Lexington Realty Trust

TRADED: NYSE: LXP

One Penn Plaza, Suite 4015

New York NY 10119-4015

Contact:

Investor or Media Inquiries, T. Wilson Eglin, CEO

Lexington Realty Trust

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

FOR IMMEDIATE RELEASE

January 8, 2010

LEXINGTON REALTY TRUST ANNOUNCES FOURTH QUARTER ACTIVITY

New York, NY – January 8, 2010 – Lexington Realty Trust (“Lexington”) (NYSE: LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, announced the following update on fourth quarter and recent transaction activity, some of which was previously announced:

Leasing

During the fourth quarter of 2009, Lexington executed 19 new and extended leases for approximately 1.0 million square feet and ended the year with portfolio occupancy of approximately 92%.

Leasing activity for the quarter included the following new leases:

	Tenants/Guarantors	Location		Lease Expiration Date		Sq. Ft.		New Cash Rent Per Annum ($000)		New GAAP Rent Per Annum ($000)

	Office
1	Brown Mackie College-Phoenix (1)	Phoenix	AZ		09/2019		4,747	$	85	$	85
2	Leetex Construction (1)	Dallas	TX		07/2012		554	$	9	$	9
3	Neighborhood Assistance Corporation of America	Decatur	GA		05/2017		6,994	$	138	$	138
4	Patient Advocate Foundation	Hampton	VA		12/2019		36,484	$	602	$	602
5	STIA, LLC	Dallas	TX		01/2013		1,288	$	18	$	18
5	Total office new leases						50,067	$	852	$	852

	Industrial
1	Ozburn-Hessey Logistics	Statesville	NC		05/2013		471,000	$	1,313	$	1,313
2	Cardinal Unijax, LLC and Camelot Drive Holdings, LLC (2)	Jacksonville	FL		03/2010		58,589	$	148	$	148
2	Total industrial new leases						529,589	$	1,461	$	1,461

7	TOTAL NEW LEASES						579,656	$	2,313	$	2,313

Footnotes

(1) Represents expansion portion of existing lease.

(2) Held as an investment in Net Lease Strategic Assets Fund.

Leasing activity for the quarter also included the following lease extensions:

	Tenants/Guarantors	Location		Prior Term		Lease Expiration Date		Sq. Ft.		New Cash Rent Per Annum ($000)		Prior Cash Rent Per Annum ($000)		New GAAP Rent Per Annum ($000)		Prior GAAP Rent Per Annum ($000)
	Office
1	Alice H. Vinton, d/b/a Vinton Realty	Honolulu	HI		10/2009		02/2013		308	$	4	$	7	$	4	$	7
2	Capital One Services, LLC	Glenn Allen	VA		03/2010		03/2012		77,045	$	732	$	1,019	$	785	$	1,010
3	City National Bank of NJ (2)	Philadelphia	PA		12/2009		12/2010		5,315	$	239	$	213	$	239	$	213
4	Cityspace Real Estate, Inc.	Dallas	TX		11/2009		11/2012		1,161	$	16	$	17	$	16	$	17
5	Dallas MTA, L.P., d/b/a Verizon Wireless	Dallas	TX		09/2009		09/2014		265	$	25	$	18	$	25	$	18
6	Entergy Arkansas, Inc.	Little Rock	AR		10/2010		10/2015		36,311	$	237	$	237	$	237	$	237
7	Entergy Services, Inc. (1)	Pine Bluff	AR		10/2010		10/2015		27,189	$	192	$	192	$	192	$	192
8	HSBC Card Services, Inc.	Tulsa	OK		01/2010		01/2011		101,100	$	1,446	$	1,307	$	1,446	$	1,307
9	John Michelli	Baltimore	MD		09/2009		12/2015		543	$	4	$	3	$	4	$	3
10	Money Management International (4)	Phoenix	AZ		03/2016		07/2018		48,831	$	1,099	$	646	$	1,107	$	627
11	United HealthCare Services, Inc.	San Antonio	TX		11/2010		11/2017		142,500	$	1,781	$	1,640	$	1,866	$	1,621
12	Windell Investments, Inc. (3)	Irvine	CA		02/2010		08/2015		6,725	$	160	$	129	$	160	$	129
12	Total office lease extensions								447,293	$	5,935	$	5,428	$	6,081	$	5,381

19	TOTAL NEW AND EXTENDED LEASES								1,026,949	$	8,248	$	5,428	$	8,394	$	5,381

Footnotes

(1) Held as an investment in Net Lease Strategic Assets Fund.

(2) Consolidated joint venture property, Lexington’s ownership is 80.50%.

(3) Consolidated joint venture property, Lexington’s ownership is 64.35%.

(4) New cash and GAAP rents represent full occupancy, prior cash and GAAP rents for 28,710 square feet.

Balance Sheet

Lexington reduced its consolidated debt (exclusive of normal amortization) during the fourth quarter by approximately $66.4 million, including approximately $17.6 million original principal amount of Exchangeable Notes. During 2009, Lexington reduced the amount of Exchangeable Notes outstanding from $211.0 million to approximately $87.7 million. At year-end, Lexington had $7.0 million outstanding on the $125.0 million revolving loan portion of its secured credit facility.

Common Share Dividend

Lexington returned to paying its quarterly common share dividend in cash. On November 18, 2009, Lexington announced that it declared a regular common share dividend for the quarter ending December 31, 2009 of $0.10 per common share payable in cash on January 15, 2010 to common shareholders of record on December 31, 2009.

Dispositions

During the fourth quarter of 2009, Lexington sold or disposed of its interests in eight properties to unrelated parties for an aggregate disposition price of approximately $45.7 million. Prior to disposition, the properties generated annualized net operating income of approximately $1.7 million or 3.7% of the aggregate disposition price. In addition, Lexington sold its interest in two joint venture investments generating approximately $12.6 million in net proceeds.

Lexington’s disposition activity for the quarter included the following dispositions(1):

Tenants/Guarantors

Location

Property Type

Gross

Sale Price

($000)

Month of

Disposition

Compass Bank

Beaumont

Office

3,200

Nov

Kohl's Department Stores, Inc.

Eau Claire

Retail

5,000

Dec

Multi-tenant

Dallas

Office

7,750

Dec

Rock Falls Country Market, LLC (Rock Island Country Market, LLC)

Rock Falls

Retail

650

Nov

Staples, Inc.

Baton Rouge

Industrial

5,000

Dec

Vacant (2)

Plymouth

Industrial

4,335

Dec

Vacant (2)

Houston

Office

18,229

Dec

Vacant

Grand Prairie

Retail

1,525

Nov

TOTAL DISPOSITIONS

45,689

Footnotes

(1) Lexington also sold its investment in two joint ventures for an aggregate gross sales price of $36,560. Lexington’s share of gross sales price was $14,660 and net proceeds were $12,573.

(2) Gross sale price represents mortgage debt balance at foreclosure or other disposition.

Acquisitions

On December 31, 2009, Lexington acquired a property in Greenville, South Carolina for $10.5 million, consisting of a three-story 106,306 square foot office building and a one-story 21,735 square foot annex building on an approximately 8.0 acre parcel. At closing, the property was net-leased to Canal Insurance Company for 20 years at an initial capitalization rate of 8.60%, with 2.35% rent increases annually during the first ten years and CPI rent increases subject to a floor of 2.0% and a ceiling of 4.0% during the remainder of the term. Canal Insurance Company has an option to purchase the property on the fifth anniversary of the lease commencement at fair market value, but not less than $10.7 million and no greater than $11.6 million. If Canal Insurance Company fails to exercise its purchase option, Lexington has the right to require Canal Insurance Company to purchase the property for approximately $10.7 million.

Canal Insurance Company is an underwriter and provider of property/casualty insurance, primarily for the commercial trucking industry. Canal Insurance Company is rated A(PI) by Standard & Poor’s and A+ by A.M. Best.

Comments from Management

T. Wilson Eglin, Chief Executive Officer of Lexington Realty Trust, commented, “Our fourth quarter leasing activity was robust and we are pleased to have finished 2009 with portfolio occupancy of approximately 92%. We believe our disposition efforts continue to strengthen our balance sheet and liquidity and fourth quarter dispositions volume brought our total for 2009 to approximately $190.0 million, or approximately $40.0 million above our objectives. We have used the majority of proceeds to reduce our indebtedness. Our strategy for 2010 will be to continue selling our non-core holdings, specifically our multi-tenant and retail properties with the objective of reducing our recourse leverage, while selectively taking advantage of growth opportunities in single-tenant office and industrial properties.”

ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust is a real estate investment trust that owns, invests in and manages office, industrial and retail properties primarily net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington shares are traded on the New York Stock Exchange under the symbol “LXP”. Additional information about Lexington is available on-line at www.lxp.com or by contacting Lexington Realty Trust, Investor Relations, One Penn Plaza, Suite 4015, New York, New York 10119-4015.

###