Equity

Shareholders' Equity. During the six months ended June 30, 2014 and 2013, the Company issued 1,168,673 and 690,873 common shares, respectively, under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $11,522 and $7,466, respectively.

During the six months ended June 30, 2013, the Company implemented an At-The-Market offering program under which the Company may issue up to $100,000 in common shares over the term of this program. The Company issued 3,409,927 common shares under this program during the six months ended June 30, 2013 and generated aggregate gross proceeds of $36,884. In addition, in March 2013, the Company issued 23,000,000 common shares in a public offering raising gross proceeds of $258,336. The net proceeds from these offerings of $293,855 were used to repay borrowings under the Company's unsecured revolving credit facility and the balance for general corporate purposes, including acquisitions.

The Company issued 1,325,000 non-vested common shares to certain officers with a grant date fair value of $14,098 during the six months ended June 30, 2013. The non-vested common shares are subject to long-term retention non-vested share agreements and vest from 2018 to 2022 in accordance with the agreements. In addition, during the six months ended June 30, 2014 and 2013, the Company issued 14,000 and 37,500, respectively, fully vested common shares to the non-management members of the Company's Board of Trustees with a grant date fair value of $142 and $399, respectively.

During the six months ended June 30, 2013, the Company repurchased and retired the following shares of its preferred stock:



7.55% Series D Cumulative Preferred Stock
Shares redeemed and retired	6,200,000
Redemption cost⁽¹⁾	$	155,621
Deemed dividend⁽²⁾	$	5,230


(1)	Includes accrued and unpaid dividends.


(2)	Represents the difference between the redemption cost and historical GAAP cost. Accordingly, net income was adjusted for the deemed dividend to arrive at net loss attributable to common shareholders.

Accumulated other comprehensive income (loss) as of June 30, 2014 and December 31, 2013 represented $(66) and $4,439, respectively, of unrealized gain (loss) on interest rate swaps, net.

Changes in Accumulated Other Comprehensive Income (Loss)



	Gains and Losses on Cash Flow Hedges
Balance December 31, 2013	$	4,439
Other comprehensive loss before reclassifications	(7,186		)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	2,681
Balance June 30, 2014	$	(66	)

Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments.

During the six months ended June 30, 2014, in connection with the merger of LCIF II with and into LCIF, former LCIF II partners representing 170,193 OP units elected or were deemed to elect to receive $1,962 in aggregate cash for such OP units. In addition, during the six months ended June 30, 2014 and 2013, 9,322 and 164,596 common shares, respectively, were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $46 and $861, respectively.

As of June 30, 2014, there were approximately 3,439,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with their respective partnership agreements. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the applicable partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference.

The following discloses the effects of changes in the Company's ownership interests in its noncontrolling interests:



	Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests
	Six Months ended June 30,
	2014			2013
Net income attributable to Lexington Realty Trust shareholders	$	15,336		$	4,112
Transfers from noncontrolling interests:
Increase (decrease) in additional paid-in-capital for redemption of noncontrolling OP units	(959		)	861
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	14,377		$	4,973