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): May 9, 2017

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)

(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))

Item 2.02. Results of Operations and Financial Condition.

On May 9, 2017, we issued a press release announcing our financial results for the quarter ended March 31, 2017. 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 May 9, 2017, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, First Quarter 2017,” a copy of which is furnished herewith as Exhibit 99.1.

Also on May 9, 2017, 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, First Quarter 2017.
99.2	May 9, 2017 Conference Call Transcript.

SIGNATURES

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

	Lexington Realty Trust
Date: May 9, 2017	By:	/s/ Patrick Carroll
		Patrick Carroll
		Chief Financial Officer

Exhibit Index

99.1	Quarterly Supplemental Information, First Quarter 2017.
99.2	May 9, 2017 Conference Call Transcript.

EX-99.1

EXHIBIT 99.1

  

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

March 31, 2017

Table of Contents

Section	Page
First Quarter 2017 Earnings Press Release	3
Portfolio Data
Investment / Capital Recycling Summary	15
Build-To-Suit Projects / Forward Purchase Commitments	16
Leasing Summary	17
Other Revenue Data	19
Portfolio Detail by Asset Class	21
Portfolio Composition	22
Components of Net Asset Value	23
Top Markets	24
Single-Tenant Office Markets	25
Tenant Industry Diversification	26
Top 10 Tenants or Guarantors	27
Lease Rollover Schedules – GAAP Basis	28
Property Leases and Vacancies – Consolidated Portfolio	30
Property Leases and Vacancies – Non-consolidated Portfolio	37
Select Credit Metrics Summary	38
Financial Covenants	39
Mortgages and Notes Payable	40
Debt Maturity Schedule	43
Selected Balance Sheet and Income Statement Account Data	44
Non-GAAP Measures – Definitions	45
Reconciliation of Non-GAAP Measures	47
Investor Information	51

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 equityholders and unitholders – diluted for the year ending December 31, 2017, (3) the successful consummation of any lease, acquisition, build-to-suit, 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 FIRST QUARTER 2017 RESULTS

New York, NY - May 9, 2017 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the first quarter ended March 31, 2017.

First Quarter 2017 Highlights

• Generated Net Income attributable to common shareholders of $40.4 million, or $0.17 per diluted common share.

• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $57.8 million, or $0.23 per diluted common share.

• Acquired two industrial properties for an aggregated cost of $48.3 million and completed the last building of the Lake Jackson, TX build-to-suit project for $70.4 million.

• Invested $17.8 million in on-going build-to-suit projects.

• Sold seven properties for $92.8 million.

• Sold a non-consolidated interest for $6.2 million and collected $8.5 million in full satisfaction of a loan receivable.

• Sold the Kennewick, Washington loan receivable for $80.4 million.

• Completed 207,000 square feet of new leases and lease extensions with overall portfolio 96.2% leased at quarter end.

• Issued 1.6 million common shares at an average gross price of $10.89 per share under its ATM offering program.

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, “During the quarter, property and loan disposition volume totaled $188 million. Consistent with our strategy, these transactions further simplified our portfolio by addressing vacancy, considerably reduced our loan portfolio and contributed to increasing the weighted-average lease term of our office portfolio by almost 6% to 7.6 years. Sale proceeds are expected to be used to acquire industrial assets and to fund office and industrial build-to-suit projects. We continue to be well-positioned to act on investment opportunities as they arise over the balance of the year and expect to be most active in the industrial sector."

3

FINANCIAL RESULTS

Revenues

For the quarter ended March 31, 2017, total gross revenues were $96.1 million, compared with total gross revenues of $111.3 million for the quarter ended March 31, 2016. The decrease was primarily attributable to 2017 and 2016 property sales, particularly the sale of the New York City land investments in 2016, and lease expirations, partially offset by revenue generated from property acquisitions and new leases.

Net Income Attributable to Common Shareholders

For the quarter ended March 31, 2017, net income attributable to common shareholders was $40.4 million, or $0.17 per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2016 of $47.8 million, or $0.20 per diluted share.

Adjusted Company FFO

For the quarter ended March 31, 2017, Lexington generated Adjusted Company FFO of $57.8 million, or $0.23 per diluted share, compared to Adjusted Company FFO for the quarter ended March 31, 2016 of $71.8 million, or $0.29 per diluted share. The decrease was primarily attributable to the items discussed above under "Revenues".

Dividends/Distributions

As previously announced, during the first quarter of 2017, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March 31, 2017 of $ 0.175 per common share/unit, which was paid on April 17, 2017 to common shareholders/unitholders of record as of March 31, 2017. Lexington also declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock, which will be paid on May 15, 2017 to Series C Preferred Shareholders of record as of April 28, 2017.

TRANSACTION ACTIVITY

ACQUISITIONS AND COMPLETED BUILD-TO-SUIT TRANSACTIONS

Tenant	Location	Sq. Ft.		Property Type	Initial Basis ($000)		Estimated Annualized GAAP Rent ($000)		Initial Annualized Cash Rent ($000)		Estimated GAAP  Yield			Initial Cash Yield			Approximate Lease Term (Yrs)
The Dow Chemical Company(1)	Lake Jackson, TX		275,000	Office	$	70,401	$	6,177	$	5,022		9.5	%		7.7	%		20
Amazon.com.ksdc, LLC (Amazon.com Inc.) (2)	New Century, KS		447,000	Industrial		12,056		1,240		1,049		7.1	%		6.0	%		10
Continental Tire the Americas, LLC(3)	Lebanon, IN		742,000	Industrial		36,194		2,281		2,337		6.3	%		6.5	%		7
			1,464,000		$	118,651	$	9,698	$	8,408		8.1	%		7.0	%

(1) Final building completed. Estimated GAAP and cash yields reflect estimated annualized GAAP and initial cash rents for all four buildings of $14.9 million and $12.1 million, respectively, estimated costs of completion of all four buildings and estimated developer partner payout of approximately $8.0 million.

(2) Initial basis excludes a $2.3 million future tenant allowance, which was credited at closing. Property is subject to a ground lease with an initial annual payment of $188 thousand subject to CPI adjustments.

(3) Initial estimated annualized cash rent excludes a year-one partial rent abatement, which was credited at closing.

4

ON-GOING BUILD-TO-SUIT PROJECTS

Location	Sq. Ft.		Property Type	Maximum Commitment/ Estimated Completion Cost ($000)		GAAP Investment Balance as of 3/31/2017 ($000)		Estimated Acquisition/ Completion Date	Estimated Initial GAAP Yield			Estimated Initial Cash Yield			Approximate Lease Term (Yrs)
Charlotte, NC		201,000	Office	$	62,445	$	49,210	2Q 17		9.5	%		8.3	%		15
Opelika, AL		165,000	Industrial		37,000		19,918	2Q 17		9.0	%		7.1	%		25
		366,000		$	99,445	$	69,128			9.3	%		7.8	%

FORWARD PURCHASE COMMITMENTS

Location	Sq. Ft.		Property Type	Maximum Acquisition Cost ($000)	Estimated Acquisition Date		Estimated Initial GAAP Yield	Estimated Initial Cash Yield			Approximate Lease Term (Yrs)
Grand Prairie, TX		215,000	Industrial	$24,725		2Q 17	7.6%		6.2	%		20
Warren, MI(1)		260,000	Industrial	47,000		3Q 17	8.3%		7.3	%		15
		475,000		$71,725			8.0%		6.9	%

(1) Lexington provided a $4.6 million letter of credit to secure its obligation to purchase this property.

PROPERTY DISPOSITIONS

Primary Tenant	Location	Property Type	Gross Disposition Price ($000)		Annualized Net Income(1) ($000)			Annualized NOI(1) ($000)			Month of Disposition
JPMorgan Chase Bank National Association(2)	Lake Mary, FL	Office	$	38,000	$	2,490		$	3,245			January
Puget Consumers Co-op d/b/a PCC Natural Markets	Edmunds, WA	Other		2,900		143			292			January
Carlson Restaurants, Inc.	Carrollton, TX	Office		29,406		1,790			2,161			February
James Hardie Building Products, Inc.	Waxahachie, TX	Industrial		16,420		1,850			3,400			February
Vacant	Garland, TX	Office		1,900		(12	)		(6	)		February
Vacant	Foxboro, MA	Office		4,130		(1,105	)		(415	)		March
			$	92,756	$	5,156		$	8,677

(1) Quarterly period prior to sale annualized.

(2) Includes two properties.

These sales resulted in aggregate gains of $34.2 million and aggregate impairment charges of $2.7 million.

In addition, Lexington sold its 40% tenant-in-common interest in the Oklahoma City, Oklahoma office property for $6.2 million resulting in a gain of $1.5 million.

LOAN INVESTMENT DISPOSITIONS

Lexington collected $8.5 million in full satisfaction of the loan receivable owed from a tenant-in-common of the Oklahoma City, Oklahoma office property. In addition, Lexington sold the Kennewick, Washington loan receivable for $80.4 million, which resulted in a loan loss of $5.3 million.

5

LEASING

During the first quarter of 2017, Lexington executed the following new and extended leases:

	LEASE EXTENSIONS
	Location		Primary Tenant(1)	Prior Term	Lease Expiration Date	Sq. Ft.
	Office/Multi-Tenant
1	Houston	TX	Ricoh USA, Inc	01/2018	01/2019		78,895
2	Philadelphia	PA	N/A	03/2020	03/2021		1,220
2	Total office lease extensions						80,115
	Industrial / Multi-Tenant
1	Antioch	TN	N/A	02/2017	02/2020		474
1	Total industrial lease extensions						474
	Other
1	Staunton	VA	Food Lion, LLC/Delhaize America, Inc	02/2018	02/2023		23,000
2	Lexington	NC	Food Lion, LLC/Delhaize America, Inc	02/2018	02/2023		23,000
2	Total other lease extensions						46,000
5	Total lease extensions						126,589

	NEW LEASES
	Location			Lease Expiration Date	Sq. Ft.
	Office/Multi-Tenant
1	Houston	TX	Saipem America, Inc.	03/2028		54,426
2	Des Moines	IA	Marketlink, Inc.	04/2018		24,385
3-6	Honolulu	HI	N/A	2017-2020		1,403
6	Total new office leases					80,214
6	Total new leases					80,214
11	TOTAL NEW AND EXTENDED LEASES					206,803

(1) Leases greater than 10,000 square feet.

As of March 31, 2017, Lexington's portfolio was 96.2% leased, excluding any property subject to a mortgage loan in default.

BALANCE SHEET/CAPITAL MARKETS

In the first quarter of 2017, Lexington issued 1,593,603 common shares at an average price of $10.89 per share under its ATM offering program.

6

2017 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2017 will be within an expected range of $0.57 to $0.61. Lexington is reaffirming that its Adjusted Company FFO for the year ended December 31, 2017 will be within an expected range of $0.94 to $0.98 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FIRST QUARTER 2017 CONFERENCE CALL

Lexington will host a conference call today, Tuesday, May 9, 2017, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2017. 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 August 9, 2017, 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 10105943. A live webcast of the conference call will be 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) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its portfolio through build-to-suit transactions, sale-leaseback transactions 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, 2017, (3) the successful consummation of any lease, acquisition, build-to-suit, 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.

Cash Rent: Cash Rent is calculated by making adjustments to GAAP rent to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents relating to free rent periods and contractual rent increases. Cash Rent excludes lease termination income. Lexington believes Cash Rent provides a meaningful indication of an investment's ability to fund cash needs.

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

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 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), tenant reimbursements 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 March 31,
	2017			2016
Gross revenues:
Rental	$	88,654		$	103,220
Tenant reimbursements		7,445			8,057
Total gross revenues		96,099			111,277
Expense applicable to revenues:
Depreciation and amortization		(42,891	)		(43,127	)
Property operating		(12,116	)		(12,078	)
General and administrative		(9,457	)		(7,775	)
Non-operating income		2,621			2,867
Interest and amortization expense		(19,725	)		(22,893	)
Debt satisfaction charges, net		—			(162	)
Impairment charges and loan losses		(7,992	)		—
Gains on sales of properties		34,193			17,015
Income before provision for income taxes and equity in earnings of non-consolidated entities		40,732			45,124
Provision for income taxes		(422	)		(413	)
Equity in earnings of non-consolidated entities		1,910			5,742
Net income		42,220			50,453
Less net income attributable to noncontrolling interests		(180	)		(1,010	)
Net income attributable to Lexington Realty Trust shareholders		42,040			49,443
Dividends attributable to preferred shares – Series C		(1,572	)		(1,572	)
Allocation to participating securities		(71	)		(90	)
Net income attributable to common shareholders	$	40,397		$	47,781
Net income attributable to common shareholders - per common share basic	$	0.17		$	0.21
Weighted-average common shares outstanding – basic		237,179,526			232,642,803
Net income attributable to common shareholders - per common share diluted	$	0.17		$	0.20
Weighted-average common shares outstanding – diluted		241,088,049			238,885,171

10

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	March 31, 2017			December 31, 2016
Assets:
Real estate, at cost	$	3,577,239		$	3,533,172
Real estate - intangible assets		574,570			597,294
Investments in real estate under construction		69,128			106,652
		4,220,937			4,237,118
Less: accumulated depreciation and amortization		1,193,639			1,208,792
Real estate, net		3,027,298			3,028,326
Assets held for sale		10,080			23,808
Cash and cash equivalents		177,301			86,637
Restricted cash		63,548			31,142
Investment in and advances to non-consolidated entities		62,963			67,125
Deferred expenses, net		32,431			33,360
Loans receivable, net		—			94,210
Rent receivable – current		6,622			7,516
Rent receivable – deferred		35,811			31,455
Other assets		30,651			37,888
Total assets	$	3,446,705		$	3,441,467
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	730,310		$	738,047
Term loans payable, net		501,348			501,093
Senior notes payable, net		494,571			494,362
Trust preferred securities, net		127,121			127,096
Dividends payable		47,719			47,264
Liabilities held for sale		48			191
Accounts payable and other liabilities		44,326			59,601
Accrued interest payable		11,870			6,704
Deferred revenue - including below market leases, net		41,464			39,895
Prepaid rent		17,934			14,723
Total liabilities		2,016,711			2,028,976
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding		94,016			94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 240,394,082 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively		24			24
Additional paid-in-capital		2,819,058			2,800,736
Accumulated distributions in excess of net income		(1,502,217	)		(1,500,966	)
Accumulated other comprehensive income (loss)		259			(1,033	)
Total shareholders’ equity		1,411,140			1,392,777
Noncontrolling interests		18,854			19,714
Total equity		1,429,994			1,412,491
Total liabilities and equity	$	3,446,705		$	3,441,467

11

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

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

	Three Months Ended March 31,
	2017			2016
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders	$	40,397		$	47,781
Weighted-average number of common shares outstanding - basic		237,179,526			232,642,803
Net income attributable to common shareholders - per common share basic	$	0.17		$	0.21
Diluted:
Net income attributable to common shareholders - basic	$	40,397		$	47,781
Impact of assumed conversions		(19	)		1,046
Net income attributable to common shareholders	$	40,378		$	48,827
Weighted-average common shares outstanding - basic		237,179,526			232,642,803
Effect of dilutive securities:
Share options		136,881			132,191
6.00% Convertible Guaranteed Notes		—			1,941,237
Operating Partnership Units		3,771,642			3,820,192
Non-vested shares		—			348,748
Weighted-average common shares outstanding - diluted		241,088,049			238,885,171
Net income attributable to common shareholders - per common share diluted	$	0.17		$	0.20

12

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION

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

	Three Months Ended March 31,
	2017			2016
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders	$	40,397		$	47,781
Adjustments:
Depreciation and amortization		41,542			41,193
Impairment charges - real estate		2,698			—
Noncontrolling interests - OP units		(19	)		735
Amortization of leasing commissions		1,349			1,934
Joint venture and noncontrolling interest adjustment		340			236
Gains on sales of properties, including non-consolidated entities		(35,645	)		(22,343	)
FFO available to common shareholders and unitholders - basic		50,662			69,536
Preferred dividends		1,572			1,572
Interest and amortization on 6.00% Convertible Guaranteed Notes		—			252
Amount allocated to participating securities		71			90
FFO available to all equityholders and unitholders - diluted		52,305			71,450
Debt satisfaction charges, net		—			162
Loan loss		5,294			—
Transaction costs		186			146
Adjusted Company FFO available to all equityholders and unitholders - diluted		57,785			71,758
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
Straight-line adjustments		(2,909	)		(11,139	)
Lease incentives		431			423
Amortization of above/below market leases		514			456
Lease termination payments, net		235			(2,411	)
Non-cash interest, net		155			(382	)
Non-cash charges, net		2,146			2,207
Tenant improvements		(1,762	)		(720	)
Lease costs		(1,671	)		(1,230	)
Company Funds Available for Distribution	$	54,924		$	58,962
Per Common Share and Unit Amounts
Basic:
FFO	$	0.21		$	0.29
Diluted:
FFO	$	0.21		$	0.29
Adjusted Company FFO	$	0.23		$	0.29
Basic:
Weighted-average common shares outstanding - basic EPS		237,179,526			232,642,803
Operating partnership units(1)		3,771,642			3,820,192
Weighted-average common shares outstanding - basic FFO		240,951,168			236,462,995
Diluted:
Weighted-average common shares outstanding - diluted EPS		241,088,049			238,885,171
Unvested share-based payment awards		691,936			—
Preferred shares - Series C		4,710,570			4,710,570
Weighted-average common shares outstanding - diluted FFO		246,490,555			243,595,741

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

13

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

2017 EARNINGS GUIDANCE

	Twelve Months Ended December 31, 2017
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.57		$	0.61
Depreciation and amortization		0.68			0.68
Impact of capital transactions		(0.31	)		(0.31	)
Estimated Adjusted Company FFO per diluted common share	$	0.94		$	0.98

(1) Assumes all convertible securities are dilutive.

14

LEXINGTON REALTY TRUST

2017 First Quarter Investment / Capital Recycling Summary

PROPERTY INVESTMENTS

	Primary Tenant (Guarantor)	Location		Property Type	Initial Basis ($000)		Initial Estimated Annualized GAAP Rent ($000)		Initial Estimated Annualized Cash Rent ($000) (1)		Initial Estimated GAAP Yield (1)			Initial Estimated Cash Yield (1)			Month Closed	Primary Lease Expiration
1	The Dow Chemical Company(2)	Lake Jackson	TX	Office	$	70,401	$	6,177	$	5,022		9.5	%		7.7	%	Jan	10/2036
2	Amazon.com.ksdc, LLC (Amazon.com, Inc.) (3)	New Century	KS	Industrial		12,056		1,240		1,049		7.1	%		6.0	%	Feb	01/2027
3	Continental Tire the Americas, LLC (4)	Lebanon	IN	Industrial		36,194		2,281		2,337		6.3	%		6.5	%	Feb	01/2024
3	TOTAL PROPERTY INVESTMENTS				$	118,651	$	9,698	$	8,408		8.1	%		7.0	%

CAPITAL RECYCLING

	PROPERTY DISPOSITIONS (5)
	Primary Tenant	Location		Property Type	Gross Sale Price ($000)		Annualized Net Income ($000) (6)			Annualized NOI ($000)(1)(6)			Month of Disposition	% Leased			Gross Sale Price PSF
1-2	JPMorgan Chase Bank, National Association	Lake Mary	FL	Office	$	38,000	$	2,490		$	3,245		Jan		100	%	$	151.35
3	Puget Consumers Co-op d/b/a PCC Natural Markets	Edmonds	WA	Other		2,900		143			292		Jan		100	%		81.79
4	Carlson Restaurants Inc.	Carrollton	TX	Office		29,406		1,790			2,161		Feb		100	%		226.20
5	James Hardie Building Products, Inc.	Waxahachie	TX	Industrial		16,420		1,850			3,400		Feb		100	%		48.93
6	Vacancy	Garland	TX	Office		1,900		(12	)		(6	)	Feb		0	%		6.82
7	Vacancy	Foxboro	MA	Office		4,130		(1,105	)		(415	)	March		0	%		48.91
7	TOTAL PROPERTY DISPOSITIONS				$	92,756	$	5,156		$	8,677

	LOAN INVESTMENT SATISFACTIONS
	Location	Satisfaction ($000)		Basis ($000)		Month
1	Kennewick, WA (7)	$	80,385	$	85,234	February
2	Oklahoma City, OK		8,420		8,420	February
2	TOTAL LOAN INVESTMENT SATISFACTIONS	$	88,805	$	93,654

Footnotes

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

(2) Final building completed. Estimated GAAP and cash yields reflect estimated annualized GAAP and initial cash rents for all four buildings of $14.9 million and $12.1 million, respectively, estimated costs of completion of all four buildings, and estimated developer partner payout of approximately $8.0 million.

(3) Initial basis excludes a $2.3 million future tenant allowance, which was credited at closing. Property subject to a ground lease with an initial annual payment of $188 thousand subject to CPI adjustments.

(4) Initial estimated annualized cash rent excludes a year-one partial rent abatement, which was credited at closing.

(5) In addition, Lexington received $6.2 million for the sale of its interest in an office property in Oklahoma City, OK.

(6) 4Q 2016 annualized.

(7) Assignment.

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LEXINGTON REALTY TRUST

2017 First Quarter Build-to-Suit Projects / Forward Purchase Commitments

BUILD-TO-SUIT PROJECTED CONSTRUCTION FUNDING SCHEDULE ⁽¹⁾

	Location		Sq. Ft	Property Type	Approximate Lease Term (Years)	Maximum Commitment/ Estimated Completion Cost ($000)		Investment balance as of 3/31/17 ($000) (2)		Estimated Cash Investment Next 12 Months ($000)								Estimated Completion/ Acquisition Date	Estimated Initial GAAP Yield (3)			Estimated Initial Cash Yield (3)
										Q2 2017		Q3 2017		Q4 2017		Q1 2018
1	Charlotte	NC	201,000	Office	15	$	62,445	$	49,210	$	12,300	$	-	$	-	$	-	2Q 17		9.5	%		8.3	%
2	Opelika	AL	165,000	Industrial	25		37,000		19,918		16,600		-		-		-	2Q 17		9.0	%		7.1	%
2	TOTAL BUILD-TO-SUIT PROJECTS					$	99,445	$	69,128	$	28,900	$	-	$	-	$	-

FORWARD PURCHASE COMMITMENTS ⁽¹⁾

	Location	Sq. Ft.		Property Type	Approximate Lease Term (Years)	Maximum Acquisition Cost ($000)		Estimated Completion Date	Estimated GAAP Yield (3)			Estimated Initial Cash Yield (3)
1	Grand Prairie, TX		215,000	Industrial	20	$	24,725	2Q 17		7.6	%		6.2	%
2	Warren, MI (4)		260,000	Industrial	15		47,000	3Q 17		8.3	%		7.3	%
						$	71,725
2	TOTAL FORWARD PURCHASE COMMITMENTS

Footnotes

(1) Lexington can give no assurance that any of the build-to-suit projects or other potential investments that are under commitment or contract or in process will be completed or, if completed, will perform to Lexington's expectations.

(2) Investment balance in accordance with GAAP included in investment in real estate under construction. Aggregate equity invested is $70.7 million.

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

(4) Lexington provided a $4.6 million letter of credit to secure its obligation to purchase this property.

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LEXINGTON REALTY TRUST

2017 First Quarter Leasing Summary

LEASE EXTENSIONS

	Tenant	Location		Prior Term	Lease Expiration Date	Sq. Ft.		New GAAP Rent Per Annum ($000)(1)		Prior GAAP Rent Per Annum ($000)		New Cash Rent Per Annum ($000)(1)(3)		Prior Cash Rent Per Annum ($000)(3)
	Office / Multi-Tenant Office
1	Ricoh USA, Inc.	Houston	TX	01/2018	01/2019		78,895	$	1,183	$	1,154	$	1,183	$	1,144
2	Car-Tel Communications, Inc.	Philadelphia	PA	03/2020	03/2021		1,220		62		56		62		56
2	Total office lease extensions						80,115	$	1,245	$	1,210	$	1,245	$	1,200
	Industrial / Multi-Tenant Industrial
1	Amerifleet Transportation, Inc.	Antioch	TN	02/2017	02/2020		474	$	28	$	26	$	28	$	26
1	Total industrial lease extension						474	$	28	$	26	$	28	$	26
				`
	Other
1	Food Lion, LLC / Delhaize America, Inc.	Staunton	VA	02/2018	02/2023		23,000	$	166	$	166	$	166	$	166
2	Food Lion, LLC / Delhaize America, Inc.	Lexington	NC	02/2018	02/2023		23,000		138		138		138		138
2	Total other lease extensions						46,000	$	304	$	304	$	304	$	304
5	TOTAL EXTENDED LEASES						126,589	$	1,577	$	1,540	$	1,577	$	1,530

NEW LEASES

	Tenant (Guarantor)	Location		Lease Expiration Date	Sq. Ft.		New GAAP Rent Per Annum ($000)(1)		New Cash Rent Per Annum ($000)(1)(3)
	Office/Multi-Tenant Office
1	Saipem America, Inc. (Saipem S.p.A.)	Houston	TX	03/2028		54,426	$	699	$	735
2	Marketlink, Inc.	Des Moines	IA	04/2018		24,385		317		317
3-6	Various	Honolulu	HI	2017-2020		1,403		12		12
6	Total office new leases					80,214	$	1,028	$	1,064
6	TOTAL NEW LEASES					80,214	$	1,028	$	1,064
11	TOTAL NEW AND EXTENDED LEASES					206,803	$	2,605	$	2,641

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LEXINGTON REALTY TRUST

2017 First Quarter Leasing Summary (Continued)

LEASE NON-RENEWALS ⁽²⁾

	Tenant (Guarantor)	Location		Lease Expiration Date	Sq. Ft.		YTD 12/31/2016 GAAP Rent ($000) (4)		YTD 12/31/2016 Cash Rent ($000)(3)(4)
	Office
1	Transocean Offshore Deepwater Drilling, Inc. (Transocean Sedco Forex, Inc.) (5)	Houston	TX	01/2017		155,040	$	2,576	$	2,636
2	Roche Diagnostics Operations, Inc.	Fishers	IN	01/2017		193,000		2,935		3,579
2	TOTAL LEASE NON-RENEWALS					348,040	$	5,511	$	6,215

Footnotes

(1) Assumes twelve months rent from the later of 4/1/17 or lease commencement/extension, excluding free rent periods as applicable.

(2) Excludes multi-tenant properties.

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

(4) Excludes termination income.

(5) Lexington re-leased 54,426 square feet through 03/2028.

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LEXINGTON REALTY TRUST

Other Revenue Data

3/31/2017

($000)

Other Revenue Data

	GAAP Rent
Asset Class	Three months ended
	3/31/17 (1)		3/31/17 Percentage			3/31/16 Percentage (5)
Office	$	44,810		52.2	%		49.0	%
Industrial		35,507		41.4	%		33.4	%
Multi-tenant		2,657		3.1	%		1.8	%
Other		2,870		3.3	%		15.8	%
	$	85,844		100.0	%		100.0	%

	GAAP Rent
Credit Ratings (2)	Three months ended
	3/31/17 (1)		3/31/17 Percentage			3/31/16 Percentage
Investment Grade	$	33,736		39.3	%		32.2	%
Non-Investment Grade		13,768		16.0	%		14.1	%
Unrated		38,340		44.7	%		53.7	%
	$	85,844		100.0	%		100.0	%

Weighted-Average Lease Term - Cash Basis	As of 3/31/17	As of 3/31/16
	8.8 years	9.2 years	(3)

Rent Estimates for Current Assets

Year	GAAP (4)		Cash (4)		Difference
2017 - remaining	$	256,013	$	242,828	$	(13,185	)
2018		328,357		316,413		(11,944	)

Footnotes

(1) Three months ended 3/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2017.

(2) Credit ratings are based upon either tenant, guarantor or parent. Generally, multi-tenant assets are included in unrated.

(3) Adjusted to reflect NY land leases to first purchase option date.

(4) Amounts assume (1) lease terms for non-cancellable periods only, (2) no new or renegotiated leases are entered into after 3/31/2017, and (3) no properties are sold or acquired after 3/31/2017.

(5) Houston, TX (Industrial Terminals Management L.L.C.) and Missouri City, TX (Vulcan Construction Materials, LP) reclassed to industrial from "other".

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LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

3/31/2017

($000)

Same-Store NOI ⁽¹⁾

	Three months ended March 31,
	2017			2016
Total Cash Rent	$	76,263		$	77,286
Tenant Reimbursements		6,254			6,647
Property Operating Expenses		(10,527	)		(9,864	)
Same-Store NOI	$	71,990		$	74,069
Change in Same-Store NOI		(2.8	%)

Same-Store Percent Leased (2)	As of 3/31/17			As of 3/31/16
		95.7	%		98.1	%

Lease Escalation Data ⁽³⁾

Footnotes

(1) NOI is on a consolidated cash basis for all consolidated properties except properties acquired and sold in 2017 and 2016 and properties subject to mortgage loans in default at March 31, 2017. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

(2) Excludes properties acquired or sold in 2017 and 2016 and properties subject to mortgage loans in default as of 3/31/2017.

(3) Based on three months consolidated cash rents for single-tenant leases (properties greater than 70% leased) owned as of March 31, 2017. Excludes parking operations and rents from prior tenants.

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LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

3/31/2017

($000, except square footage)

Asset Class	YE 2014			YE 2015			YE 2016			Q1 2017
Office
% of ABR (1)		51.2	%		49.6	%		52.9	%		52.2	%
LTL (5)		31.4	%		23.2	%		26.9	%		33.6	%
STL (6)		68.6	%		76.8	%		73.1	%		66.4	%
Leased		98.6	%		99.6	%		99.6	%		99.6	%
Wtd. Avg. Lease Term (2)		7.4			7.2			7.2			7.6
Mortgage Debt	$	426,635		$	329,696		$	490,948		$	484,815
% Investment Grade (1)		53.3	%		48.0	%		48.1	%		51.3	%
Square Feet		13,264,134			12,847,877			11,569,940			11,115,737
Industrial
% of ABR (1)		25.4	%		30.5	%		39.7	%		41.4	%
LTL (5)		47.9	%		47.4	%		50.8	%		47.7	%
STL (6)		52.1	%		52.6	%		49.2	%		52.3	%
Leased		99.7	%		99.6	%		99.9	%		99.9	%
Wtd. Avg. Lease Term (2)		8.8			10.1			10.4			10.3
Mortgage Debt	$	177,951		$	292,293		$	240,790		$	239,059
% Investment Grade (1)		26.6	%		27.9	%		26.2	%		27.0	%
Square Feet		22,745,140			25,693,585			27,476,653			28,329,380
Multi-Tenant
% of ABR (1)		8.6	%		3.0	%		3.8	%		3.1	%
Leased		53.9	%		44.1	%		43.2	%		45.2	%
Wtd. Avg. Lease Term (2)		6.9			3.4			3.0			3.0
Mortgage Debt	$	116,763		$	14,118		$	10,586		$	10,559
% Investment Grade (1)		19.3	%		36.9	%		14.2	%		22.9	%
Square Feet		2,414,889			2,301,864			2,971,126			2,955,966
Other
% of ABR (1)		14.8	%		16.9	%		3.6	%		3.3	%
LTL (5)		86.8	%		88.0	%		42.7	%		39.4	%
STL (6)		13.2	%		12.0	%		57.3	%		60.6	%
Leased		94.3	%		98.0	%		100.0	%		100.0	%
Wtd. Avg. Lease Term (2)(3)		18.2			18.5			14.6			14.8
Mortgage Debt	$	226,645		$	255,218		$	2,849		$	2,827
% Investment Grade (1)		4.5	%		3.3	%		17.8	%		18.8	%
Square Feet		1,447,724			1,426,697			1,306,578			1,271,119
Loans Receivable	$	105,635		$	95,871		$	94,210		$	-
Construction in progress (4)	$	121,184		$	103,954		$	111,771		$	73,896

Footnotes

(1) Percentage of GAAP rent, excluding termination income, for consolidated properties owned as of each respective period.

(2) Cash basis.

(3) Cash basis adjusted to reflect NY land leases to the first purchase option date, as applicable.

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

(5) Long-term leases ("LTL") are defined as leases having a remaining term of ten years or longer.

(6) Short-term leases ("STL") are defined as leases having a remaining term of less than ten years.

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LEXINGTON REALTY TRUST

Portfolio Composition

3/31/2017

 

 

Footnotes

(1) Based on gross book value of real estate assets and real estate under construction as of 3/31/2017.

(2) Based on respective period GAAP rent, excluding termination income.

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LEXINGTON REALTY TRUST

Components of Net Asset Value

3/31/2017

($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 three month net operating income (NOI) (1)
Office	$	41,878
Industrial		34,481
Multi-Tenant		938
Other		1,807
Total Net Operating Income	$	79,104
Lexington's share of non-consolidated three month NOI (1)
Office	$	104
Other		264
	$	368
Other income
Advisory fees	$	236
In service assets not fairly valued by capitalized NOI method (1)
Wholly-owned assets less than 70% leased	$	103,542
Wholly-owned assets acquired in 2017 (2)	$	48,250
Non-consolidated asset completed in 2016 (3)	$	54,883
Add other assets:
Assets held for sale	$	10,080
Development investment at cost incurred		75,437
Cash and cash equivalents		177,301
Restricted cash		63,548
Accounts receivable, net		6,622
Other assets		30,651
Total other assets	$	363,639
Liabilities:
Corporate level debt (face amount)	$	1,134,120
Mortgages and notes payable (face amount)		737,260
Liabilities held for sale		48
Dividends payable		47,719
Accounts payable, accrued expenses and other liabilities		74,130
Preferred stock, at liquidation value		96,770
Lexington's share of non-consolidated mortgages		8,441
Total deductions	$	2,098,488
Common shares & OP units at 3/31/2017		244,165,724

Footnotes

(1) NOI for the existing property portfolio at March 31, 2017, 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 2017. 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.

(2) Excludes Lake Jackson, TX, which is included in NOI above.

(3) Lexington continues to fund loan completion close-out costs relating to Katy, TX.

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LEXINGTON REALTY TRUST

Top Markets

3/31/2017

	Core Based Statistical Area (2)	Percent of GAAP Rent as of 3/31/17  (1)
1	Houston-Sugar Land-Baytown, TX		10.7	%
2	Dallas-Fort Worth-Arlington, TX		4.8	%
3	Memphis, TN-MS-AR		4.7	%
4	Kansas City, MO-KS		4.2	%
5	New York-Northern New Jersey-Long Island, NY-NJ-PA		3.9	%
6	Kennewick-Pasco-Richland, WA		3.8	%
7	Phoenix-Mesa-Scottsdale, AZ		3.5	%
8	Richmond, VA		3.4	%
9	Detroit-Warren-Livonia, MI		2.9	%
10	Chicago-Naperville-Joliet, IL-IN-WI		2.9	%
11	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD		2.6	%
12	Denver-Aurora, CO		2.3	%
13	Columbus, OH		2.2	%
14	Las Vegas-Paradise, NV		2.0	%
15	San Jose-Sunnyvale-Santa Clara, CA		1.9	%
16	Jackson, MS		1.8	%
17	Atlanta-Sandy Springs-Marietta, GA		1.6	%
18	Washington-Arlington-Alexandria, DC-VA-MD-WV		1.5	%
19	Indianapolis-Carmel, IN		1.4	%
20	Charlotte-Gastonia-Rock Hill, NC-SC		1.4	%
	Total Top Markets (3)		63.3	%

Footnotes

(1) Three months ended 3/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2017.

(2) A Core Based Statistical Area 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.

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

24

LEXINGTON REALTY TRUST

Single-Tenant Office Markets ⁽¹⁾⁽²⁾

3/31/2017

 

Footnotes

(1) Three months ended 3/31/2017 GAAP rent, excluding termination income, recognized for consolidated single-tenant office properties owned as of 3/31/2017.

(2) A Core Based Statistical Area 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.

25

LEXINGTON REALTY TRUST

Tenant Industry Diversification ⁽¹⁾

3/31/2017

 

Footnotes

(1) Three months ended 3/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2017.

26

LEXINGTON REALTY TRUST

Top 10 Tenants or Guarantors

3/31/2017

Top 10 Tenants or Guarantors - GAAP Basis

Tenants or Guarantors	Number of Leases	Sq. Ft. Leased		Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)			GAAP Rent as of 3/31/2017 ($000) (1)		Percent of GAAP Rent as of 3/31/2017 ($000) (1) (2)
The Dow Chemical Company	1		664,100		1.5	%	$	3,481		4.1	%
Preferred Freezer Services of Richland, LLC / Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC	1		456,412		1.0	%		3,283		3.8	%
FedEx Corporation / Federal Express Corporation	2		661,616		1.5	%		3,037		3.5	%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC / Dana Holding Corporation and Dana Limited	7		2,053,359		4.7	%		2,485		2.9	%
United States of America	3		398,214		0.9	%		2,446		2.8	%
Nissan North America, Inc.	2		1,691,049		3.9	%		2,406		2.8	%
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation	2		476,123		1.1	%		1,961		2.3	%
McGuireWoods LLP	1		224,537		0.5	%		1,796		2.1	%
Morgan, Lewis & Bockius LLP	1		289,432		0.7	%		1,754		2.0	%
Industrial Terminals Management, L.L.C. / Maritime Holdings (Delaware) LLC	1		132,449		0.3	%		1,693		2.0	%
	21		7,047,291		16.1	%	$	24,342		28.4	%

Footnotes

(1) Three months ended 3/31/2017 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 3/31/2017.

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

27

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis

3/31/2017

($000)

Year	Number of Leases Expiring		GAAP Rent as of 3/31/2017		Percent of GAAP Rent as of 3/31/2017			Percent of GAAP Rent as of 3/31/2016
2017 - remaining		7	$	2,255		2.7	%		4.3	%
2018		28		5,826		7.1	%		6.1	%
2019		24		7,867		9.5	%		7.7	%
2020		12		3,924		4.8	%		5.8	%
2021		12		5,362		6.5	%		6.0	%
2022		4		2,068		2.5	%		3.3	%
2023		9		3,271		4.0	%		3.0	%
2024		11		4,193		5.1	%		3.1	%
2025		18		7,939		9.6	%		8.4	%
2026		14		4,522		5.5	%		5.0	%
Thereafter		51		35,281		42.8	%		43.5	%
Total (1)		190	$	82,508		100.0	%

 

Footnotes

(1) Total shown may differ from detailed amounts due to rounding and does not include multi-tenant properties, parking operations and lease termination income.

28

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Properties GAAP Basis

3/31/2017

($000)

Year	Number of Leases Expiring		GAAP Rent as of 3/31/2017		Percent of GAAP Rent as of 3/31/2017
2017 - remaining		35	$	2,391		2.8	%
2018		43		6,405		7.6	%
2019		31		8,256		9.7	%
2020		15		3,949		4.7	%
2021		18		6,329		7.5	%
2022		4		2,068		2.4	%
2023		9		3,271		3.9	%
2024		12		4,193		5.0	%
2025		19		8,041		9.5	%
2026		14		4,522		5.3	%
Thereafter		52		35,281		41.7	%
Total (1)		252	$	84,706		100.0	%

 

Footnotes

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

29

LEXINGTON REALTY TRUST 

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2017

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
2017	9/30/2017	9201 East Dry Creek Rd.	Centennial	CO	—	Arrow Electronics, Inc.		128,500		564		709		-	-
	10/31/2017	4455 American Way	Baton Rouge	LA	—	New Cingular Wireless PCS, LLC		70,100		265		275		-	-
		5201 West Barraque St.	Pine Bluff	AR	—	Entergy Services, Inc.		27,189		80		97		-	-
	12/1/2017	800 East Canal St.	Richmond	VA	5	CRG-Richmond Tenant, LLC		42,947		82		82		-	-
2018	2/28/2018	10475 Crosspoint Blvd.	Indianapolis	IN	—	DMC Insurance Inc.		3,764		17		17		-	-
		850-950 Warrenville Rd.	Lisle	IL	—	Flexible Steel Lacing Company, d/b/a Flexco, Inc.		7,535		36		36		-	-
	5/30/2018	13651 McLearen Rd.	Herndon	VA	—	United States of America		159,644		851		935		-	-
	5/31/2018	8900 Freeport Pkwy.	Irving	TX	—	Pacific Union Financial, LLC.		43,396		196		228		-	-
	6/30/2018	100 Barnes Rd.	Wallingford	CT	—	3M Company		44,400		127		132		-	-
		420 Riverport Rd.	Kingsport	TN	—	Kingsport Power Company		42,770		32		78		-	-
	8/31/2018	3500 North Loop Rd.	McDonough	GA	—	Litton Loan Servicing LP		62,218		246		341		-	-
	9/30/2018	1701 Market St.	Philadelphia	PA	—	CBC Restaurant Corp.		8,070		53		56		-	-
	10/31/2018	3943 Denny Ave.	Pascagoula	MS	—	Huntington Ingalls Incorporated		94,841		148		148		-	-
	12/22/2018	5200 Metcalf Ave.	Overland Park	KS	—	Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation		320,198		1,354		1,346		33,279	05/2019
2019	1/31/2019	2999 Southwest 6th St.	Redmond	OR	—	VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.)		77,484		367		446		-	-
		820 Gears Rd.	Houston	TX	—	Ricoh USA, Inc.		78,895		287		283		-	-
	4/1/2019	9201 Stateline Rd.	Kansas City	MO	—	Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation		155,925		607		607		15,886	05/2019
	6/19/2019	3965 Airways Blvd.	Memphis	TN	—	Federal Express Corporation		521,286		1,753		1,764		-	-
	6/30/2019	3265 East Goldstone Dr.	Meridian	ID	—	VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.)		77,484		276		363		8,770	08/2019
	7/15/2019	19019 North 59th Ave.	Glendale	AZ	—	Honeywell International Inc.		252,300		475		484		-
	7/31/2019	500 Jackson St.	Columbus	IN	—	Cummins Inc.		390,100		1,135		1,190		15,550	07/2019
	10/31/2019	10475 Crosspoint Blvd.	Indianapolis	IN	—	John Wiley & Sons, Inc.		123,416		567		579		-	-
		9601 Renner Blvd.	Lenexa	KS	—	VoiceStream PCS II Corporation (T-Mobile USA, Inc.)		77,484		286		372		8,950	12/2019
	12/31/2019	850-950 Warrenville Rd.	Lisle	IL	4	National-Louis University		91,879		375		398		9,228	N/A
2020	2/14/2020	5600 Broken Sound Blvd.	Boca Raton	FL	—	Canon Solutions America, Inc. (Oce - USA Holding, Inc.)		143,290		561		625		19,292	02/2020
	5/31/2020	2401 Cherahala Blvd.	Knoxville	TN	—	AdvancePCS, Inc. / CaremarkPCS, L.L.C.		59,748		193		190		-	-
	6/30/2020	3711 San Gabriel	Mission	TX	—	VoiceStream PCS II Corporation /  T-Mobile West Corporation		75,016		247		240		-	-
	7/31/2020	13775 McLearen Rd.	Herndon	VA	12	Orange Business Services U.S., Inc. (Equant N.V.)		132,617		418		447		-	-
	8/31/2020	133 First Park Dr.	Oakland	ME	—	Omnipoint Holdings, Inc. (T-Mobile USA, Inc.)		78,610		287		368		8,549	10/2020
	9/30/2020	9200 South Park Center Loop	Orlando	FL	4	Zenith Education Group, Inc. (ECMC Group, Inc.)		59,927		284		292		9,309	N/A
	10/31/2020	12209 West Markham St.	Little Rock	AR	—	Entergy Arkansas, Inc.		36,311		59		59		-	-
2021	1/31/2021	1701 Market St.	Philadelphia	PA	—	Morgan, Lewis & Bockius LLP		289,432		1,075		1,103		-	-
	3/31/2021	1701 Market St.	Philadelphia	PA	—	Car-Tel Communications, Inc.		1,220		14		14		-	-
	6/30/2021	1415 Wyckoff Rd.	Wall	NJ	—	New Jersey Natural Gas Company		157,511		943		943		13,392	01/2021
		2050 Roanoke Rd.	Westlake	TX	—	Charles Schwab & Co., Inc.		130,199		250		261		-	-
	8/31/2021	333 Three D Systems Cir.	Rock Hill	SC	—	3D Systems Corporation		80,028		172		177		-	-
	11/30/2021	29 South Jefferson Rd.	Whippany	NJ	—	CAE SimuFlite, Inc. (CAE INC.)		123,734		582		642		13,091	11/2021
	12/31/2021	2800 Waterford Lake Dr.	Midlothian	VA	—	Alstom Power, Inc.		99,057		546		577		-	-
2022	6/30/2022	8555 South River Pkwy.	Tempe	AZ	—	Versum Materials US, LLC		95,133		438		415		-	-
	7/31/2022	1440 E 15th St.	Tucson	AZ	—	CoxCom, LLC		28,591		140		140		-	-
	12/31/2022	231 N. Martingale Rd.	Schaumburg	IL	—	CEC Educational Services, LLC (Career Education Corporation)		317,198		1,155		1,121		-	-

30

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
2023	2/28/2023	1315 West Century Dr.	Louisville	CO	—	Rogue Wave Software, Inc.		20,000		86		73		-	-
	3/31/2023	8900 Freeport Pkwy.	Irving	TX	—	Nissan Motor Acceptance Corporation (Nissan North America, Inc.)		225,049		856		917		-	-
	8/31/2023	400 Butler Farm Rd.	Hampton	VA	7	Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) / Wisconsin Physicians Service Insurance Corp.		100,632		251		259		-	-
	12/14/2023	3333 Coyote Hill Rd.	Palo Alto	CA	—	Xerox Corporation		202,000		1,660		1,768		41,945	12/2023
2024	2/14/2024	1362 Celebration Blvd.	Florence	SC	—	MED3000, Inc.		32,000		143		140		-	-
	5/31/2024	3476 Stateview Blvd.	Fort Mill	SC	—	Wells Fargo Bank, N.A.		169,083		487		469		-	-
		3480 Stateview Blvd.	Fort Mill	SC	—	Wells Fargo Bank, N.A.		169,218		506		470		-	-
	8/31/2024	10475 Crosspoint Blvd.	Indianapolis	IN	—	RGN-Indianapolis I, LLC		14,236		75		75		-	-
	10/31/2024	1409 Centerpoint Blvd.	Knoxville	TN	—	Alstom Power, Inc.		84,404		314		298		-	-
	11/30/2024	6200 Northwest Pkwy.	San Antonio	TX	—	United HealthCare Services, Inc.		142,500		489		512		-	-
	12/31/2024	12000 & 12025 Tech Center Dr.	Livonia	MI	—	Kelsey-Hayes Company (TRW Automotive Inc.)		180,230		423		410		-	-
2025	1/31/2025	1401 Nolan Ryan Expy.	Arlington	TX	—	Triumph Aerostructures, LLC (Triumph Group, Inc.)		111,409		404		427		-	-
	2/28/2025	6555 Sierra Dr.	Irving	TX	—	TXU Energy Retail Company, LLC (Texas Competitive Electric Holding Company, LLC)		247,254		701		762		-	-
		1401 Nolan Ryan Expy.	Arlington	TX	—	Cyient, Inc. (Infotech Enterprise Limited)		13,590		53		54		-	-
	3/14/2025	601 & 701 Experian Pkwy.	Allen	TX	—	Experian Information Solutions, Inc. / TRW, Inc.(Experian Holdings, Inc.)		292,700		742		768		-	-
	5/31/2025	1701 Market St.	Philadelphia	PA	—	TruMark Financial Credit Union		2,641		61		61		-	-
	6/30/2025	2500 Patrick Henry Pkwy.	McDonough	GA	—	Georgia Power Company		111,911		356		338		-	-
	9/30/2025	10001 Richmond Ave.	Houston	TX	—	Schlumberger Holdings Corp.		554,385		1,510		1,356		-	-
	11/30/2025	11707 Miracle Hills Dr.	Omaha	NE	—	Wipro Data Center and Cloud Services, Inc. (Infocrossing, Inc.)		85,200		292		292		-	-
	12/31/2025	2005 East Technology Cir.	Tempe	AZ	—	Wipro Data Center and Cloud Services, Inc. (Infocrossing, Inc.)		60,000		282		282		-	-
		4001 International Pkwy.	Carrollton	TX	—	Motel 6 Operating, LP		138,443		556		548		-	-
2026	3/31/2026	500 Olde Worthington Rd.	Westerville	OH	—	InVentiv Communications, Inc.		97,000		277		285		-	-
	4/30/2026	800 East Canal St.	Richmond	VA	—	Richmond Belly Ventures, LLC (David Duke, Lauren Duke, Terrence Kee, Cara Kee and John Bokel)		2,568		19		19		-	-
	6/30/2026	10419 North 30th St.	Tampa	FL	—	Time Customer Service, Inc. / Time Incorporated		132,981		189		274		-	-
	11/30/2026	500 Kinetic Dr.	Huntington	WV	—	AMZN WVCS LLC (Amazon.com, Inc.)		68,693		317		278		-	-
	12/29/2026	5500 New Albany Rd.	Columbus	OH	—	Evans, Mechwart, Hambleton & Tilton, Inc.		104,807		434		419		-	-
2027	1/31/2027	1701 Market St.	Philadelphia	PA	—	Drybar Holdings LLC		1,975		34		26		-	-
	2/28/2027	800 East Canal St.	Richmond	VA	—	Pacific Summit Energy LLC (Sumitomo Corporation of Americas)		8,503		1		1		-	-
	4/30/2027	1315 West Century Dr.	Louisville	CO	—	Global Healthcare Exchange, Inc. (Global Healthcare Exchange, LLC)		86,877		322		305		-	-
	6/30/2027	3902 Gene Field Rd.	St. Joseph	MO	—	Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation)		98,849		498		465		-	-
	7/6/2027	2221 Schrock Rd.	Columbus	OH	—	MS Consultants, Inc.		42,290		160		152		-	-
	8/7/2027	25 Lakeview Dr.	Jessup	PA	—	TMG Health, Inc.		150,000		625		517		-	-
	10/31/2027	11201 Renner Blvd.	Lenexa	KS	—	United States of America		169,585		1,220		1,091		34,551	11/2027
	11/30/2027	1700 Millrace Dr.	Eugene	OR	10	Oregon Research Institute / Educational Policy Improvement Center		80,011		523		445		-	-
	12/31/2027	333 Mt. Hope Ave.	Rockaway	NJ	—	Atlantic Health System, Inc.		92,326		298		329		-	-
2028	4/30/2028	9655 Maroon Cir.	Englewood	CO	—	TriZetto Corporation		166,912		961		899		-	-
2029	1/31/2029	6226 West Sahara Ave.	Las Vegas	NV	—	Nevada Power Company		282,000		1,063		772		-	-
	3/31/2029	2800 High Meadow Cir.	Auburn Hills	MI	—	Faurecia USA Holdings, Inc.		278,000		887		797		-	-
2030	8/31/2030	800 East Canal St.	Richmond	VA	—	McGuireWoods LLP		224,537		1,796		1,662		57,500	02/2031
	9/30/2030	800 East Canal St.	Richmond	VA	—	CCA Industries, Inc. (The Riverstone Group, LLC),		25,707		173		164		-	-
2031	1/10/2031	810 Gears Rd.	Houston	TX	—	United States of America		68,985		375		356		-	-
	3/1/2031	800 East Canal St.	Richmond	VA	—	Towne Bank		26,047		172		144		-	-
2032	10/31/2032	143 Diamond Ave.	Parachute	CO	—	Encana Oil and Gas (USA) Inc. (Alenco Inc.)		49,024		321		274		-	-
	12/31/2032	3030 North 3rd St.	Phoenix	AZ	—	CopperPoint Mutual Insurance Company		252,400		1,264		1,065		-	-

31

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
2033	11/30/2033	1331 Capitol Ave.	Omaha	NE	—	The Gavilon Group, LLC		127,810		828		735		-	-
2036	10/31/2036	270 Abner Jackson Pkwy.	Lake Jackson	TX	—	The Dow Chemical Company		664,100		3,481		3,032		195,523	10/2036
2088	8/8/2088	800 East Canal St.	Richmond	VA	—	The City of Richmond, Virginia		-		103		103		-	-
N/A	N/A	1701 Market St.	Philadelphia	PA	—	Parking Operations		-		679		679		-	-
	Vacancy	1701 Market St.	Philadelphia	PA	—	(Available for Lease)		699		-		-		-	-
		810 Gears Rd.	Houston	TX	—	(Available for Lease)		9,910		-		-		-	-
		1401 Nolan Ryan Expy.	Arlington	TX	—	(Available for Lease)		36,809		-		-		-	-
OFFICE TOTAL/WEIGHTED AVERAGE						99.6% Leased		11,115,737	$	44,810	$	44,147	$	484,815

32

LEXINGTON REALTY TRUST 

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2017

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq. Ft. Leased or Available (1)		GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2017	4/30/2017	3600 Army Post Rd.	Des Moines	IA	16	HP Enterprise Services, LLC		405,000		513		671		-	-
	9/30/2017	250 Swathmore Ave.	High Point	NC	—	Steelcase Inc.		244,851		272		288		-	-
	12/31/2017	2203 Sherrill Dr.	Statesville	NC	—	Ozburn-Hessey Logistics, LLC (OHH Acquisition Corporation)		639,800		479		525		-	-
2018	6/30/2018	1133 Poplar Creek Rd.	Henderson	NC	—	Staples, Inc.		196,946		215		222		-	-
		1650-1654 Williams Rd.	Columbus	OH	—	ODW Logistics, Inc.		772,450		336		337		-	-
	9/30/2018	50 Tyger River Dr.	Duncan	SC	—	Plastic Omnium Auto Exteriors, LLC		221,833		256		256		-	-
		904 Industrial Rd.	Marshall	MI	—	Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.)		246,508		174		210		-	-
	12/31/2018	120 Southeast Pkwy. Dr.	Franklin	TN	—	Essex Group, Inc. (United Technologies Corporation)		289,330		185		185		-	-
		2935 Van Vactor Dr.	Plymouth	IN	—	Bay Valley Foods, LLC		300,500		210		210		-	-
		749 Southrock Dr.	Rockford	IL	—	Jacobson Warehouse Company, Inc. (Jacobson Distribution Company and Jacobson Transportation Company, Inc.)		150,000		118		133		-	-
2019	10/17/2019	10345 Philipp Pkwy.	Streetsboro	OH	—	L'Oreal USA S/D, Inc. (L’Oreal USA, Inc.)		649,250		653		704		17,216	09/2019
	12/31/2019	191 Arrowhead Dr.	Hebron	OH	—	Owens Corning Insulating Systems, LLC		250,410		140		140		-	-
		200 Arrowhead Dr.	Hebron	OH	—	Owens Corning Insulating Systems, LLC		400,522		224		224		-	-
		2415 US Hwy. 78 East	Moody	AL	—	Michelin North America, Inc.		595,346		352		355		-	-
		3686 South Central Ave.	Rockford	IL	—	Pierce Packaging Co.		93,000		78		78		-	-
2020	1/31/2020	101 Michelin Dr.	Laurens	SC	—	Michelin North America, Inc.		1,164,000		852		852		-	-
	5/31/2020	359 Gateway Dr.	Lavonia	GA	—	TI Group Automotive Systems, LLC (TI Automotive Ltd.)		133,221		238		300		7,267	12/2020
	6/30/2020	3102 Queen Palm Dr.	Tampa	FL	—	Time Customer Service, Inc. (Time Incorporated)		229,605		309		328		-	-
	9/30/2020	3350 Miac Cove Rd.	Memphis	TN	—	Mimeo.com, Inc.		107,400		103		110		-	-
	12/19/2020	1901 Ragu Dr.	Owensboro	KY	6	Unilever Supply Chain, Inc. (Unilever United States, Inc.)		443,380		373		322		-	-
2021	3/31/2021	2455 Premier Row	Orlando	FL	—	Walgreen Co. / Walgreen Eastern Co.		205,016		196		127		-	-
	5/31/2021	291 Park Center Dr.	Winchester	VA	—	Kraft Heinz Foods Company		344,700		355		340		-	-
	9/30/2021	3820 Micro Dr.	Millington	TN	—	Ingram Micro L.P. (Ingram Micro Inc.)		701,819		453		468		-	-
	10/25/2021	6938 Elm Valley Dr.	Kalamazoo	MI	—	Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited)		150,945		437		507		-	-
	11/30/2021	2880 Kenny Biggs Rd.	Lumberton	NC	—	Quickie Manufacturing Corporation		423,280		339		354		-	-
2022	3/31/2022	5417 Campus Dr.	Shreveport	LA	—	The Tire Rack, Inc.		257,849		335		319		-	-
2023	2/28/2023	7670 Hacks Cross Rd.	Olive Branch	MS	—	MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated)		268,104		226		219		-	-
	12/31/2023	1601 Pratt Ave.	Marshall	MI	—	Autocam Corporation		58,707		77		77		-	-
2024	1/31/2024	1285 W. State Road 32	Lebanon	IN	—	Continental Tire the Americas, LLC		741,880		285		148		-	-
	4/30/2024	113 Wells St.	North Berwick	ME	—	United Technologies Corporation		993,685		450		491		2,954	04/2019
	5/31/2024	901 East Bingen Point Way	Bingen	WA	—	The Boeing Company		124,539		659		640		-	-
	10/31/2024	43955 Plymouth Oaks Blvd.	Plymouth	MI	—	Tower Automotive Operations USA I, LLC  / Tower Automotive Products Inc. (Tower Automotive, Inc.)		290,133		362		345		-	-
2025	6/30/2025	10000 Business Blvd.	Dry Ridge	KY	—	Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited)		336,350		336		336		-	-
		301 Bill Bryan Rd.	Hopkinsville	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)		424,904		422		422		-	-
		4010 Airpark Dr.	Owensboro	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)		211,598		302		302		-	-
		730 North Black Branch Rd.	Elizabethtown	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)		167,770		134		134		-	-
		750 North Black Branch Rd.	Elizabethtown	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)		539,592		710		710		-	-
	7/14/2025	590 Ecology Ln.	Chester	SC	—	Boral Stone Products LLC (Boral Limited)		420,597		426		574		7,876	08/2025
	7/31/2025	7005 Cochran Rd.	Glenwillow	OH	—	Royal Appliance Mfg. Co.		458,000		515		525		-	-
	12/31/2025	1700 47th Ave North	Minneapolis	MN	—	Owens Corning Roofing and Asphalt, LLC		18,620		137		137		-	-
2026	3/30/2026	121 Technology Dr.	Durham	NH	15	Heidelberg Americas, Inc. (Heidelberger Druckmaschinen AG) / Goss International Americas, Inc. (Goss International Corporation)		500,500		634		2,233		-	-
	3/31/2026	633 Garrett Pkwy.	Lewisburg	TN	—	Calsonic Kansei North America, Inc.		310,000		322		299		-	-
	6/30/2026	351 Chamber Dr.	Chillicothe	OH	—	The Kitchen Collection, Inc.		475,218		290		275		-	-
	9/30/2026	900 Industrial Blvd.	Crossville	TN	—	Dana Commercial Vehicle Products, LLC		222,200		144		144		-	-
		3931 Lakeview Corporate Dr.	Edwardsville	IL	—	AMAZON.COM.DEDC, LLC (Amazon.com, Inc.)		769,500		676		625		-	-
	10/31/2026	5001 Greenwood Rd.	Shreveport	LA	—	Libbey Glass Inc. (Libbey Inc.)		646,000		541		540		19,000	07/2017
	11/30/2026	250 Rittenhouse Cir.	Bristol	PA	—	Northtec LLC (The Estée Lauder Companies Inc.)		241,977		287		284		-	-

33

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq. Ft. Leased or Available (1)		GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
		736 Addison Rd.	Erwin	NY	—	Corning Property Management Corporation		408,000		333		335		7,334	10/2018
2027	1/31/2027	27200 West 157th St.	New Century	KS	—	Amazon.com.ksdc, LLC (Amazon.com, Inc.)		446,500		138		106		-	-
	2/28/2027	3456 Meyers Ave.	Memphis	TN	—	Sears, Roebuck and Co. / Sears Logistics Services		780,000		424		398		-	-
		554 Nissan Pkwy.	Canton	MS	—	Nissan North America, Inc.		1,466,000		1,550		1,454		-	-
	4/30/2027	2424 Alpine Rd.	Eau Claire	WI	13	Silver Spring Foods, Inc. (Huntsinger Farms, Inc.)		159,000		251		267		-	-
	6/30/2027	1501 Nolan Ryan Expy.	Arlington	TX	—	Arrow Electronics, Inc.		74,739		102		-		-	-
	12/31/2027	10590 Hamilton Ave.	Cincinnati	OH	—	The Hillman Group, Inc.		264,598		203		195		-	-
2028	3/31/2028	29-01-Borden Ave./29-10 Hunters Point Ave.	Long Island City	NY	—	FedEx Ground Package System, Inc. (FedEx Corporation)		140,330		1,284		1,193		45,575	03/2028
	8/31/2028	1420 Greenwood Rd.	McDonough	GA	—	United States Cold Storage, Inc		296,972		542		527		21,837	11/2017
2029	11/24/2029	318 Pappy Dunn Blvd.	Anniston	AL	—	International Automotive Components Group North America, Inc.		276,782		435		405		-	-
2030	3/31/2030	549 Wingo Rd.	Byhalia	MS	—	Asics America Corporation (Asics Corporation)		855,878		1,097		989		-	-
	5/31/2030	3301 Stagecoach Rd. NE	Thomson	GA	—	Hollander Sleep Products, LLC  (Hollander Home Fashions Holdings)		208,000		232		212		-	-
2031	5/31/2031	671 Washburn Switch Rd.	Shelby	NC	—	Clearwater Paper Corporation		673,518		650		591		-	-
	10/31/2031	1020 W. Airport Rd.	Romeoville	IL	—	ARYZTA LLC (ARYZTA AG)		188,166		886		825		-	-
2032	4/30/2032	13930 Pike Rd.	Missouri City	TX	—	Vulcan Construction Materials, LP (Vulcan Materials Company)		-		531		473		-	-
	10/31/2032	27255 SW 95th Ave.	Wilsonville	OR	—	Pacific Foods of Oregon, Inc. d/b/a Pacific Natural Foods		508,277		780		644		-	-
2034	9/30/2034	5625 North Sloan Ln.	North Las Vegas	NV	—	Nicholas and Co., Inc.		180,235		639		557		-	-
	10/31/2034	1001 Innovation Rd.	Rantoul	IL	—	Bell Sports, Inc. (Vista Outdoor Inc.)		813,126		1,049		904		-	-
2035	3/31/2035	13863 Industrial Rd.	Houston	TX	—	Curtis Kelly, Inc. (Spitzer Industries, Inc.)		187,800		609		511		-	-
		7007 F.M. 362 Rd.	Brookshire	TX	—	Orizon Industries, Inc. (Spitzer Industries, Inc.)		262,095		478		401		-	-
	6/30/2035	111 West Oakview Pkwy.	Oak Creek	WI	—	Stella & Chewy's LLC		164,007		525		466		-	-
	8/31/2035	2800 Polar Way	Richland	WA	9	Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)		456,412		3,283		2,752		110,000	01/2026
	10/22/2035	2860 Clark St.	Detroit	MI	—	FCA US LLC (f/k/a Chrysler Group LLC)		189,960		551		551		-	-
2036	6/30/2036	100 Ryobi Drive	Anderson	SC	—	One World Technologies, Inc. (Techtronic Industries Co. Ltd.)		1,327,022		1,112		915		-	-
2038	3/31/2038	13901/14035 Industrial Rd.	Houston	TX	—	Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC)		132,449		1,693		1,403		-	-
N/A	Vacancy	3350 Miac Cove Rd.	Memphis	TN	—	(Available for Lease)		32,679		-		-		-	-
INDUSTRIAL TOTAL/WEIGHTED AVERAGE						99.9% Leased		28,329,380	$	35,507	$	35,099	$	239,059

34

LEXINGTON REALTY TRUST 

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2017

Year of Lease Expiration	Date of Lease  Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft.		Percentage Leased			GAAP   Rent  as of  3/31/2017  ($000) (3)		Cash  Rent  as of  3/31/2017 ($000) (2)		3/31/2017 Debt  Balance  ($000)		Debt Maturity
MULTI-TENANT PROPERTIES (8,14)
		10300 Kincaid Dr.	Fishers	IN	11	Available for lease		193,000		0	%		244		302		-	-
		104 & 110 Front St.	Memphis	TN	4	Available for lease		37,229		0	%		-		-		3,496	N/A
		11511 Luna Rd.	Farmers Branch	TX	—	International Business Machines Corporation		181,072		44	%		264		247		-	-
		1311 Broadfield Blvd.	Houston	TX	11	Saipem America, Inc. (Saipem S.p.A.)		155,040		35	%		215		220		-	-
		13430 North Black Canyon Fwy.	Phoenix	AZ	—	Multi-Tenant		138,940		92	%		579		616		-	-
		1460 Tobias Gadson Blvd.	Charleston	SC	—	Vallen Distribution, Inc.		50,076		41'	%		94		94		7,063	02/2021
		2210 Enterprise Dr.	Florence	SC	—	Caliber Funding, LLC		176,557		21	%		173		188		-	-
		26555 Northwestern Pkwy.	Southfield	MI	18	Available for lease		359,645		0	%		-		-		-	-
		3165 McKelvey Rd.	Bridgeton	MO	—	BJC Health System		51,067		50	%		101		112		-	-
		6050 Dana Way	Antioch	TN	—	Multi-Tenant		674,528		98	%		578		566		-	-
		7111 Crabb Rd.	Temperance	MI	—	Hollingsworth Logistics Group LLC		756,856		38	%		232		218		-	-
		854 Paragon Way	Rock Hill	SC	—	Available for lease		104,497		0	%		-		-		-	-
		King St./1042 Fort St. Mall	Honolulu	HI	—	Multi-Tenant		77,459		53	%		177		177		-	-
MULTI-TENANT TOTAL/WEIGHTED AVERAGE						45.2% Leased		2,955,966				$	2,657	$	2,740	$	10,559

35

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 3/31/2017

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
OTHER PROPERTIES
2018	2/26/2018	4831 Whipple Ave., NW	Canton	OH	—	Best Buy Co., Inc.	46,350		116		116		-		-
	7/1/2018	1053 Mineral Springs Rd.	Paris	TN	—	The Kroger Co.		31,170		42		40		-	-
	9/30/2018	835 Julian Ave.	Thomasville	NC	—	Mighty Dollar, LLC		23,767		21		21		-	-
	10/31/2018	130 Midland Ave.	Port Chester	NY	—	St Anthony Supermarket Corp. (Anthony Pena, Marina Pena, Anthony Corona and Robert Corona)		59,613		246		117		-	-
		5104 North Franklin Rd.	Lawrence	IN	—	Marsh Supermarkets, Inc. / Marsh Supermarkets, LLC		28,721		48		48		-	-
	12/31/2018	1150 West Carl Sandburg Dr.	Galesburg	IL	—	Kmart Stores of Illinois LLC / Kmart Corporation		94,970		82		7		304	07/2018
		12080 Carmel Mountain Rd.	San Diego	CA	—	Sears, Roebuck and Co / Kmart Corporation		107,210		188		8		346	07/2018
		21082 Pioneer Plaza Dr.	Watertown	NY	—	Kmart Corporation		120,727		120		12		510	07/2018
		255 Northgate Dr.	Manteca	CA	—	Kmart Corporation		107,489		139		13		542	07/2018
		5350 Leavitt Rd.	Lorain	OH	—	Kmart Corporation		193,193		183		18		767	07/2018
		97 Seneca Trail	Fairlea	WV	—	Kmart Corporation		90,933		87		8		358	07/2018
2019	3/31/2019	B.E.C. 45th St./Lee Blvd.	Lawton	OK	—	Associated Wholesale Grocers, Inc. / Safeway, Inc.		30,757		47		46		-	-
	6/30/2019	1600 East 23rd St.	Chattanooga	TN	—	BI-LO, LLC / K-VA-T Food Stores, Inc.		42,130		32		32		-	-
	12/31/2019	1066 Main St.	Forest Park	GA	—	Bank of America, N.A. (Bank of America Corporation)		14,859		50		50		-	-
		1698 Mountain Industrial Blvd.	Stone Mountain	GA	—	Bank of America, N.A. (Bank of America Corporation)		5,704		24		24		-	-
		201 West Main St.	Cumming	GA	—	Bank of America, N.A. (Bank of America Corporation)		14,208		50		50		-	-
		2223 North Druid Hills Rd.	Atlanta	GA	—	Bank of America, N.A. (Bank of America Corporation)		6,260		28		28		-	-
		4545 Chamblee – Dunwoody Rd.	Dunwoody	GA	—	Bank of America, N.A. (Bank of America Corporation)		4,565		22		22		-	-
		825 Southway Dr.	Jonesboro	GA	—	Bank of America, N.A. (Bank of America Corporation)		4,894		19		19		-	-
		956 Ponce de Leon Ave.	Atlanta	GA	—	Bank of America, N.A. (Bank of America Corporation)		3,900		20		20		-	-
2023	2/28/2023	291 Talbert Blvd.	Lexington	NC	—	Food Lion, LLC / Delhaize America, Inc.		23,000		35		35		-	-
		733 East Main St.	Jefferson	NC	—	Food Lion, LLC / Delhaize America, Inc.		34,555		39		40		-	-
		2411 West Beverly St.	Staunton	VA	—	Food Lion, LLC / Delhaize America, Inc.		23,000		41		41		-	-
2026	5/31/2026	6910 South Memorial Hwy.	Tulsa	OK	—	Toys “R” Us, Inc. / Toys "R" Us-Delaware, Inc.		43,123		59		59		-	-
2028	11/30/2028	832 N. Westover Blvd .	Albany	GA	—	Gander Mountain Company		45,554		174		158		-	-
2029	1/31/2029	175 Holt Garrison Pkwy.	Danville	VA	—	Home Depot USA, Inc.		-		54		65		-	-
2043	2/28/2043	1237 W. Sherman Ave.	Vineland	NJ	—	HealthSouth Rehabilitation Hospital of South Jersey, LLC (HealthSouth Corporation)		39,287		284		284		-	-
2048	12/31/2048	30 Light St.	Baltimore	MD	—	30 Charm City, LLC		-		75		75		-	-
2055	1/31/2055	499 Derbyshire Dr.	Venice	FL	—	Littlestone Brotherhood LLC		31,180		477		327		-	-
2112	8/31/2112	201-215 N. Charles St.	Baltimore	MD	—	201 NC Leasehold LLC		-		68		68		-	-
OTHER TOTAL/WEIGHTED AVERAGE						100% Leased		1,271,119	$	2,870	$	1,851	$	2,827
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE						96.1% Leased (17)		43,672,202	$	85,844	$	83,837	$	737,260

Footnotes

1 Square footage leased or available.

2 Three months ended 3/31/2017 cash rent. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

3 Three months ended 3/31/2017 GAAP rent, excluding termination income.

4 Mortgage encumbering the property is in default as of 3/31/2017.

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

6 Lexington has a 71.1% interest in this property.

7 Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company) lease for 100,632 square feet expires 12/31/2019; however, 71,073 square feet is then leased to Wisconsin Physicians Service Insurance Corp. through 8/31/2023.

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

9 ConAgra Foods, Inc. provides credit support.

10 Educational Policy Improvement Center lease for 10,791 square feet expires 11/2019; however, space is then leased to Oregon Research Institute through 11/2027.

11 Cash and GAAP rent amounts represent/include prior tenant.

12 21,365 square feet is leased to 7/31/2025.

13 Tenant exercised purchase option for $13.6 million. Property classified as held for sale at 3/31/2017 and sold subsequent to 3/31/2017.

14 The multi-tenanted properties incurred approximately $1.7 million in operating expenses, net for the three months ended 3/31/2017.

15 Heidelberg Americas, Inc. lease expires 3/30/2021; however, new tenant (Goss International Americas, Inc.) lease expires 3/30/2026.

16 24,385 square feet leased to new tenant through 04/2018.

17 Consolidated portfolio is 96.2% leased, excluding properties owned subject to mortgages in default.

18 Property sold subsequent to 3/31/2017.

36

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Non-consolidated Portfolio - 3/31/2017

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft.		LXP % Ownership			GAAP Rent as of 3/31/2017 ($000) (3)		Cash Rent as of 3/31/2017 ($000) (2)		3/31/2017 Debt Balance ($000)		Debt Maturity
NON-CONSOLIDATED PROPERTIES
2028	3/31/2028	100 Gander Way	Palm Beach Gardens	FL	—	Gander Mountain Company		120,000		25	%		763		729		14,088	03/2018
2029	1/31/2029	18839 McKay Blvd.	Humble	TX	—	Triumph Rehabilitation Hospital of Northeast Houston, LLC (RehabCare Group, Inc.)		55,646		15	%		683		623		14,006	05/2017
2033	10/31/2033	607 & 611 Lumsden Professional Ct.	Brandon	FL	1	BluePearl Holdings, LLC		8,500		15	%		50		50		-	-
		4525 Ulmerton Rd.	Clearwater	FL	1	BluePearl Holdings, LLC		3,000		15	%		30		30		-	-
		455 Abernathy Rd.	Atlanta	GA	1	BluePearl Holdings, LLC		32,000		15	%		302		246		-	-
		820 Frontage Rd.	Northfield	IL	1	BluePearl Holdings, LLC		14,000		15	%		116		116		-	-
		4126 Packard Rd.	Ann Arbor	MI	1	BluePearl Holdings, LLC		3,500		15	%		14		14		-	-
		29080 Inkster Rd.	Southfield	MI	1	BluePearl Holdings, LLC		38,000		15	%		318		278		18,791	11/2018
2036	8/31/2036	2203 North Westgreen Blvd.	Katy	TX	—	British Schools of America, LLC		274,000		25	%		1,622		1,622		-	-
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE						100.0% Leased		548,646				$	3,898	$	3,708	$	46,885

Footnotes

1 All mortgage notes are cross-collateralized and cross-defaulted.

2 Three months ended 3/31/2017 cash rent.

3 Three months ended 3/31/2017 GAAP rent, excluding termination income.

37

LEXINGTON REALTY TRUST

Select Credit Metrics Summary ⁽¹⁾

	3/31/2017
Adjusted Company FFO Payout Ratio		76.1	%
Unencumbered Assets		$3.16 billion
Unencumbered NOI		71.8	%
(Debt + Preferred) / Gross Assets		41.8	%
Debt/Gross Assets		39.7	%
Secured Debt / Gross Assets		15.7	%
Net Debt / Adjusted EBITDA		4.9	x
(Net Debt + Preferred) / Adjusted EBITDA		5.2	x
Credit Facilities Availability (2)		$395.4 million
Development / Gross Assets		1.6	%

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.

38

LEXINGTON REALTY TRUST

FINANCIAL COVENANTS ⁽¹⁾

Corporate Level Debt

Bank Loans:	Must be:	3/31/2017
Maximum Leverage	< 60%	41.1%
Fixed Charge Coverage	> 1.5x	2.7x
Recourse Secured Indebtedness Ratio	< 10% cap value	0.0%
Secured Indebtedness Ratio	< 45%	18.1%
Unsecured Debt Service Coverage	> 2.0x	5.1x
Unencumbered Leverage	< 60%	30.9%
Bonds:
Debt to Total Assets	< 60%	40.4%
Secured Debt to Total Assets	< 40%	15.9%
Debt Service Coverage	> 1.5x	4.1x
Unencumbered Assets to Unsecured Debt	> 150%	307.4%

Footnotes

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

39

LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

3/31/2017

Property	Footnotes	Debt Balance ($000)		Interest Rate (%)			Maturity (a)	Current Estimated Annual Debt Service ($000) (c)		Balloon Payment ($000)
Mortgages with Balloons
Lisle, IL	(b)	$	9,228		6.500	%	N/A	$	-	$	9,228
Memphis, TN	(b)		3,496		5.710	%	N/A		-		3,496
Orlando, FL	(b)		9,309		5.722	%	N/A		-		9,309
Shreveport, LA	(j)		19,000		5.690	%	07/2017		366		19,000
McDonough, GA			21,837		6.110	%	11/2017		1,091		21,651
Erwin, NY			7,334		5.910	%	10/2018		728		6,637
Overland Park, KS			33,279		5.891	%	05/2019		2,657		31,812
Kansas City, MO			15,886		5.883	%	05/2019		1,268		15,179
Columbus, IN			15,550		2.210	%	07/2019		4,757		4,993
Meridian, ID			8,770		6.010	%	08/2019		753		7,675
Streetsboro, OH			17,216		5.749	%	09/2019		1,344		16,338
Lenexa, KS			8,950		6.270	%	12/2019		774		7,770
Boca Raton, FL			19,292		6.470	%	02/2020		1,542		18,414
Oakland, ME			8,549		5.930	%	10/2020		750		7,660
Lavonia, GA			7,267		5.460	%	12/2020		741		5,895
Charleston, SC			7,063		5.850	%	02/2021		520		6,632
Whippany, NJ			13,091		6.298	%	11/2021		1,344		10,400
Chester, SC			7,876		5.380	%	08/2025		1,144		362
Richland, WA			110,000		4.000	%	01/2026		4,400		99,492
Lenexa, KS			34,551		3.700	%	11/2027		2,971		10,000
Richmond, VA			57,500		5.191	%	02/2031		3,026		53,176
Lake Jackson, TX			195,523		4.040	%	10/2036		11,985		11,305
Subtotal/Wtg. Avg./Years Remaining (i)		$	630,567		4.738	%	10.2	$	42,161	$	376,424
Full Amortizing Mortgages
Lorain, OH			767		7.750	%	07/2018		545		-
Manteca, CA			542		7.750	%	07/2018		385		-
Watertown, NY			510		7.750	%	07/2018		362		-
Fairlea, WV			358		7.750	%	07/2018		254		-
San Diego, CA			346		7.750	%	07/2018		245		-
Galesburg, IL			304		7.750	%	07/2018		216		-
North Berwick, ME			2,954		3.560	%	04/2019		1,532		-
Wall, NJ			13,392		6.250	%	01/2021		3,774		-
Palo Alto, CA			41,945		3.970	%	12/2023		7,059		-
Long Island City, NY			45,575		3.500	%	03/2028		4,538		-
Subtotal/Wtg. Avg./Years Remaining (i)		$	106,693		4.144	%	7.8	$	18,910	$	-
Subtotal/Wtg. Avg./Years Remaining (i)		$	737,260		4.652	%	9.9	$	61,071	$	376,424

40

LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

3/31/2017

Property	Footnotes	Debt Balance ($000)		Interest Rate (%)			Maturity (a)	Current Estimated Annual Debt Service ($000) (c)		Balloon Payment ($000)
Corporate (f)
Term Loan	(g)	$	250,000		2.192	%	08/2020	$	5,556	$	250,000
Term Loan	(h)		255,000		2.523	%	01/2021		6,523		255,000
Senior Notes			250,000		4.250	%	06/2023		10,625		250,000
Senior Notes			250,000		4.400	%	06/2024		11,000		250,000
Trust Preferred Notes	(d)		129,120		6.804	%	04/2037		8,785		129,120
Subtotal/Wtg. Avg./Years Remaining (i)		$	1,134,120		3.732	%	6.8	$	42,489	$	1,134,120
Total/Wtg. Avg./Years Remaining (i)	(e)	$	1,871,380		4.094	%	8.0	$	103,560	$	1,510,544

Footnotes

(a) Subtotal and total based on weighted-average term to maturity shown in years based on debt balance.

(b) Loan is in default as of March 31, 2017.

(c) Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months.

(d) Rate fixed through 04/2017; thereafter, three month LIBOR plus 170 bps.

(e) See reconciliations of non-GAAP measures in this document.

(f) Unsecured.

(g) Rate ranges from LIBOR plus 0.90% to 1.75%. LIBOR rate fixed at 1.09% through February 2018 via interest rate swap agreements.

(h) Rate ranges from LIBOR plus 0.90% to 1.75%. LIBOR rate fixed at 1.42% through January 2019 via interest rate swap agreements.

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

(j) Loan satisfied subsequent to March 31, 2017.

41

LEXINGTON REALTY TRUST

Non- Consolidated Investments: Mortgages & Notes Payable

3/31/2017

Joint Venture	Debt Balance ($000)		Interest Rate (%)			Maturity	Current Estimated Annual Debt Service ($000) (3)		Balloon Payment ($000)
Rehab Humble Lessee (1)	$	14,006		4.700	%	05/2017	$	134	$	13,982
Gan Palm Beach Lessee (2)		14,088		3.700	%	03/2018		842		13,768
BP Lessee (1)		18,791		4.010	%	11/2018		764		18,791
Total/Wtg. Avg. (1)/Years Remaining (2)	$	46,885		4.123	%	0.9	$	1,740	$	46,541

Joint Venture	Debt Balance ($000)		Interest Rate (%)			Maturity	Current Estimated Annual Debt Service ($000) (3)		Balloon Payment ($000)
BS Lessee (4)	$	47,303		7.500	%	09/2031	$	5,331	$	-

Footnotes

(1) Lexington has a 15% equity interest in the joint venture.

(2) Lexington has a 25% equity interest in the joint venture.

(3) Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months.

(4) Lexington has a 25% equity interest in the joint venture. Lexington is the lender of this mortgage pursuant to the joint venture agreement and is committed to fund up to $56.7 million.

42

LEXINGTON REALTY TRUST

Debt Maturity Schedule

3/31/2017

($000)

Consolidated Properties
Year	Mortgage Scheduled  Amortization		Mortgage Balloon Payments		Corporate Debt
2017-remaining	$	22,134	$	62,684	$	-
2018		30,077		6,637		-
2019		26,681		83,767		-
2020		23,178		31,969		250,000
2021		23,433		17,032		255,000
	$	125,503	$	202,089	$	505,000

 

Footnotes

(1) Percentage denotes weighted-average interest rate.

43

LEXINGTON REALTY TRUST

Selected Balance Sheet and Income Statement Account Data

3/31/2017

($000)

Balance Sheet
Other assets	$	30,651
The components of other assets are:
Deposits	$	937
Equipment		601
Prepaids		3,517
Other receivables		890
Deferred lease incentives		16,089
Lake Jackson developer escrows		7,942
Interest rate swap derivative asset		550
Other		125
Accounts payable and other liabilities
The components of accounts payable and other liabilities are:	$	44,326
Accounts payable and accrued expenses	$	9,993
CIP accruals and other		6,017
Taxes		657
Deferred lease and loan costs		9,453
Deposits		1,187
Escrows		1,030
Transaction / build-to-suit costs		15,698
Interest rate swap derivative liability		291
Income Statement - Three months ended March 31, 2017
Non-cash interest expense, net	$	208

44

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 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.

Cash Rent: Cash Rent is calculated by making adjustments to GAAP rent 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 Rent excludes lease termination income. Lexington believes Cash 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 (or loss) computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for non-consolidated partnerships and joint ventures.” NAREIT clarified its computation of FFO to exclude impairment charges on depreciable real estate owned directly or indirectly. FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

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 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.

45

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), tenant reimbursements 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 and certain other properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, 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.

46

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES

($000)

	Three months ended March 31, 2017
Cash Rent Reconciliation:
Rental revenue as reported	$	88,654
Rental revenue from sold properties		(881	)
Lease termination income		(1,929	)
GAAP rent per supplement		85,844
GAAP rent adjustments: (1)
Straight-line adjustments		(2,923	)
Lease incentives		402
Amortization of above/below market leases		514
Cash rent per supplement	$	83,837

Consolidated debt reconciliation March 31, 2017:

	GAAP Balance		Deferred Loan Costs, net		Discounts		Gross Balance
Mortgages and notes payable (2)	$	730,310	$	6,950	$	-	$	737,260
Term loans payable (3)		501,348		3,652		-		505,000
Senior notes payable(3)		494,571		3,717		1,712		500,000
Trust preferred securities (3)		127,121		1,999		-		129,120
Consolidated debt	$	1,853,350	$	16,318	$	1,712	$	1,871,380

Footnotes

(1) Individual items are adjusted for sold properties, which were previously reflected in the reconciliation.

(2) Secured.

(3) Unsecured.

47

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Same-Store NOI Reconciliation:

	Three months ended March 31,
	2017			2016
Net Income	$	42,220		$	50,453
Interest and amortization expense		19,725			22,893
Provision for income taxes		422			413
Depreciation and amortization		42,891			43,127
General and administrative		9,457			7,775
Transaction costs		186			146
Non-operating income		(2,621	)		(2,867	)
Gains on sales of properties		(34,193	)		(17,015	)
Impairment charges and loan loss		7,992			-
Debt satisfaction charges, net		-			162
Equity in earnings of non-consolidated entities		(1,910	)		(5,742	)
Lease termination income		(1,929	)		(2,411	)
Straight-line adjustments		(2,909	)		(11,139	)
Lease incentives		431			423
Amortization of above/below market leases		514			456
Net Operating Income - ("NOI")		80,276			86,674
Less NOI:
Disposed of properties		(642	)		(11,208	)
Acquired properties		(6,945	)		(520	)
Properties in default		(699	)		(877	)
Same-Store NOI	$	71,990		$	74,069

NOI for NAV:

	Three months
	March 31, 2017
NOI per above	$	80,276
Less NOI:
Disposed of properties		(642	)
Assets held for sale		(267	)
Assets acquired in 2017 (1)		(237	)
Assets less than 70% leased / Other		(26	)
NOI for NAV	$	79,104

Footnotes

(1) Excludes Lake Jackson, TX.

48

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation to Adjusted EBITDA:

	Three months ended
	3/31/2017			12/31/2016			9/30/2016			6/30/2016			Trailing 12 Months
Net income (loss) attributable to Lexington Realty Trust shareholders	$	42,040		$	16,001		$	(25,352	)	$	55,532		$	88,221
Interest and amortization expense		19,725			19,459			23,001			22,679			84,864
Provision for income taxes		422			340			462			224			1,448
Depreciation and amortization		42,891			41,361			40,288			41,272			165,812
Straight-line adjustments		(2,909	)		(2,051	)		(11,317	)		(13,241	)		(29,518	)
Lease incentives		431			417			414			419			1,681
Amortization of above/below market leases		514			530			572			499			2,115
Gains on sales of properties		(34,193	)		(23,097	)		(16,072	)		(25,326	)		(98,688	)
Impairment charges and loan loss		7,992			24,332			72,890			3,014			108,228
Debt satisfaction (gains) charges, net		-			157			(2,538	)		3,194			813
Non-cash charges, net		2,146			2,092			2,296			2,403			8,937
Pro-rata share adjustments:
Non-consolidated entities adjustment		(1,066	)		(319	)		360			254			(771	)
Noncontrolling interests adjustment		(13	)		698			(2,495	)		941			(869	)
Adjusted EBITDA	$	77,980		$	79,920		$	82,509		$	91,864		$	332,273

49

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation of Select Credit Metrics:

Adjusted Company FFO Payout:	Three months ended March 31, 2017			(Debt + Preferred) / Gross Assets:	Three months ended March 31, 2017
Common share dividends per share	$	0.175		Consolidated debt	$	1,853,350
Adjusted Company FFO per diluted share		0.23		Preferred shares liquidation preference		96,770
Adjusted Company FFO payout ratio		76.1	%	Debt and preferred	$	1,950,120
Unencumbered Assets:				Total assets	$	3,446,705
Real estate, at cost	$	4,220,937		Plus depreciation and amortization:
held for sale real estate, at cost		11,600		Real estate		1,193,639
less encumbered real estate, at cost		(1,070,403	)	Deferred lease costs		25,497
Unencumbered assets	$	3,162,134
				Gross assets	$	4,665,841
Unencumbered NOI:
NOI	$	80,276		(Debt + Preferred) / Gross Assets		41.8	%
Disposed of properties NOI		(642	)
Adjusted NOI		79,634		Debt / Gross Assets:
less encumbered adjusted NOI		(22,471	)	Consolidated debt	$	1,853,350
Unencumbered adjusted NOI	$	57,163
Unencumbered NOI %		71.8	%	Gross assets	$	4,665,841
Net Debt / Adjusted EBITDA:				Debt / Gross assets		39.7	%
Adjusted EBITDA	$	332,273
				Secured Debt / Gross Assets:
Consolidated debt	$	1,853,350		Mortgages and notes payable	$	730,310
less cash and cash equivalents (1)		(222,341	)
Net debt	$	1,631,009		Gross assets	$	4,665,841
Net debt / Adjusted EBITDA		4.9	x	Secured Debt / Gross Assets		15.7	%
(Net Debt + Preferred) / Adjusted EBITDA:
Adjusted EBITDA	$	332,273		Development / Gross Assets:
				Investment in real estate under construction	$	69,128
Net debt	$	1,631,009		Construction in progress		4,768
Preferred shares liquidation preference		96,770		Development	$	73,896
Net debt + preferred	$	1,727,779
				Gross assets	$	4,665,841
(Net Debt + Preferred) / Adjusted EBITDA		5.2	x
				Development / Gross Assets		1.6	%

Footnotes

(1) Includes funds held at 1031 exchange intermediaries.

50

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
Barclays Capital		Ladenburg Thalmann & Co., Inc.
Ross L. Smotrich	(212) 526-2306	Daniel P. Donlan	(212) 409-2056
Evercore Partners		Stifel Nicolaus
Sheila K. McGrath	(212) 497-0882	John W. Guinee	(443) 224-1307
J.P. Morgan Chase		Wells Fargo Securities, LLC
Anthony Paolone	(212) 622-6682	Todd J. Stender	(562) 637-1371
Jeffries & Company, Inc.
Jon Peterson	(212) 284-1705

51

 

EX-99.2

EXHIBIT 99.2

Lexington Realty Trust – UNEDITED TRANSCRIPT

Q1 2017 Earnings Call

Company Participants
T. Wilson Eglin, Chief Executive Officer and President
Patrick Carroll, Chief Financial Officer
Heather Gentry, Senior Vice President of Investor Relations

Operator:

Good morning, and welcome to Lexington Realty Trust First Quarter 2017 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Ms. Heather Gentry, Investor Relations. Please go ahead.

Heather Gentry:

Thank you, operator. Welcome to the Lexington Realty Trust First Quarter 2017 Conference Call. The earnings release was distributed this morning, and both the release and supplemental disclosure package that detailed this quarter's results 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 Realty Trust files with the SEC from time to time, could cause less intense action results to differ materially from those expressed or implied by such statements. Except as required by law, Lexington does not undertake our duty to update any forward-looking statements.

In the earnings press release and 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 equity holders 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.

Joining me on today's call to discuss Lexington's first quarter 2017 results are Will Eglin, Chief Executive Officer; Pat Carroll, Chief Financial Officer; and other as active members of management. I will turn the call over to Will.

T. Wilson Eglin:

Thanks, Heather, and good morning, everyone. Welcome to our First Quarter 2017 Earnings Call and Webcast. Our first quarter was fairly active, particularly on the disposition front with the bulk of disposition and acquisition activity occurring in the first 2 months of the year. We generated net income of $0.17 per diluted common share and adjusted company FFO of $0.23 per diluted common share for the quarter. We see volume was relatively light given our proactive work last year on 2017 lease expirations and our expectations in much of our vacancy will be resolved through dispositions we're currently working on.

I believe our balance sheet is in the best shape it has ever been with leverage at 4.9x net debt to adjusted EBITDA and weighted-average debt maturity of 8 years. With our balance sheet flexibility and cash on hand, we're well-positioned to fund our investment commitments and to take advantage of new opportunities.

Dispositions volume was heavy in the first quarter as we completed nearly $100 million of our announced 2017 property disposition plan. This included $93 million of wholly owned asset sold at GAAP and cash cap rates of 9.1% and 9.4% respectively with the balance from a nonconsolidated property. Our continued focus is on portfolio simplification through the sale of vacancy, certain short-term leased office properties and assets we consider to be noncore to our business.

All 8 properties we sold during the quarter fell into 1 of these 3 categories. We further simplified the portfolio during the quarter through the sale of our Kennewick, Washington mortgage loan for approximately $80 million, which generated an attractive return and considerably reduced our loan portfolio. While there is still work to be done, we have made meaningful improvements to our portfolio and are moving towards a better revenue balance between single-tenant office and industrial assets with less of our revenue coming from multitenant and other property types.

Turning to investments. During the quarter, we invested approximately $18 million in ongoing build-to-suit projects and completed the last building in our Dow Chemical office of build-to-suit in Lake Jackson, Texas for $70 million. Notable purchases included the acquisition of 2 industrial assets totaling 1.2 million square feet during the quarter for approximately $48 million, both of which we talked about on our fourth quarter earnings call. As a reminder, this included a distribution facility in the submarket of Kansas City, Kansas which to Amazon for 10 years and a distribution facility in the submarket of Indianapolis leased for 7 years to Continental Tire. We currently have investment commitments of approximately $205 million at average GAAP and cash cap rate of 8.5% and 7.4% respectively and a large pipeline of industrial and office opportunities under review.

Subsequent to quarter end, rent commenced on our 2 build-to-suit projects in Charlotte, North Carolina and Oblique, Alabama, both projects are expected to be completed in the second quarter of 2017. Investment product is plentiful, however, there has been a little change in pricing due to steady investor demand, particularly in the industrial sector supported by aggressive lending and a rally in the treasury market. High quality industrial facilities located in secondary markets remain our primary acquisition focus. And while we are mindful of competitive bidding environment we're finding attractive opportunities mainly in the 7 to 10-year leased industrial purchase market. The majority of higher-yielding investments we're evaluating are in the 15- to 20-year leased build-to-suit market, including both office and industrial properties. Our intent is to still be a net acquirer in 2017, although this will be largely dependent on market conditions and pricing.

2

Moving on to occupancy. We leased approximately 207,000 square feet and sold 363,000 square feet of vacancy during the first quarter. Renewals on GAAP and cash rents increased approximately 2.4% and 3.1% respectively. Occupancy edged up slightly to 96.2% at quarter end compared to the fourth quarter of 2016. And our weighted average lease term was 8.8 years at quarter end. Current negotiations that are close to completion represent 35% of our expiring 2017 revenue, including extensions with both Arrow Electronics and New Cingular, which comprise approximately 200,000 square feet.

During the quarter, we signed 5-year lease extensions for aggregate 46,000 square feet with Food Line in both Stone, Virginia and Lexington, North Carolina. Both of these properties are currently being marketed for sale. We also leased approximately 54,000 square feet or about 35% of our Houston, Texas property in which Transocean was the previous tenant. Our other properties with moved out this year in Fishers, Indiana, Des Moines, Iowa and High Point, North Carolina are all being marketed for sale or lease. We're encouraged by our sales and leasing prospects for these and other vacancies with continued progress expected in the coming months. Overall, vacant square footage to lease or sell represented approximately 4% of the overall portfolio at quarter end. And we expect to resolve more of this vacancy through dispositions compared to re-tenanting.

Overall our tenant credit quality improved considerably in the past year with investment grade tenancy accounting for 39% of our revenue in the first quarter compared to 32% this same time last year. Given recent news and what we believe will be containing problems in the retail sector, I want to briefly touch on our retail exposure. Retail is a very small component of our overall portfolio and continues to shrink, representing just about 1% of our current net operating income. We have minimal exposure to Gander Mountain, who filed for bankruptcy during the quarter and intends to close 32 of their stores. We currently own a 46,000 square foot space in Albany, Georgia and 25% of the joint venture that owns 120,000 square foot property in Palm Beach Gardens, Florida, neither of which are on Gander's list of announced store closings. Together they generate $1.3 million in annual funds from operations, which is about $0.005 per share. While we cannot be certain of the final outcome, the impact is not expected to be material to our operations. And the acquirer of Gander will most likely want to continue to operate these stores, although our rent concession should be expected.

In summary, during the quarter, we completed approximately 1/3 of our announced property disposition plan and close to 1/2 when including the loans receivable. Our heavy disposition volume and cash position weighted on first quarter earnings, although I believe this pressure should ease over the rest of the year as new investments come online, capital is deployed and vacancy is addressed.

We are maintaining our 2017 adjusted company FFO guidance in the range of $0.94 to $0.98 per diluted common share. Investment activity for the balance of the year will be focused primarily on industrial purchases and build-to-suit. And we're reviewing some office build-to-suit investments, although activity in the office sector is slow compared to industrial. We believe a solid and growing investor pipeline combined with a strong cash position and available credit, if needed, positions us well as we seek to build our portfolio. As I mentioned earlier, we have done quite a bit of work to improve the balance sheet and overall quality of our portfolio.

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As we look ahead to the next 12 to 24 months, we expect our portfolio transformation will be complete as our concentrated period of elevated office lease rollover will end by mid-2019. The multi-year disposition program should be substantially completed this year with a relatively modest amount left to sell. And new assets will continue to be added to the portfolio over this same time period. These factors taken together should meaningfully improve our prospects for long-term growth and the better evaluation.

With that, I will turn the call over to Pat who will review our financial results in more detail.

Patrick Carroll:

Thanks, Will. Good morning, everyone. Gross revenues in the first quarter were $96 million compared with the gross revenues of $111 million for the same time period in 2016. The year-over-year change is primarily attributable to 2016 and 2017 property sales, particularly the New York City land investments that we sold in 2016, offset by acquisitions and new leases.

Net income attributable to common shareholders for the first quarter was $0.17 per diluted common share worth $40 million compared to net income attributable to common shareholders of $0.20 per diluted common share of $48 million for the same time period in 2016. We recognize $34 million of gains during the quarter related to property sales and $8 million of impairment charges, which were primarily related to a $5.3 million loan loss on the sale of our Kennewick mortgage receivable. As Will mentioned earlier, the loan was sold for approximately $80 million and generated an IRR in excess of 7% at Lexington during the 3-year plus hold period. Our 2017 guidance for net income attributable to common shareholders is now expected to be within the range of $0.57 to $0.61 per fully diluted common share.

Adjusted company FFO for the quarter was approximately $58 million or $0.23 per diluted common share compared to $72 million or $0.29 per diluted common share for the same time period in 2016. The decrease was a result of 2016 and 2017 property sales, particularly the New York City land investments.

GAAP rents, we're in excess of cash rents for the first quarter by almost $2 million. This relates primarily to the straight lining of tenant rents. On Page 19 of the supplement we've included both estimates of GAAP and cash rents for the remainder of 2017 and '18 for leases in place at March 31, 2017. This does not assume any tenant releasing of vacant space, tenants lease extensions on property with scheduled lease expirations, property sales or a property acquisitions.

Same-store net operating income was $72 million for the quarter compared to $74 million for the same time period in 2016. And same-store percentage lease was 95.7% for the quarter compared to 98.1% for the same time period in 2016. These decreases are mostly the result of 3 2016 and 2 2017 office move-out and a tenant liquidation in Roche Hill, South Carolina. Our expectation is that much of this vacancy will be addressed this year through sales. Property operating expenses for the first quarter were in line at $12 million compared to the same time period in 2016.

G&A expenses were $9.5 million for the first quarter. The increase compared to the first quarter of 2016 is primarily attributable to $400,000 in expenses relating to the collection of a loan receivable and $1 million in cost associated with the guarantee claim by a mortgage lender. Please note that we do not add back these cost to net income when calculating adjusted company FFO. We expect G&A to be approximately $24 million to $25 million in the aggregate over the next 3 quarters.

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Now I'll talk about the balance sheet. We have taken strides to improve our balance sheet and the work has paid off. At the end of the first quarter, we had $241 million of cash on the balance sheet including cash classified as restricted. The cash balance is primarily result of the timing of property sales while the restricted cash balance primarily relates to money held by 1031 exchange intermediaries and lender escrows including to fund the closeout course of the outcome of the build-to-suit project. Our intent is to utilize the cash to fund current investment commitments and new investments. We had $1.9 billion of consolidated debt outstanding at the end of the first quarter, which had a weighted-average interest rate of 4.1% of which most is currently at fixed rates, including debt coverage currently by industrial swap agreements.

Our $129.1 million of 6.8% trust preferred securities converted on May 1 to attracted rate of 3-month LIBOR plus a 170 basis points, which is currently 2.87% and is expected to reduce our annual debt service by approximately $5 million based on this rate.

Fixed charge coverage at the end of the quarter was approximately 2.7x and leverage for the first quarter decreased further to 4.9x net debt to adjusted EBITDA compared to 5.2x at the end of the fourth quarter of 2016. As of March 31, 2017, we've approximately $63 million of nonrecourse balloon mortgage payments with an average interest rate of 6% coming due in 2017, of which $22 million represents mortgages currently in default.

We retired $19 million of secured debt subsequent to the first quarter. And our unencumbered asset base was approximately $3.2 billion representing approximately 72% of our NOI as of March 31, 2017, giving us significant financial flexibility.

With the exception of $4.6 million letter of credit to secure obligation to purchase a new industrial commitment, we have no other borrowings outstanding on our $400 million revolving credit facility.

We have paid approximately $3.4 million in lease cost and tenant improvements during the quarter. Our TIs and leasing budget for 2017 could be up to $26 million depending on leasing and releasing volume.

Now I'll turn the call back over to Will.

T. Wilson Eglin:

Thanks, Pat. Operator, I have no further comments at this time. So we're ready for you to conduct a question-and-answer portion of the call.

Operator:

(Operator Instructions) The first question comes from Craig Mailman of KeyBanc Capital Markets.

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Craig Allen Mailman:

Will, I know you guys have fund your net acquisition guidance for the year. But your commentary seems like maybe on the margin, you're less confident that this could happen because the environment is holding up so well? Is it kind of fair way to look at it?

T. Wilson Eglin:

Well, right now our outlook for volume in total on new investment activity is about $300 million. I think it will slowly increase over the balance of the year. So we're optimistic that we'll be able to fund additional opportunity both in purchase a big box warehouse and some new build-to-suit activity. But it is competitive. And we believe there is value in being patient and taking our times. And we are in very strong position from a balance sheet standpoint, and from a liquidity standpoint. So we're not going to rush to change that position, which is a very, very good position to be in.

Craig Allen Mailman:

Okay. I know over the years you guys didn't try to bring out your average lease term, but some of the acquisitions in the industrial space, you look at more 7 to 10. How do you guys evaluate kind of -- or how much more important is real estate now when you are looking at industrial lease that could role in 7 years versus a build-to-suit of 15 plus years from pricing perspective? And how much mix you want in there?

T. Wilson Eglin:

Very important, Craig. The shorter lease industrial -- right, all the real estate attributes are much more important. What we're trying to do from a big picture standpoint is that we didn't want to keep extending our weighted-average lease term overall in the company for longer than 9 years and hopefully 10 years. So it may seem like adding some shorter lease industrial contrary to that strategy. But the other thing that we want to do is if we look at our rollover profile and our leases that are shorter than 10 years, right now we still have about $2 of office revenue for every $1 of industrial. And we want to change the lease rollover profile of the company. So it's at least much about industrial as office. Right now, we have over 10 years of weighted-average lease term in the industrial portfolio. And we have about 7.6 years in office. So we can tolerate a little bit shorter term overall in industrial as we keep working on extending the weighted-average lease term in the portfolio active to be as long as we have elsewhere in the portfolio.

Craig Allen Mailman:

Great. I think Laura has a question.

Laura Joy Dickson (KeyBanc):

Just wanted to a follow up on the Arrow Electronics and New Cingular extensions. Was wondering if you give some detail on the mark-to-market and the term on those leases?

T. Wilson Eglin:

In the case of Arrow, rents have been coming down modestly. One factoring in the TI investment and everything else. There we're getting -- I think we've a good chance of getting 18.50 in that ramp, which we think is a very good outcome here. How much term years?

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James Dudley (Lexington Realty Trust):

For 15 years.

T. Wilson Eglin:

15 years extensions that what we expect. New Cingular, we think will of 5-year renewal with rents increasing modestly.

Operator:

The next question comes from Sheila McGrath with Evercore ISI.

Sheila Kathleen McGrath:

I was wondering if you could give us your CapEx outlook for this year in terms of TI? And how that metric looks over the next couple of years book with the increasing industrial exposure?

Patrick Carroll:

Well for the remainder -- for 2017, we think that the TIs and leasing commissions could be up to $26 million. Really just dependent upon how much releasing there is. As the portfolio has less and less rollover obviously, those numbers we would expect to come down.

Sheila Kathleen McGrath:

And then, Will, I think you highlighted much more focus on industrial, how do you think your portfolio will look in terms of single tenant long-term office leases, industrial and the shorter term leases by year-end? And then what is the long-term goal for that mix overtime?

T. Wilson Eglin:

Well, the revenue mix is shifting steadily towards of balance of office and industrial. And right now it is 52% or so office and 41% or so industrial. We want to move that to a balanced position. And we want to keep shrinking that small portfolio of retail properties and multitenant vacancy. So where we're heading to in the short-term is try to have right balance between single tenant office and single tenant industrial. Fewer and fewer retail in multitenant buildings and assets that are in transition. And we'd like to have as much office and industrial -- a balance of rollover both in the shorter lease portfolio which we define as 10 years or less, and the longer lease portfolio. We are more likely to sell -- if we an office building on a long-term lease that reaches a point where there is 10 years of lease term left, we are more likely to sell that building than to sell an industrial property. And that's another way that, that shorter lease portfolio is going to continue to change and evolve towards being more about industrial than office. So I think we'll make significant progress in the next few quarters towards those goals. And when we reach that balance at this point it's probably more likely the mix shift is even further in favor of industrial, which the preponderance of things that we're looking on the forward pipeline are in the industrial area.

Operator:

The next question comes from John Guinee of Stifel.

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John W. Guinee:

John Guinee here. Just to -- Pat, to clarify little bit the question is Sheila asked. $26 million for 2017 of releasing cost. How much of that was spent in the first quarter? And then how much of that is -- could not occur if you decide to sell the vacancy versus our fortune are up to lease up to vacancy?

Patrick Carroll:

Well, I'll answer the first part. The first quarter, we spent about $1.8 million in TIs and about $1.7 million in lease cost. As it relates to the breakdown, a large portion of that could be in properties that we potentially could sell. We don't give guidance on the break out of that, John. But the model that we've given, the $26 million that we've given assumes the money that we've spent on releasing during the year, including properties that we sell.

John W. Guinee:

Okay. And then you signed a couple of 5-year lease extensions, Will, and for Food Lines. What does the 23,000 square-foot Food Line with a 5-year lease. What kind of proceeds you get on sale for something like that? Does that sell at a 7 cap or '17 cap. I've no idea.

T. Wilson Eglin:

It doesn't sell at a 7 cap. It sells at something above that. And when we have them under contract to sell, we'd let you know what the outcome is.

John W. Guinee:

Is this double digit?

T. Wilson Eglin:

Time will tell.

John W. Guinee:

I mean its immaterial. It's only 46,000 square feet. You can whisper if you want to. And then, the last question, Aaron also pointed out that, it looks like you bought the Amazon building at a really low price per pound. But then when you add -- you capitalize the ground lease at the 6 cap and you put in the 2.3 million square feet for future tenant allowances, you get up to that $36 -- I'm sorry, $39 a foot. Is it a 7 1 GAAP yield and a 6 cash yield on the total bases including the releasing cost but excluding the ground lease?

Patrick Carroll:

The ground lease -- we deduct the ground lease expense to calculate those numbers.

John W. Guinee:

Got it. How about the TIs? Are the TIs -- is the 7 1 6 GAAP and cap -- cash yield on a $12 million basis or $14.3 million basis?

Patrick Carroll:

$14.4 million, that's the total price including the -- I think it was $2.3 million potential TIs.

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John W. Guinee:

And then just out of curiosity, is it a recent build or is this the building that's been around a while? And what does someone do with $2.3 million? Is it for the base building? Is it for FFNA?

James Dudley:

It's an existing second-generation building. So it was for the base building improvements to bring it to Amazon.

Operator:

The next question comes from Jean Nusinzon of JPMorgan?

Eugene Nusinzon:

On just deal flow economics, have you guys seen any shift in the private markets since last quarter?

T. Wilson Eglin:

None to speak of, Eugene.

Eugene Nusinzon:

And on your earlier $250 million to $300 million of dispositions plan for 2017, you think that number still doable?

T. Wilson Eglin:

Yes, for sure. It's early in the year. And if you count the loan, obviously, we are going close to $188 million. The loan sales weren't included in our $250 million to $300 million of property dispositions. But we're going to stay active through the balance of the year.

Eugene Nusinzon:

Got it. So you're saying that loan sales will now fall into that $250 million to $300 million guide?

T. Wilson Eglin:

No, over and above, Eugene. If you count the loan sales in there, you should be thinking in the context of $250 million plus the loan sales as the bottom range.

Eugene Nusinzon:

Got it. And what's the liquidity like for just vacant office buildings now?

T. Wilson Eglin:

To be honest, we're finding it better to be a seller right now for some of that stuff compared to a year ago. It's varies greatly by market and property type. But I'm optimistic that we can make some good sales of vacancy this year as opposed to holding the assets for leasing and incurring all the capital cost.

Eugene Nusinzon:

And other, I guess, the buyers that redeveloping these properties? Is it just land value? Is it mostly just private equity at some other side?

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T. Wilson Eglin:

It's a mix. I would say most of it's being bought for redevelopment. But we're also seeing more user interest for both industrial and office. And where we can make that sale to deploy the values probably double compared to selling into an investor wire.

Eugene Nusinzon:

Got it. And then final question, just housekeeping. What was the GAAP lease termination income in the quarter?

Patrick Carroll:

Hold on. Hold on 1 second. Let me look that up. Are you can put the GAAP number or the cash number or both?

Eugene Nusinzon:

The GAAP number.

Patrick Carroll:

The GAAP number for the quarter was $1,928,000.

Operator:

The next question comes from Bill Segal of Development Association.

William Segal:

I was just curious, have you seen the need for absorption of office space begin to diminish at a quicker rate across all segments? And geographic regions in you might have even thought just a couple of years ago?

T. Wilson Eglin:

I wouldn't say -- and I don't think so. Do you have any answer to that, Dick?

Dick Rouse (Lexington):

No, I think many markets are continuing to grow.

William Segal:

Those are need for office basis is continuing to grow in many of the markets that you're in?

T. Wilson Eglin:

Yes.

Operator:

The next question is a follow up from Sheila McGrath of Evercore.

Sheila Kathleen McGrath:

Will, it seems like a lot of your competitors are also are peers. In that lease also focused in on industrial. I was wondering if you could talk to us about the competitive environment on acquiring industrial. Is it heated up a little more in recent quarters?

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T. Wilson Eglin:

It's been pretty steady for a while, Sheila. I suppose the good news is there is -- just from a new transactions point, there's a lot going on in the e-commerce area. So there's a lot of transaction activity that we're seeing. We want win all the business we look at, but we'll win enough of it. It is competitive and it's a highly desirable asset type compared to single tenant retail or single tenant office. So it is competitive, but we have excellent relationships in the build-to-suit with merchant builders that we've done a lot of business with a over the years. And we think that gives us a competitive advantage -- in many cases the last local transactions. So we'll get our fair share.

Sheila Kathleen McGrath:

Should we think that bulk of the industrial volume will still be in forward build-to-suit market rather than just buying existing billings?

T. Wilson Eglin:

No. I think it's shifted more towards a balance between the 2. And the truth is, for good bulk distribution and warehouse, if you want to try to originate that and build-to-suit and insist on 15 and 20 year lease, we wouldn't have been able to buy any of it right now. So that market has shifted. And our acquisition postures have shifted with that as well.

Operator:

The next question comes from Jon Petersen of Jefferies.

Jonathan Michael Petersen:

Just one question for me. So the weighted average remain from portfolio, it's 8.8 years. It's up a little from last quarter. It's down from a year ago, which I know it's from the land sales. Do you guys have number pro forma if you were to take the land out what your weighted average remaining lease term was about a year ago. Just trying to figure out how much is changed with all the noncore dispositions we've done?

Patrick Carroll:

Yes. I don't have that in front of me. We can get it to you. I just don't know. We based upon a 20-year life to the first purchase option. But I couldn't tell you right now. If that was some ahead or property form -- on pro forma basis as we did on that point in time.

Operator:

The next question comes from Joshua Dennerlein with Bank of America Merryl Linch.

Joshua Dennerlein :

When you guys are competing for acquisitions are build-to-suit and the industrial space. Who are your competitors? You're coming again – up against Stag, GPT, WP Carey. I'm just kind of curious.

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T. Wilson Eglin:

It varies. And we don't competed with Stag very much. I think we've always run into WP Carey for sure. We run into the REIT and we run into GPT in the public space. I think those at all active participants in our market.

Joshua Dennerlein :

Okay, thank you.

Operator:

And this concludes our question-and-answer session. I would now like to turn the conference back over to Will Eglin for any closing remarks.

Patrick Carroll:

This is Pat. Just a follow up on the question about what the pro form life would be if we didn't have the ground lease investment last year was 8.5 years. So that answers that question.

T. Wilson Eglin:

Excellent. Well, it doesn't look like that there are anymore questions. But thanks again for joining us this morning. If you have any questions, please don't hesitate to reach out to me or any member of our senior management team. Thanks again.

Operator

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Have a great day.

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