	%		2.0	%
Thereafter		25		64,634		33.5	%		39.6	%
Total (1)		108	$	192,741		100.0	%

 

Footnotes

(1) Total shown may differ from detailed amounts due to rounding.

31

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Office/Other Properties

12/31/2019

($000)

Year	Number of Leases Expiring		Base Rent as of 12/31/2019		Percent of Base Rent as of 12/31/2019			Percent of Base Rent as of 12/31/2018
2020		30	$	2,643		4.3	%		4.8	%
2021		9		7,451		12.1	%		16.6	%
2022		3		4,837		7.9	%		5.3	%
2023		3		7,201		11.7	%		8.4	%
2024		5		9,180		14.9	%		13.0	%
2025		5		3,320		5.4	%		3.7	%
2026		0		-		0.0	%		1.2	%
2027		3		1,956		3.2	%		6.4	%
2028		0		-		0.0	%		1.3	%
2029		1		881		1.4	%		6.8	%
Thereafter		8		24,053		39.1	%		21.0	%
Total (1)		67	$	61,522		100.0	%

 

Footnotes

(1) Total shown may differ from detailed amounts due to rounding and does not include parking operations.

32

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
Single-tenant
2020	6/30/2020	1650-1654 Williams Rd.	Columbus	OH	--	ODW Logistics		772,450		1,347		1,347		-		-
	12/19/2020	1901 Ragu Dr.	Owensboro	KY	5	Unilever		443,380		1,493		1,288		-		-
	12/31/2020	2203 Sherrill Dr.	Statesville	NC	--	Geodis America		639,800		2,493		2,537		-		-
2021	1/31/2021	101 Michelin Dr.	Laurens	SC	--	Michelin		1,164,000		3,745		3,745		-		-
	3/31/2021	2455 Premier Row	Orlando	FL	--	Walgreen Co.		205,016		786		508		-		-
	5/31/2021	291 Park Center Dr.	Winchester	VA	--	Kraft Heinz		344,700		1,422		1,451		-		-
	6/30/2021	11624 S. Distribution Cv.	Olive Branch	MS	--	Hamilton Beach		1,170,218		3,789		3,189		-		-
	9/30/2021	3820 Micro Dr.	Millington	TN	--	Ingram Micro		701,819		1,812		1,874		-		-
	10/25/2021	6938 Elm Valley Dr.	Kalamazoo	MI	--	Dana		150,945		1,747		2,027		-		-
	11/30/2021	2880 Kenny Biggs Rd.	Lumberton	NC	--	Quickie Manufacturing		423,280		1,356		1,459		-		-
	12/31/2021	191 Arrowhead Dr.	Hebron	OH	--	Owens Corning		250,410		573		573		-		-
		200 Arrowhead Dr.	Hebron	OH	--	Owens Corning		400,522		916		916		-		-
		3686 South Central Ave.	Rockford	IL	--	Pierce Packaging		93,000		321		321		-		-
2022	3/31/2022	5417 Campus Dr.	Shreveport	LA	--	Tire Rack		257,849		1,343		1,403		-		-
	8/31/2022	50 Tyger River Dr.	Duncan	SC	--	Plastic Omnium		221,833		564		336		-		-
2023	2/28/2023	3102 Queen Palm Dr.	Tampa	FL	8	RC Moore		229,605		1,081		1,303		-		-
		7670 Hacks Cross Rd.	Olive Branch	MS	--	MAHLE Industries		268,104		906		902		-		-
	5/31/2023	6495 Polk Ln.	Olive Branch	MS	13	Undisclosed		151,691		344		330		-		-
	8/31/2023	10535 Red Bluff Rd.	Pasadena	TX	--	Unis		257,835		1,231		1,199		-		-
		3737 Duncanville Rd.	Dallas	TX	--	Owens Corning		510,440		1,175		1,134		-		-
	10/31/2023	493 Westridge Pkwy.	McDonough	GA	--	Carlstar		676,000		1,777		1,694		-		-
	12/31/2023	120 Southeast Pkwy. Dr.	Franklin	TN	--	United Technologies		289,330		735		735		-		-
		675 Gateway Blvd.	Monroe	OH	--	Blue Buffalo		143,664		219		209		-		-
2024	1/31/2024	1285 W. State Road 32	Lebanon	IN	--	Continental Tire		741,880		2,286		2,383		-		-
		6495 Polk Ln.	Olive Branch	MS	13	Undisclosed		118,211		291		276		-		-
		70 Tyger River Dr.	Duncan	SC	--	BMW		408,000		1,367		1,310		-		-

33

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2024	1/31/2024	231 Apple Valley Road	Duncan	SC	13	Undisclosed		120,680		141		133		-		-
	3/31/2024	1520 Lauderdale Memorial Hwy.	Cleveland	TN	--	General Electric		851,370		2,658		2,648		-		-
	4/30/2024	113 Wells St.	North Berwick	ME	--	United Technologies		993,685		1,798		1,739		-		-
		11555 Silo Dr.	Olive Branch	MS	--	Olam Cotton		927,742		1,681		1,258		-		-
	5/31/2024	901 East Bingen Point Way	Bingen	WA	--	Boeing		124,539		2,636		2,637		-		-
		7225 Goodson Rd.	Union City	GA	--	Interface Americas		370,000		745		698		-		-
	7/31/2024	5795 North Blackstock Road	Spartanburg	SC	--	Wal-Mart		341,660		1,672		1,623		-		-
		231 Apple Valley Road	Duncan	SC	13	Undisclosed		75,320		88		88		-		-
	9/30/2024	1621 Veterans Memorial Pkwy. E	Lafayette	IN	--	Caterpillar		309,400		1,215		1,204		-		-
	10/31/2024	43955 Plymouth Oaks Blvd.	Plymouth	MI	--	Tower Automotive		311,612		1,591		1,542		-		-
		2115 East Belt Line Rd.	Carrollton	TX	--	L.E. Klein		58,202		229		153		-		-
	12/31/2024	749 Southrock Dr.	Rockford	IL	--	Jacobson Warehouse		150,000		638		600		-		-
2025	4/30/2025	235 Apple Valley Road	Duncan	SC	13	Undisclosed		177,320		219		205		-		-
	5/31/2025	7875 White Road SW	Austell	GA	--	Mars Wrigley		604,852		1,407		1,853		-		-
	6/30/2025	10000 Business Blvd.	Dry Ridge	KY	--	Dana		336,350		1,346		1,346		-		-
		4010 Airpark Dr.	Owensboro	KY	--	Metalsa / Dana		211,598		1,208		1,208		-		-
		730 North Black Branch Rd.	Elizabethtown	KY	--	Metalsa / Dana		167,770		537		537		-		-
		750 North Black Branch Rd.	Elizabethtown	KY	--	Metalsa / Dana		539,592		2,838		2,838		-		-
		301 Bill Bryan Blvd.	Hopkinsville	KY	--	Metalsa / Dana		424,904		1,687		1,687		-		-
	7/14/2025	590 Ecology Ln.	Chester	SC	--	Boral Limited		420,597		1,798		2,391		5,763		08/2025
	7/31/2025	7005 Cochran Rd.	Glenwillow	OH	--	Royal Appliance		458,000		2,061		2,101		-		-
		5352 Performance Way	Whitestown	IN	--	LaCrosse		380,000		1,250		1,091		-		-
	12/31/2025	1700 47th Ave North	Minneapolis	MN	--	Owens Corning		18,620		550		550		-		-
2026	3/30/2026	121 Technology Dr.	Durham	NH	12	Heidelberg		500,500		2,537		2,479		-		-
	3/31/2026	633 Garrett Pkwy.	Lewisburg	TN	--	Calsonic Kansei		310,000		1,288		1,286		-		-
	4/30/2026	16811 W. Commerce Dr.	Goodyear	AZ	--	Blue Buffalo		540,349		2,444		1,161		-		-
	6/30/2026	351 Chamber Dr.	Chillicothe	OH	16	Kitchen Collection		475,218		1,159		1,164		-		-

34

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2026	9/30/2026	900 Industrial Blvd.	Crossville	TN	--	Dana		222,200		578		578		-		-
		3931 Lakeview Corporate Dr.	Edwardsville	IL	--	Amazon.com		769,500		2,696		2,588		-		-
		9494 W. Buckeye Rd.	Tolleson	AZ	--	CHEP		186,336		236		218		-		-
	10/31/2026	10345 Philipp Pkwy.	Streetsboro	OH	--	L'Oreal USA		649,250		2,725		2,788		-		-
		5001 Greenwood Rd.	Shreveport	LA	--	Libbey		646,000		2,165		2,229		-		-
	11/30/2026	250 Rittenhouse Cir.	Bristol	PA	--	Estée Lauder		241,977		1,146		1,182		-		-
		736 Addison Rd.	Erwin	NY	--	Corning		408,000		1,418		1,425		-		-
2027	1/31/2027	27200 West 157th St.	New Century	KS	--	Amazon.com		446,500		1,240		1,090		-		-
	2/28/2027	554 Nissan Pkwy.	Canton	MS	--	Nissan		1,466,000		6,200		6,037		-		-
	4/30/2027	16407 Applewhite Rd.	San Antonio	TX	13	Undisclosed		849,275		2,994		2,822		-		-
		200 Sam Griffin Rd.	Smyrna	TN	--	Nissan		1,505,000		6,560		6,325		-		-
	6/30/2027	1501 Nolan Ryan Expy.	Arlington	TX	--	Arrow Electronics		74,739		406		405		-		-
	8/31/2027	600 Gateway Blvd.	Monroe	OH	--	Hayneedle		994,013		1,227		1,004		-		-
	9/30/2027	1550 Hwy 302	Byhalia	MS	--	McCormick		615,600		2,451		2,416		-		-
	10/31/2027	201 James Lawrence Rd.	Jackson	TN	--	Kellogg		1,062,055		3,944		3,753		-		-
	12/31/2027	10590 Hamilton Ave.	Cincinnati	OH	--	Hillman Group		264,598		813		813		-		-
2028	1/31/2028	490 Westridge Pkwy.	McDonough	GA	--	Georgia-Pacific		1,121,120		3,737		3,458		-		-
	3/31/2028	29-01-Borden Ave./29-10 Hunters Point Ave.	Long Island City	NY	--	FedEx		140,330		5,135		5,128		36,449		03/2028
	8/31/2028	1420 Greenwood Rd.	McDonough	GA	--	United States Cold Storage		296,972		2,170		2,160		-		-
	9/30/2028	904 Industrial Rd.	Marshall	MI	--	Tenneco		246,508		813		743		-		-
2029	7/31/2029	8500 Nail Rd.	Olive Branch	MS	--	Sephora		716,080		2,751		2,603		-		-
	9/30/2029	6255 East Minooka Road	Minooka	IL	--	Kellogg		1,034,200		16		14		-		-
	11/24/2029	318 Pappy Dunn Blvd.	Anniston	AL	--	IAC Group		276,782		1,740		1,671		-		-
2030	3/31/2030	549 Wingo Rd.	Byhalia	MS	--	Asics		855,878		4,388		4,174		-		-
	5/31/2030	359 Gateway Dr.	Lavonia	GA	--	TI Automotive		133,221		799		997		-		-
		4015 Lakeview Corporate Dr.	Edwardsville	IL	--	Spectrum		1,017,780		3,460		2,739		-		-
	6/30/2030	2601 Bermuda Hundred Rd.	Chester	VA	14	Philip Morris		1,034,470		3,851		3,807		-		-

35

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2030	6/30/2030	700 Gateway  Blvd.	Monroe	OH	--	Amazon.com		1,299,492		1,701		1,535		-		-
	9/30/2030	255 143rd Ave.	Goodyear	AZ	13	Undisclosed		801,424		389		351		41,877		08/2031
2031	10/31/2031	1020 W. Airport Rd.	Romeoville	IL	--	ARYZTA		188,166		3,640		3,463		-		-
	12/18/2031	80 Tyson Dr.	Winchester	VA	13	Undisclosed		400,400		2,368		2,109		-		-
2032	4/30/2032	13930 Pike Rd.	Missouri City	TX	--	Vulcan		-		2,123		1,995		-		-
	8/24/2032	16950 Pine Dr.	Romulus	MI	13	Undisclosed		500,023		2,567		2,424		-		-
	10/31/2032	27255 SW 95th Ave.	Wilsonville	OR	--	Pacific Natural Foods		508,277		3,120		2,687		-		-
		26700 Bunert Rd.	Warren	MI	--	Lipari		260,243		3,883		3,499		25,850		11/2032
2033	12/31/2033	2115 East Belt Line Rd.	Carrollton	TX	--	Teasdale		298,653		1,297		1,021		-		-
2034	9/30/2034	5625 North Sloan Ln.	North Las Vegas	NV	--	Nicholas		180,235		2,557		2,328		-		-
	10/31/2034	1001 Innovation Rd.	Rantoul	IL	--	Vista Outdoor		813,126		4,195		3,774		-		-
	12/31/2034	27 Inland Pkwy.	Greer	SC	13	Undisclosed		1,318,680		15		-		-		-
2035	3/31/2035	13863 Industrial Rd.	Houston	TX	--	Spitzer		187,800		2,434		2,159		-		-
		7007 F.M. 362 Rd.	Brookshire	TX	--	Spitzer		262,095		1,910		1,694		-		-
	6/30/2035	111 West Oakview Pkwy.	Oak Creek	WI	--	Stella & Chewy's		164,007		2,098		1,907		-		-
	10/22/2035	2860 Clark Street	Detroit	MI	13	Undisclosed		189,960		2,204		2,204		-		-
2036	5/31/2036	671 Washburn Switch Rd.	Shelby	NC	--	Clearwater Paper		673,425		2,786		2,487		-		-
2037	3/31/2037	4005 E I-30	Grand Prairie	TX	--	O'Neal  Industries		215,000		1,872		1,592		-		-
2038	3/31/2038	13901/14035 Industrial Rd.	Houston	TX	--	Watco		132,449		6,773		5,925		-		-
2042	5/31/2042	4801 North Park Dr.	Opelika	AL	--	Golden State Enterprises		165,493		3,244		2,590		-		-
2067	12/31/2067	10201 Schuster Way	Pataskala	OH	--	Kohl's		-		960		434		-		-
SINGLE TENANT INDUSTRIAL TOTAL								47,067,194	$	190,335	$	180,014	$	109,939

36

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
Multi-tenant / Vacancy (7)(11)
	Various	6050 Dana Way	Antioch	TN	3 (97%)	Multi-Tenant		674,528		2,406		2,342		-		-
	Vacancy	2415 US Hwy. 78 East	Moody	AL	8	(Available for Lease)		595,346		1,408		1,450		-		-
	Vacancy	1133 Poplar Creek Rd.	Henderson	NC	--	(Available for Lease)		196,946		-		-		-		-
	Vacancy	3301 Stagecoach Rd. NE	Thomson	GA	8	(Available for Lease)		208,000		336		616		-		-
MULTI-TENANT/VACANCY INDUSTRIAL TOTAL								1,674,820	$	4,150	$	4,408	$	-
INDUSTRIAL TOTAL/WEIGHTED AVERAGE						97.9% Leased		48,742,014	$	194,485	$	184,422	$	109,939

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LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease  Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq.Ft. Leased or Available (1)		Base Rent as of 12/31/2019  ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
Single-tenant
2020	2/14/2020	5600 Broken Sound Blvd.	Boca Raton	FL	--	Oce - USA Holding		143,290		2,244		2,500		18,465	02/2020
2021	3/31/2021	1701 Market St.	Philadelphia	PA	--	Prime Communications		1,220		62		62		-	-
	6/30/2021	1415 Wyckoff Rd.	Wall	NJ	15	NJ Natural Gas		157,511		3,774		3,774		5,576	01/2021
		2050 Roanoke Rd.	Westlake	TX	--	Charles Schwab		130,199		2,068		2,200		-	-
	8/31/2021	3500 North Loop Rd.	McDonough	GA	--	Global Payments		62,218		848		848		-	-
	10/31/2021	1401 Nolan Ryan Expy.	Arlington	TX	--	Butler America Aerospace		4,979		85		85		-	-
2022	5/30/2022	13651 McLearen Rd.	Herndon	VA	--	United States of America		159,644		3,128		3,220		-	-
	7/31/2022	1440 E 15th St.	Tucson	AZ	--	CoxCom		28,591		544		544		-	-
	10/31/2022	4455 American Way	Baton Rouge	LA	17	New Cingular Wireless		70,100		1,165		1,148		-	-
2023	9/30/2023	1701 Market St.	Philadelphia	PA	--	CBC Restaurant		8,070		243		243		-	-
	12/14/2023	3333 Coyote Hill Rd.	Palo Alto	CA	--	Xerox		202,000		6,642		7,070		26,301	12/2023
2024	1/31/2024	1701 Market St.	Philadelphia	PA	--	Morgan Lewis		289,432		4,226		4,576		-	-
	2/14/2024	1362 Celebration Blvd.	Florence	SC	--	Change Healthcare		32,000		573		588		-	-
	5/31/2024	3476 Stateview Blvd.	Fort Mill	SC	--	Wells Fargo		169,083		2,014		1,953		-	-
		3480 Stateview Blvd.	Fort Mill	SC	--	Wells Fargo		169,218		2,087		1,954		-	-
2025	1/31/2025	1401 Nolan Ryan Expy.	Arlington	TX	--	Triumph Group		111,409		1,617		1,777		-	-
	2/28/2025	1401 Nolan Ryan Expy.	Arlington	TX	--	Infotech Enterprise		13,590		210		216		-	-
	5/31/2025	1701 Market St.	Philadelphia	PA	--	TruMark Financial		2,641		259		259		-	-
	6/30/2025	3711 San Gabriel	Mission	TX	--	T-Mobile West		75,016		999		1,022		-	-
2027	1/31/2027	1701 Market St.	Philadelphia	PA	--	Drybar		1,975		145		110		-	-
	5/31/2027	2401 Cherahala Blvd.	Knoxville	TN	--	CaremarkPCS		59,748		866		800		-	-
	8/31/2027	133 First Park Dr.	Oakland	ME	--	T-Mobile USA		78,610		945		1,542		-	-
2029	9/30/2029	9200 South Park Center Loop	Orlando	FL	--	CardWorks		59,927		881		255		-	-
2030	6/30/2030	9601 Renner Blvd.	Lenexa	KS	8	Quest Diagnostics		77,484		1,121		1,289		-	-
2031	4/30/2031	9201 Stateline Rd.	Kansas City	MO	8	Burns & McDonnell Engineering		155,925		1,947		1,841		-	-
	11/30/2031	4 Apollo Drive	Whippany	NJ	--	CAE		123,734		2,140		1,953		11,572	11/2021

38

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease  Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq.Ft. Leased or Available (1)		Base Rent as of 12/31/2019  ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
Single-tenant
2033	12/31/2033	8555 South River Pkwy.	Tempe	AZ	--	Versum		95,133		1,479		1,300		-	-
2036	10/31/2036	270 Abner Jackson Pkwy.	Lake Jackson	TX	--	Dow		664,100		14,850		12,662		183,077	10/2036
N/A	N/A	1701 Market St.	Philadelphia	PA	--	Parking Operations		-		1,429		1,429		-	-
	Vacancy	1701 Market St.	Philadelphia	PA	--	(Available for Lease)		699		-		-		-	-
		1401 Nolan Ryan Expy.	Arlington	TX	--	(Available for Lease)		31,830		-		-		-	-
SINGLE TENANT OFFICE TOTAL								3,179,376	$	58,591	$	57,220	$	244,991
Multi-tenant / Vacancy (7)(11)
	Vacancy	5200 Metcalf Ave.	Overland Park	KS	--	(Available for Lease)		320,198		-		-		32,112	N/A
	Vacancy	820 Gears Rd.	Houston	TX	8	(Available for Lease)		78,895		99		99		-	-
	Various	13430 North Black Canyon Fwy.	Phoenix	AZ	3 (73%)	Multi-Tenant		138,940		1,017		1,162		-	-
	Various	1460 Tobias Gadson Blvd.	Charleston	SC	3,8 (23%)	Multi-Tenant		50,246		516		506		6,830	02/2021
MULTI-TENANT/VACANCY OFFICE TOTAL								588,279	$	1,632	$	1,767	$	38,942
OFFICE SUBTOTAL/WEIGHTED AVERAGE						86.5% Leased		3,767,655	$	60,223	$	58,987	$	283,933

39

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq.Ft. Leased or Available (1)		Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt Balance ($000)		Debt Maturity
OTHER PROPERTIES
Single-tenant
Specialty
2048	12/31/2048	30 Light St.	Baltimore	MD	--	30 Charm City		-		299		299	$	-	-
2055	1/31/2055	499 Derbyshire Dr.	Venice	FL	--	Littlestone Brotherhood		31,180		1,908		1,366		-	-
2112	8/31/2112	201-215 N. Charles St.	Baltimore	MD	--	HCRE 201NCharles		-		309		309		-	-
SINGLE TENANT OTHER TOTAL								31,180	$	2,516	$	1,974	$	-
Multi-tenant / Vacancy (7)(11)
	Various	King St./1042 Fort St. Mall	Honolulu	HI	3 (43%)	Multi-Tenant		77,459		535		535		-	-
MULTI-TENANT/VACANCY OTHER TOTAL								77,459	$	535	$	535	$	-
OTHER SUBTOTAL/WEIGHTED AVERAGE						59.4% Leased		108,639	$	3,051	$	2,509	$	-
TOTAL OFFICE & OTHER/WEIGHTED AVERAGE						85.8% Leased		3,876,294	$	63,274	$	61,496	$	283,933
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE						97.0% Leased		52,618,308	$	257,759	$	245,918	$	393,872

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LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq.Ft. Leased or Available (1)		LXP % Ownership			Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt  Balance  ($000)		Debt Maturity (10)
NON-CONSOLIDATED PROPERTIES
NNN OFFICE JV PROPERTIES
2022	12/31/2022	231 N. Martingale Rd.	Schaumburg	IL	6	Career Education Corporation		317,198		20	%		4,598		4,666		277,580		09/2021
2023	3/31/2023	8900 Freeport Pkwy.	Irving	TX	6	Nissan		268,445		20	%		4,906		4,543		-		-
2025	2/28/2025	6555 Sierra Dr.	Irving	TX	6, 9	TXU		247,254		20	%		3,803		3,201		-		-
	3/14/2025	601 & 701 Experian Pkwy.	Allen	TX	6	Experian Holdings		292,700		20	%		3,240		3,073		-		-
	6/30/2025	2500 Patrick Henry Pkwy.	McDonough	GA	6	Georgia Power		111,911		20	%		1,628		1,413		-		-
	12/31/2025	4001 International Pkwy.	Carrollton	TX	6	Motel 6		138,443		20	%		2,534		2,327		-		-
2026	3/31/2026	500 Olde Worthington Rd.	Westerville	OH	6	Syneos		97,000		20	%		1,344		1,193		-		-
	4/30/2026	800 East Canal St.	Richmond	VA	4	Richmond Belly Ventures		2,568		20	%		81		81		-		-
	11/30/2026	500 Kinetic Dr.	Huntington	WV	6	Amazon.com		68,693		20	%		1,237		1,159		-		-
2027	2/28/2027	800 East Canal St.	Richmond	VA	4	Sumitomo		8,503		20	%		203		146		-		-
	6/30/2027	3902 Gene Field Rd.	St. Joseph	MO	6	Boehringer Ingelheim USA		98,849		20	%		2,116		1,961		-		-
	7/6/2027	2221 Schrock Rd.	Columbus	OH	6	MS Consultants		42,290		20	%		684		636		-		-
	8/7/2027	25 Lakeview Dr.	Jessup	PA	6	TMG Health		150,000		20	%		2,330		2,167		-		-
2029	1/31/2029	6226 West Sahara Ave.	Las Vegas	NV	6	Nevada Power		282,000		20	%		3,474		3,089		-		-
2030	8/31/2030	800 East Canal St.	Richmond	VA	--	McGuireWoods		224,537		20	%		6,995		7,034		57,500		02/2031
	9/30/2030	800 East Canal St.	Richmond	VA	4	The Riverstone Group		25,707		20	%		770		658		-		-
2031	1/10/2031	810 Gears Rd.	Houston	TX	6	United States of America		68,985		20	%		1,201		1,425		-		-
	3/1/2031	800 East Canal St.	Richmond	VA	4	Towne Bank		26,047		20	%		844		711		-		-
2032	4/30/2032	1210 AvidXchange Ln.	Charlotte	NC	--	AvidXchange		201,450		20	%		6,025		5,335		46,900		12/2022; 01/2033
	9/30/2032	10001 Richmond Ave.	Houston	TX	6	Schlumberger		554,385		20	%		6,195		5,798		-		-
2035	4/30/2035	143 Diamond Ave.	Parachute	CO	6	Alenco		49,024		20	%		1,107		1,178		-		-
2088	8/8/2088	800 East Canal St.	Richmond	VA	4	The City of Richmond, Virginia		-		20	%		356		419		-		-
N/A	Vacancy	810 Gears Rd.	Houston	TX	6	(Available for Lease)		9,910		20	%		-		-		-		-
		800 East Canal St.	Richmond	VA	4	(Available for Lease)		42,947		20	%		-		-		-		-
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE						98.4% Leased		3,328,846				$	55,671	$	52,213	$	381,980

41

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2019

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq.Ft. Leased or Available (1)		LXP % Ownership			Base Rent as of 12/31/2019 ($000) (2)		Cash Base Rent as of 12/31/2019 ($000) (2)		12/31/2019 Debt  Balance  ($000)		Debt Maturity (10)
OTHER NON-CONSOLIDATED PROPERTIES
2036	8/31/2036	2203 North Westgreen Blvd.	Katy	TX	--	British Schools		274,000		25	%		6,613		6,613		52,089		12/2022
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE						100% Leased		274,000				$	6,613	$	6,613	$	52,089
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE						98.5% Leased		3,602,846				$	62,284	$	58,826	$	434,069

Footnotes

1 Square footage leased or available.

2 Twelve months ended 12/31/2019 Base Rent and Cash Base Rent. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

3 Percent represents % leased as of 12/31/2019.

4 Part of Richmond, Virginia property, which is primarily leased to McGuireWoods LLP.

5 Lexington has a 71.1% interest in this property.

6 All debt is cross-collateralized and cross-defaulted.

7 Multi-tenant properties are properties less than 50% leased to a single tenant.

8 Base Rent and Cash Base Rent amounts represent/include prior tenant.

9 Lease extended to 02/2035 upon completion of adjacent parking garage.

10 Interest rates range from 0.25% to 5.3% at 12/31/2019.

11 The multi-tenanted / vacant properties incurred approximately $3.7 million in operating expenses, net for the twelve months ended 12/31/2019.

12 Heidelberg Americas, Inc. lease expires 3/30/2021; however, new tenant (manroland Goss Web Systems America, LLC) lease expires 3/30/2026.

13 Lease restricts certain disclosures.

14 Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet).

15 Subsequent to 12/31/2019, lease extended to 6/30/2037.

16 Subsequent to 12/31/2019, the tenant dissolved and surrendered the premises.  Subleases will be assumed and/or direct leases will be entered into with the subtenants.

17 Subsequent to 12/31/2019, the tenant amended the lease and terminated 46,350 square feet effective 11/7/2020 and extended the remaining 23,750 square feet to 11/6/2023.

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LEXINGTON REALTY TRUST

Select Credit Metrics Summary ⁽¹⁾

	12/31/2019
Adjusted Company FFO Payout Ratio		51.6	%
Unencumbered Assets		$3.3 billion
Unencumbered NOI		84.1	%
(Debt + Preferred) / Gross Assets		34.5	%
Debt/Gross Assets		32.1	%
Secured Debt / Gross Assets		9.6	%
Net Debt / Adjusted EBITDA		4.9	x
(Net Debt + Preferred) / Adjusted EBITDA		5.3	x
Credit Facilities Availability (2)		$600.0 million
Unsecured Debt / Unencumbered NOI		4.6	x

Footnotes
(1)	See reconciliations of non-GAAP measures in this document. Lexington believes these credit metrics provide investors with additional information to evaluate its liquidity and performance.
(2)	Subject to covenant compliance.

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LEXINGTON REALTY TRUST

FINANCIAL COVENANTS ⁽¹⁾

Corporate Level Debt

	Must be:		12/31/2019
Bank Loans:
Maximum Leverage		<60%		36.2	%
Fixed Charge Coverage		>1.5x		2.8	x
Recourse Secured Indebtedness Ratio		<10% cap value		0.0	%
Secured Indebtedness Ratio		<40%		13.3	%
Unsecured Debt Service Coverage		>2.0x		5.8	x
Unencumbered Leverage		<60%		26.3	%
Bonds:
Debt to Total Assets		<60%		32.8	%
Secured Debt to Total Assets		<40%		9.8	%
Debt Service Coverage		>1.5x		4.0	x
Unencumbered Assets to Unsecured Debt		>150%		372.4	%

Footnotes

(1)

The following is a summary of the key financial covenants for Lexington's credit facility and term loan and senior notes, as of December 31, 2019 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date and applicable.  These calculations are presented to show Lexington's compliance with such covenants only and are not measures of Lexington's liquidity or performance.

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LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

12/31/2019

Property	Footnotes		Debt Balance ($000)		Interest Rate (%)			Maturity (a)		Current Estimated Annual Debt Service ($000)  (b)		Balloon Payment ($000)
INDUSTRIAL
Chester, SC			$	5,763		5.380	%		08/2025	$	1,144	$	362
Long Island City, NY				36,449		3.500	%		03/2028		4,879		-
Goodyear, AZ				41,877		4.290	%		08/2031		1,797		33,399
Warren, MI				25,850		5.380	%		11/2032		1,391		22,037
Industrial Subtotal/Wtg. Avg./Years Remaining (c)			$	109,939		4.342	%		10.4	$	9,211	$	55,798
OFFICE
Overland Park, KS		(e)	$	32,112		5.891	%		N/A	$	-	$	32,112
Boca Raton, FL		(j)		18,465		6.470	%		02/2020		293		18,414
Wall, NJ				5,576		6.250	%		01/2021		4,004		-
Charleston, SC		(e)		6,830		5.850	%		02/2021		520		6,632
Whippany, NJ				11,572		6.298	%		11/2021		1,344		10,400
Palo Alto, CA				26,301		3.970	%		12/2023		7,059		-
Lake Jackson, TX				183,077		4.040	%		10/2036		12,656		11,305
Office Subtotal/Wtg. Avg./Years Remaining (c)			$	283,933		4.580	%		11.3	$	25,876	$	78,863
Subtotal/Wtg. Avg./Years Remaining (c)			$	393,872		4.513	%		11.1	$	35,087	$	134,661
CORPORATE (f)
Revolving Credit Facility		(g)	$	-		-			02/2023	$	-	$	-
Senior Notes				250,000		4.250	%		06/2023		10,625		250,000
Senior Notes				250,000		4.400	%		06/2024		11,000		250,000
Term Loan		(h)		300,000		2.732	%		01/2025		8,310		300,000
Trust Preferred Notes		(i)		129,120		3.636	%		04/2037		4,760		129,120
Subtotal/Wtg. Avg./Years Remaining (c)			$	929,120		3.715	%		6.1	$	34,695	$	929,120
Total/Wtg. Avg./Years Remaining (c)		(d)	$	1,322,992		3.953	%		7.6	$	69,782	$	1,063,781

Footnotes
(a)	Subtotal and total based on weighted-average term to maturity shown in years based on debt balance.
(b)	Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months.
(c)	Total shown may differ from detailed amounts due to rounding.
(d)	See reconciliations of non-GAAP measures in this document.
(e)	Loan is in default.
(f)	Unsecured.
(g)	Rate ranges from LIBOR plus 0.775% to 1.45%
(h)	Rate ranges from LIBOR plus 0.85% to 1.65%. LIBOR rate was fixed at 1.732% through January 2025 via interest rate swap agreements.
(i)	Rate is three month LIBOR plus 170 bps.
(j)	Loan in default subsequent to 12/31/19.

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LEXINGTON REALTY TRUST

Debt Maturity Schedule

12/31/2019

($000)

Consolidated Properties
Year		Mortgage Scheduled  Amortization		Mortgage Balloon Payments  (1)		Corporate Debt
	2020	$	20,573	$	50,526	$	-
	2021		19,565		17,032		-
	2022		18,564		-		-
	2023		20,136		-		250,000
	2024		13,856		-		250,000
		$	92,694	$	67,558	$	500,000

Footnotes

(1)	Includes mortgage balloons in default
(2)	Percentage denotes weighted-average interest rate.

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LEXINGTON REALTY TRUST

Selected Balance Sheet Account Data

12/31/2019

($000)

Balance Sheet
Other assets	$	11,708
The components of other assets are:
Deposits	$	1,748
Equipment		468
Prepaids		1,081
Other receivables		724
Deferred lease incentives		7,687
Accounts payable and other liabilities
The components of accounts payable and other liabilities are:	$	29,925
Accounts payable and accrued expenses	$	18,184
CIP accruals and other		4,465
Taxes		341
Deferred lease costs		2,457
Deposits		1,631
Escrows		806
Transaction costs		113
Derivative liability		1,928

47

LEXINGTON REALTY TRUST

NON-GAAP MEASURES

DEFINITIONS

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in the Quarterly Earnings Press Release, in this Quarterly Supplemental Information and in other public disclosures.

Lexington believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable Generally Accepted Accounting Principles (“GAAP”) measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating Lexington's financial performance or cash flow from operating, investing, or financing activities or liquidity.

Definitions:

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties, impairment charges, debt satisfaction gains (charges), net, non-cash charges, net, straight-line adjustments, non-recurring charges and adjustments for pro-rata share of non-wholly owned entities. Lexington’s calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. Lexington believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA.

Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements, and lease termination income and to include ancillary income. Lexington believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio.

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements and lease termination income and includes ancillary income. Lexington believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.

Funds from Operations (“FFO”) and Adjusted Company FFO: Lexington believes 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 real estate investment trust (“REIT”). Lexington believes 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 (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

Lexington presents FFO available to common shareholders and unitholders - basic and also presents 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 Lexington’s common shares, are converted at the beginning of the period. Lexington also presents 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 Lexington's real estate portfolio. Lexington believes 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 Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate (or has generated) by the acquisition/completion cost (or sale) price.

48

LEXINGTON REALTY TRUST

NON-GAAP MEASURES

DEFINITIONS (CONTINUED)

Net Operating Income (NOI): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income) and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington's NOI may not be comparable to that of other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Lexington believes that net income is the most directly comparable GAAP measure to NOI.

Same-Store NOI: Same-Store NOI 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. As Same-Store NOI excludes the change in NOI from acquired and disposed of 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, Lexington's Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of Lexington's operating performance. However, Same-Store NOI should not be viewed as an alternative measure of Lexington 's financial performance since it does not reflect the operations of Lexington'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 Lexington's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact Lexington's results from operations. Lexington believes that net income is the most directly comparable GAAP measure to Same-Store NOI.

49

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES

($000)

	Twelve months ended December 31, 2019
Rent Reconciliation:
Rental revenue as reported	$	320,622
Base Rent from sold properties		(31,824	)
Lease termination income		(2,226	)
Ancillary revenue		1,429
Reimbursements		(30,242	)
Base Rent per supplement	$	257,759
Adjustments: (1)
Straight-line adjustments	$	(12,101	)
Lease incentives		916
Amortization of above/below market leases		(656	)
Cash Base Rent per supplement	$	245,918

Consolidated debt reconciliation December 31, 2019:

	GAAP Balance		Deferred Loan Costs, net		Discounts		Gross Balance
Mortgages and notes payable (2)	$	390,272	$	3,600	$	-	$	393,872
Term loans payable (3)		297,439		2,561		-		300,000
Senior notes payable(3)		496,870		2,167		963		500,000
Trust preferred securities (3)		127,396		1,724		-		129,120
Consolidated debt	$	1,311,977	$	10,052	$	963	$	1,322,992

Footnotes
(1)	Individual items are adjusted for sold properties, which were previously reflected in the reconciliation.
(2)	Secured.
(3)	Unsecured.

50

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Same-Store NOI Reconciliation:

	Twelve months ended December 31,
	2019			2018
Net income	$	285,293		$	230,906
Interest and amortization expense		65,095			79,880
Provision for income taxes		1,379			1,728
Depreciation and amortization		147,594			168,191
General and administrative		30,785			31,662
Transaction costs		202			260
Non-operating/advisory income		(6,180	)		(3,491	)
Gains on sales of properties		(250,889	)		(252,913	)
Impairment charges		5,329			95,813
Debt satisfaction charges, net		4,517			2,596
Equity in (earnings) of non-consolidated entities		(2,890	)		(1,708	)
Lease termination income		(2,226	)		(2,755	)
Straight-line adjustments		(14,502	)		(20,968	)
Lease incentives		1,191			1,686
Amortization of above/below market leases		(443	)		(10,132	)
Net Operating Income - ("NOI")		264,255			320,755
Less NOI:
Acquisitions and dispositions		(57,320	)		(103,640	)
Properties in default		964			(5,685	)
Same-Store NOI	$	207,899		$	211,430

NOI for NAV:

	Twelve months ended
	December 31, 2019
NOI per above	$	264,255
Less NOI:
Disposed of properties		(25,790	)
Assets acquired in 2019		(13,426	)
Assets less than 70% leased / Other		649
NOI for NAV	$	225,688

51

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation to Adjusted EBITDA:

	Year-end December 31, 2019
Net income attributable to
Lexington Realty Trust shareholders	$	279,910
Interest and amortization expense		65,095
Provision for income taxes		1,379
Depreciation and amortization		147,594
Straight-line adjustments		(14,502	)
Lease incentives		1,191
Amortization of above/below market leases		(443	)
Gains on sales of properties		(250,889	)
Impairment charges		5,329
Debt satisfaction charges, net		4,517
Non-cash charges, net		6,410
Pro-rata share adjustments:
Non-consolidated entities adjustment		9,390
Noncontrolling interests adjustment		4,349
Adjusted EBITDA	$	259,330

52

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation of Select Credit Metrics:

Adjusted Company FFO Payout:	Twelve months ended December 31, 2019			(Debt + Preferred) / Gross Assets:	Twelve months ended December 31, 2019
Common share dividends per share	$	0.4125		Consolidated debt	$	1,311,977
Adjusted Company FFO per diluted share		0.80		Preferred shares liquidation preference		96,770
Adjusted Company FFO payout ratio		51.6	%	Debt and preferred	$	1,408,747
Unencumbered Assets:				Total assets	$	3,180,260
Real estate, at cost	$	3,743,643		Plus depreciation and amortization:
less encumbered real estate, at cost		(470,231	)	Real estate		887,629
Unencumbered assets	$	3,273,412		Deferred lease costs		14,902
Unencumbered NOI:				Gross assets	$	4,082,791
NOI	$	264,255
Disposed of properties NOI		(25,790	)	(Debt + Preferred) / Gross Assets		34.5	%
Adjusted NOI		238,465
less encumbered adjusted NOI		(38,029	)	Debt  / Gross Assets:
Unencumbered adjusted NOI	$	200,436		Consolidated debt	$	1,311,977
Unencumbered NOI %		84.1	%
				Gross assets	$	4,082,791
Net Debt  / Adjusted EBITDA:
Adjusted EBITDA	$	259,330		Debt / Gross assets		32.1	%
Consolidated debt	$	1,311,977		Secured Debt  / Gross Assets:
less consolidated cash and cash equivalents		(122,666	)	Mortgages and notes payable	$	390,272
Non-consolidated debt, net		87,703
Net debt	$	1,277,014		Gross assets	$	4,082,791
Net debt / Adjusted EBITDA		4.9	x	Secured Debt / Gross Assets		9.6	%
(Net Debt + Preferred)  / Adjusted EBITDA:				Unsecured Debt / Unencumbered NOI:
Adjusted EBITDA	$	259,330		Consolidated debt	$	1,311,977
				less mortgages and notes payable		(390,272	)
Net debt	$	1,277,014		Unsecured Debt	$	921,705
Preferred shares liquidation preference		96,770
Net debt + preferred	$	1,373,784		Unencumbered adjusted NOI (Annual)	$	200,436
(Net Debt + Preferred) / Adjusted EBITDA		5.3	x	Unsecured Debt / Unencumbered NOI		4.6	x

53

Investor Information

Transfer Agent

Computershare	Overnight Correspondence:
PO Box 505000	462 South 4th Street, Suite 1600
Louisville, KY 40233	Louisville, KY 40202
(800) 850-3948
www-us.computershare.com/investor

Investor Relations

Heather Gentry
Senior Vice President, Investor Relations
Telephone (direct)	(212) 692-7219
Facsimile (main)	(212) 594-6600
E-mail	hgentry@lxp.com

Research Coverage

Bank of America/Merrill Lynch		KeyBanc Capital Markets Inc.
James Feldman	(646) 855-5808	Craig Mailman	(917) 368-2316
Evercore Partners		Ladenburg Thalmann & Co., Inc.
Sheila K. McGrath	(212) 497-0882	John Massocca	(212) 409-2543
J.P. Morgan Chase		Stifel Nicolaus
Anthony Paolone	(212) 622-6682	John W. Guinee	(443) 224-1307
Jeffries & Company, Inc.		Wells Fargo Securities, LLC
Jon Peterson	(212) 284-1705	Todd J. Stender	(562) 637-1371

54

LEXINGTON REALTY TRUST

One Penn Plaza, Suite 4015 | New York, NY 10119-4015 | (212) 692-7200 | www.lxp.com

55

EX-99.2

EXHIBIT 99.2

Lexington Realty Trust – UNEDITED TRANSCRIPT

Q4 2019 Earnings Call

Company Participants:

T. Wilson Eglin, Chairman and Chief Executive Officer 


Beth Boulerice, Executive Vice President, Chief Financial Officer and Treasurer


Brendan Mullinix, Executive Vice President

Lara Johnson, Executive Vice President

James Dudley, Executive Vice President and Director of Asset Management

Heather Gentry, Senior Vice President of Investor Relations

Operator:

Good day, and welcome to the Lexington Realty Trust Fourth Quarter 2019 Conference Call and Webcast. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the call over to Heather Gentry of Investor Relations. Please go ahead.

Heather Gentry:

Thank you, operator. Welcome to Lexington Realty Trust’s Fourth Quarter 2019 conference call and webcast. The earnings release was distributed this morning, and both the release and quarterly supplemental are available on our website at www.lxp.com in the Investors section and will be furnished to the SEC on a Form 8-K.

Certain statements made during this conference call regarding future events and expected results may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Lexington believes that these statements are based on reasonable assumptions; however, certain factors and risks, including those included in today’s earnings press release and those described in reports that Lexington files with the SEC from time to time could cause Lexington’s actual results to differ materially from those expressed or implied by such statements. Except as required by law, Lexington does not undertake a duty to update any forward-looking statements.

In the earnings press release and quarterly supplemental disclosure package, Lexington has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure. Any references in these documents to Adjusted Company FFO refer to Adjusted Company Funds from Operations available to all equityholders and unitholders on a fully diluted basis. Operating performance measures of an individual investment are not intended to be viewed as presenting a numerical measure of Lexington's historical or future financial performance, financial position or cash flows.

On today’s call Will Eglin, Chairman and CEO, Beth Boulerice, CFO, and Executive Vice Presidents Brendan Mullinix, Lara Johnson, and James Dudley will provide commentary focused on third-quarter results. I will now turn the call over to Will.

1

T. Wilson Eglin:

Thanks, Heather. Good morning everyone. We had an excellent fourth quarter and demonstrated strong execution across all areas of our business, including investments, dispositions, portfolio operations, and capital markets. We successfully implemented our business plan each quarter throughout 2019, which brought us closer to our goal of becoming a 100% single-tenant industrial REIT and resulted in our new classification as an industrial REIT by both NAREIT and MSCI. Our execution has been purposeful and prudent during this transition, with the patient accumulation of successes rewarding our shareholders. In just two years, we’ve grown our industrial assets nearly 65%, ending 2019 with our industrial exposure at close to 82% of gross book value. As we’ve continued to add high-quality, well-located assets to our industrial portfolio, we have increased our industrial investment grade tenancy to 46%, lowered the average industrial portfolio age to 12.6 years, and boosted our exposure in the top 50 industrial markets to 80%.

Starting with investments, we had a very active year, investing over $700 million dollars in warehouse and distribution centers at weighted-average GAAP and cash cap rates of 5.8% and 5.4%, respectively. Although the investment landscape has remained competitive, we have been pleased with our Class A industrial purchases, which are well-located in strong primary and secondary submarkets. Our goal is to have another year of significant investment activity. We are off to a great start thus far in 2020, with acquisitions of approximately $195 million dollars closed to date. Given our steady execution, we believe we are well-positioned to grow our industrial exposure to over 90% of gross book value by year-end.

During the quarter, we capitalized on our long-standing relationships with developers to close on three select development projects. While these projects are just getting underway, we are excited about expanding this avenue of growth in our business. In addition to property purchases, we believe it’s valuable to further diversify our growth opportunities and build a deeper presence in certain key markets.

Moving onto dispositions, we had a strong finish to the year, which brought total consolidated property sales to $622 million dollars at very attractive weighted-average GAAP and cash cap rates of 6.4% and 5.6%, respectively. Our accelerated sales efforts over the last few years have reduced our office and other non-industrial assets to less than 20% of our total gross book value.

Looking at 2020, we expect to have substantial capacity to fund our investments primarily from disposition proceeds. That said, we prefer to be a net acquirer this year as we were last year and it’s possible that we will take advantage of capital markets opportunities as they arise, like they did in 2019, to support growth objectives. During the quarter, we issued 6.6 million shares through our ATM program, raising net proceeds of approximately $71 million dollars. The proceeds were used primarily to fund new investments. We have also maintained an exceptionally strong balance sheet with net debt to Adjusted EBITDA of 4.9 times at year end. We believe our conservative balance sheet position provides for additional flexibility should we need capital as the year progresses.

Looking at our portfolio operations, we were heavily focused on executing new and extended leases over the course of the year, and the effort paid off. We leased over six million square feet in 2019, increasing base rents over 7%. The majority of our 2020 leasing expirations have been addressed, and our focus is on 2021 and beyond, particularly as we work to maximize the value of future office dispositions.

2

Finally, turning to our financial results, in the fourth quarter we generated net income of $0.33 cents per diluted common share and Adjusted Company FFO of $0.20 cents per diluted common share. Our 2019 Adjusted Company FFO of $0.80 cents per diluted common share was at the top end of our guidance range. In connection with our earnings release this morning, we announced estimated 2020 Adjusted Company FFO guidance in the range of $0.74 to $0.77 cents per diluted common share.

This guidance considers our continued capital recycling strategy out of office and into industrial. While this results in earnings dilution in the short-term, we have made tremendous strides in repositioning our portfolio to focus on assets that we believe provide for capital appreciation, income growth, consistent cash flows, and lower operating costs over the longer-term. Additionally, as a result of these portfolio changes, we believe AFFO is trending positively, although the trend may be impacted from time to time in the context of value creating capital expenditures. As a result, we expect annual modest dividend growth to continue, consistent with our recent dividend increase.

With that, I’ll turn the call over to Brendan to talk more specifically about investments.

Brendan Mullinix:

Thanks, Will. We acquired six industrial assets in the fourth quarter for $264 million dollars at weighted-average GAAP and cash cap rates of 5.9% and 5.3%, respectively, ending our year better than previously forecasted. These properties comprise roughly 3.7 million square feet and include a mix of bulk distribution centers and smaller warehouse facilities. They are primarily located within two logistics markets that we have targeted for further investment, including Phoenix and Greenville/Spartanburg.

As discussed on last quarter’s call, we closed on two of the Greenville/Spartanburg assets early in the fourth quarter. These properties are located within an established industrial market in a submarket close to I-85 and the Greer Inland Port. Leased to two logistics companies for five years on average, the properties were built within the last two years to modern specs and together average attractive annual rental escalations of approximately 2.6 percent. Late in the fourth quarter, we closed on a brand new, Class A, distribution center in the same market. The facility is leased to an investment-grade rated home improvement retailer for 15 years with annual rental escalations of about 2 and a half percent. We like the Greenville/Spartanburg logistics market due to its positive demand drivers from tenants, increased population growth, high levels of absorption, and easy access to freeways and the Greer Inland Port.

On last quarter’s call, we had also discussed a facility we purchased in Phoenix’s most active submarket, which is leased to CHEP Pallets for seven years, with annual rental escalations of approximately 2 and a half percent. This property is part of a two-property portfolio, in which the second property, leased to Ball Corporation for six years with average rental escalations of two and a quarter percent per annum, closed subsequent to the quarter in early January of this year. In addition, during the fourth quarter, we closed on a distribution center in the same logistics submarket leased to an e-commerce company, for a long-term lease of approximately 11 years with two percent escalations. We continue to be attracted to this market due to its growth prospects, the strong labor pool, and its position as a lower cost alternative to higher priced West Coast markets.

3

In December, we committed to the purchase of a three-property industrial portfolio in a logistics submarket of Chicago. All three properties, which had different scheduled closing dates, are leased for approximately 10 years with average annual rental escalations of just over two percent. One of the properties closed in the fourth quarter, and the two others closed in January 2020. The properties are leased to strong credit tenants, Kellogg’s and BMW, and enjoy close proximity to I-80 and I-55. The I-80 submarket is one of Chicago’s most active bulk distribution submarkets.

Also, during the quarter, we invested roughly $15 million dollars in three new development projects in Atlanta and Columbus, Ohio. Most notable is our land parcel in Atlanta where we are developing approximately 900,000 square feet, with an estimated completion date by the end of 2020. We also exercised our option with our development partner to purchase approximately 130 acres across the street from our existing development project in Etna, Ohio and we separately acquired 23.6 acres of developable land in the Rickenbacker submarket of Columbus, Ohio. As Will mentioned, we are looking to open additional avenues of growth and expand our presence in some of our existing markets, and these development projects support our goals.

Finally, subsequent to the quarter, we closed on a newly constructed facility located in the North Fort Worth submarket of the Dallas/Fort Worth metroplex that has excellent access to I-35. The property is leased to Black & Decker for close to 10 years with annual rental bumps of approximately 2%.

We are off to a strong start in 2020, with $195 million dollars of new industrial acquisitions closed to date, and we continue to actively review additional industrial opportunities in the market.

I’ll now turn the call over to Lara to discuss dispositions.

Lara Johnson:

Thanks, Brendan. We finished the year strong, disposing of $173 million dollars of non-core assets in the fourth quarter at weighted-average GAAP and cash cap rates of 8.1% and 7.8%, respectively. These assets consisted of six office properties, three retail properties, and one small non-core industrial property, which generated a combined annualized NOI of approximately $13 million dollars. These transactions brought our total 2019 consolidated sales volume to $622 million, with an additional $177 million of joint venture dispositions last year.

We will continue to move toward our portfolio composition objectives in 2020, with targeted disposition volume of $250 to $500 million dollars. At the high end of the range, the targeted pool of sale assets generated approximately $35 million dollars of fourth quarter annualized NOI and was 68% occupied at year-end.

4

Our Dow Chemical office property is included, we have received off-market expressions of interest in the Dow property, and while it is still possible that a transaction will be completed off-market, we are simultaneously preparing for a marketing campaign.

Our 2020 disposition plan is well underway. We currently have approximately $72 million dollars of consolidated assets either under contract or with an accepted offer, and we are actively in the market with several other properties. We were very pleased with our sale outcomes in 2019, and we expect to continue our steady execution in 2020 as we work diligently to complete the plan and advance our broader objective to become 100% industrial.

With that, I will turn the call over to James who will provide an update on leasing.

James Dudley:

Thanks Lara. During the quarter, we executed lease extensions and new leases in excess of two million square feet, with an overall leased portfolio of 97% at quarter end. When compared to the third quarter, occupancy is slightly down as a result of Michelin’s planned move out in Moody, Alabama at the end of 2019. Despite this move out, our industrial portfolio remains almost 98% leased.

Same-store NOI on the entire portfolio was down 1.7% as of year-end, and when removing single-tenant vacancy, was flat. Approximately 87% of our industrial portfolio has rental escalations, which we believe should ultimately lead to positive same store growth as we continue to reduce our office holdings. Execution of our 2020 plan is expected to produce industrial same-store NOI growth of approximately 2%, subject to vacancy and renewal outcomes.

On the industrial side, we were pleased to see positive leasing outcomes, which resulted in an increase in base and cash base rents of 28% and 8%, respectively. If you recall, we acquired our Mars property in Atlanta with a short-term lease at the time of purchase last year. During the quarter, negotiations resulted in a five-year renewal at an 18% cash base rental increase with 3% annual rental bumps. We will invest approximately $9 million dollars in the property, with approximately $7.5 million being amortized over the term at 7%. This type of capital improvement creates considerable near- and long-term value in view of rate of return, strong credit tenant, and enhanced probability of renewal. We also executed a new three- year lease with RC Moore at our industrial facility in Tampa. Our previous tenant was scheduled to move out in June of 2020. We were able to re-tenant the building at an attractive rent for the market without experiencing any down time from the expected move out. Lastly, during the quarter, the lease on our Michelin facility in Laurens, South Carolina was further extended until January 2021.

Subsequent to quarter end, Kitchen Collection liquidated and vacated our Chillicothe, Ohio warehouse. The current subtenants occupy 95% of the facility, and we believe that we will be able to completely back fill the vacated space.

5

On the office side, during the quarter, we executed a 10-plus year extension with Quest Diagnostics in Lenexa, Kansas, and the property is now being marketed for sale. Subsequent to the quarter, we extended our lease with New Jersey Natural Gas in Wall, New Jersey for 15 years with annual renewal rents starting at approximately $3 million dollars. Our plan is to sell the asset following the expiration of the $52.5 million-dollar purchase option at the end of 2022. We will spend approximately $13.5 million over the next two years to secure this early lease renewal, which greatly enhances the sale value.

Additionally, our office property that was formerly leased to Oce-USA Holdings until earlier this month has a non-recourse mortgage encumbering the property and is in the process of being conveyed to the lender.

We continue to work diligently on 2020 lease expirations and beyond. Of our remaining three 2020 industrial lease expirations, we are in negotiations with ODW Logistics for a renewal, Unilever is likely to be a user-buyer sale, and we believe Geodis will extend their lease, but it is still too early in the year to have clear visibility on this late December 2020 expiration.

With that, I will now turn the call over to Beth who will discuss financial results.

Beth Boulerice:

Thanks, James. Overall, 2019 was a positive year with many notable highlights. We raised more than $200 million dollars of equity, extended the maturity dates of our revolving credit facility and our term loan, while lowering the applicable margin rates, and satisfied a great deal of secured debt. Our balance sheet remains in excellent shape with low leverage and provides a great deal of flexibility as we think about funding alternatives for growth.

Moving onto fourth quarter financial results, net income attributable to common shareholders was $84 million dollars, or $0.33 cents per diluted common share in the quarter, compared to $24 million dollars, or $0.10 cents per diluted common share for the same time period in 2018.

Adjusted Company FFO was approximately $52 million dollars, or $0.20 cents per diluted common share in the fourth quarter, for a total of $197 million dollars, or $0.80 cents per diluted common share for the year. Our Adjusted Company FFO payout ratio of 51.6% at quarter end remains extremely attractive, which we believe positions us to both grow our dividend and retain capital to fund investment opportunities.

The estimated 2020 Adjusted Company FFO guidance range of $0.74-$0.77 cents per diluted common share that was announced today incorporates our commentary on dispositions, investments, and leasing that we have made on this call.

Gross revenues of $83 million dollars for the quarter were down when compared to the same time period last year as a result of sales and our continued transition to becoming a 100% single-tenant, industrial REIT.

Property operating expenses were $11 million dollars for the quarter, of which 79% was attributable to tenant reimbursements. G&A expenses were about $7 million dollars in the quarter, bringing total G&A for the year to just under $31 million dollars. This figure was slightly better than we had anticipated and represented a slight improvement when compared to 2018 G&A. We estimate our 2020 G&A will be within a range of $31 to $33 million dollars, and we continue to explore ways to operate more efficiently.

6

Leasing costs and tenant improvements were approximately $6.6 million dollars in the fourth quarter, bringing the 2019 total to $22 million dollars. As we look to 2020, our budget for leasing costs and tenant improvements includes the investment of approximately $13 to $15 million dollars in connection with the lease extensions for Mars and New Jersey Natural Gas that James discussed. Additionally, we anticipate another $10 to $12 million dollars for other expenditures that support occupancy for a total of $23 to $27 million dollars for the year. Costs for the New Jersey Natural Gas lease were previously budgeted for in 2021, when the lease was scheduled to expire. Keep in mind that leasing costs and tenant improvement estimates are always subject to change due to a variety of factors including the timing of the improvements and leasing activity.

Turning to the balance sheet, at quarter end, we had approximately $130 million dollars of cash, including restricted cash, with nothing outstanding on our revolver. Leverage remained low, and at quarter end was 4.9 times net debt to Adjusted EBITDA. While we expect fluctuations in this metric in any given quarter as we continue to move through our capital recycling strategy, sales proceeds and our capital markets transactions during the quarter provided the necessary funding for our investments and supported low leverage at quarter end. As Will mentioned earlier in the call, we issued an additional 6.6 million shares under our ATM program during the quarter, for net proceeds of $71 million dollars. Our current diluted weighted-average share count is now estimated to be 261 million common shares.

At quarter end, our consolidated debt outstanding was approximately $1.3 billion with a weighted-average interest rate of approximately 4% and a weighted-average term of 7.6 years. Unencumbered NOI represented more than 84% of our portfolio at quarter end.

With that, I’ll turn the call back over to Will.

T. Wilson Eglin:

Thanks Beth. I will now turn the call over to the operator who will conduct Q&A.

Operator:

Thank you. We will now begin the question and answer session. (Operator Instructions)

And our first question today comes from Anthony Paolone from JPMorgan. Please go ahead with your question.

Anthony Paolone:

Thank you. Good morning. I guess first question maybe for Brendan, can you talk about just the difference in cap rates on something like Greenville with five or six years of duration on the lease versus say BMW in Chicago and kind of how those vary?

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Brendan Mullinix:

Yes, sure. Between the two, it’s actually fairly wide. If you look at the two smaller Greenville assets, those cap rates were around 5.70 cap rate whereas if you have a 15-year investment grade in credit, that cap rate was just above 5.

Anthony Paolone:

Okay. And as you’re looking at the pipeline right now, where do you kind of see the sweet spot where you’re getting paid for the risk you’re taking and where Lexington can compete best?

Brendan Mullinix:

It’s hard to solely look at cap rate as the only metric and we really have to consider the long-term performance and there’s rent base, there’s escalation structure, there’s lease duration. If you look at our recent activity, we’ve favored longer lease terms, stronger credits and more primary markets in our recent activity. And in those markets we’ve seen cap rates be anywhere in the range for sort of the very best combination of those factors. In today’s market it could be as low as something around 4.75 to 5 in that kind of range. And then as I’ve said, when we were discussing the Greenville market, in those opportunities it could be in the mid to upper 5 range. So it’s a fairly wide range and a lot of it will just depend on mix of the market filtrations [ph] in credit. So it is a wide range if you looked at the 4.75 to 5.75 that we’re talking about, but it will sort of remain to be seen.

Anthony Paolone:

Okay, but that sounds like that should be the general zip code we’re thinking about for your activity in 2020. Is that fair?

Brendan Mullinix:

Yes.

Anthony Paolone:

All right. And then just one final question. You show the pie chart in the supplemental around the escalations built into your leases. What does that look like when you roll it up in terms of just contractually across the portfolio?

Beth Boulerice:

The average escalation rate is about 2%. Is that where you’re getting at?

Anthony Paolone:

Yes. Is that kind of where those pieces of the pie roll up to?

Beth Boulerice:

Right, exactly.

Anthony Paolone:

Okay. That’s all I have. Thank you.

T. Wilson Eglin:

Thanks, Tony.

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Operator:

Our next question comes from Sheila McGrath from Evercore ISI. Please go ahead with your question.

Sheila McGrath:

Yes. Good morning. Will, you mentioned re-categorizing the company to the industrial category. Just wondering if you still plan on focusing exclusively on single tenant industrial, not multitenant? And how you think about length of lease term and credit, are you more focused on longer lease term and investment grade tenants for acquisitions?

T. Wilson Eglin:

Sure. We have been focused more on longer leases and higher grade credit recently. But if you look at what we’ve done in the last 12 months, it’s been – we’ve invested in some things with shorter lease duration that we think will turn out very well. The identity of the company is clearly in the single tenant industrial area. That doesn’t mean we wouldn’t buy a building with a couple of large tenants in it. It also doesn’t mean that we wouldn’t buy a building with one substantial tenant and some vacancy where we’re confident about the leasing outcomes. But we’re very committed to the single tenant industrial area. That’s the strength of the franchise.

Sheila McGrath:

Okay, great. And then could you give us more detail on the developments? Are these speculative or build to suite and what kind of stabilized returns on costs you’re forecasting?

Brendan Mullinix:

Sure. I’ll take that. The development activity that we announced I guess separating them, the ETNA East land acquisition which is an expansion of our original ETNA project, that project is really going to be around build to suite. And then the two other projects that we announced this quarter, a project in Atlanta which is underway and the planned project in the Rickenbacker submarket of Columbus, those two would be [indiscernible] projects. And in those cases, starting with Atlanta, those were joint ventures at the project level. We’re targeting development yields around 6%. And in the Rickenbacker project, we’re targeting investment yields around 7.

Sheila McGrath:

Okay. And one last question. The capital expenditure guidance that you outlined, is it possible to roughly give us how much is from the office part of the portfolio versus the industrial?

Beth Boulerice:

Yes, sure, Sheila. Primarily it is in the office area. And when we talk about the additional 10 million to 12 million in that area, it’s mainly I would say about 85% in the office.

Sheila McGrath:

Okay, great. Thank you.

9

Operator:

Our next question comes from John Guinee from Stifel. Please go ahead with your question.

John Guinee:

Great. Thank you. Nice quarter. Nice guidance. First a big picture question. You guys are in One Penn Plaza which I think Vornado is renaming Penn One. I know you’re upset that Kmart’s moving out of 131,000 square feet in your lower level shortly – you found another place?

T. Wilson Eglin:

We’re looking.

John Guinee:

Okay. Question, what do you think of that renovation, what do you think about your – what are you willing to pay in that building once they’ve turned it into a Class A property in that market?

T. Wilson Eglin

I think that Vornado’s plans here around Penn are fantastic and likely to be highly successful. It may take a little bit of time to play out, but what they’re doing here is tremendous and will surely drive rents well higher than what we’re currently paying. So we’re looking at other occupancy alternatives for us so that we can stay in Manhattan, but be at a lower price point. But we have five years to go on our lease at a very, very inexpensive rate relative to market.

John Guinee:

Great. Okay. And then looking at your investments, acquisitions, Chicago looks like about $47 a square foot, Greenville and Spartanburg $72 a square, $85 a square, $88 a square. Obviously $47 shouldn’t concern anybody but getting up in the 70s to 80s in Greenville-Spartanburg seems a little high. Does it really cost that much to build in that part of the world?

Brendan Mullinix:

This is Brendan. I guess the first thing I should say the Chicago portfolio was three closings, so two of the properties in that portfolio closed in the first quarter. So on average that portfolio was around $65 a foot, I think it was $64 a foot. So the one that closed in fourth quarter was a little bit older building with low clear height, John, which I think explains the price point.

John Guinee:

Got you.

Brendan Mullinix:

But with new construction we are seeing building cost increase. Some of the cost that – some of the other acquisition activity that we referenced were fairly brand new buildings. So some of those is newer, but there is – in our market there is a premium to lease assets relative to construction cost for sure.

John Guinee:

Great. Thank you.

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T. Wilson Eglin:

Thanks, John.

Operator:

Our next question comes from John Massocca from Landenburg Thalmann. Please go ahead with your question.

John Massocca:

Good morning.

Beth Boulerice:

Good morning.

John Massocca:

How should we think about timing for a sale of the Dow Chemical property if you guys go through a fully marketed process for that disposition?

Lara Johnson:

Yes, there’s quite an appetite – this is Lara. Good morning. There’s quite an appetite for longer term leases with investment grade credit and that certainly falls into that category. So we don’t expect if we go to market to have a particularly protracted process. Generally once marketing materials are developed and an asset is launched, we would be in the market for roughly 30 days, go through call for our first process with multiple rounds we expect on an asset of that quality. And essentially execute in 90 days or so or less.

John Massocca:

Okay. And maybe I guess what would kind of prevent that from happening essentially tomorrow? You’re still going through and kind of looking over potential off-market expressions of interests or --?

Lara Johnson:

Yes, we are. We’ve had significant off-market interest in the asset. It is encumbered by a significant amount of debt as you likely know. So we are talking both to buyers who would buy free clear and to folks who would be interested in acquiring it as encumbered and an assignment of the debt.

John Massocca:

Okay, understood. And then on 1701 Market Street, has there been any kind of changes in your thought process in terms of potentially selling that asset or kind of what your long-term plan is there?

Lara Johnson:

We do have a fair amount of term left on the lease there now on the office component. As you would expect, there’s been significant interest in the market relative to what our plans are for that asset. But we are evaluating numerous options and opportunities there, but we expect to firm up over the next quarter or two. So TBD what will happen with that asset this year, but significant interest out there in it.

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John Massocca:

Okay. And then lastly, excuse me if I missed this, with ODW in Columbus, what is kind of the general – your general view on where those rents are going to be on a potential renewal versus kind of current rents?

James Dudley:

We think our rent is below market. But since we’re in negotiation with the tenant, we don’t want to sort of negotiate against ourselves in a public context. But I think the rent is inexpensive and hopefully we can renew the lease and raise the rents.

John Massocca:

Okay. That’s it from me. Thank you very much.

Operator:

[Operator Instructions]. Our next question is a follow up from John Guinee from Stifel. Please go ahead with your follow up.

John Guinee:

I forgot to ask, Cummins in Columbus, Indiana, wasn’t that – didn’t they have a $5 million purchase option?

T. Wilson Eglin

They did.

John Guinee:

And were they the ones who are paying 47 million or somebody else?

T. Wilson Eglin:

They purchased the building from us.

John Guinee:

Nicely done.

T. Wilson Eglin:

Thank you.

Operator:

[Operator Instructions]. And ladies and gentlemen, at this time I’m showing no additional questions. I’d like to turn the conference call back over to management for any closing remarks.

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T. Wilson Eglin:

We appreciate all of you joining us this morning. Please visit our Web site or contact Heather Gentry if you would like to receive our quarterly materials. And in addition as always, you may contact me or the other members of senior management with any questions. Thanks again for joining the call.

Operator:

Ladies and gentlemen, that does end today’s conference call. We do thank you for joining today’s presentation. You may now disconnect your lines.

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