Equity

Shareholders' Equity. During the three months ended March 31, 2015 and 2014, the Company issued 627,247 and 564,501 common shares, respectively, under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $6,685 and $5,416, respectively.

During the three months ended March 31, 2015, the Company granted to certain executive officers performance-based shares, which vest based on the Company’s total shareholder return growth after a three-year measurement period relative to an index (321,018 shares) and its peers (321,011 shares). Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, the shares vest immediately. The fair value of the grants was determined at the grant date using a multifactor Monte Carlo simulation model for a fair value price of $6.66 per share for 321,011 shares and $6.86 per share for 321,018 shares. In addition, during the three months ended March 31, 2015, the Company granted 170,650 common shares to certain employees with a grant date fair value of $1,916. The common shares vest ratably over a three-year service period. Compensation expense is recognized over the requisite service period for all grants. During each of the three months ended March 31, 2015 and 2014, the Company issued 14,000 fully vested common shares to the non-management members of the Company's Board of Trustees with a grant date fair value of $157 and $142, respectively.

Accumulated other comprehensive income (loss) as of March 31, 2015 and December 31, 2014 represented $(3,692) and $404, 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, 2014	$	404
Other comprehensive loss before reclassifications	(5,468		)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	1,372
Balance March 31, 2015	$	(3,692	)

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 three months ended March 31, 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 three months ended March 31, 2014, 2,605 common shares were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $13.

As of March 31, 2015, there were approximately 3,422,000 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 (Loss) Attributable to Shareholders and Transfers from Noncontrolling Interests
	Three Months ended March 31,
	2015		2014
Net income attributable to Lexington Realty Trust shareholders	$	33,505	$	886
Transfers from noncontrolling interests:
Decrease in additional paid-in-capital for redemption of noncontrolling OP units	—		(993		)
Change from net income (loss) attributable to shareholders and transfers from noncontrolling interests	$	33,505	$	(107	)